Q4 2025 Essential Utilities Inc Earnings Call

February 26, 2026

Full year 2025 earnings call.

All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to redraw your question again, press the star 1.

I would now like to turn the conference over to Brian fingerson. Thank you, D. You may begin.

Thank you. Good morning everyone. And thank you for joining us for our full year 2025 earnings call. If you did not receive a copy of the press release, you can find it on our investor relations website. The slides can also be found on the website along with a webcast of the event.

As a reminder, some of the matters discussed today may include 4 looking statements that involve risk uncertainties and other factors. That may cause the actual results to be materially different from any future results expressed or implied by such forward-looking statements. Please refer to our most recent 10q 10K and other SEC filings for description of such risk and uncertainties references. May be made to certain non-gaap Financial measures reconciliation of any non-gaap to gaap financial. Measures is posted on our website.

We will begin with Chris Franklin, our chairman and CEO who will provide an update on the company.

And Dan Schuler, our CFO will provide an overview of the financial results with that. I will turn it over to Chris Franklin.

Hey, thanks Brian and good morning everyone.

I want to start today's call off on slide 5, by thanking our shareholders last week. We received a final tally from the special meeting to approve our merger with American water. And I am just so proud to report that nearly 95% of the shares voted were in favor of the transaction.

This overwhelming mandate confirms what we have believed from the start that this combination creates a premier multi-state, utility with low-risk or beta and first quartile growth

I also want to note that our Research indicates that we secured shareholder approval in record speed, compared to similar deals over the years and we're very proud of that.

As we move to slide 6, you can see that by year end 2025, we completed the 7 feasts in the state's required.

This was another substantial accomplishment in an incredibly short period of time and I truly appreciate the efforts of our teams involved. Now, at this point, we've received the initial procedural schedules in most of the states. And based on those schedules, we continue to believe that we will close the transaction in the first quarter of 2027.

As you may recall, 3 states have statutory timelines, but the others do not

Now, I may not be able to promise this regulatory approval phase will proceed in the same record speed as our shareholder approval. But I can certainly say I'm proud of the constructive regulatory relationships that we've built over the years. And I firmly believe that this Mutual trust that we've built will lead to a constructive outcome.

So let's turn our Focus to reviewing the past Year's successes on slide 7.

2025 was truly a banner year for essential and I am very proud of what our team across every function has accomplished.

I'd like to highlight some of these.

As I think they speak to the drive for consistency and Excellence. I've emphasized in our calls, over the years.

Financially. We delivered 2025 earnings per share of $2.20 above our guidance range of $2.07 to $2.11

Now, even without some of the non-recurring, I'll call Beneficial items noted in our 10 cues and 10K throughout the year.

We would have ended up above the guidance range.

This represents our continued commitment and Legacy of delivering on the guidance that we provide investors and Daniel discussed this outperformance in more detail, but suffice it to say,

we delivered another strong year of earnings.

Now, alongside growing earnings per share. We also increase the quarterly dividend by 5 and a quarter percent in July.

That's 35 increases in 34 years for anybody, keeping score and 80 consecutive years of paying dividends

In 2025, we invested our record 1.4 billion in regulated, infrastructure, helping to improve, reliability and resiliency for our communities.

Also contributing to our growth were 3 Municipal Acquisitions. We completed in 2025.

He showcased the diversity of our growth strategy, which includes opportunities in Western Pennsylvania, and adding more municipal waste water systems to our platform.

operationally 2025 saw our water business continue executing on our

450 million, pfos Capital plan with over 50 Advanced treatment systems deployed across Pennsylvania and North Carolina.

This is yet another marker of our industry leadership on this issue.

We're also pleased to mark for our natural gas segment, our 100,000th intellus. Meter installation in 2025

The hard work and Technical expertise of both our water and natural gas, businesses have promoted, the health and resilience of our communities. And I'm just so proud of what the team accomplished in 2025.

Of course, both businesses have continued robust main replacement.

Throughout the year. And across both segments, we replaced or retired over 400 miles of Maine in 2025.

Now it's really worth noting that these successes demonstrate that our work on the merger did not distract us from our core operational goals and obligations to our customers. And that will most certainly continued through 2026.

Now regarding sustainability, I'm delighted to share that essential has been named as 1 of newsweek's. America's most responsible companies for the fifth consecutive year.

In 2025, we were also named to USA, today's America's climate leaders for the third consecutive year.

I've been consistent and steadfast in my message to you over the years, our focus on the environment, our focus on the community, our focus on people,

These are fundamental to our success as a company and our Fidelity to its mission.

American Water shares a similar commitment, which makes our combination only more compelling.

Chris: for the third consecutive year. I've been consistent and steadfast in my message to you over the years. Our focus on the environment, our focus on the community, our focus on people, these are fundamental to our success as a company and our fidelity to its mission. American Water shares a similar commitment, which makes our combination only more compelling. Another central area of focus for us, tied to sustainability, is maintaining our commitment to delivering high-quality, affordable service for our customers. Now, amid ongoing national and state discussions around affordability, particularly the impact on customer bills, I want to reiterate that our approach is grounded in making responsible investments in replacing aging infrastructure, sustaining high-quality water, and strengthening system reliability while carefully managing our operating costs. By balancing these priorities, we work to support customer affordability, while at the same time sustaining our financial performance.

Chris Franklin: For the third consecutive year. I've been consistent and steadfast in my message to you over the years. Our focus on the environment, our focus on the community, our focus on people, these are fundamental to our success as a company and our fidelity to its mission. American Water shares a similar commitment, which makes our combination only more compelling. Another central area of focus for us, tied to sustainability, is maintaining our commitment to delivering high-quality, affordable service for our customers. Now, amid ongoing national and state discussions around affordability, particularly the impact on customer bills, I want to reiterate that our approach is grounded in making responsible investments in replacing aging infrastructure, sustaining high-quality water, and strengthening system reliability while carefully managing our operating costs. By balancing these priorities, we work to support customer affordability, while at the same time sustaining our financial performance. With that, let me turn the call over to Dan to review our financials for the year.

Another Central area of a focus for us, tied to sustainability is maintaining our commitment to delivering high-quality affordable service for our customers.

Ongoing National and state discussions around affordability, particularly the impact on customer bills.

I've been consistent and steadfast in my message to you over the years: our focus on the environment, our focus on the community, our focus on people.

I want to reiterate the our approach is grounded in making responsible investments in replacing aging infrastructure, sustaining high, quality water and

These are fundamental to our success as a company and our Fidelity to its mission.

Strengthening system reliability while carefully managing our operating costs.

American Water shares a similar commitment, which makes our combination only more compelling.

Another Central area of a focus for us, tied to sustainability is maintaining our commitment to delivering high-quality affordable service for our customers.

By balancing, these priorities, we work to support customer affordability. While at the same time, sustaining our financial performance. And with that, let me turn the call over to Dan to review, our financials for the year.

