10-QPeriod: Q2 FY2023

EVERSOURCE ENERGY Quarterly Report for Q2 Ended Jun 30, 2023

Filed August 4, 2023For Securities:ES

Summary

Eversource Energy's (ES) third-quarter 10-Q filing indicates a stable operational and risk management framework, with no material changes reported compared to the previous year's 10-K. The company's regulated entities effectively pass commodity price risks onto customers, mitigating direct exposure. Interest rate and credit risks are managed through established policies, including maintaining a mix of debt types and actively monitoring counterparties. Collateral of $27.0 million is held from counterparties by regulated entities, and $21.8 million in cash is posted with ISO-NE for energy transactions as of June 30, 2023, underscoring a proactive approach to credit risk mitigation. Internal controls over financial reporting remain effective, with no changes materially affecting them during the quarter. The company also disclosed modest share repurchases related to its 401k plan, totaling 2,983 shares at an average price of $70.70 during the reporting period. Overall, the filing suggests continuity in financial management and risk oversight.

Financial Highlights

46 data points
Beta

Revenue

$2.63B

Net Income

$15.42M

0.6% Net Margin

EPS (Diluted)

$0.04

Total Assets

$54.54B

Cash & Equivalents

$42.18M

Free Cash Flow

-$484.25M

Financial Statements
Beta
Revenue$2.63B
Operating Expenses$2.07B
Operating Income$560.66M
Interest Expense$207.30M
Net Income$15.42M
EPS (Basic)$0.04
EPS (Diluted)$0.04
Shares Outstanding (Basic)349.46M
Shares Outstanding (Diluted)349.73M

Key Highlights

  • 1Regulated entities have no direct exposure to commodity price fluctuations as these costs are passed on to customers.
  • 2Interest rate risk is managed by maintaining a mix of fixed and variable rate long-term debt.
  • 3Credit risk is managed through diverse customer/supplier relationships and monitoring contracting risks, with $27.0 million in collateral held from counterparties by regulated entities as of June 30, 2023.
  • 4Disclosure controls and procedures for Eversource and its subsidiaries (CL&P, NSTAR Electric, PSNH) were deemed effective as of June 30, 2023.
  • 5No material changes in internal controls over financial reporting were noted during the quarter.
  • 6Eversource made open market purchases of 2,983 common shares for its 401k plan matching contributions, averaging $70.70 per share, during the quarter.
  • 7No new material legal proceedings or risk factors have been identified; disclosures from the 2022 10-K remain relevant.

Frequently Asked Questions

Eversource's regulated companies enter into energy contracts to serve customers, and the economic impacts of these contracts are passed directly to customers. This structure means the regulated companies themselves are not exposed to losses in 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, in line with written policies. Credit risk is managed by serving a diverse range of customers and transacting with various suppliers, and by actively monitoring contracting risks. As of June 30, 2023, regulated entities held $27.0 million in collateral from counterparties, and Eversource had $21.8 million in cash posted with ISO-NE for energy transactions.

No. The filing states that there have been no material legal proceedings identified and no material changes regarding previously disclosed legal proceedings or risk factors from the 2022 Form 10-K.

Eversource purchased a total of 2,983 common shares for its 401k plan matching contributions during the quarter ended June 30, 2023, at an average price of $70.70 per share. These were open market purchases.