Davis Sunderland

Durgesh Chopra

Ryan Connors

Gregg Orrill

Jonathan Reeder

Julien Dumoulin-Smith

Travis Miller

Michael Gaugler

- American Water reported **third quarter 2025 earnings of $1.94 per share** and **year-to-date 2025 earnings of $4.47 per share**.  **[78128_0690bfcbac7b4e6caeb5aa5f7054aa72_0]** 
- The company **affirmed its weather-normalized 2025 EPS guidance range of $5.70 to $5.75** and **initiated 2026 EPS guidance of $6.02 to $6.12**, reflecting **8% EPS growth** at the midpoint.  **[78128_0690bfcbac7b4e6caeb5aa5f7054aa72_0]** **[78128_0690bfcbac7b4e6caeb5aa5f7054aa72_1]** 
- American Water announced a **definitive agreement to merge with Essential Utilities, Inc.** in an all-stock, tax-free transaction, with an **expected closing in Q1 2027**.  **[78128_0690bfcbac7b4e6caeb5aa5f7054aa72_0]** **[78128_0690bfcbac7b4e6caeb5aa5f7054aa72_1]** **[78128_0690bfcbac7b4e6caeb5aa5f7054aa72_3]** 
- The company **affirmed long-term targets**, including **7 to 9% EPS and dividend per share compounded annual growth rates** and a **2026-2030 capital plan of $19 to $20 billion**.  **[78128_0690bfcbac7b4e6caeb5aa5f7054aa72_0]** **[78128_0690bfcbac7b4e6caeb5aa5f7054aa72_1]**

American Water Reports Strong Q3 2025 Results, Affirms Guidance, and Announces Merger with Essential Utilities

- American Water and Essential Utilities announced an **all-stock merger**, with American Water shareholders owning approximately **69%** and Essential Utilities shareholders owning approximately **31%** of the combined company.  **[0000078128_2205201_1]**  The combined entity will operate under the **American Water** name, with **John Griffith** (American Water CEO) serving as President and CEO, and **Chris Franklin** (Essential Utilities Chairman and CEO) becoming Executive Vice Chair of the Board.  **[0000078128_2205201_1]**  The transaction is expected to close by the **end of 2027**.  **[0000078128_2205201_1]** 
- The combined company will have a rate base of approximately **$34 billion** as of 2024, serving approximately **5.4 million** connections across **17 regulated states**.  **[0000078128_2205201_2]** **[0000078128_2205201_3]** 
- The merger is expected to be **accretive to American Water's EPS** in the first year after closing.  **[0000078128_2205201_5]**  The combined company aims to maintain American Water's long-term EPS growth target of **7% to 9%**, rate base growth target of **8% to 9%**, and dividend per share growth target of **7% to 9%**.  **[0000078128_2205201_3]** **[0000078128_2205201_5]** 
- Following the close of the transaction, the combined company plans to conduct a review of strategic alternatives for its **non-water and non-wastewater businesses**, including Peoples Natural Gas.  **[0000078128_2205201_1]** **[0000078128_2205201_8]** 
- The merger is subject to customary closing conditions and approvals, including HSR clearance, a minimum of **seven** (potentially up to **10**) state regulatory approvals, and approvals from shareholders of both companies.  **[0000078128_2205201_1]** **[0000078128_2205201_6]** **[0000078128_2205201_7]**

American Water and Essential Utilities Announce All-Stock Merger

- **American Water** and **Essential Utilities** announced an **all-stock merger**, with American Water shareholders owning approximately **69%** and Essential Utilities shareholders owning approximately **31%** of the combined company.  **[0000078128_2205161_1]** 
- The combined entity, which will operate under the **American Water name** and be headquartered in **Camden, New Jersey**, is expected to have a rate base of approximately **$34 billion** as of the end of 2024 and serve approximately **5.4 million connections** across **17 regulated states**.  **[0000078128_2205161_1]** **[0000078128_2205161_2]** **[0000078128_2205161_3]** 
- The merger is anticipated to close by the **end of the first quarter of 2027**, subject to regulatory and shareholder approvals, and is expected to be **accretive to Essential Utilities' EPS in the first year after closing**.  **[0000078128_2205161_1]** **[0000078128_2205161_5]** **[0000078128_2205161_6]** 
- The combined company aims to maintain Essential Utilities' long-term targets of **7% to 9% EPS growth**, **8% to 9% rate base growth**, and **7% to 9% dividend per share growth**, with a **55% to 60% dividend payout ratio**.  **[0000078128_2205161_3]** **[0000078128_2205161_5]** 
- Following the transaction's close, the company plans to review strategic alternatives for its non-water and non-wastewater businesses, such as Peoples Natural Gas.  **[0000078128_2205161_1]** **[0000078128_2205161_8]**