Ahmed ongoing National and state discussions around affordability, particularly the impact on customer bills.

Thanks, Chris and good morning everyone. Let's begin on slide 9 with a high level view of the full year results, and then we'll get into the details on the waterfalls.

As Chris described our 2025 was very strong with revenues up 18.6% the year-over-year. Favorable drivers are partially offset by onm depreciation interest and taxes.

I want to reiterate the our approach is grounded in making responsible investments in replacing aging infrastructure, sustaining high quality water and strengthening system reliability while carefully managing our operating costs.

Chris: With that, let me turn the call over to Dan to review our financials for the year.

Dan: Thanks, Chris. Good morning, everyone. Let's begin on slide 9 with a high-level view of the full year results, and then we'll get into the details on the waterfalls. As Chris described, our 2025 was very strong, with revenues up 18.6%. The year-over-year favorable drivers are partially offset by O&M, depreciation, interest, and taxes. Let's recall that this year-over-year GAAP EPS comparison includes previously disclosed prior year items related to the gain on sale of the Pittsburgh area energy projects, as well as the unanticipated weather we experienced in 2024. The $2.20 for 2025 represents significant growth over the $1.97 of non-GAAP income per share in 2024. On Slide 10, we have the revenue waterfall for the year.

Dan Schuller: Thanks, Chris. Good morning, everyone. Let's begin on slide nine with a high-level view of the full year results, and then we'll get into the details on the waterfalls. As Chris described, our 2025 was very strong, with revenues up 18.6%. The year-over-year favorable drivers are partially offset by O&M, depreciation, interest, and taxes. Let's recall that this year-over-year GAAP EPS comparison includes previously disclosed prior year items related to the gain on sale of the Pittsburgh area energy projects, as well as the unanticipated weather we experienced in 2024. The $2.20 for 2025 represents significant growth over the $1.97 of non-GAAP income per share in 2024. On Slide 10, we have the revenue waterfall for the year.

By balancing these priorities, we work to support customer affordability while at the same time sustaining our financial performance. And with that, let me turn the call over to Dan to review our financials for the year.

Let's recall that this year-over-year gaap, EPS comparison includes previously. Disclosed prior year, items related to the gain on sale of the Pittsburgh area energy projects, as well as the unanticipated whether we experienced in 2024.

Thanks, Chris and good morning everyone. Let's begin on slide 9 with a high-level view of the full year result. And then we'll get into the details on the waterfalls.

the 2.20 for 2025 represents significant growth over the 197 of non-gaap income per share in 2024,

On slide 10, we have the revenue waterfall for the year.

As Chris described our 2025 was very strong with revenues up 18.6% the year-over-year. Favorable drivers are partially offset by onm depreciation interest and taxes.

Revenues increased 388.5 million or 18.6% from about 2.1 billion a year ago to nearly 2.5 billion this year.

Approximately 177.6 million of that. Increase is the result of regulatory recovery.

Purchased gas, which represents the cost of the natural gas sold. By the company increased, 126.8 million year-over-year, due to both an increase in gas, commodity prices and higher gas usage.

the $2.20 for 2025 represents significant growth over the dollar 1977 of non-gaap income per share in 2024

Million.

Dan: Revenues increased to three hundred and eighty-eight and a half million, or 18.6%, from about $2.1 billion a year ago to nearly $2.5 billion this year. Approximately $177.6 million of that increase is the result of regulatory recoveries. Purchased gas, which represents the cost of the natural gas sold by the company, increased $126.8 million year-over-year, due to both an increase in gas commodity prices and higher gas usage. Higher gas volumes contributed $57.2 million, while the other category of $30 million consists of reduced tax repair sur credits to customers, as well as impacts from the Pennsylvania Gas business's Universal Service rider. These favorable impacts were partially offset by weather normalization credits to our gas customers due to colder than normal weather in 2025.

Dan Schuller: Revenues increased to three hundred and eighty-eight and a half million, or 18.6%, from about $2.1 billion a year ago to nearly $2.5 billion this year. Approximately $177.6 million of that increase is the result of regulatory recoveries. Purchased gas, which represents the cost of the natural gas sold by the company, increased $126.8 million year-over-year, due to both an increase in gas commodity prices and higher gas usage. Higher gas volumes contributed $57.2 million, while the other category of $30 million consists of reduced tax repair sur credits to customers, as well as impacts from the Pennsylvania Gas business's Universal Service rider. These favorable impacts were partially offset by weather normalization credits to our gas customers due to colder than normal weather in 2025.

On slide 10, we have the revenue waterfall for the year.

While the other category of 30 million consists of reduced tax repairs, sir credits to customers, as well as impacts from the Pennsylvania, gas businesses, Universal Services writer,

Revenues increased 388.5 million or 18.6% from about 2.1 billion a year ago to nearly 2.5 billion this year.

Approximately 177.6 million of that. Increase is the result of regulatory recovery.

These favorable impacts were partially offset by whether normalization credits to our gas customers due to colder than normal weather in 2025.

Purchased gas, which represents the cost of a natural gas sold. By the company increased, 126.8 million year-over-year, due to both an increase in gas, commodity prices and higher gas usage.

And finally, customer growth added 5.6 million. However, lower water volumes due primarily to wetter weather led to an 8.6 million offset to the company's Revenue growth for the year.

Next on slide 11, our onm slide, we see onm, expenses up above 52.3 million or 8.9% year-over-year.

Higher guest volumes contributed $57.2 million, while the other category of $30 million consists of reduced tax repair SIR credits to customers, as well as impacts from the Pennsylvania gas businesses' universal services writer.

Is include an increase in employee related costs of 26.9 million compared to Prior year.

These favorable impacts were partially offset by whether normalization credits to our gas customers due to colder than normal weather in 2025.

Dan: Finally, customer growth added $5.6 million. However, lower water volumes, due primarily to wetter weather, led to an $8.6 million offset to the company's revenue growth for the year. On slide 11, our O&M slide, we see O&M expenses up about $52.3 million, or 8.9% year-over-year. The main drivers include an increase in employee-related costs of $26.9 million compared to prior year, an increase in the gas business's Universal Service rider of seventeen and a half million, which has an offset in revenues, and an increase of eight and a half million in water production costs, with contributing increases in power, purchased water, and chemicals. Operating expenses related to newly acquired water and wastewater systems added $1.7 million.

Dan Schuller: Finally, customer growth added $5.6 million. However, lower water volumes, due primarily to wetter weather, led to an $8.6 million offset to the company's revenue growth for the year. On slide 11, our O&M slide, we see O&M expenses up about $52.3 million, or 8.9% year-over-year. The main drivers include an increase in employee-related costs of $26.9 million compared to prior year, an increase in the gas business's Universal Service rider of seventeen and a half million, which has an offset in revenues, and an increase of eight and a half million in water production costs, with contributing increases in power, purchased water, and chemicals. Operating expenses related to newly acquired water and wastewater systems added $1.7 million.

