10-KPeriod: FY2021

EVERSOURCE ENERGY Annual Report, Year Ended Dec 31, 2021

Filed February 17, 2022For Securities:ES

Summary

Eversource Energy's 2021 10-K filing reveals a stable year for its regulated utility operations, with net income attributable to common shareholders reaching $1.22 billion, a slight increase from $1.21 billion in 2020. The company continues to invest heavily in infrastructure upgrades and clean energy initiatives. The filing highlights significant capital expenditure projections for 2022-2026, totaling $18.14 billion, primarily allocated to electric and natural gas distribution and transmission segments. Notably, the company is advancing its offshore wind projects, with South Fork Wind receiving final federal approval and entering the construction phase. Regulatory matters, particularly concerning CL&P's storm cost recovery and a settlement agreement, are detailed, impacting earnings by $0.25 per share in 2021. Management expects continued earnings per share growth in the upper half of the 5-7% range through 2026.

Financial Highlights

49 data points
Beta

Revenue

$9.81B

Net Income

$1.23B

12.5% Net Margin

EPS (Diluted)

$3.54

Total Assets

$48.49B

Cash & Equivalents

$66.77M

Free Cash Flow

-$1.21B

Financial Statements
Beta
Revenue$9.81B
Operating Expenses$7.87B
Operating Income$1.99B
Interest Expense$582.33M
Net Income$1.23B
EPS (Basic)$3.55
EPS (Diluted)$3.54
Shares Outstanding (Basic)343.97M
Shares Outstanding (Diluted)344.63M

Key Highlights

  • 1Eversource Energy reported net income attributable to common shareholders of $1.22 billion ($3.54 per share) in 2021, compared to $1.21 billion ($3.55 per share) in 2020.
  • 2Projected capital expenditures from 2022 to 2026 total $18.14 billion, supporting infrastructure modernization and clean energy investments.
  • 3The company is a significant participant in offshore wind development, with South Fork Wind receiving final federal approval and commencing construction.
  • 4CL&P entered into a settlement agreement with regulators, including customer credits and a rate freeze until early 2024, which resulted in a $0.25 per share after-tax impact in 2021.
  • 5The electric transmission segment saw earnings growth driven by increased rate base from ongoing infrastructure investments.
  • 6Natural gas distribution segment earnings increased, partly due to the incremental impact of the EGMA acquisition.
  • 7The company reaffirmed its commitment to sustainability, with a target of operational carbon neutrality by 2030 and progress in reducing GHG emissions.

Frequently Asked Questions

In 2021, Eversource Energy reported net income attributable to common shareholders of $1.22 billion ($3.54 per share), a slight increase from $1.21 billion ($3.55 per share) in 2020. Excluding certain one-time costs related to a CL&P settlement agreement and acquisition/transition costs, non-GAAP earnings were $1.33 billion ($3.86 per share) in 2021, compared to $1.24 billion ($3.64 per share) in 2020.

Eversource Energy projects capital expenditures of $18.14 billion from 2022 through 2026. Key investments are allocated to electric distribution ($7.02 billion), electric transmission ($4.60 billion), and natural gas distribution ($4.53 billion), supporting infrastructure improvements and clean energy initiatives.

The company is making significant strides in its offshore wind business. South Fork Wind received final federal approval for its Construction and Operations Plan and has entered the construction phase. Revolution Wind and Sunrise Wind are also progressing through federal and state permitting processes, with expected in-service dates in 2025.

CL&P entered into a settlement agreement approved by PURA in October 2021, which included customer credits totaling $65 million and the establishment of a $10 million fund for customer assistance. As part of this agreement, CL&P's base distribution rates are frozen until at least January 1, 2024. The settlement, along with a storm performance penalty, resulted in a pre-tax impact of $103.6 million ($0.25 per share after-tax) in 2021.

The company projects 2022 non-GAAP earnings per share guidance between $4.00 and $4.17. Eversource also projects its long-term EPS growth rate through 2026 from its regulated utility businesses to be in the upper half of a 5 to 7 percent range.