Slide 1: Full Year 2024 Earnings Call
NYSE Full Year 2024 LISTED WTRG Earnings Call February 27th, 2025 February 2024
Slide 2: Daniel Schuller, EVP, Chief Financial Officer
Daniel Schuller EVP, Chief Financial Officer 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 Chief Executive Officer
Christopher Franklin Chairman and Chief Executive Officer 4
Slide 5: 2024 Accomplishments
2024 Accomplishments Diluted Income per Common Share (GAAP) $2.17 $1.77 $1.86 $2.17 GAAP $1.67 Record Infrastructure $1.04 $1.12 Investment of Over Earnings per Share $1.3B (1) (2) (3) 2019 2020 2021 2022 2023 2024 Dividends Paid per Share 6% Dividend $93M Peoples $1.265 Increase $1.188 Natural Gas
Slide 6: Operational Achievements
Completed over Ten Replaced PFAS over 370 Treatment Miles of Pipe Facilities in in 2024(1) 2024 Operational Achievements Installed 30,000 Intelis Gas Meters at Peoples 6 1) Excludes abandoned miles.
Slide 7: Dilapidated Systems under Receivership
Dilapidated Systems under Receivership Aqua Pennsylvania Appointed Receiver by the PA PUC of 10 Systems Requiring Immediate Attention Wastewater Treatment Plant Building Pump and Well House Determined unsafe for entry and non-functioning Interim Emergency Order issued by PA PUC Continuous Lack of In
Slide 8: Leading Today, Shaping Tomorrow
Leading Today, Shaping Tomorrow Aqua PA Rate Reaffirms Case Approved 5 – 7% Multi-Year with a $73M Revenue EPS Guidance Increase Through 2027(1) $1.4 – $1.5B Infrastructure 8+% Annual Rate Investment Planned for Base Growth Through 2029 2025 8 1) Excludes earnings contribution from DELCORA; from FY
Slide 9: Daniel Schuller, EVP, Chief Financial Officer
Daniel Schuller EVP, Chief Financial Officer 9
Slide 10: Full Year Financial Highlights
Full Year Financial Highlights As of December 31, 2024 Revenues • Rates and surcharges and increased water ($ in millions, except per share data) sales were the primary drivers of the FY 2023 FY 2024 increase in full year revenues and were offset by the positive impact of lower Operating Revenues $2
Slide 11: Operating Revenues FY 2024 vs. FY 2023
Operating Revenues FY 2024 vs. FY 2023 Change in Operating Revenues (millions) $82.8 $11.6 $8.4 $8.2 $2,053.8 $(3.3) $2,086.1 $(75.3) Revenue FY 2023 Rates & Surcharges Volume - Water Other Growth - Water Volume - Gas Purchased Gas Revenue FY 2024 11
Slide 12: Operations & Maintenance Expenses FY 2024 vs. FY 2023
Operations & Maintenance Expenses FY 2024 vs. FY 2023 Change in Operations & Maintenance Expense (millions) $7.8 $5.9 $2.8 $8.1 $587.3 $575.5 ($1.3) ($11.6) FY 2023 USP (rider) Offset Employee-Related Costs Production Costs - Water Growth - Water Bad Debt Other FY 2024 12
Slide 13: Earnings per Common Share FY 2024 vs. FY 2023
Earnings per Common Share FY 2024 vs. FY 2023 Change in Earnings Per Share $0.030 $0.014 $2.17 $0.059 $0.218 ($0.005) ($0.009) $0.049 $1.97 $1.86 ($0.248) FY Rates & Other Volume - Growth - Expenses Volume - FY Gain on Unfavorable Adj. 2023 Surcharges Water Water Gas 2024 Sales of Weather EPS (GAAP)
Slide 14: Regulatory Activity
Regulatory Activity As of February 26, 2025 2024 COMPLETED 2025 COMPLETED PENDING REGULATORY REGULATORY RECOVERIES REGULATORY RECOVERIES RECOVERIES Water segment base rate cases or Water segment base rate cases or Water segment surcharges in OH with surcharges in IL, NJ, OH, NC, VA, and surcharges i
Slide 15: Christopher Franklin, Chairman and Chief Executive Officer
Christopher Franklin Chairman and Chief Executive Officer 15
Slide 16: Municipal Acquisition Program
Municipal Acquisition Program Closed Pending Transactions Transaction PA PA PA PA Over 210,000 (1) Total Customers GREENVILLE DELCORA BEAVER FALLS GREENVILLE • Wastewater • Wastewater • Wastewater • Water • 2,300 customers • 198,000 customers(1) • 7,600 customers(1) • 3,000 customers ~$344.0M • $18.
