wtrg-20200630x10q
false--12-31Q20000078128YesYes0000078128srt:MinimumMemberwtrg:PerformanceShareUnitsMember2020-01-012020-06-300000078128srt:MaximumMemberwtrg:PerformanceShareUnitsMember2020-01-012020-06-300000078128us-gaap:DisposalGroupNotDiscontinuedOperationsMember2018-10-012018-12-310000078128us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2017-01-012017-03-3100000781282019-04-240000078128wtrg:FirstMortgageBondsDMemberwtrg:AquaPennsylvaniaIncMember2020-05-012020-05-010000078128wtrg:FirstMortgageBondsCMemberwtrg:AquaPennsylvaniaIncMember2020-05-012020-05-010000078128wtrg:FirstMortgageBondsBMemberwtrg:AquaPennsylvaniaIncMember2020-05-012020-05-010000078128srt:MinimumMemberwtrg:PeoplesGasAcquisitionMemberus-gaap:SeniorNotesMember2020-03-132020-03-130000078128srt:MaximumMemberwtrg:PeoplesGasAcquisitionMemberus-gaap:SeniorNotesMember2020-03-132020-03-130000078128wtrg:PeoplesGasAcquisitionMemberwtrg:LongTermEMember2020-03-132020-03-130000078128wtrg:PeoplesGasAcquisitionMemberwtrg:LongTermDMember2020-03-132020-03-130000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2020-01-012020-06-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2020-01-012020-06-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2020-01-012020-06-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2020-01-012020-06-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2020-01-012020-06-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2020-01-012020-06-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2020-01-012020-06-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2020-01-012020-06-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2020-01-012020-06-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2020-01-012020-06-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2020-01-012020-06-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2020-01-012020-06-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2020-01-012020-06-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2020-01-012020-06-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2020-01-012020-06-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2020-01-012020-06-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2020-01-012020-06-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2020-01-012020-06-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2020-01-012020-06-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2020-01-012020-06-300000078128wtrg:RevolvingCreditAgreementDueBMember2020-01-012020-06-300000078128wtrg:NotesZMember2020-01-012020-06-300000078128wtrg:NotesGMember2020-01-012020-06-300000078128wtrg:NotesFMember2020-01-012020-06-300000078128wtrg:NotesCMember2020-01-012020-06-300000078128wtrg:NotesBMember2020-01-012020-06-300000078128wtrg:NotesAaMember2020-01-012020-06-300000078128wtrg:BankNoteCMember2020-01-012020-06-300000078128wtrg:AmortizingNotesMember2020-01-012020-06-300000078128wtrg:LdcFundingLlcMemberwtrg:FirstMortgageBondsFMember2019-04-262019-04-260000078128wtrg:LdcFundingLlcMemberwtrg:FirstMortgageBondsEMember2019-04-262019-04-260000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2019-01-012019-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2019-01-012019-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2019-01-012019-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2019-01-012019-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2019-01-012019-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2019-01-012019-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2019-01-012019-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2019-01-012019-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2019-01-012019-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2019-01-012019-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2019-01-012019-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2019-01-012019-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2019-01-012019-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2019-01-012019-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2019-01-012019-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2019-01-012019-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2019-01-012019-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2019-01-012019-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2019-01-012019-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2019-01-012019-12-310000078128wtrg:RevolvingCreditAgreementDueBMember2019-01-012019-12-310000078128wtrg:NotesZMember2019-01-012019-12-310000078128wtrg:NotesGMember2019-01-012019-12-310000078128wtrg:NotesFMember2019-01-012019-12-310000078128wtrg:NotesCMember2019-01-012019-12-310000078128wtrg:NotesBMember2019-01-012019-12-310000078128wtrg:NotesAaMember2019-01-012019-12-310000078128wtrg:BankNoteCMember2019-01-012019