CAMDEN, N.J.--(BUSINESS WIRE)-- #AmericanWater--American Water (NYSE: AWK), the largest regulated water and wastewater utility company in the U.S., showcased its customer experience leadership at the 2025 J.D. Power Utility Client Conference, held September 10 – 11 in Denver, Colorado. Lauren Slepian, Director, Customer Strategy, Innovation and Performance at American Water, spoke on the company's approach to transforming the customer experience through strategy, journey mapping and data-driven improvements ...

Financial Data and Key Metrics Changes - Earnings per share (EPS) for Q2 2025 were $1.48, up from $1.42 in Q2 2024, while year-to-date EPS was $2.53, compared to $2.37 in the same period of 2024 [5][11] - The company expects to achieve the top half of its initial EPS guidance range for 2025, now narrowed to $5.7 to $5.75 per share [6][17] - Total debt to capital ratio was 58%, within the target of less than 60% [18] Business Line Data and Key Metrics Changes - The company invested $1.3 billion in capital projects year-to-date, reflecting strong execution by teams [6][20] - Operating and maintenance costs increased by $0.17 per share, primarily due to employee-related expenses and technology costs [10][11] Market Data and Key Metrics Changes - Revenue increases were driven by authorized rate increases and organic customer growth, with a revenue increase of $0.50 per share year-over-year [9][11] - Weather had an unfavorable impact estimated at $0.06 per share due to wet conditions in 2025 [10] Company Strategy and Development Direction - The company aims for long-term earnings and dividend growth of 7% to 9%, supported by a capital growth plan focused on water and wastewater infrastructure [8][18] - The company is pursuing acquisitions to expand its customer base, with 87,000 customer connections under agreement totaling over $500 million [7][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving consistent EPS growth within the 7% to 9% range through 2029 and beyond [18] - The company noted strong customer usage and regulatory execution as key drivers of performance in 2025 [17][53] Other Important Information - The company has several active rate cases in progress across multiple jurisdictions, including West Virginia and California, seeking significant revenue increases [12][15] - A decoupling bill related to water utilities has passed out of the California Senate and is awaiting action in the Assembly [16][44] Q&A Session Summary Question: How is the company managing stakeholder relationships in Pennsylvania ahead of the next rate case? - Management has been actively engaging with stakeholders and providing excellent customer service to maintain positive relationships [25][26] Question: Is the company considering forward equity issuance for 2026 needs? - The company is evaluating all options but plans to issue equity in 2026 [27][28] Question: What is the earnings potential of the Nexus acquisition compared to municipal M&A? - The Nexus acquisition is seen as a strategic opportunity to expand the customer base in existing states, with no expected negative impact on profitability [31][32][35] Question: What is the landscape for fair market value deals in Pennsylvania? - The company anticipates more fair market value deals and is actively managing a pipeline of acquisitions [37][41] Question: Can you elaborate on the decoupling bill in California? - The bill aims to facilitate full decoupling for California water utilities, pending further legislative approval [43][46]

