Q2 2024 Unitil Corp Earnings Call Transcript
Key Points
- Unitil Corp (UTL) reported a second-quarter net income increase to $4.3 million or $0.27 per share, up by $0.02 per share from the same period in 2023.
- The company reaffirmed its long-term earnings growth target of 5% to 7%, supported by rate base growth of 6.5% to 8.5% and a dividend payout ratio between 55% and 65%.
- Unitil Corp (UTL) announced a strategic acquisition of Bangor Natural Gas Company, which aligns with its strategic objectives and is expected to close by the end of the first quarter of 2025.
- The company's capital investment plan through 2028 totals approximately $910 million, with opportunities for additional investments, particularly in electric system modernization and grid resilience.
- Recent regulatory outcomes, including the approval of performance-based rate plans, are seen as constructive and support the company's growth and operational efficiency.
- Operating expenses increased, partially offsetting the higher adjusted electric and gas margins.
- Depreciation and amortization expenses rose by $2.8 million due to higher levels of utility plant in service and storm cost amortization.
- Interest expenses increased by $0.6 million, reflecting higher interest on short-term borrowings and long-term debt.
- The acquisition of Bangor Natural Gas Company, while strategic, is subject to regulatory approval and could face delays or additional costs.
- The company's earnings growth is partially dependent on regulatory approvals and maintaining favorable rate structures, which can be uncertain.
Good day and thank you for standing by. Welcome to the second quarter 2024 Unitil Earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker, Christopher Goulding, Vice President of Finance and Regulatory Services. Please go ahead.
Good afternoon and thank you for joining us to discuss Unitil Corporation's second quarter 2024 financial results. Speaking on the call today will be Tom Meissner, Chairnan and Chief Executive Officer; and Dan Hurstak, Senior Vice President, Chief Financial Officer and Treasurer. Also with us today are Bob Hevert, President and Chief Administrative Officer; and Todd Diggins, Chief Accounting Officer and Controller.
We will discuss financial and other information on this call. As we mentioned in the press release announcing today's call, we have posted information, including a presentation to the Investors section of our website at
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