-12-310000078128wtrg:AmortizingNotesMember2019-01-012019-12-310000078128srt:MinimumMemberwtrg:LdcFundingLlcMember2019-04-232019-04-230000078128srt:MaximumMemberwtrg:LdcFundingLlcMember2019-04-232019-04-230000078128wtrg:LdcFundingLlcMember2019-03-290000078128wtrg:DateMemberwtrg:LdcFundingLlcMember2019-04-230000078128wtrg:RegulatoryAssessmentsMember2020-04-012020-06-300000078128wtrg:PumpingFeesMember2020-04-012020-06-300000078128wtrg:PropertyMember2020-04-012020-06-300000078128wtrg:PayrollMember2020-04-012020-06-300000078128wtrg:OtherTaxesMember2020-04-012020-06-300000078128wtrg:GrossReceiptsExciseAndFranchiseMember2020-04-012020-06-300000078128wtrg:RegulatoryAssessmentsMember2020-01-012020-06-300000078128wtrg:PumpingFeesMember2020-01-012020-06-300000078128wtrg:PropertyMember2020-01-012020-06-300000078128wtrg:PayrollMember2020-01-012020-06-300000078128wtrg:OtherTaxesMember2020-01-012020-06-300000078128wtrg:GrossReceiptsExciseAndFranchiseMember2020-01-012020-06-300000078128wtrg:RegulatoryAssessmentsMember2019-04-012019-06-300000078128wtrg:PumpingFeesMember2019-04-012019-06-300000078128wtrg:PropertyMember2019-04-012019-06-300000078128wtrg:PayrollMember2019-04-012019-06-300000078128wtrg:OtherTaxesMember2019-04-012019-06-300000078128wtrg:GrossReceiptsExciseAndFranchiseMember2019-04-012019-06-300000078128wtrg:RegulatoryAssessmentsMember2019-01-012019-06-300000078128wtrg:PumpingFeesMember2019-01-012019-06-300000078128wtrg:PropertyMember2019-01-012019-06-300000078128wtrg:PayrollMember2019-01-012019-06-300000078128wtrg:OtherTaxesMember2019-01-012019-06-300000078128wtrg:GrossReceiptsExciseAndFranchiseMember2019-01-012019-06-300000078128wtrg:NotesRangesCMember2020-06-300000078128wtrg:NotesRangesBMember2020-06-300000078128wtrg:NotesRangesCMember2019-12-310000078128wtrg:NotesRangesBMember2019-12-310000078128wtrg:BankNoteMember2019-12-310000078128us-gaap:TreasuryStockMember2020-01-012020-03-310000078128us-gaap:TreasuryStockMember2019-04-012019-06-300000078128us-gaap:TreasuryStockMember2019-01-012019-03-310000078128us-gaap:TreasuryStockMember2020-06-300000078128us-gaap:RetainedEarningsMember2020-06-300000078128us-gaap:CommonStockMember2020-06-300000078128us-gaap:AdditionalPaidInCapitalMember2020-06-300000078128us-gaap:TreasuryStockMember2020-03-310000078128us-gaap:RetainedEarningsMember2020-03-310000078128us-gaap:CommonStockMember2020-03-310000078128us-gaap:AdditionalPaidInCapitalMember2020-03-3100000781282020-03-310000078128us-gaap:TreasuryStockMember2019-12-310000078128us-gaap:RetainedEarningsMember2019-12-310000078128us-gaap:CommonStockMember2019-12-310000078128us-gaap:AdditionalPaidInCapitalMember2019-12-310000078128us-gaap:TreasuryStockMember2019-06-300000078128us-gaap:RetainedEarningsMember2019-06-300000078128us-gaap:CommonStockMember2019-06-300000078128us-gaap:AdditionalPaidInCapitalMember2019-06-300000078128us-gaap:TreasuryStockMember2019-03-310000078128us-gaap:RetainedEarningsMember2019-03-310000078128us-gaap:CommonStockMember2019-03-310000078128us-gaap:AdditionalPaidInCapitalMember2019-03-3100000781282019-03-310000078128us-gaap:TreasuryStockMember2018-12-310000078128us-gaap:RetainedEarningsMember2018-12-310000078128us-gaap:CommonStockMember2018-12-310000078128us-gaap:AdditionalPaidInCapitalMember2018-12-310000078128us-gaap:CommonStockMember2020-04-012020-06-300000078128us-gaap:CommonStockMember2020-01-012020-03-310000078128us-gaap:CommonStockMember2019-04-012019-06-300000078128us-gaap:CommonStockMember2019-01-012019-03-310000078128us-gaap:EmployeeStockOptionMember2019-12-310000078128us-gaap:EmployeeStockOptionMember2020-06-300000078128wtrg:TwoThousandAndFourOmnibusEquityCompensationPlanMember2020-06-300000078128wtrg:TwoThousandNineOmnibusEquityCompensationPlanMember2020-06-300000078128wtrg:TwoThousandNineOmnibusEquityCompensationPlanMember2020-01-012020-06-300000078128wtrg:PerformanceShareUnitsMember2020-06-300000078128us-gaap:StockCompensationPlanMember2020-06-300000078128us-gaap:RestrictedStockUnitsRSUMember2020-06-300000078128us-gaap:RestrictedStockMember2020-06-300000078128wtrg:PerformanceShareUnitsMember2019-12-310000078128us-gaap:StockCompensationPlanMember2019-12-310000078128us-gaap:RestrictedStockUnitsRSUMember2019-12-310000078128us-gaap:RestrictedStockMember2019-12-310000078128us-gaap:RestrictedStockMember2019-01-012019-06-300000078128us-gaap:EmployeeStockOptionMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2020-01-012020-06-300000078128us-gaap:EmployeeStockOptionMemberus-gaap:ShareBasedCompensationAwardTrancheThreeMember2020-01-012020-06-300000078128us-gaap:EmployeeStockOptionMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2020-01-012020-06-300000078128wtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2020-06-300000078128wtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2020-06-300000078128wtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