Financial Data and Key Metrics Changes - Earnings per share (EPS) for Q2 2025 were $1.48, up from $1.42 in Q2 2024, while year-to-date EPS was $2.53, an increase from $2.37 in the same period of 2024 [5][11] - The company expects to achieve the top half of its initial EPS guidance range for 2025, now narrowed to $5.7 to $5.75 per share [6][16] - Total debt to capital ratio was 58%, within the target of less than 60% [17] Business Line Data and Key Metrics Changes - Consolidated revenues increased by $0.50 per share due to authorized rate increases and organic customer growth [9] - Operating and maintenance (O&M) costs rose by $0.17 per share, primarily due to employee-related expenses and technology costs [10] - Capital investments totaled $1.3 billion year-to-date, with a goal of approximately $3.3 billion for 2025 [19] Market Data and Key Metrics Changes - The company reported unfavorable weather impacts estimated at $0.06 per share year-over-year, with wet weather in 2025 affecting revenues [10][11] - The company has 87,000 customer connections under agreement, totaling over $500 million across its business development platform [6][20] Company Strategy and Development Direction - The company aims for long-term earnings and dividend growth of 7% to 9%, driven by 8% to 9% rate base growth [7][17] - The acquisition of NEXUS Water Group systems is expected to add nearly 47,000 customer connections and approximately $200 million to the rate base [6][20] - The company is pursuing regulatory execution and infrastructure investments to enhance shareholder returns [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving consistent EPS growth within the 7% to 9% range through 2029 and beyond [17] - The company anticipates continued revenue increases year-over-year in several states through Q3 2025 [16] - Management highlighted the importance of stakeholder relationships in Pennsylvania ahead of the next rate case application [25][26] Other Important Information - The company has filed general rate cases in multiple jurisdictions, including West Virginia, Kentucky, and California, seeking additional annual revenue [12][14][15] - A decoupling bill related to water utilities has passed out of the California Senate and is awaiting action in the Assembly [15][46] Q&A Session Summary Question: How is the company managing stakeholder relationships in Pennsylvania? - The company has been actively engaging with stakeholders and providing excellent customer service to maintain positive relationships ahead of the next rate case application [25][26] Question: Is the company considering forward issuance for equity needs in 2026? - The company is evaluating all options for equity issuance but plans to issue equity in 2026 [28] Question: What is the earnings power of the Nexus acquisition compared to municipal M&A? - The Nexus acquisition is seen as a strategic opportunity to expand the customer base in existing service areas, with no expected negative impact on profitability [32][36] Question: What is the landscape for fair market value deals in Pennsylvania? - The company expects more fair market value deals to emerge, indicating ongoing consolidation needs in the region [42] Question: What are the goals of the decoupling bill in California? - The bill aims to close gaps in the regulatory framework for decoupling, with hopes for it to pass through the legislature [46][47] Question: What drove the strength in 2025 guidance? - Strong customer usage and consistent regulatory execution were the primary drivers for the improved guidance [53][54]

Summary of H2O America's Conference Call Company and Industry - **Company**: H2O America - **Industry**: Water and wastewater utility services Key Points and Arguments 1. **Acquisition Announcement**: H2O America announced the acquisition of QuadVest, a family-owned water and wastewater utility in Southeast Texas, for a total of $540 million, which will enhance H2O America's operations in Texas [6][9][21] 2. **Strategic Importance**: The acquisition positions Texas Water and QuadVest as the second largest investor-owned water and wastewater utility in Texas, allowing for strategic diversification and expansion in a fast-growing region [6][8][19] 3. **Customer Base Growth**: The acquisition adds over 47,000 connections and is expected to increase Texas customer connections from approximately 7% of H2O America's total in 2024 to about 26% by 2029 [9][18] 4. **Investment Plans**: H2O America plans to invest over $500 million across Texas Water and QuadVest in the next five years to drive growth and improve service reliability [20][21] 5. **Long-term Growth Outlook**: The transaction is expected to be accretive to earnings per share (EPS) and credit metrics by 2028, enhancing H2O America's long-term growth profile [21][22] 6. **Regulatory Environment**: The acquisition is subject to customary closing conditions, including approvals from the Public Utility Commission of Texas, and is structured as a debt-free transaction [22][23] 7. **Operational Synergies**: The combination is expected to create operational efficiencies and enhance service delivery through shared resources and expertise [60][63] 8. **Market Positioning**: H2O America will have a presence in seven of the 50 fastest-growing counties in the U.S., significantly improving its growth prospects [18][71] Additional Important Content 1. **Community Impact**: The leadership expressed condolences for those affected by recent flooding in Texas, emphasizing the company's commitment to supporting the state [5][12] 2. **Financial Structure**: The acquisition will be financed through a combination of equity and debt, with plans to issue $350 million to $450 million in common equity and $100 million to $200 million in debt [22][42] 3. **Wholesale Business Insights**: The acquisition includes a significant wholesale business, which operates under long-term contracts, providing additional growth opportunities [54][60] 4. **Drought Considerations**: The company discussed the impact of Texas's drought conditions on its operations, highlighting the diversity of water resources in different regions [66][68] This summary captures the essential details and strategic implications of H2O America's conference call regarding the acquisition of QuadVest, reflecting the company's growth strategy and commitment to enhancing service delivery in Texas.

