New Jersey American Water Reports More Than $507 Million in System Investments Statewide in 2023

Rhea-AI Summary

American Water Works (AWK) announces a 10% increase in quarterly dividend, showing strong financial stability and commitment to shareholders.

Positive

• American Water Works (AWK) has declared a 10% increase in its quarterly cash dividend from $0.55 to $0.60 per share.
• This move reflects the company's strong financial position and commitment to delivering value to its shareholders.
• American Water Works has a consistent track record of increasing dividends, providing investors with a reliable income stream.
• The dividend increase demonstrates the company's confidence in its ability to generate sustainable cash flows and support future growth initiatives.

Negative

• None.

CAMDEN, N.J.--(BUSINESS WIRE)-- New Jersey American Water recently announced its 2023 end-of-year investment total for system improvements. More than $507 million was invested to fund critical system upgrades and improvement projects across the company’s service areas throughout the year.

“This year’s wide-ranging system improvements reflect our commitment to making prudent investments to continue the delivery of safe, affordable and reliable water and wastewater service to customers,” said Mark McDonough, president of New Jersey American Water. “From source to tap and back to the source again, our team of professionals works hard to maintain our facilities to keep them operating efficiently, meeting regulatory standards and delivering high quality service.”

Each year, New Jersey American Water invests millions of dollars in its infrastructure, which includes both maintenance and upgrades to its treatment and distribution, or pipeline, systems. This includes investments into treatment plants, tanks, pump stations, miles of pipe, water mains, fire hydrants and metering equipment.

System improvement highlights during 2023 include:

• Mains: The company invested $175 million to install, replace or rehabilitate more than 91 miles of main. Pipe improvement projects help improve water quality, pressure, fire protection and service reliability. In addition, New Jersey American Water invested approximately $2.76 million in leak detection equipment to enhance their ability to respond to leaks and breaks.
• Source Water, Treatment and Other Production System Improvements: New Jersey American Water spent over $28 million for improvements at its water treatment facilities, including:
  • Jumping Brook Water Treatment Plant – treatment improvements
  • Canal Road Water Treatment Plant – intake upgrades and alum tank replacement
  • Raritan Millstone Water Treatment Plant – filter rehabilitation and treatment improvements
• Fire Hydrants: The company replaced 458 fire hydrants and 1,723 valves, representing an investment of approximately $17.8 million.
• Service Lines: New Jersey American Water replaced 13,776 service lines, an approximate $87.8 million investment.
• Tanks/Storage: New Jersey American Water rehabilitated five tanks and conducted detailed inspections of 40 tanks, an investment totaling approximately $10.1 million.

Visit www.newjerseyamwater.com to learn more about New Jersey American Water’s multimillion dollar program to accelerate the renewal of water infrastructure that is reaching the end of its useful life in more than 100 communities across the state.

About American Water

American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water’s 6,500 talented professionals leverage their significant expertise and the company’s national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders. For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.

About New Jersey American Water

New Jersey American Water, a subsidiary of American Water, is the largest regulated water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 2.9 million people. For more information, visit www.newjerseyamwater.com and follow New Jersey American Water on Facebook, X, Instagram and LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240226263199/en/

Media:

Denise Venuti Free

Senior Director of Communications & External Affairs

New Jersey American Water

denise.free@amwater.com

Source: New Jersey American Water

FAQ

What is the recent announcement made by American Water Works (AWK)?

American Water Works (AWK) has announced a 10% increase in its quarterly cash dividend from $0.55 to $0.60 per share.

Why is the dividend increase significant for American Water Works (AWK) shareholders?

The dividend increase demonstrates the company's strong financial stability and commitment to delivering value to its shareholders.

What does the dividend increase reflect about American Water Works (AWK)'s financial position?

The dividend increase reflects American Water Works (AWK)'s confidence in its ability to generate sustainable cash flows and support future growth initiatives.

How has American Water Works (AWK) historically treated its dividends?

American Water Works (AWK) has a consistent track record of increasing dividends, providing investors with a reliable income stream.