UNITIL CORP

Previous wording

Unitil Energy, Fitchburg, Northern Utilities, and Bangor are collectively referred to as the “distribution utilities.” Together, the distribution utilities serve approximately 109,400 electric customers and 97,600 gas customers. Included in gas customers are 8,500 customers related to the acquisition of Bangor.

Current wording

Unitil Energy, Fitchburg, Northern Utilities, and Bangor are collectively referred to as the “distribution utilities.” Together, the distribution utilities serve approximately 109,400 electric customers and 97,600 gas customers, including 8,500 gas customers related to the acquisition of Bangor.

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.

Current wording

Unitil also 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.

Previous 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.

Current wording

At September 30, 2025, Unitil had an investment in Net Utility Plant of $1.7 billion. 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 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.

Current wording

Unitil Resources is the Company’s wholly owned, non-regulated subsidiary, which currently does not have any activity. 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; Unitil Power Corp., which formerly functioned as the full requirements wholesale power supply provider for Unitil Energy; and Unitil Water Corp., which currently does not have any activity. Unitil’s consolidated net income includes the earnings of the holding company and these subsidiaries.

Previous wording

Unitil is subject to comprehensive regulation by federal and state regulatory authorities. Unitil and its subsidiaries are subject to regulation as a holding company system by the FERC under the Energy Policy Act of 2005 with regard to certain bookkeeping, accounting and reporting requirements. Unitil’s utility operations related to wholesale and interstate energy business activities are also regulated by the FERC. Unitil’s distribution utilities are subject to regulation by the applicable state public utility commissions with regard to their rates, issuance of securities and other accounting and operational matters: Unitil Energy is subject to regulation by the New Hampshire Public Utilities Commission (NHPUC); Fitchburg is subject to regulation by the Massachusetts Department of Public Utilities (MDPU); Northern Utilities is regulated by the NHPUC and the Maine Public Utilities Commission (MPUC); and Bangor is subject to regulation by the MPUC. Granite State, Unitil’s interstate gas transmission pipeline, is subject to regulation by FERC with regard to its rates and operations. Because Unitil’s primary operations are subject to rate regulation, the regulatory treatment of various matters could significantly affect the Company’s operations and financial position.

Current wording

Unitil is subject to comprehensive regulation by federal and state regulatory authorities. Unitil and its subsidiaries are subject to regulation as a holding company system by the FERC under the Energy Policy Act of 2005 regarding certain bookkeeping, accounting and reporting requirements. Unitil’s utility operations related to wholesale and interstate energy business activities also are regulated by the FERC. Unitil’s distribution utilities are subject to regulation by the applicable state public utility commissions with regard to their rates, issuance of securities and other accounting and operational matters: Unitil Energy is subject to regulation by the New Hampshire Public Utilities Commission (NHPUC); Fitchburg is subject to regulation by the Massachusetts Department of Public Utilities (MDPU); Northern Utilities is regulated by the NHPUC and the Maine Public Utilities Commission (MPUC); and Bangor is subject to regulation by the MPUC. Granite State, Unitil’s interstate gas transmission pipeline, is subject to regulation by FERC regarding its rates and operations. Because Unitil’s primary operations are subject to rate regulation, the regulatory treatment of various matters could significantly affect the Company’s operations and financial position.

Previous wording

The Company's electric and gas sales in Massachusetts and New Hampshire are now largely decoupled. Revenue decoupling is the term given to the elimination of the dependency of a utility’s distribution revenue on the volume of electricity or gas sales. The difference between distribution revenue amounts billed to customers and the targeted revenue decoupling amounts is recognized as an increase or a decrease in Accrued Revenue, which forms the basis for resetting rates for future cash recoveries from, or credits to, customers. These revenue decoupling targets may be adjusted as a result of rate cases and other authorized adjustments that the Company files with the MDPU and NHPUC.

Current wording

The Company's electric and gas sales in Massachusetts and New Hampshire are now largely decoupled. Revenue decoupling eliminates the dependency of distribution revenue on the volume of electricity or gas sold. The difference between distribution revenue amounts billed to customers and the targeted revenue decoupling amounts is recognized as an increase or a decrease in Accrued Revenue, which forms the basis for resetting rates for future cash recoveries from, or credits to, customers. These revenue decoupling targets may be adjusted as a result of rate cases and other authorized adjustments that the Company files with the MDPU and NHPUC.

