01—Abstract
Summary
Summary of the 10-K filed February 27, 2020. Cited figures are marked; the original filing is the authoritative source.
Eversource Energy's (ES) 2019 Form 10-K highlights a robust operational year characterized by steady revenue growth and significant capital expenditures aimed at enhancing its energy and water infrastructure.
The company reported net income attributable to common shareholders of $909.1 milliona ($2.81 per diluted share) for 2019, a decrease from $1.03 billion ($3.25 per diluted share) in 2018, primarily due to a substantial after-tax impairment charge of $204.4 million related to the Northern Pass Transmission (NPT) project. Excluding this charge, adjusted net income was $1.11 billion ($3.45 per diluted share). Strategically, Eversource is making significant investments in its regulated utility segments, projecting $14.19 billion in capital expenditures from 2020-2024, with a focus on electric and natural gas distribution.
The company also continues to expand its clean energy portfolio, notably through its joint venture in offshore wind projects with Ørsted, and has announced a significant acquisition of Columbia Gas of Massachusetts for $1.1 billionb. These strategic moves, coupled with ongoing operational improvements and a commitment to shareholder returns through increased dividends, position Eversource for continued stability and growth within the regulated utility sector.
02—Key points
Key Highlights
- Net income attributable to common shareholders for 2019 was $909.1 million ($2.81 per diluted share), down from $1.03 billion ($3.25 per diluted share) in 2018, impacted by a $204.4 million after-tax impairment charge related to the Northern Pass Transmission (NPT) project.
- Excluding the NPT impairment charge, adjusted net income for 2019 was $1.11 billion ($3.45 per diluted share).
- Eversource projects capital expenditures of $14.19 billion from 2020 through 2024, with the majority allocated to electric and natural gas distribution segments.
- The company is expanding its clean energy initiatives, notably its offshore wind partnership with Ørsted, and has entered into an agreement to acquire Columbia Gas of Massachusetts for $1.1 billion.
- Total shareholder return for 2019 was 34.4%, outperforming the S&P 500 and EEI Index.
- Eversource's electric system reliability and restoration performance in 2019 were its best ever, placing it in the top decile of the industry.
- The company declared a common share dividend of $2.14 per share in 2019, representing a 6.1% increase from the previous year.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2019filed February 27, 2020Financial Statements
FY2019 against FY2018
| Line item | FY2019FY2018 | Change |
|---|---|---|
| Revenue | $8.53B$8.45B | +0.9% |
| Operating Expenses | $6.94B$6.75B | +2.8% |
| Operating Income | $1.59B$1.70B | −6.4% |
| Interest Expense | $533.20M$498.81M | +6.9% |
| Net Income | $916.57M$1.04B | −11.9% |
| EPS (Basic) | $2.83$3.25 | −12.9% |
| EPS (Diluted) | $2.81$3.25 | −13.5% |
| Shares Outstanding (Basic) | 321.42M317.37M | +1.3% |
| Shares Outstanding (Diluted) | 322.94M317.99M | +1.6% |
05—Questions
Frequently Asked Questions
What was Eversource's financial performance in 2019?
In 2019, Eversource reported net income attributable to common shareholders of $909.1 million, or $2.81 per diluted share. This represents a decrease from $1.03 billion, or $3.25 per diluted share, in 2018. The decrease was primarily due to a $204.4 million after-tax impairment charge related to the Northern Pass Transmission (NPT) project. Excluding this charge, adjusted net income was $1.11 billion, or $3.45 per diluted share.
What are Eversource's key capital expenditure plans?
Eversource projects capital expenditures of $14.19 billion from 2020 through 2024. The majority of these expenditures are allocated to the electric and natural gas distribution segments ($8.63 billion), followed by the electric transmission segment ($3.98 billion) and the water distribution segment ($0.69 billion). An additional $0.90 billion is projected for information technology and facilities upgrades.
What are Eversource's major strategic initiatives?
Eversource is actively pursuing strategic growth initiatives. These include expanding its offshore wind business through a partnership with Ørsted, developing multiple projects like Revolution Wind, South Fork Wind, and Sunrise Wind. Additionally, Eversource has entered into an asset purchase agreement to acquire Columbia Gas of Massachusetts for $1.1 billion, which is expected to close later in 2020, subject to regulatory approvals. The company also continues to invest in modernizing its electric and gas infrastructure.
How did Eversource perform in terms of operational reliability and safety?
Eversource reported its best-ever electric system reliability performance in 2019, with average months between interruptions significantly exceeding industry peers and falling within the top decile. Restoration performance also improved, with the average system outage duration showing a 23% decrease from 2018. The company's safety performance, measured by DART rate, also improved and outperformed industry averages.
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