Essential Utilities’ Aqua Illinois Subsidiary Acquires Oak Brook Water Assets

Rhea-AI Summary

Essential Utilities Inc. (NYSE: WTRG) has announced the acquisition of the Village of Oak Brook's water treatment and distribution system for $12.5 million. This system serves approximately 4,000 customer equivalents in DuPage and Cook Counties. This marks the third acquisition by Aqua Illinois in 2022, adding nearly $120 million in rate base and over 23,000 equivalent retail customers. The company plans further expansions, with six signed purchase agreements totaling $352 million and representing about 213,000 equivalent retail customers.

Positive

• Acquisition of water system enhances service area and customer base.
• Addition of nearly $120 million in rate base positively impacts financial outlook.
• Plans for further acquisitions indicate growth potential and market expansion.

Negative

• None.

BRYN MAWR, Pa.--(BUSINESS WIRE)-- Essential Utilities Inc. (NYSE: WTRG) today announced that its Aqua Illinois subsidiary has completed the purchase of the Village of Oak Brook’s water treatment and distribution system, which serves approximately 4,000 customer equivalents in DuPage and Cook Counties, for $12.5 million.

“We thank the village board for entrusting these customers to our care,” said Essential Chairman and CEO Chris Franklin. “Aqua has over 135 years of expertise in water and wastewater service, thoughtful infrastructure investment and strong community involvement. We pledge to continue this long-standing tradition with our new and existing customer base.”

“My team and I are excited to begin serving this area and look forward to providing the community with safe water and reliable service,” said Aqua Illinois President David Carter.

Oak Brook is the third acquisition completed by Essential’s Aqua companies in 2022. Collectively, these acquisitions have added nearly $120 million in rate base and more than 23,000 equivalent retail customers or equivalent dwelling units. Additionally, the company currently has six signed purchase agreements to acquire water and wastewater systems in three of its existing states, which have a total purchase price of nearly $352 million and represent approximately 213,000 equivalent retail customers or equivalent dwelling units.

About Aqua Illinois

Aqua provides water and wastewater service to approximately 273,000 people in 70 communities across 13 Illinois counties. Visit AquaAmerica.com for more information or follow @MyAquaAmerica on Facebook and Twitter.

About Essential

Essential is one of the largest publicly traded water, wastewater and natural gas providers in the U.S., serving approximately 5.5 million people across 10 states under the Aqua and Peoples brands. Essential is committed to excellence in proactive infrastructure investment, regulatory expertise, operational efficiency and environmental stewardship. The company recognizes the importance water and natural gas play in everyday life and is proud to deliver safe, reliable services that contribute to the quality of life in the communities it serves. For more information, visit http://www.essential.co.

Forward-Looking Statements

This letter contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which generally include words such as “believes,” “expects,” “intends,” “anticipates,” “estimates” and similar expressions. The Company can give no assurance that any actual or future results or events discussed in these statements will be achieved. Any forward-looking statements represent its views only as of today and should not be relied upon as representing its views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause the company’s actual results to differ materially from the statements contained in this release. Such forward-looking statements include but are not limited to statements relating to the capital to be invested by the water, wastewater, and gas distribution divisions of the Company. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including the factors discussed in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, which is filed with the Securities and Exchange Commission. For more information regarding risks and uncertainties associated with The Company’s business, please refer to the Company’s annual, quarterly and other SEC filings. The Company is not under any obligation - and expressly disclaims any such obligation - to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

WTRGF

View source version on businesswire.com: https://www.businesswire.com/news/home/20221128005656/en/

Brian Dingerdissen

Investor Relations

O: 610.645.1191

BJDingerdissen@Essential.co

Sarah Courtright

Communications and Marketing

M: 267.391.9302

SMCourtright@AquaAmerica.com

Source: Essential Utilities Inc.

FAQ

What was the acquisition amount for the Village of Oak Brook's water treatment system by WTRG?

The acquisition amount was $12.5 million.

How many customer equivalents does the Oak Brook system serve?

The Oak Brook system serves approximately 4,000 customer equivalents.

What is the significance of the $120 million in rate base mentioned in the press release?

The $120 million in rate base reflects the financial impact of recent acquisitions, enhancing the company's asset value.

How many equivalent retail customers are represented in the six signed purchase agreements?

The six signed purchase agreements represent approximately 213,000 equivalent retail customers.

What are the future prospects for WTRG based on the recent acquisition?

The acquisition expands the company's service area and customer base, indicating positive growth prospects for WTRG.