An increase in a gas business's Universal Services, Rider of 17, and 1.5 million.

Which has an offset in revenues.

And an increase of 8 and a half million in water production costs, which contributing increases in power purchased water and chemicals.

And finally, customer growth added $5.6 million. However, lower water volumes due primarily to wetter weather led to an $8.6 million offset to the company's revenue growth for the year.

Operating expenses related to newly acquired Water and Wastewater systems added 1.7 million.

Next on slide 11, our onm slide we see onm expenses up about 52.39% year-over-year.

Other category reduced onm by 2.6 million, including the positive impacts of higher capitalization in the gas business.

Mean, drivers include an increase in employee related costs of 26.9 million compared to Prior year.

Lower spending on materials and supplies, and some insurance related benefits.

Offset by expenses related to the merger with American?

An increase in a gas business is Universal Services Rider of 17.5 million.

Which has an offset in revenues.

If we normalize out the merger expenses, insurance proceeds and growth, we get to a year-over-year increase more in line with historic norms.

And an increase of 8.5 million. In water production costs, which contributing increases in power purchased water and chemicals.

Operating expenses related to newly acquired Water and Wastewater systems added 1.7 million.

Dan: The other category reduced O&M by $2.6 million, including the positive impacts of higher capitalization in the gas business, lower spending on materials and supplies, and some insurance-related benefits, offset by expenses related to the merger with American Water. If we normalize out the merger expenses, insurance proceeds, and growth, we get to a year-over-year increase more in line with historic norms. Moving to Slide 12, our earnings per share waterfall, we begin with 2024 GAAP EPS of $2.17. Now, as a reminder, we made a few adjustments to arrive at a non-GAAP income per share of $1.97 for 2024. These adjustments included the removal of the one-time gain from the sale of the Pittsburgh area energy projects and adjustments for unanticipated weather, along with the associated tax impacts.

Dan Schuller: The other category reduced O&M by $2.6 million, including the positive impacts of higher capitalization in the gas business, lower spending on materials and supplies, and some insurance-related benefits, offset by expenses related to the merger with American Water. If we normalize out the merger expenses, insurance proceeds, and growth, we get to a year-over-year increase more in line with historic norms. Moving to Slide 12, our earnings per share waterfall, we begin with 2024 GAAP EPS of $2.17. Now, as a reminder, we made a few adjustments to arrive at a non-GAAP income per share of $1.97 for 2024. These adjustments included the removal of the one-time gain from the sale of the Pittsburgh area energy projects and adjustments for unanticipated weather, along with the associated tax impacts.

Moving to slide 12, our earnings per share waterfall. We begin with 2024, gaap EPS of $2.17,

And as a reminder, we made a few adjustments to arrive at a non-gaap income per share of a $1.97 for 2024.

The other category reduced onm by 2.6 million, including the positive impact of higher capitalization in the gas business.

Lower spending on materials and supplies and some insurance related benefits, offset by expenses related to the merger with American.

These adjustments included the removal of the 1-time gain from the sale of the Pittsburgh area, energy projects, and adjustments for unanticipated, weather along with the Associated Tax impacts.

To find the reconciliation in the investor section of our website and as an appendix to this Tech.

If we normalize out the merger expenses, insurance proceeds and growth, we get to a year-over-year increase more in line with historic norms.

in 2025, we picked up 46 cents from regulatory, recoveries

Moving to slide 12, our earnings per share waterfall. We begin with 2024 GAAP EPS of $2.17,

An additional 15 cents from higher gas volumes and an incremental Penny from water growth.

These are partially offset by 2 cents from lower water volume 9 cents from higher expenses and 48 cents from other

Dan: You'll find the reconciliation in the investor section of our website and as an appendix to this deck. In 2025, we picked up $0.46 from regulatory recoveries, an additional $0.15 from higher gas volumes, and an incremental $0.01 from water growth. These are partially offset by $0.02 from lower water volume, $0.09 from higher expenses, and $0.48 from other. Other includes $0.24 from the prior year gain on sale from the energy project, as well as increased depreciation, amortization, interest, and taxes. As we've discussed in the last couple of earnings calls in 2025, our expectation was that we would achieve GAAP earnings per share above our guidance range of $2.07 to $2.11 due to non-recurring benefits.

Dan Schuller: You'll find the reconciliation in the investor section of our website and as an appendix to this deck. In 2025, we picked up $0.46 from regulatory recoveries, an additional $0.15 from higher gas volumes, and an incremental $0.01 from water growth. These are partially offset by $0.02 from lower water volume, $0.09 from higher expenses, and $0.48 from other. Other includes $0.24 from the prior year gain on sale from the energy project, as well as increased depreciation, amortization, interest, and taxes. As we've discussed in the last couple of earnings calls in 2025, our expectation was that we would achieve GAAP earnings per share above our guidance range of $2.07 to $2.11 due to non-recurring benefits.

These adjustments included the removal of the 1-time gain from the sale of the Pittsburgh area, energy projects, and adjustments for unanticipated, weather along with the Associated Tax impacts.

Now other includes 24 cents from the prior year, gain on sale, from the energy project as well as increased depreciation, amortization, interest and taxes.

You’ll find the reconciliation in the investor section of our website and as an appendix to this deck.

25, we picked up 46 cents from regulatory, recoveries

As we've discussed in the last couple of earnings calls in 2025, our expectation was that we, we would achieve Gap, earnings per share above. Our guidance range of $2.07 to $2.11 due to non-recurring benefits.

An additional 15 cents from higher gas volumes and an incremental Penny from water growth.

and indeed, we finished the year with full year, gaap EPS of $2.20,

These are partially offset by 2 cents from lower water volume 9 cents from higher expenses and 48 cents from other

let me point out a few non-recurring items from our 10 cues and the upcoming 2025 10K that contributed to this favorability

Now other includes 24 cents from the prior year, gain on sale, from the energy project as well as increased depreciation, amortization, interest and taxes.

Based on the February, 2025 Aqua Pennsylvania. Rate order we had the release of an income tax Reserve regulatory liability. And we had a favorable regulatory asset adjustment. That decreased bad debt expense

Second of those that was actually tied to a coid related Reserve.

Dan: Indeed, we finished the year with full year GAAP EPS of $2.20. Let me point out a few non-recurring items from our 10-Qs and the upcoming 2025 10-K that contributed to this favorability. Based on the February 2025 Aqua Pennsylvania rate order, we had the release of an income tax reserve regulatory liability, and we had a favorable regulatory asset adjustment that decreased bad debt expense. A second of those that was actually tied to a COVID-related reserve. In Q1, we had a benefit from insurance proceeds. In Q2, we had a benefit related to the closure of the PNG sales and use tax audit. Finally, as you'll see in the 10-K, these were partially offset by merger-related expenses for banking, legal, and other matters.

