Essential Utilities Inc (WTRG) 2025 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to the Essential Q2 2025 earnings conference call. (Operator Instructions)

女士們、先生們，感謝你們的支持。我叫 Desiree，今天我將擔任您的會議主持人。現在，我歡迎大家參加 Essential 2025 年第二季財報電話會議。（操作員指示）

I would now like to turn the conference over to Brian Dingerdissen. You may begin.

現在我想將會議交給 Brian Dingerdissen。你可以開始了。

Thank you. Good morning, everyone, and thank you for joining us for the second quarter 2025 earnings call. If you did not receive a copy of the press release, you can find it by visiting our website. The slides are also found on the website. As a reminder, some of the matters discussed during this call may include forward-looking statements that involve risks, uncertainties, and other factors that may cause the actual results to be materially different from any future results expressed or implied by such forward-looking statements.

謝謝。大家早安，感謝您參加 2025 年第二季財報電話會議。如果您沒有收到新聞稿的副本，您可以訪問我們的網站找到它。幻燈片也可在網站上找到。提醒一下，本次電話會議中討論的一些事項可能包括前瞻性陳述，這些陳述涉及風險、不確定性和其他因素，可能導致實際結果與此類前瞻性陳述表達或暗示的任何未來結果有重大差異。

Please refer to our most recent 10-Q, 10-K, and other SEC filings for a description of such risks and uncertainties. During the course of this call, references may be made to certain non-GAAP financial measures. Reconciliation of any non-GAAP to GAAP financial measures is posted on our website.

有關此類風險和不確定性的描述，請參閱我們最近的 10-Q、10-K 和其他 SEC 文件。在本次電話會議期間，可能會提及某些非公認會計準則財務指標。任何非 GAAP 與 GAAP 財務指標的對帳均發佈在我們的網站上。

We will begin the call with Chris Franklin, our Chairman and CEO, who will provide an update on the company. Then Colleen Arnold, the President of our Aqua business, will provide an update on the Water business; Dan Schuller, our Chief Financial Officer, will then provide an overview of the financial results before Chris closes the call and opens it up for questions.

我們將與董事長兼執行長 Chris Franklin 開始電話會議，他將介紹公司的最新情況。然後，我們的 Aqua 業務總裁 Colleen Arnold 將介紹水業務的最新情況；我們的財務長 Dan Schuller 將概述財務結果，然後 Chris 結束電話會議並開始提問。

With that, I will turn the call over to Chris Franklin.

說完這些，我將把電話轉給克里斯·富蘭克林。

Thanks, Brian. And good morning, everyone. Let's just jump right in on slide 5 there with some highlights from the quarter. We delivered another strong quarter, reporting GAAP earnings per share of $0.38. That's a 35% increase over the same quarter last year. Both our Water and Gas businesses performed very well and in line with our expectations. And simply put, both divisions are firing on all cylinders.

謝謝，布萊恩。大家早安。讓我們直接進入第 5 張投影片，其中介紹本季的一些亮點。我們又一個季度表現強勁，每股收益達 0.38 美元（以 GAAP 計算），較去年同期成長 35%。我們的水務和天然氣業務表現都非常出色，符合我們的預期。簡而言之，兩個部門都在全力以赴。

Our Gas business continued its impressive trajectory with net income for the quarter of $17.5 million. I'm not going to steal any thunder from Colleen. She is going to share a little bit more about the Water business in a few minutes. But as you come to expect, we are executing nearly flawlessly in both our Water and our Natural Gas segments.

我們的天然氣業務繼續保持著令人印象深刻的成長軌跡，本季淨收入達到 1,750 萬美元。我不會搶科琳的風頭。幾分鐘後她將分享更多有關水業務的資訊。但正如您所期望的，我們在水務和天然氣領域的表現幾乎完美無缺。

Based on our strong year-to-date performance, we expect to achieve GAAP earnings per share above our guidance range of $2.07 to $2.11, largely due to several non-recurring benefits. We're also reaffirming our capital investment plans with a target of approximately $1.4 billion (sic, see presentation slide 5, "$1.4 billion to $1.5 billion") in infrastructure investment for 2025. As of June 30, we've already deployed $613 million in critical infrastructure improvements across our footprint.

