Core Insights - The article discusses the investment positions held by the author in MSEX and YORW, indicating a beneficial long position in these stocks [1]. Group 1 - The author expresses personal opinions regarding the stocks mentioned, emphasizing that the article is not receiving compensation beyond Seeking Alpha [1]. - It is noted that the author is not a licensed financial advisor, and the content should not be construed as financial advice [2]. - The article highlights the importance of due diligence and research by investors before making any investment decisions [2]. Group 2 - The article clarifies that past performance does not guarantee future results, and no specific investment recommendations are provided [3]. - It mentions that the views expressed may not reflect those of Seeking Alpha as a whole, indicating a diversity of opinions among analysts [3]. - The article emphasizes that the authors may include both professional and individual investors who may not be licensed or certified [3].

Core Points - The article discusses the investment positions held by the author in MSEX and YORW, indicating a beneficial long position in these shares [1] - It emphasizes the importance of conducting due diligence and research before making any investment decisions, particularly in high-risk trading styles [2] - The article clarifies that past performance does not guarantee future results and that the views expressed may not reflect those of Seeking Alpha as a whole [3] Company and Industry Summary - The author has a long position in MSEX and YORW, suggesting potential confidence in these companies' future performance [1] - The article highlights the risks associated with short-term trading and the necessity for investors to understand their risk tolerance [2] - It notes that Seeking Alpha's analysts may include both professional and individual investors, which could influence the perspectives shared in the article [3]

Core Viewpoint - Middlesex Water Company is set to report its financial results for Q3 2025 on October 31, 2025, after market close, with details available on its website [1] Company Overview - Middlesex Water Company is a leading investor-owned water and wastewater utility in the United States, established in 1897 [2] - The company serves over half a million people in New Jersey and Delaware, focusing on employee engagement, operational excellence, superior customer experience, infrastructure investment, and sustainable growth [2]

Core Insights - The article compares California Water Service Group (CWT) and Middlesex Water (MSEX) to determine which stock offers better value for investors [1] Valuation Metrics - CWT has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while MSEX has a Zacks Rank of 4 (Sell) [3] - CWT's forward P/E ratio is 18.68, compared to MSEX's forward P/E of 21.37, suggesting CWT is more attractively priced [5] - CWT has a PEG ratio of 2.13, while MSEX's PEG ratio is significantly higher at 3.65, indicating CWT's expected earnings growth is more favorable [5] - CWT's P/B ratio is 1.6, whereas MSEX's P/B ratio is 2.08, further supporting CWT's valuation advantage [6] Investment Conclusion - CWT exhibits stronger estimate revision activity and more attractive valuation metrics than MSEX, making it the preferred choice for value investors at this time [7]

Middlesex Water Company Conference Summary Company Overview - **Company**: Middlesex Water Company (NasdaqGS: MSEX) - **Date of Conference**: September 17, 2025 - **Key Speakers**: Nadine Leslie (Chair, President, and CEO), Rally Zeroni (Senior Vice President, Treasurer, and CFO) Strategic Vision - **2030 Vision**: The company has launched a five-year strategic plan called MWC 2030, focusing on five strategic pillars: 1. **Employee Development**: Investment in leadership and upskilling programs to reduce turnover and improve efficiency [4][5] 2. **Operational Excellence**: Streamlining processes and focusing on compliance and safety to enhance reliability and stakeholder value [5] 3. **Customer Experience**: Anticipating customer needs and utilizing AI tools to improve service [6] 4. **Stakeholder Management**: Engaging with external stakeholders, including investors and community leaders [6] 5. **Selective and Sustainable Growth**: Investing in utility infrastructure and pursuing advantageous tuck-in opportunities [7] Regulatory Environment - **New Jersey Rate Case**: The New Jersey Board of Public Utilities is currently short-staffed, but the company does not anticipate significant delays in decision-making [9][10] - **Interim Rates**: Historically, the company has not implemented interim rates, but they will evaluate this as the rate case progresses [11] - **Delaware Rate Case**: A recent rate case was settled positively, with expectations to file again in two to three years [13] Financial Health and Customer Impact - **Customer Bills**: Represent less than 1% of household income, indicating a focus on affordability despite rising energy costs [15] - **Electricity Costs**: The company has fixed-cost contracts in place through early 2027, which helps manage energy market fluctuations [18] - **Consumption Trends**: Customer consumption has been lower due to unfavorable weather, but dry conditions may positively impact future consumption [21] Economic Conditions - **Local Economies**: Organic growth is observed in Delaware, with no significant impact on customer financial health noted [25][27] - **Inflation Impact**: The company is managing procurement processes effectively to mitigate inflationary pressures on costs [30] M&A Opportunities - **Growth Strategy**: The company is actively pursuing tuck-in acquisitions for water and wastewater systems within its geographic footprint, including New Jersey and Delaware [32][34] - **Geographic Expansion**: Potential expansion into neighboring states like Maryland and Pennsylvania is being considered [36] Capital Expenditure (CapEx) - **Increased CapEx**: The company anticipates elevated capital investments beyond 2027 to comply with new regulations and address aging infrastructure [39][40] - **Regulatory Compliance**: The company is prepared for stringent state and federal compliance requirements, particularly regarding emerging contaminants like PFAS [41][42] Financing Needs - **Financial Strategy**: A strong financial plan is in place, combining debt and equity financing to support capital programs [46] Investor Concerns - **Key Topics**: Investors are focused on rate cases, capital expenditures, and affordability, which are central to the company's operational strategy [47] Conclusion - **Outlook**: The company is optimistic about its strategic initiatives and the potential for long-term value creation for stakeholders [48]

