BRYN MAWR, PA — Essential Utilities Inc. (NYSE: WTRG) has released its financial results for the third quarter of 2024, reporting a net income of $69.4 million, or $0.25 per share. The company also outlined its multi-year guidance, infrastructure investment strategies, and reaffirmed its commitment to reducing emissions and addressing PFAS.
After a temporary halt on long-term earnings guidance earlier this year, Essential Utilities is now ready to reinitiate guidance. Chris Franklin, Chairman and CEO, expressed confidence in the company’s strategic direction: “The guidance we are issuing today reflects the confidence of the board and management in executing our long-term operational and financial goals.”
The company’s revenue for the third quarter increased by approximately 6% to $435.3 million, compared to $411.3 million in the same period last year. This growth was driven by increased water sales and customer growth, despite some offset from lower natural gas volumes. Essential’s regulated water segment saw an 8% revenue increase to $334.5 million.
Looking ahead, Essential plans to invest nearly $8 billion over the next five years to enhance its water and natural gas infrastructure. This initiative aims to further improve customer service and support the company’s growth strategy. Franklin emphasized the importance of these investments, stating, “We will continue to make significant improvements in our natural gas and water infrastructure.”
Essential also announced the approval of several rate cases, including a $93 million annualized increase for Peoples Natural Gas, which includes a weather normalization mechanism to stabilize financial results against abnormal weather impacts.
The company has ambitious plans for capital expenditures, with an investment of approximately $932.5 million already made in the first nine months of 2024. The focus on infrastructure investment is expected to continue with plans to invest between $1.3 to $1.4 billion this year alone.
In terms of acquisitions, Essential Utilities has several agreements pending, including wastewater systems in Pennsylvania, Texas, and Ohio, expected to serve over 213,000 customers. The company also plans to enhance its regulated water and gas utility infrastructure, with a focus on reducing methane emissions and adhering to EPA regulations on PFAS.
Franklin reiterated the company’s environmental commitments, emphasizing its goal to reduce greenhouse gas emissions by 60% by 2035 and ensure water quality meets federal standards.
Essential Utilities’ strategic outlook remains strong, with expected long-term earnings growth and continued infrastructure investments to support its mission of delivering essential resources reliably and sustainably.
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