wtrg-20230930x10q
false--12-31Q30000078128YesYes0000078128wtrg:AtMarketSalesAgreementsMember2023-09-3000000781282022-04-012022-04-3000000781282022-05-0200000781282022-04-300000078128stpr:NC2023-02-280000078128wtrg:WaterMember2023-01-012023-09-300000078128srt:MinimumMemberwtrg:PerformanceShareUnitsMember2023-01-012023-09-300000078128srt:MaximumMemberwtrg:PerformanceShareUnitsMember2023-01-012023-09-3000000781282019-09-032019-09-030000078128stpr:WVwtrg:RegulatedNaturalGasUtilityAssetsMember2022-12-312022-12-310000078128wtrg:BeaverFallsPennsylvaniaMemberwtrg:WaterUtilitySystemMember2021-10-012021-10-3100000781282022-10-142022-10-140000078128stpr:TX2023-09-282023-09-280000078128srt:MinimumMemberus-gaap:StateAndLocalJurisdictionMember2023-01-012023-09-300000078128srt:MinimumMemberstpr:PA2023-01-012023-09-300000078128srt:MaximumMemberus-gaap:StateAndLocalJurisdictionMember2023-01-012023-09-300000078128srt:MaximumMemberstpr:PA2023-01-012023-09-300000078128srt:MinimumMember2023-01-012023-03-310000078128srt:MaximumMember2023-01-012023-03-310000078128srt:MinimumMemberus-gaap:StateAndLocalJurisdictionMember2022-01-012022-09-300000078128srt:MaximumMemberus-gaap:StateAndLocalJurisdictionMember2022-01-012022-09-300000078128srt:MaximumMemberstpr:PA2022-01-012022-09-300000078128wtrg:AquaPennsylvaniaIncMember2023-01-012023-01-310000078128wtrg:AquaPennsylvaniaIncMember2022-10-012022-10-310000078128srt:MinimumMemberwtrg:UnsecuredNotesBMember2023-01-012023-09-300000078128srt:MinimumMemberwtrg:NotesGMember2023-01-012023-09-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2023-01-012023-09-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2023-01-012023-09-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2023-01-012023-09-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2023-01-012023-09-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2023-01-012023-09-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2023-01-012023-09-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2023-01-012023-09-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2023-01-012023-09-300000078128srt:MaximumMemberwtrg:UnsecuredNotesBMember2023-01-012023-09-300000078128srt:MaximumMemberwtrg:NotesGMember2023-01-012023-09-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2023-01-012023-09-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2023-01-012023-09-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2023-01-012023-09-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2023-01-012023-09-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2023-01-012023-09-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2023-01-012023-09-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2023-01-012023-09-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2023-01-012023-09-300000078128wtrg:RevolvingCreditAgreementDueBMember2023-01-012023-09-300000078128wtrg:NotesZMember2023-01-012023-09-300000078128wtrg:NotesBbMember2023-01-012023-09-300000078128wtrg:NotesAtFivePointThirtyPercentDueTwoThousandFiftyTwoMember2023-01-012023-09-300000078128wtrg:NotesAaMember2023-01-012023-09-300000078128wtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2023-01-012023-09-300000078128wtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2023-01-012023-09-300000078128srt:MinimumMemberwtrg:UnsecuredNotesBMember2022-01-012022-12-310000078128srt:MinimumMemberwtrg:NotesGMember2022-01-012022-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2022-01-012022-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2022-01-012022-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2022-01-012022-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2022-01-012022-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2022-01-012022-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2022-01-012022-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2022-01-012022-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2022-01-012022-12-310000078128srt:MaximumMemberwtrg:UnsecuredNotesBMember2022-01-012022-12-310000078128srt:MaximumMemberwtrg:NotesGMember2022-01-012022-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2022-01-012022-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2022-01-012022-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2022-01-012022-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2022-01-012022-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2022-01-012022-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2022-01-012022-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2022-01-012022-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2022-01-012022-12-310000078128wtrg:RevolvingCreditAgreementDueBMember2022-01-012022-12-310000078128wtrg:NotesZMember2022-01-012022-12-310000078128wtrg:NotesBbMember2022-01-012022-12-310000078128wtrg:NotesAtFivePointThirtyPercentDueTwoThousandFiftyTwoMember2022-01-012022-12-310000078128wtrg:NotesAaMember2022-01-012022-12-310000078128wtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2022-01-012022-12-310000078128wtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2022-01-012022-12-310000078128wtrg:DateMemberwtrg:LdcFundingLlcMember2019-04-230000078128stpr:DEwtrg:WaterUtilitySystemMember2019-09-012019-09-300000078128stpr:PA2023-01-012023-09-300000078128stpr:PA2022-05-160000078128wtrg:RegulatoryAssessmentsMember2023-07-012023-09-300000078128wtrg:PumpingFeesMember2023-07-012023-09-300000078128wtrg:PropertyMember2023-07-012023-09-300000078128wtrg:PayrollMember2023-07-012023-09-300000078128wtrg:OtherTaxesMember2023-07-012023-09-300000078128wtrg:GrossReceiptsExciseAndFranchiseMember2023-07-012023-09-300000078128wtrg:RegulatoryAssessmentsMember2023-01-012023-09-300000078128wtrg:PumpingFeesMember2023-01-012023-09-300000078128wtrg:PropertyMember2023-01-012023-09-300000078128wtrg:PayrollMember2023-01-012023-09-300000078128wtrg:OtherTaxesMember2023-01-012023-09-300000078128wtrg:GrossReceiptsExciseAndFranchiseMember2023-01-012023-09-300000078128wtrg:RegulatoryAssessmentsMember2022-07-012022-09-300000078128wtrg:PumpingFeesMember2022-07-012022-09-300000078128wtrg:PropertyMember2022-07-012022-09-300000078128wtrg:PayrollMember2022-07-012022-09-300000078128wtrg:OtherTaxesMember2022-07-012022-09-300000078128wtrg:GrossReceiptsExciseAndFranchiseMember2022-07-012022-09-300000078128wtrg:RegulatoryAssessmentsMember2022-01-012022-09-300000078128wtrg:PumpingFeesMember2022-01-012022-09-300000078128wtrg:PropertyMember2022-01-012022-09-300000078128wtrg:PayrollMember2022-01-012022-09-300000078128wtrg:OtherTaxesMember2022-01-012022-09-300000078128wtrg:GrossReceiptsExciseAndFranchiseMember2022-01-012022-09-300000078128wtrg:UnsecuredNotesBMember2023-09-300000078128wtrg:NotesRangesCMember2023-09-300000078128wtrg:UnsecuredNotesBMember2022-12-310000078128wtrg:NotesRangesCMember2022-12-310000078128us-gaap:CommonStockMember2023-07-012023-09-3000000781282022-05-022022-05-020000078128wtrg:AtMarketSalesAgreementsMember2023-07-012023-09-300000078128wtrg:AtMarketSalesAgreementsMember2023-01-012023-09-300000078128wtrg:AtMarketSalesAgreementsMember2022-10-012022-12-310000078128us-gaap:TreasuryStockCommonMember2023-09-300000078128us-gaap:RetainedEarningsMember2023-09-300000078128us-gaap:CommonStockMember2023-09-300000078128us-gaap:AdditionalPaidInCapitalMember2023-09-300000078128us-gaap:TreasuryStockCommonMember2023-06-300000078128us-gaap:RetainedEarningsMember2023-06-300000078128us-gaap:CommonStockMember2023-06-300000078128us-gaap:AdditionalPaidInCapitalMember2023-06-3000000781282023-06-300000078128us-gaap:TreasuryStockCommonMember2023-03-310000078128us-gaap:RetainedEarningsMember2023-03-310000078128us-gaap:CommonStockMember2023-03-310000078128us-gaap:AdditionalPaidInCapitalMember2023-03-3100000781282023-03-310000078128us-gaap:TreasuryStockCommonMember2022-12-310000078128us-gaap:RetainedEarningsMember2022-12-310000078128us-gaap:CommonStockMember2022-12-310000078128us-gaap:AdditionalPaidInCapitalMember2022-12-310000078128us-gaap:TreasuryStockCommonMember2022-09-300000078128us-gaap:RetainedEarningsMember2022-09-300000078128us-gaap:CommonStockMember2022-09-300000078128us-gaap:AdditionalPaidInCapitalMember2022-09-300000078128us-gaap:TreasuryStockCommonMember2022-06-300000078128us-gaap:RetainedEarningsMember2022-06-300000078128us-gaap:CommonStockMember2022-06-300000078128us-gaap:AdditionalPaidInCapitalMember2022-06-3000000781282022-06-300000078128us-gaap:TreasuryStockCommonMember2022-03-310000078128us-gaap:RetainedEarningsMember2022-03-310000078128us-gaap:CommonStockMember2022-03-310000078128us-gaap:AdditionalPaidInCapitalMember2022-03-3100000781282022-03-310000078128us-gaap:TreasuryStockCommonMember2021-12-310000078128us-gaap:RetainedEarningsMember2021-12-310000078128us-gaap:CommonStockMember2021-12-310000078128us-gaap:AdditionalPaidInCapitalMember2021-12-310000078128us-gaap:CommonStockMember2023-04-012023-06-300000078128us-gaap:CommonStockMember2023-01-012023-03-310000078128us-gaap:CommonStockMember2022-07-012022-09-300000078128us-gaap:CommonStockMember2022-04-012022-06-300000078128us-gaap:CommonStockMember2022-01-012022-03-310000078128us-gaap:EmployeeStockOptionMember2022-12-310000078128us-gaap:StockCompensationPlanMember2023-07-012023-09-300000078128us-gaap:EmployeeStockOptionMember2023-09-300000078128wtrg:TwoThousandAndFourOmnibusEquityCompensationPlanMember2023-09-300000078128wtrg:AmendedAndRestatedEquityCompensationPlanMember2023-09-300000078128wtrg:AmendedAndRestatedEquityCompensationPlanMember2023-01-012023-09-300000078128wtrg:PerformanceShareUnitsMember2023-09-300000078128us-gaap:StockCompensationPlanMember2023-09-300000078128us-gaap:RestrictedStockUnitsRSUMember2023-09-300000078128us-gaap:RestrictedStockMember2023-09-300000078128wtrg:PerformanceShareUnitsMember2022-12-310000078128us-gaap:StockCompensationPlanMember2022-12-310000078128us-gaap:RestrictedStockUnitsRSUMember2022-12-310000078128us-gaap:RestrictedStockMember2022-12-310000078128us-gaap:EmployeeStockOptionMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2023-01-012023-09-300000078128us-gaap:EmployeeStockOptionMemberus-gaap:ShareBasedCompensationAwardTrancheThreeMember2023-01-012023-09-300000078128us-gaap:EmployeeStockOptionMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2023-01-012023-09-300000078128wtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2023-09-300000078128wtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2023-09-300000078128wtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2023-09-300000078128wtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2023-09-300000078128wtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2023-09-300000078128wtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2023-09-300000078128wtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2023-09-300000078128wtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2023-09-300000078128wtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2023-09-300000078128wtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2023-09-300000078128wtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2022-12-310000078128wtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2022-12-310000078128wtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2022-12-310000078128wtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2022-12-310000078128wtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2022-12-310000078128wtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2022-12-310000078128wtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2022-12-310000078128wtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2022-12-310000078128wtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2022-12-310000078128wtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2022-12-310000078128wtrg:AlternativeRevenueProgramMemberwtrg:WaterMember2023-07-012023-09-300000078128wtrg:AlternativeRevenueProgramMemberwtrg:WastewaterMember2023-07-012023-09-300000078128srt:ConsolidationEliminationsMemberwtrg:OtherMember2023-07-012023-09-300000078128wtrg:AlternativeRevenueProgramMemberwtrg:WaterMember2023-01-012023-09-300000078128wtrg:AlternativeRevenueProgramMemberwtrg:WastewaterMember2023-01-012023-09-300000078128wtrg:AlternativeRevenueProgramMemberwtrg:NaturalGasMember2023-01-012023-09-300000078128srt:ConsolidationEliminationsMemberwtrg:OtherMember2023-01-012023-09-300000078128wtrg:AlternativeRevenueProgramMemberwtrg:WaterMember2022-07-012022-09-300000078128wtrg:AlternativeRevenueProgramMemberwtrg:WastewaterMember2022-07-012022-09-300000078128srt:ConsolidationEliminationsMemberwtrg:WaterMember2022-07-012022-09-300000078128srt:ConsolidationEliminationsMemberwtrg:OtherMember2022-07-012022-09-300000078128wtrg:AlternativeRevenueProgramMemberwtrg:WaterMember2022-01-012022-09-300000078128wtrg:AlternativeRevenueProgramMemberwtrg:WastewaterMember2022-01-012022-09-300000078128srt:ConsolidationEliminationsMemberwtrg:OtherMember2022-01-012022-09-300000078128wtrg:ResidentialMemberwtrg:WaterMember2023-07-012023-09-300000078128wtrg:ResidentialMemberwtrg:WastewaterMember2023-07-012023-09-300000078128wtrg:ResidentialMemberwtrg:NaturalGasMember2023-07-012023-09-300000078128wtrg:OtherWaterMemberwtrg:WaterMember2023-07-012023-09-300000078128wtrg:OtherWastewaterMemberwtrg:WastewaterMember2023-07-012023-09-300000078128wtrg:OtherUtilityMemberwtrg:OtherMember2023-07-012023-09-300000078128wtrg:OtherUtilityMemberwtrg:NaturalGasMember2023-07-012023-09-300000078128wtrg:IndustrialMemberwtrg:WaterMember2023-07-012023-09-300000078128wtrg:IndustrialMemberwtrg:WastewaterMember2023-07-012023-09-300000078128wtrg:IndustrialMemberwtrg:NaturalGasMember2023-07-012023-09-300000078128wtrg:GasTransportationMemberwtrg:NaturalGasMember2023-07-012023-09-300000078128wtrg:FireProtectionMemberwtrg:WaterMember2023-07-012023-09-300000078128wtrg:CommercialMemberwtrg:WaterMember2023-07-012023-09-300000078128wtrg:CommercialMemberwtrg:WastewaterMember2023-07-012023-09-300000078128wtrg:CommercialMemberwtrg:NaturalGasMember2023-07-012023-09-300000078128wtrg:WaterMember2023-07-012023-09-300000078128wtrg:WastewaterMember2023-07-012023-09-300000078128wtrg:OtherMember2023-07-012023-09-300000078128wtrg:NaturalGasMember2023-07-012023-09-300000078128wtrg:ResidentialMemberwtrg:WaterMember2023-01-012023-09-300000078128wtrg:ResidentialMemberwtrg:WastewaterMember2023-01-012023-09-300000078128wtrg:ResidentialMemberwtrg:NaturalGasMember2023-01-012023-09-300000078128wtrg:OtherWaterMemberwtrg:WaterMember2023-01-012023-09-300000078128wtrg:OtherWastewaterMemberwtrg:WastewaterMember2023-01-012023-09-300000078128wtrg:OtherUtilityMemberwtrg:OtherMember2023-01-012023-09-300000078128wtrg:OtherUtilityMemberwtrg:NaturalGasMember2023-01-012023-09-300000078128wtrg:IndustrialMemberwtrg:WaterMember2023-01-012023-09-300000078128wtrg:IndustrialMemberwtrg:WastewaterMember2023-01-012023-09-300000078128wtrg:IndustrialMemberwtrg:NaturalGasMember2023-01-012023-09-300000078128wtrg:GasTransportationMemberwtrg:NaturalGasMember2023-01-012023-09-300000078128wtrg:FireProtectionMemberwtrg:WaterMember2023-01-012023-09-300000078128wtrg:CommercialMemberwtrg:WaterMember2023-01-012023