Essential Utilities Reports Financial Results for Q3 2024
Essential Utilities (NYSE: WTRG) reported Q3 2024 net income of $69.4 million, or $0.25 per share, compared to $80.1 million ($0.30/share) in Q3 2023. Revenues increased 6% to $435.3 million. The company reinstated its multi-year earnings guidance, projecting 5-7% EPS growth through 2027. Notable developments include PUC approval of the Peoples Natural Gas rate case with a $93 million revenue increase and a settlement reached for Aqua Pennsylvania's rate case. The company plans to invest nearly $8 billion in infrastructure over the next five years and maintains its commitment to reducing greenhouse gas emissions by 60% by 2035.
Essential Utilities (NYSE: WTRG) ha riportato un utile netto per il terzo trimestre 2024 di 69,4 milioni di dollari, ovvero 0,25 dollari per azione, rispetto agli 80,1 milioni di dollari (0,30 dollari per azione) del terzo trimestre 2023. I ricavi sono aumentati del 6%, raggiungendo i 435,3 milioni di dollari. L'azienda ha ripristinato le sue previsioni di utili pluriennali, prevedendo una crescita dell'EPS del 5-7% fino al 2027. Sviluppi significativi includono l'approvazione da parte della PUC del caso tariffario di Peoples Natural Gas, con un aumento dei ricavi di 93 milioni di dollari, e un accordo raggiunto per il caso tariffario di Aqua Pennsylvania. L'azienda prevede di investire quasi 8 miliardi di dollari in infrastrutture nei prossimi cinque anni e mantiene il suo impegno a ridurre le emissioni di gas serra del 60% entro il 2035.
Essential Utilities (NYSE: WTRG) reportó un ingreso neto de 69.4 millones de dólares, o 0.25 dólares por acción, en el tercer trimestre de 2024, en comparación con 80.1 millones de dólares (0.30 dólares/acción) en el tercer trimestre de 2023. Los ingresos aumentaron un 6% hasta alcanzar los 435.3 millones de dólares. La compañía reinstauró su guía de ganancias a largo plazo, proyectando un crecimiento del EPS del 5-7% hasta 2027. Entre los desarrollos notables se incluye la aprobación de la PUC del caso tarifario de Peoples Natural Gas, que genera un aumento de ingresos de 93 millones de dólares, y un acuerdo alcanzado para el caso tarifario de Aqua Pennsylvania. La compañía planea invertir casi 8 mil millones de dólares en infraestructura durante los próximos cinco años y mantiene su compromiso de reducir las emisiones de gases de efecto invernadero en un 60% para 2035.
Essential Utilities (NYSE: WTRG)는 2024년 3분기에 순이익 6940만 달러, 주당 0.25 달러를 보고했으며, 이는 2023년 3분기의 8010만 달러(주당 0.30 달러)와 비교됩니다. 수익은 6% 증가하여 4억 3530만 달러에 달했습니다. 회사는 2027년까지 주당 순이익(EPS) 5-7% 성장을 예상하며, 다년간의 수익 가이드를 재개했습니다. 주요 개발 사항으로는 Peoples Natural Gas 요금 사건에 대한 PUC 승인이 있으며, 이는 9300만 달러의 수익 증가를 가져왔고, Aqua Pennsylvania 요금 사건에 대한 합의가 이루어졌습니다. 회사는 향후 5년간 인프라에 거의 80억 달러를 투자할 계획이며, 2035년까지 온실가스 배출을 60% 줄이겠다는 약속을 유지하고 있습니다.
Essential Utilities (NYSE: WTRG) a rapporté un bénéfice net de 69,4 millions de dollars, soit 0,25 dollar par action, pour le troisième trimestre 2024, contre 80,1 millions de dollars (0,30 dollar/action) au troisième trimestre 2023. Les revenus ont augmenté de 6 % pour atteindre 435,3 millions de dollars. L'entreprise a rétabli ses prévisions de bénéfices pluriannuelles, projetant une croissance du BPA de 5 à 7 % jusqu'en 2027. Parmi les développements notables, on trouve l'approbation par la PUC du cas tarifaire de Peoples Natural Gas, entraînant une augmentation de revenus de 93 millions de dollars, ainsi qu'un accord conclu pour le cas tarifaire d'Aqua Pennsylvania. L'entreprise prévoit d'investir près de 8 milliards de dollars dans les infrastructures au cours des cinq prochaines années et maintient son engagement à réduire les émissions de gaz à effet de serre de 60 % d'ici 2035.