2020-06-300000078128wtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2020-06-300000078128wtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2020-06-300000078128wtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2020-06-300000078128wtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2020-06-300000078128wtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2020-06-300000078128wtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2020-06-300000078128wtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2020-06-300000078128wtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2019-12-310000078128wtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2019-12-310000078128wtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2019-12-310000078128wtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2019-12-310000078128wtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2019-12-310000078128wtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2019-12-310000078128wtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2019-12-310000078128wtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2019-12-310000078128wtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2019-12-310000078128wtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2019-12-310000078128wtrg:AlternativeRevenueProgramMemberwtrg:WaterMember2020-04-012020-06-300000078128wtrg:AlternativeRevenueProgramMemberwtrg:WastewaterMember2020-04-012020-06-300000078128wtrg:AlternativeRevenueProgramMemberwtrg:NaturalGasMember2020-04-012020-06-300000078128srt:ConsolidationEliminationsMemberwtrg:OtherMember2020-04-012020-06-300000078128srt:ConsolidationEliminationsMemberwtrg:NaturalGasMember2020-04-012020-06-300000078128wtrg:AlternativeRevenueProgramMemberwtrg:WaterMember2020-01-012020-06-300000078128wtrg:AlternativeRevenueProgramMemberwtrg:WastewaterMember2020-01-012020-06-300000078128wtrg:AlternativeRevenueProgramMemberwtrg:NaturalGasMember2020-01-012020-06-300000078128srt:ConsolidationEliminationsMemberwtrg:OtherMember2020-01-012020-06-300000078128srt:ConsolidationEliminationsMemberwtrg:NaturalGasMember2020-01-012020-06-300000078128wtrg:AlternativeRevenueProgramMemberwtrg:WaterMember2019-04-012019-06-300000078128wtrg:AlternativeRevenueProgramMemberwtrg:WastewaterMember2019-04-012019-06-300000078128srt:ConsolidationEliminationsMemberwtrg:OtherMember2019-04-012019-06-300000078128wtrg:AlternativeRevenueProgramMemberwtrg:WaterMember2019-01-012019-06-300000078128wtrg:AlternativeRevenueProgramMemberwtrg:WastewaterMember2019-01-012019-06-300000078128srt:ConsolidationEliminationsMemberwtrg:OtherMember2019-01-012019-06-300000078128wtrg:ResidentialMemberwtrg:WaterMember2020-04-012020-06-300000078128wtrg:ResidentialMemberwtrg:WastewaterMember2020-04-012020-06-300000078128wtrg:ResidentialMemberwtrg:NaturalGasMember2020-04-012020-06-300000078128wtrg:OtherWaterMemberwtrg:WaterMember2020-04-012020-06-300000078128wtrg:OtherWastewaterMemberwtrg:WastewaterMember2020-04-012020-06-300000078128wtrg:OtherUtilityMemberwtrg:OtherMember2020-04-012020-06-300000078128wtrg:OtherUtilityMemberwtrg:NaturalGasMember2020-04-012020-06-300000078128wtrg:IndustrialMemberwtrg:WaterMember2020-04-012020-06-300000078128wtrg:IndustrialMemberwtrg:WastewaterMember2020-04-012020-06-300000078128wtrg:IndustrialMemberwtrg:NaturalGasMember2020-04-012020-06-300000078128wtrg:GasTransportationMemberwtrg:NaturalGasMember2020-04-012020-06-300000078128wtrg:FireProtectionMemberwtrg:WaterMember2020-04-012020-06-300000078128wtrg:CommercialMemberwtrg:WaterMember2020-04-012020-06-300000078128wtrg:CommercialMemberwtrg:WastewaterMember2020-04-012020-06-300000078128wtrg:CommercialMemberwtrg:NaturalGasMember2020-04-012020-06-300000078128wtrg:WaterMember2020-04-012020-06-300000078128wtrg:WastewaterMember2020-04-012020-06-300000078128wtrg:OtherMember2020-04-012020-06-300000078128wtrg:NaturalGasMember2020-04-012020-06-300000078128wtrg:ResidentialMemberwtrg:WaterMember2020-01-012020-06-300000078128wtrg:ResidentialMemberwtrg:WastewaterMember2020-01-012020-06-300000078128wtrg:ResidentialMemberwtrg:NaturalGasMember2020-01-012020-06-300000078128wtrg:OtherWaterMemberwtrg:WaterMember2020-01-012020-06-300000078128wtrg:OtherWastewaterMemberwtrg:WastewaterMember2020-01-012020-06-300000078128wtrg:OtherUtilityMemberwtrg:OtherMember2020-01-012020-06-300000078128wtrg:OtherUtilityMemberwtrg:NaturalGasMember2020-01-012020-06-300000078128wtrg:IndustrialMemberwtrg:WaterMember2020-01-012020-06-300000078128wtrg:IndustrialMemberwtrg:WastewaterMember2020-01-012020-06-300000078128wtrg:IndustrialMemberwtrg:NaturalGasMember2020-01-012020-06-300000078128wtrg:GasTransportationMemberwtrg:NaturalGasMember2020-01-012020-06-300000078128wtrg:FireProtectionMemberwtrg:WaterMember2020-01-012020-06-300000078128wtrg:CommercialMemberwtrg:WaterMember2020-01-012020-06-300000078128wtrg:CommercialMemberwtrg:WastewaterMember2020-01-012020-06-300000078128wtrg:CommercialMemberwtrg:NaturalGasMember2020-01-012020-06-300000078128wtrg:WaterMember2020-01-012020-06-300000078128wtrg:WastewaterMember2020-01-012020-06-300000078128wtrg:OtherMember2020-01-012020-06-300000078128wtrg:NaturalGasMember2020-01-012020-06-300000078128wtrg:ResidentialMemberwtrg:WaterMember2019-04-012019-06-300000078128wtrg:ResidentialMemberwtrg:WastewaterMember2019-04-012019-06-300000078128wtrg:OtherWaterMemberwtrg:WaterMember2019-04-012019-06-300000078128wtrg:OtherWastewaterMemberwtrg:WastewaterMember2019-04-012019-06-300000078128wtrg:OtherUtilityMemberwtrg:OtherMember2019-04-012019-06-300000078128wtrg:IndustrialMemberwtrg:WaterMember2019-04-012019-06-300000078128wtrg:IndustrialMemberwtrg:WastewaterMember2019-04-012019-06-300000078128wtrg:FireProtectionMemberwtrg:WaterMember2019-04-012019-06-300000078128wtrg:CommercialMemberwtrg:WaterMember2019-04-012019-06-300000078128wtrg:CommercialMemberwtrg:WastewaterMember2019-04-012019-06-300000078128wtrg:WaterMember2019-04-012019-06-300000078128wtrg:WastewaterMember2019-04-012019-06-300000078128wtrg:OtherMember2019-04-012019-06-300000078128wtrg:ResidentialMemberwtrg:WaterMember2019-01-012019-06-300000078128wtrg:ResidentialMemberwtrg:WastewaterMember2019-01-012019-06-300000078128wtrg:OtherWaterMemberwtrg:WaterMember2019-01-012019-06-300000078128wtrg:OtherWastewaterMemberwtrg:WastewaterMember2019-01-012019-06-300000078128wtrg:OtherUtilityMemberwtrg:OtherMember2019-01-012019-06-300000078128wtrg:IndustrialMemberwtrg:WaterMember2019-01-012019-06-300000078128wtrg:IndustrialMemberwtrg:WastewaterMember2019-01-012019-06-300000078128wtrg:FireProtectionMemberwtrg:WaterMember2019-01-012019-06-300000078128wtrg:CommercialMemberwtrg:WaterMember2019-01-012019-06-300000078128wtrg:CommercialMemberwtrg:WastewaterMember2019-01-012019-06-300000078128wtrg:WaterMember2019-01-012019-06-300000078128wtrg:WastewaterMember2019-01-012019-06-300000078128wtrg:OtherMember2019-01-012019-06-300000078128wtrg:TermLoanMember2020-06-012020-06-300000078128wtrg:TermLoanMember2020-05-012020-05-310000078128wtrg:PeoplesGasAcquisitionMemberwtrg:UnsecuredCreditFacilityMember2020-04-132020-04-130000078128wtrg:CompanyDebtRefinancingMember2019-05-182019-05-180000078128wtrg:NotesMember2019-04-012019-06-300000078128wtrg:CompanyDebtRefinancingMember2019-04-012019-04-300000078128wtrg:IndianaAndOhioMember2020-01-012020-06-300000078128wtrg:IllinoisAndNorthCarolinaMember2020-01-012020-06-300000078128stpr:PA2019-05-242019-05-2400000781282019-04-242019-04-240000078128us-gaap:SubsequentEventMember2020-08-032020-08-0300000781282020-03-162020-03-160000078128wtrg:LdcFundingLlcMemberwtrg:LongTermMember2019-04-262019-04-260000078128wtrg:NotesMember2019-05-182019-05-180000078128us-gaap:ReportableSubsegmentsMember2020-01-012020-06-300000078128wtrg:RevolvingCreditAgreementDueBMember2020-06-300000078128us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-06-300000078128us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-06-300000078128us-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310000078128us-gaap:CarryingReportedAmountFairValueDisclosureMember2019-12-310000078128wtrg:NotesMember2020-06-300000078128wtrg:PeoplesGasAcquisitionMemberus-gaap:RevolvingCreditFacilityMember2020-03-160000078128wtrg:PeoplesGasAcquisitionMemberus-gaap:RevolvingCreditFacilityMember2020-03-130000078128wtrg:UnsecuredCreditFacilityMember2020-04-030000078128wtrg:PeoplesGasAcquisitionMemberwtrg:CreditAgreementMember2020-03-130000078128us-gaap:InterestRateSwapMember2019-04-242019-04-240000078128us-gaap:NoncompeteAgreementsMember2020-01-012020-06-300000078128us-gaap:CustomerRelationshipsMember2020-01-012020-06-300000078128wtrg:AquaInfrastructureMember2020-06-300000078128us-gaap:StateAndLocalJurisdictionMember2020-01-012020-06-300000078128us-gaap:StateAndLocalJurisdictionMember2019-01-012019-06-300000078128us-gaap:RetainedEarningsMember2020-04-012020-06-300000078128us-gaap:RetainedEarningsMember2020-01-012020-03-310000078128us-gaap:RetainedEarningsMember2019-04-012019-06-300000078128us-gaap:RetainedEarningsMember2019-01-012019-03-310000078128us-gaap:DisposalGroupNotDiscontinuedOperationsMember2019-04-012019-04-300000078128us-gaap:DisposalGroupNotDiscontinuedOperationsMember2019-04-300000078128us-gaap:InterestRateSwapMember2018-10-310000078128us-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMemberus-gaap:NondesignatedMemberus-gaap:OtherOperatingIncomeExpenseMember2019-04-012019-06-300000078128us-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMemberus-gaap:NondesignatedMemberus-gaap:OtherOperatingIncomeExpenseMember2019-01-012019-06-300000078128us-gaap:OperatingSegmentsMemberwtrg:WaterMember2020-04-012020-06-300000078128us-gaap:OperatingSegmentsMemberwtrg:NaturalGasMember2020-04-012020-06-300000078128us-gaap:CorporateAndOtherMember2020-04-012020-06-300000078128us-gaap:OperatingSegmentsMemberwtrg:WaterMember2020-01-012020-06-300000078128us-gaap:OperatingSegmentsMemberwtrg:NaturalGasMember2020-01-012020-06-300000078128us-gaap:OperatingSegmentsMemberwtrg:WaterMember2019-04-012019-06-300000078128us-gaap:OperatingSegmentsMemberwtrg:WaterMember2019-01-012019-06-300000078128wtrg:PeoplesGasAcquisitionMemberus-gaap:PensionPlansDefinedBenefitMember2020-04-012020-06-300000078128wtrg:PeoplesGasAcquisitionMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-04-012020-06-300000078128wtrg:PeoplesGasAcquisitionMemberus-gaap:PensionPlansDefinedBenefitMember2020-01-012020-06-300000078128wtrg:PeoplesGasAcquisitionMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2019-01-012019-06-300000078128us-gaap:PensionPlansDefinedBenefitMember2020-06-300000078128us-gaap:PensionPlansDefinedBenefitMember2020-04-012020-06-300000078128us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-04-012020-06-300000078128us-gaap:PensionPlansDefinedBenefitMember2020-01-012020-06-300000078128us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-01-012020-06-300000078128us-gaap:PensionPlansDefinedBenefitMember2019-04-012019-06-300000078128us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2019-04-012019-06-300000078128us-gaap:PensionPlansDefinedBenefitMember2019-01-012019-06-300000078128us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2019-01-012019-06-300000078128wtrg:PeoplesGasAcquisitionMemberwtrg:UnsecuredCreditFacilityMember2020-03-132020-03-130000078128wtrg:PeoplesGasAcquisitionMemberus-gaap:RevolvingCreditFacilityMember2020-03-132020-03-130000078128wtrg:LongTermCMember2019-05-182019-05-180000078128wtrg:LongTermBMember2019-05-182019-05-180000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2020-06-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2020-06-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2020-06-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2020-06-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2020-06-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2020-06-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2020-06-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2020-06-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2020-06-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2020-06-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2020-06-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2020-06-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2020-06-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2020-06-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2020-06-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2020-06-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2020-06-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2020-06-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2020-06-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2020-06-300000078128wtrg:NotesZMember2020-06-300000078128wtrg:NotesGMember2020-06-300000078128wtrg:NotesFMember2020-06-300000078128wtrg:NotesCMember2020-06-300000078128wtrg:NotesBMember2020-06-300000078128wtrg:NotesAaMember2020-06-300000078128wtrg:BankNoteCMember2020-06-300000078128wtrg:AmortizingNotesMember2020-06-300000078128srt:MinimumMemberwtrg:PeoplesGasAcquisitionMemberus-gaap:SeniorNotesMember2020-03-130000078128srt:MaximumMemberwtrg:PeoplesGasAcquisitionMemberus-gaap:SeniorNotesMember2020-03-130000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2019-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2019-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2019-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2019-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2019-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2019-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2019-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2019-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2019-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2019-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2019-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2019-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2019-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2019-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2019-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2019-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2019-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2019-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2019-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2019-12-310000078128wtrg:NotesZMember2019-12-310000078128wtrg:NotesGMember2019-12-310000078128wtrg:NotesFMember2019-12-310000078128wtrg:NotesCMember2019-12-310000078128wtrg:NotesBMember2019-12-310000078128wtrg:NotesAaMember2019-12