Dan Schuller: Indeed, we finished the year with full year GAAP EPS of $2.20. Let me point out a few non-recurring items from our 10-Qs and the upcoming 2025 10-K that contributed to this favorability. Based on the February 2025 Aqua Pennsylvania rate order, we had the release of an income tax reserve regulatory liability, and we had a favorable regulatory asset adjustment that decreased bad debt expense. A second of those that was actually tied to a COVID-related reserve. In Q1, we had a benefit from insurance proceeds. In Q2, we had a benefit related to the closure of the PNG sales and use tax audit. Finally, as you'll see in the 10-K, these were partially offset by merger-related expenses for banking, legal, and other matters.

As we've discussed in the last couple earnings calls in 2025, our expectation was that we, we would achieve Gap, earnings per share above. Our guidance range of $2.07 to $2.11 due to non-recurring benefits.

And then the first quarter, we had a benefit from insurance proceeds.

and indeed, we finished the year with full year, gaap EPS of $2.20,

And then in the second quarter, we had a benefit related to the closure of the PNG sales and use tax audit.

Let me point out a few non-recurring items from our 10-Qs and the upcoming 2025 10-K that contributed to this favorability.

Finally, as you'll see in the 10K, these were partially offset by merger related expenses for banking legal and other matters. However, even excluding these 1-time items, both good and bad, we still had strong financial performance. That would have exceeded our range.

Second of those that was actually tied to a coid related Reserve.

We remain committed to our long-term goal of delivering 5 to 7% EPS growth for the 3 year period of 2024 through 2027.

And then the first quarter, we had a benefit from insurance proceeds.

And then in the second quarter, we had a benefit related to the closure of the PNG sales and use tax audit.

Given the impact of 1-time items in the 2025 results, for a better sense of 2026, I would use that long-term kegger of 5 to 7% off the non-gaap income per share of a 1.97 in 2024.

Dan: However, even excluding these one-time items, both good and bad, we still had strong financial performance that would have exceeded our range. We remain committed to our long-term goal of delivering 5% to 7% EPS growth for the 3-year period of 2024 through 2027. Given the impact of one-time items in the 2025 results, for a better sense of 2026, I would use that long-term CAGR of 5% to 7% off the non-GAAP income per share of $1.97 in 2024. I will conclude my remarks on slide 13 with a discussion on regulatory activity. In 2025, Essential completed regulatory recoveries that total $101.5 million of incremental annualized revenue, with $92.6 million of this related to our water and wastewater business and the remainder to our gas business.

Dan Schuller: However, even excluding these one-time items, both good and bad, we still had strong financial performance that would have exceeded our range. We remain committed to our long-term goal of delivering 5% to 7% EPS growth for the 3-year period of 2024 through 2027. Given the impact of one-time items in the 2025 results, for a better sense of 2026, I would use that long-term CAGR of 5% to 7% off the non-GAAP income per share of $1.97 in 2024. I will conclude my remarks on slide 13 with a discussion on regulatory activity. In 2025, Essential completed regulatory recoveries that total $101.5 million of incremental annualized revenue, with $92.6 million of this related to our water and wastewater business and the remainder to our gas business.

I will conclude my remarks on slide 13 with a discussion on regulatory activity.

Completed regulatory recovery is the total 101.5 million of incremental. Annualized Revenue with 92.6 million of this related to our water and wastewater business. And the remainder to our gas business

We remain committed to our long-term goal of delivering 5 to 7% EPS growth for the 3-year period of 2024 through 2027.

Thus, far in 2026 essential has completed regulatory recovery is the total 12.4 million across our water, Wastewater and natural gas businesses.

Given the impact of one-time items in the 2025 results, for a better sense of 2026, I would use that long-term CAGR of 5 to 7% off the non-GAAP income per share of $1.97 in 2024.

Looking ahead. Now, our water and wastewater segment has filed for regulatory, recoveries with a requested annualized Revenue increase totaling 101.9 million.

I will conclude my remarks on slide 13 with a discussion on regulatory activity.

We continue to manage our regulatory activity to maintain safe and reliable service. Earn an appropriate return on the capital that we invest and minimise Regulatory lag. While always considering affordability for our customers.

In 2025, essential completed regulatory, recoveries that total 101 and a half million of incremental, annualized Revenue with 92.6 million of this related to our water and wastewater business. And the remainder to our gas business,

Dan: Thus far in 2026, Essential has completed regulatory recoveries that total $12.4 million across our water, wastewater, and natural gas businesses. Looking ahead now, our water and wastewater segment has filed for regulatory recoveries with a requested annualized revenue increase totaling $101.9 million. We continue to manage our regulatory activity to maintain safe and reliable service, earn an appropriate return on the capital we invest, and minimize regulatory lag while always considering affordability for our customers. This will, in a similar matter to the past, continue throughout 2026 as we approach our anticipated combination with American Water. With that, I'll turn it back over to Chris. Chris?

Dan Schuller: Thus far in 2026, Essential has completed regulatory recoveries that total $12.4 million across our water, wastewater, and natural gas businesses. Looking ahead now, our water and wastewater segment has filed for regulatory recoveries with a requested annualized revenue increase totaling $101.9 million. We continue to manage our regulatory activity to maintain safe and reliable service, earn an appropriate return on the capital we invest, and minimize regulatory lag while always considering affordability for our customers. This will, in a similar matter to the past, continue throughout 2026 as we approach our anticipated combination with American Water. With that, I'll turn it back over to Chris. Chris?

This will in a similar matter to the Past continued throughout 2026 as we approach, our anticipated combination with American Water.

And with that, I'll turn it back over to Chris Chris.

Thus, far in 2026 essential has completed regulatory recovery is the total 12.4 million across our water, Wastewater and natural gas businesses.

All right. Thanks Dan. Let's move to slide 15 to recap our water Wastewater Acquisitions for the year and take a little look forward.

Looking ahead, our water and wastewater segment has filed for regulatory recoveries, with a requested annualized revenue increase totaling $101.9 million.

We continue to manage our regulatory activity to maintain safe and reliable service, earn an appropriate return on the capital that we invest, and minimise regulatory lag, while always considering affordability for our customers.

During 2025 essential completed 3, Acquisitions of water and wastewater systems were approximately 58 million which along with the organic growth in existing systems represent over 12,700 new customers.

This will, in a similar manner to the past, continue throughout 2026 as we approach our anticipated combination with American Water.

Chris: All right, thanks, Dan. Let's move to slide 15 to recap our water/wastewater acquisitions for the year and take a little look forward. During 2025, Essential Utilities completed three acquisitions of water and wastewater systems for approximately $58 million, which, along with the organic growth in existing systems, represent over 12,700 new customers. I want to touch on some recent news you may have heard. The Supreme Court in Pennsylvania communicated its decision regarding the City of Chester and the Chester Water Authority. We respect the Court's ruling and the judicial process, and we're closely monitoring the receiver's next move now that there does not appear to be an asset to sell in that city.

