Will Eversource Energy's (ES) $599M Bond Sale Shape Its Grid Modernization Strategy?

• Earlier this month, Eversource Energy completed a US$598.63 million fixed-income offering, issuing 4.45% senior unsecured notes due December 2030 with callable features and a 0.6% discount to par.
• This fixed-rate debt issuance underscores the company's access to capital markets and supports financial flexibility for upcoming grid modernization initiatives.
• We'll explore how Eversource's successful bond offering enhances its investment case by supporting infrastructure spending and future earnings stability.

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Eversource Energy Investment Narrative Recap

To be comfortable as a shareholder in Eversource Energy, you generally need to believe in the long-term stability of regulated utilities and the company’s ability to steadily invest in grid modernization while navigating complex state-level regulation. The recent US$598.63 million fixed-income offering bolsters financial flexibility for ongoing infrastructure projects, but does not immediately resolve the most pressing short-term catalyst, the need for regulatory approval and timely closure of the Aquarion sale, or mitigate the biggest risk, which remains adverse regulatory developments in Connecticut.

Among recent announcements, the reaffirmation of Eversource's 2025 earnings guidance and a long-term growth projection of 5 to 7 percent directly ties into this bond issuance, as both reflect efforts to maintain capital strength and meet expectations for earnings stability. However, these milestones still depend on constructive regulatory outcomes and successful execution of planned asset sales.

By contrast, even with this capital raise, investors should be mindful that if Connecticut regulatory decisions turn less favorable or cost recovery is delayed, Eversource’s earnings growth and margin outlook could be pressured…

Read the full narrative on Eversource Energy (it's free!)

Eversource Energy is forecast to reach $14.8 billion in revenue and $2.1 billion in earnings by 2028. Achieving these targets would require annual revenue growth of 4.4% and an increase in earnings of approximately $1.24 billion from the current level of $858.0 million.

Uncover how Eversource Energy's forecasts yield a $71.69 fair value, a 4% downside to its current price.

Exploring Other Perspectives

Four Simply Wall St Community members estimate Eversource’s fair value between US$52 and US$119.88 per share. Some members flag regulatory uncertainty in Connecticut as a central issue shaping future financial outcomes, explore these diverse viewpoints to see how your view compares.

Explore 4 other fair value estimates on Eversource Energy - why the stock might be worth as much as 61% more than the current price!

Build Your Own Eversource Energy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Eversource Energy research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Eversource Energy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Eversource Energy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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