Essential Utilities Celebrates Infrastructure Week, Announces 2024 Infrastructure Upgrades

Rhea-AI Summary

Essential Utilities Inc. celebrates Infrastructure Week by announcing a $1 billion capital improvement program, reinforcing its commitment to enhancing service and reliability for customers through investments in water and gas utilities. The company plans to invest $1.3 billion in 2024 and an average of $1.4 billion annually through 2028 to modernize and sustain infrastructure in its nine-state service area.

Positive

• Essential Utilities Inc. reaffirms its commitment to investing in communities through a $1 billion capital improvement program, enhancing service and reliability for customers.

• The company has allocated over $4 billion since uniting under Essential in 2020 and plans to invest $1.3 billion in 2024 to address the pressing need for modernization and sustainability across its service area.

• Strategic investments directly benefit customers by enhancing service reliability, mitigating pipeline failure risk, ensuring compliance with environmental standards, and preventing water main breaks, lead contamination, and emerging contaminants like PFAS.

Negative

• While the commitment to investing in infrastructure is positive, the substantial financial investment could impact short-term profitability and shareholder returns.

• The need for continuous capital investments may lead to increased expenses and potential financial risks for the company, affecting shareholder value in the long run.

$1B+ capital improvement program foundation of company’s commitment to investing in the communities it serves

BRYN MAWR, Pa.--(BUSINESS WIRE)-- As the nation observes Infrastructure Week, Essential Utilities Inc. (NYSE: WTRG) reaffirms its commitment to enhancing service and reliability for customers through a robust $1 billion capital improvement program. This investment represents a cornerstone of its mission to invest in communities and advance national infrastructure through its water and gas utilities, Aqua and Peoples Natural Gas.

Since uniting under Essential in 2020, the company has allocated over $4 billion toward critical infrastructure enhancements. In 2023 alone, the company invested $1.2 billion on more than 7,000 individual projects, including approximately 220 projects over $1 million. Some of those key projects include:

• Valley Forge (PA) National Park Pipeline Replacement, an expansion project to deliver water to 670,000 people
• Western Hancock (IN) Wastewater Treatment Plant Expansion, doubling the plant’s capacity to support the region’s growth
• Peoples’ Over-Pressure Protection Program, which increases natural gas safety through improved detection and response times

Essential plans to escalate this commitment by investing an expected $1.3 billion in 2024, and an annual average of approximately $1.4 billion through 2028. These strategic investments directly address the pressing need for modernization and sustainability across Essential’s nine-state service area, ensuring compliance, reducing outages and safeguarding the environment.

“One of the greatest challenges facing the United States is the rehabilitation of our nation’s infrastructure,” said Christopher Franklin, chairman and CEO of Essential Utilities. “As a significant water, wastewater and natural gas provider in the country, Essential has a responsibility and opportunity to proactively address this for future generations. Through our expertise and resources, we’re infusing capital into vital systems, driving innovation and improving service reliability for our communities for generations to come.”

Planned initiatives directly benefit customers by enhancing service reliability, mitigating the risk of pipeline failures and ensuring compliance with evolving environmental standards. These investments will prevent water main breaks, address lead contamination and manage emerging contaminants like PFAS. The company plans to invest $450 million in PFAS research and state-of-the-art remediation solutions, aligning with the recent EPA regulations. The utilities’ planned 2024 work includes the following:

• Peoples will continue its Long-Term Infrastructure Improvement Plan (LTIIP) to replace more than 3,000 miles of critical pipelines, with 186 miles of new lines targeted for installation this year. With $1.5 billion allocated between 2021 and 2025, Peoples’ LTIIP is the leading mile replacement program in Pennsylvania.
• Aqua is committed to upgrading aging infrastructure, improving service and reliability for customers across its eight-state footprint. Aqua is investing $765 million for capital improvements in 2024 alone, including the replacement of 130 miles of water main.

Infrastructure Week serves as a reminder of the vital role that infrastructure plays in supporting communities and driving economic growth. Essential Utilities continues to lead by example, demonstrating a steadfast commitment to investing in the future and delivering essential resources across its service territory.

About Essential

Essential Utilities, Inc. (NYSE:WTRG) delivers safe, clean, reliable services that improve quality of life for individuals, families, and entire communities. With a focus on water, wastewater and natural gas, Essential is committed to sustainable growth, operational excellence, a superior customer experience, and premier employer status. We are advocates for the communities we serve and are dedicated stewards of natural lands, protecting more than 7,600 acres of forests and other habitats throughout our footprint.

Operating as the Aqua and Peoples brands, Essential serves approximately 5.5 million people across 9 states. Essential is one of the most significant publicly traded water, wastewater service and natural gas providers in the U.S. Learn more at 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 and include the Company’s belief that it will invest $1.3 billion in capital in 2024, invest an annual average of approximately $1.4 billion through 2028, and invest $450 million in PFAS research and remediation. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240513407687/en/

Media:

David Kralle

Vice President of Public Affairs

Media Hotline: 1.877.325.3477

Media@Essential.co



Investors:

Brian Dingerdissen

Vice President, IR and Treasurer

O: 610.645.1191

BJDingerdissen@Essential.co

Source: Essential Utilities, Inc.

FAQ

What is the stock symbol for Essential Utilities Inc.?

The stock symbol for Essential Utilities Inc. is WTRG.

How much is Essential Utilities Inc. planning to invest in 2024?

Essential Utilities Inc. plans to invest $1.3 billion in 2024, with an annual average of approximately $1.4 billion through 2028.

What are some key projects of Essential Utilities Inc.'s capital improvement program?

Some key projects include the Valley Forge National Park Pipeline Replacement, Western Hancock Wastewater Treatment Plant Expansion, and Peoples' Over-Pressure Protection Program.

What are the benefits of Essential Utilities Inc.'s planned initiatives for customers?

The planned initiatives enhance service reliability, mitigate pipeline failure risk, ensure compliance with environmental standards, prevent water main breaks, address lead contamination, and manage contaminants like PFAS.