10-KPeriod: FY2019

EVERSOURCE ENERGY Annual Report, Year Ended Dec 31, 2019

Filed February 27, 2020For Securities:ES

Summary

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 million ($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 billion. 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.

Financial Highlights

49 data points
Beta

Revenue

$8.53B

Net Income

$916.57M

10.7% Net Margin

EPS (Diluted)

$2.81

Total Assets

$41.12B

Cash & Equivalents

$15.43M

Free Cash Flow

-$901.91M

Financial Statements
Beta
Revenue$8.53B
Operating Expenses$6.94B
Operating Income$1.59B
Interest Expense$533.20M
Net Income$916.57M
EPS (Basic)$2.83
EPS (Diluted)$2.81
Shares Outstanding (Basic)321.42M
Shares Outstanding (Diluted)322.94M

Key Highlights

  • 1Net 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.
  • 2Excluding the NPT impairment charge, adjusted net income for 2019 was $1.11 billion ($3.45 per diluted share).
  • 3Eversource projects capital expenditures of $14.19 billion from 2020 through 2024, with the majority allocated to electric and natural gas distribution segments.
  • 4The 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.
  • 5Total shareholder return for 2019 was 34.4%, outperforming the S&P 500 and EEI Index.
  • 6Eversource's electric system reliability and restoration performance in 2019 were its best ever, placing it in the top decile of the industry.
  • 7The company declared a common share dividend of $2.14 per share in 2019, representing a 6.1% increase from the previous year.

Frequently Asked Questions

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.

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.

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.

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.