SACRAMENTO, Calif.--(BUSINESS WIRE)--California American Water is continuing work on a $1.4 million infrastructure project in the Fruitridge Vista Water District, where crews are installing new water meters at residential properties. This project began in late September and will continue through mid-January 2026, bringing modern metering to customers and their homes. The project is designed to improve service reliability, enhance billing accuracy, and support California's water efficiency goals. ...

Core Viewpoint - American Water Works Company, Inc. (AWK) is a prominent player in the water and wastewater utility sector in the U.S., currently facing scrutiny over its proposed acquisition of Essential Utilities, Inc. [1][4] Stock Performance - AWK's current stock price is $137.99, reflecting a decrease of 2.54%, or $3.60, from its previous value [2] - The stock has fluctuated between $135.40 and $140.50 today, with a one-year high of $155.50 and a low of $118.74, indicating volatility [2] - The market capitalization of AWK is approximately $26.92 billion, showcasing its significant presence in the utility sector [3] Analyst Insights - Wells Fargo analyst Shahriar Pourreza has set a price target of $142 for AWK, suggesting a potential upside of about 2.91% from the current trading price [1][5] Acquisition Investigation - The proposed acquisition of Essential Utilities, Inc. by AWK is under investigation by Kahn Swick & Foti, LLC, focusing on the fairness of the deal for Essential Utilities' shareholders [3][4] - Shareholders of Essential Utilities are set to receive 0.305 shares of AWK for each share they own as part of the acquisition [4]

Core Viewpoint - Wells Fargo upgraded American Water Works (AWK) to "Overweight," indicating a positive outlook for the company's future performance despite an ongoing investigation into its proposed acquisition of Essential Utilities, Inc. [1][2][5] Company Overview - American Water Works is a leading water and wastewater utility company in the United States, providing essential services to millions of people across the country [1]. - The company has a market capitalization of approximately $26.92 billion, highlighting its significant presence in the utility sector [4][5]. Stock Performance - At the time of the upgrade, AWK's stock price was $137.99, but it has since decreased by 2.54%, or $3.60, reflecting some volatility [1][3][5]. - The stock has fluctuated between a low of $135.40 and a high of $140.50 on the day of the report, with a yearly high of $155.50 and a low of $118.74 [3]. Trading Activity - AWK's stock is actively traded, with a current trading volume of 3,438,602 shares on the NYSE, indicating strong investor interest in the company's future prospects [4][5].

Core Viewpoint - The comparison between California Water Service Group (CWT) and American Water Works (AWK) indicates that CWT is currently more attractive to value investors due to its stronger Zacks Rank and better valuation metrics [1][3]. Group 1: Zacks Rank and Earnings Estimates - CWT has a Zacks Rank of 2 (Buy), while AWK has a Zacks Rank of 4 (Sell), suggesting that CWT is experiencing a more favorable earnings outlook [3]. - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, which supports the notion that CWT is likely to see improved earnings [2][3]. Group 2: Valuation Metrics - CWT has a forward P/E ratio of 20.79, compared to AWK's forward P/E of 24.73, indicating that CWT may be undervalued relative to AWK [5]. - The PEG ratio for CWT is 2.37, while AWK's PEG ratio is 3.39, further suggesting that CWT offers better value considering expected earnings growth [5]. - CWT's P/B ratio is 1.78, whereas AWK's P/B ratio is 2.59, reinforcing the view that CWT is more attractively priced [6]. - Overall, CWT has a Value grade of B, while AWK has a Value grade of D, highlighting CWT's superior valuation profile [6].

Key Takeaways AWK will report Q3 2025 results on Oct. 29, contributions from acquired assets will boost earnings.New rates and infrastructure upgrades likely supported Q3 earnings performance.Consensus sees EPS up 5% to $1.89, while revenues are expected to edge down 0.19% to $1.32 billion.American Water Works Company (AWK) is scheduled to release third-quarter 2025 results on Oct. 29, after market close. The company delivered a negative earnings surprise of 0.67% in the last reported quarter. Let us discus ...

PresentationOperator Good morning, everyone. Welcome to today's conference call to discuss the combination of American Water and Essential Utilities. Presenters on today's call include John Griffith, President and CEO of American Water; and Chris Franklin, Chairman and CEO of Essential Utilities. Also on today's call are David Bowler, Executive Vice President and CFO of American Water; Cheryl Norton, Executive Vice President and COO of American Water; and Dan Schuller, Executive Vice President and CFO of Es ...

