Essential Utilities (WTRG) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $75.4 million ($0.28 per share), down from $91.3 million ($0.34 per share) in Q2 2023, mainly due to warmer weather impacting natural gas volumes.

• Year-to-date net income reached $341.2 million ($1.25 per share), up from $282.7 million ($1.07 per share) last year, driven by a gain on asset sales.

• Revenues for Q2 2024 were $434.4 million, a slight decrease of 0.5% year-over-year.

• Dividend increased by 6% to $0.3255 per share, marking the 34th increase in 33 years.

• Infrastructure investment reached $548.9 million year-to-date, with over $4 billion invested since 2020.

Financial highlights

• Q2 2024 operating revenues: $434.4 million (down 0.5% year-over-year); net income: $75.4 million (down 17.4%); diluted EPS: $0.28 (down from $0.34).

• Year-to-date net income: $341.2 million (up 20.7%); diluted EPS: $1.25 (up from $1.07), including a $66–$91.2 million after-tax gain on asset sales.

• Operations and maintenance expenses increased to $142.5 million in Q2 2024 from $133.5 million in Q2 2023.

• Year-to-date revenues: $1,046.5 million, down 10% from $1,163.2 million in 2023, mainly due to lower purchased gas costs.

• Operating cash flow for the first half of 2024 was $426.4 million, down from $621.4 million in the prior year.

Outlook and guidance

• 2024 net income per diluted share expected to exceed prior guidance of $1.96–$2.00, due to gain on sale of energy plant assets.

• 2024 regulated infrastructure investments projected at $1.3–$1.4 billion; $7.2 billion planned through 2028.

• Water segment rate base to grow at ~8% CAGR and natural gas segment at ~10% CAGR through 2028.

• Water customer base expected to grow 2–3% annually from acquisitions and organic growth.

• $250 million in equity to be raised in 2024 via ATM equity program.