Financial Performance & Outlook - American Water's Q4 2017 adjusted EPS was $0.69, compared to $0.57 in Q4 2016[15] - Full year 2017 adjusted EPS was $3.03, up from $2.84 in 2016[15] - The company affirms a long-term EPS compound annual growth rate (CAGR) of 7-10%[11, 26] - 2018 GAAP EPS guidance range is $3.22-$3.32[11, 41, 42] Impact of Tax Reform - Tax reform is expected to be accretive to earnings on a long-term basis[27, 34, 46] - The company anticipates a reduction in the federal tax rate from 35% to 21%[33] - Tax reform is expected to be earnings neutral due to rate base increase from lower deferred taxes[33] Capital Investment & Efficiency - The company is targeting $8.0 - $8.6 billion in five-year capital investment[11, 28, 36, 46] - The company is focused on improving O&M efficiency through technology, supply chain, and cost management[11, 28, 46] - The company is aiming for a 32% Regulated O&M Efficiency Ratio target by 2022[56, 57] Regulated Business & Acquisitions - Pennsylvania rate case settlement approved for additional annualized revenues of $62 million[53] - The company has closed 16 acquisitions in 2017, serving 39,514 customers[55, 109] - The company has pending acquisitions that will serve approximately 23,000 customers[55, 111]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $12.5 million, an increase of $800,000 or 7.3% compared to Q1 2024, primarily due to a 4.3% increase in active service connections and increased consumption [15] - Operating expenses for Q1 2025 were $11.2 million, up from $10.3 million in Q1 2024, representing an increase of approximately $900,000 or 8.3% [16] - Net income for Q1 2025 was $600,000 or $0.02 per diluted share, compared to $700,000 or $0.03 per diluted share in Q1 2024 [17] - Adjusted EBITDA for Q1 2025 was $5.6 million, an increase of approximately $200,000 or 4.4% compared to Q1 2024 [18] - The company raised $32 million in equity capital in March 2025 and extended its line of credit to May 2027, increasing it from $15 million to $20 million, resulting in over $50 million of liquidity [19] Business Line Data and Key Metrics Changes - Total active service connections increased by 4.3% to 65,163 as of March 31, 2025, compared to the previous year [5] - The company invested $15.2 million year-to-date into infrastructure improvements and existing utilities [6] Market Data and Key Metrics Changes - The single-family dwelling unit market in the Phoenix area saw a 15% decrease in building permits in Q1 2025 compared to Q1 2024, with 6,406 permits issued [7] - The City of Maricopa experienced a 41.5% decrease in single-family building permits in Q1 2025 compared to Q1 2024, with 190 permits issued [7] - Despite the pullback in permit data, the company believes this is temporary due to ongoing housing shortages and strong population growth in Arizona [8] Company Strategy and Development Direction - The company remains bullish on future growth potential in the Inland Port Arizona service area, with significant industrial investments expected [12] - The company plans to leverage organic connections, new greenfield utilities, acquisitions, and rate cases to drive growth [14] - The company aims to expand its total water management platform and apply its expertise across regional service areas [25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged mixed economic conditions but expressed confidence in the company's ability to improve utility metrics despite these challenges [24] - The company expects continued strong growth in customer connections, revenue, and earnings driven by strategic investments and rate increases [24] Other Important Information - The Arizona Corporation Commission approved new rates for the Farmers Water Utility, effective May 1, 2025, which will positively impact future quarters [20] - The company filed a rate case for Santa Cruz and Palo Verde, requesting a net revenue increase of $6.5 million, with hearings scheduled for December 2025 [21] Q&A Session Summary Question: What is the outlook for the housing market in Arizona? - Management noted that while there has been a decrease in single-family permits, the overall demand for housing remains strong due to population growth and job opportunities [8] Question: How does the company plan to address inflation and cost increases? - Management indicated that new rates from recent rate cases will help address cost increases and support earnings growth [14]

Financial Data and Key Metrics Changes - Consolidated earnings per share for Q1 2025 were $0.70, an increase from $0.62 in Q1 2024, attributed to favorable decisions from the CPUC regarding new water and electric rates [7][8] - Consolidated revenues for Q1 increased by $12.7 million compared to the same quarter last year [9] - Net cash provided by operating activities was $45.1 million for the quarter, slightly down from $45.8 million in the same quarter last year [13] Business Line Data and Key Metrics Changes - Water utility earnings increased to $0.52 per share from $0.48 per share, primarily due to new water rates [8] - Electric segment earnings rose to $0.07 per share from $0.05 per share, driven by new electric rates [9] - ASUS earnings remained stable at $0.13 per share, with increased management fee revenues offset by decreased construction activity [23] Market Data and Key Metrics Changes - Revenues for the water segment increased by $11.7 million due to new 2025 water rates [10] - Electric segment revenues increased by $2.8 million, also due to new rates [10] - Revenues from ASUS decreased by $1.8 million, primarily due to lower construction activities impacted by unfavorable weather [11] Company Strategy and Development Direction - The company plans to invest $170 million to $210 million in infrastructure in 2025, with a focus on capital projects approved by the CPUC [7][15] - Golden State Water is transitioning to a modified rate adjustment mechanism, which may introduce future revenue volatility [19][20] - The company anticipates sustained growth in its rate base due to recent regulatory approvals [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the regulatory environment, noting successful rate case outcomes and ongoing investments [17][22] - There is uncertainty regarding future military base privatizations, with expectations of potential opportunities in 2025 [33][34] - The company remains committed to maintaining a strong dividend growth rate, exceeding its long-term goals [25] Other Important Information - The company raised $25.8 million through its at-the-market offering program in Q1 2025 [15] - Credit facility terms were extended, and borrowing capacity increased from $165 million to $195 million [16] Q&A Session Summary Question: Equity raise expectations for 2025 - Management confirmed a target of raising approximately $60 million over the full year 2025, with reassessment based on credit facility capacity [28][29] Question: Update on military base privatization efforts - Management indicated no current fifty-year privatizations are available, but potential Army privatizations may arise later in the year [32][33] - The Navy is actively pursuing privatization opportunities, with ongoing efforts to secure contracts [34][35] Question: Nature of nontraditional contracts - Management noted that fifteen-year contracts may be easier for bases to manage compared to fifty-year contracts, with ongoing pursuits in this area [41][42]

Financial Data and Key Metrics Changes - The company reported adjusted net income of $91.8 million or $2.28 per share for Q1 2025, compared to $63.8 million or $1.69 per share for the same period in 2024, reflecting strong results across all business segments [12][25][26] - The combined utility customer growth rate was 9.6% for the twelve months ended March 31, 2025, primarily driven by the acquisition of Sea Energy, which added approximately 73,000 gas meters in Texas [13][26] Business Line Data and Key Metrics Changes - The Northwest Natural Gas Utility segment saw net income increase by $21.5 million or $0.42 per share, with margin increasing by $38.7 million due to new rates effective November 1, 2024 [26] - Sea Energy contributed net income of $5.5 million or $0.14 per share for Q1 2025, meeting expectations for the quarter [27] - The Northwest Natural Water segment's net income increased by $2.4 million or $0.06 per share, driven by new rates and additional revenues from acquisitions [28] Market Data and Key Metrics Changes - The company expects to invest approximately $60 million in water utilities in 2025 to replace aging infrastructure and improve treatment facilities [21] - The company anticipates a quarterly profile for 2025 to be similar to previous years, with the majority of revenues generated in the first and fourth quarters during winter heating months [29] Company Strategy and Development Direction - The company is focused on expanding its customer base and enhancing service reliability through strategic acquisitions, such as the recent acquisition of Hughes Gas Resources for $60 million [18][19] - The company plans to refresh rates at multiple water utilities in 2025, primarily related to recovering critical infrastructure investments [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance, reaffirming annual adjusted earnings guidance in the range of $2.75 to $2.95 per share [29] - The company highlighted the importance of its gas distribution and storage infrastructure in the Pacific Northwest, emphasizing its role in providing reliable and cost-effective energy solutions [24] Other Important