XML 23 R11.htm IDEA: XBRL DOCUMENT
v3.23.1

Debt and Financing Arrangements | 3 Months Ended
--- | ---
Mar. 31, 2023
Debt And Financing Arrangements | Note 4 - Debt AND FINANCING ARRANGEMENTS Details on long-term debt at March 31, 2023, March 31, 2022 and December 31, 2022 are shown below.
(millions) |  | March 31, |  |  | December 31, |
|  | 2023 |  |  | 2022 |  |  | 2022 |
Unitil Corporation: |  |  |  |  |  |  |  |  |
3.70% Senior Notes, Due August 1, 2026 |  | $ | 30.0 |  |  | $ | 30.0 |  |  | $ | 30.0 |
3.43% Senior Notes, Due December 18, 2029 |  |  | 30.0 |  |  |  | 30.0 |  |  |  | 30.0 |
Unitil Energy First Mortgage Bonds: |  |  |  |  |  |  |  |  |
8.49% Senior Secured Notes, Due October 14, 2024 |  |  | — |  |  |  | 1.5 |  |  |  | — |
6.96% Senior Secured Notes, Due September 1, 2028 |  |  | 12.0 |  |  |  | 14.0 |  |  |  | 12.0 |
8.00% Senior Secured Notes, Due May 1, 2031 |  |  | 13.5 |  |  |  | 15.0 |  |  |  | 13.5 |
6.32% Senior Secured Notes, Due September 15, 2036 |  |  | 15.0 |  |  |  | 15.0 |  |  |  | 15.0 |
3.58% Senior Secured Notes, Due September 15, 2040 |  |  | 27.5 |  |  |  | 27.5 |  |  |  | 27.5 |
4.18% Senior Secured Notes, Due November 30, 2048 |  |  | 30.0 |  |  |  | 30.0 |  |  |  | 30.0 |
Fitchburg: |  |  |  |  |  |  |  |  |
6.79% Senior Notes, Due October 15, 2025 |  |  | 2.0 |  |  |  | 6.0 |  |  |  | 2.0 |
3.52% Senior Notes, Due November 1, 2027 |  |  | 10.0 |  |  |  | 10.0 |  |  |  | 10.0 |
7.37% Senior Notes, Due January 15, 2029 |  |  | 7.2 |  |  |  | 8.4 |  |  |  | 8.4 |
5.90% Senior Notes, Due December 15, 2030 |  |  | 15.0 |  |  |  | 15.0 |  |  |  | 15.0 |
7.98% Senior Notes, Due June 1, 2031 |  |  | 14.0 |  |  |  | 14.0 |  |  |  | 14.0 |
3.78% Senior Notes, Due September 15, 2040 |  |  | 27.5 |  |  |  | 27.5 |  |  |  | 27.5 |
4.32% Senior Notes, Due November 1, 2047 |  |  | 15.0 |  |  |  | 15.0 |  |  |  | 15.0 |
Northern Utilities: |  |  |  |  |  |  |  |  |
3.52% Senior Notes, Due November 1, 2027 |  |  | 20.0 |  |  |  | 20.0 |  |  |  | 20.0 |
7.72% Senior Notes, Due December 3, 2038 |  |  | 50.0 |  |  |  | 50.0 |  |  |  | 50.0 |
3.78% Senior Notes, Due September 15, 2040 |  |  | 40.0 |  |  |  | 40.0 |  |  |  | 40.0 |
4.42% Senior Notes, Due October 15, 2044 |  |  | 50.0 |  |  |  | 50.0 |  |  |  | 50.0 |
4.32% Senior Notes, Due November 1, 2047 |  |  | 30.0 |  |  |  | 30.0 |  |  |  | 30.0 |
4.04% Senior Notes, Due September 12, 2049 |  |  | 40.0 |  |  |  | 40.0 |  |  |  | 40.0 |
Granite State: |  |  |  |  |  |  |  |  |
3.72% Senior Notes, Due November 1, 2027 |  |  | 15.0 |  |  |  | 15.0 |  |  |  | 15.0 |
Unitil Realty Corp.: |  |  |  |  |  |  |  |  |
2.64% Senior Secured Notes, Due December 18, 2030 |  |  | 4.2 |  |  |  | 4.4 |  |  |  | 4.2 |
Total Long-Term Debt |  |  | 497.9 |  |  |  | 508.3 |  |  |  | 499.1 |
Less: Unamortized Debt Issuance Costs |  |  | 3.2 |  |  |  | 3.5 |  |  |  | 3.3 |
Total Long-Term Debt, net of Unamortized Debt Issuance Costs |  |  | 494.7 |  |  |  | 504.8 |  |  |  | 495.8 |
Less: Current Portion |  |  | 6.7 |  |  |  | 8.2 |  |  |  | 6.7 |
Total Long-term Debt, Less Current Portion |  | $ | 488.0 |  |  | $ | 496.6 |  |  | $ | 489.1 |
Fair Value of Long-Term Debt - Currently, the Company believes there is no active market in the Company’s debt securities, which have all been sold through private placements. If there were an active market for the Company’s debt securities, the fair value of the Company’s long-term debt would be estimated based on the quoted market prices for the same or similar issues, or on the current rates offered to the Company for debt of the same remaining maturities. The fair value of the Company’s long-term debt is estimated using Level 2 inputs (valuations based on quoted prices available in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are directly observable, and inputs derived principally from market data). In estimating the fair value of the Company’s long-term debt, the assumed market yield reflects the Moody’s Baa Utility Bond Average Yield. Costs, including prepayment costs, associated with the early settlement of long-term debt are not taken into consideration in determining fair value.