-09-300000078128wtrg:CommercialMemberwtrg:WastewaterMember2023-01-012023-09-300000078128wtrg:CommercialMemberwtrg:NaturalGasMember2023-01-012023-09-300000078128wtrg:WaterMember2023-01-012023-09-300000078128wtrg:WastewaterMember2023-01-012023-09-300000078128wtrg:OtherMember2023-01-012023-09-300000078128wtrg:NaturalGasMember2023-01-012023-09-300000078128wtrg:ResidentialMemberwtrg:WaterMember2022-07-012022-09-300000078128wtrg:ResidentialMemberwtrg:WastewaterMember2022-07-012022-09-300000078128wtrg:ResidentialMemberwtrg:NaturalGasMember2022-07-012022-09-300000078128wtrg:OtherWaterMemberwtrg:WaterMember2022-07-012022-09-300000078128wtrg:OtherWastewaterMemberwtrg:WastewaterMember2022-07-012022-09-300000078128wtrg:OtherUtilityMemberwtrg:OtherMember2022-07-012022-09-300000078128wtrg:OtherUtilityMemberwtrg:NaturalGasMember2022-07-012022-09-300000078128wtrg:IndustrialMemberwtrg:WaterMember2022-07-012022-09-300000078128wtrg:IndustrialMemberwtrg:WastewaterMember2022-07-012022-09-300000078128wtrg:IndustrialMemberwtrg:NaturalGasMember2022-07-012022-09-300000078128wtrg:GasTransportationMemberwtrg:NaturalGasMember2022-07-012022-09-300000078128wtrg:FireProtectionMemberwtrg:WaterMember2022-07-012022-09-300000078128wtrg:CommercialMemberwtrg:WaterMember2022-07-012022-09-300000078128wtrg:CommercialMemberwtrg:WastewaterMember2022-07-012022-09-300000078128wtrg:CommercialMemberwtrg:NaturalGasMember2022-07-012022-09-300000078128wtrg:WaterMember2022-07-012022-09-300000078128wtrg:WastewaterMember2022-07-012022-09-300000078128wtrg:OtherMember2022-07-012022-09-300000078128wtrg:NaturalGasMember2022-07-012022-09-300000078128wtrg:ResidentialMemberwtrg:WaterMember2022-01-012022-09-300000078128wtrg:ResidentialMemberwtrg:WastewaterMember2022-01-012022-09-300000078128wtrg:ResidentialMemberwtrg:NaturalGasMember2022-01-012022-09-300000078128wtrg:OtherWaterMemberwtrg:WaterMember2022-01-012022-09-300000078128wtrg:OtherWastewaterMemberwtrg:WastewaterMember2022-01-012022-09-300000078128wtrg:OtherUtilityMemberwtrg:OtherMember2022-01-012022-09-300000078128wtrg:OtherUtilityMemberwtrg:NaturalGasMember2022-01-012022-09-300000078128wtrg:IndustrialMemberwtrg:WaterMember2022-01-012022-09-300000078128wtrg:IndustrialMemberwtrg:WastewaterMember2022-01-012022-09-300000078128wtrg:IndustrialMemberwtrg:NaturalGasMember2022-01-012022-09-300000078128wtrg:GasTransportationMemberwtrg:NaturalGasMember2022-01-012022-09-300000078128wtrg:FireProtectionMemberwtrg:WaterMember2022-01-012022-09-300000078128wtrg:CommercialMemberwtrg:WaterMember2022-01-012022-09-300000078128wtrg:CommercialMemberwtrg:WastewaterMember2022-01-012022-09-300000078128wtrg:CommercialMemberwtrg:NaturalGasMember2022-01-012022-09-300000078128wtrg:WaterMember2022-01-012022-09-300000078128wtrg:WastewaterMember2022-01-012022-09-300000078128wtrg:OtherMember2022-01-012022-09-300000078128wtrg:NaturalGasMember2022-01-012022-09-300000078128us-gaap:RevolvingCreditFacilityMemberwtrg:AquaPennsylvaniaIncMember2022-05-202022-05-200000078128stpr:VA2023-07-272023-07-270000078128stpr:NCwtrg:Year3Member2023-06-052023-06-050000078128stpr:NCwtrg:Year2Member2023-06-052023-06-050000078128stpr:NCwtrg:Year1Member2023-06-052023-06-050000078128wtrg:KentuckyAndPennsylvaniaMember2023-01-012023-09-300000078128stpr:IL2023-01-012023-09-300000078128stpr:OH2023-01-012023-01-310000078128stpr:IN2023-01-012023-01-310000078128stpr:OH2022-12-302022-12-300000078128stpr:OH2022-09-212022-09-210000078128stpr:KY2022-06-072022-06-070000078128stpr:PA2022-05-162022-05-160000078128stpr:KY2022-01-032022-01-030000078128wtrg:NotesAtFivePointThirtyPercentDueTwoThousandFiftyTwoMember2022-05-202022-05-200000078128wtrg:WastewaterUtilitySystemsInVariousStatesMember2023-01-012023-09-300000078128wtrg:NaturalGasMember2023-01-012023-09-300000078128wtrg:RevolvingCreditAgreementDueBMember2023-09-300000078128wtrg:RevolvingCreditAgreementDueBMember2022-12-310000078128us-gaap:EstimateOfFairValueFairValueDisclosureMember2023-09-300000078128us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-09-300000078128us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310000078128us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310000078128wtrg:LetterOfCreditSublimitMemberus-gaap:UnsecuredDebtMember2023-09-300000078128us-gaap:LetterOfCreditMemberus-gaap:UnsecuredDebtMember2023-09-300000078128us-gaap:RevolvingCreditFacilityMemberwtrg:SwingLineCommitmentMemberus-gaap:UnsecuredDebtMember2023-09-300000078128us-gaap:RevolvingCreditFacilityMemberus-gaap:UnsecuredDebtMember2023-09-300000078128wtrg:PeoplesGasAcquisitionMemberwtrg:AmendedUnsecuredFacilityMember2023-06-290000078128wtrg:AmendedUnsecuredFacilityMemberwtrg:AquaPennsylvaniaIncMember2023-06-290000078128us-gaap:RevolvingCreditFacilityMemberus-gaap:UnsecuredDebtMember2022-12-140000078128us-gaap:RevolvingCreditFacilityMemberus-gaap:UnsecuredDebtMember2021-12-310000078128wtrg:WaterMember2023-09-300000078128wtrg:NaturalGasMember2023-09-300000078128wtrg:WaterMember2022-12-310000078128wtrg:NaturalGasMember2022-12-310000078128us-gaap:RetainedEarningsMember