Essential Utilities Q1 2020 Earnings Report
Key Takeaways
Essential Utilities reported a significant milestone in Q1 2020, closing the Peoples acquisition and changing its name. The company provided continuous service amidst the COVID-19 pandemic and reported increased revenues and adjusted income per share.
Essential closed the acquisition of Peoples, a natural gas distribution utility, expanding its service footprint.
The company changed its name from Aqua America Inc. to Essential Utilities Inc.
Essential filed the DELCORA wastewater acquisition application.
First quarter revenues increased by 27.1 percent, driven by the natural gas utility and rate increases in the regulated water segment.
Essential Utilities
Essential Utilities
Forward Guidance
Essential Utilities reaffirmed its 2020 full-year guidance, including adjusted income per diluted common share of $1.53 to $1.58 and infrastructure investments in both regulated water and natural gas segments.
Positive Outlook
- Adjusted income per diluted common share (non-GAAP) of $1.53 to $1.58
- Earnings growth CAGR of 5 to 7 percent for 2019 through 2022
- Regulated water segment infrastructure investments of approximately $550 million in 2020
- Regulated natural gas segment infrastructure investments of approximately $400 million in 2020
- Infrastructure investments of approximately $2.8 billion through 2022
Challenges Ahead
- The company is monitoring the global outbreak of COVID-19 and will update guidance impacts from the outbreak in the future if needed.
- Guidance is subject to risks and uncertainties, including disruptions in the global economy.
- The spread of the COVID-19 virus resulting in business disruptions.
- The company's ability to fund needed infrastructure.
- Housing and customer growth trends; unfavorable weather conditions.