Slide 1: Financial and Strategic Update
FINANCIAL AND STRATEGIC UPDATE May 7, 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 strategic execution Achieving Strong Financial Results • 2024 Net Income of $27.2 million or $1.69 per share, through the first quarter • $0.18 per share increase compared to the first quarter of 2023 supported by regulato
Slide 4: Utility Scale Project in New Hampshire
Utility Scale Project in New Hampshire Site work and construction underway for 5 MW Solar Facility in Kingston, NH Project Summary and Update • Site work began in Q1 and is progressing as expected • PV Facility electrical design nearing completion • Nominated for Project of the Year Energy Champion
Slide 5: First Quarter 2024 Financial Results
First Quarter 2024 Financial Results Net Income and Earnings Per Share Net Income of $27.2 million in the first quarter, or $1.69 per share • Net Income increase of $3.1 million, or $0.18 per share, relative to the first quarter of 2023 • Earnings growth reflects higher Electric and Gas Adjusted Gro
Slide 6: Volume and Adjusted Gross Margin Variances
Volume and Adjusted Gross Margin Variances Year-to-Date variances in units, customers, and adjusted gross margin Electric Operations Unit Sales and Customers • Electric distribution revenue substantially decoupled (2) Weather Normalized Unit • Weather normalized Residential and C&I sales increased 0
Slide 7: First Quarter Earnings Reconciliation
First Quarter Earnings Reconciliation Variances to prior period Net Income • Adjusted Gross Margin(1) increased $6.5 million as a result of higher rates and customer growth, partially offset by warmer winter weather in 2024. • Operation and Maintenance Expenses increased $0.1 million due to higher u
Slide 8: Fitchburg Rate Case Overview (Electric and Gas)
Fitchburg Rate Case Overview (Electric and Gas) FG&E rate cases progressing on schedule and nearing conclusion Rate Case Filing Details (1) Key Elements Docket Number 23-80 (electric) and 23-81 (gas) • Five-year Performance Based Ratemaking plans with annual inflation-based adjustments to revenue Te
Slide 9: Massachusetts Electric Sector Modernization Plan (ESMP)
Massachusetts Electric Sector Modernization Plan (ESMP) Capital investments to optimize electric system capacity and technological improvements ESMP Summary Plan supports • Comprehensive distribution and technology investment plan to: • Improve reliability and resiliency Commonwealth’s • Increase ti
Slide 10: Significant Investment Opportunities
Significant Investment Opportunities Anticipate long-term rate base growth of 6.5% to 8.5% Historical Rate Base Growth Long-Term Financing Sources $s in Millions $1,200 Five-year CAGR of 7.3% approximates mid-point of long-range guidance Equity, 13% $1,000 $800 $600 Debt, 25% CFFO, Less $400 Dividen
Slide 11: Balance Sheet Strength and Capitalization
Balance Sheet Strength and Capitalization Maintaining investment grade credit ratings Responsible Financing Plan Balanced Capital Structure (as of March 31, 2024) • Maintaining a strong balance remains a top objective • Capital investments funded principally by Cash Flow From Operations less dividen
Slide 12: Operating Excellence
Operating Excellence Industry leading reliability, response time, and customer satisfaction paired with effective cost control 1 Top-Tier Electric Service Reliability st Northeast Utilities Northeast Utilities • 12% lower service interruption time over the last 5 years compared to the prior five yea
Slide 13: 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% $910 million 55%-65% 15%-19% Cost Net Zero Expected Annual EPS Growth Expected Annual Utility Rate Base Growth Planned E
Slide 14: Appendix
Appendix Slide 15 About Unitil 16 GAAP ROE 17 Rate Relief Summary 18 10-Year Financial Performance 86,600 Natural Gas Customers 19 Long-Term Earnings Growth 20 Dividend Increase and Expected Payout 21 Dividend History 22 Service Area Advantages 23 Key Regulatory Recovery Mechanisms 24 GAAP Reconcili
Slide 15: 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 16: 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 $266 9.0% Unitil Energy Systems $124 9.0% Fitchburg Gas and Electric 86,600$128 10.1% Natural Gas Customers Granite State Gas $22 7.1% Unitil Corporat
Slide 17: Rate Relief Summary
Rate Relief Summary Successful regulatory strategy resulting in awards from both capital trackers and rate cases Company Activity Millions Date Effective Capital Tracker $2.1 Q2 2023 Northern Utilities (Maine) Base Rate Case Increase $7.6 Q4 2023 Capital Tracker $2.4 Q2 2024 Unitil Energy Systems Ca
Slide 18: Recapping Financial Performance Over the Past Decade
Recapping Financial Performance Over the Past Decade Historical earnings growth at mid-point of long-term guidance Performance Over Last 10 Years Historical Earnings per Share (1) $3.00 7.7% Net Income 2.1x Net Income Annual Growth Compared to 2013 $2.50 $2.00 6.0% Earnings Per Share 1.8x EPS Annual
Slide 19: Maintaining Long-Term Earnings Growth
Maintaining Long-Term Earnings Growth Long-term growth expectation remaining in the range of 5% to 7%(1) $4.00 2024 Expectations $3.80 • 2024 earnings expected to be within long-term growth range • Decoupled margin provides stability and visibility – $3.60 over 80% of customers under decoupled rates
Slide 20: Dividend Increase and Expected Payout
Dividend Increase and Expected Payout Consecutive years of accelerated dividend rate increases Historical Dividend and Payout Ratio $1.75 100% $1.70 • Balancing dividend sustainability with capital 90% investment opportunities $1.65 $1.62 80% $1.56 70% • Expected dividend payout ratio to remain in $
Slide 21: 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 21
Slide 22: Service Area Economies Remain Strong
Service Area Economies Remain Strong Customer growth should be supported by strong economies and ongoing development New Housing Permits meet 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 an
Slide 23: 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 24: GAAP Reconciliation of Adjusted Gross Margin
GAAP Reconciliation of Adjusted Gross Margin Three Months Ended March 31, 2024 86,600 Natural Gas Customers SLIDE 24