2023-07-012023-09-300000078128us-gaap:RetainedEarningsMember2023-04-012023-06-300000078128us-gaap:RetainedEarningsMember2022-07-012022-09-300000078128us-gaap:RetainedEarningsMember2022-04-012022-06-300000078128us-gaap:RetainedEarningsMember2023-01-012023-03-310000078128us-gaap:RetainedEarningsMember2022-01-012022-03-310000078128us-gaap:DisposalGroupNotDiscontinuedOperationsMember2023-10-310000078128us-gaap:OperatingSegmentsMemberwtrg:WaterMember2023-07-012023-09-300000078128us-gaap:OperatingSegmentsMemberwtrg:NaturalGasMember2023-07-012023-09-300000078128us-gaap:CorporateAndOtherMember2023-07-012023-09-300000078128us-gaap:OperatingSegmentsMemberwtrg:WaterMember2023-01-012023-09-300000078128us-gaap:OperatingSegmentsMemberwtrg:NaturalGasMember2023-01-012023-09-300000078128us-gaap:CorporateAndOtherMember2023-01-012023-09-300000078128us-gaap:OperatingSegmentsMemberwtrg:WaterMember2022-07-012022-09-300000078128us-gaap:OperatingSegmentsMemberwtrg:NaturalGasMember2022-07-012022-09-300000078128us-gaap:CorporateAndOtherMember2022-07-012022-09-300000078128us-gaap:OperatingSegmentsMemberwtrg:WaterMember2022-01-012022-09-300000078128us-gaap:OperatingSegmentsMemberwtrg:NaturalGasMember2022-01-012022-09-300000078128us-gaap:CorporateAndOtherMember2022-01-012022-09-300000078128us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-07-012023-09-300000078128us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-01-012023-09-300000078128us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-07-012022-09-300000078128us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-01-012022-09-300000078128us-gaap:PensionPlansDefinedBenefitMember2023-07-012023-09-300000078128us-gaap:PensionPlansDefinedBenefitMember2023-01-012023-09-300000078128us-gaap:PensionPlansDefinedBenefitMember2022-07-012022-09-300000078128us-gaap:PensionPlansDefinedBenefitMember2022-01-012022-09-300000078128wtrg:AmendedUnsecuredFacilityMember2023-06-292023-06-290000078128us-gaap:RevolvingCreditFacilityMemberus-gaap:UnsecuredDebtMember2022-12-142022-12-140000078128us-gaap:RevolvingCreditFacilityMember2022-05-202022-05-200000078128us-gaap:RevolvingCreditFacilityMemberus-gaap:UnsecuredDebtMember2021-01-012021-12-310000078128srt:MinimumMemberwtrg:UnsecuredNotesBMember2023-09-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2023-09-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2023-09-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2023-09-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2023-09-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2023-09-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2023-09-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2023-09-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2023-09-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2023-09-300000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2023-09-300000078128srt:MaximumMemberwtrg:UnsecuredNotesBMember2023-09-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2023-09-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2023-09-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2023-09-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2023-09-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2023-09-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2023-09-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2023-09-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2023-09-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2023-09-300000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2023-09-300000078128wtrg:NotesZMember2023-09-300000078128wtrg:NotesGMember2023-09-300000078128wtrg:NotesBbMember2023-09-300000078128wtrg:NotesAtFivePointThirtyPercentDueTwoThousandFiftyTwoMember2023-09-300000078128wtrg:NotesAaMember2023-09-300000078128srt:MinimumMemberwtrg:UnsecuredNotesBMember2022-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2022-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2022-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2022-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2022-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2022-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2022-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2022-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2022-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2022-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2022-12-310000078128srt:MaximumMemberwtrg:UnsecuredNotesBMember2022-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2022-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2022-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2022-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2022-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2022-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2022-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2022-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2022-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2022-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