- Essential Utilities, Inc. and American Water announced an **all-stock merger** where Essential Utilities shareholders will receive **0.305** shares of American Water common stock for each Essential Utilities share.  **[78128_0001552781-25-000341_e25376_ex99-2.htm:5]** **[78128_0001552781-25-000341_e25376_ex2-1.htm:6]** 
- The combined entity is projected to have an equity market capitalization of **$40 billion** as of October 24, 2025, with American Water shareholders owning **69%** and Essential Utilities shareholders **31%**.  **[78128_0001552781-25-000341_e25376_ex99-2.htm:5]** **[78128_0001552781-25-000341_e25376_ex99-2.htm:6]** 
- The merged company expects to maintain American Water's long-term **7-9% earnings per share (EPS)** and **dividend per share (DPS) growth targets**, with an anticipated dividend payout ratio of **55-60%**.  **[78128_0001552781-25-000341_e25376_ex99-1.htm:2]** **[78128_0001552781-25-000341_e25376_ex99-2.htm:6]** **[78128_0001552781-25-000341_e25376_ex99-2.htm:8]** 
- The transaction is anticipated to close by the end of **Q1 2027**.  **[78128_0001552781-25-000341_e25376_ex99-2.htm:8]**

Essential Utilities, Inc. Announces All-Stock Merger with American Water

- Essential Utilities and American Water Works Company, Inc. announced a definitive agreement to **combine in an all-stock, tax-free merger** with a pro forma market capitalization of approximately **$40 billion** and a combined enterprise value of approximately **$63 billion**, based on closing stock prices as of October 24, 2025.  **[78128_91596c6ab0b04383a5391e4dacdf58ff_0]** 
- Under the terms, Essential shareholders will receive **0.305 shares of American Water** for each share they own, leading to American Water shareholders owning approximately **69%** and Essential shareholders approximately **31%** of the combined company.  **[78128_91596c6ab0b04383a5391e4dacdf58ff_1]** 
- The merger is expected to be **accretive to American Water’s EPS** in the first year following the close of the transaction, and the combined company expects to maintain American Water’s **7-9% long-term EPS and DPS growth targets**.  **[78128_91596c6ab0b04383a5391e4dacdf58ff_0]** **[78128_91596c6ab0b04383a5391e4dacdf58ff_2]** 
- The combined entity will serve approximately **4.7 million water and wastewater connections** across **17 states** and on **18 military installations**, with a combined water and wastewater rate base of approximately **$29.3 billion** as of the end of 2024.  **[78128_91596c6ab0b04383a5391e4dacdf58ff_0]** **[78128_91596c6ab0b04383a5391e4dacdf58ff_2]** 
- The transaction is expected to close by the **end of the first quarter of 2027**, subject to customary closing conditions and regulatory approvals.  **[78128_91596c6ab0b04383a5391e4dacdf58ff_3]**  The combined company will be headquartered in **Camden, New Jersey**, and will continue to use the name "American Water".  **[78128_91596c6ab0b04383a5391e4dacdf58ff_3]**

Essential Utilities and American Water Announce Merger

- Essential Utilities (WTRG) announced an agreement on **August 27, 2025**, to invest in a **1,400-acre** on-site powered data center facility in Greene County, Pennsylvania, in partnership with International Electric Power III, LLC (IEP).  **[78128_0001552781-25-000262_e25297_ex99-1.htm:0]** **[78128_0001552781-25-000262_e25297_wtrg-8k.htm:1]** 
- Through its subsidiary Aqua, Essential Utilities plans to design, build, and operate an **18 million gallon per day (MGD) water treatment plant** to service the power plant and data center.  **[78128_0001552781-25-000262_e25297_ex99-1.htm:0]** **[78128_0001552781-25-000262_e25297_wtrg-8k.htm:1]** 
- Essential Utilities' subsidiary, Peoples, will provide natural gas consulting services and energy management services to the project, which will be powered by **944 MW** of natural gas combined cycle combustion turbines.  **[78128_0001552781-25-000262_e25297_ex99-1.htm:0]** **[78128_0001552781-25-000262_e25297_wtrg-8k.htm:1]** 
- The Greene County project is expected to be operational in the **first quarter of 2029**.  **[78128_0001552781-25-000262_e25297_ex99-1.htm:0]**