Chris Franklin: All right, thanks, Dan. Let's move to slide 15 to recap our water/wastewater acquisitions for the year and take a little look forward. During 2025, Essential Utilities completed three acquisitions of water and wastewater systems for approximately $58 million, which, along with the organic growth in existing systems, represent over 12,700 new customers. I want to touch on some recent news you may have heard. The Supreme Court in Pennsylvania communicated its decision regarding the City of Chester and the Chester Water Authority. We respect the Court's ruling and the judicial process, and we're closely monitoring the receiver's next move now that there does not appear to be an asset to sell in that city.

And with that, I'll turn it back over to Chris Chris.

I want to touch on some recent news. You may have heard the Supreme Court in Pennsylvania, communicated. Its decision regarding the city of Chester and the Chester Water Authority.

All right. Thanks Dan. Let's move to slide 15 to recap our water Wastewater Acquisitions for the year and take a little look forward.

We respect the Court's ruling and the judicial process and we're closely monitoring the receiver's next move. Now that there does not appear to be an asset to sell in that City.

During 2025, Essential completed 3 acquisitions of water and wastewater systems for approximately $58 million, which, along with the organic growth in existing systems, represent over 12,700 new customers.

We Stand ready to participate in any process where our company can be part of an overall solution, that assists, the city of Chester to exit. Bankruptcy, and ensure utility customers in the region receive quality water at affordable rates.

Now looking forward, we have 3 signed purchase agreements for systems in Pennsylvania and Texas.

I want to touch on some recent news. You may have heard the Supreme Court in Pennsylvania, communicated. Its decision regarding the city of Chester and the Chester Water Authority.

Chris: We stand ready to participate in any process where our company can be part of an overall solution that assists the City of Chester to exit bankruptcy and ensure utility customers in the region receive quality water at affordable rates. Now, looking forward, we have three signed purchase agreements for systems in Pennsylvania and Texas, which we expect to close in the first half of 2026. Notably, last month, the Pennsylvania Public Utility Commission approved Aqua Pennsylvania's acquisition of the assets of the Greenville Municipal Water Authority without modification. I'll remind you that progress on our DELCORA transaction, the fourth pending item listed here, continues to be stalled by a stay put in place by a federal bankruptcy court judge related to the bankruptcy of the City of Chester. Hopefully, we'll see some movement on DELCORA now that the Supreme Court has ruled.

Chris Franklin: We stand ready to participate in any process where our company can be part of an overall solution that assists the City of Chester to exit bankruptcy and ensure utility customers in the region receive quality water at affordable rates. Now, looking forward, we have three signed purchase agreements for systems in Pennsylvania and Texas, which we expect to close in the first half of 2026. Notably, last month, the Pennsylvania Public Utility Commission approved Aqua Pennsylvania's acquisition of the assets of the Greenville Municipal Water Authority without modification. I'll remind you that progress on our DELCORA transaction, the fourth pending item listed here, continues to be stalled by a stay put in place by a federal bankruptcy court judge related to the bankruptcy of the City of Chester. Hopefully, we'll see some movement on DELCORA now that the Supreme Court has ruled.

We respect the Court's ruling and the judicial process and we're closely monitoring the receiver's next move. Now that there does not appear to be an asset to sell in that City.

Which we expect to close in the first half of 2026. Notably last month, the Pennsylvania Public Utility Commission, approved, Aqua Pennsylvania's, acquisition of the assets of the Greenville, Municipal Water, Authority, without modification.

And receive quality water at affordable rates.

I'll remind you that progress on our dellora transaction. The fourth, pending item listed here continues to be installed by a stay put in place by a federal bankruptcy, court judge related to the bankruptcy of the city of Chester,

hopefully, we'll see some movement on delcora now that the Supreme Court has ruled

We remain optimistic about the consolidation of water and wastewater systems in the United States. And look forward to leveraging, the combined resources of essential and American Water to accelerate our business development work.

Now looking forward, we have 3 signed purchase agreements for systems in Pennsylvania and Texas which we expect to close in the first half of 2026. Notably last month, the Pennsylvania Public Utility Commission, approved, Aqua Pennsylvania's, acquisition of the assets of the Greenville Municipal Water, Authority, without modification.

All right, let me conclude my remarks on slide 16.

as we noted in November on our third quarter, 2025 earnings call

I'll remind you that progress on our Delta transactions. The fourth pending item listed here continues to be stalled by a stay, put in place by a federal bankruptcy, court judge related to the bankruptcy of the city of Chester,

Chris: We remain optimistic about the consolidation of water and wastewater systems in the United States and look forward to leveraging the combined resources of Essential and American Water to accelerate our business development work. All right, let me conclude my remarks on slide 16. As we noted in November on our Q3 2025 earnings call, we are reaffirming our 5% to 7% multiyear earnings per share guidance through 2027 from the adjusted non-GAAP 2024 earnings per share of $1.97. This includes acquisitions expected to close in 2026, but excludes DELCORA. As Dan noted earlier, this 5% to 7% CAGR should be applied to our 2024 non-GAAP income per share of $1.97, as this strips out the favorability of non-recurring items in 2025.

Chris Franklin: We remain optimistic about the consolidation of water and wastewater systems in the United States and look forward to leveraging the combined resources of Essential and American Water to accelerate our business development work. All right, let me conclude my remarks on slide 16. As we noted in November on our Q3 2025 earnings call, we are reaffirming our 5% to 7% multiyear earnings per share guidance through 2027 from the adjusted non-GAAP 2024 earnings per share of $1.97. This includes acquisitions expected to close in 2026, but excludes DELCORA. As Dan noted earlier, this 5% to 7% CAGR should be applied to our 2024 non-GAAP income per share of $1.97, as this strips out the favorability of non-recurring items in 2025.

Hopefully, we'll see some movement on DELCORA now that the Supreme Court has ruled.

We are reaffirming our 5 to 7%. Multi-year earnings per share guidance. Through 2027 from the adjusted non-gaap 2024 earnings per share of a dollar 97.

This includes Acquisitions expected to close in 2026, but excludes Delora.

All right, let me conclude my remarks on slide 16.

This Dan noted earlier, this 5 to 7%, kegger should be applied to our 2024 non-gaap income per share of a dollar 97, as this strips out, the favorability of non-recurring items in 2025.

as we noted in November on our third quarter, 2025 earnings call

We are reaffirming our 5 to 7%. Multi-year earnings per share guidance. Through 2027 from the adjusted non-gaap 2024 earnings per share of a dollar 97.

We also remain committed to maintaining a strong balance sheet, improving cash flow and debt, metrics and delivering consistent dividend growth while keeping, our payout ratio between 60 and 65%.