Company Overview - Middlesex Water Company is a leading investor-owned water and wastewater utility in the United States, serving over half a million people in New Jersey and Delaware [3] - Established in 1897, the company emphasizes employee engagement, operational excellence, superior customer experience, infrastructure investment, and sustainable growth [3] Upcoming Conference Participation - The Chair, President, and CEO, Nadine Leslie, along with the Senior Vice President and CFO, Mohammed G. Zerhouni, will participate in the 5th Annual Virtual Water Utilities Conference on September 17, 2025 [1] - They will discuss the company's business strategy during a fireside chat moderated by Janney's Senior Analyst, Michael Gaugler [1] - The conference will also include virtual one-on-one meetings with institutional analysts and investors [2] Presentation Availability - The live webcast of the conference will be accessible at a specified link and will be available for 90 days on Middlesex Water's website under the Investors section [1]

Core Viewpoint - Middlesex Water missed Wall Street expectations for both revenue and profit in Q2 2025, reporting $49.3 million in GAAP revenue and $0.60 in GAAP EPS, which were below analyst estimates of $51.34 million and $0.66 respectively. The company experienced modest growth year-over-year but faced challenges from rising costs and weaker customer demand [1][5]. Financial Performance - Q2 2025 GAAP EPS was $0.60, slightly up from $0.59 in Q2 2024, but below the estimate of $0.66 [2] - GAAP revenue for Q2 2025 was $49.3 million, a 0.4% increase from $49.1 million in Q2 2024, but below the expected $51.34 million [2][5] - Net income for Q2 2025 was $10.8 million, up 2.9% from $10.5 million in Q2 2024 [2] - Total operating expenses increased by 4.7% to $35.4 million compared to Q2 2024 [2][6] Business Overview - Middlesex Water operates regulated water and wastewater utilities, serving over 500,000 people in New Jersey and Delaware, with revenues primarily derived from customer water consumption [3] - The company focuses on ongoing investments in infrastructure to comply with environmental regulations and secure regulatory approvals for rate increases [4] Regulatory Developments - In July 2025, the Delaware subsidiary Tidewater Utilities received approval for a settlement that raised annual operating revenue by $5.5 million, with a return on common equity of 9.5% [7] - The company filed for a $24.9 million base rate increase in New Jersey to recover nearly $100 million in infrastructure investments [7] Capital Investment - Capital investment remains a strategic priority, with $51 million spent in the first half of 2025, representing approximately 55% of the 2025 capital plan [8] - The company is pursuing expanded rights to recover capital costs through distribution system improvement surcharges, which could raise up to $11.4 million annually [8] Shareholder Returns - Middlesex Water declared a quarterly cash dividend of $0.34 per share, marking the 52nd consecutive year of annual dividend increases [10] Future Outlook - Management did not provide explicit EPS or revenue guidance for the remainder of fiscal 2025, with future performance dependent on the outcome of the pending New Jersey rate request and ongoing infrastructure investments [11]