根據我們今年迄今的強勁表現，我們預計每股 GAAP 收益將高於我們的指導範圍 2.07 美元至 2.11 美元，這主要歸功於幾項非經常性收益。我們也重申了我們的資本投資計劃，目標是到 2025 年基礎設施投資約為 14 億美元（原文如此，請參閱簡報投影片 5，「14 億至 15 億美元」）。截至 6 月 30 日，我們已在公司業務範圍內投入了 6.13 億美元用於關鍵基礎設施的改善。

Now let me take a moment to highlight some exciting developments happening in our home state of Pennsylvania. Earlier this month, we participated in the Pennsylvania Energy and Innovation Summit, which was hosted by our new United States Senator, Dave McCormick. Energy leaders from around the country gathered to share thoughts, breakthroughs in energy and technology, and our Gas Division President, Mike Huwar, showcased our ongoing hydrogen pilot project.

現在，請允許我花點時間來重點介紹我們家鄉賓州正在發生的一些令人興奮的發展。本月初，我們參加了由新任美國參議員戴夫·麥考密克主持的賓州能源與創新高峰會。來自全國各地的能源領袖齊聚一堂，分享想法、能源和技術方面的突破，我們的天然氣部門總裁 Mike Huwar 展示了我們正在進行的氫氣試點項目。

This is a cutting-edge technology developed in partnership with H Quest and the University of Pittsburgh. Now the comparatively low price of energy in Pennsylvania makes it such a logical choice for hyperscalers looking to locate data centers, and we continue to have active discussions with some of those hyperscalers as we speak.

這是與 H Quest 和匹茲堡大學合作開發的尖端技術。現在，賓州的能源價格相對較低，這使其成為尋求建立資料中心的超大規模企業的合理選擇，我們正在繼續與其中一些超大規模企業進行積極的討論。

Now moving from Pennsylvania to Texas, we serve customers in the Kerrville area of Texas. You'll recall the terrible flood that took place just several weeks ago. Fortunately, all of our employees and their families made it through the storm. And one of our employees and his family had 9 feet of water in their home and had some absolutely harrowing moments. But thank God, they're healing from their injuries and working to reestablish their home. During the height of the event, we had some customer outages but restored service to most customers within 24 hours and all customers within 48 hours, a really exemplary job done by our Texas team.

現在我們從賓夕法尼亞州搬到了德克薩斯州，為德克薩斯州克爾維爾地區的客戶提供服務。您會記得幾週前發生的可怕洪水。幸運的是，我們所有的員工和他們的家人都安然度過了這場風暴。我們的一名員工和他的家人家裡突然進了 9 英尺深的水，他們經歷了一段極其痛苦的時光。但感謝上帝，他們的傷勢正在好轉，並正在努力重建家園。在事件最嚴重的時候，我們遇到了一些客戶中斷服務的情況，但我們在 24 小時內恢復了大多數客戶的服務，並在 48 小時內恢復了所有客戶的服務，這是我們德州團隊所做的一項真正傑出的工作。

Speaking of employees, last month, we wrapped up our most recent employee engagement survey under the theme Better Together. And I know employee engagement is becoming a common topic for investors. Now our results reflected the impact of our focused efforts to enhance our work environment. In fact, participation in the survey increased 23%, which was fantastic. Satisfaction scores rose by 6%. And on average, survey scores improved by 7 points. These results reflect our continued focus on creating an engaging, inclusive and supportive workplace.

說到員工，上個月，我們以「更好地團結」為主題完成了最新的員工敬業度調查。我知道員工敬業度正在成為投資者的熱門話題。現在，我們的成果反映了我們為改善工作環境所做的集中努力所產生的影響。事實上，參與調查的人數增加了 23%，這真是太棒了。滿意度分數上升了6%。平均而言，調查得分提高了 7 分。這些結果反映了我們持續致力於創造一個有吸引力、包容性和支持性的工作場所。

Each year, we take great pride in reminding shareholders that for more than 30 years in a row, we've increased our dividend. And as an expression of continued confidence, yesterday, the Board of Directors approved a 5.25% increase in the dividend. We remain committed to delivering long-term shareholder value through dividends and share price appreciation. So let's take a look at slide 6. I want to touch on a couple of community engagement issues.

