UNITIL CORP
For the period ended Jun 30, 2025. Filed Aug 4, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 4, 2025
UTL$56.38-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-06.
0000950170-25-064590
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsConsolidated Statements of Earnings—Three Months Ended March 31, 2025 and 2024Consolidated Balance Sheets—March 31, 2025, March 31, 2024 and December 31, 2024Consolidated Statements of Cash Flows—Three Months Ended March 31, 2025 and 2024Consolidated Statements of Changes in Common Stock Equity – Three Months Ended March 31, 2025 and 2024Notes to Consolidated Financial StatementsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-04.
0000950170-25-102121
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsConsolidated Statements of Earnings—Three and Six Months Ended June 30, 2025 and 2024Consolidated Balance Sheets—June 30, 2025, June 30, 2024 and December 31, 2024Consolidated Statements of Cash Flows—Six Months Ended June 30, 2025 and 2024Consolidated Statements of Changes in Common Stock Equity – Three and Six Months Ended June 30, 2025 and 2024Notes to Consolidated Financial StatementsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 291 previous paragraphs and 309 current paragraphs.
176 unchanged; 108 reworded; 19 added; 2 removed; 5 previous and 6 current paragraphs rearranged.
Tables are not compared: 41 previous and 47 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
The Company’s Net Income was $31.5 million, or $1.94 in EPS for the first six months of 2025. Net income is unchanged and EPS decreased $0.02 when compared to the first six months of 2024. The Company's Adjusted Net Income (a non-GAAP financial measure), which excluded transaction-related costs in connection with the acquisitions of Bangor, Maine Natural Gas and the Aquarion Companies, was $33.1 million, or $2.03 in EPS for the first six months of 2025, an increase of $1.6 million, or $0.07 in EPS, compared to the first six months of 2024.
Current report
Electric Adjusted Gross Margin (a non-GAAP financial measure) was $25.8 million and $53.3 million for the three and six months ended June 30, 2025, respectively, increases of $0.9 million and $1.3 million, respectively, compared with the same periods in 2024. These increases reflect higher rates and customer growth.
Current report
On July 8, 2025, Bangor Natural Gas Company issued $14.0 million of Notes due 2030 at 5.70% and $18.0 million of notes due 2035 at 6.31%. Bangor used the net proceeds to refinance existing debt and for general corporate purposes.
Current report
On June 3, 2025, the Company entered into an at-the-market (ATM) equity offering program with Janney Montgomery Scott LLC and Scotia Capital (USA) Inc., under which the Company may, from time to time, offer and sell shares of Unitil's common stock having an aggregate offering price of up to $50 million. Sales of common stock under the ATM program, if any, are made pursuant to a shelf registration statement on Form S-3 (File No. 333-287753) and a related prospectus supplement filed with the Securities and Exchange Commission. As of June 30, 2025, the Company has sold an aggregate of 27,620 shares under the ATM program for net proceeds of $1.4 million. As of June 30, 2025, $48.5 million remains available for future sales under the program.
Current report
Goodwill - In January, the Company completed the acquisition of Bangor Natural Gas Company resulting in the recognition of $1.6 million of goodwill. Goodwill is not amortized but is subject to an assessment for impairment at least annually and more frequently if indicators of impairment arise that would more likely than not reduce the fair value of the Company's reporting units below their carrying amounts (see Acquisition of Bangor Natural Gas).
Current report
Goodwill represents the amount by which the purchase price exceeds the estimated fair value of the net assets acquired. The goodwill related to Bangor is partially tax deductible. The tax deductible portion of goodwill is $0.4 million and will be amortized over 15 years.
Current report
On July 8, 2025, Bangor Natural Gas Company issued $14.0 million of Notes due 2030 at 5.70% and $18.0 million of notes due 2035 at 6.31%. Bangor used the net proceeds to refinance existing debt and for general corporate purposes.
Current report
At-the-Market Equity Offering Program
Current report
On June 3, 2025, the Company entered into an at-the-market (ATM) equity offering program with Janney Montgomery Scott LLC and Scotia Capital (USA) Inc., under which the Company may, from time to time, offer and sell shares of its common stock having an aggregate offering price of up to $50 million. Sales of common stock under the ATM program are made pursuant to a shelf registration statement on Form S-3 (File No. File No. 333-287753) and a related prospectus supplement filed with the Securities and Exchange Commission.
Current report
During the three and six months ended June 30, 2025, the Company sold 27,620 shares of common stock under the ATM program at an average price of $53.00 per share, resulting in gross proceeds of $1.5 million and net proceeds of $1.4 million after deducting commissions and offering expenses. As of June 30, 2025, $48.5 million remains available for future sales under the program.
Current report
The Company intends to use the net proceeds from the ATM program for general corporate purposes, including capital contributions to the Company's utility subsidiaries, repayment of debt, acquisitions, capital expenditures and working capital, as described in the prospectus supplement relating to the ATM program.
Current report
Settlement Agreement, on July 29, 2025, Granite State filed a limited Section 4 rate adjustment for an annual revenue increase of $1.2 million, effective September 1, 2025. This matter remains pending.
Current report
Following the stakeholder process related to long term system planning, Fitchburg and other EDCs submitted a draft Long Term System Planning Proposal for MDPU review and approval. This matter remains pending.
Current report
Unitil Corporation – Merger of Maine Natural Gas Company - On May 9, 2025, Unitil, Northern Utilities, Bangor, Avangrid Enterprises, Inc. and Maine Natural Gas filed a Joint Petition requesting that the MPUC approve the merger of Maine Natural Gas into Unitil pursuant to a Stock Purchase Agreement among Avangrid and Unitil. A procedural schedule has been established which includes discovery, technical conferences, testimonies and briefs. To comply with the statutory timeframe of 180 days, deliberations are scheduled to be held no later than early November 2025. This matter remains pending.
Current report
On May 8, 2025, Eversource Energy (Eversource), the AWA, and Unitil submitted an amended and restated petition to the MDPU for approval of a change of control of Aquarion Water Company of Massachusetts, Inc. (AWC-MA). This matter remains pending.
