Unitil Corporation · NYSE:UTL
Unitil — American Gas Association Financial Forum 2016
16 slides from Unitil's conference presentation, May 13, 2016
Slide 1: American Gas Association Financial Forum – May 2016
American Gas Association Financial Forum – May 2016 Robert G. Schoenberger Chairman, Chief Executive Officer and President Exhibit 99.1
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: Our mission is to provide energy for life
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
Slide 4: Unitil
Unitil Natural gas and electric utility operations in Maine, New Hampshire and Massachusetts Serving approximately 182,000 gas and electric customers Saco, ME
Slide 5: More than half a billion dollars of new construction in our service areas
We estimate there is more than half a billion dollars of new construction in our service areas Unemployment is well below the national average in the states we serve U.S. MA NH ME 5.0% 4.4% 2.6% 3.4% Portland, Maine Best Places to Live 2014 (Money Magazine) Largest US city north of Boston $400 milli
Slide 6: Accomplishments: Net Income and Earnings Per Share
Accomplishments Net Income Earnings Per Share Operations performance 48% reduction in outages since Utility rate base growth 7% compound annual growth rate Constructive regulation Rate relief has provided ~55% increase to sales margin since ($ in millions) $18.1 $21.6 $24.7 $26.3 $1.43 $1.57 $1.79 $
Slide 7: Market Outperformance: 5-Year Total Return
Market Outperformance 5-Year Total Return UTL 100% S&P 500 81% S&P Utilities 69% UTL outperformed 31% -20% 0% 20% 40% 60% 80% 100% 120% UTL S&P Utilities S&P 500
Slide 8: Dividend Increases
Dividend Increases Dividends Per Share Unitil has continuously paid quarterly dividends and has never reduced its dividend rate
Slide 9: Robust Capital Spending
Robust Capital Spending Capital Spending Capital spending annual growth rate of 15% since 2012 Total capital budget of $98 million in 2016 ($ in millions)
Slide 10: Rate Base Growth
Rate Base Growth Gas Rate Base & Income Gas & Electric Rate Base $4 $15 Rate base growth driven by gas distribution expansion, infrastructure replacement, and electric reliability investments ($ in millions) ($ in millions) 7% CAGR ~4x Growth $484 $521 $553 $586 $0 $150 $300 $450 $600 $750 $179 $357
Slide 11: Gas Growth
Gas Growth Historical Weather Normalized Sales* Average Customer Count 2-3% CAGR Penetration rate less than 60% - room for growth 4-6% CAGR (therms, in millions) * Excludes decoupled sales 72,200 74,100 76,100 77,500
Slide 12: New Gas Service Areas
New Gas Service Areas Target Areas Targeted Area Buildout Saco, ME pilot Potential new market of 1,000 customers; $1mm annual revenue Evaluating new opportunities in other cities and towns System expansion projects Extending existing mains into adjacent areas attractive for years of growth
Slide 13: Gas Infrastructure Replacement
New Hampshire Maine Massachusetts Gas Infrastructure Replacement ~6 miles annually in 2016 and ~50 miles scheduled 2016 - ~3 miles scheduled annually Project completion expected end of Project completion expected end of 20 year project Currently 81% of gas infrastructure system has been replaced wit
Slide 14: Electric Growth Investment
Electric Growth Investment Grid Modernization Substation Projects Construction of two major electric substations to provide increased capacity and enhanced reliability Grid modernization – regulatory initiatives supporting new investment in distribution system
Slide 15: Constructive Regulation
Constructive Regulation Return on Equity Achieved ~$65 million (~55% increase to sales margin) in rate relief since 2010 Fitchburg Gas & Electric (Massachusetts) awarded $3.7 million in rate relief effective May 1, 2016 Unitil Energy (New Hampshire) filed $6.3 million rate case in April 2016 8.0% 8.
Slide 16: Key Investment Highlights
Key Investment Highlights Regulated local distribution utility business model Diversified natural gas and electric sales Growing operations and customer base – Regulated rate base growth – Robust natural gas system expansion – Constructive rate plans and capital recovery mechanisms Dividend strength
Unitil — American Gas Association Financial Forum 2016 on 6ix