The following is a summary of the Essential Utilities, Inc. (WTRG) Q1 2024 Earnings Call Transcript:
Financial Performance:
Essential Utilities reported Q1 2024 GAAP earnings of $0.90 to $0.97 per share, boosted by a sizeable gain from the sale of energy projects.
The overall performance was hindered by exceptional warm weather, highlighting the importance of weather normalization for their gas utility.
The company invested $253 million through Q1 2024 and plans for record capital expenditures of $1.3 billion to $1.4 billion.
Business Progress:
The company is advancing its acquisition program, awaiting approval of a critical motion by the Pennsylvania Utility Commission.
Aiming to comply with the first-ever limits on PFAS, nine treatment systems have been installed with more expected to be operational by the end the year.
Essential Utilities is focusing on enhancing customer reliability through substantial infrastructure investment and aggressive pipeline modernization programs.
The company aims for a 60% reduction in CO2 emissions by 2035, with a significant headway already made.
A rate hike petition has been filed to enhance the distribution system safety and reliability, expecting the new rates to come in effect before winter.
Future financial growth is expected to be driven by acquisitions, customer base stability in the Natural Gas sector, and an equity raise of approximately $250 million planned this year.
Major investments in regulated infrastructure are projected in the coming years, with an estimated $7.2 billion by 2028.
Efforts have been made to establish procurement strategies and ensure full compliance with PFAS regulations.
The company expects growth in the Water and Wastewater sectors from acquisitions and organic customer growth estimated at 2% to 3% annually.
More details: Essential Utilities IR
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