-310000078128wtrg:BankNoteCMember2019-12-310000078128wtrg:AmortizingNotesMember2019-12-310000078128wtrg:FirstMortgageBondsMemberwtrg:AquaPennsylvaniaIncMember2020-05-010000078128wtrg:FirstMortgageBondsDMemberwtrg:AquaPennsylvaniaIncMember2020-05-010000078128wtrg:FirstMortgageBondsCMemberwtrg:AquaPennsylvaniaIncMember2020-05-010000078128wtrg:FirstMortgageBondsBMemberwtrg:AquaPennsylvaniaIncMember2020-05-010000078128wtrg:LongTermMember2020-04-130000078128wtrg:LongTermEMember2020-04-130000078128wtrg:LongTermDMember2020-04-130000078128wtrg:PeoplesGasAcquisitionMemberwtrg:UnsecuredCreditFacilityMember2020-03-130000078128wtrg:LdcFundingLlcMemberwtrg:LongTermMember2019-04-260000078128wtrg:LdcFundingLlcMemberwtrg:FirstMortgageBondsFMember2019-04-260000078128wtrg:LdcFundingLlcMemberwtrg:FirstMortgageBondsEMember2019-04-260000078128us-gaap:InterestRateSwapMember2019-04-240000078128wtrg:PeoplesGasAcquisitionMemberwtrg:BridgeCommitmentMember2018-10-2200000781282019-03-292019-03-290000078128wtrg:LdcFundingLlcMember2019-04-2300000781282020-05-3100000781282019-03-2900000781282019-06-3000000781282018-12-310000078128us-gaap:FairValueInputsLevel1Member2020-06-300000078128us-gaap:FairValueInputsLevel1Member2019-12-310000078128us-gaap:CorporateAndOtherMember2020-01-012020-06-300000078128us-gaap:CorporateAndOtherMember2019-04-012019-06-300000078128us-gaap:CorporateAndOtherMember2019-01-012019-06-300000078128wtrg:PeoplesGasAcquisitionMemberus-gaap:InterestRateSwapMember2019-01-012019-04-240000078128wtrg:PeoplesGasAcquisitionMember2020-06-300000078128wtrg:PeoplesGasAcquisitionMember2019-06-300000078128wtrg:PeoplesGasAcquisitionMember2020-01-012020-06-300000078128wtrg:CheltenhamTownshipMemberwtrg:WastewaterUtilitySystemMember2019-12-310000078128wtrg:PeoplesGasAcquisitionMember2020-03-130000078128wtrg:PeoplesGasAcquisitionMember2019-01-012019-06-300000078128wtrg:PeoplesGasAcquisitionMember2020-03-160000078128stpr:PAwtrg:WastewaterUtilitySystemMember2020-06-012020-06-300000078128wtrg:PeoplesGasAcquisitionMember2020-03-162020-03-160000078128stpr:OHwtrg:WastewaterUtilitySystemsInVariousStatesMember2020-01-012020-01-310000078128wtrg:CheltenhamTownshipMemberwtrg:WastewaterUtilitySystemMember2019-12-012019-12-310000078128stpr:PAwtrg:WastewaterUtilitySystemMember2019-11-012019-11-300000078128stpr:DEwtrg:WastewaterUtilitySystemMember2019-09-012019-09-300000078128wtrg:WastewaterUtilitySystemsInVariousStatesMember2019-01-012019-12-310000078128wtrg:PeoplesGasAcquisitionMember2020-04-012020-06-300000078128wtrg:PeoplesGasAcquisitionMember2019-04-012019-06-300000078128us-gaap:OperatingSegmentsMemberwtrg:WaterMember2020-06-300000078128us-gaap:OperatingSegmentsMemberwtrg:NaturalGasMember2020-06-300000078128us-gaap:CorporateAndOtherMember2020-06-300000078128us-gaap:OperatingSegmentsMemberwtrg:WaterMember2019-12-310000078128us-gaap:CorporateAndOtherMember2019-12-310000078128wtrg:PerformanceShareUnitsMember2020-04-012020-06-300000078128us-gaap:StockCompensationPlanMember2020-04-012020-06-300000078128us-gaap:RestrictedStockUnitsRSUMember2020-04-012020-06-300000078128us-gaap:RestrictedStockMember2020-04-012020-06-300000078128us-gaap:EmployeeStockOptionMember2020-04-012020-06-300000078128wtrg:PerformanceShareUnitsMember2020-01-012020-06-300000078128us-gaap:StockCompensationPlanMember2020-01-012020-06-300000078128us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-06-300000078128us-gaap:RestrictedStockMember2020-01-012020-06-300000078128us-gaap:EmployeeStockOptionMember2020-01-012020-06-300000078128wtrg:PerformanceShareUnitsMember2019-04-012019-06-300000078128us-gaap:StockCompensationPlanMember2019-04-012019-06-300000078128us-gaap:RestrictedStockUnitsRSUMember2019-04-012019-06-300000078128us-gaap:EmployeeStockOptionMember2019-04-012019-06-300000078128wtrg:PerformanceShareUnitsMember2019-01-012019-06-300000078128us-gaap:StockCompensationPlanMember2019-01-012019-06-300000078128us-gaap:RestrictedStockUnitsRSUMember2019-01-012019-06-300000078128us-gaap:EmployeeStockOptionMember2019-01-012019-06-300000078128us-gaap:TreasuryStockMember2020-04-012020-06-300000078128us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300000078128us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-3100000781282020-01-012020-03-310000078128us-gaap:AdditionalPaidInCapitalMember2019-04-012019-06-300000078128us-gaap:AdditionalPaidInCapitalMember2019-01-012019-03-3100000781282019-01-012019-03-310000078128wtrg:LdcFundingLlcMember2019-04-232019-04-2300000781282020-04-012020-06-3000000781282019-04-012019-06-3000000781282019-01-012019-06-3000000781282020-06-3000000781282019-12-310000078128wtrg:TangibleEquityUnitsMember2020-01-012020-06-300000078128us-gaap:CommonClassAMember2020-01-012020-06-3000000781282020-07-2700000781282020-01-012020-06-30wtrg:customerwtrg:segmentxbrli:purewtrg:itemiso4217:USDxbrli:sharesiso4217:USDxbrli:shares

