The Wells Fargo Daily Transmission: VST, PEG/NJ, WA, EVRG, POR, UTL, DUK, SR, TX, IN

Research evidence excerpt

The Wells Fargo Daily Transmission: VST, PEG/NJ, WA, EVRG, POR, UTL, DUK, SR, TX, IN

m Scotiabank

• Management stated that the transaction is expected to be earnings accretive over the

long term and supportive of Unitil's targeted 5%–7% long-term EPS growth rate

• Chairman and CEO Thomas P. Meissner Jr. commented:“The acquisition of the

Aquarion Companies represents a unique opportunity for Unitil to expand into a

complementary regulated utility service within a state we already serve. We are

excited to welcome the Aquarion Companies’ experienced, locally managed teams

and remain committed to delivering the high-quality service that customers and

communities across New Hampshire have come to expect.”

• See link to press release HERE

Wells Fargo Takeaway: We view the closing as strategically positive but not thesis changing

(given the reiterated guidance) for UTL, providing entry into the regulated water sector

through a relatively small, low-risk tuck-in acquisition within its existing NH footprint. The

transaction adds approximately $47 million of rate base, 11,000 customers, and 150 miles of

water infrastructure, creating a new avenue for long-term regulated growth while leveraging

mgmt.'s existing regulatory relationships in NE. Attention now shifts toward broader Aquarion

integration, where the NH assets have now closed, and the MA assets are expected to

follow after an operational improvement period, a phased approach that we believe reduces

execution risk while allowing under-earning assets to move closer to authorized returns ahead

of full integration. Strategically, Aquarion establishes a new water growth platform within

UTL's existing footprint, supported by constructive regulatory relationships and incremental

capital investment opportunities.