Essential Utilities, Inc., through its subsidiaries, operates regulated utilities that provide water, wastewater, or natural gas services in the United States. It offers water services through operating and maintenance contract with municipal authorities and other parties. The company also provides non-utility raw water supply services for firms in the natural gas drilling industry; and water and sewer line protection solutions, and repair services to households through a third-party. It serves approximately 7.5 million residential water, commercial water, fire protection, industrial water, wastewater, and other water and utility customers in Pennsylvania, Ohio, Texas, Illinois, North Carolina, New Jersey, Indiana, Virginia, West Virginia, and Kentucky under the Aqua and Peoples brands. The company was formerly known as Aqua America, Inc. and changed its name to Essential Utilities, Inc. in February 2020. Essential Utilities, Inc. was founded in 1886 and is headquartered in Bryn Mawr, Pennsylvania.
AI Generated Analysis | Feedback
Here are 1-3 brief analogies for Essential Utilities (WTRG):
- It's like American Water Works Company (AWK), but also a major provider of natural gas.
- It's like Consolidated Edison (ConEd) or Duke Energy, but focused on delivering water, wastewater, and natural gas services across multiple states.
AI Generated Analysis | Feedback
- Regulated Water Service: Provides safe and reliable drinking water to residential, commercial, and industrial customers.
- Regulated Wastewater Service: Collects, treats, and disposes of wastewater to protect public health and the environment.
- Regulated Natural Gas Service: Distributes natural gas to residential, commercial, and industrial customers for heating and other uses.
AI Generated Analysis | Feedback
```html
Essential Utilities (symbol: WTRG) is one of the largest publicly traded water, wastewater, and natural gas providers in the U.S. As a utility company, it primarily sells its services directly to end-users within its service territories, rather than to other companies for resale.
The company serves a broad range of customers, which can be categorized as follows:
-
Residential Customers: These are individual households and families that receive water, wastewater, and natural gas services for their homes.
-
Commercial Customers: This category includes various businesses, such as offices, retail stores, restaurants, hospitals, schools, and other non-industrial enterprises that utilize the company's utility services.
-
Industrial Customers: These are typically large manufacturing facilities, factories, and other industrial operations that require significant volumes of water, wastewater treatment, or natural gas for their production processes.
```
AI Generated Analysis | Feedback
```html
Christopher Franklin, Chairman and Chief Executive Officer
Christopher Franklin is the Chairman and Chief Executive Officer of Essential Utilities, Inc., a position he has held since July 2015, and has served as chairman since December 2017. A 30-year veteran of the company, he has held executive roles in public affairs, customer service, and operations. Since becoming CEO, the company's market capitalization more than tripled, and he led the $4.3 billion acquisition of Peoples Natural Gas in 2020, which created Essential Utilities. He refocused the company on growing its regulated business, purchasing municipal water and wastewater systems, and divesting under-performing unregulated businesses. Franklin also serves on the board of CenterPoint Energy.
Daniel Schuller, Executive Vice President, Chief Financial Officer
Daniel Schuller is the Executive Vice President and Chief Financial Officer of Essential Utilities, Inc., a role he assumed in October 2018. He is responsible for all financial operations, including accounting, SEC reporting, financial planning, tax, treasury, and internal audit. Schuller played a key role in developing the company's growth strategy and led its expansion from water and wastewater into natural gas. He also spearheaded the company's $2 billion secondary public equity offering and $900 million initial public debt offering to finance the Peoples acquisition. Prior to joining Essential Utilities in 2015, he was an investment principal at J.P. Morgan Asset Management – Infrastructure Investments Group from 2007 to 2015, where he provided strategic leadership as a director of portfolio companies such as SouthWest Water Company and Summit Utilities. Before J.P. Morgan, he was a manager at Mars & Co., an international strategy/general management consulting firm.
Christopher Luning, Executive Vice President, General Counsel and Secretary
Christopher Luning serves as the Executive Vice President, General Counsel and Secretary for Essential Utilities.
Colleen Arnold, President, Aqua Water
Colleen Arnold is the President of Aqua Water, a subsidiary of Essential Utilities.
