Essential Utilities, Inc. · NYSE:WTRG
Essential Utilities — Q1 2025 Earnings Presentation
28 slides from Essential Utilities's earnings presentation, May 12, 2025
Slide 1: First Quarter 2025
NYSE LISTED First Quarter 2025 WTRG May 12, 2025 February 2024
Slide 2: Brian Dingerdissen
Brian Dingerdissen Vice President Treasury, FP&A and Investor Relations 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
Christopher Franklin Chairman and Chief Executive Officer 4
Slide 5: Company Highlights
Company Highlights 2025 EPS $1.4B - $1.5B Q1 2025 EPS Guidance Infrastructure $1.03 Investments $2.07 - $2.11 for 2025 Issued ~$210M of Equity via ATM 5
Slide 6: Consistently Delivering Growth
Consistently Delivering Growth Diluted Income per Common Share Dividends Paid per Share $1.265 $2.09 (2) $1.188 80th Consecutive $1.97 (1) $1.110 $1.86 $1.038 Year of Dividend $1.77 $1.67 Payments Dividend Payout Ratio of 60- 65% 2021 2022 2023 2024 2025 2021 2022 2023 2024 Capital Expenditures ($Bi
Slide 7: Mike Huwar
Mike Huwar President, Peoples 7
Slide 8: Targeting ~11% Rate Base CAGR
Targeting ~11% Rate Base CAGR 1 LOCATED IN CONSTRUCTIVE WITH CLEAR PATH TO GENERATE REGULATORY JURISDICTIONS ADDITIONAL VALUE AFFORDABLE AND ABUNDANT Gas is 3.3x more affordable than electricity with more than 100 years of supply in the U.S.2 CONSISTENT INVESTMENT America's natural gas utilities inv
Slide 9: Increasing Customer Safety - Intelis Gas Meters
Increasing Customer Safety - Intelis Gas Meters 9
Slide 10: Managing Impact of Customer Bills While Growing the Company Client Base
Managing Impact of Customer Bills While Growing the Company Client Base Weather Normalization Adjustment Data Center Opportunities offers more predictability for customer bills increase client base, help spread cost of investments To make customers’ bills more predictable, the Pennsylvania Public Ut
Slide 11: Daniel Schuller
Daniel Schuller EVP, Chief Financial Officer 11
Slide 12: Q1 Financial Highlights
Q1 Financial Highlights As of March 31, 2025 ($ in millions, except per share data) Q1 2024 Q1 2025 Change Operating Revenues $612.1 $783.6 28.0% Increase Purchased Gas $129.7 $184.6 42.3% Increase Operations and Maintenance Expense $136.9 $137.8 0.7% Increase Operating Income $230.7 $338.9 46.9% In
Slide 13: Operating Revenues
Operating Revenues Q1 2025 vs. Q1 2024 Change in Operating Revenues (millions) $22.1 $783.6 $30.3 $(3.0) $55.0 $67.2 $612.1 Q1 2024 Rates & Surcharges Purchased Gas Volume - Gas Other Volume - Water Q1 2025 13
Slide 14: Operations & Maintenance Expenses
Operations & Maintenance Expenses Q1 2025 vs. Q1 2024 Change in Operations & Maintenance Expense (millions) $2.7 $0.2 $4.9 $8.5 ($7.4) $136.9 $137.8 ($7.9) Q1 2024 USP (rider) offset Employee related costs Production Costs - Water Growth - Water Bad debt Other Q1 2025 14
Slide 15: Earnings per Common Share
Earnings per Common Share Q1 2025 vs. Q1 2024 Change in Earnings Per Share $0.08 $0.02 ($0.01) $0.17 $1.03 $0.97 ($0.21) Q1 2024 Rates & Surcharges Volume - Gas Expenses Volume - Water Other Q1 2025 15
Slide 16: Earnings Quarterly Breakdown
Approximate Net Income by Quarter 1Q 40% 50% 2Q Earnings 10% 20% Quarterly Breakdown 3Q 10% 20% 4Q 20% 30% Based on company projections, 60-80% of net income is expected to be earned in 1Q and 4Q 16
Slide 17: Regulatory Activity
Regulatory Activity As of May 9, 2025 2025 COMPLETED PENDING REGULATORY REGULATORY RECOVERIES RECOVERIES Water segment base rate cases or surcharges Water segment base rate cases or surcharges in PA, OH, and NC with annualized revenue in NJ and NC with requested annualized increase of $89.6 million
Slide 18: Christopher Franklin
Christopher Franklin Chairman and Chief Executive Officer 18
Slide 19: Continued Water and Wastewater Acquisition Success
Continued Water and Wastewater Acquisition Success Cumulative Additions of Customers Closed Pending Through Acquisitions Since 2015 Transactions Transactions PA PA PA GREENVILLE DELCORA GREENVILLE 140,000 • Water • Wastewater Nearly 129,000 1 • Wastewater • 2,300 customers • 198,000 customers (1) •
Slide 20: Guidance Outlook
Guidance Outlook1 2025 normalized Through 2027, Regulated utility $1.4 to $1.5B 2025-2029 In 2025 we Corporate net income per diluted common EPS will grow at rate base growth infrastructure Infrastructure expect to a CAGR of of 8% investment investments of raise ~$315M Growth Targets share target of
Slide 21: Questions
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Slide 22: For More Information Contact:
For More Information Contact: Brian Dingerdissen Ed Vallejo Vice President, Director, Investor Relations, FP&A and Treasury Investor Relations (610) 645-1191 (267) 370-9717 BJDingerdissen@Essential.co EdVallejo@Essential.co 22
Slide 23: Appendix
4 Essential 23
Slide 24: Regulatory Activity Completed
Annualized Revenue State Docket Number Segment Type Increase ($ 000's) N/ A Wat er Surcharge 1,497 N/ A Wast ew at er Surcharge 567 24-0188 Wat er Surcharge 1,823 Illinois 24-0188 Wast ew at er Surcharge 693 24-0044 Wat er Rat e Case 4,726 24-0044 Wast ew at er Rat e Case 6,906 N/ A Wast ew at er Ra
Slide 25: Regulatory Activity Completed
Annualized Revenue State Docket Number Segment Type Increase 2025 N/ A N/ A Wat er Wat er Rat e Case Rat e Case ($ 000's) 889 801 Regulatory Ohio 24-910-WW-SIC 24-911-ST-SIC W-218, Sub 573 Wat er Wast ew at er Wat er Rat e Case Rat e Case Rat e Case - Year 3 3,237 45 2,242 Activity Nort h Carolina W
Slide 26: Regulatory Activity Pending
Requested Regulatory State Docket Number Segment Type Annualized Revenue Increase Activity New Jersey No input Wat er Surcharge ($ 000's) 2,468 Pending Nort h Carolina Kent ucky W-218, Sub 629 2024-00346 Wat er and Wast ew at er Gas Rat e Case Rat e Case 44,763 10,910 No input Gas Surcharge 1,371 26
Slide 27: State by State Comparison of Services
Water and Wastewater Gas Distribution Rate Base Water Wastewater Total Rate Base Total State (millions) Connections Connections Customers (millions) Customers PA $4,538 458,504 62,429 520,933 $4,025 704,674 State by State IL $578 69,724 24,751 94,475 OH $555 153,489 11,267 164,756 Comparison TX $679
Slide 28: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Year Ended December 31, 2024 (in millions, except per share data) FY 2024 Net income (GAAP financial measure) $595.3 Adjustments: Gain on sales of assets and related transaction activities (94.0) Adjustments for estimated effects of unfavorable weather 18.7 Income tax