Core Insights - The article discusses Essential Utilities, Inc. (NYSE: WTRG) and its recent quarterly results, emphasizing progress on regulatory approvals in Pennsylvania and ongoing investments in infrastructure improvements in both water and natural gas segments [1] Regulatory Approvals - Essential Utilities has made significant progress in obtaining key regulatory approvals in Pennsylvania, which is crucial for its operational expansion and compliance [1] Infrastructure Investments - The company continues to sustain its investment in infrastructure improvements across its water and natural gas segments, indicating a commitment to enhancing service quality and operational efficiency [1]

Company Overview - The Company serves approximately 5.5 million people across nine states under the Aqua and Peoples brands[112]. Financial Performance - Consolidated operating revenues increased by $24,000 or 5.8% for the three months ended September 30, 2024, compared to the same period in 2023[132]. - Net income for the three months ended September 30, 2024, was $69,402, a decrease from $80,076 in the same period of 2023[132]. - Consolidated operating revenues decreased by $92,675 or 5.9% for the nine months ended September 30, 2024, compared to the same period in 2023[139]. - For the first nine months of 2024, revenues increased by $45,287 or 5.2%, mainly due to higher water and wastewater rates and a larger customer base[157]. Cash Flow and Debt - In the first nine months of 2024, cash flow from operations was $622,510, a decrease from $804,569 in the same period of 2023[122]. - The Company issued $1,394,411 in long-term debt during the first nine months of 2024 to finance capital expenditures and repay existing indebtedness[123]. - As of September 30, 2024, the Company had $8,436 in cash and cash equivalents, an increase from $4,612 at December 31, 2023[127]. - As of September 30, 2024, the company had $824,226 available for borrowing from its $1,000,000 unsecured revolving credit facility[128]. Capital Expenditures - Capital expenditures for the first nine months of 2024 totaled $932,498, primarily for improvements to water, wastewater, and natural gas infrastructure[123]. - The Company estimates a capital expenditure of at least $450,000 to comply with new EPA water quality standards by 2029[115]. - Approximately 6% of the Company's regulated water service systems contain lead or galvanized service lines requiring replacement, with a budget of $210,000 for this over the next five years[117]. Asset Sales and Gains - The Company sold its regulated natural gas utility assets in West Virginia for a final purchase price of $41,178, representing about 2% of its regulated natural gas customers[113]. - The Company recognized a gain of $91,236 from the sale of three non-utility local microgrid and distributed energy projects, completed in January 2024[113]. - Gain on sale of assets was $92,067 for the nine months ended September 30, 2024, compared to $184 in the same period of 2023[145]. - Gain on sale of assets was $91,581 for the nine months ended September 30, 2024, compared to $0 for the same period in 2023[179]. Expenses - Operations and maintenance expense decreased by $2,650 or 1.8% for the three months ended September 30, 2024, primarily due to the sale of regulated natural gas utility assets[133]. - Purchased gas increased by $2,505 or 15.1% for the three months ended September 30, 2024, due to higher average gas costs and usage[134]. - Operations and maintenance expense increased by $7,903 or 2.9% in the first nine months of 2024, primarily due to increased production costs and employee-related costs[158]. - Operations and maintenance expense decreased by $3,642 or 2.5% due to the sale of regulated natural gas utility assets and non-utility projects[175]. - Employee-related costs increased by $3,777, materials and supplies by $2,121, and customer assistance surcharge costs by $692[175]. Depreciation and Amortization - Depreciation and amortization expense increased by $6,566 or 7.6% due to continued capital expenditures and acquisitions[135]. - Depreciation and amortization increased by $3,182 or 5.8% in Q3 2024, attributed to ongoing capital investments and acquisitions of new utility systems[153]. - Depreciation and amortization for the first nine months of 2024 increased by $11,303 or 7.0%, driven by capital investments and acquisitions[159]. - Depreciation and amortization increased by $5,904 or 6.3% due to continued capital investment in pipe replacement[178]. Interest Expense - Interest expense, net of interest income, increased by $7,804 or 11.5% for the three months ended September 30, 2024[136]. - Interest expense, net of interest income, rose by $4,227 or 13.7% in Q3 2024 due to higher debt borrowings for the Regulated Water segment[153]. - Interest expense, net of interest income, increased by $13,231 or 14.5% in the first nine months of 2024, primarily due to higher debt borrowings[160]. Tax Rate - The effective income tax rate for the Regulated Water segment was 14.7% in Q3 2024, up from 13.9% in Q3 2023, reflecting changes in jurisdictional earnings mix[155]. - The effective income tax rate for the first nine months of 2024 was 17.1%, compared to 14.6% in the same period of 2023, due to changes in jurisdictional earnings mix and tax deductions[162]. - The effective income tax rate was a benefit of 27.9% in the first nine months of 2024, down from a benefit of 137.3% in the same period in 2023[180]. Management and Governance - The Chief Accounting Officer announced retirement effective August 2025, with a successor already appointed[186]. - No changes in internal control over financial reporting occurred during the quarter ended September 30, 2024[183]. Other - AFUDC increased by $1,489 due to the increase in the average balance of utility plant construction work in progress[178]. - The company recognized a decrease in legal expenses of $2,735 and bad debt expense of $1,207[175].