This includes Acquisitions expected to close in 2026, but excludes Delora.

In 2026, regulated infrastructure Investments are expected to be 1.7 billion dollars.

Chris: We also remain committed to maintaining a strong balance sheet, improving cash flow and debt metrics, and delivering consistent dividend growth while keeping our payout ratio between 60% and 65%. In 2026, regulated infrastructure investments are expected to be $1.7 billion. Finally, I want to reaffirm our PFAS commitments. I touched on earlier, we are continuing to execute our multi-year plan to ensure that finished water does not exceed the federal maximum contaminant level of EPA-regulated PFAS chemicals. Essential is committed to providing finished water that will meet EPA timelines and standards. Listen, all in all, I commend the entire Essential Utilities team for an excellent 2025 performance, I reiterate our company's commitments to all its stakeholders as we embark on what I anticipate will be another strong year and productive lead up to our anticipated merger with American Water.

Chris Franklin: We also remain committed to maintaining a strong balance sheet, improving cash flow and debt metrics, and delivering consistent dividend growth while keeping our payout ratio between 60% and 65%. In 2026, regulated infrastructure investments are expected to be $1.7 billion. Finally, I want to reaffirm our PFAS commitments. I touched on earlier, we are continuing to execute our multi-year plan to ensure that finished water does not exceed the federal maximum contaminant level of EPA-regulated PFAS chemicals. Essential is committed to providing finished water that will meet EPA timelines and standards. Listen, all in all, I commend the entire Essential Utilities team for an excellent 2025 performance, I reiterate our company's commitments to all its stakeholders as we embark on what I anticipate will be another strong year and productive lead up to our anticipated merger with American Water.With that, I'm going to conclude the formal remarks for the day, and we'll open it up for questions.

The stand noted earlier this 5 to 7% kegger should be applied to our 2024 non-gaap income per share of a 1.97, as this strips out, the favorability of non-recurring items in 2025.

And finally, I want to reaffirm our POS commitments that I touched on earlier. We are continuing to execute our multi-year plan to ensure that finished water does not exceed the federal maximum contaminant level of EPA regulated POS chemicals.

Essential is committed to providing finished water that will meet EPA timelines and standards.

We also remain committed to maintaining a strong balance sheet, improving cash flow and debt, metrics and delivering consistent dividend growth while keeping, our payout ratio between 60 and 65%.

In 2026, regulated infrastructure investments are expected to be $1.7 billion.

2025 performance. And I reiterate our company's commitments to all its stakeholders as we embark on what I anticipate will be another strong year and productive lead up to our anticipated, merger with American Water.

And with that, I'm going to conclude the formal remarks for the day and we'll open it up for questions.

And finally, I want to reaffirm our POS commitments that I touched on earlier. We are continuing to execute our multi-year plan to ensure that the finished water does not exceed the federal maximum contaminant level of EPA regulated POS chemicals.

Essential is committed to providing finished water that will meet EPA timelines and standards.

Thank you. We will now begin the question and answer session if you have dialed in and would like to ask a question. Please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1. Again, if you're called upon to ask your question, in our listing, by our speaker phone on your device, please pick up your handset to ensure that your phone is not on mute when asking you a question.

Chris: With that, I'm going to conclude the formal remarks for the day, and we'll open it up for questions.

Listen. All In All I commend the entire essential utilities team for an excellent, 2025 performance. And I reiterate our company's commitments, to all its stakeholders as we embark on what I anticipate, will be another strong year and productive lead up to our anticipated, merger with American Water.

Our first question comes from, Paul zimbardo with Jeff. Please. Go ahead.

Hi, good morning, team.

Hi, good morning. How are you?

And with that, I'm going to conclude the formal remarks for the day and we'll open it up for questions.

Operator: Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. If you're called upon to ask your question and are listening via speakerphone on your device, please pick up your handset to ensure that your phone is not on mute when asking a question. Our first question comes from Paul Zimbardo with Jefferies. Please go ahead.

I'm good, I'm good. Thank you for taking the questions. The first was and I apologize. I've missed it. Did you quantify what the

Thank you. We will now begin to question and answer the session. If you have dialed in, I would like to ask a question. Please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again,

The non-gaap 2025 would be if you made those adjustments, I know you said favorable versus the guidance range but I I apologize, I missed that number.

If you're called upon to ask your question, in our listing, by our speaker phone on your device. Please pick up your handset to ensure that your phone is not on mute when asking you a question.

Our first question comes from Paul Zimbardo with Jeffrey. Please go ahead.

Paul Zimbardo: Hi, good morning, team. Hi, good morning.

Hi, good morning, team.

Chris: How are you?

Chris Franklin: How are you?

Paul Zimbardo: I'm good. Thank you for taking the questions. The first was, and I apologize if I've missed it, did you quantify what the non-GAAP 2025 would be if you made those adjustments? I know you said favorable versus the guidance range, I apologize I missed that number.

Hi, good morning. How are you?

No we didn't, we didn't fit specifically, we just gave you kind of the non-recurring items there both sort of positive items and then we noted the um, the transaction costs as well. So if you, if you go to that exercise and you can find all those numbers in the cues and then in the 10K, that'll be released later today. You'll see that we still sit, uh, you know, favorable to our guidance range really as we've projected throughout the course of the year.

I'm good, I'm good. Thank you for taking the questions. The first was and I apologize. I missed it. Did you quantify what the

Okay.

[Company Representative] (Essential Utilities): No, we didn't say it specifically. We just gave you kind of the non-recurring items there, both sort of positive items, and then we noted the transaction costs as well. If you go through that exercise, you can find all those numbers in the Qs and then in the ten-K that'll be released later today, you'll see that we still sit, you know, favorable to our guidance range, really as we've projected throughout the course of the year.

Chris Franklin: No, we didn't say it specifically. We just gave you kind of the non-recurring items there, both sort of positive items, and then we noted the transaction costs as well. If you go through that exercise, you can find all those numbers in the Qs and then in the ten-K that'll be released later today, you'll see that we still sit, you know, favorable to our guidance range, really as we've projected throughout the course of the year.

The non-gaap 2025 would be if you made those adjustments, I know you said favorable versus the guidance range but I I apologize, I missed that number.

I understand that and uh broadly on the the regulatory strategy could you describe what What's the timing for the next round of Pennsylvania? Rate cases?

Yeah, so we I think about it, we've not we've not announced it officially but as, you know, both for PNG and Barack and Pennsylvania. So we've been on a 2-year, Cadence historically. So I I would use that same, uh, same Cadence. So that would, that would have us filing relatively quickly here.

No, we didn't. We didn't say it specifically. We just gave you kind of the non-recurring items there, both sort of positive items, and then we noticed the, um, the transaction costs as well. So if you go to that exercise, you can find all those numbers in the Qs, and then in the 10-K that'll be released later today. You'll see that we still sit, uh, you know, favorable to our guidance range, really as we've projected throughout the course of the year.