Essential Utilities (NYSE: WTRG) hat im dritten Quartal 2024 einen Nettoverdienst von 69,4 Millionen Dollar oder 0,25 Dollar pro Aktie gemeldet, im Vergleich zu 80,1 Millionen Dollar (0,30 Dollar/Aktie) im dritten Quartal 2023. Die Einnahmen stiegen um 6 % auf 435,3 Millionen Dollar. Das Unternehmen hat sein mehrjähriges Gewinnleitlinien wiederhergestellt und prognostiziert ein EPS-Wachstum von 5-7 % bis 2027. Zu den bemerkenswerten Entwicklungen gehören die Genehmigung des Tarifs von Peoples Natural Gas durch die PUC mit einem Einnahmenanstieg von 93 Millionen Dollar und ein erzielter Vergleich im Tariffall von Aqua Pennsylvania. Das Unternehmen plant, in den nächsten fünf Jahren nahezu 8 Milliarden Dollar in die Infrastruktur zu investieren und hält an seinem Ziel fest, die Treibhausgasemissionen bis 2035 um 60 % zu reduzieren.
- Revenue increased 6% to $435.3 million in Q3 2024
- Secured $93 million annual revenue increase from Peoples Natural Gas rate case
- Plans $8 billion infrastructure investment over next five years
- Year-to-date EPS increased 9% to $1.50 compared to $1.37 in 2023
- Combined regulated utility rate base expected to grow at over 8% CAGR through 2029
- Q3 2024 EPS decreased to $0.25 from $0.30 in Q3 2023
- Net income declined to $69.4 million from $80.1 million in Q3 2023
- Lower regulated natural gas volumes impacted earnings
- Company needs to raise approximately $350 million in equity between 2024-2025
Insights
Essential Utilities delivered mixed Q3 2024 results with
Key positives include:
- PUC approval for Peoples Natural Gas rate case with
$93M revenue increase - Robust
$932.5M YTD infrastructure investments - Seven pending acquisitions worth
$360M
The
The projected
Earnings per share of
Company reinstates multi-year earnings guidance of 5
PUC approval of Peoples Natural Gas rate case
Settlement reached for Aqua Pennsylvania rate case
“After temporarily suspending long-term guidance on earnings per share (EPS) in early 2024, the company is now prepared to reinitiate long-term EPS guidance. The guidance we are issuing today reflects the confidence of the board and management in executing our long-term operational and financial goals. We will continue to grow our water and wastewater customer base by offering solutions to the private and municipal markets. We will also continue to make significant improvements in our natural gas and water infrastructure by planning to invest nearly
“Despite the valid and enforceable asset purchase agreement with DELCORA, which we fully expect to close in the future, today’s earnings guidance does not include any benefit to EPS from this transaction,” said Franklin.
Operating Results
Essential reported net income of
Revenues for the quarter were
Essential’s regulated water segment reported revenues for the quarter of
“Several weeks ago, Hurricane Helene had a direct impact on several of our systems in
Essential’s regulated natural gas segment reported revenues for the quarter of
As of September 30, 2024, Essential reported year-to-date net income of
For the first nine months of 2024, the company reported revenues of
Dividend
On October 30, 2024, Essential’s board of directors declared a quarterly cash dividend of
Financing
Essential issued
Rate Activity
Peoples Natural Gas received PUC approval of its settlement agreement in the rate case filed in December 2023, resulting in an annualized
Aqua
Additionally, thus far in 2024, the company’s regulated water segment received rate awards or infrastructure surcharges designed to increase annual revenues in
The company currently has base rate cases or infrastructure surcharges pending in
Capital Expenditures
Essential invested approximately
Water Utility Growth by Acquisition
Essential’s continued growth by acquisition allows the company to provide safe and reliable water and wastewater service to a larger customer base than it could from organic customer growth alone. Since 2015, Essential collectively has acquired over
The company has seven signed purchase agreements for additional wastewater systems in
The pipeline of potential water and wastewater municipal acquisitions the company is actively pursuing represents approximately 400,000 total customers.
Multi-Year Financial and Growth Guidance
The company is pleased to re-initiate long-term earnings guidance. The company’s latest expectations are the following:
-
In 2025, net income per diluted common share will be between
to$2.07 .$2.11 -
The company plans to grow long-term earnings per share at a compounded annual growth rate of 5 to
7% for the three-year period through 2027. -
In 2025, regulated infrastructure investments will be approximately
to$1.4 .$1.5 billion -
Through 2029, we plan to make regulated infrastructure investments of approximately
.$7.8 billion -
Through 2029, the regulated water segment rate base will grow at a compounded annual growth rate of approximately
6% ; this only includes acquisitions scheduled to close in 2025 and excludes DELCORA. -
Through 2029, the regulated natural gas segment rate base will grow at a compounded annual growth rate of approximately
11% . -
Through 2029, the combined regulated utility rate base will grow at a compounded annual growth rate of over
8% . -
The regulated water customer base (or equivalent dwelling units) of the business will grow at an average annual growth rate of between 2 and
3% from acquisitions and organic customer growth over the long term. - The regulated natural gas customer base of the business will be stable for 2025.