Core Viewpoint - Essential Utilities, Inc. is conducting its Q3 2024 earnings call to provide updates on long-term guidance and financial performance [3]. Group 1: Company Overview - The earnings call is hosted by Brian Dingerdissen, VP of Investor Relations and Treasurer, and features key executives including Christopher Franklin, President and CEO, and Daniel Schuller, CFO [1][5]. - The company emphasizes the availability of slides and a webcast for further details on their financial performance [3]. Group 2: Financial Reporting - The call will include discussions on forward-looking statements that may involve risks and uncertainties affecting actual results [4]. - Reference will be made to non-GAAP financial measures, with reconciliations to GAAP measures available on the company's investor relations website [4].

Financial Data and Key Metrics Changes - The company reported earnings per share (EPS) of $0.25 for Q3 2024, a decrease from $0.30 in Q3 2023, primarily due to one-time tax benefits in the previous year [23][29] - Revenues for Q3 2024 were $435.3 million, an increase of approximately 6% compared to $411.3 million in Q3 2023, driven by rate increases, surcharges, and customer growth [21][22] - Operations and maintenance (O&M) expenses decreased compared to Q3 2023, mainly due to reduced bad debt expenses and divestitures [22][26] Business Line Data and Key Metrics Changes - The regulated water segment saw revenues increase by nearly 8% in Q3 2024 compared to the same period in 2023, attributed to higher water volume due to warm and dry weather [25] - The natural gas segment experienced a minor revenue decline due to lower gas sales from warmer-than-normal weather [21][24] Market Data and Key Metrics Changes - The Pennsylvania Public Utility Commission (PUC) approved a rate case for Peoples Natural Gas, resulting in an annualized revenue increase of $93 million [9][31] - A settlement agreement for Aqua Pennsylvania is expected to yield an annualized revenue increase of $73 million, pending approval [11][35] Company Strategy and Development Direction - The company reinstated its multiyear EPS guidance at a growth rate of 5% to 7% through 2027, excluding any contributions from the DELCORA transaction [7][43] - Plans to invest approximately $7.8 billion in infrastructure improvements through 2029, focusing on water, wastewater, and natural gas systems [13][44] - The company aims to maintain affordable rates for customers while achieving growth through acquisitions and organic customer growth [47][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving EPS growth despite challenges such as elevated inflation and higher interest rates [16] - The company is optimistic about future growth opportunities, particularly in Texas and North Carolina, where significant population growth is expected [42][47] Other Important Information - The company is actively pursuing acquisitions, with signed agreements projected to add over 213,000 customers across three states [38] - Regulatory activities include pending rate cases and infrastructure surcharges in multiple states, with a total revenue request of $149.2 million [36] Q&A Session Summary Question: Equity financing expectations and timing - Management clarified that they plan to raise approximately $350 million in equity between 2024 and 2025, with flexibility in timing based on market conditions [51][52] Question: Clarification on EPS growth starting point - The starting point for the 5% to 7% EPS growth CAGR is expected to be close to the 2024 guidance midpoint, which is still being finalized [64] Question: PFAS-related costs and recovery mechanisms - Management indicated that they expect to recover PFAS-related costs through various regulatory mechanisms, including deferred accounting treatment [80][81] Question: Timeline for the Peoples Gas appeal - The appeal process is expected to take about a year, with management confident in the strength of the PUC's decision [82][85] Question: Water rate increase implementation - The $73 million water and wastewater base rate increase from the settlement will be implemented all at once in February 2025 [87]