(millions) |  | March 31, |  |  | December 31, |
|  | 2023 |  |  | 2022 |  |  | 2022 |
Estimated Fair Value of Long-Term Debt |  | $ | 449.2 |  |  | $ | 524.8 |  |  | $ | 455.3 |
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. Unitil may borrow under the Credit Facility until September 29, 2027, subject to two one-year extensions under certain circumstances. The Credit Facility terminates and all amounts outstanding thereunder are due and payable on September 29, 2027, subject to the potential extension discussed in the prior sentence. The Credit Facility has a borrowing limit of $200 million, 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). The Company utilizes the Credit Facility for cash management purposes related to its short-term operating activities. Total gross borrowings were $135.6 million for the three months ended March 31, 2023. Total gross repayments were $111.4 million for the three months ended March 31, 2023. The following table details the borrowing limits, amounts outstanding and amounts available under the Credit Facility as of March 31, 2023 and December 31, 2022 and for the prior credit facility as of March 31, 2022:
|  | Revolving Credit Facility (millions) |
|  | March 31, |  |  | December 31, |
|  | 2023 |  |  | 2022 |  |  | 2022 |
Limit |  | $ | 200.0 |  |  | $ | 120.0 |  |  | $ | 200.0 |
Short-Term Borrowings Outstanding |  |  | 140.2 |  |  |  | 64.0 |  |  |  | 116.0 |
Available |  | $ | 59.8 |  |  | $ | 56.0 |  |  | $ | 84.0 |
The Credit Facility contains customary terms and conditions for credit facilities of this type, including affirmative and negative covenants. There are restrictions on, among other things, Unitil’s and its subsidiaries’ ability to incur liens or incur indebtedness, and restrictions on Unitil’s ability to merge or consolidate with another entity or change its line of business. The affirmative and negative covenants under the Credit Facility shall apply to Unitil until the Credit Facility terminates and all amounts borrowed under Credit Facility are paid in full (or, with respect to letters of credit, they are cash-collateralized). The only financial covenant in the Credit Facility provides that Unitil’s Funded Debt to Capitalization (as each term is defined in the Credit Facility) cannot exceed 65% tested on a quarterly basis. At March 31, 2023, March 31, 2022 and December 31, 2022, the Company was in compliance with the covenants contained in the Credit Facility or the prior credit facility, as applicable, in effect on those dates. The average interest rates on all short-term borrowings and intercompany money pool transactions were 5.90% and 1.35% for the three months ended March 31, 2023 and March 31, 2022, respectively. The average interest rate on all short-term borrowings for the twelve months ended December 31, 2022 was 3.26%. Unitil Corporation and its utility subsidiaries, Fitchburg, Unitil Energy, Northern Utilities, and Granite State currently are rated “BBB+” by Standard & Poor’s Ratings Services. Unitil Corporation and Granite State currently are rated “Baa2”, and Fitchburg, Unitil Energy and Northern Utilities are currently rated “Baa1” by Moody’s Investors Services. Northern Utilities enters into asset management agreements under which Northern Utilities releases certain gas pipeline and storage assets, sells to an asset manager and subsequently repurchases the gas over the course of the gas heating season at the same price at which it sold the gas to the asset manager. There was $4.0 million of natural gas storage inventory and corresponding obligations at March 31, 2023 related to these asset management agreements. The amount of natural gas inventory released in March 2023, which was payable in April 2023, was $3.9 million and was recorded in Accounts Payable at March 31, 2023. Guarantees The Company provides limited guarantees on certain energy and gas storage management contracts entered into by the distribution