Current report
On May 8, 2025, Unitil, Eversource, Aquarion Water Company of New Hampshire, Inc., (AWC-NH), Abenaki Water Company (Abenaki) and AWA filed a motion to amend the petition originally filed on April 10, 2025 by Eversource. AWC-NH, Abenaki and AWA, requesting that the NHPUC approve the acquisition of AWC-NH and Abenaki by Unitil. This matter remains pending.
Current report
On May 23, 2025, pursuant to 35-A M.R.S. § 708, Northern Utilities filed a request that the MPUC grant an exemption from approval of the reorganization that will be triggered by the anticipated acquisition by Unitil of the three water utilities in Massachusetts and New Hampshire. The MPUC has previously granted Maine public utilities exemptions from regulatory approval of reorganizations under circumstances similar to those presented in this case involving the acquisition of companies outside of Maine by a utility’s holding company parent that will have no direct financial or operational impact on the Maine utility. Based on MPUC precedent in similar reorganizations, Northern Utilities requested an exemption from Section 708 approval of Unitil’s acquisition of the Aquarion MA-NH Companies. In the alternative, if the MPUC declines to grant the requested exemption, then Northern Utilities requested that the MPUC approve the reorganization pursuant to Section 708. This matter remains pending.
Current report
Inquiry Into the Future of Gas - On May 13, 2025, the MPUC initiated an inquiry to explore the implications of Maine’s decarbonization goals for natural gas utilities and their customers and solicit information from stakeholders. Specifically, the MPUC opened the inquiry with the goal of 1) developing a consistent methodology or framework to incorporate and evaluate the GHG emissions impact in the MPUC’s decision-making around gas infrastructure investments and contractual commitments for supply or capacity needed to serve customers; 2) evaluating the consistency of these investments with state goals and 3) assisting in evaluation of a broader path for the future of natural gas in Maine. Initial comments on the scope of the inquiry were submitted on June 17, 2025. This matter is ongoing.
Current report
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted into law. The OBBBA provided permanent and limited modifications to many provisions that had expired or would soon expire as well as eliminating many green energy provisions. The Company does not expect that the OBBBA will have a material effect on the Company's Consolidated Financial Statements.
Removed paragraphs (2)
Previous report
Electric Adjusted Gross Margin (a non-GAAP financial measure) was $27.5 million in the first quarter of 2025, an increase of $0.4 million compared to the same period in 2024. This increase reflects higher rates and customer growth.
Previous report
March 31, 2025 related to these asset management agreements. The amount of natural gas inventory released in March 2025, which was payable in April 2025, was $0.6 million and was recorded in Accounts Payable at March 31, 2025.
Reworded paragraphs (108)
Previous wording
In addition, Unitil is the parent company of Granite State Gas Transmission, Inc. (Granite State), an interstate gas transmission pipeline company, operating 85 miles of underground gas transmission pipeline primarily located in Maine and New Hampshire. Granite State provides Northern Utilities with interconnection to major gas pipelines and access to domestic gas supplies in the south and Canadian gas supplies in the north.
Current wording
In addition, Unitil is the parent company of Granite State Gas Transmission, Inc. (Granite State), an interstate gas transmission pipeline company, operating 85 miles of underground gas transmission pipeline primarily located in Maine and New Hampshire.
Previous wording
Unitil had an investment in Net Utility Plant of $1,618.9 million at March 31, 2025. Earnings from Unitil’s utility operations are derived primarily from the return on investment in the utility assets of the four distribution utilities and Granite State. Unitil’s total operating revenue includes revenue to recover the approved cost of purchased electricity and gas in rates on a fully reconciling basis.
Current wording
Unitil had an investment in Net Utility Plant of $1,644.4 million at June 30, 2025. Earnings from Unitil’s utility operations are derived primarily from the return on investment in the utility assets of the four distribution utilities and Granite State. Unitil’s total operating revenue includes revenue to recover the approved cost of purchased electricity and gas in rates on a fully reconciling basis. As a result of this reconciling rate structure, the Company’s earnings are not directly affected by changes in the cost of purchased electricity and gas.
Previous wording
Unitil Resources is the Company’s wholly-owned, non-regulated subsidiary. The Company’s other subsidiaries include Unitil Service Corp., which provides, at cost, a variety of administrative and professional services to Unitil’s affiliated companies; Unitil Realty Corp., which owns and manages Unitil’s corporate office building and property located in Hampton, New Hampshire and owns land on which Unitil Energy’s Kingston solar project is located in Kingston, New Hampshire; and Unitil Power Corp., which formerly functioned as the full requirements wholesale power supply provider for Unitil Energy. Unitil’s consolidated net income includes the earnings of the holding company and these subsidiaries.
Current wording
Unitil Resources is the Company’s wholly-owned, non-regulated subsidiary. The Company’s other subsidiaries include Unitil Service Corp., which provides, at cost, a variety of administrative and professional services to Unitil’s affiliated companies; Unitil Realty Corp., which owns and manages Unitil’s corporate office building and property located in Hampton, New Hampshire and owns land in Kingston, New Hampshire, on which Unitil Energy’s solar facility is located, which became operational in May 2025; and Unitil Power Corp., which formerly functioned as the full requirements wholesale power supply provider for Unitil Energy. Unitil’s consolidated net income includes the earnings of the holding company and these subsidiaries.
Previous wording
The Company's earnings discussion includes Adjusted Net Income, a non-GAAP financial measure referencing the Company’s 2025 GAAP Net Income adjusted for certain transaction costs related to the Company's acquisitions of Bangor Natural Gas Company and Maine Natural Gas Company (Maine Natural). The Company's management believes that the transaction costs related to the acquisitions of Bangor and Maine Natural Gas, which are included in Operation and Maintenance expense on the Consolidated Statements of Earnings, are not indicative of the Company's ongoing costs and not directly related to the ongoing operations of the business and therefore are not an indicator of baseline operating performance.
