Summary
Eversource Energy (ES), formerly Northeast Utilities, reported solid financial results for the nine months ended September 30, 2010. The company saw an increase in net income to $258.7 million, or $1.46 per share, up from $245.3 million, or $1.43 per share, in the same period of 2009. This improvement was driven by higher retail electric sales due to warmer weather, effective cost management, and the impact of recent rate case decisions. The company also announced a significant development: a proposed merger of equals with NSTAR, expected to close in the third quarter of 2011. This merger aims to create a combined entity serving approximately 3.5 million customers across New England.
Financial Highlights
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Financial Statements
Beta
| Revenue | $1.24B |
| Operating Expenses | $1.04B |
| Operating Income | $199.60M |
| Interest Expense | $65.90M |
| Net Income | $100.50M |
| EPS (Basic) | $0.57 |
| EPS (Diluted) | $0.57 |
| Shares Outstanding (Basic) | 176.75M |
| Shares Outstanding (Diluted) | 177.01M |
Key Highlights
- 1Net income for the first nine months of 2010 increased to $258.7 million ($1.46/share) from $245.3 million ($1.43/share) in the prior year's period.
- 2Third quarter 2010 net income was $100.5 million ($0.57/share), up from $64.8 million ($0.37/share) in the third quarter of 2009.
- 3The company raised its full-year 2010 earnings per share guidance to $2.10-$2.20 from $1.95-$2.05.
- 4A definitive merger agreement was announced with NSTAR, creating a combined company serving approximately 3.5 million customers, with an expected closing in the third quarter of 2011.
- 5Capital expenditures for the first nine months of 2010 totaled $677.6 million, a slight increase from $634.4 million in the same period of 2009, reflecting ongoing investments in transmission and distribution infrastructure.
- 6The company refinanced its credit facilities, securing $400 million and $500 million unsecured revolving credit facilities for its subsidiaries and parent company, respectively, both expiring in September 2013.
Frequently Asked Questions
The most significant strategic development is the announcement of a definitive merger agreement with NSTAR on October 18, 2010. This merger of equals is expected to create a larger, combined company serving approximately 3.5 million customers across New England and is anticipated to close in the third quarter of 2011, subject to regulatory and shareholder approvals.
Eversource Energy (Northeast Utilities) reported an increase in net income for the first nine months of 2010 to $258.7 million, or $1.46 per share, compared to $245.3 million, or $1.43 per share, for the same period in 2009. This improvement was driven by factors including warmer weather leading to higher retail electric sales, effective cost management, and the positive impact of recent rate case decisions.
The company projects capital expenditures of approximately $6.6 billion for the period 2011-2015. This investment is expected to drive rate base growth from approximately $7.4 billion at the end of 2010 to an estimated $11.9 billion by the end of 2015, supporting infrastructure upgrades and expansion projects.
The company's cash and cash equivalents increased to $41.2 million as of September 30, 2010, from $27 million at the end of 2009. Eversource Energy recently entered into new three-year, $400 million and $500 million unsecured revolving credit facilities for its subsidiaries and parent company, respectively, ensuring continued access to liquidity. The company anticipates no additional long-term debt issuances for the remainder of 2010.