2022-12-310000078128wtrg:NotesZMember2022-12-310000078128wtrg:NotesGMember2022-12-310000078128wtrg:NotesBbMember2022-12-310000078128wtrg:NotesAtFivePointThirtyPercentDueTwoThousandFiftyTwoMember2022-12-310000078128wtrg:NotesAaMember2022-12-310000078128wtrg:NotesAtFivePointThirtyPercentDueTwoThousandFiftyTwoMember2022-05-200000078128wtrg:FirstMortgageBondsMember2023-08-310000078128wtrg:FirstMortgageBondsCMember2023-08-310000078128wtrg:FirstMortgageBondsBMember2023-08-310000078128wtrg:AquaPennsylvaniaIncMember2023-01-310000078128wtrg:AquaPennsylvaniaIncMember2022-10-310000078128wtrg:LdcFundingLlcMember2019-04-232019-04-230000078128wtrg:LdcFundingLlcMember2019-04-2300000781282022-09-3000000781282021-12-310000078128us-gaap:FairValueInputsLevel1Member2023-09-300000078128us-gaap:FairValueInputsLevel1Member2022-12-310000078128stpr:WVwtrg:RegulatedNaturalGasUtilityAssetsMember2022-12-310000078128wtrg:BeaverFallsPennsylvaniaMemberwtrg:WaterUtilitySystemMember2021-10-310000078128stpr:DEwtrg:WaterUtilitySystemMember2019-09-300000078128wtrg:GreenvillePennsylvaniaMemberwtrg:WastewaterUtilitySystemsInVariousStatesMember2023-09-012023-09-300000078128wtrg:VillageOfFrankfortMember2023-07-012023-07-310000078128wtrg:SouthernOaksWaterSystemMember2023-07-012023-07-310000078128wtrg:ShenandoahBoroughMember2023-07-012023-07-310000078128wtrg:LaRueMember2023-07-012023-07-310000078128wtrg:GlenviewIllinoisMemberwtrg:WastewaterUtilitySystemsInVariousStatesMember2023-06-012023-06-300000078128wtrg:UnionRomeMember2023-06-012023-06-300000078128wtrg:GreenvillePennsylvaniaMemberwtrg:WaterAndWastewaterUtilitySystemsMember2023-04-012023-04-300000078128wtrg:NorthHeidelbergSewerCompanyMember2023-03-012023-03-310000078128wtrg:OakBrookIllinoisMemberwtrg:WaterAndWastewaterUtilitySystemsMember2022-11-012022-11-300000078128wtrg:EastWhitelandTownshipMemberwtrg:WaterAndWastewaterUtilitySystemsMember2022-08-122022-08-120000078128wtrg:LowerMakefieldTownshipMemberwtrg:WaterAndWastewaterUtilitySystemsMember2022-03-012022-03-310000078128stpr:PAwtrg:WaterAndWastewaterUtilitySystemsMember2021-01-012021-01-310000078128wtrg:RegulatedNaturalGasUtilityAssetsMember2023-09-300000078128wtrg:RegulatedNaturalGasUtilityAssetsMember2022-12-310000078128us-gaap:OperatingSegmentsMemberwtrg:WaterMember2023-09-300000078128us-gaap:OperatingSegmentsMemberwtrg:NaturalGasMember2023-09-300000078128us-gaap:CorporateAndOtherMember2023-09-300000078128us-gaap:OperatingSegmentsMemberwtrg:WaterMember2022-12-310000078128us-gaap:OperatingSegmentsMemberwtrg:NaturalGasMember2022-12-310000078128us-gaap:CorporateAndOtherMember2022-12-310000078128wtrg:PerformanceShareUnitsMember2023-07-012023-09-300000078128us-gaap:RestrictedStockUnitsRSUMember2023-07-012023-09-300000078128us-gaap:RestrictedStockMember2023-07-012023-09-300000078128us-gaap:EmployeeStockOptionMember2023-07-012023-09-300000078128wtrg:PerformanceShareUnitsMember2023-01-012023-09-300000078128us-gaap:StockCompensationPlanMember2023-01-012023-09-300000078128us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-09-300000078128us-gaap:RestrictedStockMember2023-01-012023-09-300000078128us-gaap:EmployeeStockOptionMember2023-01-012023-09-300000078128wtrg:PerformanceShareUnitsMember2022-07-012022-09-300000078128us-gaap:StockCompensationPlanMember2022-07-012022-09-300000078128us-gaap:RestrictedStockUnitsRSUMember2022-07-012022-09-300000078128us-gaap:RestrictedStockMember2022-07-012022-09-300000078128us-gaap:EmployeeStockOptionMember2022-07-012022-09-300000078128wtrg:PerformanceShareUnitsMember2022-01-012022-09-300000078128us-gaap:StockCompensationPlanMember2022-01-012022-09-300000078128us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300000078128us-gaap:RestrictedStockMember2022-01-012022-09-300000078128us-gaap:EmployeeStockOptionMember2022-01-012022-09-300000078128us-gaap:TreasuryStockCommonMember2023-07-012023-09-300000078128us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300000078128us-gaap:TreasuryStockCommonMember2023-04-012023-06-300000078128us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-3000000781282023-04-012023-06-300000078128us-gaap:TreasuryStockCommonMember2023-01-012023-03-310000078128us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-3100000781282023-01-012023-03-310000078128us-gaap:TreasuryStockCommonMember2022-07-012022-09-300000078128us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300000078128us-gaap:TreasuryStockCommonMember2022-04-012022-06-300000078128us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-3000000781282022-04-012022-06-300000078128us-gaap:TreasuryStockCommonMember2022-01-012022-03-310000078128us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-3100000781282022-01-012022-03-3100000781282022-07-012022-09-3000000781282022-01-012022-09-3000000781282023-09-3000000781282022-12-3100000781282023-07-012023-09-3000000781282023-10-2300000781282023-01-012023-09-30wtrg:customerwtrg:itemwtrg:segmentxbrli:pureiso4217: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 September 30, 2023