Core Viewpoint - Middlesex Water (MSEX) reported quarterly earnings of $0.6 per share, missing the Zacks Consensus Estimate of $0.68 per share, representing an earnings surprise of -11.76% [1][2] Financial Performance - The company posted revenues of $49.32 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 5.15%, compared to revenues of $49.15 million a year ago [2] - Over the last four quarters, Middlesex Water has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Middlesex Water shares have lost about 1.3% since the beginning of the year, while the S&P 500 has gained 8.2% [3] - The current Zacks Rank for Middlesex Water is 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.85 on $54 million in revenues, and $2.53 on $200 million in revenues for the current fiscal year [7] - The estimate revisions trend for Middlesex Water was unfavorable ahead of the earnings release [6] Industry Context - The Utility - Water Supply industry is currently in the top 39% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

Core Viewpoint - Middlesex Water Company reported positive financial results for the second quarter of 2025, highlighting growth in net income and operating revenues, driven by rate increases and customer growth despite challenges from unfavorable weather conditions [3][4][6]. Financial Results - For the second quarter ended June 30, 2025, net income was $10.8 million, with diluted EPS of $0.60, an increase from $10.5 million and $0.59 in the same quarter of 2024 [3]. - Operating revenues for the quarter were $49.3 million, up from $49.1 million year-over-year, attributed to rate increases and customer growth [4]. - Operating expenses increased to $35.4 million from $33.8 million, primarily due to higher variable production costs and increased labor costs [5]. Year-to-Date Performance - Year-to-date net income for the first half of 2025 was $20.3 million, a decrease from $21.3 million in the same period of 2024, with diluted EPS of $1.13 compared to $1.18 [6]. - Operating revenues for the first half of 2025 reached $93.6 million, an increase of approximately $4.0 million over the same period in 2024 [7]. - Operating expenses for the first half of 2025 rose by $3.7 million compared to the previous year, driven by weather-related costs and a one-time recovery in 2024 [8]. Growth Initiatives - The company invested approximately $51 million in water and wastewater utility infrastructure during the first half of 2025, representing about 55% of its planned annual investment of $93 million [9]. - The Delaware Public Service Commission approved a settlement agreement that will increase annual operating revenues by $5.5 million, effective July 3, 2025 [11]. Dividend Declaration - On July 23, 2025, the Board of Directors declared a cash dividend of $0.34 per common share, continuing a history of dividend payments since 1912 [13].

