Slide 1: Financial and Strategic Update
Financial and Strategic Update November 7, 2023
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: 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 • Growing customer base supported by strong regional economic growth • Continuing price advantage ov
Slide 4: Financial Results and Strategic Update
Financial Results and Strategic Update Strong financial results and continued execution of strategic plan Achieving Strong Financial Results • Quarterly Net Income of $1.4 million or $0.09 per share • Year-to-Date Net Income of $29.7 million or $1.85 per share • $0.17 per share increase compared to
Slide 5: Corporate Sustainability and Responsibility Report
Corporate Sustainability and Responsibility Report Unitil recently released its 2023 report with all key metrics on target Highlights 14% 65% Current Fleet Scope 1 reduction compared to 2019 baseline Employees hired in 2022 identify as female or an underrepresented group 20% Current percentage of fl
Slide 6: Third Quarter 2023 Financial Results
Third Quarter 2023 Financial Results Net Income and Earnings Per Share Third quarter 2023 Net Income of $1.4 million, or $0.09 per share • Net Income increase of $0.9 million, or $0.06 per share, relative to the third quarter of 2022 • Earnings growth reflects higher adjusted gross margins offset by
Slide 7: Volume and Adjusted Gross Margin Variances
Volume and Adjusted Gross Margin Variances Year-to-Date variances in units, customers, and adjusted gross margin Electric Unit Sales & Customers • Electric distribution revenue substantially decoupled (2) • C&I sales down (3.7%), Residential sales down (6.8%) Adjusted Gross Margin(1) Weather Normal
Slide 8: Year-to-Date Earnings Reconciliation
Year-to-Date Earnings Reconciliation Variances to prior period earnings • Adjusted Gross Margin(1) increased $9.3 million as a result of higher rates and customer growth, partially offset by warmer winter weather in 2023 and by the recognition, in the second quarter of 2022, of $2.4 million in highe
Slide 9: Maine Rate Case Overview
Maine Rate Case Overview Successful settlement based upon forecasted test year beneficial to all stakeholders Rate Case Proposal Details Settlement Details Docket Number 2023-00051 • $7.6M increase approved on September 20, 2023 with rates Test Year February 2024 – January 2025 effective October 1,
Slide 10: FG&E Rate Case Overview (Electric and Gas)
FG&E Rate Case Overview (Electric and Gas) FG&E Rate Case Activity Rate Case Filing Details Additional Information Docket Number 23-80 (electric) & 23-81 (gas) • Both divisions filed in August 2023 with multi-year rate plans Test Year 2022 Historic Test Year • Proposed Performance Based Ratemaking P
Slide 11: Disciplined Investment Plan
Disciplined Investment Plan Anticipate Long-Term Rate Base Growth of 6.5% to 8.5% Capital Investment Breakout(1) Historic Rate Base as of September 30 Gas Infrastructure Replacement 9% $1,000 • Timely Capital Recovery – Significant investment covered by $900 trackers $800 Millions Electric Operation
Slide 12: Balance Sheet Strength and Capitalization
Balance Sheet Strength and Capitalization Maintaining investment grade ratings Responsible Financing Plan Long-Term Financing Sources • Balanced capital structure of approximately 50% debt and 50% equity • Closed $25 million Senior Unsecured Notes at Fitchburg in July – $12M – 10 Year – 5.70% – $13M
Slide 13: Delivering on Financial and Strategic Goals
Delivering on Financial and Strategic Goals The energy transition offers robust long-term investment opportunities Transforming Customer Modernizing Electric and Accelerating the Clean Services and Energy Offerings Natural Gas Infrastructure Energy Transition • Connecting customers with value • Inve
