10-QPeriod: Q1 FY2024

EVERSOURCE ENERGY Quarterly Report for Q1 Ended Mar 31, 2024

Filed May 3, 2024For Securities:ES

Summary

Eversource Energy's (ES) Form 10-Q for the quarter ended March 31, 2024, indicates a stable operational and risk management framework, with no material changes to previously disclosed risks or legal proceedings. The company's regulated entities have effectively passed on commodity price risks to customers, eliminating exposure to losses from these contracts. Furthermore, Eversource's debt is entirely fixed-rate, significantly mitigating interest rate risk. The company also actively manages credit risk through collateral and monitoring of counterparties. The disclosures confirm the effectiveness of internal controls and procedures, with no changes impacting financial reporting. Investors can find comfort in the consistent approach to risk management and the absence of new material risks or significant legal challenges. The filing also notes minor share repurchases related to employee 401k plans.

Financial Statements
Beta
Revenue$3.28B
Operating Expenses$2.49B
Operating Income$845.97M
Interest Expense$250.75M
Net Income$523.73M
EPS (Basic)$1.49
EPS (Diluted)$1.49
Shares Outstanding (Basic)350.72M
Shares Outstanding (Diluted)351.00M

Key Highlights

  • 1No new material risks or changes to previously disclosed risk factors identified in the 10-K.
  • 2Regulated companies have no exposure to commodity price risk as impacts are passed to customers.
  • 3Interest rate risk is significantly reduced with all long-term debt at fixed rates as of March 31, 2024.
  • 4Credit risk is actively managed through collateral ( $10.0 million from counterparties) and monitoring.
  • 5Disclosure controls and procedures are deemed effective by management, with no material changes to internal controls over financial reporting.
  • 6No material legal proceedings have been identified or changed from previous disclosures.
  • 7Minor share repurchases (1,039 shares) occurred in March 2024, related to 401k plan contributions.

Frequently Asked Questions

Eversource's regulated companies have no exposure to losses from commodity price risk. The economic impacts of energy contracts entered into to serve customers are passed on to those customers.

Interest rate risk is significantly reduced because virtually all of Eversource's debt financings have fixed interest rates. As of March 31, 2024, all of its long-term debt was at a fixed interest rate.

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 2023 Form 10-K. Similarly, there have been no material legal proceedings identified or changes from previous disclosures.

The filing indicates a minor repurchase of 1,039 shares in March 2024 at an average price of $58.95. This activity was related to matching contributions under the Eversource 401k Plan.