UNITIL Corporation

Heartland Advisors' Heartland Value Fund highlighted Unitil Corporation as a traditional utility investment opportunity in its second-quarter 2026 investor letter. The fund noted that while the utilities sector detracted from performance due to security selection, many utility companies have seen valuations climb as indirect beneficiaries of AI infrastructure buildout. The fund favors Unitil, an interstate gas and electric company serving the northern East Coast, because it is not tied to AI-related risks. Unitil operates in Maine and New Hampshire, the two largest U.S. markets for fuel-oil-heated homes, where high energy costs are prompting consumers to consider switching to natural gas, potentially reducing bills by around 45% or more. As of July 14, 2026, Unitil shares closed at $53.62 with a market capitalization of $964.67 million, and 14 hedge fund portfolios held the stock at the end of the first quarter, up from 12 in the prior quarter.

Unitil Corporation has completed the purchase of Aquarion Water Company of New Hampshire and Abenaki Water Co. from the Aquarion Water Authority. The purchase price was $55.8 million, including the assumption of approximately $13.7 million of debt, plus about $0.6 million for estimated working capital and reimbursable capital expenditures. The acquired water systems include roughly 150 miles of water distribution mains and serve approximately 11,000 customers in eight New Hampshire communities, with an estimated rate base of $47.0 million as of December 31, 2025. Unitil funded the acquisition through a term loan from Scotiabank and expects the deal to be earnings accretive over the long term, supporting its long-term earnings per share growth of 5% to 7%. With this acquisition, Unitil now serves approximately 226,100 customers across New Hampshire, Maine, and Massachusetts.