![]() Annual Annual Meeting Meeting April 15, 2010 April 15, 2010 of Shareholders of Shareholders Exhibit 99.1 |
![]() 1 2010 Annual Meeting of Shareholders This presentation contains “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding Unitil Corporation’s financial condition, results of operations, capital expenditures, business strategy, regulatory strategy, market opportunities, and other plans and objectives. In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue”, the negative of such terms, or other comparable terminology. These forward-looking statements are neither promises nor guarantees, but involve risks and uncertainties that could cause the actual results to differ materially from those set forth in the forward-looking statements. Those risks and uncertainties include: the Company’s ability to retain existing customers and gain new customers; variations in weather and major storms; recovery of deferred major storm costs; recovery of energy commodity costs; changes in the regulatory environment; customers’ preferences on energy sources; interest rate fluctuation and credit market concerns; general economic conditions; fluctuations in supply, demand, transmission capacity and prices for energy commodities; increased competition; customers’ performance under multi-year energy brokering contracts; and other risks detailed in the Company’s filings with the Securities and Exchange Commission, including those appearing under the caption Risk Factors in the Company’s Annual Report on Form 10-K for the year ended December 31, 2009. Readers should not place undue reliance on any forwarding looking statements, which speak only as of the date they are made. The Company undertakes no obligation to update any forward-looking statements to reflect any change in the Company’s expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward- looking statements. Robert G. Schoenberger Chairman, President & Chief Executive Officer Presentation by Presentation by |
![]() 2 2010 Annual Meeting of Shareholders 2012 2012 2010 2010 Realizing the Earnings Power of Our Assets Near-Term Value Creation |
![]() 3 2010 Annual Meeting of Shareholders Mergers and acquisitions Gas distribution expansion Usource Regulatory Customer Growth Key Strategies Communication Customer service Emergency preparedness Rate cases Reporting and compliance Relationships Strategy Overview Strategy Overview |
![]() 4 2010 Annual Meeting of Shareholders 90% of EPS from regulated operations 171,000 Customers 171,000 Customers UES Northern Usource FGE Granite State Value Proposition 6% dividend yield Significant asset and earnings growth potential 50% gas / 50% electric |
![]() 5 2010 Annual Meeting of Shareholders Regulatory Agenda |
![]() 6 2010 Annual Meeting of Shareholders UES (12 mos.) Jan-10 Jan-11 Jan-12 Jan-10 Jan-11 Jan-12 FGE (6-9 mos.) Granite State (6 mos.) Northern (9 mos.) Rate Case Schedule Rate Case Schedule All Distribution Utilities All Distribution Utilities Will Have Rates Reset Will Have Rates Reset Over Next 18 Months Over Next 18 Months Rate Case Overview |
![]() 7 2010 Annual Meeting of Shareholders Growth Strategy |
![]() 8 2010 Annual Meeting of Shareholders Prudently Pursue Additional Acquisitions in New England Prudently Pursue Additional Acquisitions in New England Acquisition Strategy Northern acquisition (Dec ’08) Increased customer base 50% Doubled sales margins Purchased at below book value Achieved significant synergies |
![]() 9 2010 Annual Meeting of Shareholders New England Gas Penetration 40% versus 80-90% Nationally Competitive price advantage (~25-30%) Plentiful Supply Gas Distribution Expansion Clean energy Significant rate base growth opportunities |
![]() 10 2010 Annual Meeting of Shareholders Current Operations New 2010 Markets $0.16 earnings per share in 2009 Greater than 90% customer retention rate $4.3 million in 2009 revenue Non-Regulated Energy Brokering Non-Regulated Energy Brokering Zero counterparty risk |
![]() 11 2010 Annual Meeting of Shareholders Customer Service |
![]() 12 2010 Annual Meeting of Shareholders February 2010 Wind Storm Second Worst Natural Disaster in NH History Second Worst Natural Disaster in NH History 63,000 customers out (85% of NH customers) Over 250 crews responded from eight states Over 1,000 individuals participated during the event to restore power 3.5 day restoration time |
![]() 13 2010 Annual Meeting of Shareholders Community Appreciation “Unitil really stepped up to the challenge” “Your regular updates… kept us informed and kept information flowing to the public” “This time, the effort was, simply, superb” “This response should be…the model for the way it is done” - NH Governor Lynch - Exeter, NH Police Chief - Canterbury, NH Fire Captain - NH Public Radio |
![]() 14 2010 Annual Meeting of Shareholders Highlights Stable natural gas and electric transmission and distribution business model Bridging the gap between actual and authorized ROE Low cost and reliable utility operations Historic dividend stability and commitment Diverse gas and electric utility asset base, customer and revenue mix Significant rate base growth opportunities Significantly improved customer service and corporate image |
![]() 15 2010 Annual Meeting of Shareholders Appendix |
![]() 16 2010 Annual Meeting of Shareholders 2010 – 2011 Earnings Overview 2010 will be an important transition year as we implement our regulatory agenda to realize the full earnings potential of our growing utility asset base over the next 18 months Near-term earnings pressure will persist until rates are reset across Unitil’s electric and gas utilities In 2010, electric and gas sales are projected to be flat to declining due to the slow pace of economic recovery and energy conservation Increased regulatory reporting and compliance requirements will put cost pressures on earnings until new rates are set Regulatory plan will drive earnings growth by end of 2011 well above trend as rates are reset for utility subsidiaries. Other key earnings drivers include: Improving economy is projected to reverse trend of declining electric and gas sales Expanding gas sales due to competitive position and environmental benefits of natural gas Increasing Usource market penetration 2011 2010 |
![]() 17 2010 Annual Meeting of Shareholders Strong historical commitment to investment in utility assets Northern acquisition in December 2008 significantly increased net plant and capital expenditures Growth in rate base largely driving need for base distribution rate increases across all utility subsidiaries Growth in Rate Base Net Plant Capital Expenditures $249 $423 $450 $484 $514 $0 $100 $200 $300 $400 $500 $600 2007 2008 2009 2010E 2011E $33 $28 $59 $64 $60 $0 $15 $30 $45 $60 $75 2007 2008 2009 2010E 2011E |
![]() 18 2010 Annual Meeting of Shareholders (1) Pro forma to include recent equity contributions from Unitil Corporation. 2009 Actual ROE calculated by dividing 2009 Net Income by December 2009 Common Equity (2) Excludes effect of non-recurring pre-tax purchased gas refund of $4.9 million (3) Not meaningful due to length of time since last rate case Utilities will have distribution rates reset and effective by end of 2011 Rate Case Timeline 3 mos. 9 mos. (Temporary Rates) (Permanent Rates) 6-9 mos. 6-9 mos. 6 mos. 9 mos. Under Assessment Expected Rate Case Schedule (2) (3) (3) 2010 2011 Company Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Northern (Maine) N/M 3.6% 7.7% $53.9 $74.9 $6.9 Granite N/M 6.5% Northern (New Hampshire) 9.67% FGE (Electric) 10.25% FGE (Gas) 10.00% Last Authorized ROE 2009 Actual ROE (1) UES 9.67% 5.2% 12/09 Common Equity (1) $63.5 |
![]() 19 2010 Annual Meeting of Shareholders Current quarterly dividend is $0.345 (annual dividend is $1.38 per share) Current dividend yield of approximately 6% Since incorporation in 1984, Unitil has continuously paid quarterly dividends and has never reduced its dividend rate Historic Dividend Stability and Commitment $0.310 $0.320 $0.330 $0.340 $0.350 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 0.0% 2.0% 4.0% 6.0% 8.0% Quarterly Dividend Average Annualized Dividend Yield |