Current wording
The Company's earnings discussion includes Adjusted Net Income, a non-GAAP financial measure referencing the Company’s 2025 GAAP Net Income adjusted for certain transaction costs related to the Company's acquisitions of Bangor Natural Gas Company, Maine Natural Gas Company (Maine Natural), Aquarion Water Company of Massachusetts, Inc., Aquarion Water Company of New Hampshire, Inc., and Abenaki Water Co., Inc. (the Aquarion Companies). The Company's management believes that the transaction costs related to the acquisitions of Bangor, Maine Natural and the Aquarion Companies, which are included in Operation and Maintenance expense on the Consolidated Statements of Earnings, are not indicative of the Company's ongoing costs and not directly related to the ongoing operations of the business and therefore are not an indicator of baseline operating performance.
Previous wording
Electric GAAP Gross Margin was $19.6 million in the three months ended March 31, 2025, a decrease of $0.5 million compared to the same period in 2024. The decrease was driven by higher depreciation and amortization expense of $0.9 million, partially offset by higher rates and customer growth of $0.4 million.
Current wording
Electric GAAP Gross Margin was $18.0 million in the three months ended June 30, 2025, an increase of $0.2 million compared to the same period in 2024. Electric GAAP Gross Margin was $37.6 million in the six months ended June 30, 2025, a decrease of $0.3 million compared to the same period in 2024. The three month period increase was driven by higher rates and customer growth of $0.9 million, partially offset by higher depreciation and amortization expense of $0.7 million. The six month period decrease was driven by higher depreciation and amortization expense of $1.6 million, partially offset by higher rates and customer growth of $1.3 million.
Previous wording
Gas GAAP Gross Margin was $57.1 million in the three months ended March 31, 2025, an increase of $6.9 million compared to the same period in 2024. The increase was driven by higher rates and customer growth of $7.7 million, the favorable effects of colder winter weather in 2025 of $2.2 million, partially offset by higher depreciation and amortization of $3.0 million. Included in gas operating revenue, cost of gas sales and depreciation and amortization for the three months ended March 31, 2025 is $8.6 million, $5.7 million and $0.5 million related to Bangor, respectively.
Current wording
Gas GAAP Gross Margin was $23.2 million in the three months ended June 30, 2025, an increase of $2.7 million compared to the same period in 2024. Gas GAAP Gross Margin was $80.3 million in the six months ended June 30, 2025, an increase of $9.7 million compared to the same period in 2024. The increase in the three month period was driven by higher rates and customer growth of $5.9 million, partially offset by higher depreciation and amortization of $3.2 million. The increase in the six month period was driven by higher rates and customer growth of $13.8 million, the favorable effects of colder winter weather in 2025 of $2.0 million, partially offset by higher depreciation and amortization of $6.1 million. Included in gas operating revenue, cost of gas sales and depreciation and amortization for the three months ended June 30, 2025 is $4.7 million, $1.7 million and $0.7 million related to Bangor, respectively. Included in gas operating revenue, cost of gas sales and depreciation and amortization for the six months ended June 30, 2025 is $13.3 million, $7.4 million and $1.3 million related to Bangor, respectively.
Previous wording
The Company’s Net Income was $27.5 million, or $1.69 in Earnings Per Share (EPS) for the first quarter of 2025, an increase of $0.3 million in Net Income, or $0.00 in EPS, compared to the first quarter of 2024. The Company's Adjusted Net Income (a non-GAAP financial measure), which excluded transaction-related costs in connection with the acquisition of Bangor and Maine Natural Gas, was $28.4 million, or $1.74 in EPS for the first quarter of 2025, an increase of $1.2 million, or $0.05 in EPS, compared to the first quarter of 2024.
Current wording
The Company’s Net Income was $4.0 million, or $0.25 in Earnings Per Share (EPS) for the second quarter of 2025, a decrease of $0.3 million in Net Income, or $0.02 in EPS, compared to the second quarter of 2024. The Company's Adjusted Net Income (a non-GAAP financial measure), which excluded transaction-related costs in connection with the acquisitions of Bangor, Maine Natural Gas and the Aquarion Companies, was $4.7 million, or $0.29 in EPS for the second quarter of 2025, an increase of $0.4 million, or $0.02 in EPS, compared to the second quarter of 2024.
Previous wording
Electric Adjusted Gross Margin (a non-GAAP financial measure) was $27.5 million for the three months ended March 31, 2025, an increase of $0.4 million, compared with the same period in 2024. This increase reflects higher rates and customer growth.
Current wording
Electric Adjusted Gross Margin (a non-GAAP financial measure) was $25.8 million and $53.3 million in the three and six months ended June 30, 2025, respectively, increases of $0.9 million and $1.3 million, respectively, compared to the same periods in 2024. This increase reflects higher rates and customer growth.
Previous wording
Gas Adjusted Gross Margin (a non-GAAP financial measure) was $70.9 million in the first quarter of 2025, an increase of $9.9 million compared to the same period in 2024, driven by higher rates and customer growth of $7.7 million and the favorable effects of colder winter weather in 2025 of $2.2 million. Included in the Gas Adjusted Gross Margin for the three months ended March 31, 2025 is $2.9 million related to Bangor.
Current wording
Gas Adjusted Gross Margin (a non-GAAP financial measure) was $37.2 million and $108.1 million in the three and six months ended June 30, 2025, respectively, increases of $5.9 million and $15.8 million, respectively, compared to the same periods in 2024. The increase in the three month period reflects higher rates and customer growth of $5.9 million. The increase in the six month period reflects higher rates and customer growth of $13.8 million and the favorable effects of colder winter weather of $2.0 million in 2025. Included in the Gas Adjusted Gross Margin for the three and six months ended June 30, 2025 is $3.0 million and $5.9 million, respectively, related to Bangor.