£ 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

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of October 23, 2023: 273,165,817


Table of Contents

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

Page

Part I – Financial Information

Item 1. Financial Statements:

Consolidated Balance Sheets (unaudited) – September 30, 2023 and December 31, 2022

2

Consolidated Statements of Operations and Comprehensive Income (unaudited) –
Three Months Ended September 30, 2023 and 2022

4

Consolidated Statements of Operations and Comprehensive Income (unaudited) –
Nine Months Ended September 30, 2023 and 2022

5

Consolidated Statements of Capitalization (unaudited) –
September 30, 2023 and December 31, 2022

6

Consolidated Statements of Equity (unaudited) –
Nine Months Ended September 30, 2023

7

Consolidated Statements of Equity (unaudited) –
Nine Months Ended September 30, 202
2

8

Consolidated Statements of Cash Flow (unaudited) –
Nine Months Ended September 30, 2023 and 2022

9

Notes to Consolidated Financial Statements (unaudited)

10

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

32

Item 3. Quantitative and Qualitative Disclosures About Market Risk

46

Item 4. Controls and Procedures

46

 

Part II – Other Information

 

Item 1. Legal Proceedings

46

Item 1A. Risk Factors

46

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

47

Item 5. Other Information

47

Item 6. Exhibits

48

Signatures

49

1


Table of Contents

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

CONSOLIDATED BALANCE SHEETS 

(In thousands of dollars, except per share amounts) 

(UNAUDITED)

 