Paul Zimbardo: Okay. I understood on that. Broadly on the regulatory strategy, could you describe what's the timing for the next round of Pennsylvania rate cases?

Okay.

Okay. Okay, that's my thought. And then the, the last 1 I had was just, uh, I I noticed that the small tweak on the language on the. The credit metrics is just 12%, Plus versus the, the power range, any anything to read into or, uh, things they're trying to communicate from that.

I understood on that and uh, broadly on the the regulatory strategy could you describe? What What's the timing for the next round of Pennsylvania? Rate cases?

[Company Representative] (Essential Utilities): Yeah. The way I think about it, and we've not announced it officially, but as you know, both for PNG and RECO, Pennsylvania, we've been on a two-year cadence historically, so I would use that same cadence. That would have us filing relatively quickly here.

Chris Franklin: Yeah. The way I think about it, and we've not announced it officially, but as you know, both for PNG and RECO, Pennsylvania, we've been on a two-year cadence historically, so I would use that same cadence. That would have us filing relatively quickly here.

Paul Zimbardo: Okay. Okay, that's what I thought. The last one I had was just, I noticed that the small tweak on the language on the credit metrics, just 12%+ versus the par range. Anything to read into or things that you're trying to communicate from that?

G and Barack of Pennsylvania. So we've been on a 2-year Cadence historically. So I I would use that same same Cadence. So so that would that would have a filing relatively quickly here.

Um, I guess uh we'd probably say is, you know, as as we've finished out the year and and concluded our our financial reports, you know, looks like we are in in a nice position there in terms of ffo to debt so um that's probably really what we were saying there is, you know, we should be above that. 12%, um, threshold for Moody's and for S&P. So we feel good about those credit metrics.

Okay.

Thank you very much team.

Yeah, thanks. Paul.

All right. Next question comes from Travis Miller. Good morning star. Please go ahead.

Okay. Okay, that's my thought. And then the, the last 1 I had was just, uh, I, I noticed that the small tweak on the language on the, the credit metrics is 12%, Plus versus the, the power range, any anything to read into, or, uh, things that you're trying to communicate from that.

[Company Representative] (Essential Utilities): I guess all we'd probably say is, you know, as we finished out the year and concluded our financial reports, you know, looks like we are in a nice position there in terms of FFO to debt. That's probably really what we were saying there is, you know, we should be above that 12% threshold for Moody's and for S&P. We feel good about those credit metrics.

Chris Franklin: I guess all we'd probably say is, you know, as we finished out the year and concluded our financial reports, you know, looks like we are in a nice position there in terms of FFO to debt. That's probably really what we were saying there is, you know, we should be above that 12% threshold for Moody's and for S&P. We feel good about those credit metrics.

Thank you. Hi everyone.

Hey, Travis.

I guess I'll we'd probably say is, you know, as as we finish out the year and

Included our, our financial.

you know, looks like we are in in a nice position there in terms of ffo is that so um,

Um, on the merger, is there any chance that you could combine some of your plans regulatory activity with?

Regulatory sign off for the merger or those would be 2 separate filings and in any of the states.

You're talking about rate cases.

That's probably really what we were saying there is, you know, we should be above that. 12%, um, threshold for Moody's and for S&P. So we feel good about those credit metrics.

Paul Zimbardo: Okay. Thank you very much, team.

[Company Representative] (Essential Utilities): Yeah, thanks, Paul.

Chris Franklin: Yeah, thanks, Paul.

Thank you very much team.

rate cases or search charges any kind of rate rate related

Yeah, thanks. Paul.

Operator: Our next question comes from Travis Miller with Morningstar. Please go ahead.

Type of regulatory activity. Is that something you could could combine?

Somehow either settlement or through the proceedings.

Our next question comes from Travis Miller. Good morning star. Please go ahead.

Travis Miller: Thank you. Hi, everyone.

Chris: Hey, Travis.

Chris Franklin: Hey, Travis.

Thank you. Hi everyone.

Travis Miller: On the merger, is there any chance that you could combine some of your plans, regulatory activity with regulatory sign-off for the merger, or those be two separate filings in any of the states?

Hey, Travis.

With pockets. Yeah. They're they're separate dockets and and and we'll be adjudicated separately in um, in each case. Yeah.

Yeah, I don't I don't think we don't see those being combined Travis.

Um, on the merger, is there any chance that you could combine some of your plans regulatory activity with?

Chris: You're talking about rate cases?

Chris Franklin: You're talking about rate cases?

Regulatory sign off for the merger or those be 2 separate filings in any of the states.

Okay. Okay, just thought I'd check there and then when you talk about the overall solution to the bankruptcy,

Travis Miller: Rate cases or surcharges, any kind of rate-related type of regulatory activity. Is that something you could combine somehow, either settlement or through the proceedings with merger approval?

You're talking about rate cases.

Rate cases or 'S' charges, any kind of rate—rate related.

Actually, for Chester take me through some of the options there. Like how do you think about what

Might develop or what you could.

Type of regulatory activity. Is that something you could could combine?

Participate in and along those lines.

Chris: They're all considered separate dockets. Yeah, they're separate dockets and will be adjudicated separately in each case. Yeah.

Chris Franklin: They're all considered separate dockets. Yeah, they're separate dockets and will be adjudicated separately in each case. Yeah.

Somehow, either through settlement or through the proceedings.

It's such a great question. So,

[Company Representative] (Essential Utilities): Yeah.

Chris Franklin: Yeah.

Travis Miller: Okay.

[Company Representative] (Essential Utilities): I don't think we don't see those being combined, Travis.

With pockets. Yeah. They're they're separate dockets and and we'll be adjudicated separately in um, in each case. Yeah.

Chris Franklin: I don't think we don't see those being combined, Travis.

Travis Miller: Okay. Okay. Just thought I'd check there. Then when you talk about the overall solution to the bankruptcy exit for Chester, take me through some of the options there. Like, how do you think about what might develop or what you could participate in and along those lines?

Yeah, I don't I don't think we don't see those being combined Travis.

Okay. Okay, just thought I'd check there and then when you talk about the overall solution to the bankruptcy,

Actually, for Chester take me through some of the options there. Like how how do you think about what?

Uh somebody has to figure out, obviously, the receiver in this case, along with the bankruptcy court judge.

Might develop or what you could.

Chris: It's such a great question. Now that the Supreme Court has ruled and said that Water Authority, the Chester Water Authority, is actually owned by itself, right? The city argued that it should be owned by the city, and in that case, the city could sell the asset and exit bankruptcy with the proceeds. Now that the city doesn't have an asset to sell, you know, somebody has to figure out, obviously, the receiver in this case, along with the bankruptcy court judge, that has to figure out, you know, how are you gonna exit bankruptcy or declare bankruptcy. I think that's what is happening in the background. Where I think it's important for us is for DELCORA.