Previous wording
Operation and Maintenance (O&M) expenses increased $4.4 million in the three months ended March 31, 2025, compared to the same period in 2024. The increase reflects higher utility operating costs of $1.6 million, higher labor costs of $1.5 million and higher professional fees of $1.3 million. Included in O&M expense for the three months ended March 31, 2025 is $0.7 million related to Bangor O&M expenses and $1.2 million in acquisition transaction costs.
Current wording
Operation and Maintenance (O&M) expenses increased $2.7 million and $7.1 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The increase in the three month period reflects higher utility operating costs of $1.5 million, higher labor costs of $0.6 million and higher professional fees of $0.6 million. The increase in the six month period reflects higher utility operating costs of $3.1 million, higher labor costs of $2.1 million and higher professional fees of $1.9 million. Included in O&M expense for the three months and six months ended June 30, 2025 is $0.8 million and $1.7 million, respectively, related to Bangor O&M expenses and $1.0 million and $2.2 million, respectively, in acquisition transaction costs.
Previous wording
Depreciation and Amortization expense increased $3.7 million in the three months ended March 31, 2025, compared to the same period in 2024, reflecting higher depreciation rates from recent base rate cases, additional depreciation associated with higher levels of utility plant in service and higher amortization of recoverable storm costs and other deferred costs. Included in Depreciation and Amortization for the three months ended March 31, 2025 is $0.5 million related to Bangor.
Current wording
Depreciation and Amortization expense increased $3.7 million and $7.4 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024, reflecting higher depreciation rates from recent base rate cases, additional depreciation associated with higher levels of utility plant in service and higher amortization of recoverable storm costs and other deferred costs. Included in Depreciation and Amortization for the three months and six months ended June 30, 2025 is $0.7 million and $1.3 million, respectively, related to Bangor.
Previous wording
Taxes Other Than Income Taxes increased $0.2 million in the three months ended March 31, 2025, compared to the same period in 2024, reflecting $0.2 million in property taxes related to Bangor.
Current wording
Taxes Other Than Income Taxes decreased $0.5 million and $0.3 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024, primarily due to lower excise taxes.
Previous wording
Interest Expense, Net increased $1.8 million in the three months ended March 31, 2025, compared to the same period in 2024, primarily reflecting higher levels of long-term debt, higher interest expense on regulatory liabilities and lower interest income on AFUDC and other, partially offset by lower interest expense on short-term borrowings.
Current wording
Interest Expense, Net increased $1.9 million and $3.7 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024, primarily reflecting higher levels of long-term debt, higher interest expense on regulatory liabilities and lower interest income on AFUDC and other, partially offset by lower interest expense on short-term borrowings.
Previous wording
Other Expense (Income), Net decreased $0.2 million in the three months ended March 31, 2025, compared to the same period in 2024, reflecting lower retirement benefit costs.
Current wording
Other Expense (Income), Net decreased $0.8 million and $1.0 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024, reflecting lower retirement benefit costs.
Previous wording
Provision for Income Taxes increased in the three months ended March 31, 2025 compared with the same period in 2024, reflecting higher pre-tax earnings in 2025.
Current wording
Provision for Income Taxes increased $0.1 million and $0.2 million in the three and six months ended June 30, 2025, respectively, compared with the same periods in 2024. The increase in the six month period reflects higher pre-tax earnings in 2025.
Previous wording
Electric Operating Revenues and Electric Adjusted Gross Margin(a non-GAAP financial measure) - The following table details Total Electric Operating Revenues and Electric Adjusted Gross Margin for the three months ended March 31, 2025 and 2024:
Current wording
Electric Operating Revenues and Electric Adjusted Gross Margin (a non-GAAP financial measure) - The following table details Total Electric Operating Revenues and Electric Adjusted Gross Margin for the three and six months ended June 30, 2025 and 2024:
Previous wording
Total Electric Operating Revenue decreased $13.4 million, or 18.2%, in the three months ended March 31, 2025, compared to the same period in 2024, reflecting lower costs of electric sales, which are tracked and reconciled to costs that are passed through directly to customers, partially offset by higher electric distribution rates.
Current wording
Total Electric Operating Revenue decreased $5.4 million, or 9.6%, and $18.8 million, or 14.5% in the three months and six months ended June 30, 2025, respectively, compared to the same periods in 2024, reflecting lower costs of electric sales due to the increase in the amount of electricity purchased by customers directly from third-party suppliers, which are tracked and reconciled to costs that are passed through directly to customers, partially offset by higher electric distribution rates.
Previous wording
Kilowatt-hour Sales - Unitil’s total electric kWh sales increased 10.0% in the three month period ended March 31, 2025, compared to the same period in 2024. Sales to Residential increased 11.1% and sales to Commercial and Industrial (C&I) customers increased 3.7% in the three month period ended March 31, 2025, compared to the same period in 2024, reflecting colder winter weather for heating purposes in 2025 compared to 2024. As of March 31, 2025, the number of electric customers increased by approximately 970 over the previous year. Sales margins derived from decoupled unit sales are not sensitive to changes in electric kWh sales. Substantially all of the Company’s electric kWh sales volumes are decoupled.
Current wording
Kilowatt-hour Sales - Unitil’s total electric kWh sales decreased 4.4% and increased 1.6% in the three and six months ended June 30, 2025, compared to the same periods in 2024. Sales to Residential and Commercial and Industrial (C&I) customers decreased 1.3% and 6.4%, respectively, in the three months ended June 30, 2025, compared to the same period in 2024, reflecting lower average usage, partially offset by customer growth. Sales to Residential and C&I customers increased 5.6% and decreased 1.3%, respectively, in the six months ended June 30, 2025, compared to the same period in 2024, reflecting colder winter weather for heating purposes in 2025, and customer growth. As of June 30, 2025, the number of electric customers increased by approximately 730 over the previous year. Sales margins derived from decoupled unit sales are not sensitive to changes in electric kWh sales. Substantially all of the Company’s electric kWh sales volumes are decoupled.
