10-KPeriod: FY2023

EVERSOURCE ENERGY Annual Report, Year Ended Dec 31, 2023

Filed February 14, 2024For Securities:ES

Summary

Eversource Energy (ES) reported a net loss of $442.2 million ($1.26 per share) for the year ended December 31, 2023. This was primarily driven by a significant $1.95 billion after-tax impairment charge related to its offshore wind investments. Excluding these impairments and other charges, the company's non-GAAP earnings were $1.52 billion ($4.34 per share), an increase from $1.42 billion ($4.09 per share) in 2022, reflecting strong performance in its regulated utility businesses. The company anticipates continued growth, projecting 2024 non-GAAP earnings between $4.50 and $4.67 per share, with a long-term EPS growth rate of 5-7% for its regulated utilities through 2028. Financially, capital expenditures were substantial at $4.34 billion in 2023, supporting ongoing infrastructure investments across its electric distribution, transmission, natural gas, and water segments. The company also announced strategic initiatives, including the execution of an agreement to sell its 50% interests in the South Fork Wind and Revolution Wind projects for approximately $1.1 billion and an exploratory assessment to potentially monetize its water distribution business. These moves aim to strengthen the company's financial position and focus on its core regulated operations.

Financial Statements
Beta
Revenue$11.89B
Operating Expenses$9.51B
Operating Income$2.40B
Interest Expense$855.44M
Net Income-$442.24M
EPS (Basic)$-1.27
EPS (Diluted)$-1.26
Shares Outstanding (Basic)349.58M
Shares Outstanding (Diluted)349.84M

Key Highlights

  • 1Significant $1.95 billion after-tax impairment charge for offshore wind investments led to a reported net loss of $442.2 million in 2023.
  • 2Excluding impairments, non-GAAP earnings increased to $1.52 billion ($4.34/share) in 2023 from $1.42 billion ($4.09/share) in 2022.
  • 3Projected 2024 non-GAAP earnings guidance is $4.50 - $4.67 per share, with projected long-term EPS growth of 5-7% for regulated utilities.
  • 4Capital expenditures totaled $4.34 billion in 2023, with projected capital spending of $23.12 billion from 2024-2028 across utility segments.
  • 5Agreements to sell 50% interests in South Fork Wind and Revolution Wind projects for approximately $1.1 billion are expected to close mid-2024.
  • 6Initiated an exploratory assessment to potentially monetize the water distribution business.
  • 7Dividends per common share increased to $2.70 in 2023 from $2.55 in 2022, with a further increase to $0.715 per share declared for Q1 2024.

Frequently Asked Questions

Eversource Energy reported a net loss of $442.2 million ($1.26 per share) in 2023 primarily due to a substantial after-tax impairment charge of $1.95 billion related to its offshore wind investments. This impairment reflects the company's current estimate of the fair value of these assets in light of evolving market conditions and project development.

Eversource Energy projects 2024 non-GAAP earnings to be in the range of $4.50 to $4.67 per share. Looking ahead, the company anticipates a long-term EPS growth rate of 5% to 7% for its regulated utility businesses through 2028, indicating confidence in the stable performance of its core operations.

Eversource Energy is actively divesting its offshore wind investments. It has entered into an agreement to sell its 50% interests in the South Fork Wind and Revolution Wind projects to Global Infrastructure Partners for approximately $1.1 billion, with closing expected in mid-2024. The company is also exploring the potential sale of its entire water distribution business.

The company is making significant investments in its infrastructure, with capital expenditures totaling $4.34 billion in 2023. Projected capital expenditures from 2024 through 2028 are substantial, amounting to $23.12 billion, with the largest allocations to electric distribution ($9.71 billion) and electric transmission ($5.77 billion), followed by natural gas distribution ($5.44 billion) and water distribution ($1.08 billion).