10-KPeriod: FY2020

EVERSOURCE ENERGY Annual Report, Year Ended Dec 31, 2020

Filed February 17, 2021For Securities:ES

Summary

Eversource Energy's 2020 10-K filing highlights a year of robust operational performance and strategic growth, marked by the significant acquisition of Columbia Gas of Massachusetts' natural gas distribution business for $1.1 billion. This acquisition bolstered the company's natural gas segment, contributing positively to its overall financial results. The company demonstrated strong earnings, with a notable increase in diluted earnings per share to $3.55 compared to $2.81 in 2019, excluding acquisition-related costs. Eversource Energy also maintained a stable financial position, supported by consistent operating cash flows and access to capital markets, enabling significant capital expenditures of $2.94 billion in 2020, primarily directed towards electric and natural gas distribution and transmission infrastructure. The report emphasizes Eversource Energy's commitment to reliability, safety, and customer service across its electric, natural gas, and water utility operations. Despite challenges posed by the COVID-19 pandemic, the company effectively managed its operations, including implementing safety measures and providing customer assistance programs, with regulatory mechanisms in place to recover incremental costs. The filing also outlines significant investments in future growth areas, such as offshore wind projects, underscoring a forward-looking strategy. Overall, Eversource Energy's 2020 performance indicates a company well-positioned for continued growth, with a diversified utility portfolio, a strong regulatory environment supporting cost recovery, and strategic investments in renewable energy and infrastructure upgrades.

Financial Highlights

49 data points
Beta

Revenue

$8.90B

Net Income

$1.21B

13.6% Net Margin

EPS (Diluted)

$3.55

Total Assets

$46.10B

Cash & Equivalents

$106.60M

Free Cash Flow

-$1.26B

Financial Statements
Beta
Revenue$8.90B
Operating Expenses$6.92B
Operating Income$1.99B
Interest Expense$538.45M
Net Income$1.21B
EPS (Basic)$3.56
EPS (Diluted)$3.55
Shares Outstanding (Basic)338.84M
Shares Outstanding (Diluted)339.85M

Key Highlights

  • 1Completed the acquisition of Columbia Gas of Massachusetts' natural gas distribution business for $1.1 billion, expanding the natural gas segment.
  • 2Reported a significant increase in diluted earnings per share to $3.55 in 2020, up from $2.81 in 2019, excluding acquisition costs.
  • 3Invested $2.94 billion in property, plant, and equipment in 2020, focusing on electric and natural gas distribution and transmission infrastructure.
  • 4Maintained strong liquidity with $1.68 billion in cash flows from operating activities and $1.40 billion in available borrowing capacity under commercial paper programs.
  • 5Successfully managed operations and financial impacts during the COVID-19 pandemic, with regulatory mechanisms anticipated to recover incremental costs.
  • 6Projected capital expenditures of $17.03 billion from 2021-2025, with significant allocations to electric and natural gas distribution segments.
  • 7Continued strategic investments in offshore wind projects, with a total equity investment balance of $887.1 million in 2020.

Frequently Asked Questions

The acquisition of Columbia Gas of Massachusetts' natural gas distribution business for $1.1 billion on October 9, 2020, significantly expanded Eversource Energy's natural gas segment, adding over 330,000 customers and 5,000 miles of natural gas distribution pipeline. This strategic move contributed positively to the company's financial results and expanded its service territory in Massachusetts.

Eversource Energy reported that COVID-19 did not result in significant operational or earnings impacts. The company implemented its pandemic response plan to ensure employee and customer safety and continuity of service. Regulatory mechanisms are in place or being developed to recover incremental costs associated with the pandemic, including uncollectible customer receivable expenses, while balancing impacts on customer bills and operating cash flows.

Eversource Energy projects capital expenditures of $17.03 billion from 2021 through 2025. The majority of these investments, approximately $10.90 billion, are allocated to the electric and natural gas distribution segments, with an additional $4.31 billion planned for the electric transmission segment and $0.78 billion for the water distribution segment. These projections do not include investments related to offshore wind projects.

Eversource Energy has a 50% ownership interest in North East Offshore and Bay State Wind, which collectively hold contracts for the Revolution Wind, South Fork Wind, and Sunrise Wind projects. These projects are being developed in partnership with Ørsted. As of December 31, 2020, Eversource's total equity investment in its offshore wind business was $887.1 million. The company is advancing permitting processes for these projects, with expected investments of $300 million to $500 million in 2021.