01—Abstract
Summary
Summary of the 10-K filed February 15, 2023. Cited figures are marked; the original filing is the authoritative source.
Eversource Energy (ES) reported strong financial performance for the year ended December 31, 2022, with GAAP earnings per share of $4.05a and non-GAAP earnings per share of $4.09.
The company's regulated utility businesses, spanning electric distribution, transmission, and natural gas distribution, showed solid growth driven by rate increases, capital investments in infrastructure, and the absence of significant one-time charges that impacted the prior year. Looking ahead, Eversource provided guidance for 2023 non-GAAP earnings per share between $4.25b and $4.43, projecting a long-term EPS growth rate of 5-7%.
Capital expenditure plans remain robust, with approximately $21.5 billionc projected from 2023 through 2027, focused on modernizing and strengthening its regulated energy and water delivery systems. A significant strategic development is the ongoing review of the company's offshore wind investment portfolio, with potential alternatives being explored that could lead to the sale of all or part of its interest in the partnership with Ørsted.
02—Key points
Key Highlights
- Reported 2022 GAAP earnings per share of $4.05 and non-GAAP earnings per share of $4.09, demonstrating solid financial performance.
- Projects 2023 non-GAAP earnings per share guidance in the range of $4.25 to $4.43, with a projected long-term EPS growth rate of 5-7% from regulated utility businesses.
- Plans substantial capital expenditures of $21.52 billion from 2023-2027, primarily for infrastructure upgrades, modernization, and clean energy investments in its regulated segments.
- Initiated a strategic review of its offshore wind investment portfolio, exploring the potential sale of all or part of its 50% interest in the partnership with Ørsted, with an expected conclusion in Q2 2023.
- Maintains strong regulatory relationships, with recent rate increases approved for NSTAR Electric and EGMA, and a performance-based ratemaking plan renewed for NSTAR Electric.
- Demonstrated commitment to shareholders with a dividend increase, paying $2.55 per common share in 2022, a 5.8% increase from 2021.
- Achieved strong operational performance in reliability and restoration metrics, while also focusing on safety and diversity initiatives within its workforce.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2022filed February 15, 2023Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $12.27B$9.81B | +25.0% |
| Operating Expenses | $10.09B$7.87B | +28.2% |
| Operating Income | $2.20B$1.99B | +10.3% |
| Interest Expense | $678.27M$582.33M | +16.5% |
| Net Income | $1.41B$1.23B | +15.0% |
| EPS (Basic) | $4.05$3.55 | +14.1% |
| EPS (Diluted) | $4.05$3.54 | +14.4% |
| Shares Outstanding (Basic) | 346.78M343.97M | +0.8% |
| Shares Outstanding (Diluted) | 347.25M344.63M | +0.8% |
05—Questions
Frequently Asked Questions
What was Eversource Energy's financial performance in 2022?
Eversource Energy reported GAAP earnings per share of $4.05 and non-GAAP earnings per share of $4.09 for the year ended December 31, 2022. This reflects strong performance driven by its regulated utility businesses, with increases in earnings from electric distribution, transmission, and natural gas distribution segments.
What are Eversource Energy's capital expenditure plans?
The company plans to invest approximately $21.52 billion in capital expenditures from 2023 through 2027. These investments are primarily focused on maintaining and enhancing its electric distribution, natural gas distribution, and electric transmission infrastructure, including grid modernization and clean energy initiatives.
What is the status of Eversource Energy's offshore wind business?
Eversource Energy is currently conducting a strategic review of its 50% interest in its offshore wind partnership with Ørsted. The company is exploring strategic alternatives, which could include the sale of all or part of this interest. The review is expected to conclude in the second quarter of 2023, and proceeds from any sale could be used to support regulated investments.
How does Eversource Energy manage regulatory matters?
Eversource Energy operates in regulated environments where rates are determined by state commissions and the FERC. The company actively engages in rate cases and regulatory proceedings to ensure the recovery of costs and a reasonable return on investment. Recent developments include rate increases approved for NSTAR Electric and EGMA, and the renewal of NSTAR Electric's performance-based ratemaking plan.
06—Continue