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON DC 20549

FORM 10-Q

(Mark One) 

S QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934. 

For the quarterly period ended June 30, 2020 

£ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. 

For the transition period from_______________ to _______________

Commission File Number 1-6659 

ESSENTIAL UTILITIES, INC. 

(Exact name of registrant as specified in its charter) 

Pennsylvania

23-1702594

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

 

762 W. Lancaster Avenue, Bryn Mawr, Pennsylvania

19010 -3489

(Address of principal executive offices)

(Zip Code)

 

(610) 527-8000

(Registrant’s telephone number, including area code)

N/A

(Former Name, former address and former fiscal year, if changed since last report.)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes S  No £

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes S  No £

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12(b)-2 of the Exchange Act.:  

Large Accelerated Filer S

Accelerated Filer £

Non-Accelerated Filer £

Smaller Reporting Company £

Emerging Growth Company £

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. £

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes £  No S

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, $0.50 par value

WTRG

New York Stock Exchange

6.00% Tangible Equity Units

WTRU

New York Stock Exchange

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of July 27, 2020: 245,151,093


Table of Contents

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

Page

Part I – Financial Information

Item 1. Financial Statements:

Consolidated Balance Sheets (unaudited) – June 30, 2020 and December 31, 2019

2

Consolidated Statements of Operations and Comprehensive Income (unaudited) –
Three Months Ended June 30, 2020 and 2019

4

Consolidated Statements of Operations and Comprehensive Income (unaudited) –

Six Months Ended June 30, 2020 and 2019

5

Consolidated Statements of Capitalization (unaudited) –
June 30, 2020 and December 31, 2019

6

Consolidated Statements of Equity (unaudited) –
Six Months Ended June 30, 2020

7

Consolidated Statements of Equity (unaudited) –
Six Months Ended June 30, 2019

8

Consolidated Statements of Cash Flow (unaudited) –
Six Months Ended June 30, 2020 and 2019

9

Notes to Consolidated Financial Statements (unaudited)

10

Item 2. Management’s Discussion and Analysis of Financial
Condition and Results of Operations

39

Item 3. Quantitative and Qualitative Disclosures About Market Risk

52

Item 4. Controls and Procedures

52

 

Part II – Other Information

 

Item 1. Legal Proceedings

52

Item 1A. Risk Factors

53

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

55

Item 6. Exhibits

56

Signatures

57

1


Table of Contents

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

CONSOLIDATED BALANCE SHEETS 

(In thousands of dollars, except per share amounts) 

(UNAUDITED)

 

June 30,

December 31,

Assets

2020

2019

Property, plant and equipment, at cost

$

11,012,300 

$

8,201,936 

Less: accumulated depreciation

1,961,540 

1,856,146 

Net property, plant and equipment

9,050,760 

6,345,790 

Current assets:

Cash and cash equivalents

7,227 

1,868,922 

Accounts receivable, net

152,902 

67,137 

Unbilled revenues

60,835 

40,483 

Inventory - materials and supplies

22,660 

18,379 

Inventory - gas stored

27,424 

-

Prepayments and other current assets

34,194 

16,259 

Regulatory assets

5,654 

2,389 

Assets held for sale

1,558 

1,558 

Total current assets

312,454 

2,015,127 

Regulatory assets

1,198,340 

875,743 

Deferred charges and other assets, net

53,636 

42,652 

Investment in joint venture

5,943 

5,984 

Funds restricted for construction activity

1,223 

-

Goodwill

2,333,535 

63,822 

Operating lease right-of-use assets

63,697 

12,867 

Intangible assets

8,820 

-

Total assets

$

13,028,408 

$

9,361,985 

The accompanying notes are an integral part of these consolidated financial statements