Previous wording
The following table details total kWh sales for the three months ended March 31, 2025 and 2024 by major customer class:
Current wording
The following table details total kWh sales for the three and six months ended June 30, 2025 and 2024 by major customer class:
Previous wording
Gas Operating Revenues and Adjusted Gross Margin(a non-GAAP financial measure) - The following table details Total Gas Operating Revenues and Gas Adjusted Gross Margin for the three months ended March 31, 2025 and 2024:
Current wording
Gas Operating Revenues and Adjusted Gross Margin (a non-GAAP financial measure) - The following table details Total Gas Operating Revenues and Gas Adjusted Gross Margin for the three and six months ended June 30, 2025 and 2024:
Previous wording
The increase in Total Gas Operating Revenue of $5.5 million, or 5.2%, in the three months ended March 31, 2025, compared to the same period in 2024, includes $8.6 million gas operating revenue for Bangor, higher rates and customer growth and favorable impact of colder winter weather in 2025, partially offset by lower costs of gas sales, which are tracked and reconciled costs that are passed through directly to customers.
Current wording
Total Gas Operating Revenue increased $12.3 million, or 31.3%, and increased $17.8 million, or 12.3%, in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The increase in the three month period includes $4.7 million of gas operating revenue for Bangor, higher rates and customer growth, and higher costs of gas sales, which are tracked and reconciled costs that are passed through directly to customers. The increase in the six month period includes $13.3 million of gas operating revenue for Bangor, higher rates and customer growth, the favorable impact of colder winter weather in 2025 and higher costs of gas sales, which are tracked and reconciled costs that are passed through directly to customers.
Previous wording
Therm Sales- Unitil’s total gas therm sales increased 26.1% in the three month period ended March 31, 2025, compared to the same period in 2024. In the first quarter of 2025, sales to Residential and C&I customers increased 33.5% and 23.8%, respectively, compared to the same period in 2024, reflecting colder winter weather in 2025 compared to 2024 and customer growth. Included in the total gas therm sales increase is 10.4 million therms related to Bangor. Based on weather data collected in the Company’s gas service areas, on average there were 13.3% higher effective degree days in the first quarter of 2025 compared to the same period in 2024. The Company estimates weather-normalized gas therm sales for Northern Utilities' Maine division, the Company's largest non-decoupled gas service area, increased 2.4% in the first three months of 2025 compared to the same period in 2024. As of March 31, 2025, the number of gas customers increased by approximately 9,230 over the previous year. Included in this increase is 8,700 customers related to Bangor. Sales margins derived from decoupled unit sales (currently representing approximately 43% of total annual therm sales volume) are not sensitive to changes in gas therm sales, although those sales margins are sensitive to changes in the number of customers served.
Current wording
Therm Sales- Unitil’s total gas therm sales increased 19.1% and 23.7% in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. In the second quarter of 2025, sales to Residential and C&I customers increased 20.9% and 18.7%, respectively, compared to the same period in 2024, reflecting customer growth and colder spring weather in 2025. In the first six months of 2025, sales to Residential and C&I customers increased 29.9% and 22.0%, respectively, compared to the same period in 2025, reflecting colder winter weather in 2025 and customer growth. Included in the total gas therm sales increases is 8.6 million therms and 19.0 million therms, respectively, for three and six months ended June 30, 2025, related to Bangor. Based on weather data collected in the Company’s gas service areas, on average there were 10.7% higher effective degree days in the first six months of 2025 compared to the same period in 2024. The Company estimates weather-normalized gas therm sales for Northern Utilities' Maine division, the Company's largest non-decoupled gas service area, increased 3.0% in the first six months of 2025 compared to the same period in 2024. As of June 30, 2025, the number of gas customers increased by approximately 9,360 over the previous year. Included in this increase is 8,800 customers related to Bangor. Sales margins derived from decoupled unit sales (currently representing approximately 43% of total annual therm sales volume) are not sensitive to changes in gas therm sales, although those sales margins are sensitive to changes in the number of customers served.
Previous wording
The following table details total firm therm sales for the three months ended March 31, 2025 and 2024 by major customer class:
Current wording
The following table details total therm sales for the three and six months ended June 30, 2025 and 2024 by major customer class:
Previous wording
Cost of Electric Sales - Cost of Electric Sales includes the cost of electric supply and spending on energy efficiency programs. Cost of Electric Sales decreased $13.8 million, or 29.7%, in the three months ended March 31, 2025, compared to the same period in 2024. This decrease reflectsan increase in the amount of electricity purchased by customers directly from third-party suppliers, partially offset by higher wholesale electricity prices. Because the Company reconciles and recovers the approved Cost of Electric Sales in its rates at cost on a pass-through basis, changes in approved expenses do not affect earnings.
Current wording
Cost of Electric Sales - Cost of Electric Sales includes the cost of electric supply and spending on energy efficiency programs. Cost of Electric Sales decreased $6.3 million, or 20.0%, and $20.1 million, or 25.8%, respectively, in the three and six months ended June 30, 2025, compared to the same periods in 2024. This decrease reflects an increase in the amount of electricity purchased by customers directly from third-party suppliers, partially offset by higher wholesale electricity prices. Because the Company reconciles and recovers the approved Cost of Electric Sales in its rates at cost on a pass-through basis, changes in approved expenses do not affect earnings.
Previous wording
Cost of Gas Sales - Cost of Gas Sales includes the cost to supply the Company’s total gas requirements and spending on energy efficiency programs. Cost of Gas Sales decreased $4.4 million, or 10.0%, in the three months ended March 31, 2025, compared to the same period in 2024. This decrease reflects lower wholesale gas commodity prices partially offset by higher gas therm sales. Because the Company reconciles and recovers the approved Cost of Gas Sales in its rates at cost on a pass-through basis, changes in approved expenses do not affect earnings.
