UNITIL CORP Q3 FY2024 earnings call

• Announced breakeven results for Q3 2024; YTD 2024 net income was $31.5 million or $1.96 per share, an increase of $0.11 per share from 2023. Adjusted net income YTD was $32.1 million or $2 per share. • Published 2024 Corporate Sustainability and Responsibility Report, with progress on reducing greenhouse gas emissions (18% reduction vs 2019 levels). • Advanced Mobile Leak Detection Program using Picarro technology to measure methane emissions, expanded to all natural gas systems. • Advanced Metering Infrastructure Upgrade project underway to replace legacy AMI system. • Granite State Gas Transmission filed uncontested rate case settlement with FERC, and ongoing regulatory proceedings for Bangor Natural Gas acquisition. • Projected capital spending through 2028 totals ~$910 million, with Kingston Solar Facility construction started, expected in service Q2 2025.

For the nine months ended September 30, 2024, electric adjusted gross margin was $81.7 million, an increase of $1.6 million compared to the same period in 2023, driven by higher distribution rates and customer growth (approximately 1,100 new electric customers added). Gas adjusted gross margin was $115.6 million for the same period, an increase of $9.2 million compared to 2023, also due to higher distribution rates and customer growth (approximately 720 new gas customers added).

• Full-year earnings expected to be within long-term guidance range. • Long-term earnings growth targeted at 5%-7%, with rate-based growth in 6.5%-8.5% range and dividend payout ratio 55%-65%. • Bangor Natural Gas acquisition expected to close by end of Q1 2025. • Capital plan ~$910 million through 2028, with upside for electric sector modernization investments.

• Forward-looking statements involve risks and uncertainties that can cause actual results to differ materially from predictions. • Regulatory proceedings for acquisitions and rate cases could impact financial results. • Inflation and interest rate changes may affect operating expenses and financing costs.

Q: Break down capital spending by asset class between electric and gas and trends in state policies affecting these.

A: Tom notes a shift towards electric due to state policies, current capital spend mix is ~two-thirds gas, one-third electric. Dan adds there's upside in electric sector modernization investments, especially in Massachusetts.

Q: Impact of new state policies on the 6.5% to 8.5% rate-based growth target.

A: Dan states there is upside to the rate-based growth target, particularly for investments in the electric sector modernization plan included in the $910 million capital plan through 2028.