10-KPeriod: FY2022

EVERSOURCE ENERGY Annual Report, Year Ended Dec 31, 2022

Filed February 15, 2023For Securities:ES

Summary

Eversource Energy (ES) reported strong financial performance for the year ended December 31, 2022, with GAAP earnings per share of $4.05 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 $4.25 and $4.43, projecting a long-term EPS growth rate of 5-7%. Capital expenditure plans remain robust, with approximately $21.5 billion 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.

Financial Statements
Beta
Revenue$12.27B
Operating Expenses$10.09B
Operating Income$2.20B
Interest Expense$678.27M
Net Income$1.41B
EPS (Basic)$4.05
EPS (Diluted)$4.05
Shares Outstanding (Basic)346.78M
Shares Outstanding (Diluted)347.25M

Key Highlights

  • 1Reported 2022 GAAP earnings per share of $4.05 and non-GAAP earnings per share of $4.09, demonstrating solid financial performance.
  • 2Projects 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.
  • 3Plans substantial capital expenditures of $21.52 billion from 2023-2027, primarily for infrastructure upgrades, modernization, and clean energy investments in its regulated segments.
  • 4Initiated 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.
  • 5Maintains strong regulatory relationships, with recent rate increases approved for NSTAR Electric and EGMA, and a performance-based ratemaking plan renewed for NSTAR Electric.
  • 6Demonstrated commitment to shareholders with a dividend increase, paying $2.55 per common share in 2022, a 5.8% increase from 2021.
  • 7Achieved strong operational performance in reliability and restoration metrics, while also focusing on safety and diversity initiatives within its workforce.

Frequently Asked Questions

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.

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.

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.

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.