Essential Utilities, Inc. - WTRG STOCK NEWS

Essential Utilities Inc. (NYSE: WTRG) announced that its subsidiary, Aqua Pennsylvania, has halted exclusivity discussions regarding a potential acquisition with the Bucks County Water and Sewer Authority. The company expressed surprise and disappointment at this decision but remains committed to providing solutions to water and sewer utilities in the region. Essential has completed two acquisitions in 2022 and currently has seven additional signed agreements totaling approximately $364.5 million, targeting over 217,000 retail customers.

Essential Utilities has appointed Kimberly Joyce as corporate secretary, in addition to her current role as Vice President of Regulatory and Government Affairs. This transition aims to leverage Joyce's 15 years of experience with the company, enhancing the board's oversight and compliance with Securities & Exchange Commission regulations. Joyce previously worked with the Pennsylvania Public Utility Commission and holds a B.A. in economics, an M.B.A., and a J.D. This move is expected to ensure organizational stability and continuity.

Essential Utilities has appointed Jim Barbato as the new vice president of financial planning and analysis from his previous role as vice president of corporate engineering. He will report to the CFO and oversee financial planning functions, including budgeting, forecasting, and capital budgeting. Barbato has been with the company since 2007, holding various engineering roles across several states. His extensive experience in capital planning and engineering makes him well-suited for this strategic position. CFO Dan Schuller emphasized the importance of investment in infrastructure for the company's mission.

Essential Utilities Inc. (NYSE: WTRG) announced the acquisition of East Whiteland Township's municipal wastewater assets in Chester County for approximately $55 million. This system serves around 8,200 customer-equivalents and includes 57 miles of collection mains and 12 pump stations. The acquisition enhances Essential's wastewater services and builds on its existing water service credibility in the area. Over the next decade, Essential plans to invest $17 million in infrastructure improvements, including major sewer extensions. This marks the second acquisition by Essential in 2022.

Essential Utilities has appointed Whitney Kellett as Vice President and Chief Information Officer to spearhead a $143 million service improvement project, following the retirement of Ruth DeLost-Wylie. This initiative, which began in 2020, will advance under Kellett’s guidance. Additionally, she will transition to Chief Administrative Officer later in 2023. Kellett, a seasoned IT executive with extensive experience across various sectors, has been integral to enhancing the company's IT capabilities since she joined in 2016.

Essential Utilities has promoted Dave Kralle to Chief of Staff, a position created by CEO Christopher Franklin in 2015 to enhance organizational communication and decision-making. Kralle, who joined Aqua Pennsylvania in 2015, has a strong background in government affairs, having led legislation on utility operations and secured funding for PFAS treatment. This strategic appointment aims to integrate the company's vision and core values more effectively across its operations, reflecting an increased emphasis on personnel management.

Essential Utilities Inc. (NYSE: WTRG) reported a net income of $82.3 million in Q2 2022, up from $80.9 million in Q2 2021. Earnings per share (EPS) were $0.31, slightly down from $0.32 year-over-year. Revenues increased by 13.0% to $448.8 million, driven by higher rates and customer growth in its regulated water and natural gas segments. The board declared a 7% increase in the quarterly dividend, marking the 32nd increase in 31 years. The company reaffirmed its guidance of $1.75 to $1.80 EPS for 2022, projecting 5-7% long-term growth through 2024.

Essential Utilities has appointed Brian Dingerdissen as vice president, investor relations and treasurer, succeeding Stan Szczygiel. Dingerdissen, who has been with the company since 2005, will continue to oversee investor relations and lead the company’s ESG program. Under his leadership as head of investor relations since 2008, the company's market cap increased from $2B to over $13B. He played a key role in the successful $2 billion secondary public equity offering in 2019 for the acquisition of Peoples.

The board of directors of Essential Utilities (NYSE: WTRG) declared a quarterly cash dividend of $0.2870 per share, payable on Sept. 1, 2022 to shareholders of record on Aug. 12, 2022. This dividend marks a 7% increase from the $0.2682 dividend paid in June and is the 32nd increase in 31 years, reflecting the company's strong commitment to shareholder returns.

The annualized dividend rate will be $1.1480 per share, maintaining a payout ratio of 60-65% of net income.