Unitil Corporation · NYSE:UTL
Unitil — American Gas Association Financial Forum 2018
16 slides from Unitil's conference presentation, May 18, 2018
Slide 1: American Gas Association Financial Forum – May 2018
Exhibit 99.1 American Gas Association Financial Forum – May 2018 Thomas P. Meissner, Jr. Chairman, Chief Executive Officer and President
Slide 2: Safe Harbor Provision
Safe Harbor Provision This presentation contains “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding Unitil Corporation’s (“Unitil”) financial condition, result
Slide 3: About Unitil
About Unitil Our mission is to provide energy for life—safely, reliably, cost-effectively and responsibly—to a growing number of customers with a high-performing workforce • Unitil Corporation is a public utility holding company engaged in the local distribution of natural gas and electricity to res
Slide 4: Service Area Highlights
Service Area Highlights Portland & Southern Maine Portland is the largest city north of Boston Greater Portland is responsible for more than half of the total gross state product Best Places to Live (Money Magazine)Portsmouth and Seacoast NH NH’s fastest growing area and is a cultural hub located ev
Slide 5: Recent Highlights
Recent Highlights Generating record sales margin, earnings and customers served 9% annual growth in Net Income since 2014 Continue to focus on superior operational performance to ensure the safe and reliable delivery of natural gas and electricity Exceeding all service quality metrics for safety, re
Slide 6: Market Performance
Market Performance Unitil has outperformed both the broader market and utility peers over the past five years Comparative 5-Year Total Returns 120% 100% 80% 5-Year Total Return Unitil – 99% 60% S&P 500 Utilities – 55% 40% S&P 500 – 87% 20% 0% Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Unitil S&P 500
Slide 7: Increasing Dividends and Retention
Increasing Dividends and Retention Since incorporation in 1984, Unitil has continuously paid quarterly dividends On January 30, 2018, Unitil announced a $0.02 annual increase in the dividend for the fourth consecutive year to a 2018 annualized dividend level of $1.46 per share Payout ratio has decli
Slide 8: Exceeding Customer Expectations
Exceeding Customer Expectations • 90% of Unitil customers report being satisfied Customer Satisfaction with their service 90% 88% • Ranked #1 in New England for reliable service, being responsive to customer needs, 84% 83% and being a company customers can trust 81% • Successfully implemented state
Slide 9: Operational Excellence
Operational Excellence • Best in class gas emergency response and safety Modernization Progress - programs Unitil Gas System vs. New England Peers(1) • 2017 Northeast Gas Association Excellence in Health & Safety Award 91% 74% • Gas emergency response time of >99% to natural gas odor calls, exceedin
Slide 10: Strong Growth
Strong Growth • Gas growth investments including on-the-main Weather-Normalized Therm Sales(1) growth opportunities, system expansion projects, Targeted Area Buildout (TAB) program and 12% Increase infrastructure replacement • 60% on the main penetration providing thousands of potential low cost cus
Slide 11: Natural Gas Advantage
Natural Gas Advantage • On a retail-delivered basis, natural gas is approximately 30% less expensive than retail fuel oil • Recently, natural gas prices have been low and relatively stable while oil prices have experienced volatility and price increases • Long-term growth potential • High heating oi
Slide 12: Robust Economic Development
Robust Economic Development 12
Slide 13: Investment and Rate Base Growth
Investment and Rate Base Growth • Total capital budget of $104 million in 2018 • About 45% recoverable under capital trackers • Additional ~30% will be spent on growth projects that add new customers, revenue and expand system for future growth • Expect to maintain future rate base growth • Robust s
Slide 14: Constructive Regulation
Constructive Regulation • Consistently achieving equity returns in line with authorized returns of 9.5%-9.8% • Constructive regulatory environment supporting investment and growth • Significant regulatory activities including completion of two base rate cases in 2018 in addition to long-term rate pl
Slide 15: Financial Strength
Financial Strength • Investment grade rating • Standard & Poor’s issuer rating of BBB+ across Unitil Corporation and its subsidiaries • Moody’s issuer rating of Baa2 (Unitil Corporation and Granite State) and Baa1 (Unitil Energy, Fitchburg, and Northern Utilities) • Balanced capital structure • Appr
Slide 16: Key Investment Highlights
Key Investment Highlights • Regulated local distribution utility business model • Growing service areas and customer base • Diversified natural gas and electric operations • Dividend strength • Experienced management team 16
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