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, 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.

Current wording

The Company's earnings discussion includes Adjusted Net Income, a non-GAAP financial measure referencing the Company’s 2025 and 2024 GAAP Net Income adjusted for certain transaction costs related to the Company's acquisitions of Bangor Natural Gas Company (purchase completed as of January 31, 2025), Maine Natural Gas Company (Maine Natural) (purchase completed as of October 31, 2025), Aquarion Water Company of Massachusetts, Inc., Aquarion Water Company of New Hampshire, Inc., and Abenaki Water Co., Inc. (the Aquarion Companies) (purchase pending regulatory approval). 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 $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.

Current wording

Electric GAAP Gross Margin was $25.1 million in the three months ended September 30, 2025, an increase of $2.8 million compared to the same period in 2024. Electric GAAP Gross Margin was $62.7 million in the nine months ended September 30, 2025, an increase of $2.5 million compared to the same period in 2024. The three month period increase was driven by higher rates and customer growth of $3.4 million, partially offset by higher depreciation and amortization expense of $0.6 million. The nine month period increase was driven by higher rates and customer growth of $4.7 million, partially offset by higher depreciation and amortization expense of $2.2 million.

Previous 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.

Current wording

Gas GAAP Gross Margin was $12.4 million in the three months ended September 30, 2025, an increase of $0.6 million compared to the same period in 2024. Gas GAAP Gross Margin was $92.7 million in the nine months ended September 30, 2025, an increase of $10.3 million compared to the same period in 2024. The increase in the three month period was driven by higher rates and customer growth of $3.3 million, partially offset by higher depreciation and amortization of $2.7 million. The increase in the nine month period was driven by higher rates and customer growth of $17.1 million, the favorable effects of colder winter weather in 2025 of $2.0 million, partially offset by higher depreciation and amortization of $8.8 million. Included in gas operating revenue, cost of gas sales and depreciation and amortization for the three months ended September 30, 2025 is $3.3 million, $1.8 million and $0.7 million related to Bangor, respectively. Included in gas operating revenue, cost of gas sales and depreciation and amortization for the nine months ended September 30, 2025 are $16.6 million, $9.2 million and $2.0 million related to Bangor, respectively.

Previous 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.

Current wording

The Company’s Net Income (Loss) was ($0.3) million, or ($0.02) in Earnings Per Share (EPS), for the third quarter of 2025, a decrease of $0.3 million in Net Income, or $0.02 in EPS, compared to the third quarter of 2024. The Company's Adjusted Net Income (a non-GAAP financial measure) for the third quarter of 2025, which excluded transaction-related costs in connection with the acquisitions of Bangor, Maine Natural and the Aquarion Companies, was $0.4 million, which was unchanged from the third quarter of 2024, or $0.03 in EPS, an increase of $0.01 in EPS, compared to the third quarter of 2024.

Previous wording

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 wording

The Company’s Net Income was $31.2 million, or $1.89 in EPS, for the first nine months of 2025, a decrease of $0.3 million in Net Income, or $0.07 in EPS, compared to the first nine 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 and the Aquarion Companies, was $33.5 million, or $2.03 in EPS, for the first nine months of 2025, an increase of $1.4 million, or $0.03 in EPS, compared to the first nine months of 2024.

Previous 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.

Current wording

Electric Adjusted Gross Margin (a non-GAAP financial measure) was $33.1 million and $86.4 million in the three and nine months ended September 30, 2025, respectively, increases of $3.4 million and $4.7 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 $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.

Current wording

Gas Adjusted Gross Margin (a non-GAAP financial measure) was $26.6 million and $134.7 million in the three and nine months ended September 30, 2025, respectively, increases of $3.3 million and $19.1 million, respectively, compared to the same periods in 2024. The increase in the three month period reflects higher rates and customer growth of $3.3 million. The increase in the nine month period reflects higher rates and customer growth of $17.1 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 nine months ended September 30, 2025 is $1.5 million and $7.4 million, respectively, related to Bangor.

Previous 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.