Current wording
Cost of Gas Sales - Cost of Gas Sales includes the cost to supply the Company’s total gas requirements and spending on energy efficiency programs. Cost of Gas Sales increased $6.4 million, or 80.0%, and $2.0 million, or 3.8%, in the three and six months ended June 30, 2025, compared to the same periods in 2024. This increase reflects higher wholesale gas commodity prices and higher gas therm sales. Because the Company reconciles and recovers the approved Cost of Gas Sales in its rates at cost on a pass-through basis, changes in approved expenses do not affect earnings.
Previous wording
Operation and Maintenance (O&M) -O&M expense includes electric and gas utility operating costs, and the operating cost of the Company’s corporate and other business activities. O&M expense increased $4.4 million, or 24.2%, in the three months ended March 31, 2025, compared to the same period in 2024. The increase reflects higher utility operating costs of $1.6 million, higher labor costs of $1.5 million and higher professional fees of $1.3 million. Included in O&M expense for the three months ended March 31, 2025 is $0.7 million related to Bangor O&M expenses and $1.2 million in acquisition transaction costs.
Current wording
Operation and Maintenance (O&M) -O&M expense includes electric and gas utility operating costs, and the operating cost of the Company’s corporate and other business activities. O&M expense increased $2.7 million, or 14.5%, and $7.1 million, or 19.3%, respectively, in the three and six months ended June 30, 2025, compared to the same periods in 2024. The increase in the three month period reflects higher utility operating costs of $1.5 million, higher labor costs of $0.6 million and higher professional fees of $0.6 million. The increase in the six month period reflects higher utility operating costs of $3.1 million, higher labor costs of $2.1 million and higher professional fees of $1.9 million. Included in O&M expense for the three months and six months ended June 30, 2025 is $0.8 million and $1.7 million, respectively, related to Bangor O&M expenses and $1.0 million and $2.2 million, respectively, in acquisition transaction costs.
Previous wording
Depreciation and Amortization - Depreciation and Amortization expense increased $3.7 million, or 20.6%, in the three months ended March 31, 2025, compared to the same period in 2024, reflecting higher depreciation rates from recent base rate cases, additional depreciation associated with higher levels of utility plant in service and higher amortization of recoverable storm costs and other deferred costs. Included in Depreciation and Amortization expense for the three months ended March 31, 2025 is $0.5 million related to Bangor.
Current wording
Depreciation and Amortization - Depreciation and Amortization expense increased $3.7 million, or 20.4%, and $7.4 million, or 20.5%, in the three and six months ended June 30, 2025, compared to the same periods in 2024, reflecting higher depreciation rates from recent base rate cases, additional depreciation associated with higher levels of utility plant in service and higher amortization of recoverable storm costs and other deferred costs. Included in Depreciation and Amortization expense for the three and six months ended June 30, 2025 is $0.7 million and $1.3 million, respectively, related to Bangor.
Previous wording
Taxes Other Than Income Taxes - Taxes Other Than Income Taxes increased $0.2 million, or 2.6%, in the three months ended March 31, 2025, compared to the same period in 2024, reflecting $0.2 million in property taxes related to Bangor.
Current wording
Taxes Other Than Income Taxes - Taxes Other Than Income Taxes decreased $0.5 million, or 7.0% and $0.3 million, or 2.0%, respectively, in the three and six months ended June 30, 2025, compared to the same periods in 2024, primarily due to lower excise taxes.
Previous wording
Other Expense (Income), Net -Other Expense (Income), Net decreased $0.2 million in the three months ended March 31, 2025, compared to the same period in 2024, reflecting lower retirement benefit costs.
Current wording
Other Expense (Income), Net -Other Expense (Income), Net decreased $0.8 million and $1.0 million, respectively, in the three and six months ended June 30, 2025, compared to the same periods in 2024, reflecting lower retirement benefit costs.
Previous wording
Provision for Income Taxes - Federal and State Income Taxes for the three months ended March 31, 2025 increased $0.1 million compared with the same period in 2024, reflecting higher pre-tax earnings in 2025.
Current wording
Provision for Income Taxes - Federal and State Income Taxes for the three and six months ended June 30, 2025 increased $0.1 million and $0.2 million, respectively, compared with the same periods in 2024. The increase in the six month period reflects higher pre-tax earnings in 2025.
Previous wording
Interest Expense, Net increased $1.8 million in the three months ended March 31, 2025, compared to the same period in 2024, primarily reflecting higher levels of long-term debt, higher interest expense on regulatory liabilities and lower interest income on AFUDC and other, partially offset by lower interest expense on short-term borrowings.
Current wording
Interest Expense, Net increased $1.9 million, or 25.7%, and $3.7 million, or 25.2%, in the three and six months ended June 30, 2025, compared to the same periods in 2024, primarily reflecting higher levels of long-term debt, higher interest expense on regulatory liabilities and lower interest income on AFUDC and other, partially offset by lower interest expense on short-term borrowings.
Previous wording
The Company utilizes the Credit Facility for cash management purposes related to its short-term operating activities. Total gross borrowings were $148.4 million for the three months ended March 31, 2025. Total gross repayments were $81.3 million for the three months ended March 31, 2025. The following table details the borrowing limits, amounts outstanding and amounts available under the Credit Facility as of March 31, 2025, March 31, 2024 and December 31, 2024:
Current wording
The Company utilizes the Credit Facility for cash management purposes related to its short-term operating activities. Total gross borrowings were $215.5 million for the six months ended June 30, 2025. Total gross repayments were $149.9 million for the six months ended June 30, 2025. The following table details the borrowing limits, amounts outstanding and amounts available under the Credit Facility as of June 30, 2025, June 30, 2024 and December 31, 2024:
Previous wording
Northern Utilities enters into asset management agreements under which Northern Utilities releases certain gas pipeline and storage assets, sells to an asset manager and subsequently repurchases the gas over the course of the gas heating season at the same price at which it sold the gas to the asset manager. There was $2.0 millionof natural gas storage inventory and corresponding obligations at
Current wording
Northern Utilities and Bangor enter into asset management agreements under which Northern Utilities and Bangor release certain gas pipeline and storage assets, sell to an asset manager and subsequently repurchase the gas over the course of the gas heating season at the same price at which they sold the gas to the asset manager. There was $8.7 million of natural gas storage inventory and corresponding obligations at June 30, 2025 related to these asset management agreements.