每年，我們都非常自豪地提醒股東，我們已經連續 30 多年增加了股利。為了表達持續的信心，昨天，董事會批准將股息提高 5.25%。我們仍致力於透過股利和股價升值​​實現長期股東價值。讓我們看一下投影片 6。我想談幾個社區參與問題。

In April, we successfully concluded our fourth annual Essential Earth Day. And this is a 30-day campaign dedicated to environmental stewardship and community engagement. The slide showcases our efforts in recent years, which include volunteer events, environmental programs, and a significant investment from our Essential Foundation.

四月，我們成功結束了第四屆地球重要日。這是一項為期 30 天的活動，致力於環境管理和社區參與。幻燈片展示了我們近年來的努力，其中包括志工活動、環境計畫以及來自 Essential Foundation 的大量投資。

As a recognition for our community engagement and leadership, we were recently honored as one of Greater Philadelphia's most community-minded businesses. This is a recognition that we really appreciate and take to heart. Modeled after the Points of Light national program, the award recognizes companies that set the standard for civic engagement through using their time, talent, and resources. This commitment to community engagement is something we do in all of our states where we have businesses.

作為對我們社區參與和領導能力的認可，我們最近被評為大費城最具社區意識的企業之一。我們非常感激並銘記這項認可。該獎項以「光點」國家計畫為藍本，旨在表彰那些利用自己的時間、才能和資源為公民參與樹立標準的公司。我們在所有有業務開展的州都致力於社區參與。

And finally, on a personal note, I am thrilled and honored to be named the Chairman-Elect of the Philadelphia Chamber of Commerce. I look forward to partnering with leaders from around the region to promote economic growth and regional priorities, which hopefully end up with more utility customers.

最後，就我個人而言，我很高興也很榮幸被任命為費城商會的當選主席。我期待與該地區的領導人合作，促進經濟成長和區域優先事項，希望最終能吸引更多的公用事業客戶。

Moving to slide 7, let's talk about the shareholder value. We continue to deliver steady, reliable growth in earnings and in dividends. 2025 is shaping up to be another strong year with core earnings per share expected to grow this year between 5% and 7%. Most of this growth is driven by investments in Water and Natural Gas infrastructure. Of note, since we started providing annual guidance back in 2016, we have consistently met or exceeded market expectations.

轉到第 7 張投影片，我們來談談股東價值。我們持續實現獲利和股息的穩定、可靠成長。 2025 年預計將成為另一個強勁的一年，預計今年每股核心收益將成長 5% 至 7%。這一增長主要由水利和天然氣基礎設施投資推動。值得注意的是，自 2016 年我們開始提供年度指引以來，我們一直達到或超越市場預期。

This consistency has enabled strong dividend growth underpinned by the outstanding execution of our operations team and their commitment to communities we serve. I have to tell you, I continue to be impressed by what our team has achieved, and I'm honored to continue to be a steward of this great company with its 140-year history.

這種一致性使得股息強勁成長，這得益於我們營運團隊的出色執行力及其對我們所服務社區的承諾。我必須告訴你們，我們的團隊所取得的成就給我留下了深刻的印象，我很榮幸能夠繼續擔任這家擁有 140 年歷史的偉大公司的管理者。

Today, I want to continue the tradition of spotlighting our business segment leaders. Last quarter, you heard from Mike Huwar, President of our Natural Gas division. And today, we welcome Colleen Arnold, President of our Water Division, who will share some thoughts on our Water business. Colleen?

今天，我想繼續關注我們業務部門領導者的傳統。上個季度，您聽取了我們天然氣部門總裁 Mike Huwar 的演講。今天，我們歡迎水務部門總裁科琳·阿諾德 (Colleen Arnold)，她將分享對我們水務業務的一些看法。科琳？

Thanks, Chris. I'm happy to be here today and especially appreciate the opportunity to highlight the important work that the team at Aqua is doing. As a reminder for our investors, Aqua, as Chris just mentioned, has a strong 140-year history and has grown from a small water company in suburban Philadelphia to serving more than 1 million customers with over $7 billion of rate base in eight states.