Information - The company has a liquidity of over $600 million as of March 31, 2025, with significant availability on lines of credit and cash on hand [32] - The company completed a $325 million junior subordinated debenture issuance to secure financing for the Sea Energy transaction [33] Q&A Session Summary Question: What is the outlook for water utilities in 2025? - Management indicated that the increase in Q1 results is largely driven by rate case activity from last year, with expectations for continued growth and earnings contribution from Northwest Natural Water [36][37] Question: Is the Hughes acquisition similar to Sea Energy in terms of customer base? - Management confirmed that the Hughes acquisition primarily consists of residential and commercial customers, similar to Sea Energy, and provides geographic overlap for operational synergies [39][40]

Financial Performance - Q1 2025 GAAP earnings were $0.90 per share, compared to $0.66 per share in Q1 2024[10] - Adjusted Operating Earnings* for Q1 2025 were $0.92 per share, versus $0.68 per share in Q1 2024[10] - Exelon is affirming its 2025 EPS* guidance of $2.64 - $2.74 per share[11] - The company is reaffirming its 2024-2028 EPS* CAGR of 5-7%, expecting to be at the midpoint or better[11] - Exelon anticipates a 7.4% rate base growth resulting from $38 billion of capital investment, with a potential $10-15 billion transmission opportunity beyond the plan[11] Regulatory and Strategic Developments - State legislative sessions are featuring energy bills focused on energy security and affordability[11] - Maryland passed laws supporting energy security, providing rules for large load customers, assisting customer affordability, and refining tools to support timely cost recovery[11] - Exelon has a Q4 pipeline of 17+ GW of anticipated large load, driving incremental investment opportunities beyond the plan, with an additional 16 GW undergoing analysis and design in Q1 2025[11] - Filed base distribution rate cases for 2025 account for approximately 5% of Exelon's consolidated rate base[18] Financial Strategy - Approximately 60%, or $425 million, of 2025's annualized equity need of $700 million has been priced for issuance this year, supporting a balanced funding strategy for the capital investment plan through 2028[11] - Exelon executed approximately 50% of its 2025 debt financing needs in Q1, including $1 billion of hybrid debt, which receives 50% equity credit[27]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $3.6 per share for Q2 FY 2025, an increase from $3.45 per share in the same quarter last year, reflecting strong growth in utility and midstream segments [7] - Adjusted earnings for the quarter totaled over $214 million, an increase of almost $18 million compared to the previous year [17] - The Gas Utilities segment had earnings of approximately $195 million, over $7 million higher than last year, driven by increased ISRS revenues and usage [18] Business Line Data and Key Metrics Changes - The utility CapEx increased nearly 27% year over year, focusing on upgrading distribution infrastructure and connecting more homes to natural gas [14] - Midstream segment earnings showed strong growth due to new contracts and higher rates on contract renewals [19] - Marketing segment earnings were strong but slightly lower than the prior year due to reduced market volatility [20] Market Data and Key Metrics Changes - The labor market in St. Louis has fully recovered, reaching pre-pandemic employment levels, which is expected to drive economic growth [12] - The Missouri Public Service Commission staff recommended a $19 million revenue increase in the infrastructure system replacement surcharge [8] Company Strategy and Development Direction - The company remains focused on organic growth, infrastructure investment, and continuous improvement, with a long-term EPS growth target of 5% to 7% [11][26] - A ten-year capital investment plan of $7.4 billion is in place to support growth [11] - The company is committed to modernizing systems and enhancing regulatory engagement to maximize value for stakeholders [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal 2025 adjusted earnings guidance of $4.4 to $4.6 per share, despite challenges from weather-related margin headwinds [22][26] - The company is focused on executing its capital investment plan and driving operational excellence to strengthen utility and gas-related business performance [11][26] Other Important Information - The company is increasing its fiscal 2025 capital investment target by $50 million to $840 million, with significant investments in both utility and midstream segments [14] - The Missouri rate case is ongoing, with proposed revenue increases and discussions on weather mechanisms being a key focus [15][42] Q&A