UNITIL Corporation

Good day, and thank you for standing by. Welcome to the Unitil second quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Todd Diggins, Chief Accounting Officer. Please go ahead.

Good morning, and thank you for joining us to discuss Universal Corporation's second quarter 2022 financial results. Speaking on the call today will be Tom Meissner, Chairman and Chief Executive Officer, and Dan Herstack, Senior Vice President, Chief Financial Officer and Treasurer. Also with us today is Bob Hebert, President and Chief Administrative Officer. We will discuss financial and other information on this call. As we mentioned in the press release announcing today's call, we have posted information, including a presentation, to the investor section of our website at Unitil.com. We will refer to that information during this call. Moving to slide two, the comments made today about future operating results or events are forward-looking statements under the safe harbor provisions of the Private Securities Litigation and Reform Act of 1995. Forward-looking statements entirely involve risks and uncertainties that can cause actual results to differ materially from those predicted. Statements made on this call should be considered together with cautionary statements and other information contained in our most recent annual report on Form 10-K and other documents we have filed with or furnished to the Securities and Exchange Commission. Forward-looking statements speak only as of today and we assume no obligation to update them. This presentation contains non-GAAP financial measures. The accompanying supplemental information more fully describes these non-GAAP financial measures and includes a reconciliation to the nearest GAAP financial measures. The company believes these non-GAAP financial measures are useful in evaluating its performance. With that, I will now turn the call over to Chairman and CEO Tom Meissner.

Thanks, Todd, and good morning, everyone. Thanks for joining us today. Beginning on slide four, Today we announced net income of $4.2 million, or 25 cents per share, for the second quarter of 2023. Through the first half of 2023, net income was $28.3 million, or $1.76 per share, representing an increase of 11 cents, or approximately 7% over the same period in 2022. Earnings growth was achieved through execution of our regulatory agenda and our focus on cost control. Decoupled rate structures, which now apply to the majority of our customers, help support and stabilize revenue through the first six months of the year. Our disciplined approach to cost management has resulted in lower operation and maintenance expenses relative to the first half of 2022, a noteworthy accomplishment considering the current inflationary environment. We believe that for the balance of the year, O&M expenses will remain consistent with 2022 levels. As we'll discuss in greater detail, our regulatory agenda remains active with the base rate case for Northern Utilities, Main Division, currently underway. Rate cases are also being prepared for our Massachusetts Electric and Gas Divisions. We continue to see strong financial and operational performance through the first half of 2023, which is consistent with our investor value proposition of low risk, sustainable growth. and we again reaffirm our long-term earnings guidance of five to seven percent. Turning to slide five, I'd like to touch on the underlying economic strength in our service areas. In May, New Hampshire's unemployment rate was tied for the lowest in the nation at a record low of 1.9 percent. In addition, both Maine and Massachusetts have lower unemployment rates than the national average. Strong labor markets are likely one of the reasons that the areas we serve are consistently cited as some of the most desirable places to live in the nation. The strong economies within our territories have continued to drive the demand for housing in areas that are already experiencing tight supply. This dynamic has led to customer growth that while it slightly trails historical trends, but construction employment and new housing permits are on the rise to help meet the strong housing demand. More specific to Unitil, the local economies and areas we serve have held up well through recent economic conditions. Similar to other parts of the country, our customers have experienced higher than normal energy prices. Although energy supply costs are a pass-through expense for the company, we're well aware of the increased energy burden on our customers. In previous calls, you've heard me praise our customer service efforts as reflected in our strong customer survey results. We take a proactive approach to communicating with our customers and offering assistance, including budget billing, payment plans, arrearage management plans, and information on other available assistance programs. Our continued focus on customer service and communication, along with the strong local economic conditions in our service areas, are reflected in lower customer account write-offs in 2023 compared to prior years. With that, I'll now pass it over to Dan, who will provide greater detail on the quarterly and year-to-date results. Dan?