utilities. The Company’s policy is to limit the duration of these guarantees. As of March 31, 2023 there were approximately $1.0 million of guarantees outstanding with a duration less than one year. Leases Unitil’s subsidiaries lease some of their vehicles, machinery and office equipment under both capital and operating lease arrangements. Total rental expense under operating leases charged to operations for the three months ended March 31, 2023 and March 31, 2022 amounted to $0.5 million and $0.5 million, respectively. The balance sheet classification of the Company’s lease obligations was as follows:
|  | March 31, |  |  | December 31, |
Lease Obligations (millions) |  | 2023 |  |  | 2022 |  |  | 2022 |
Operating Lease Obligations: |  |  |  |  |  |  |  |  |
Other Current Liabilities (current portion) |  | $ | 1.8 |  |  | $ | 1.6 |  |  | $ | 1.5 |
Other Noncurrent Liabilities (long-term portion) |  |  | 3.9 |  |  |  | 3.2 |  |  |  | 2.8 |
Total Operating Lease Obligations |  |  | 5.7 |  |  |  | 4.8 |  |  |  | 4.3 |
Capital Lease Obligations: |  |  |  |  |  |  |  |  |
Other Current Liabilities (current portion) |  |  | 0.1 |  |  |  | 0.1 |  |  |  | 0.1 |
Other Noncurrent Liabilities (long-term portion) |  |  | 0.3 |  |  |  | 0.2 |  |  |  | 0.1 |
Total Capital Lease Obligations |  |  | 0.4 |  |  |  | 0.3 |  |  |  | 0.2 |
Total Lease Obligations |  | $ | 6.1 |  |  | $ | 5.1 |  |  | $ | 4.5 |
Cash paid for amounts included in the measurement of operating lease obligations for the three months ended March 31, 2023 and March 31, 2022 w as $0.5 million and $0.5 million and was included in Cash Provided by Operating Activities on the Consolidated Statements of Cash Flows. Assets under capital leases amounted to approximately $0.9 million, $0.6 million and $0.6 million as of March 31, 2023, March 31, 2022 and December 31, 2022, respectively, less accumulated amortization of $0.4 million, $0.3 million and $0.4 million, respectively and are included in Net Utility Plant on the Company’s Consolidated Balance Sheets. The following table is a schedule of future operating lease payment obligations and future minimum lease payments under capital leases as of March 31, 2023. The payments for operating leases con sist of $1.8 million of current operating lease obligations, which are included in Other Current Liabilities and $3.9 million of noncurrent operating lease obligations, which are included in Other Noncurrent Liabilities, on the Company’s Consolidated Balance Sheets as of March 31, 2023. The payments for capital leases consist of $0.1 million of current capital lease obligations, which are included in Other Current Liabilities and $0.3 million of noncurrent capital lease obligations, which are included in Other Noncurrent Liabilities, on the Company’s Consolida ted Balance Sheets as of March 31, 2023.
Lease Payments ($000’s) |  | Operating |  |  | Capital |
Year Ending December 31, |  | Leases |  |  | Leases |
Rest of 2023 |  | $ | 1,561 |  |  | $ | 128 |
2024 |  |  | 1,761 |  |  |  | 126 |
2025 |  |  | 1,189 |  |  |  | 93 |
2026 |  |  | 890 |  |  |  | 74 |
2027 |  |  | 613 |  |  |  | 70 |
2028 - 2032 |  |  | 238 |  |  |  | 2 |
Total Payments |  |  | 6,252 |  |  |  | 493 |
Less: Interest |  |  | 546 |  |  |  | 49 |
Amount of Lease Obligations Recorded on Consolidated Balance Sheets |  | $ | 5,706 |  |  | $ | 444 |
Operating lease obligations are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, the Company used the interest rate stated in each lease agreement. As of March 31, 2023, the weighted average remaining lease term i s 3.8 years and the weighted average operating discount rate used to determine the operating lease obligations was 4.5%. As of March 31, 2022, the weighted average remaining lease term was 3.5 years and the weighted average operating discount rate used to determine the operating lease obligations was 3.7%.

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration