Unitil Corporation · NYSE:UTL
Unitil — Shareholder Meeting (April 2010)
20 slides from Unitil's shareholder meeting presentation, Apr 15, 2010
Slide 1: Annual Meeting of Shareholders
Annual Annual Meeting Meeting April 15, 2010 April 15, 2010 of Shareholders of Shareholders Exhibit 99.1
Slide 2: Forward-looking statements
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 financial condition, results of operations, capital expendit
Slide 3: Realizing the Earnings Power of Our Assets
Realizing the Earnings Power of Our Assets Near-Term Value Creation
Slide 4: Strategy Overview
Mergers and acquisitions Gas distribution expansion Usource Regulatory Customer Growth Key Strategies Communication Customer service Emergency preparedness Rate cases Reporting and compliance Relationships Strategy Overview Strategy Overview
Slide 5: Value Proposition
UES Northern Usource FGE Granite State 90% of EPS from regulated operations 171,000 Customers 171,000 Customers Value Proposition 6% dividend yield Significant asset and earnings growth potential 50% gas / 50% electric
Slide 6: Regulatory Agenda
Regulatory Agenda
Slide 7: Rate Case Overview
UES (12 mos.) Jan-10 Jan-11 Jan-12 Jan-10 Jan-11 Jan-12 FGE (6-9 mos.) Granite State (6 mos.) Northern (9 mos.) Rate Case Schedule Rate Case Schedule All Distribution Utilities All Distribution Utilities Will Have Rates Reset Will Have Rates Reset Over Next 18 Months Over Next 18 Months Rate Case Ov
Slide 8: Growth Strategy
Growth Strategy
Slide 9: Prudently Pursue Additional Acquisitions in New England
Prudently Pursue Additional Acquisitions in New England Prudently Pursue Additional Acquisitions in New England Acquisition Strategy Northern acquisition (Dec ’08) Increased customer base 50% Doubled sales margins Purchased at below book value Achieved significant synergies
Slide 10: Gas Distribution Expansion
New England Gas Penetration 40% versus 80-90% Nationally Competitive price advantage (~25-30%) Plentiful Supply Gas Distribution Expansion Clean energy Significant rate base growth opportunities
Slide 11: Non-Regulated Energy Brokering
Current Operations New 2010 Markets $0.16 earnings per share in 2009 Greater than 90% customer retention rate $4.3 million in 2009 revenue Non-Regulated Energy Brokering Non-Regulated Energy Brokering Zero counterparty risk
Slide 12: Customer Service
Customer Service
Slide 13: February 2010 Wind Storm
February 2010 Wind Storm Second Worst Natural Disaster in NH History Second Worst Natural Disaster in NH History 63,000 customers out (85% of NH customers) Over 250 crews responded from eight states Over 1,000 individuals participated during the event to restore power 3.5 day restoration time
Slide 14: Community Appreciation
Community Appreciation “Unitil really stepped up to the challenge” “Your regular updates… kept us informed and kept information flowing to the public” “This time, the effort was, simply, superb” “This response should be…the model for the way it is done” - NH Governor Lynch - Exeter, NH Police Chief
Slide 15: Highlights
Highlights Stable natural gas and electric transmission and distribution business model Bridging the gap between actual and authorized ROE Low cost and reliable utility operations Historic dividend stability and commitment Diverse gas and electric utility asset base, customer and revenue mix Signifi
Slide 16: Appendix
Appendix
Slide 17: 2010 – 2011 Earnings Overview
2010 – 2011 Earnings Overview 2010 will be an important transition year as we implement our regulatory agenda to realize the full earnings potential of our growing utility asset base over the next 18 months Near-term earnings pressure will persist until rates are reset across Unitil’s electric and g
Slide 18: Net Plant Capital Expenditures
Net Plant Capital Expenditures Strong historical commitment to investment in utility assets Northern acquisition in December 2008 significantly increased net plant and capital expenditures Growth in rate base largely driving need for base distribution rate increases across all utility subsidiaries G
Slide 19: Rate Case Timeline
(1) Pro forma to include recent equity contributions from Unitil Corporation. 2009 Actual ROE calculated by dividing 2009 Net Income by December 2009 Common Equity (2) Excludes effect of non-recurring pre-tax purchased gas refund of $4.9 million (3) Not meaningful due to length of time since last ra
Slide 20: Historic Dividend Stability and Commitment
Current quarterly dividend is $0.345 (annual dividend is $1.38 per share) Current dividend yield of approximately 6% Since incorporation in 1984, Unitil has continuously paid quarterly dividends and has never reduced its dividend rate Historic Dividend Stability and Commitment $0.310 $0.320 $0.330 $