10-QPeriod: Q1 FY2021

EVERSOURCE ENERGY Quarterly Report for Q1 Ended Mar 31, 2021

Filed May 10, 2021For Securities:ES

Summary

Eversource Energy's (ES) Q1 2021 10-Q filing indicates a stable operational and risk management framework, with no significant new market risks, legal proceedings, or changes in internal controls identified compared to its 2020 Form 10-K. The company's regulated subsidiaries manage commodity price risk by passing costs to customers, largely mitigating earnings exposure. Interest rate and credit risks are managed according to established policies, with limited collateral held for credit risk and no material changes to previously disclosed risk factors. Investors can note the company's continued adherence to strong internal controls and disclosure procedures, with management affirming their effectiveness. The filing also details a minor repurchase of common shares for 401k plan matching contributions during March 2021. Overall, this report suggests continuity in Eversource's risk management and financial reporting practices, providing a steady outlook for the period.

Financial Highlights

46 data points
Beta

Revenue

$2.77B

Net Income

$368.02M

13.3% Net Margin

EPS (Diluted)

$1.06

Total Assets

$46.52B

Cash & Equivalents

$34.11M

Free Cash Flow

-$277.57M

Financial Statements
Beta
Revenue$2.77B
Operating Expenses$2.24B
Operating Income$585.57M
Interest Expense$137.77M
Net Income$368.02M
EPS (Basic)$1.07
EPS (Diluted)$1.06
Shares Outstanding (Basic)343.68M
Shares Outstanding (Diluted)344.33M

Key Highlights

  • 1No new material market risks, legal proceedings, or risk factors identified compared to the 2020 10-K.
  • 2Regulated companies' commodity price risk is largely passed through to customers, minimizing earnings exposure.
  • 3Interest rate and credit risk management policies remain in place with no material changes.
  • 4Company's disclosure controls and procedures are deemed effective by management, ensuring timely and accurate reporting.
  • 5No changes to internal controls over financial reporting were identified during the quarter.
  • 6A small number of common shares (2,298) were purchased in March 2021 for 401k plan matching contributions.
  • 7Collateral of $15.0 million was held from counterparties for regulated companies' credit risk.

Frequently Asked Questions

Eversource's regulated companies enter into energy contracts to serve customers, and the economic impacts of these contracts are passed on to customers. Therefore, these regulated entities have no material exposure to loss of future earnings or fair values due to commodity price volatility.

No, the filing explicitly states that there have been no additional risk factors identified and no material changes with regard to previously disclosed risk factors, legal proceedings, or market risk management activities compared to the 2020 Form 10-K.

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

During the quarter ended March 31, 2021, Eversource made minor open market purchases of its common shares totaling 2,298 shares at an average price of $86.37. These purchases were specifically to match contributions under the Eversource 401k Plan.