Essential Utilities (NYSE:WTRG) Earnings Call Presentation

Transaction Overview - The merger is a tax-free, all-stock transaction with a fixed exchange ratio of 0.305 American Water (AWK) shares for each Essential Utilities (WTRG) share[16] - The combined company will have a market capitalization of $40 billion and an enterprise value of $63 billion[16] - AWK shareholders will own 69% and WTRG shareholders will own 31% of the combined company[16] Financial and Growth Outlook - The merger aims for a long-term EPS growth target of 7%-9% and a DPS growth target of 7%-9%[16, 26] - The combined company anticipates a rate base growth of 8%-9%, including acquisitions, with 2% customer additions from regulated acquisitions[26] - The combined company's 5-year capital investment plan is $28 billion[42] Combined Company Profile - The combined company will serve 5.4 million U S connections across 17 regulated states[29, 33] - The combined rate base for 2024A is $34 billion, expected to grow to $41 billion by 2026E[29] - American Water's existing dividend policy will be maintained[16] Strategic Benefits - The merger creates a top 10 large-cap pure-play utility with a combined equity market cap of $40 billion[25] - The merger expands the company's footprint to 17 states and 18 military installations[49] - The merger enhances financial strength with stable cash flows and a strengthened balance sheet[50]