謝謝，克里斯。我很高興今天能來到這裡，並特別感謝有機會強調 Aqua 團隊正在做的重要工作。提醒我們的投資者，正如克里斯剛才提到的，Aqua 擁有 140 年的悠久歷史，從費城郊區的一家小型水務公司發展成為服務於八個州 100 多萬客戶、費率基數超過 70 億美元的公司。

Notably, as shown on slide 9, we are expecting annual rate base growth of 6% through 2029, not including acquisitions. And the need for infrastructure investment has never been greater. With EPA estimating $1 trillion of need in water and wastewater infrastructure, that growth rate could easily grow with acquisitions. Now I've worked in the water industry for over 30 years, including as a consultant for municipalities and for a large city itself. Between the increasing complexity of PFAS, cybersecurity, wastewater, and declining funding, the conditions have never been more opportune.

值得注意的是，如投影片 9 所示，我們預計到 2029 年年利率基準成長率為 6%，不包括收購。對基礎設施投資的需求從未如此強烈。美國環保署估計，水和廢水基礎設施的需求為 1 兆美元，隨著收購的進行，這一成長率很容易成長。現在我已經在水務業工作了 30 多年，擔任市政當局和大城市的顧問。隨著 PFAS、網路安全、廢水問題日益複雜，以及資金減少，條件變得前所未有的有利。

Now highlighting our operational excellence on slide 10, as you see on the left, our O&M efficiency performs in the top quartile and has done so for over a decade. We take pride in ensuring that we are spending our customers' dollars efficiently. But equally important is that it is not at the expense of safe, reliable service. The top right-hand side chart shows that we outperform water systems nationally with 5 to 9 times fewer health-based and aesthetic violations. The bottom chart also shows our strong safety record, with top quartile performance with respect to severe safety incidents.

現在在第 10 張投影片上重點介紹我們的卓越運營，正如您在左側看到的，我們的 O&M 效率表現位於前四分位數，並且已經保持了十多年的水平。我們很自豪能夠確保有效率地使用客戶的錢。但同樣重要的是，它不會以犧牲安全、可靠的服務為代價。右上角的圖表顯示，我們的供水系統表現優於全國其他供水系統，健康和美觀違規行為減少了 5 到 9 倍。下圖也顯示了我們良好的安全記錄，在嚴重安全事故方面表現位居前四分位。

Also, as we move to slide 11, we are tremendously proud of our industry-leading PFAS commitment. We have been working on this for our customers since 2016, well before the EPA and state NCLs, because it was the right thing to do for our customers. Our laboratory in Pennsylvania was one of the first certified, and we sampled all of our sources proactively, enabling us to be where we are today.

此外，當我們翻到第 11 張幻燈片時，我們為我們行業領先的 PFAS 承諾感到無比自豪。自 2016 年以來，我們一直在為客戶致力於此事，遠早於 EPA 和州 NCL，因為這對我們的客戶來說是正確的做法。我們位於賓州的實驗室是首批獲得認證的實驗室之一，我們主動對所有來源進行了採樣，這使我們能夠達到今天的水平。

At this point, we have over 50 of our 300-plus sites mitigated and approximately another 50 under construction. This level of execution was made possible by the ingenuity of our engineering team who designed a proprietary modular system with applicability for groundwater systems. We've recently signed a distribution agreement with ChartWater to sell this patent-pending solution called PFAS Guard to community water systems. It is generating a lot of interest.

目前，我們已對 300 多個站點中的 50 多個進行了緩解，另有約 50 個站點正在建設中。這個執行水準得益於我們工程團隊的聰明才智，他們設計了適用於地下水系統的專有模組化系統。我們最近與 ChartWater 簽署了分銷協議，將這項名為 PFAS Guard 的正在申請專利的解決方案出售給社區供水系統。它引起了人們的極大興趣。

While we expect increased regulation to enhance acquisition opportunities, municipal systems, speaking from my experience, having worked with one, are slow to meet regulatory requirements. And many are just beginning to do the initial monitoring for PFAS now. The extension of regulatory deadlines may enable them to delay longer. However, we remain optimistic that as the monitoring results come in with our strong leadership, proven track record, and partnerships, this will be a strong avenue for acquisition growth.