2


Table of Contents

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

CONSOLIDATED BALANCE SHEETS (continued)

(In thousands of dollars, except per share amounts) 

(UNAUDITED)

 

June 30,

December 31,

Liabilities and Equity

2020

2019

Stockholders' equity:

Common stock at $0.50 par value, authorized 600,000,000 shares, issued 248,342,756 and 223,871,284 as of June 30, 2020 and December 31, 2019

$

124,171 

$

111,935 

Capital in excess of par value

3,366,695 

2,636,555 

Retained earnings

1,226,622 

1,210,072 

Treasury stock, at cost, 3,192,646 and 3,112,565 shares as of June 30, 2020 and December 31, 2019

(81,954)

(77,702)

Total stockholders' equity

4,635,534 

3,880,860 

Long-term debt, excluding current portion

5,213,370 

2,972,349 

Less: debt issuance costs

38,769 

29,022 

Long-term debt, excluding current portion, net of debt issuance costs

5,174,601 

2,943,327 

Commitments and contingencies (See Note 15)

 

 

Current liabilities:

Current portion of long-term debt

87,839 

105,051 

Loans payable

15,000 

25,724 

Accounts payable

124,117

74,919 

Book overdraft

19,534 

10,944 

Accrued interest

42,430 

29,818 

Accrued taxes

30,735 

22,775 

Regulatory liabilities

28,046 

4,612 

Other accrued liabilities

100,478 

49,618 

Total current liabilities

448,179

323,461 

Deferred credits and other liabilities:

Deferred income taxes and investment tax credits

1,215,898 

936,158 

Customers' advances for construction

100,584 

95,556 

Regulatory liabilities

622,567 

512,987 

Asset retirement obligations

50,125 

-

Operating lease liabilities

59,338 

11,645 

Pension and other postretirement benefit liabilities

107,899

69,406 

Other

50,405

33,059 

Total deferred credits and other liabilities

2,206,816 

1,658,811 

Contributions in aid of construction

563,278 

555,526 

Total liabilities and equity

$

13,028,408

$

9,361,985 

The accompanying notes are an integral part of these consolidated financial statements

3


Table of Contents

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(In thousands, except per share amounts)

(UNAUDITED)

 

Three Months Ended

June 30,

2020

2019

Operating revenues

$

384,468

$

218,892

Operating expenses:

Operations and maintenance

128,604

86,445

Purchased gas

43,420

-

Depreciation

67,925

39,550

Amortization

1,967

(2,920)

Taxes other than income taxes

19,433

14,868

Total operating expenses

261,349

137,943

Operating income

123,119

80,949

Other expense (income):

Interest expense

51,666

31,727

Interest income

(196)

(8,418)

Allowance for funds used during construction

(2,230)

(3,611)

Change in fair value of interest rate swap agreements

-

(11,040)

Loss on debt extinguishment

-

18,935

Gain on sale of other assets

(20)

(48)

Equity earnings in joint venture

(470)

(1,240)

Other

(722)

1,912

Income before income taxes

75,091

52,732

Provision for income taxes (benefit)

462

(2,171)

Net income

$

74,629

$

54,903

Comprehensive income

$

74,629

$

54,903

Net income per common share:

Basic

$

0.29

$

0.25

Diluted

$

0.29

$

0.25

Average common shares outstanding during the period:

Basic

254,167

219,055

Diluted

254,434

219,790

The accompanying notes are an integral part of these consolidated financial statements

 

4


Table of Contents

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(In thousands, except per share amounts)

(UNAUDITED)

 

Six Months Ended

June 30,

2020

2019

Operating revenues

$

640,053

$

420,024

Operating expenses:

Operations and maintenance

235,241

165,759

Purchased gas

56,190

-

Depreciation

113,491

78,624

Amortization

2,646

(2,584)

Taxes other than income taxes

35,869

29,837

Total operating expenses

443,437

271,636

Operating income

196,616

148,388

Other expense (income):

Interest expense

86,788

59,596

Interest income

(5,231)

(8,437)

Allowance for funds used during construction

(5,178)

(7,667)

Change in fair value of interest rate swap agreements

-

23,742

Loss on debt extinguishment

-

18,935

Gain on sale of other assets

(125)

(268)

Equity earnings in joint venture

(343)

(1,783)

Other

957

2,784

Income before income taxes

119,748

61,486

Provision for income taxes (benefit)

(6,662)

(10,341)

Net income

$

126,410

$

71,827

Comprehensive income

$

126,410

$

71,827