Essential Utilities Rides on Investments & Expanding Customer Base

Core Viewpoint - Essential Utilities (WTRG) is experiencing growth through acquisitions, organic ventures, and capital expenditures, which are enhancing its water and wastewater operations [1] Group 1: Investment Plans and Infrastructure - The company plans to invest $7.8 billion from 2025 to 2029 to improve its water and natural gas systems, with an investment of $1.4-$1.5 billion in infrastructure planned for 2025 [2][8] - Essential Utilities has expanded its utility operations significantly since 2015, completing numerous acquisitions that have added over 129,000 customers, with five pending acquisitions expected to add more than 210,000 customers [4][8] Group 2: Operational Stability and Emission Reduction - A majority of the water distributed by the company is self-sourced, which contributes to business stability, and the company aims to reduce annual Scope 1 and 2 emissions by 60% by 2035 compared to 2019 levels [3] - The focus on new and advanced assets is expected to lower operational costs [3] Group 3: Challenges and Risks - Water utilities face risks related to water contamination, which can lead to service disruptions and additional costs for testing and treatment [5] - Weather fluctuations, such as cooler winters and increased rainfall, can negatively impact water demand and the company's performance [6] Group 4: Stock Performance - Over the past six months, WTRG's shares have increased by 3.8%, which is lower than the industry's growth of 17.6% [7][8]