Slide 1: Q4 2024 Financial Results and Strategic Update
Q4 2024 Financial Results and Strategic Update February 11, 2024
Slide 2: Forward-Looking Statements and Use of Non-GAAP Measures
Forward-Looking Statements and Use of Non-GAAP Measures This presentation contains “forward-looking statements” including within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included in th
Slide 3: Financial Results and Strategic Update
Financial Results and Strategic Update Strong financial results and continued focus on strategic initiatives Financial Highlights • 2024 Net Income of $47.1 million or $2.93 per share – Increase of $1.9 million or $0.11 per share relative to 2023 • 2024 Adjusted Net Income(1) of $47.8 million or $2.
Slide 4: Bangor Natural Gas Transaction
Bangor Natural Gas Transaction Purchase completed on January 31, 2025 Transaction Overview • Purchase price of $70.9 million plus approximately $0.3 million for estimated working capital • Transition services for core functions will be provided at cost by predecessor • Transaction funded with short-
Slide 5: Exceptional Customer Service
Exceptional Customer Service Customer satisfaction remains well above regional and national peers(1) 2 ND Having Friendly 90 % OVERALL CUSTOMER SATISFACTION 1 OUT OF 118 UTILITIES Employees 4 TH Having Knowledgeable and Well-trained ST OUT OF 8 NORTHEAST UTILITIES 1 OUT OF 121 UTILITIES Employees 5
Slide 6: Continued Operational Excellence
Continued Operational Excellence Key operational metrics remain strong Top Tier Electric Service Reliability Continued Gas Safety Excellence • 5th lowest service interruption time in the past 20 years in 2024 • Gas odor response time is approximately 25% faster than the median • SAIDI results better
Slide 7: Advanced Metering Infrastructure
Advanced Metering Infrastructure Significant multi-year project to support the clean energy transition Smart Meters Customer Environmental Improved Reliability Enhanced Billing Real-time data Empowerment Sustainability Faster outage detection Streamline supporting better Online portal & Grid optimiz
Slide 8: Fiscal Year 2024 Financial Results
Fiscal Year 2024 Financial Results Net Income and Earnings Per Share Twelve Months Ended Earnings Summary(1) December 31 2024 2023 Net Income ($ Millions) $47.1 $45.2 Adjusted Net Income ($ Millions) $47.8 $45.2 Earnings Per Share $2.93 $2.82 Adjusted Earnings Per Share $2.97 $2.82 (1) Adjusted Net
Slide 9: Volume and Adjusted Gross Margin Variances
Volume and Adjusted Gross Margin Variances Annual variances in units, customers, and adjusted gross margin Electric Operations Unit Sales and Customers • 100% of electric customers decoupled(2) Weather Normalized Unit • Weather normalized C&I sales increased 0.8% Adjusted Gross Margin(1) Customers S
Slide 10: Fiscal Year Earnings Reconciliation
Fiscal Year Earnings Reconciliation Variances to prior period Net Income • Adjusted Gross Margin(1) increased $15.6 million as a result of higher rates and customer growth. • Operation and Maintenance Expenses increased $2.0 million due to higher labor costs of $2.5 million partially offset by lower
Slide 11: Earnings Outlook
Earnings Outlook Reaffirming long-term guidance and providing 2025 guidance Consolidated Earnings Guidance(1) Forward Expectations • Reaffirm long-term earnings guidance of 5% to 7% 2025 Earnings Guidance Range of $3.01 to $3.17 Mid-Point of $3.09 • Consolidated earnings guidance in 2025 of $3.01 to
Slide 12: Capital Investment Opportunities
Capital Investment Opportunities Significant investment opportunities supporting the energy transition Actual and Forecast Capital Investment(1) Five-year projected capital investment of ~$980 million, 46% higher than prior five years $250 $200 $150 $221 $100 $190 $196 $198 $170 $176 $141 $50 $0 202
Slide 13: Regulatory Agenda Remains Active
Regulatory Agenda Remains Active Intend to file distribution rate case at UES (NH electric subsidiary) UES Case Overview • Anticipate filing base distribution rate case in Q2 2025 • GAAP ROE in 2024 of 8.0% is 120 basis points lower than the authorized ROE • Filing will propose multi-year rate plan
Slide 14: Balance Sheet Strength and Financing Plan
Balance Sheet Strength and Financing Plan Strategic financing plan continues to support balance sheet strength Responsible Financing Plan • Maintaining a strong balance sheet remains a top objective Long-Term Financing Sources • Capital investments funded principally by Cash Flow From Operations les