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including statements of income, balance sheets, cash flows, capital stock and long-term debt, and common stockholders' equity, along with detailed notes explaining the basis of presentation, recent developments, regulatory matters, capitalization, earnings per share, segment data, short-term borrowings, commitments, employee benefits, revenue recognition, and income taxes [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating Revenues | $49,323 | $49,146 | $93,624 | $89,670 | | Operating Income | $13,912 | $15,315 | $25,469 | $25,180 | | Net Income | $10,778 | $10,546 | $20,258 | $21,228 | | Basic EPS | $0.60 | $0.59 | $1.13 | $1.19 | | Diluted EPS | $0.60 | $0.59 | $1.13 | $1.18 | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total Assets | $1,315,890 | $1,255,174 | | Total Common Equity | $457,783 | $445,263 | | Total Capitalization | $810,219 | $799,720 | | Total Current Liabilities | $121,482 | $82,888 | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Net Cash Provided by Operating Activities | $32,086 | $17,879 | | Net Cash Used in Investing Activities | $(55,242) | $(28,737) | | Net Cash Provided by Financing Activities | $23,165 | $16,493 | | Cash, Cash Equivalents and Restricted Cash at End of Period | $4,235 | $8,025 | [Condensed Consolidated Statements of Capital Stock and Long-Term Debt](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Capital%20Stock%20and%20Long-Term%20Debt) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total Common Equity | $457,783 | $445,263 | | Total Preferred Stock | $1,352 | $1,635 | | Total Long-term Debt | $351,084 | $352,822 | [Condensed Consolidated Statements of Common Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Common%20Stockholders'%20Equity) | Metric (in thousands) | June 30, 2025 | June 30, 2024 | | :-------------------- | :------------ | :------------ | | Total Common Equity | $457,783 | $432,878 | | Common Stock Shares Outstanding | 18,016 | 17,829 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes provide essential context and detail for the condensed consolidated financial statements, covering the company's structure, recent operational and regulatory developments, capitalization activities, earnings per share calculations, segment performance, short-term financing, contractual obligations, employee benefits, revenue recognition policies, and income tax impacts [Note 1 – Basis of Presentation and Recent Developments](index=8&type=section&id=Note%201%20%E2%80%93%20Basis%20of%20Presentation%20and%20Recent%20Developments) - In April 2025, Tidewater completed the acquisition of the water utility assets of the Town of Ocean View, Delaware, for approximately **$4.6 million**, serving about **900 customers**[22](index=22&type=chunk) - The USEPA finalized drinking water regulations for PFAS in April 2024, establishing lower maximum contaminant levels (MCLs) Water systems have until April 2027 for initial monitoring and April 2029 to implement solutions, with the Company having started its strategy in 2023[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) - The Company is currently evaluating the requirements of new accounting standards, ASU 2024-03 (Disaggregation of Income Statement Expenses) effective December 31, 2027, and ASU 2023-09 (Improvements to Income Tax Disclosures) effective December 31, 2025[26](index=26&type=chunk) [Note 2 – Rate and Regulatory Matters](index=9&type=section&id=Note%202%20%E2%80%93%20Rate%20and%20Regulatory%20Matters) - Middlesex and Pinelands filed a joint petition with the NJBPU in May 2025 for corporate reorganization and in June 2025 for a **19.3% ($24.9 million)** increase in annual base revenues[27](index=27&type=chunk)[28](index=28&type=chunk) - Joint petitions were submitted in July 2025 for a Resiliency and Environmental System Improvement Charge (RESIC) Foundational Filing (up to **$3.8 million or 2.5% of revenues**) and a Distribution System Improvement Charge (DSIC) Foundational Filing (up to **$7.6 million or 5% of revenues**)[29](index=29&type=chunk)[30](index=30&type=chunk) - The NJBPU approved a Middlesex DSIC rate effective June 1, 2025, expected to generate **$1.1 million** in annual revenues, and a reset of the Purchased Water Adjustment Clause (PWAC) rate effective March 1, 2025, to recover **$0.5 million** in additional annual costs[31](index=31&type=chunk)[32](index=32&type=chunk) - In July 2025, the DEPSC approved a settlement agreement for Tidewater, increasing annual operating revenues by **$5.5 million** and requiring a refund of approximately **$1.1 million** in excess deferred income taxes[34](index=34&type=chunk) [Note 3 – Capitalization](index=11&type=section&id=Note%203%20%E2%80%93%20Capitalization) - Middlesex issued **8,130 common shares** (approx. **$0.4 million**) under its Investment Plan during the six months ended June 30, 2025[37](index=37&type=chunk) - The Company entered into an At-the-Market (ATM) Equity Offering Sales Agreement in May 2025 for up to **$110.0 million**, issuing **63,955 shares** for **$3.6 million** net proceeds through June 30, 2025[38](index=38&type=chunk) - Middlesex received NJBPU approval to borrow up to **$300.0 million** from the New Jersey SRF Program and other institutions through December 31, 2025, and filed a petition to borrow up to **$260.0 million** for 2026-2028[41](index=41&type=chunk)[42](index=42&type=chunk) Fair Value of First Mortgage Bonds (FMBs) | (Thousands of Dollars) | June 30, 2025 Carrying Amount | June 30, 2025 Fair Value | December 31, 2024 Carrying Amount | December 31, 2024 Fair Value | | :--------------------- | :------------------------------ | :----------------------- | :-------------------------------- | :----------------------------- | | FMBs | $128,857 | $127,236 | $129,602 | $125,067 | [Note 4 – Earnings Per Share](index=13&type=section&id=Note%204%20%E2%80%93%20Earnings%20Per%20Share) Earnings Per Share (EPS) | EPS Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic | $0.60 | $0.59 | $1.13 | $1.19 | | Diluted | $0.60 | $0.59 | $1.13 | $1.18 | [Note 5 – Business Segment Data](index=14&type=section&id=Note%205%20%E2%80%93%20Business%20Segment%20Data) - The Company operates in two reportable segments: Regulated (water and wastewater services in New Jersey