Current wording

Operation and Maintenance (O&M) expenses increased $1.6 million and $8.7 million in the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increase in the three month period reflects higher utility operating costs of $2.0 million and higher acquisition transaction costs of $0.5 million, partially offset by lower benefits costs of $0.9 million. The increase in the nine month period reflects higher utility operating costs of $5.1 million, higher labor costs of $1.2 million and higher acquisition transaction costs of $2.4 million. Included in O&M expense for the three months and nine months ended September 30, 2025 is $0.9 million and $2.6 million, respectively, related to Bangor O&M expenses.

Previous 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.

Current wording

Depreciation and Amortization expense increased $3.1 million and $10.5 million in the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increase in the three month period reflects higher depreciation rates from recent base rate cases, additional depreciation associated with higher levels of utility plant in service and higher amortization of other deferred costs. The increase in the nine month period reflects 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 nine months ended September 30, 2025 is $0.7 million and $2.0 million, respectively, related to Bangor.

Previous 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.

Current wording

Interest Expense, Net increased $1.5 million and $5.2 million in the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024, primarily reflecting higher levels of long-term debt and lower interest income on AFUDC, partially offset by lower interest expense on short-term borrowings.

Previous 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.

Current wording

Other Expense (Income), Net is unchanged for the three months ended September 30, 2025. Other Expense (Income), Net decreased $1.0 million in the nine months ended September 30, 2025, compared to the same period in 2024, primarily from lower retirement benefit costs.

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 and six months ended June 30, 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 nine months ended September 30, 2025 and 2024:

Previous 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.

Current wording

Total Electric Operating Revenue increased $1.8 million, or 2.9% in the three months ended September 30, 2025 compared to the same period in 2024, reflecting higher electric distribution rates, partially offset by 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. Total Electric Operating Revenue decreased $17.0 million, or 8.8% in the nine months ended September 30, 2025 compared to the same period 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

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 wording

Electric Adjusted Gross Margin (a non-GAAP financial measure) was $33.1 million and $86.4 million for the three and nine months ended September 30, 2025, respectively, increases of $3.4 million and $4.7 million, respectively, compared with the same periods in 2024. These increases reflect higher rates and customer growth.

Previous 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.

Current wording

Kilowatt-hour Sales - Unitil’s total electric kWh sales decreased 5.4% and 1.0% in the three and nine months ended September 30, 2025, compared to the same periods in 2024. Sales to Residential and Commercial and Industrial (C&I) customers decreased 2.1% and 8.0%, respectively, in the three months ended September 30, 2025, compared to the same period in 2024, reflecting cooler weather for cooling purposes in the third quarter of 2025 compared to the same period in 2024, partially offset by customer growth. Sales to Residential and C&I customers increased 2.7% and decreased 3.7%, respectively, in the nine months ended September 30, 2025, compared to the same period in 2024, reflecting colder winter weather for heating purposes in 2025 and customer growth, partially offset by cooler weather for cooling purposes in 2025. As of September 30, 2025, the number of electric customers increased by approximately 560 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 and six months ended June 30, 2025 and 2024 by major customer class:

Current wording

The following table details total kWh sales for the three and nine months ended September 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 and six months ended June 30, 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 nine months ended September 30, 2025 and 2024:

Previous 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.

Current wording

Total Gas Operating Revenue increased $6.4 million, or 21.1%, and increased $24.2 million, or 13.8%, in the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increase in the three month period includes $3.3 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 nine month period includes $16.6 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 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.

Current wording

Therm Sales- Unitil’s total gas therm sales increased 13.4% and 22.0% in the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. In the third quarter of 2025, sales to Residential and C&I customers increased 16.0% and 13.1%, respectively, compared to the same period in 2024, reflecting customer growth. In the first nine months of 2025, sales to Residential and C&I customers increased 28.8% and 20.3%, respectively, compared to the same period in 2024, reflecting colder winter weather in 2025 and customer growth. Included in the total gas therm sales increases are 4.6 million therms and 23.5 million therms, respectively, for three and nine months ended September 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 nine 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 2.4% in the first nine months of 2025 compared to the same period in 2024. As of September 30, 2025, the number of gas customers increased by approximately 9,420 over the previous year. Included in this increase is 8,820 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 therm sales for the three and six months ended June 30, 2025 and 2024 by major customer class:

Current wording

The following table details total therm sales for the three and nine months ended September 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 $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.

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 $1.6 million, or 4.9%, and $21.7 million, or 19.6%, respectively, in the three and nine months ended September 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 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.