Previous wording
The preparation of the Company’s financial statements in conformity with generally accepted accounting principles in the United States of America requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In making those estimates and assumptions, the Company sometimes is required to make difficult, subjective and/or complex judgments about the effect of matters that are inherently uncertain and for which different estimates that could reasonably have been used could have resulted in material differences in its financial statements. If actual results were to differ significantly from those estimates, assumptions and judgment, the financial position of the Company could be materially affected and the results of operations of the Company could be materially different than reported. As of March 31, 2025, the Company’s critical accounting policies and estimates had not changed significantly from December 31, 2024. See Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” in the Company’s 2024 Annual Report on Form 10-K for additional information.
Current wording
The preparation of the Company’s financial statements in conformity with generally accepted accounting principles in the United States of America requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In making those estimates and assumptions, the Company sometimes is required to make difficult, subjective and/or complex judgments about the effect of matters that are inherently uncertain and for which different estimates that could reasonably have been used could have resulted in material differences in its financial statements. If actual results were to differ significantly from those estimates, assumptions and judgment, the financial position of the Company could be materially affected and the results of operations of the Company could be materially different than reported. As of June 30, 2025, the Company’s critical accounting policies and estimates had not changed significantly from December 31, 2024. See Part II, Item 7. “Management’s
Previous wording
As of March 31, 2025, the Company and its subsidiaries had 565 employees. The Company considers its relationship with employees to be good and has not experienced any major labor disruptions.
Current wording
As of June 30, 2025, the Company and its subsidiaries had 575 employees. The Company considers its relationship with employees to be good and has not experienced any major labor disruptions.
Previous wording
As of March 31, 2025, a total of 189 employees of certain of the Company’s subsidiaries were represented by labor unions. The following table details by subsidiary the employees covered by a collective bargaining agreement (CBA) as of March 31, 2025:
Current wording
As of June 30, 2025, a total of 187 employees of certain of the Company’s subsidiaries were represented by labor unions. The following table details by subsidiary the employees covered by a collective bargaining agreement (CBA) as of June 30, 2025:
Previous wording
Unitil meets its external financing needs by issuing short-term and long-term debt. The majority of debt outstanding represents long-term notes or bonds bearing fixed rates of interest. Changes in market interest rates do not affect interest expense resulting from these outstanding long-term debt securities. However, the Company periodically repays its short-term debt borrowings through the issuance of new long-term debt securities. Changes in market interest rates may affect the interest rate and corresponding interest expense on any new issuances of long-term debt securities. In addition, short-term debt borrowings bear a variable rate of interest. As a result, changes in short-term interest rates will increase or decrease interest expense in future periods. For example, if the average amount of short-term debt outstanding was $25 million for the period of one year, a change in interest rates of 1% would result in a change in annual interest expense of approximately $250,000. The average interest rates on the Company’s short-term borrowings and intercompany money pool transactions for the three months ended March 31, 2025 and March 31, 2024 were 5.6% and 6.7%, respectively. The average interest rate on the Company’s short-term borrowings for the twelve months ended December 31, 2024 was 6.5%.
Current wording
Unitil meets its external financing needs by issuing short-term and long-term debt. The majority of debt outstanding represents long-term notes or bonds bearing fixed rates of interest. Changes in market interest rates do not affect interest expense resulting from these outstanding long-term debt securities. However, the Company periodically repays its short-term debt borrowings through the issuance of new long-term debt securities. Changes in market interest rates may affect the interest rate and corresponding interest expense on any new issuances of long-term debt securities. In addition, short-term debt borrowings bear a variable rate of interest. As a result, changes in short-term interest rates will increase or decrease interest expense in future periods. For example, if the average amount of short-term debt outstanding was $25 million for the period of one year, a change in interest rates of 1% would result in a change in annual interest expense of approximately $250,000. The average interest rates on the Company’s short-term borrowings and intercompany money pool transactions for the three months ended June 30, 2025 and June 30, 2024 were 5.6% and 6.7%, respectively. The average interest rates on the Company’s short-term borrowings and intercompany money pool transactions for the six months ended June 30, 2025 and June 30, 2024 were 5.6% and 6.7%, respectively. The average interest rate on the Company’s short-term borrowings for the twelve months ended December 31, 2024 was 6.5%.
Previous wording
Unitil also hasthree other wholly-owned subsidiaries: Unitil Service, Unitil Resources and Unitil Realty. Unitil Service provides, at cost, a variety of administrative and professional services, including regulatory, financial, accounting, human resources, engineering, operations, technology, energy management and management services on a centralized basis to its affiliated Unitil companies. Unitil Resources is the Company’s wholly-owned non-regulated subsidiary, which currently does not have any activity. Unitil Realty owns and manages the Company’s corporate office in Hampton, New Hampshire and leases this facility to Unitil Service under a long-term lease arrangement. Unitil Realty also owns land on which Unitil Energy’s Kingston solar project is located in Kingston, New Hampshire.
Current wording
Unitil also hasthree other wholly-owned subsidiaries: Unitil Service, Unitil Resources and Unitil Realty. Unitil Service provides, at cost, a variety of administrative and professional services, including regulatory, financial, accounting, human resources, engineering, operations, technology, energy management and management services on a centralized basis to its affiliated Unitil companies. Unitil Resources is the Company’s wholly-owned non-regulated subsidiary, which currently does not have any activity. Unitil Realty owns and manages the Company’s corporate office in Hampton, New Hampshire and leases this facility to Unitil Service under a long-term lease arrangement. Unitil Realty also owns land in Kingston, New Hampshire, on which Unitil Energy’s solar facility is located, which became operational in May 2025.