Slide 17: Guidance Outlook
Guidance Outlook(1) 2025 net income $X.XX to Through 2027, Regulated utility $1.4 to $1.5B 2025-2029 In 2025 we per diluted $X.XXB EPS will grow at rate base growth infrastructure Infrastructure expect to Growth Targets common share target of a CAGR of of 8% infrastructure investment investments of
Slide 18: Questions
a Essential 18
Slide 19: For More Information Contact
For More Information Contact: Brian Dingerdissen Ed Vallejo Vice President, Director, Investor Relations and Treasury Investor Relations (610) 645-1191 (267) 370-9717 BJDingerdissen@Essential.co EdVallejo@Essential.co 19
Slide 20: Appendix
Appendix Messentia 20
Slide 21: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights As of December 31, 2024 Revenues ($ in millions, except per share data) Q4 2023 Q4 2024 • Operating revenues increased due to an increase in purchased gas costs, rates and Operating Revenues $479.4 $604.4 surcharges, weather-normalization adjustment, customer assi
Slide 22: Operating Revenues Q4 2024 vs. Q4 2023
Operating Revenues Q4 2024 vs. Q4 2023 Change in Operating Revenues (millions) $9.9 $3.8 $0.6 $604.4 $14.2 $39.5 $57.0 $479.4 Revenue Q4 2023 Purchased Gas Rates & Surcharges Other Volume - Water Volume - Gas Growth - Water Revenue Q4 2024 22
Slide 23: Operations & Maintenance Expenses Q4 2024 vs. Q4 2023
Operations & Maintenance Expenses Q4 2024 vs. Q4 2023 Change in Operations & Maintenance Expense (millions) $1.5 $0.1 $4.9 ($0.1) $7.4 $163.5 ($7.3) $157.0 Q4 2023 USP (rider) offset Employee Related Costs Production Costs - Water Growth - Water Bad Debt Other Q4 2024 23
Slide 24: Earnings per Common Share Q4 2024 vs. Q4 2023
Earnings per Common Share Q4 2024 vs. Q4 2023 Change in Earnings Per Share $0.010 $0.006 $0.001 $0.67 $0.026 $0.029 $0.104 $0.50 Q4 2023 Rates & Surcharges Other Volume - Water Volume - Gas Expenses Growth - Water Q4 2024 24
Slide 25: Regulatory Activity Completed
Annualized State Docket Number Segment Type Revenue Increase ($thousands) 24-0044 Water Rate Case $4,726 24-0044 Wastewater Rate Case $6,906 24-0188 Water Surcharge $1,497 Illinois 24-0188 Wastewater Surcharge $567 2024 24-0188 Water Surcharge $1,823 Regulatory 24-0188 Wastewater Surcharge $693 N/A
Slide 26: Regulatory Activity Completed (Cont.)
Annualized State Docket Number Segment Type Revenue Increase ($thousands) M-2024-3051299 Water Surcharge $8,193 M-2024-3051315 Wastewater Surcharge $487 M-2024-3049664 Water Surcharge $3,714 2024 M-2024-3049675 Wastewater Surcharge $537 Regulatory Pennsylvania M-2024-3047751 Water Surcharge $5,626 A
Slide 27: Regulatory Activity Completed 2025
Annualized State Docket Number Segment Type Revenue Increase ($thousands) Ohio N/A Water Surcharge $1,690 W-218, Sub 573 Water Rate Case - Year 3 $2,820 North Carolina 2025 W-218, Sub 573 Wastewater Rate Case - Year 3 $1,310 Regulatory R-2024-3047822 R-2024-3047824 Water Wastewater Rate Case Rate Ca
Slide 28: Regulatory Activity Pending
Requested Annualized State Docket Number Segment Type Revenue Increase ($thousands) 24-910-WW-SIC Water Surcharge $3,237 Ohio 24-911-ST-SIC Wastewater Surcharge $52 Regulatory 2024-00332 Gas Surcharge $466 Kentucky 2024-00332 Gas Surcharge $1,371 Activity 2024-00346 Gas Rate Case $10,910 Pending As
Slide 29: State by State Comparison of Services
Rate Base Water Wastewater Total State (millions) Connections Connections Customers PA $4,538 458,504 62,429 520,933 IL $578 69,724 24,751 94,475 OH $555 153,489 11,267 164,756 TX $679 76,044 25,209 101,253 NC $398 87,320 23,380 110,700 State by State NJ $281 56,048 6,909 62,957 Comparison IN $130 1
Slide 30: Healthy Balance Sheet Supports Equity Requirements
Healthy Balance Sheet Supports Equity Requirements INVESTMENT GRADE SELECT CREDIT LONG-TERM CREDIT RATINGS TARGETS EQUITY NEEDS DEBT-TO-CAPITAL RATIO 50-55% $315M Baa2 Baa2 In 2025 Issuer Issuance DIVIDEND PAYOUT RATIO 60-65% FFO/NET DEBT RATIO A- BBB+ 12-14% Issuer Issuance 30
Slide 31: 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