10-QPeriod: Q3 FY2022

EVERSOURCE ENERGY Quarterly Report for Q3 Ended Sep 30, 2022

Filed November 4, 2022For Securities:ES

Summary

This 10-Q filing for Eversource Energy (ES) as of November 4, 2022, primarily focuses on market risk disclosures and internal control procedures, with limited new information since the 2021 10-K. The company's regulated entities effectively pass on commodity price risks to customers, thus eliminating direct earnings exposure. Interest rate and credit risks are managed through established policies, including maintaining a mix of fixed and variable debt and holding collateral from counterparties. Overall, the filing indicates a stable operational and risk management framework. Management has affirmed the effectiveness of disclosure controls and procedures, and no material changes to internal controls over financial reporting were noted during the quarter. Additionally, there were no significant new legal proceedings, risk factors, or material changes to previously disclosed information in these categories.

Financial Highlights

46 data points
Beta

Revenue

$3.26B

Net Income

$351.29M

10.8% Net Margin

EPS (Diluted)

$1.00

Total Assets

$51.60B

Cash & Equivalents

$485.70M

Free Cash Flow

$43.42M

Financial Statements
Beta
Revenue$3.26B
Operating Expenses$2.66B
Operating Income$557.29M
Interest Expense$178.17M
Net Income$351.29M
EPS (Basic)$1.01
EPS (Diluted)$1.00
Shares Outstanding (Basic)347.30M
Shares Outstanding (Diluted)347.76M

Key Highlights

  • 1Regulated companies of Eversource Energy pass on commodity price risks to customers, minimizing direct earnings exposure from energy contracts.
  • 2Interest rate risk is managed by maintaining a balanced mix of fixed and variable rate long-term debt.
  • 3Credit risk is managed through established practices, including monitoring counterparties and holding collateral (e.g., $75.4 million in letters of credit or cash as of September 30, 2022).
  • 4Management has concluded that disclosure controls and procedures are effective, ensuring timely and accurate reporting.
  • 5No material changes to internal controls over financial reporting were identified during the quarter ended September 30, 2022.
  • 6No new material legal proceedings or risk factors have been identified since the 2021 10-K filing.
  • 7The company made minimal open market purchases of common shares in September 2022 (2,430 shares) primarily related to 401k plan matching contributions.

Frequently Asked Questions

Eversource Energy's regulated companies manage commodity price risk by entering into energy contracts whose economic impacts are passed directly on to customers. This structure means the regulated companies have no exposure to loss of future earnings or fair values due to these market risk-sensitive instruments.

Interest rate risk is managed by maintaining a mix of fixed and variable rate long-term debt. Credit risk is managed through established policies and procedures, including monitoring counterparties, maintaining diverse customer and supplier bases, and holding collateral (such as letters of credit or cash) from counterparties.

According to the filing, there have been no additional risk factors identified and no material changes with regard to market risk, legal proceedings, or risk factors previously disclosed in Eversource's 2021 Form 10-K.

Management has evaluated the design and operation of disclosure controls and procedures and concluded they are effective in ensuring timely and accurate disclosure of required information. Furthermore, there have been no changes in internal controls over financial reporting that have materially affected them during the quarter.