California Water Service Group · NYSE:CWT
California Water Service — Q4 2024 Earnings Presentation
18 slides from California Water Service's earnings presentation, Feb 27, 2025
Slide 1: Fourth Quarter and Full Year 2024 Earnings Presentation
Fourth Quarter and Full Year 2024 Earnings Presentation February 27, 2025
Slide 2: Today’s Speakers
Today’s Speakers Marty Kropelnicki James Lynch Greg Milleman Chairman & CEO Sr. Vice President, CFO & Treasurer Vice President, Rates & Regulatory Affairs 2
Slide 3: Forward-Looking Statements and Other Important Information
Forward-Looking Statements and Other Important Information This presentation contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 (PSLRA). The forward-looking statements are intended to qualify under provisions of the federal secu
Slide 4: Recent Highlights
Recent Highlights 1 2 3 4 5 Strong 2024 Invested record Authorization from results with and level of capital the CPUC granting a Ongoing and Progress on the without the 2023 investments one-year extension proactive 2024 California interim rate relief totaling $471 in our Cost of Capital emergency GR
Slide 5: Fourth Quarter 2024 Financials
Fourth Quarter 2024 Financials (in millions except EPS amounts and percentages) Q4 2024 Q4 2023 $ Variance % Change Operating Revenue $222.2 $214.5 $7.7 3.6% Operating Expenses $189.9 $179.3 $10.6 5.9% Net Interest Expense $14.9 $12.3 $2.6 20.6% Net Income Attributable to CWT $19.7 $30.1 $10.5 34.7%
Slide 6: Diluted EPS Bridge Q4 2023 to Q4 2024
Diluted EPS Bridge Q4 2023 to Q4 2024 $1.20 $0.10 $1.00 $0.45 -$0.15 $0.80 $0.60 $0.52 -$0.36 -$0.06 $0.40 $0.33 -$0.13 -$0.04 $0.20 $0.00 6
Slide 7: Full Year 2024 Financials
Full Year 2024 Financials (in millions except EPS amounts and percentages) 2024 2023 $ Variance % Change Operating Revenue $1,036.8 $794.6 $242.2 30.5% Operating Expenses $811.8 $717.5 $94.3 13.1% Net Interest Expense $57.6 $49.8 $7.7 15.5% Net Income Attributable to CWT $190.8 $51.9 $138.9 267.6% D
Slide 8: Diluted EPS Bridge 2023 to 2024
Diluted EPS Bridge 2023 to 2024 $4.50 $1.53 $4.00 -$0.31 -$0.15 $3.50 -$0.06 -$0.11 $3.25 $3.00 -$0.25 -$0.04 $1.73 $2.50 $2.00 $1.50 $1.00 $0.91 $0.50 $0.00 8
Slide 9: Capital Investment & Depreciation
Capital Investment & Depreciation Growth in capital investment outpaces depreciation (in millions) 2015-2024 TOTAL $800 Capital Investment Depreciation $750 CapEx $700 $600 $660 $655 3x DEPRECIATION $500 $400 $299 $293 $328 $384 $471 $300 $259 $272 $274 $229 $177 $200 CapEx 2025-2027* >4x $100 $77 $
Slide 10: Regulated Rate Base Growth
Regulated Rate Base Growth Estimated to achieve over $3.3 billion by 2027 (in billions) $4.00 $3.50 $3.35 $2.93 $3.00 $2.34 $2.58 $2.50 $2.20 $2.01 $1.87 $2.00 $1.61 $1.50 $1.24 $1.26 $1.00 $0.50 $0.00 2018 2019 2020 2021 2022 2023 2024 2025* 2026* 2027* *2025-2027 rate base estimates include amount
Slide 11: Capital Allocation | Balance Sheet
Capital Allocation | Balance Sheet Continue to maintain financial discipline with strong balance sheet, while allocating capital in efficient manner Group maintained at- Group announced an Cal Water received the-market stock CPUC approved $0.08 increase in authorization from the issuance program; us
Slide 12: Liquidity Profile
Liquidity Profile Group maintains strong liquidity profile to execute capital plan and strategic M&A investments (in millions) $500 $450 • Expect to have adequate cash to support capital investment and growth $400 $350 • Credit facilities of $600M can be expanded up to $800M; $300 $395.0 facilities
Slide 13: Dividend Program
Dividend Program Strong history of returning cash to shareholders Consecutive 320th Dividend Quarterly in Amount of $0.30 $1.40 $1.24 $1.20 $1.12 Annual Increase $1.04 58th Expected to Yield Annual Dividend of $1.20 $1.00 $0.92 $1.00 $0.80 One-Time Special $0.04 Dividend Brings Anticipated Dividend
Slide 14: 2024 California General Rate Case
2024 California General Rate Case LUWEP Key updates since filing: • Assigned CPUC Commissioner issued Scoping Memo and Ruling in November 2024 Application proposes Low-Use • Public participation hearings held for all service areas, with Water Equity Program that would Cal Water receiving strong supp
Slide 15: Cost of Capital & Other Regulatory Updates
Cost of Capital & Other Regulatory Updates Cost of Capital Other States • CPUC granted Cal Water request to postpone Cost of Capital Application to • Group has initiated a more proactive May 1, 2026, effectively maintaining Cal Water’s current capital structure approach in pursuing rate adjustments
Slide 16: Emergency Preparedness & Response Leadership
Emergency Preparedness & Response Leadership Dedicated Training Proactive Wildfire Mitigation Regular Community Emergency Operations Comprehensive approach including Response training across service areas, vegetation management, infrastructure including notable Hawaii Water drills (July upgrades, cr
Slide 17: The Year Ahead
The Year Ahead Continue to Stay keenly Refresh S-3 filing execute our Continue to focused on in support of capital investment Evaluate strategic Provide our progress 2024 expense renewing At-The- plan, which growth areas customers with California GRC and management as Market (ATM) includes projects
Slide 18: Conclusion
Conclusion
California Water Service Group — Q4 2024 Earnings Presentation on 6ix