Session Summary Question: Can you speak about 1H trends and full-year guidance? - Management acknowledged margin weakness in Missouri and adjusted guidance accordingly, while midstream performance exceeded expectations [31][32] Question: What are the prospects for a settlement within the rate case? - Management indicated that settlement discussions are anticipated, with community meetings and public hearings scheduled [46] Question: Can you elaborate on the weather mechanism in the rate case? - Management confirmed that the weather mechanism is a significant focus and they are working on options to address it with stakeholders [42][44] Question: How does the passage of SB4 affect future rate cases? - Management stated that the first opportunity to file based on a future test year will be in July 2026, and they are focused on the current rate case [51][53] Question: How does the guidance modification reflect the utility business's earnings power? - Management confirmed that fixing the weather mechanism could restore earnings power, while midstream and marketing businesses show slight structural uplift [61][64]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $3.6 per share for Q2 FY 2025, an increase from $3.45 per share a year ago, reflecting strong growth in utility and midstream segments [8][12] - Adjusted earnings for the quarter totaled over $214 million, an increase of almost $18 million compared to the previous year [18] - The Gas Utilities segment had earnings of approximately $195 million, over $7 million higher than last year, driven by increased ISRS revenues and usage [19] Business Line Data and Key Metrics Changes - The utility CapEx increased nearly 27% year over year, focusing on upgrading distribution infrastructure and connecting more homes to natural gas [15] - Midstream segment earnings showed strong growth due to new contracts and higher rates on contract renewals [19] - Marketing segment earnings were strong but slightly lower than the prior year due to reduced market volatility [19] Market Data and Key Metrics Changes - The company experienced colder temperatures in both Missouri and Alabama compared to last year, impacting volumetric margins [20] - The weather mitigation adjustment in Missouri was ineffective, leading to misalignment between revenues and usage [20] Company Strategy and Development Direction - The company is focused on organic growth, infrastructure investment, and continuous improvement, with a long-term EPS growth target of 5% to 7% [12][27] - A ten-year capital investment plan of $7.4 billion is in place, with an increased fiscal 2025 capital investment target of $840 million [15][12] - The company aims to modernize systems and enhance regulatory engagement to maximize value for customers and stakeholders [7][12] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal 2025 adjusted earnings guidance of $4.4 to $4.6 per share, despite challenges from weather-related margin headwinds [12][22] - The company is committed to executing its capital investment plan and driving operational excellence [12][27] - Management highlighted the positive economic developments in St. Louis, including job growth from Boeing's new contracts [13] Other Important Information - The Missouri Public Service Commission staff recommended a $19 million revenue increase in the infrastructure system replacement surcharge [10] - Senate Bill four was signed into law, allowing utilities to set rates based on projected costs, which is expected to enhance system reliability [11] Q&A Session Summary Question: Can you speak about 1H trends and full-year guidance? - Management acknowledged margin weakness in Missouri but noted strong performance in the midstream segment, indicating a mixed outlook for the utility business [32][34] Question: Is weather the sole deviation on the utility side? - Management confirmed that weather-related margin issues were the main driver of the deviation, with some minor additional factors [34] Question: Is the $8 million increase in midstream guidance a one-off? - Management indicated that while there is some optimization contributing to the increase, it suggests a potential uplift in run rate over time [36] Question: What are the prospects for a settlement within the rate case? - Management expressed optimism about engaging in constructive discussions with stakeholders regarding the rate case [48][49] Question: Timing on future rate cases after SB4? - Management clarified that the first opportunity to file based on a future test year would be in July 2026, with current focus on the ongoing rate case [56] Question: Will there be a rulemaking process before filing for a future test year? - Management confirmed that rulemaking is required and they will actively participate once it begins [72]