Unitil Corporation · NYSE:UTL
Unitil — American Gas Association Financial Forum 2015
17 slides from Unitil's conference presentation, May 14, 2015
Slide 1: American Gas Association Financial Forum
May 2015 American Gas Association Financial Forum Exhibit 99.1
Slide 2: Unitil Overview and Service Areas
Unitil Overview Unitil Service Areas • Natural gas and electric utility with operations in Maine, New Hampshire and Massachusetts • Serving approximately 181,000 gas and electric customers • Utility operations sales margin split 55% gas and 45% electric • Regulated T&D utility business model • Growi
Slide 3: Generating Financial Results: Net Income and Earnings Per Share
Generating Financial Results Net Income Earnings Per Share 17% CAGR ($ in millions) 12% CAGR Robust business fundamentals Improving economy Strong demand for natural gas Utility rate base growth Significant gas growth potential Infrastructure replacement and upgrade projects Constructive regulation
Slide 4: 5-Year Total Shareholder Return Market Performance
5-Year Total Shareholder Return (2010 - 2014) Market Performance Unitil 5-year total return of 106% versus 105% for S&P 500 and 87% for S&P Utility 106% 105% 87% S&P 500 S&P Utility Index
Slide 5: U.S. Shale Plays Domestic Natural Resources
U.S. Shale Plays Domestic Natural Resources Approximately 100+ years of domestic natural gas supply
Slide 6: Proposed Northeast Natural Gas Pipeline Projects
Proposed Northeast Natural Gas Pipeline Projects • Numerous pipeline projects are in development to expand the Northeast pipeline system, to transport supplies from the Marcellus and Utica shale gas basins Prepared by Northeast Gas Association based on publicly available information (2014). Location
Slide 7: Gas Growth Potential
Gas Growth Potential Current On-the-Main Penetration 77,900 (60%) ~50,000 (40%) • The increasing demand for natural gas in our service areas provides favorable conditions for growth • Only 60% penetration on existing distribution system means more room to grow • Expansion in adjacent service areas p
Slide 8: Customer Growth and Gas Sales
Customer Growth and Gas Sales Gas Customer Growth Weather-Normalized Gas Sales The total number of gas customers served grew 3% in – triple the New England peer group average growth Weather-normalized gas unit sales have grown at a 5% annual rate since (therms, in millions) 5% CAGR 1% 3% 0% 1% 2% 3%
Slide 9: 2014 Gas Margin Stability of Gas Margin
2014 Gas Margin Stability of Gas Margin Fixed 25% Decoupled 17% Variable 58% • Recent rate design changes have reduced weather volatility • 25% of gas margin is fixed (i.e. customer charge) which levels customers bills throughout the year • 17% of gas margin is decoupled – margin is unaffected by we
Slide 10: New Service Area Expansion
New Service Area Expansion Brentwood New Service Area Dover Extension Hampton Extension Poland New Service Area Wells Extension Lewiston Extension
Slide 11: Infrastructure Replacement: Cast Iron / Bare Steel Miles Replaced
Infrastructure Replacement Cast Iron / Bare Steel Miles Replaced 2015 F 2016 F 2017 F ME NH MA Modern gas infrastructure – Approximately 70% of gas mains are contemporary materials - polyethylene plastic and protected steel Replacing ~14 miles of remaining older leak prone mains annually across all
Slide 12: Electric Substation Projects
Electric Substation Projects Construction of two major electric distribution substations in New Hampshire began in 2014 Provides capacity to meet forecasted load growth in New Hampshire Enhances reliability and addresses capacity constraints at existing substations Kingston Project: Kingston, NH (Se
Slide 13: Capital Budget and Rate Base
Capital Budget and Rate Base Electric Rate Base 2015 Capital Budget $98 million Gas Rate Base Infrastructure Replacement $22 Gas & Electric Other Requirements $32 ($ in millions) ($ in millions) 3% 10% ($ in millions) Total capital budget of $98 million in 2015 Gas – $58 million Electric – $31 milli
Slide 14: Balanced Capital Structure
Balanced Capital Structure 3/31/15 Liquidity 3/31/15 Capitalization S&P Credit Rating Long Term Debt 54% Common Equity 46% Standard and Poor’s corporate rating of BBB+ Balanced capital structure 46% equity capitalization Significant liquidity to fund growth ($ in millions) Credit Facility Limit 120.
Slide 15: Constructive Regulation Return on Equity
Constructive Regulation Return on Equity Sales and customer growth combined with constructive rate case results and cost trackers continue to drive increases in return on equity Achieved ~$60 million (~50% increase to sales margin) in rate relief since 8.0% 8.2% 9.2% 9.2% 0.0% 3.0% 6.0% 9.0% 12.0% 1
Slide 16: Dividend Strength
Dividend Strength Recently increased dividend in Q1 2015 Current quarterly dividend of $0.35 (annual dividend of $1.40 per share) Current dividend yield of ~4% Since incorporation in 1984, 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 managem
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