Essential Utilities, Inc. · NYSE:WTRG
Essential Utilities — Q2 2024 Earnings Presentation
27 slides from Essential Utilities's earnings presentation, Aug 6, 2024
Slide 1: Second Quarter 2024
NYSE LISTED Second Quarter WTRG 2024 August 6th, 2024 February 2024
Slide 2: Brian Dingerdissen, Investor Relations
Brian Dingerdissen Vice President, Investor Relations and Treasury 2
Slide 3: Forward Looking Statement
Forward Looking Statement This presentation contains in addition to historical information, forward looking statements based on assumptions made by management regarding future circumstances over which the company may have little or no control, that involve risks, uncertainties and other factors that
Slide 4: Christopher Franklin, Chairman and CEO
Christopher Franklin Chairman and Chief Executive Officer 4
Slide 5: Corporate Updates
Corporate Updates 6% Dividend $0.28 Earnings Increase PA PUC FMV Per Share 79th Consecutive Years Reform Completed of Dividend Payments Infrastructure Company awarded Progress on Key Investment of $77.5M in Regulatory $548.9M Low-Interest Priorities Year to Date Loans in PA 5
Slide 6: Execution of Infrastructure Investment
$4B+ Toward PFAS Critical Research and Infrastructure State-of-the-art Enhancements Remediation since 2020 Solutions Execution of Infrastructure Investment Over 300 Miles to be Replaced in 2024 6
Slide 7: Daniel Schuller, EVP, Chief Financial Officer
Daniel Schuller EVP, Chief Financial Officer 7
Slide 8: Q2 Financial Highlights
Q2 Financial Highlights As of June 30, 2024 ($ in millions, except per share data) Q2 2023 Q2 2024 Revenues • Lower purchased gas costs and lower Operating Revenues $436.7 $434.4 regulated natural gas segment and water segment volumes were the primary Purchased Gas $41.9 $33.7 contributors to the de
Slide 9: Operating Revenues Q2 2024 vs. Q2 2023
Operating Revenues Q2 2024 vs. Q2 2023 Change in Operating Revenues (millions) 9
Slide 10: Operations & Maintenance Expenses
Operations & Maintenance Expenses Q2 2024 vs. Q2 2023 Change in Operations & Maintenance Expense (millions) 10
Slide 11: Earnings per Common Share
Earnings per Common Share Q2 2024 vs. Q2 2023 Change in Earnings Per Share 11
Slide 12: Regulatory Activity
Regulatory Activity As of August 6, 2024 2024 COMPLETED PENDING REGULATORY REGULATORY RECOVERIES RECOVERIES Water segment base rate cases or Water segment base rate cases or surcharges in IL, NC, OH and PA with surcharges in IL, NJ, PA, TX and VA with annualized revenue increase of requested annuali
Slide 13: Christopher Franklin, Chairman and CEO
Christopher Franklin Chairman and Chief Executive Officer 13
Slide 14: Pending Transactions
Pending Transactions ~$385M of Pending Rate Base is Expected to Generate ~$19M of Over 215,000 (2) Incremental Annual Earnings Potential(1) Total Customers PA PA PA ~$385.0M DELCORA BEAVER FALLS GREENVILLE Total Purchase Price • Wastewater • Wastewater • Wastewater • 198,000 customers(2) • 7,600 cus
Slide 15: Guidance Outlook
Guidance Outlook FY 2024 net Infrastructure Regulated $1.3 to $1.4B income per diluted investments of utility rate base infrastructure Growth Targets common share CAGR of 8% investment for ~$7.2B,weighted target of towards regulated through 2028 2024 $1.96 - $2.00(1) water through 2028 Segment rate
Slide 16: Questions
m) c 2) r~] rm ® =) Oo 16 Wessentia
Slide 17: For More Information Contact
For More Information Contact: Brian Dingerdissen Hayley Diminick Vice President, Director, Investor Relations and Treasury Investor Relations (610) 645-1191 (610) 645-1196 BJDingerdissen@Essential.co HMDiminick@Essential.co 17
Slide 18: Appendix
Wessentia. 18
Slide 19: Year to Date Financial Highlights
Year to Date Financial Highlights As of June 30, 2024 ($ in millions, except per share data) YTD 2023 YTD 2024 Revenues • Lower purchased gas costs and lower Operating Revenues $1,163.2 $1,046.5 regulated natural gas segment and water segment volumes were the primary Purchased Gas $298.2 $163.4 cont
Slide 20: Operating Revenues YTD
Operating Revenues YTD June 30, 2024 vs. YTD June 30, 2023 Change in Operating Revenues (millions) 20
Slide 21: Operations & Maintenance Expenses YTD
Operations & Maintenance Expenses YTD June 30, 2024 vs. YTD June 30, 2023 Change in Operations & Maintenance Expense (millions) 21
Slide 22: Earnings per Common Share YTD
Earnings per Common Share YTD June 30, 2024 vs. YTD June 30, 2023 Change in Earnings Per Share Includes $66M after-tax one-time gain on sale 22
Slide 23: Dividend Growth History
Dividend Growth History $1.30 $1.23 $1.15 $1.07 $1.00 $0.94 $0.88 $0.82 $0.77 $0.71 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Long-term track record of dividend growth with 34 dividend increases in the last 33 years 23
Slide 24: Regulatory Activity Completed
Requested Annualized 2024 State Docket Number Segment Type Revenue Increase ($thousands) Regulatory Ohio North Carolina W-218, Sub 573 Water Water Rate Case Rate Case – Year 2 $2,127 $2,632 Activity W-218, Sub 573 Wastewater Gas Rate Case – Year 2 Surcharge $1,111 $(256) Completed Pennsylvania M-202
Slide 25: Regulatory Activity Pending
Requested Annualized State Docket Number Segment Type Revenue Increase ($thousands) 22-0044 Water Rate Case $10,741 Illinois 22-0044 Wastewater Rate Case $8,455 Regulatory Virginia PUR-2023-00073 Water Rate Case $5,215 PUR-2023-00073 Wastewater Rate Case $1,696 Activity New Jersey Water Rate Case $8
Slide 26: State by State Comparison of Services
Rate Base Water Wastewater Total State ($000s) Connections Connections Customers PA $4,401,939 456,018 62,161 518,179 IL $529,015 69,722 24,408 94,130 OH $520,738 152,788 11,306 164,094 TX $558,134 74,088 23,454 97,542 NC $363,285 86,504 22,869 109,373 State by State NJ $259,339 55,775 6,779 62,554
Slide 27: Healthy Balance Sheet Supports Equity Requirements
Healthy Balance Sheet Supports Equity Requirements STABLE CREDIT SELECT CREDIT RAISING EQUITY RATINGS TARGETS TO SUPPORT LONG-TERM GOALS DEBT-TO-CAPITAL RATIO 50-55% To support long-term Baa2 Baa2 targets, Essential Issuer Issuance DIVIDEND PAYOUT RATIO expects to raise 60-65% $250M through an ATM p