Slide 15: Dividend Increase and Expected Payout
Dividend Increase and Expected Payout Significant dividend increases over the past five years Historical Dividend and Payout Ratio(1)(2)(3) $2.00 100% $1.90 90% $1.80 $1.80 80% $1.70 $1.70 70% $1.56 $1.62 $1.60 86,600 $1.50 $1.52 60% $1.50 $1.48Customers $1.46Natural Gas 50% $1.42 $1.44 $1.38 $1.40
Slide 16: Key Elements of Unitil's Value Proposition
Key Elements of Unitil’s Value Proposition Delivering consistent results through a reliable, regulated strategy 8%-10% Expected Annual Total Shareholder Return (1) 5%-7% 6.5%-8.5% $980 million 55%-65% 17%-19% Cost Net Zero Expected Annual EPS Growth Expected Annual Utility Rate Base Growth Planned E
Slide 17: Appendix
Appendix Slide 18 About Unitil 19 GAAP ROE 20 Rate Relief Summary 21 Investment Grade Credit Ratings 22 Fitchburg - Rate Case Award 86,600 Natural Gas Customers 23 Fitchburg - Performance Based Rates 24 GSGT - Rate Case Settlement 25 Dividend History 26 Key Regulatory Recovery Mechanisms 27-28 GAAP
Slide 18: About Unitil
About Unitil Pure play New England utility creating long-term sustainable value Local distributor of electricity and natural gas in attractive service areas along the New Hampshire and Maine Seacoast • Fully regulated electric and gas operations • Growing customer base supported by strong regional e
Slide 19: GAAP Return on Average Common Equity
GAAP Return on Average Common Equity GAAP Return on Equity over the last twelve months Company Rate Base(1) Average Common Equity LTM ROACE (2) Northern Utilities $560 $268 8.8% Unitil Energy Systems $283 $133 8.0% Fitchburg Gas and Electric $243 86,600 $131 8.9% Natural Gas Customers Granite State
Slide 20: Rate Relief Summary
Rate Relief Summary Successful regulatory strategy resulting in awards from both capital trackers and rate cases Company Activity Millions Date Effective Base Rate Case Increase $7.6 Q4 2023 Northern Utilities (Maine) Capital Tracker $2.4 Q2 2024 Grid Modernization $1.3 Q2 2024 Grid Modernization(1)
Slide 21: Investment Grade Credit Ratings
Investment Grade Credit Ratings Stable ratings across all subsidiaries from both S&P and Moody’s Issuer Rating S&P Moody’s Unitil Energy Systems Inc.(1) Stable / BBB+ Stable / Baa1 Northern Utilities Inc. Stable / BBB+ Stable / Baa1 86,600 Fitchburg Gas and Electric Light Co.Natural Gas Customers St
Slide 22: Order Received for Fitchburg Rate Cases
Order Received for Fitchburg Rate Cases Constructive outcomes in electric and natural gas cases Electric Order Highlights Gas Order Highlights • Rates effective July 1, 2024 • Rates effective July 1, 2024 • 9.4% Authorized Equity on Equity Ratio of 52.26% • 9.4% Authorized Equity on Equity Ratio of
Slide 23: FGE Performance Based Rates Overview
FGE Performance Based Rates Overview Capital trackers and Performance Based Rates should support opportunity to earn authorized ROE Performance Based Rates (PBR) Structure K-Bar Adjustment (Electric only) • Five-year PBR plan allows for timely cost recovery • The ‘K-Bar’ adjustment is included as pa
Slide 24: Granite State Gas Transmission Settlement
Granite State Gas Transmission Settlement GSGT rate case should provide opportunity to earn a fair return over the term of the settlement Granite Rate Case Highlights GSGT Return on Equity(1) • Approved by FERC with rates effective November 1, 14.0% 2024 12.0% • Annual revenue increase of $3.0 milli
Slide 25: Continuous Dividend Payment Since Incorporation
Continuous Dividend Payment Since Incorporation Steadily increasing dividend per share since 2015 Reliable Dividend is Key Tenet to Value Proposition $2.00 $1.80 $1.60 $1.40 $1.20 86,600 Natural Gas Customers $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 SLIDE 25
Slide 26: Key Regulatory Recovery Mechanisms
Key Regulatory Recovery Mechanisms Timely Rate Recovery Unitil Energy Fitchburg - Electric Fitchburg - Gas Northern - ME Northern - NH Revenue Decoupling Power/Gas Supply Supply Related Bad Debt Energy Efficiency Transmission Net Metering Credits 86,600 Sp
Slide 27: GAAP Reconciliation of Adjusted Gross Margin
GAAP Reconciliation of Adjusted Gross Margin Twelve Months Ended December 31, 2024 86,600 Natural Gas Customers SLIDE 27
Slide 28: GAAP Reconciliation of Adjusted Earnings
GAAP Reconciliation of Adjusted Earnings Twelve Months Ended December 31, 2024 86,600 Natural Gas Customers SLIDE 28