Core Viewpoint - H2O America is acquiring Quadvest, significantly increasing its connections in Texas and enhancing its operational scale and financial diversification, with expectations for long-term EPS growth and positioning Texas as its second-largest utility operation by 2028 [1][4][7]. Company Overview - H2O America operates a national network of local water and wastewater utilities, focusing on delivering clean, high-quality water to communities [13][15]. - Quadvest is a major water and wastewater utility in Texas, serving over 47,000 active connections and having a strong development pipeline in the Houston area [2][16]. Transaction Details - The acquisition involves TWC acquiring regulated systems from Quadvest for $483.6 million and TWOS acquiring systems for $56.4 million, totaling $540 million [7]. - The transaction will be financed through a mix of privately placed debt and equity, ensuring H2O America maintains a strong balance sheet [7]. Strategic Implications - The combination is expected to increase H2O America's customer base in Texas from approximately 17% to 26% by 2029, enhancing its presence in one of the fastest-growing regions [3]. - The merger will create the second-largest investor-owned water and wastewater utility in Texas, with a combined active pipeline of about 96,000 connections under contract [3][4]. Future Plans - H2O America plans to invest over $500 million in Texas over the next five years, increasing its consolidated five-year capital spending plan to approximately $2.1 billion, a 6% increase [3][7]. - The leadership of TWC will remain intact, with Aundrea Williams continuing as president, ensuring continuity in operations and community engagement [6][5].

Core Viewpoint - H2O America has appointed Megan Mattern as Chief Accounting Officer, Principal Accounting Officer, and Controller, effective July 28, 2025, during a period of leadership transition and growth for the company [1][5]. Group 1: Leadership Transition - Eric W. Thornburg, the current Chair, President, and CEO, will retire on June 30, 2025, with Andrew F. Walters, the Chief Financial Officer and Treasurer, set to become the new CEO [2][5]. - Ann P. Kelly, the current Chief Accounting Officer, will assume the role of CFO effective July 1, 2025 [5]. Group 2: Megan Mattern's Background - Megan Mattern brings over 20 years of experience in complex, regulated environments, particularly in global energy, utilities, and infrastructure [2]. - She previously served as Vice President and CFO of UGI International, a $2.3 billion multinational LPG distributor, where she led financial strategy across 16 countries and achieved over 15% EBIT growth [2][3]. - Mattern has held senior financial leadership roles at UGI Energy Services, UGI Utilities, and PPL Corporation, focusing on M&A, systems modernization, and financial transformation [3]. Group 3: Company Overview - H2O America is a national investor-owned network of local water and wastewater utilities, committed to delivering clean, high-quality water to communities [7]. - The company operates approximately 407,000 water and wastewater service connections and focuses on investing in critical infrastructure for sustainable water supply [8]. - H2O America serves over 1.6 million people through its regional utilities, including Connecticut Water, Maine Water, San Jose Water, and Texas Water [9].

Core Insights - The utilities sector has shown resilience amid market volatility in 2025, emerging as a stable source of dividend income and defensive investment [1][3] - The Utilities Select Sector SPDR Fund (XLU) has returned 8% year-to-date, outperforming the S&P 500, which is up under 2% [2] Company Highlights - Artesian Resources Corp. has seen a year-to-date share price increase of about 10%, with a dividend yield of 3.65% and an annual dividend of $1.23 [4][5] - The company reported an earnings per share (EPS) of 53 cents, exceeding analyst predictions by 18 cents, and quarterly revenue also surpassed expectations [5] - Artesian's revenue growth is attributed to an increase in customer count and a new distribution system improvement charge, with non-utility revenue growing by 8% year-over-year [6] - An anticipated rate increase later this year is expected to support continued revenue growth and maintain the company's attractive dividend yield [7] Additional Company Insights - Clearway Energy Inc. has a dividend yield of 5.85% and an annual dividend of $1.75, with a focus on renewable energy and battery storage operations [8][9] - Clearway reported an EPS beat, coming in at 3 cents per share, with adjusted EBITDA for its renewables and storage segment climbing by about 30% year-over-year [9] - NiSource Inc. has seen its shares rise over 8% year-to-date, with an EPS growth target of 6-8% and plans to invest $19 billion in renewable energy projects [12][13]