September 30,

December 31,

Assets

2023

2022

Property, plant and equipment, at cost

$

14,681,336

$

13,737,387 

Less: accumulated depreciation

2,834,771

2,606,441 

Net property, plant and equipment

11,846,565

11,130,946 

Current assets:

Cash and cash equivalents

8,505

11,398 

Accounts receivable, net

133,735

206,324 

Unbilled revenues

75,101

170,504 

Inventory - materials and supplies

48,811

46,592 

Inventory - gas stored

78,634

153,143 

Current assets held for sale

7,461

11,167 

Prepayments and other current assets

31,409

39,759 

Regulatory assets

25,692

19,272 

Total current assets

409,348

658,159 

Regulatory assets

1,564,056

1,342,753 

Deferred charges and other assets, net

191,958

166,653 

Funds restricted for construction activity

1,370

1,342 

Goodwill

2,340,661

2,340,792 

Non-current assets held for sale

37,327

32,124 

Operating lease right-of-use assets

37,836

41,734 

Intangible assets

3,672

4,604 

Total assets

$

16,432,793

$

15,719,107 

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)

 

ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod

September 30,

December 31,

Liabilities and Equity

2023

2022

Stockholders' equity:

Common stock at $0.50 par value, authorized 600,000,000 shares, issued 276,471,716 and 266,973,321 as of September 30, 2023 and December 31, 2022

$

138,235

$

133,486 

Capital in excess of par value

4,131,834

3,793,262 

Retained earnings

1,739,271

1,534,331 

Treasury stock, at cost, 3,305,899 and 3,236,237 shares as of September 30, 2023 and December 31, 2022

(86,783)

(83,693)

Total stockholders' equity

5,922,557

5,377,386 

Long-term debt, excluding current portion

6,501,254

6,418,039 

Less: debt issuance costs

45,214

46,982 

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

6,456,040

6,371,057 

Commitments and contingencies (See Note 14)

 

 

Current liabilities:

Current portion of long-term debt

218,619

199,356 

Loans payable

131,832

228,500 

Accounts payable

191,924

238,843 

Book overdraft

19,688

28,694 

Accrued interest

81,429

47,063 

Accrued taxes

29,113

34,393 

Liabilities related to assets held for sale

2,669

3,263 

Regulatory liabilities

80,190

35,276 

Dividends payable

-

75,808 

Other accrued liabilities

141,104

130,673 

Total current liabilities

896,568

1,021,869 

Deferred credits and other liabilities:

Deferred income taxes and investment tax credits

1,486,979

1,345,766 

Customers' advances for construction

129,139

114,732 

Regulatory liabilities

825,659

778,754 

Asset retirement obligations

845

843 

Operating lease liabilities

35,133

37,666 

Non-current liabilities related to assets held for sale

758

974 

Pension and other postretirement benefit liabilities

32,380

31,244 

Other

24,326

28,562 

Total deferred credits and other liabilities

2,535,219

2,338,541 

Contributions in aid of construction

622,409

610,254 

Total liabilities and equity

$

16,432,793

$

15,719,107 

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 of dollars, except per share amounts) 

(UNAUDITED)

 

Three Months Ended

September 30,

2023

2022

Operating revenues

$

411,255

$

434,618

Operating expenses:

Operations and maintenance

147,018

151,361

Purchased gas

16,590

52,041

Depreciation

84,348

80,471

Amortization

1,687

2,259

Taxes other than income taxes

24,207

22,625

Total operating expenses

273,850

308,757

Operating income

137,405

125,861

Other expense (income):

Interest expense

68,590

60,488

Interest income

(942)

(1,510)

Allowance for funds used during construction

(5,455)

(5,812)

Loss (gain) on sale of other assets

285

(299)

Other

(1,438)

(441)

Income before income taxes

76,365

73,435

Provision for income taxes (benefit)

(3,711)

4,797

Net income

$

80,076

$

68,638

Comprehensive income

$

80,076

$

68,638

Net income per common share:

Basic

$

0.30

$

0.26

Diluted

$

0.30

$

0.26

Average common shares outstanding during the period:

Basic

266,767

262,213

Diluted

267,176

262,754

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 of dollars, except per share amounts) 

(UNAUDITED)

Nine Months Ended

September 30,

2023

2022

Operating revenues

$

1,574,405

$

1,582,649

Operating expenses:

Operations and maintenance

418,520

428,923

Purchased gas

314,838

354,896

Depreciation

252,208

235,774

Amortization

3,282

4,478

Taxes other than income taxes

67,433

67,352

Total operating expenses

1,056,281

1,091,423

Operating income

518,124

491,226

Other expense (income):

Interest expense

210,440

169,345

Interest income

(2,731)

(2,943)

Allowance for funds used during construction

(14,567)

(17,802)

Gain on sale of other assets

(184)

(777)

Other

(2,001)

(2,566)

Income before income taxes

327,167

345,969

Income tax benefit

(35,611)

(4,336)

Net income

$

362,778