雖然我們預計加強監管將增加收購機會，但根據我與某個市政系統合作的經驗來看，該系統在滿足監管要求方面進展緩慢。目前，許多人才剛開始對 PFAS 進行初步監測。監管期限的延長可能會使他們拖延更長時間。然而，我們仍然樂觀地認為，隨著監測結果、我們強大的領導力、良好的業績記錄和合作夥伴關係的出現，這將成為收購成長的強勁途徑。

Lastly, speaking of growth, I wanted to spend a little bit of time on Aqua Texas, where we have grown by nearly 25,000 connections to over 100,000 connections over the last 10 years and currently have another 90,000 under contract or negotiation. This is in line with the impressive growth the state has seen with 16% population increase and corresponding 30% GDP growth or economic expansion.

最後，談到成長，我想花一點時間談談 Aqua Texas，在過去 10 年裡，我們的連接數從近 25,000 個增長到超過 100,000 個，目前還有 90,000 個連接正在簽約或談判中。這與該州令人矚目的成長一致，人口成長了 16%，相應的 GDP 成長或經濟擴張也達到了 30%。

Our three core operational areas outside Spring, Austin, and Fort Worth, Texas grew from 20% to 40%. Most notably, Austin Metro, our area of highest developer growth, grew 40%. Based on customer growth and infrastructure needs, we expect to nearly double rebate to $1.1 billion in Texas by year-end 2029.

我們在德克薩斯州斯普林、奧斯汀和沃斯堡以外的三個核心營運區域的成長率從 20% 上升到 40%。最值得注意的是，奧斯汀都會區是我們開發商成長最快的地區，成長了 40%。根據客戶成長和基礎設施需求，我們預計到 2029 年底德州的回扣將增加近一倍，達到 11 億美元。

And now it would be a good time to mention that we recently led with the Texas Association of Water Companies' passage of future test year legislation. This will enable us to recover that capital investment and minimize regulatory lag. I would like to thank our amazing employees who really made that possible. We are excited for our future in Texas.

現在是時候提及我們最近帶領德州水務公司協會通過了未來測試年法案。這將使我們能夠收回資本投資並最大限度地減少監管滯後。我要感謝我們優秀的員工，是他們讓這一切成為可能。我們對在德克薩斯州的未來感到興奮。

And with that, I will turn it to Dan for a review of the financials.

有了這些，我將把它交給丹來審查財務狀況。

Thanks, Colleen. Let's begin on slide 15 with a high-level view of the first-quarter results, and then we'll get into the details on the waterfall. Our quarterly performance was strong with revenues up 18.5%, due primarily to favorable rate case outcomes in Pennsylvania, both for our gas and water subsidiaries, higher purchased gas costs, and increased gas volumes.

謝謝，科琳。讓我們從第 15 張投影片開始，從整體上了解第一季的業績，然後我們將深入了解瀑布圖的細節。我們的季度業績表現強勁，營收成長 18.5%，這主要歸功於賓州的有利利率案例結果（包括我們的天然氣和水務子公司）、更高的購買天然氣成本以及增加的天然氣量。

Corresponding earnings per share are up 35.7% on a year-over-year basis due to those drivers, partially offset by higher O&M, depreciation, interest, and taxes. On slide 16, we have the revenue waterfall for the first quarter. Revenues increased $80.5 million from $434.4 million a year ago to $514.9 million this year.

由於這些驅動因素，每股收益同比增長 35.7%，但被更高的營運和維護費用、折舊、利息和稅收部分抵消。投影片 16 顯示了第一季的收入狀況。收入從一年前的 4.344 億美元增加到今年的 5.149 億美元，增加了 8,050 萬美元。

Approximately $44 million of that increase is a result of rates and surcharges, with $31 million of that attributed to water and $13 million from natural gas. Purchased gas, which represents the cost of the gas sold by the company, increased $23 million year over year due to an increase in gas commodity prices and higher natural gas usage.

其中約 4,400 萬美元的增長是由於費率和附加費造成的，其中 3,100 萬美元是由於水費，1,300 萬美元是由於天然氣費。購買天然氣（即公司銷售的天然氣成本）由於天然氣商品價格上漲和天然氣使用量增加而比去年同期增加了 2,300 萬美元。

The other category of $9.8 million includes $4.6 million in weather normalization and $4.1 million in reduced tax reversed or store credits to customers as a result of last year's Peoples' rate order. Increased gas volumes provided $4.3 million in increased revenue, while growth in the Water business contributed $2.1 million. These were offset by $2.6 million from lower water volumes. Due to wet weather, we saw decreased consumption in a number of our states.