-
Through 2027, the company expects to raise equity via its multi-year ATM program. Between 2024 and 2025, the company will raise a total of approximately
in equity.$350 million -
Reduction of Scope 1 and Scope 2 greenhouse gas emissions by
60% by 2035 from the company’s 2019 baseline. - Multiyear plan to ensure that finished water does not exceed the federal maximum contaminant level of the six EPA-regulated PFAS chemicals.
Essential reaffirms its commitment to substantially reduce Scope 1 and 2 greenhouse gas emissions by 2035. The company plans to achieve these reductions through extensive gas pipeline replacement, the purchase of renewable energy, accelerated methane leak detection and repair, and various other planned initiatives. Essential continues to be an industry leader regarding water quality with its commitment to test and treat for six regulated PFAS chemicals across all states served by its regulated water segment. The company reaffirms its commitment to providing finished water that will meet the EPA timelines and standards.
2024 Guidance
Essential re-affirms the previously announced 2024 guidance:
-
In February, and re-affirmed in August, Essential provided guidance for 2024 net income per diluted common share to be
to$1.96 . On a GAAP basis, the expectation is to exceed this 2024 guidance as a result of the gain on sale of the energy plant assets, despite the impact of warmer-than-normal weather that resulted in lower regulated natural gas operating revenues year-to-date.$2.00 -
In 2024, regulated infrastructure investments will be approximately
to$1.3 .$1.4 billion
Guidance Assumptions
Essential Utilities does not guarantee future results of any kind. Guidance is subject to risks and uncertainties, including, without limitation, those factors outlined in the “Forward Looking Statements” of this release and the “Risk Factors” section of the company’s annual and quarterly reports filed with the Securities and Exchange Commission. The earnings per share, infrastructure investment, and rate base guidance include the signed municipal water and wastewater acquisitions for which the company has entered into signed purchase agreements as of the date the guidance was announced but do not include DELCORA or other potential municipal acquisitions from the company’s list of acquisition opportunities that currently represents over 400,000 customer equivalents. While the company remains confident in its ability to close DELCORA, for guidance purposes, DELCORA has been removed from all guidance metrics.
The average annual regulated water segment growth guidance reflects the company’s proven acquisition track record of adding nearly 129,000 customers or equivalent dwelling units and over
The company’s guidance includes the expectation that the company will continue to issue equity and debt on an as-needed basis to support acquisitions and capital investment plans.
Third Quarter 2024 Earnings Call Information
Date: November 5, 2024
Time: 11 a.m. EST (please dial in by 10:45 a.m.)
Webcast and slide presentation link: https://www.essential.co/events-and-presentations/events-calendar
Replay Dial-in #: (800) 770-2030 (
Pass code: 9261648#
The company’s conference call with financial analysts will take place on Tuesday, November 5, 2024, at 11 a.m. Eastern Standard Time. The call and presentation will be webcast live so interested parties may listen over the internet by logging on to Essential.co and following the link for Investors. The conference call will be archived in the Investor Relations section of the company’s website following the call. Additionally, the call will be recorded and made available for replay at 2 p.m. on November 5, 2024, for seven days following the call. To access the audio replay in the
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 nine states. Essential is one of the most significant publicly traded water, wastewater service, and natural gas providers in the
Forward-Looking Statements
This release 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, among others: the company’s belief that it will comply with the finalized EPA PFAS rules, the guidance range of net income per diluted common share; the anticipated amount of capital investment in 2025 through 2029; the rate base growth of company through 2029; the reduction in volatility related to abnormal weather impacts on financial results from the Peoples Natural Gas segment; the reduction of Scope 1 and Scope 2 greenhouse gas emissions by
