8-KOther Events

EVERSOURCE ENERGY 8-K Report (Oct 11, 2001)

Filed October 11, 2001For Securities:ES

Summary

This 8-K filing from Northeast Utilities (NU), dated October 11, 2001, provides updated earnings guidance and outlines significant strategic investment plans for the future. For 2001, NU anticipates operating earnings to be at the lower end of its previously stated range ($1.35-$1.50 per share) due to a higher average share count. Looking ahead to 2002, the company projects operating earnings to be between $1.40 and $1.65 per share. These projections exclude nonrecurring items, such as the substantial gain recognized from the sale of the Millstone nuclear power station in early 2001. More broadly, NU is signaling substantial capital investments totaling hundreds of millions of dollars over the next five years, primarily focused on enhancing its electric transmission and natural gas distribution systems in Connecticut. This investment strategy aims to meet state energy demands, support earnings growth beyond 2002, and expand NU's competitive business activities. The company also indicated plans to continue increasing its common dividend, targeting an annual increase of approximately 10% and a future payout ratio of 50% of regulated earnings, alongside ongoing share repurchase programs, provided these actions are accretive to shareholders.

Key Highlights

  • 1Northeast Utilities (NU) projects 2002 operating earnings to be in the range of $1.40 to $1.65 per share.
  • 2For 2001, NU expects operating earnings to fall towards the lower end of its previously announced $1.35 to $1.50 per share range.
  • 3The company plans significant capital investments of hundreds of millions of dollars over the next five years in Connecticut's electric transmission and natural gas distribution infrastructure.
  • 4NU anticipates its net plant investment to increase by approximately 75% by the end of 2006, reaching about $5.4 billion.
  • 5The company intends to continue increasing its common dividend, targeting a 10% annual increase in the near term and eventually a 50% payout ratio of regulated earnings.
  • 6NU plans to continue its common share repurchase program, subject to it being accretive to shareholders, and has authorization for up to 15 million shares until July 2003.
  • 7The company's strategic growth involves expanding energy choices and services within Connecticut and other parts of the Northeast.

Frequently Asked Questions

Northeast Utilities (NU) anticipates its 2001 operating earnings to be at the lower end of its previously guided range of $1.35 to $1.50 per share, primarily due to a higher average share count. For 2002, NU projects operating earnings to fall between $1.40 and $1.65 per share. These figures exclude significant nonrecurring gains or charges.

NU plans to make substantial capital investments, in the hundreds of millions of dollars, over the next five years to upgrade its electric transmission and natural gas distribution systems in Connecticut. This is aimed at meeting energy needs, supporting future earnings growth, and expanding its competitive energy businesses.

NU plans to continue increasing its common dividend, targeting an annual increase of about 10% in the near term and aiming for a payout ratio of 50% of its regulated earnings over time. The company also intends to continue repurchasing its common shares as long as the program is accretive to shareholders, with an ongoing authorization of up to 15 million shares until July 2003.

The planned capital investments are substantial, with NU projecting its net plant investment to increase by approximately 75% from its current level of about $3.6 billion to roughly $5.4 billion by the end of 2006.