Previous wording
Basis of Presentation - The accompanying unaudited consolidated financial statements of Unitil have been prepared in accordance with the instructions to Form 10-Q and include the information and footnotes required by generally accepted accounting principles. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. The results of operations for the three months ended March 31, 2025 are not necessarily indicative of results to be expected for the year ending December 31, 2025. For additional information, refer to Note 1 of Part II to the Consolidated Financial Statements – “Summary of Significant Accounting Policies” of the Company’s Form 10-K for the year ended December 31, 2024, as filed with the Securities and Exchange Commission (SEC) on February 10, 2025, for a description of the Company’s Basis of Presentation.
Current wording
Basis of Presentation - The accompanying unaudited consolidated financial statements of Unitil have been prepared in accordance with the instructions to Form 10-Q and include the information and footnotes required by generally accepted accounting principles. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. The results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of results to be expected for the year ending December 31, 2025. For additional information, refer to Note 1 of Part II to the Consolidated Financial Statements – “Summary of Significant Accounting Policies” of the Company’s Form 10-K for the year ended December 31, 2024, as filed with the Securities and Exchange Commission (SEC) on February 10, 2025, for a description of the Company’s Basis of Presentation.
Previous wording
Cash and Cash Equivalents - Cash and Cash Equivalents includes all cash and cash equivalents to which the Company has legal title. Cash equivalents include short-term investments with original maturities of three months or less and interest bearing deposits. The Company’s cash and cash equivalents are held at financial institutions and at times may exceed federally insured limits. The Company has not experienced any losses in such accounts. Under the Independent System Operator—New England (ISO-NE) Financial Assurance Policy (Policy), Unitil’s subsidiaries Unitil Energy, Fitchburg and Unitil Power are required to provide assurance of their ability to satisfy their obligations to ISO-NE. Under this Policy, Unitil’s subsidiaries provide cash deposits covering approximately 2-1/2 months of outstanding obligations, less credit amounts that are based on the Company’s credit rating. As of March 31, 2025, March 31, 2024 and December 31, 2024, the Unitil subsidiaries had deposited $6.6 million, $3.1 million and $5.0 million, respectively to satisfy their ISO-NE obligations.
Current wording
Cash and Cash Equivalents - Cash and Cash Equivalents includes all cash and cash equivalents to which the Company has legal title. Cash equivalents include short-term investments with original maturities of three months or less and interest bearing deposits. The Company’s cash and cash equivalents are held at financial institutions and at times may exceed federally insured limits. The Company has not experienced any losses in such accounts. Under the Independent System Operator—New England (ISO-NE) Financial Assurance Policy (Policy), Unitil’s subsidiaries Unitil Energy, Fitchburg and Unitil Power are required to provide assurance of their ability to satisfy their obligations to ISO-NE. Under this Policy, Unitil’s subsidiaries provide cash deposits covering approximately 2-1/2 months of outstanding obligations, less credit amounts that are based on the Company’s credit rating. As of June 30, 2025, June 30, 2024 and December 31, 2024, the Unitil subsidiaries had deposited $6.0 million, $2.3 million and $5.0 million, respectively to satisfy their ISO-NE obligations.
Showing the first 40 of 108 pairs. Open the source sections for the rest.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
Granite State provides Northern Utilities with interconnection to major gas pipelines and access to domestic gas supplies in the south and Canadian gas supplies in the north.
Current report — wording carried from elsewhere
Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” in the Company’s 2024 Annual Report on Form 10-K for additional information.
Current report — wording carried from elsewhere
1, 2024, the Company’s shareholders approved an amendment to the Stock Plan to, among other things, increase the maximum number of shares of common stock available for awards to plan participants.
Current report — wording carried from elsewhere
Unitil Corporation – Merger of Aquarion Water Companies - On May 6, 2025, Unitil announced that it has entered into a definitive agreement to acquire Aquarion Water Company of Massachusetts Inc., Aquarion Water Company of New Hampshire, Inc., and Abenaki Water Co., Inc. (the Aquarion Companies) from the Aquarion Water Authority (AWA).
Current report — wording carried from elsewhere
Section 83C of “An Act Relative to Green Communities,” St. 2008, c. 169, as amended by St. 2016, c. 188, § 12 (Section 83C) requires the EDCs to jointly and competitively solicit proposals for offshore wind energy generation not later than June 30, 2017. The
Current report — wording carried from elsewhere
Massachusetts utilities’ 2025-2027 three-year energy efficiency plan subject to certain modifications, including a $500 million reduction to the total residential sector budget.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
As a result of this reconciling rate structure, the Company’s earnings are not directly affected by changes in the cost of purchased electricity and gas.
Previous report — wording carried elsewhere
Massachusetts was conditioned upon Connecticut selecting the remaining 400 MW of its 1,200 MW project. Contract negotiations with the remaining two developers are scheduled to be completed by June 30, 2025.
Previous report — wording carried elsewhere
Prior to the end of the vesting period, the Time Restricted Shares are subject to forfeiture if the participant ceases to be employed by the Company other than due to the participant’s death, disability or retirement.
Previous report — wording carried elsewhere
Fitchburg- Approval of Gas Supply Agreement with Constellation LNG- On February 16, 2024, Fitchburg filed a petition with the MDPU for approval of a six year agreement with Constellation LNG for the purchase of natural gas in the liquid or vapor form for the period June 1, 2024 through May 31, 2030 heating seasons. This request is for the approval of two contracts, the first for up to
Previous report — wording carried elsewhere
Fitchburg’s Manufactured Gas Plant Site- Fitchburg has worked with the Massachusetts Department of Environmental Protection (Mass DEP) to address environmental concerns with the former MGP site at Sawyer Passway, and has substantially completed remediation activities, though on site monitoring continues. In April 2020, Fitchburg received notification from the Massachusetts Department of Transportation (Mass DOT) that a portion of the site may be incorporated into the proposed Twin City Rail Trail with an anticipated commencement date in April 2025. Depending upon the final agreement between Fitchburg and Mass DOT, additional minor costs are expected prior to completion.