WTRGF
Essential Utilities, Inc. and Subsidiaries | |||||||||
Selected Operating Data | |||||||||
(In thousands, except per share amounts) | |||||||||
(Unaudited) | |||||||||
Quarter Ended | Nine Months Ended | ||||||||
September 30, | September 30, | ||||||||
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
Operating revenues | $ |
435,255 |
$ |
411,255 |
$ |
1,481,730 |
$ |
1,574,405 |
|
Operations and maintenance expense | $ |
144,368 |
$ |
147,018 |
$ |
423,780 |
$ |
418,520 |
|
Net income | $ |
69,402 |
$ |
80,076 |
$ |
410,559 |
$ |
362,778 |
|
Basic net income per common share | $ |
0.25 |
$ |
0.30 |
$ |
1.50 |
$ |
1.37 |
|
Diluted net income per common share | $ |
0.25 |
$ |
0.30 |
$ |
1.50 |
$ |
1.37 |
|
Basic average common shares outstanding |
|
274,021 |
|
266,767 |
|
273,656 |
|
265,135 |
|
Diluted average common shares outstanding |
|
274,543 |
|
267,176 |
|
274,127 |
|
265,688 |
Essential Utilities, Inc. and Subsidiaries | ||||||||||||||
Consolidated Statement of Operations | ||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||
(Unaudited) | ||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
|
2024 |
|
|
2023 |
|
|
|
|
2024 |
|
|
2023 |
|
|
Operating revenues | $ |
435,255 |
|
$ |
411,255 |
|
$ |
1,481,730 |
|
$ |
1,574,405 |
|
||
Cost & expenses: | ||||||||||||||
Operations and maintenance |
|
144,368 |
|
|
147,018 |
|
|
423,780 |
|
|
418,520 |
|
||
Purchased gas |
|
19,095 |
|
|
16,590 |
|
|
182,498 |
|
|
314,838 |
|
||
Depreciation |
|
91,448 |
|
|
84,348 |
|
|
269,742 |
|
|
252,208 |
|
||
Amortization |
|
1,153 |
|
|
1,687 |
|
|
3,309 |
|
|
3,282 |
|
||
Taxes other than income taxes |
|
24,102 |
|
|
24,207 |
|
|
71,359 |
|
|
67,433 |
|
||
Total |
|
280,166 |
|
|
273,850 |
|
|
950,688 |
|
|
1,056,281 |
|
||
Operating income |
|
155,089 |
|
|
137,405 |
|
|
531,042 |
|
|
518,124 |
|
||
Other expense (income): | ||||||||||||||
Interest expense |
|
76,846 |
|
|
68,590 |
|
|
223,164 |
|
|
210,440 |
|
||
Interest income |
|
(1,394 |
) |
|
(942 |
) |
|
(2,659 |
) |
|
(2,731 |
) |
||
Allowance for funds used during construction |
|
(5,593 |
) |
|
(5,455 |
) |
|
(15,503 |
) |
|
(14,567 |
) |
||
Loss (gain) on sale of other assets |
|
(239 |
) |
|
285 |
|
|
(92,067 |
) |
|
(184 |
) |
||
Other, net |
|
227 |
|
|
(1,438 |
) |
|
486 |
|
|
(2,001 |
) |
||
Income before income taxes |
|
85,242 |
|
|
76,365 |
|
|
417,621 |
|
|
327,167 |
|
||
Provision for income taxes (benefit) |
|
15,840 |
|
|
(3,711 |
) |
|
7,062 |
|
|
(35,611 |
) |
||
Net income | $ |
69,402 |
|
$ |
80,076 |
|
$ |
410,559 |
|
$ |
362,778 |
|
||
Net income per common share: | ||||||||||||||
Basic | $ |
0.25 |
|
$ |
0.30 |
|
$ |
1.50 |
|
$ |
1.37 |
|
||
Diluted | $ |
0.25 |
|
$ |
0.30 |
|
$ |
1.50 |
|
$ |
1.37 |
|
||
Average common shares outstanding: | ||||||||||||||
Basic |
|
274,021 |
|
|
266,767 |
|
|
273,656 |
|
|
265,135 |
|
||
Diluted |
|
274,543 |
|
|
267,176 |
|
|
274,127 |
|
|
265,688 |
|
Essential Utilities, Inc. and Subsidiaries | |||||
Condensed Consolidated Balance Sheets | |||||
(In thousands of dollars) | |||||
(Unaudited) | |||||
September 30, | December 31, | ||||
|
2024 |
|
|
2023 |
|
Net property, plant and equipment | $ |
12,815,862 |
$ |
12,097,072 |
|
Current assets |
|
373,933 |
|
491,979 |
|
Regulatory assets and other assets |
|
4,374,831 |
|
4,252,408 |
|
$ |
17,564,626 |
$ |
16,841,459 |
||
Total equity | $ |
6,180,934 |
$ |
5,896,183 |
|
Long-term debt, excluding current portion, net of debt issuance costs |
|
7,230,168 |
|
6,826,085 |
|
Current portion of long-term debt and loans payable |
|
172,235 |
|
227,538 |
|
Other current liabilities |
|
510,908 |
|
570,389 |
|
Deferred credits and other liabilities |
|
3,470,381 |
|
3,321,264 |
|
$ |
17,564,626 |
$ |
16,841,459 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241104026749/en/
Media:
David Kralle
Vice President, 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 was Essential Utilities (WTRG) earnings per share in Q3 2024?
What is Essential Utilities (WTRG) projected earnings growth rate through 2027?
How much revenue increase did WTRG receive from the Peoples Natural Gas rate case?