10-QPeriod: Q2 FY2024

EVERSOURCE ENERGY Quarterly Report for Q2 Ended Jun 30, 2024

Filed August 2, 2024For Securities:ES

Summary

Eversource Energy's (ES) recent 10-Q filing for the quarter ended June 30, 2024, indicates a stable operational and risk management environment, with no new material risks or significant changes identified since the 2023 Form 10-K. The company's regulated entities effectively pass through commodity price impacts to customers, mitigating direct earnings exposure. Interest rate risk is well-managed due to a predominantly fixed-rate debt structure, with all long-term debt at fixed rates as of the reporting period. Credit risk is actively managed across a diverse customer and supplier base, with established practices and monitoring in place. Collateral totaling $5.5 million was held from counterparties by regulated entities, and $14.5 million in cash was posted with ISO-NE. The company's internal controls and procedures remain effective, and no material changes impacting these controls were noted. Legal proceedings and risk factors remain consistent with prior disclosures.

Financial Highlights

47 data points
Beta

Revenue

$2.52B

Net Income

$337.22M

13.4% Net Margin

EPS (Diluted)

$0.95

Total Assets

$58.35B

Cash & Equivalents

$33.38M

Free Cash Flow

-$400.76M

Financial Statements
Beta
Revenue$2.52B
Operating Expenses$1.93B
Operating Income$602.50M
Interest Expense$271.30M
Net Income$337.22M
EPS (Basic)$0.95
EPS (Diluted)$0.95
Shares Outstanding (Basic)353.21M
Shares Outstanding (Diluted)353.42M

Key Highlights

  • 1Regulated companies' energy contracts insulate them from direct exposure to commodity price fluctuations, with economic impacts passed to customers.
  • 2Interest rate risk is significantly reduced as all of Eversource's long-term debt was at fixed rates as of June 30, 2024.
  • 3Credit risk is managed through diverse customer/supplier relationships and established risk practices, with collateral held by regulated entities totaling $5.5 million.
  • 4Disclosure controls and procedures for Eversource and its subsidiaries were found to be effective as of June 30, 2024.
  • 5No changes in internal controls over financial reporting have materially affected controls during the quarter.
  • 6No new material risk factors or legal proceedings have been identified since the 2023 10-K filing.
  • 7The company repurchased a small number of shares (6,664) in April and June 2024, primarily related to matching contributions for the 401k Plan.

Frequently Asked Questions

Eversource's regulated companies are largely insulated from commodity price volatility. The economic impacts of energy contracts entered into for customer service are passed directly to customers, meaning these regulated entities do not face direct exposure to losses in future earnings or fair values due to these market-sensitive instruments.

Eversource significantly mitigates interest rate risk by predominantly utilizing fixed-rate debt financings. As of June 30, 2024, all of the company's outstanding long-term debt was at a fixed interest rate, reducing sensitivity to changes in market interest rates.

Eversource manages credit risk, which stems from the risk of non-performance by counterparties, through a diverse customer and supplier mix and established risk management practices. Regulated companies monitor contracting risks and, as of June 30, 2024, held $5.5 million in collateral (letters of credit or cash) from counterparties for standard service contracts. Additionally, $14.5 million in cash was posted with ISO-NE related to energy transactions.

Based on this filing, there are no new material risk factors or legal proceedings identified. The company refers investors to its 2023 Form 10-K for a comprehensive list of risk factors and legal proceedings, stating that there have been no material changes or new issues since that filing.