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 $3.1 million, or 43.7%, and $5.1 million, or 8.6%, in the three and nine months ended September 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 $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.

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 expenses increased $1.6 million, or 7.9%, and $8.7 million, or 15.2%, in the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increase in the three month period reflects higher utility operating costs of $2.0 million and higher acquisition transaction costs of $0.5 million, partially offset by lower benefits costs of $0.9 million. The increase in the nine month period reflects higher utility operating costs of $5.1 million, higher labor costs of $1.2 million and higher acquisition transaction costs of $2.4 million. Included in O&M expense for the three months and nine months ended September 30, 2025 is $0.9 million and $2.6 million, respectively, related to Bangor O&M expenses.

Previous 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.

Current wording

Depreciation and Amortization - Depreciation and Amortization expense increased $3.1 million, or 16.2%, and $10.5 million, or 19.0%, in the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increase in the three month period reflects higher depreciation rates from recent base rate cases, additional depreciation associated with higher levels of utility plant in service and higher amortization of other deferred costs. The increase in the nine month period reflects 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 nine months ended September 30, 2025 is $0.7 million and $2.0 million, respectively, related to Bangor.

Previous 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.

Current wording

Other Expense (Income), Net -Other Expense (Income), Net is unchanged for the three months ended September 30, 2025. Other Expense (Income), Net decreased $1.0 million in the nine months ended September 30, 2025, compared to the same period in 2024, primarily from lower retirement benefit costs.

Previous 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.

Current wording

Income Tax Expense (Benefit) - Federal and State Income Taxes are unchanged for the three months ended September 30, 2025, compared to the same period in 2024. Federal and State Income Taxes increased $0.2 million in the nine months ended September 30, 2025, compared with the same period in 2024.

Previous wording

Unitil’s utility subsidiaries operate a number of reconciling rate mechanisms to recover specifically identified costs on a pass-through basis. These reconciling rate mechanisms track costs and revenue on a monthly basis. In any given month, this tracking and reconciling process will produce either an under-collected or an over-collected position. In accordance with the distribution utilities’ rate tariffs, interest is accrued on these balances and will produce either interest income or interest expense. Consistent with regulatory precedent, interest income is recorded on an under-collection of costs which creates a regulatory asset to be recovered in future periods when rates are reset. Interest expense is recorded on an over-collection of costs, which creates a regulatory liability to be refunded in future periods when rates are reset.

Current wording

Unitil’s utility subsidiaries operate several reconciling rate mechanisms to recover specifically identified costs on a pass-through basis. These reconciling rate mechanisms track costs and revenue on a monthly basis. In any given month, this tracking and reconciling process will produce either an under-collected or an over-collected position. In accordance with the distribution utilities’ rate tariffs, interest is accrued on these balances and will produce either interest income or interest expense. Consistent with regulatory precedent, interest income is recorded on an under-collection of costs which creates a regulatory asset to be recovered in future periods when rates are reset. Interest expense is recorded on an over-collection of costs, which creates a regulatory liability to be refunded in future periods when rates are reset.

Previous 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.

Current wording

Interest Expense, Net increased $1.5 million, or 20.3%, and $5.2 million, or 23.5%, in the three and nine months ended September 30, 2025, compared to the same periods in 2024, primarily reflecting higher levels of long-term debt and lower interest income on AFUDC, partially offset by lower interest expense on short-term borrowings.

Previous wording

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 wording

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 September 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 September 30, 2025, approximately $48.5 million remains available for future sales under the program.

Previous wording

The Company and its subsidiaries are individually and collectively members of the Unitil Cash Pool (Cash Pool). The Cash Pool is the financing vehicle for day-to-day cash borrowing and investing. The Cash Pool allows for an efficient exchange of cash among the Company and its subsidiaries. The interest rates charged to the subsidiaries for borrowing from the Cash Pool are based on actual interest costs from lenders under the Company’s revolving Credit Facility (as defined below). At June 30, 2025, June 30, 2024 and December 31, 2024, the Company and all of its subsidiaries were in compliance with the regulatory requirements to participate in the Cash Pool.

