01—Abstract
Summary
Summary of the 8-K filed November 8, 2024. Cited figures are marked; the original filing is the authoritative source.
Eversource Energy (NYSE: ES) furnished this Form 8-K on November 8, 2024 under Regulation FD (Item 7.01), attaching slides (Exhibit 99.1) for its presentation at the Edison Electric Institute Financial Conference, held November 10-12, 2024.
The filing itself contains no new financial results, guidance changes, or material events; its substance lies in the investor deck. The deck reinforces management's positioning of Eversource as a pure-play regulated utility following the completion of its exit from offshore wind in Q3 2024, a transition it describes as making the company 100% regulated. The key financial messages are: updated FY 2024 non-GAAP EPS guidance of $4.52 to $4.60a, reaffirmed long-term EPS and dividend growth of 5% to 7%, and a five-year capital plan increased to $23.7 billion for 2024-2028 (up from $23.1 billion), including $600 million of incremental Massachusetts ESMP investment.
Year-to-date through Q3 2024, non-GAAP EPS was $3.56b versus $3.38 in 2023, while GAAP EPS fell to $2.08 from $2.42 due to offshore wind losses and other charges. Management is targeting FFO-to-debt of 14% to 15% by 2025, supported by identified cash flow enhancements of roughly $3.75 billion, including the GIP and Orsted sale proceeds, rate increases, and equity issuances.
Investors should note several upcoming catalysts: a Connecticut AMI cost recovery decision expected November 20, 2024; a Yankee Gas rate case filing expected in the first half of November 2024; a New Hampshire rate review with a final decision expected in 2025; and a planned update of the five-year capital plan through 2029 at year-end 2024 earnings. The presentation also notes risk factors and non-GAAP reconciliation disclosures, and the slides are not deemed filed for Securities Act purposes.
02—Key points
Key Highlights
- Updated FY 2024 non-GAAP EPS guidance of $4.52 to $4.60; long-term EPS and dividend growth target of 5% to 7% reaffirmed
- Five-year (2024-2028) capital plan increased to $23.7 billion from $23.1 billion, including $600 million of incremental Massachusetts ESMP investment
- Offshore wind exit completed in Q3 2024, transitioning Eversource to a 100% regulated utility
- 9M 2024 non-GAAP EPS of $3.56 vs. $3.38 in 2023; GAAP EPS of $2.08 vs. $2.42, reflecting offshore wind losses and other charges
- Targeted FFO-to-debt of 14% to 15% by 2025, supported by ~$3.75 billion in identified cash flow enhancements (including GIP and Orsted sale proceeds and rate increases)
- Upcoming catalysts: Connecticut AMI cost recovery decision (expected November 20, 2024), Yankee Gas rate case filing (1H November 2024), and a 5-year capital plan update through 2029 at year-end 2024 earnings
- Equity and debt activity: ~15.7 million shares issued under the ATM program year-to-date (net proceeds ~$990 million), and $900 million of parent debt issued in June 2024 at 4.20%
03—Questions
Frequently Asked Questions
Did Eversource change its financial guidance in this filing?
The 8-K itself does not report new results. The attached presentation states updated FY 2024 non-GAAP EPS guidance of $4.52 to $4.60 and reaffirms long-term EPS growth of 5% to 7%. Investors should compare this against prior guidance in earlier filings to assess the magnitude of any change.
Why did GAAP EPS decline while non-GAAP EPS rose?
Non-GAAP EPS excludes losses on offshore wind investments, a loss on disposition of abandoned Northern Pass land, and certain transaction and transition costs. Through 9M 2024, these excluded items reduced GAAP EPS by $1.48, resulting in GAAP EPS of $2.08 versus non-GAAP EPS of $3.56. Management argues these charges are not indicative of ongoing operations, though investors may wish to weigh the recurring nature of such items.
What are the main risks to the capital plan and cash flow targets?
Key risks include regulatory decisions (such as the Connecticut AMI cost recovery ruling and New Hampshire rate review), variability in the final purchase price of the offshore wind sale, the ability to qualify for tax credits, capital market access and cost, and changes in interest rates and customer demand. The company also notes that the 2025 FFO-to-debt target depends on several sale proceeds and rate increases that are not yet fully realized.
How is Eversource financing its growing capital program?
The company is relying on a mix of debt, ATM equity issuance, and asset sale proceeds. The deck cites $900 million of parent debt issued in June 2024 and $450 million in October 2024, approximately $990 million of net ATM equity proceeds year-to-date, and about $1 billion from the GIP sale. It also lists scheduled parent maturities, including $300 million due January 2025 and $300 million due August 2025.
04—Continue