Core Viewpoint - American Water Works and Essential Utilities are merging in an all-stock deal to create a public water utility valued at approximately $40 billion [1] Company Structure and Ownership - Essential shareholders will receive 0.305 shares of American Water for each share they own, resulting in American Water shareholders owning about 69% and Essential shareholders owning approximately 31% of the combined company [2] - The combined company's board will consist of 15 members, including 10 directors from American Water and 5 designated by Essential [5] Operational Impact - There will be no change in customer rates associated with the merger, and employee compensation or benefits are not expected to materially change [2][3] - The combined company plans to review strategic options for its non-water and non-wastewater businesses after the merger closes [2] Leadership and Headquarters - John Griffith will serve as president and CEO of the combined company, while Christopher Franklin will become executive vice chair for the board [4] - The headquarters will be located in Camden, NJ, with Essential's offices in Bryn Mawr and Pittsburgh maintaining a strong operational presence [6] Timeline and Market Reaction - The merger is expected to close by the end of the first quarter of 2027, pending shareholder and public utility commission approvals [6] - Following the announcement, shares of American Water Works fell by 3.5%, while Essential Utilities' stock experienced a slight decline [6]

Summary of American Water Works Company and Essential Utilities Merger Conference Call Industry and Companies Involved - **Industry**: Regulated water and wastewater utilities - **Companies**: American Water Works Company (NYSE: AWK) and Essential Utilities Core Points and Arguments 1. **Merger Announcement**: The merger between American Water Works Company and Essential Utilities is an all-stock transaction, with American Water shareholders owning approximately 69% and Essential Utilities shareholders owning about 31% of the combined entity [4][5][8] 2. **Leadership Structure**: Post-merger, John Griffith will serve as President and CEO, Chris Franklin as Executive Vice Chair, and the Board will consist of 10 directors from American Water and 5 from Essential Utilities [4][5] 3. **Operational Presence**: The combined company will maintain a strong operational presence in both companies' existing locations, particularly in Bryn Mawr and Pittsburgh [6] 4. **Rate Base and Connections**: The combined company will have a rate base of approximately $34 billion and around 5.4 million water, wastewater, and natural gas connections across 17 states [8][13] 5. **Growth Targets**: The merger supports long-term growth with expected EPS growth of 7% to 9% and rate base growth of 8% to 9% [12][18] 6. **Customer Benefits**: Customers will benefit from improved infrastructure and operational efficiencies, with no immediate changes to customer rates due to the merger [15][16] 7. **Investment Plans**: A robust five-year capital investment plan will focus on infrastructure renewal, water quality, and compliance with regulations [17][18] 8. **Regulatory Approvals**: The merger requires multiple state regulatory approvals and is expected to close by the end of the first quarter of 2027 [21][22] 9. **Strategic Review**: Post-merger, the company plans to review strategic alternatives for non-water and non-wastewater businesses, including potential options for Peoples Natural Gas [6][37] 10. **Market Positioning**: The merger positions the combined company as a leading regulated utility, enhancing its ability to attract investment and improve customer service [24][48] Other Important but Potentially Overlooked Content 1. **Historical Context**: Both companies have nearly 140 years of history and have worked closely in overlapping service areas, enhancing their reputation as trusted partners in their communities [9] 2. **Environmental Focus**: The merger emphasizes a commitment to environmental sustainability and compliance with regulations, including PFAS remediation [10][43] 3. **Employee Opportunities**: The merger is expected to create new career paths and development opportunities for employees, fostering a culture of excellence [15][16] 4. **Market Dynamics**: The timing of the merger is influenced by the need for increased investment in infrastructure and the benefits of scale in the current market environment [27][28] 5. **Valuation Considerations**: The merger may impact the valuation of water utilities, potentially aligning them closer to electric utility valuations due to increased scale and visibility of growth [48] This summary captures the key points discussed during the conference call regarding the merger between American Water Works Company and Essential Utilities, highlighting the strategic, operational, and financial implications of the transaction.

Transaction Overview - American Water and Essential Utilities will merge in a tax-free, all-stock transaction[16] - The combined company will have a market capitalization of $40 billion and an enterprise value of $63 billion[16] - The fixed exchange ratio is 0305 American Water shares for each Essential Utilities share[16] - American Water shareholders will own 69% and Essential Utilities shareholders will own 31% of the combined company[16] - The merger is targeted to close by the end of Q1 2027[16] Financial and Growth Outlook - The merger is expected to result in EPS growth of 7%-9% and DPS growth of 7%-9%[16] - The combined company targets rate base growth of 8%-9%, including acquisitions[26] - The combined company's 5-year capital investment plan is $28 billion[42] Combined Company Profile - The combined company will serve 54 million U S connections[29] - The combined company's 2024A rate base is $34 billion, expected to reach $41 billion by 2026E[29] - The combined company will operate across 17 regulated states[29] - Pennsylvania will account for 28% of the combined company's water & wastewater total rate base[33] Strategic Benefits - The merger will create a top 10 large-cap pure-play utility[24] - The merger will solidify the company's position as a premier partner-of-choice water utility for municipal providers[25] - The merger will enhance financial strength and expand the low-risk foundation[50]

NEW YORK, Oct. 27, 2025 (GLOBE NEWSWIRE) -- Halper Sadeh LLC, an investor rights law firm, is investigating whether the merger of American Water Works Company, Inc. (NYSE: AWK) and Essential Utilities, Inc. is fair to American Water shareholders. Upon completion of the proposed transaction, American Water shareholders will own approximately 69% of the combined company. Halper Sadeh encourages American Water shareholders to click here to learn more about their legal rights and options or contact Daniel Sadeh ...