10-QPeriod: Q2 FY2019

EVERSOURCE ENERGY Quarterly Report for Q2 Ended Jun 30, 2019

Filed August 6, 2019For Securities:ES

Summary

Eversource Energy's (ES) 10-Q filing for the period ending June 30, 2019, indicates a stable operational and risk management framework. The company's regulated utilities effectively pass through commodity price risks to customers, thus mitigating direct exposure to earnings volatility from energy contracts. Interest rate and credit risks are actively managed according to established policies. A notable legal development is the partial summary judgment awarded to the Yankee Companies, which includes Eversource, for $103.2 million related to the Department of Energy's failure to accept spent nuclear fuel. The disputed portion of this claim was settled for an additional $0.5 million, received in July 2019. The company reiterates that no new material risks or changes to previously disclosed risk factors have been identified, and its internal controls over financial reporting remain effective.

Financial Highlights

45 data points
Beta

Revenue

$1.88B

Net Income

$33.33M

1.8% Net Margin

EPS (Diluted)

$0.10

Total Assets

$39.00B

Cash & Equivalents

$20.58M

Free Cash Flow

-$206.47M

Financial Statements
Beta
Revenue$1.88B
Operating Expenses$1.73B
Operating Income$150.99M
Interest Expense$132.71M
Net Income$33.33M
EPS (Basic)$0.10
EPS (Diluted)$0.10
Shares Outstanding (Basic)319.66M
Shares Outstanding (Diluted)320.39M

Key Highlights

  • 1Regulated utility operations shield the company from direct commodity price volatility impacts on earnings.
  • 2Active management of interest rate and credit risks is in place as per written policies.
  • 3Yankee Companies received a favorable partial summary judgment of $103.2 million from the Department of Energy regarding spent nuclear fuel disposal, with a $0.5 million settlement for the disputed amount.
  • 4The company has identified no new material risks or changes to previously disclosed risk factors in this filing.
  • 5Disclosure controls and procedures are deemed effective by management.
  • 6There were no changes in internal controls over financial reporting during the quarter that materially affected them.
  • 7Minor share repurchases related to the 401k plan were made in June 2019.

Frequently Asked Questions

The Yankee Companies, including Eversource, received a favorable partial summary judgment of $103.2 million. An additional $0.5 million was received in July 2019 to settle the disputed portion of the claim. These amounts relate to the DOE's failure to accept spent nuclear fuel for disposal between 2013 and 2016.

No, Eversource's regulated utility operations have minimal direct exposure to commodity price risks. The economic impacts of energy contracts are typically passed through to customers, mitigating the risk of loss of future earnings or fair values due to market-sensitive instruments.

According to the filing, there have been no additional material legal proceedings, no new risk factors identified, and no material changes regarding previously disclosed risk factors in the 2018 Form 10-K.

Yes, management, including the principal executive and financial officers, has concluded that the disclosure controls and procedures are effective. Furthermore, there were no changes in internal controls over financial reporting during the quarter that materially affected them.