Unitil (UTL) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $4.3 million ($0.27 per share), up $0.1 million ($0.02 per share) year-over-year; first half net income reached $31.5 million ($1.96 per share), up $3.2 million ($0.20 per share) from 2023, driven by higher rates and customer growth.

• Announced acquisition of Bangor Natural Gas Company for $70.9 million, expected to close by Q1 2025, pending regulatory approval.

• Continued customer growth and successful rate cases in Massachusetts supported results.

• Results were in line with expectations, and full-year earnings are expected within long-term guidance.

Financial highlights

• Electric adjusted gross margin for the first half was $52 million (up 2.2%), and gas adjusted gross margin was $92.3 million (up 9.6%), both driven by higher rates and customer growth.

• Q2 2024 total operating revenue was $95.7 million, down 7.4% year-over-year; six-month revenue was $274.4 million, down 15.2% year-over-year.

• Operation and maintenance expenses rose $0.3–$0.4 million (1.1%–1.6%), below inflation.

• Depreciation and amortization increased $1.5–$2.8 million, reflecting higher plant service and storm cost amortization.

• Interest expense increased $0.4–$0.6 million due to higher borrowings.

Outlook and guidance

• Long-term EPS growth target reaffirmed at 5%-7%, with rate base growth of 6.5%-8.5%.

• Dividend payout ratio expected between 55% and 65%, with annualized dividend at $1.70 per share.

• Full-year 2024 earnings expected to be within guidance range.

• Recent regulatory approvals support continued rate base growth, including new base rates and performance-based ratemaking in Massachusetts.