Chris Franklin: It's such a great question. Now that the Supreme Court has ruled and said that Water Authority, the Chester Water Authority, is actually owned by itself, right? The city argued that it should be owned by the city, and in that case, the city could sell the asset and exit bankruptcy with the proceeds. Now that the city doesn't have an asset to sell, you know, somebody has to figure out, obviously, the receiver in this case, along with the bankruptcy court judge, that has to figure out, you know, how are you gonna exit bankruptcy or declare bankruptcy. I think that's what is happening in the background. Where I think it's important for us is for DELCORA.

Participate in and along those lines. It's such a great question. So,

has to figure out, you know, how are you going to exit bankruptcy or or or declare bankruptcy and, and I think that's what is happening in the background

Where I think it's important for us is for adult Kora. You'll remember that there is a small reversionary um portion of the contract that says if they'll core a sold in this case to us

Now, the the, the the, um, Supreme Court has ruled and said that uh, Water Authority, the Chester Water Authority is actually owned by itself, right? The, the city argued that it should be owned by the city. And in that case, the city could sell the asset and exit bankruptcy with the proceeds. Now that the city doesn't have an asset to sell,

That the city assets, the Chester City assets um uh that were subjected and in place in 1972. When the contract was when this uh addendum was was put together, it would revert to the city.

uh, you know, somebody has to figure out obviously the receiver in this case, along with the bankruptcy court judge,

I think there's an opportunity here for us to pay something for those assets.

Um, may may be a little bit above our, our current purchase price, which was at rate base.

has to figure out, you know, how are you going to exit bankruptcy or or or declare bankruptcy and, and I think that's what is happening in the background

Chris: You'll remember that there is a small reversionary portion of the contract that says, if DELCORA sold, in this case, to us, that the City of Chester assets that were subject and in place in 1972, when this addendum was put together, would revert to the city. I think there's an opportunity here for us to pay something for those assets, maybe a little bit above our current purchase price, which was at rate base, and help the city exit. Well, it's not gonna nearly cover bankruptcy. This is, we're talking, you know, a minor amount in comparison to the almost $350 million they owe. It could be a, you know, help in some way.

Chris Franklin: You'll remember that there is a small reversionary portion of the contract that says, if DELCORA sold, in this case, to us, that the City of Chester assets that were subject and in place in 1972, when this addendum was put together, would revert to the city. I think there's an opportunity here for us to pay something for those assets, maybe a little bit above our current purchase price, which was at rate base, and help the city exit. Well, it's not gonna nearly cover bankruptcy. This is, we're talking, you know, a minor amount in comparison to the almost $350 million they owe. It could be a, you know, help in some way.

Where I think it's important for us is for adult Kora. You'll remember that there is a small reversionary um portion of the contract that says if they'll Core US sold in this case to us

That the city assets, the Chester City assets um, uh, that were subjected and in place in 1972 with a contract was when this uh, addendum was was put together would revert to the city. I think there's an opportunity here for us to pay something for those assets.

And um, and helped the city exit. Well, it's not going to nearly cover bankruptcy. This is what we're talking, you know, a minor amount in comparison to the almost 350 million. They owe. But it could, it could be a, you know, help in in some way. And um, so I I think, at this point, what we would like to see, we would like to see the bankruptcy for judge. Allow the puc proceeding to take place on dellora and then we can begin this negotiation on this stub piece, if you will uh, the reversionary portion of the contract

Is that clear?

Chris: I think at this point, what we would like to see, we would like to see the bankruptcy court judge allow the PUC proceeding to take place on DELCORA, and then we can begin this negotiation on this stub piece, if you will, the reversionary portion of the contract. Is that clear?

As clear as I suppose. It could be. Yeah I I appreciate it. So it sounds like a fun for all of us type of option but uh yeah no that's uh that's all I wanted. Not all I had

Chris Franklin: I think at this point, what we would like to see, we would like to see the bankruptcy court judge allow the PUC proceeding to take place on DELCORA, and then we can begin this negotiation on this stub piece, if you will, the reversionary portion of the contract. Is that clear?

Thanks so much. Thanks guys. You bet take care. Travis.

This concludes the question and answer session, I would now like to turn the call back over to Chris.

On remarks. Thank you.

Um, May maybe a little bit above our, our current purchase price, which was at rate base and, um, and help the city exit. Well, it's not going to nearly cover bankruptcy. This is what we're talking, you know, a minor amount in comparison to the almost 350 million. They owe. But it could, it could be a, you know, help in in some way. And um, so I I think, at this point, what we would like to see, we would like to see the bankruptcy or judge allow the puc proceeding to take place on Delta and then we can begin this negotiation on this stub piece, if you will uh, the reversionary portion of the contract

is that clear?

[Analyst]: As clear as I suppose it could be.

Travis Miller: As clear as I suppose it could be.

Thanks for joining as always. Uh, we're available for follow-up questions, that you might have have a great day, thanks for being with us.

Chris: Yeah. As clear as mud, right?

Chris Franklin: Yeah. As clear as mud, right?

[Analyst]: No, I appreciate it. It sounds like a fun, for all of us, type of option.

Travis Miller: No, I appreciate it. It sounds like a fun, for all of us, type of option.

This includes the call, thank you for joining. You may now disconnect

Chris: Yeah.

Chris Franklin: Yeah.

[Analyst]: But, uh-

Travis Miller: But, uh-

Chris: Yeah.

Chris Franklin: Yeah.

[Analyst]: Yeah, no, that's all I wanted, all I had. Thanks so much.

Travis Miller: Yeah, no, that's all I wanted, all I had. Thanks so much.

As clear as I suppose. It could be yeah. Clear as mud right? No I I appreciate it. So it sounds like a a fun for all of us type of option. But uh, yeah no that's uh, that's all I wanted and that's all I had.

Chris: Thanks, Travis. You bet.

Chris Franklin: Thanks, Travis. You bet.

[Company Representative] (Essential Utilities): Take care, Travis.

Dan Schuller: Take care, Travis.

Thanks so much. Thanks guys. You bet take care. Travis.

Operator: This concludes the question and answer session. I would now like to turn the call back over to Chris for closing remarks. Thank you.

This concludes the question and answer session. I would now like to turn the call back over to Chris.

Chris: Thanks for joining. As always, we're available for follow-up questions that you might have. Have a great day. Thanks for being with us.

Chris Franklin: Thanks for joining. As always, we're available for follow-up questions that you might have. Have a great day. Thanks for being with us.

Thank you.

Joining. As always, uh, we're available for follow-up questions that you might have. Uh, have a great day. Thanks for being with us.

Operator: This concludes the call. Thank you for joining. You may now disconnect.

This concludes the call, thank you for joining you may now. Disconnect

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