Slide 14: Appendix
Appendix Slide 15 GAAP ROE 16 Rate Relief Summary 17 Long-Term Earnings Growth 18 Dividend Increase and Expected Payout 86,600 Natural Gas Customers 19 Dividend History 20 Strong Financial Position 21 Service Area Advantages 22 Key Regulatory Recovery Mechanisms 23-24 GAAP Reconciliation of Adjusted
Slide 15: GAAP Return on Average Common Equity
GAAP Return on Average Common Equity GAAP Return on Equity over the last twelve months Company Average Common Equity LTM ROACE (1) Northern Utilities $248 8.2% Unitil Energy Systems $122 10.1% Fitchburg Gas and Electric 86,600$115 9.6% Natural Gas Customers Granite State Gas $21 7.8% Unitil Corporat
Slide 16: Rate Relief Summary
Rate Relief Summary Successful regulatory strategy resulting in awards from both capital trackers and rate cases Company Activity Millions Date Effective Northern Utilities (New Hampshire) Base Rate Case Increase $6.1 Q3 2022 Capital Tracker $2.1 Q2 2023 Northern Utilities (Maine) Base Rate Case Inc
Slide 17: Maintaining Long-Term Earnings Growth
Maintaining Long-Term Earnings Growth Long-term growth expectation remaining in the range of 5% to 7% $3.80 2023 Guidance Aligned With Long-Term Target $3.60 Managing earnings variability 7% Growth $3.40 • Decoupled margin provides stability and visibility − Over 80% of customers under decoupled rat
Slide 18: Dividend Increase and Expected Payout
Dividend Increase and Expected Payout Consecutive years of accelerated dividend rate increases Dividend Per Share and Payout Ratio $1.65 100% $1.62 Balancing dividend sustainability $1.60 $1.56 80% with capital investment $1.55 $1.52 opportunities $1.48 $1.50 60% $1.50 $1.46 $1.44 Long-term dividend
Slide 19: Consistent Dividend Payment Since Incorporation
Consistent Dividend Payment Since Incorporation Steadily increasing dividend per share since 2015 Reliable Dividend is Key Tenet to Value Proposition $1.80 $1.60 $1.40 $1.20 $1.00 86,600 Natural Gas Customers $0.80 $0.60 $0.40 $0.20 $0.00 SLIDE 19
Slide 20: Strong Financial Position
Strong Financial Position Maintaining investment-grade credit ratings Strong Credit Metrics Credit Ratings – Moody’s (June 30, 2023) S&P (June 30, 2023) S&P Update CFO-WC/Total Debt (1) Northern Utilities Peer Peer BBB+ Unitil Group Group 11/20/21 08/05/22 Unitil Energy Systems Baa1 Avg. Median Fitc
Slide 21: Service Area Economies Remain Strong
Service Area Economies Remain Strong Customer growth should be supported by strong economies and ongoing development New Housing Permits meeting demand as inventory is depleted(1) Serving robust and sought-after service areas 24,000 12,000 20,000 11,000 Total Permits Total Listings Job opportunities
Slide 22: Key Regulatory Recovery Mechanisms
Key Regulatory Recovery Mechanisms Timely Rate Recovery Unitil Energy Fitchburg - Electric Fitchburg - Gas Northern - ME Northern - NH Revenue Decoupling Power/Gas Supply Supply Related Bad Debt Energy Efficiency Transmission Net Metering Credits (1) 86,600
Slide 23: GAAP Reconciliation of Adjusted Gross Margin
GAAP Reconciliation of Adjusted Gross Margin Three Months Ended September 30, 2023 Three Months Ended September 30, 2023 ($ millions) Electric Gas Other Total Total Operating Revenue $ 72.1 $ 31.8 $ --- $ 103.9 Less: Cost of Sales (42.9) (9.6) --- (52.5) Less: Depreciation and Amortization (6.6) (9.
Slide 24: GAAP Reconciliation of Adjusted Gross Margin
GAAP Reconciliation of Adjusted Gross Margin Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2023 ($ millions) Electric Gas Other Total Total Operating Revenue $ 244.8 $ 182.7 $ --- $ 427.5 Less: Cost of Sales (164.7) (76.3) --- (241.0) Less: Depreciation and Amortization (19.5)