Core Insights - Essential Utilities Inc. (WTRG) reported third-quarter 2024 operating earnings per share (EPS) of 25 cents, exceeding the Zacks Consensus Estimate of 23 cents by 8.7%, but down 16.7% from 30 cents in the same quarter last year [1][2] Financial Performance - Total operating revenues reached $435 million, surpassing the Zacks Consensus Estimate of $420 million by 3.8%, and reflecting a year-over-year increase of 5.8% [2] - Operating income was $155.1 million, marking a 12.9% increase year over year, while interest expenses rose by 11.9% to $76.9 million from $68.6 million in the prior-year quarter [3] - Current assets were reported at $373.9 million as of September 30, 2024, down from $492 million as of December 31, 2023, and long-term debt increased to $7.23 billion from $6.82 billion during the same period [5] Operational Highlights - Operation and maintenance expenses decreased by 1.8% to $144.4 million compared to $147 million in the previous year, attributed to lower bad debt expenses and reduced costs from the sale of West Virginia gas utility and energy plant assets [2] - The company signed seven purchase agreements to acquire additional wastewater systems, which will add 213,000 retail customers [3] Regulatory and Investment Activities - The regulated water segment received rate awards or infrastructure surcharges totaling $51 million across several states, while the regulated natural gas segment received $21.8 million in infrastructure surcharges [4] - Essential Utilities invested $932.5 million in the first nine months of 2024 to enhance its regulated water and natural gas infrastructure [6] Future Guidance - The company reaffirmed its 2024 EPS guidance range of $1.96-$2, with the Zacks Consensus Estimate at $1.99, and expects 2025 EPS to be between $2.05 and $2.11 [7] - Plans to invest $1.4-$1.5 billion in infrastructure in 2025 and $8 billion from 2025 to 2029 to improve systems and customer service [8] - Long-term earnings per share are projected to grow at a compounded annual growth rate of 5% to 7% through 2027 [8] Market Position - Essential Utilities currently holds a Zacks Rank 2 (Buy), indicating a favorable outlook in the market [9]

Exhibit 99.1 Essential Utilities Reports Financial Results for Q3 2024 Earnings per share of $0.25 for Q3 2024 Company reinstates multi-year earnings guidance of 5-7% PUC approval of Peoples Natural Gas rate case Settlement reached for Aqua Pennsylvania rate case BRYN MAWR, PA (November 4, 2024) – Essential Utilities Inc. (NYSE: WTRG) today reported results for the third quarter ended September 30, 2024. Essential's net income was $69.4 million or $0.25 per share for the third quarter of 2024. Essential als ...

February 2024 NYSE LISTED WTRG Third Quarter 2024 November 5, 2024 | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | 2 Forward Looking Statement 3 This presentation contains in addition to historical information, forward looking statements based on assumptions made by management regarding future circumstances over which the company may have little or no control, that involve risks, uncertainties and other factors that may cause actual r ...

Essential Utilities (WTRG) came out with quarterly earnings of $0.25 per share, beating the Zacks Consensus Estimate of $0.23 per share. This compares to earnings of $0.30 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.70%. A quarter ago, it was expected that this water utility would post earnings of $0.30 per share when it actually produced earnings of $0.28, delivering a surprise of -6.67%.Over the last four quarters, the ...

A woman fills a glass with tap water. Kemal Yildirim/E+ via Getty Images In dividend growth investing, it is often said that the safest dividend is the one just raised. I generally agree with this maxim. This is most especially true when a payout hike is entirely supported by a company's fundamentals. Put another way, dividend boosts are sustainable when the following conditions are met: 1. The balance sheet is strong and stable. 2. Earnings consistently move higher and the growth outlook remains promising. ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON DC 20549 FORM 10-Q (Mark One) S QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended June 30, 2024 £ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from_______________ to _______________ | --- | --- | |---------------------------------------------------------------------------------------------|- ...