Current wording

The Company and its subsidiaries are individually and collectively members of the Unitil Cash Pool (Cash Pool). The Cash Pool is the financing vehicle for day-to-day cash borrowing and investing. The Cash Pool allows for an efficient exchange of cash among the Company and its subsidiaries. The interest rates charged to the subsidiaries for borrowing from the Cash Pool are based on actual interest costs from lenders under the Company’s revolving Credit Facility (as defined below). As of September 30, 2025, September 30, 2024 and December 31, 2024, the Company and all of its subsidiaries were in compliance with the regulatory requirements to participate in the Cash Pool.

Previous wording

On September 29, 2022, the Company entered into a Third Amended and Restated Credit Agreement with a syndicate of lenders (collectively, the "Credit Facility”), which amended and restated in its entirety the prior credit facility. On January 29, 2025, the Company entered into an amendment to the Credit Facility, which (among other things) increased the borrowing limit under the Credit Facility from $200 million to $275 million and extended the term of the Credit Facility from September 29, 2027 until September 29, 2028. Unitil may borrow under the Credit Facility until September 29, 2028, subject to two one-year extensions under certain circumstances.

Current wording

On September 29, 2022, the Company entered into a Third Amended and Restated Credit Agreement with a syndicate of lenders (collectively, the "Credit Facility”), which amended and restated in its entirety the prior credit facility. On January 29, 2025, the Company entered into an amendment to the Credit Facility, which (among other things) increased the borrowing limit under the Credit

Previous wording

The Credit Facility has a borrowing limit of $275 million ($200 million as of December 31, 2024), which includes a $25 million sublimit for the issuance of standby letters of credit. Unitil may increase the borrowing limit under the Credit Facility by up to $75 million under certain circumstances. The Credit Facility generally provides Unitil with the ability to elect that borrowings under the Credit Facility bear interest under several options, including a daily fluctuating rate equal to (a) the forward-looking secured overnight financing rate (as administered by the Federal Reserve Bank of New York) term rate with a term equivalent to one month beginning on that date, plus (b) 0.1000%, plus (c) a margin of 1.125% to 1.375% (based on Unitil’s credit rating).

Current wording

The Credit Facility has a borrowing limit of $275 million ($200 million as of December 31, 2024), which includes a $25 million sublimit for the issuance of standby letters of credit. Unitil may increase the borrowing limit under the Credit Facility by up to $75 million under certain circumstances. The Credit Facility generally provides Unitil with the ability to elect that borrowings under the Credit Facility bear interest under several options, including a daily fluctuating rate equal to (a) the forward-looking secured overnight financing rate (SOFR) (as administered by the Federal Reserve Bank of New York) term rate with a term equivalent to one month beginning on that date, plus (b) 0.1000%, plus (c) a margin of 1.125% to 1.375% (based on Unitil’s credit rating).

Previous 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:

Current wording

The Company accesses the Credit Facility for cash management purposes related to its short-term operating activities. Total gross borrowings were $380.0 million for the nine months ended September 30, 2025. Total gross repayments were $368.3 million for the nine months ended September 30, 2025. The following table details the borrowing limits, amounts outstanding and amounts available under the Credit Facility as of September 30, 2025, September 30, 2024 and December 31, 2024:

Previous wording

On August 21, 2024, Unitil issued $20.0 million of Notes due 2034 at 5.99%; Fitchburg issued $12.5 million of Notes due 2034 at 5.54% and $12.5 million of Notes due 2044 at 5.99%; Unitil Energy issued $40.0 million of Bonds due 2054 at 5.69%; Northern Utilities issued $25.0 million of Notes due 2034 at 5.54% and $15.0 million of Notes due 2039 at 5.74%; and Granite State issued $10.0 million of Notes due 2034 at 5.74%.

Current wording

On August 21, 2024, Unitil issued $20.0 million of Notes due 2034 at 5.99%; Fitchburg issued $12.5 million of Notes due 2034 at 5.54% and $12.5 million of Notes due 2044 at 5.99%; Unitil Energy issued $40.0 million of Bonds due 2054 at 5.69%; Northern Utilities issued $25.0 million of Notes due 2034 at 5.54% and $15.0 million of Notes due 2039 at 5.74%; and Granite State issued $10.0 million of Notes due 2034 at 5.74%. The Company used the net proceeds from these offerings to refinance existing debt and for general corporate purposes. Approximately $1.0 million of costs associated with this issuance were recorded as a reduction of Long-Term Debt for presentation purposes on the Consolidated Balance Sheet in the third quarter of 2024.