Michael Huwar, President, Peoples Natural Gas
Michael Huwar is the President of Peoples Natural Gas, a subsidiary of Essential Utilities.
```
AI Generated Analysis | Feedback
The increasing pace of electrification in homes and industries, driven by climate change policies and advancements in technologies like heat pumps, poses a clear emerging threat to Essential Utilities' natural gas distribution business. This trend could lead to reduced demand for natural gas connections and throughput over the long term, impacting a core segment of their operations as customers shift away from fossil fuels for heating and other uses.
AI Generated Analysis | Feedback
Essential Utilities Inc. (WTRG) operates in two main segments: regulated water and wastewater services, and regulated natural gas distribution services in the United States. The addressable markets for these services are sized as follows:
-
Water and Wastewater Services: The U.S. water and wastewater treatment market size was valued at approximately USD 121.85 billion in 2024. This market is projected to reach around USD 238.36 billion by 2034, expanding at a compound annual growth rate (CAGR) of 6.94% from 2025 to 2034.
-
Natural Gas Distribution Services: The addressable market for natural gas distribution in the U.S. was valued at approximately USD 174.7 billion in 2024. This market is projected to grow to USD 222.5 billion in 2025.
AI Generated Analysis | Feedback
The expected drivers of future revenue growth for Essential Utilities (WTRG) over the next 2-3 years include:
- Rate Increases and Regulatory Recoveries: Essential Utilities has experienced revenue growth due to increases in rates and surcharges across its regulated water and natural gas segments. This trend is expected to continue, with regulatory recoveries contributing to future revenue.
- Significant Infrastructure Investments and Rate Base Growth: The company plans substantial capital investments, including an estimated $1.4 billion to $1.5 billion in 2025 and approximately $7.8 billion through 2029. These investments are expected to increase its regulated rate base, with the combined utility rate base projected to grow at an 8% compound annual growth rate through 2029, driving reliable future revenue.
- Strategic Acquisitions and Organic Customer Growth: Essential Utilities anticipates expanding its customer base in the water segment through both strategic acquisitions and organic growth. Management forecasts a 2-3% expansion in the customer base through these efforts. The company is actively pursuing potential municipal water and wastewater acquisitions that could add approximately 400,000 customers.
- Merger with American Water: The announced merger with American Water is a significant strategic initiative, expected to create a leading regulated U.S. water and wastewater utility. This transformational combination will result in an expanded rate base approaching $34 billion, serving over 5 million connections across 17 states, and is anticipated to generate synergies and foster continued growth.
AI Generated Analysis | Feedback
Share Repurchases
- Essential Utilities reported annual share buybacks of $1.192 million in 2022, $3.981 million in 2023, and $4.048 million in 2024.
- The trailing twelve months (TTM) annual share buybacks as of recent reports are $1.35 million.
Share Issuance
- Net total equity issued/repurchased for Essential Utilities was $81 million in 2022, $335 million in 2023, and $50 million in 2024.
- The company's issuance of stock for the trailing twelve months (TTM) ended September 2025 was $320 million.
- Under an at-the-market (ATM) sales agreement, the company sold 8,938,839 shares of common stock for net proceeds of $322,983 during 2023.
Outbound Investments
- Essential Utilities' Aqua Pennsylvania subsidiary completed the $37.75 million acquisition of the City of Beaver Falls wastewater system in Beaver County, PA, in June 2025.
- The acquisition of the Beaver Falls system was the sixth acquisition for Essential Utilities in 18 months, expanding service to 6,700 additional customers or 12,420 equivalent dwelling units.
- Since 2015, Essential Utilities has acquired over $548 million in rate base and added more than 136,000 new customers or equivalent dwelling units through various acquisitions.
Capital Expenditures
- Essential Utilities invested approximately $271 million in the first three months of 2025 and is on track to invest between $1.4 billion and $1.5 billion in infrastructure for the full year 2025.
- From 2025 through 2029, the company plans to invest approximately $7.8 billion to improve water and natural gas systems and enhance customer service.
- These capital investments primarily focus on replacing miles of aged underground utility pipe, addressing PFAS with at least $450 million in capital projects, and upgrading natural gas utility infrastructure to reduce methane emissions.
