10-QPeriod: Q3 FY2023

EVERSOURCE ENERGY Quarterly Report for Q3 Ended Sep 30, 2023

Filed November 7, 2023For Securities:ES

Summary

This 10-Q filing for EVERSOURCE ENERGY (ES), filed on November 7, 2023, focuses on market risk, controls and procedures, and other informational items. A key takeaway is that the company's regulated subsidiaries have effectively hedged commodity price risk, with economic impacts passed on to customers, thus mitigating direct earnings exposure. Interest rate and credit risks are managed through established policies, including maintaining a mix of fixed and variable rate debt and monitoring counterparty risk. Collateral and cash postings are utilized to manage credit exposure with energy marketing companies. Regarding internal controls, management has concluded that disclosure controls and procedures, as well as internal controls over financial reporting, are effective for Eversource and its subsidiaries (CL&P, NSTAR Electric, PSNH). No material changes affecting these controls were noted during the quarter. The report also notes the incorporation by reference of previous disclosures regarding legal proceedings, risk factors, and market risk from the 2022 Form 10-K, indicating no significant new material developments in these areas during the current quarter.

Financial Highlights

46 data points
Beta

Revenue

$2.83B

Net Income

$339.66M

12.0% Net Margin

EPS (Diluted)

$0.97

Total Assets

$56.29B

Cash & Equivalents

$78.81M

Free Cash Flow

-$564.23M

Financial Statements
Beta
Revenue$2.83B
Operating Expenses$2.26B
Operating Income$530.55M
Interest Expense$222.30M
Net Income$339.66M
EPS (Basic)$0.97
EPS (Diluted)$0.97
Shares Outstanding (Basic)349.70M
Shares Outstanding (Diluted)349.85M

Key Highlights

  • 1Regulated subsidiaries' commodity price risk is passed through to customers, minimizing direct earnings exposure from energy contracts.
  • 2Interest rate risk is managed by maintaining a balance of fixed and variable rate long-term debt.
  • 3Credit risk is actively managed through diverse customer/supplier relationships, monitoring, and collateral arrangements (e.g., $32.0 million in collateral from counterparties as of September 30, 2023).
  • 4No new material risk factors or legal proceedings have been identified; prior disclosures from the 2022 10-K remain relevant.
  • 5Management has affirmed the effectiveness of disclosure controls and procedures for Eversource and its subsidiaries.
  • 6No material changes to internal controls over financial reporting were observed during the quarter ended September 30, 2023.
  • 7The company repurchased 3,239 shares in September 2023, primarily related to 401k plan matching contributions.

Frequently Asked Questions

Eversource's regulated companies enter into energy contracts to serve customers, and the associated economic impacts are passed directly to customers. This mechanism means the regulated companies themselves do not bear the risk of earnings loss or fair value changes due to these energy contracts.

Eversource manages its exposure to interest rate fluctuations by maintaining a balanced mix of fixed and variable rate long-term debt, in line with its written policies and procedures.

No, the filing indicates that no additional material risk factors have been identified and no material changes have occurred regarding legal proceedings or previously disclosed risk factors. These are incorporated by reference from the 2022 Form 10-K.

Management has evaluated the disclosure controls and procedures and internal controls over financial reporting for Eversource and its subsidiaries (CL&P, NSTAR Electric, PSNH). They concluded that these controls are effective in ensuring timely and accurate disclosure of required financial information. No material changes affecting these controls were noted during the quarter ended September 30, 2023.