Summary
This 10-Q filing for EVERSOURCE ENERGY (ES), as of November 3, 2017, primarily focuses on market risk disclosures and controls and procedures. The company manages commodity price and interest rate risks through established policies, with regulated entities passing on energy contract impacts to customers. Credit risk is managed through a diverse customer and supplier base, with no material changes to previously disclosed risks. The company also reports on its stock repurchase program and legal proceedings, including a lawsuit against the DOE for damages related to energy contracts.
Financial Highlights
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Financial Statements
Beta
| Revenue | $1.99B |
| Operating Expenses | $1.49B |
| Operating Income | $495.30M |
| Interest Expense | $108.72M |
| Net Income | $262.20M |
| EPS (Basic) | $0.82 |
| EPS (Diluted) | $0.82 |
| Shares Outstanding (Basic) | 317.39M |
| Shares Outstanding (Diluted) | 317.95M |
Key Highlights
- 1Eversource's regulated entities have no exposure to commodity price risk as economic impacts are passed to customers.
- 2Interest rate risk is managed by maintaining a mix of fixed and variable rate long-term debt.
- 3Credit risk is managed across a diverse customer and supplier base, with no material changes from prior disclosures.
- 4A new supply chain management system was implemented in Q3 2017, involving a material change in internal controls over financial reporting.
- 5Disclosure controls and procedures were deemed effective by management.
- 6The company repurchased 178,040 shares of common stock for approximately $10.8 million during Q3 2017.
- 7Yankee Companies filed a $100 million lawsuit against the DOE concerning energy contracts, with trial expected in 2018.
Frequently Asked Questions
For its regulated companies, Eversource passes on the economic impacts of energy contracts directly to customers, thus mitigating direct exposure to commodity price risk. A dedicated Energy Supply Risk Committee oversees these transactions.
The filing indicates that there have been no additional material market risks identified and no material changes to previously disclosed risks regarding interest rate and credit risk management compared to the 2016 10-K. Credit risk is managed through a diverse customer and supplier base.
Yes, Eversource implemented a new supply chain management system in the third quarter of 2017. This represented a material change in internal controls over financial reporting, consolidating and standardizing supply chain processes across its subsidiaries.
The Yankee Companies, a part of Eversource, have filed a lawsuit against the DOE seeking approximately $100 million in damages related to energy contracts. The trial is anticipated to begin in 2018. No other material legal proceedings or changes were reported.