Summary
Eversource Energy (formerly Northeast Utilities) reported solid financial performance in its 2014 10-K filing. The company experienced revenue growth driven by increased electric and natural gas sales volumes, partly due to colder weather in early 2014. Key drivers of revenue included residential customers (53% of electric revenue) and commercial customers (40% of electric revenue). The company's strategic investments in transmission infrastructure contributed to a revenue increase in that segment. Management highlighted effective cost management, with operations and maintenance expenses decreasing primarily due to lower labor and employee-related costs, including pension costs, and reduced storm restoration expenses. The company also noted significant progress in its integration activities post-merger with NSTAR, including rebranding to Eversource Energy in February 2015. Capital expenditures were substantial, with projections of $8.4 billion from 2015-2018 focused on electric and natural gas distribution and transmission segments. The company maintains strong credit ratings and healthy liquidity, with sufficient access to capital markets to fund its operations and capital expenditures.
Financial Highlights
48 data points| Revenue | $7.74B |
| Operating Expenses | $6.11B |
| Operating Income | $1.63B |
| Interest Expense | $362.11M |
| Net Income | $827.07M |
| EPS (Basic) | $2.59 |
| EPS (Diluted) | $2.58 |
| Shares Outstanding (Basic) | 316.14M |
| Shares Outstanding (Diluted) | 317.42M |
Key Highlights
- 1Eversource Energy reported a net income of $819.5 million, or $2.58 per diluted share, for 2014, an increase from $786.0 million, or $2.49 per diluted share, in 2013.
- 2The company's electric distribution segment, including generation, earned $462.4 million ($1.45 per share) in 2014, while the transmission segment earned $295.4 million ($0.93 per share), and the natural gas distribution segment earned $72.3 million ($0.23 per share).
- 3Operating revenues increased by 6.0% to $7.74 billion in 2014, primarily driven by higher energy supply costs recovered through rate mechanisms and increased natural gas sales due to colder weather.
- 4Operations and maintenance expenses decreased by 5.8% to $1.43 billion in 2014, mainly due to lower labor and employee-related costs, including pension costs, and reduced storm restoration expenses.
- 5Capital expenditures for 2015-2018 are projected at $8.4 billion, with significant investments planned for electric and natural gas distribution ($4.2 billion) and electric transmission ($3.9 billion).
- 6The company maintained strong credit ratings from Moody's, S&P, and Fitch, with generally stable to positive outlooks across its entities.
- 7Eversource Energy successfully managed significant storm events, with restoration costs largely deferred and recoverable through regulatory mechanisms, mitigating the impact on operating results.