Essential Utilities, Inc. · NYSE:WTRG
Essential Utilities — Aqua America — Corporate Update (January 2017)
22 slides from Essential Utilities's corporate update, Jan 17, 2017
Slide 1: 2017 Earnings Guidance Call
2017 Earnings Guidance Call AQUASM NYSE: WTR January 17, 2017
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains in addition to historical information, forward looking statements based on assumptions made by management regarding future circumstances over which the company may have little or no control, that involve risks, uncertainties and other factors that
Slide 3: Today's Presenters
Today’s Presenters Christopher Franklin President & Chief Executive Officer Dave Smeltzer Executive Vice President & Chief Financial Officer Brian Dingerdissen Vice President, Chief of Staff & Investor Relations NYSE: WTR AQUASM 3
Slide 4: Introduction
Introduction Christopher Franklin President and Chief Executive Officer AQUASM NYSE: WTR
Slide 5: Today's Agenda
Today’s Agenda • 2016 Guidance • Corporate Update • Introduce 2017 Guidance • Q&A Session NYSE: WTR AQUASM 5
Slide 6: 2016 Guidance
2016 Guidance Dave Smeltzer Executive Vice President & Chief Financial Officer AQUASM NYSE: WTR
Slide 7: 2016 Guidance
2016 Guidance Earnings Customer Growth Capex Operations and Maintenance Expense • Full-year earnings per share between $1.30 – $1.35 • 1.5 – 2% year-over-year customer growth • More than $350 million • More than $1.1 billion through 2018 • Ongoing rate base growth of approximately 6 – 7% • Same-syst
Slide 8: Potential Tax Reform Implications
Potential Tax Reform Implications Policy Changes Tax Rate Reduction Excess Deferred Taxes Reduced Repair Tax Deduction Increased Tax Deductions Potential Impacts Benefit likely deferred for return to customers absent immediate rate adjustment Expect re-class to Regulatory Liability for return to cus
Slide 9: Christopher Franklin, President and CEO
Corporate Update Christopher Franklin President and Chief Executive Officer AQUASM NYSE: WTR
Slide 10: Current Market-Based Activities Decisions by Segment
Current Market-Based Activities Decisions by Segment Segment Transportation Services Construction Tri-State Grouting Field Services Cross-connection Consulting/Training Limited O&M Home Services Outcome Divested Contract Ended Divested Exiting in 2017 Divesting in February 2017 Divesting in February
Slide 11: 2016 Acquisitions
2016 Acquisitions as-of December 31, 2016 State Acquisitions Closed Total Customers Total Collective Purchase Price PA 4 4,716 $17,397,188 IL 5 924 $2,322,000 NJ 3 222 $1,627,685 IN 3 334 $773,500 TX 1 210 $50,000 NC 1 62 $32,709 OH 1 60 $25,000 VA 1 30 $20,177 Total 19 6,558 $22,248,258 1.6% Total
Slide 12: 2017 Guidance
2017 Guidance Christopher Franklin President and Chief Executive Officer AQUASM NYSE: WTR
Slide 13: 2017 Guidance
2017 Guidance Earnings Full-year earnings per share between $1.34 – $1.39 Operations and Maintenance Expense Same-system O&M increase of 1 – 2% for full year Capex More than $450 million More than $1.2 billion through 2019 Rate base growth of approximately 6 – 7% Aqua PA expected to file infrastruct
Slide 14: Pending Acquisition Activity
Pending Acquisition Activity 2017 Anticipated Closings System Type Customers Purchase Price ($thousands) System A Muni 5,364 $75,100 System B Muni 2,100 $29,500 System C Muni 727 $5,500 System D Muni 570 $3,600 Total 8,761 $113,700 Top 70 Municipal Acquisition Prospects Represent Approximately 390,0
Slide 15: Top Municipal Prospects
Top 70 Municipal Prospects 92% of Prospective Customers from Systems Serving more than 2,500 Customers Cumulative Customer Connections 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 <2,500 2,500 - 4,999 5,000 - 9,999 10,000 - 14,999 15,000 - 24,999 ³ 25,000 System Size (# of connections) NYSE
Slide 16: Q&A Session
Q&A Session AQUASM NYSE: WTR
Slide 17: Thank You for Attending
Thank You for Attending Aqua America’s 2017 Earnings Guidance Call 2016 Full-year and Fourth Quarter Earnings Conference Call and Webcast Thursday, February 23, 2017 For more information contact: Brian Dingerdissen Vice President, Chief of Staff and Investor Relations 610.645.1191 NYSE: WTR AQUASM 1
Slide 18: Appendix
Appendix AQUASM NYSE: WTR
Slide 19: Rates and Infrastructure Surcharges Completed as of December 31, 2016
Rates and Infrastructure Surcharges Completed as-of December 31, 2016 Rates or Surcharges Received in 2016 State Docket Number Type Awarded Annualized Revenue Increase ($thousands) Illinois N/A Surcharge (w) $711 15-0017 Surcharge (w/ww) 242 New Jersey WR16010089 Rate Case (w) 200 North Carolina W-2
Slide 20: Rates and Infrastructure Surcharges Completed as of January 16, 2017
Rates and Infrastructure Surcharges Completed as-of January 16, 2017 Rates or Surcharges Received in 2017 State Docket Number Type Awarded Annualized Revenue Increase ($thousands) North Carolina W-215-Sub-363A Surcharges (w/ww) $564 Ohio Ordinance # 22-2013 Rate Case (w) 731 Ordinance # 14-041 Rate
Slide 21: Rates Pending as of January 16, 2017
Rates Pending as-of January 16, 2017 Rates Pending in 2017 State Docket Number Type Requested Annualized Revenue Increase ($thousands) Indiana 44752 Rate Case (ww) $2,372 Ohio 16-0907-WW-AIR Rate Case (w) 5,604 Total $7,976 Rates differentiated by water (w) and wastewater (ww) systems NYSE: WTR AQUA
Slide 22: Capital Investment Spending Regulated Operations
Capital Investment Spending Regulated Operations 2017 to 2019 Capital Investment Breakdown Tanks & Boosters 4.9% Vehicles 1.5% Other 0.6% IS 4.5% Meters 4.5% Source Treatment & Facilities 30.8% Mains & Services 53.2% 3 Year Total = +$1.2 Billion NYSE: WTR AQUASM 22