Essential Utilities(WTRG) - 2024 Q4 - Annual Results

Financial Performance - Essential Utilities reported a 17% increase in earnings per share to $2.17 for the full year 2024, compared to $1.86 in 2023[1] - The company achieved revenues of $2,086.1 million for 2024, a 1.6% increase from $2,053.8 million in 2023[3] - Operating revenues for Q4 2024 reached $604,383 thousand, a 26% increase from $479,419 thousand in Q4 2023[32] - Net income for Q4 2024 was $184,755 thousand, up 36% from $135,448 thousand in Q4 2023[32] - Basic and diluted net income per common share for Q4 2024 was $0.67, compared to $0.50 in Q4 2023, representing a 34% increase[32] - The company reported an adjusted income of $540,898 thousand for the year ended December 31, 2024[40] Revenue Segments - The regulated water segment generated revenues of $1,221.9 million, reflecting a 5.9% increase compared to $1,153.3 million in 2023[5] - The regulated natural gas segment reported revenues of $843.0 million, down from $863.8 million in 2023, primarily due to lower purchased gas costs[6] Investments and Infrastructure - Essential invested approximately $1.3 billion in infrastructure improvements in 2024, including mitigation of PFAS contamination at 13 sites[15] - The company expects to invest $1.4 to $1.5 billion in infrastructure in 2025 and approximately $7.8 billion from 2025 to 2029[16] - The company has signed purchase agreements for additional water and wastewater systems expected to serve over 210,000 equivalent customers, totaling over $344.0 million[19] Growth Projections - Essential's multi-year earnings guidance indicates a compounded annual growth rate of 5-7% in earnings per share through 2027[3] - The average annual long-term growth rate for the water utility customer base is projected to be between 2-3% for acquisitions and organic growth[32] Equity and Debt - Total equity increased to $6,198,809 thousand in 2024 from $5,896,183 thousand in 2023, reflecting a growth of approximately 5%[42] - Long-term debt, net of debt issuance costs, rose to $7,368,381 thousand in 2024 from $6,826,085 thousand in 2023[42] - The company plans to raise approximately $315 million in equity through the At-The-Market equity program in 2025[32] Environmental Goals - The company aims to reduce Scope 1 and 2 greenhouse gas emissions by 60% by 2035 from its 2019 baseline[22] - The company aims to reduce Scope 1 and Scope 2 greenhouse gas emissions by 60% by 2035 from the 2019 baseline[32] Other Notable Events - The company experienced a gain of $91,236 thousand from the sale of non-utility local microgrid and distributed energy projects in Q1 2024[37] - Essential's board declared a quarterly cash dividend of $0.3255 per share, payable on June 2, 2025[9]