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Dec 31, 2020
Essential Utilities Q4 2020 Earnings Report
Essential Utilities reported strong financial results for Q4 2020, driven by the Peoples acquisition and growth in the regulated water segment.
Key Takeaways
Essential Utilities reported a significant increase in revenues for the fourth quarter of 2020, primarily due to the acquisition of Peoples and growth in the regulated water segment. Net income also increased compared to the same period in the previous year.
Revenues increased by 109.7% to $474.0 million compared to Q4 2019.
The Peoples acquisition contributed $240.6 million to revenue growth.
Net income increased to $102.7 million, or $0.40 per share, compared to $64.2 million, or $0.28 per share, in Q4 2019.
Adjusted net income was $116.2 million, or $0.46 per share, after accounting for transaction-related gas rate credits.
Essential Utilities
Essential Utilities
Essential Utilities Revenue by Segment
Revenue by Segment
Regulated Natural Gas Revenue
CapyFin.com Forward Guidance
Essential Utilities provided full-year 2021 guidance, including net income per diluted common share of $1.64 to $1.69.
Positive Outlook
- Net income per diluted common share of $1.64 to $1.69
- Earnings per share growth CAGR of 5 to 7% for 2020 through 2023
- Regulated water segment infrastructure investments of approximately $550 million in 2021
- Regulated natural gas segment infrastructure investments of approximately $450 million in 2021
- Infrastructure investments of approximately $3 billion through 2023 to rehabilitate and strengthen water, wastewater and natural gas systems
Challenges Ahead
- Essential continues to monitor the effects of the COVID-19 pandemic on its customers, employees and the business and will update guidance impacts from the pandemic in the future if needed.
- Guidance is subject to risks and uncertainties, including, without limitation, those factors outlined in the “Forward Looking Statements” of this release and the “Risk Factors” section of the company’s annual and quarterly reports filed with the Securities and Exchange Commission.
- Essential Utilities does not guarantee future results of any kind.
- Average annual regulated water segment customer (or equivalent dwelling units) growth of between 2 and 3% from acquisitions and organic customer growth
- Gas customer count stable for 2021