Summary
This 10-Q filing for Eversource Energy (ES) for the period ending March 31, 2022, provides an update on market risk management, internal controls, and legal proceedings. A key takeaway for investors is that the company's regulated entities have minimal direct exposure to commodity price fluctuations as these costs are passed through to customers. The company actively manages interest rate and credit risks through established policies and collateralization where necessary. Management has concluded that disclosure controls and procedures remain effective, and there have been no significant changes in internal controls over financial reporting during the quarter.
Financial Highlights
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Financial Statements
Beta
| Revenue | $3.45B |
| Operating Expenses | $2.81B |
| Operating Income | $663.05M |
| Interest Expense | $153.25M |
| Net Income | $445.33M |
| EPS (Basic) | $1.28 |
| EPS (Diluted) | $1.28 |
| Shares Outstanding (Basic) | 345.16M |
| Shares Outstanding (Diluted) | 345.66M |
Key Highlights
- 1Eversource's regulated companies are largely insulated from commodity price risk, as the economic impacts of energy contracts are passed through to customers.
- 2The company actively manages interest rate risk by maintaining a mix of fixed and variable rate long-term debt.
- 3Credit risk is managed through diverse customer and supplier relationships, with collateral held for certain long-term or high-volume contracts.
- 4As of March 31, 2022, regulated companies held $92.7 million in collateral from counterparties and $34.6 million in cash posted with ISO-NE.
- 5Management has assessed and affirmed the effectiveness of disclosure controls and procedures.
- 6There have been no changes in internal controls over financial reporting during the quarter that materially affect them.
- 7No new material legal proceedings or risk factors have been identified since the last 10-K filing.
Frequently Asked Questions
Eversource's regulated companies are able to pass on the economic impacts of energy contracts to their customers. This structure means the regulated entities themselves do not face direct exposure to losses in future earnings or fair values due to these market risk-sensitive instruments.
The company manages its exposure to interest rate risk by maintaining a balanced mix of both fixed and variable rate long-term debt, in accordance with its written policies and procedures.
No. The filing states that there have been no additional risk factors identified and no material changes with regard to risk factors previously disclosed in the 2021 Form 10-K. Similarly, there have been no material legal proceedings identified and no material changes regarding previously disclosed legal proceedings.
Management has evaluated the disclosure controls and procedures for Eversource and its subsidiaries (CL&P, NSTAR Electric, PSNH) as of March 31, 2022, and concluded that they are effective in ensuring timely and accurate disclosure of required information. There were no changes in internal controls over financial reporting during the quarter that materially affected them.