Slide 1: Annual Meeting of Shareholders: Charting Our Growth
Annual Meeting of Shareholders Charting Our Growth – April 20, 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: Unitil Overview
Natural gas and electric utility operations in Maine, New Hampshire and Massachusetts Serving approximately 182,000 gas and electric customers Utility operations sales margin split ~55% gas and ~45% electric Regulated “Pipes and Wires” utility business model Growing operations and customers Regulate
Slide 4: 2015 Accomplishments
2015 Accomplishments Met or exceeded all service quality metrics for safety, reliability and customer service Customers enjoying best reliability in Company’s history – 48% reduction in outages since 2010 Achieved record levels of revenues , earnings and total customers served Continued to expand na
Slide 5: Generating Financial Results
Generating Financial Results Net Income Earnings Per Share $1.43 $1.57 $1.79 $1.89 Business fundamentals Improving economy Strong demand for natural gas Gas distribution expansion Strong customer and unit sales growth rates Utility rate base growth Gas distribution expansion and infrastructure repla
Slide 6: 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 7: Gas Rate Base Growth
Gas Rate Base Growth Gas Rate Base & Income $4 $15 Gas rate base has doubled and gas segment income has nearly quadrupled since acquiring New Hampshire and Maine gas business ($ in millions) $179 $357 $0 $5 $10 $15 $20 $25 $0 $100 $200 $300 $400 $500 Rate Base Gas Segment Income
Slide 8: Gas Sales Growth
Gas Sales Growth Historical Weather-Normalized Sales* Historical weather-normalized sales growth of 4-6% annually since 2012 Commercial and industrial weather-normalized sales* were up 8% in 2015 compared to 2014 *Excludes decoupled gas sales Therms, in millions
Slide 9: New Gas Service Areas
New Gas Service Areas Saco TAB Target Areas Targeted Area Buildout Saco, Maine pilot Potential new market of 1,000 customers $1 million in potential distribution revenue Evaluating new opportunities in other cities and towns System expansion projects Extending existing mains into adjacent areas attr
Slide 10: 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 2017– entire system will be modern Project completion expected end of 2024 – entire system will be modern Project c
Slide 11: Electric Growth Investment
Electric Growth Investment Grid Modernization Substation Projects Construction of two major electric substations in New Hampshire to provide capacity and enhance reliability Grid modernization – regulatory initiatives in New Hampshire and Massachusetts supporting new investment in the distribution s
Slide 12: Electric Reliability (SAIDI)
System Average Interruption Duration Index (SAIDI) Electric Reliability Minutes/Year Average system outage duration has gone down 48% since 2010 Year
Slide 13: Constructive Regulation and Return on Equity
Constructive Regulation Return on Equity Achieved ~$60 million (~50% increase to sales margin) in rate relief since 2010 Sales and customer growth combined with constructive rate case results and cost trackers continue to drive increases in return on equity 8.0% 8.2% 9.2% 9.5%
Slide 14: Usource Revenue and Earnings
Usource Revenue Earnings $5.7 $6.2 $1.1 $1.4 Premier energy advisor to over 1,200 businesses Currently serves electricity and/or natural gas clients in 18 states Forward book of $9.4 million at year-end 2015 ($ in millions) ($ in millions)
Slide 15: Market Outperformance: 5-Year Total Return
Market Outperformance 5-Year Total Return UTL 100% S&P 500 81% S&P Utilities 69% -20% 0% 20% 40% 60% 80% 100% 120% UTL S&P Utilities S&P 500
Slide 16: 2016 Dividend Increase
2016 Dividend Increase Dividends Per Share On January 27, 2016, Unitil announced a $0.02 annual increase in the dividend Achieved a 74% dividend payout ratio in 2015; down from 77% in 2014 Unitil has continuously paid quarterly dividends and has never reduced its dividend rate
Slide 17: 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 cost trackers Dividend strength Experienced m