Unitil Corporation plans to make an underwritten public offering of 800,000 newly issued shares of common stock pursuant to an effective shelf registration statement on Form S-3 filed with the Securities and Exchange Commission.
Unitil also plans to grant the underwriters a 30-day option to purchase up to an additional 120,000 shares. Net proceeds from this offering are expected to be used to make equity capital contributions to Unitil’s regulated utility subsidiaries, to repay debt and for general corporate purposes.
RBC Capital Markets, LLC and BofA Securities will act as joint book-running managers of the offering. Janney Montgomery Scott LLC will act as co-manager of the offering. A copy of the preliminary prospectus supplement and the accompanying prospectus relating to this offering is available at www.sec.gov.
Unitil Corporation reported Net Income of $2.7 million, or $0.18 in Earnings Per Share (EPS), for the second quarter of 2021, a decrease of $0.4 million in Net Income, or $0.03 per share, compared to the second quarter of 2020. For the second quarter of 2021, higher Gas and Electric Adjusted Margins (a non-GAAP measure) were more than offset by higher operating expenses compared to the same period in 2020. For the six months ended June 30, 2021, the Company reported Net Income of $21.6 million, or $1.44 per share, an increase of $3.3 million, or $0.21 per share, compared to the same six month period in 2020. The Company’s earnings in the first six months of 2021 reflect higher Gas and Electric Adjusted Margins (a non-GAAP measure), partially offset by higher operating expenses. The Company’s GAAP Gas and Electric Gross Margins for the second quarter of 2021 were $16.8 million and $17.9 million, respectively. For the six months ended June 30, 2021, the Company’s GAAP Gas and Electric Gross Margins were $56.4 million and $35.1 million, respectively.
“Robust economic conditions in our regions, as reflected in improving unemployment and strong housing markets, contributed to our solid results in the first half of 2021,” said Thomas P. Meissner, Jr., Unitil’s Chairman and Chief Executive Officer. “In the second quarter, we also announced our commitment to net-zero emissions by 2050, which highlights the Company’s focus on environmental stewardship while continuing to provide safe and reliable service for customers.”
Unitil Corporation also announced Monday that its New Hampshire natural gas distribution utility, Northern Utilities New Hampshire, filed a base rate case with the NH Public Utilities Commission requesting approval to change distribution rates for all customers. This filing will be subject to comprehensive review by the Commission in a base rate case proceeding that may last up to a year or more. The Company’s last base rate case was filed in 2017.
The multi-year rate filing includes a revenue decoupling mechanism and an arrearage management program for customers experiencing difficulty in paying their energy bills. The Company’s proposal also includes certain provisions intended to mitigate the rate filing’s effect on customer rates, and to limit future rate increases while also ensuring the continued safe, reliable service for customers.
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