另一類 980 萬美元包括 460 萬美元的天氣正常化資金和 410 萬美元的減稅或商店信用額度（這是去年人民稅率命令的結果）。天然氣產量的增加帶來了 430 萬美元的收入成長，而水務業務的成長則貢獻了 210 萬美元。由於水量減少，損失達 260 萬美元。由於天氣潮濕，我們發現一些州的消費量下降。

Next, on slide 17, our O&M slide, we see O&M expenses up about $6 million or 4.2% year over year. The main drivers include an increase in employee-related costs of $6.1 million compared to prior period, an increase in bad debt expense of $2.2 million, and increases in legal expenses, partially offset by favorability in other expenses, primarily as a result of capitalization.

接下來，在第 17 張投影片（我們的 O&M 投影片）上，我們看到 O&M 費用比去年同期增加了約 600 萬美元，即 4.2%。主要驅動因素包括與上期相比，員工相關成本增加了 610 萬美元，壞帳費用增加了 220 萬美元，法律費用也增加了，但其他費用的有利增長部分抵消了這一增長，這主要是由於資本化。

The increase in employee-related costs includes about $650,000 of increased insurance reserves as we moved the Peoples employees from a fully insured health plan to a self-insured health plan. If we normalize out the growth, the universal services rider increases, and the higher-than-normal employee expenses, such as the insurance reserve, we get to a year-over-year increase of less than 3%, which is in line with our historic norms.

員工相關成本的增加包括約 65 萬美元的保險儲備金增加，因為我們將 Peoples 員工從完全保險的健康計劃轉移到自保健康計劃。如果我們將成長、普遍服務附加費的增加以及高於正常的員工費用（如保險準備金）標準化，我們會發現年成長率不到 3%，這與我們的歷史標準一致。

On slide 18, our earnings slide, we can see the previously mentioned effects, an $0.11 positive impact from rates and surcharges, a $0.01 increase due to higher natural gas volume, and a $0.02 negative impact due to lower water volume and increased expenses. And turning to slide 19, as you remember, this is a slide we introduced last quarter that provides more insight into how our annual EPS breaks out by quarter. We have now added the two quarters as reported with both at the high end of the shaded ranges.

在我們的收益幻燈片第 18 張上，我們可以看到前面提到的影響，費率和附加費產生了 0.11 美元的正面影響，天然氣量增加產生了 0.01 美元的增長，水量減少和費用增加產生了 0.02 美元的負面影響。翻到第 19 張投影片，您還記得嗎，這是我們上個季度推出的一張幻燈片，它更深入地介紹了我們的年度每股收益如何按季度細分。現在，我們已經添加了報告的兩個季度，並且都處於陰影範圍的高端。

For the third quarter of 2025, we expect our EPS to be between 10% and 20% of our annual guidance, and we expect our fourth quarter to be between 20% and 30% of our yearly guidance. We have some non-recurring items this year that benefit earnings. So on a normalized basis, we continue to target $2.07 to $2.11. And as Chris mentioned, we currently expect GAAP EPS to exceed $2.11.

對於 2025 年第三季度，我們預期每股盈餘將達到年度指引的 10% 至 20%，我們預期第四季每股盈餘將達到年度指引的 20% 至 30%。今年我們有一些非經常性項目對獲利有益。因此，在正常化基礎上，我們繼續將目標定在2.07美元至2.11美元之間。正如克里斯所提到的，我們目前預計GAAP每股收益將超過2.11美元。

Lastly, let's move to slide 20 to provide an update on regulatory activity. On July 1, 2025, our natural gas operating subsidiary in Kentucky received an order from the Kentucky Public Service Commission. This order approved a settlement agreement that allows base rate increases designed to increase total annual operating revenues by $7.7 million or 11.2%. New rates in Kentucky went into effect on July 1.

最後，讓我們翻到第 20 張投影片來提供有關監管活動的最新資訊。2025年7月1日，我們在肯塔基州的天然氣營運子公司收到了肯塔基州公共服務委員會的命令。該命令批准了一項和解協議，允許提高基準費率，旨在將年度總營業收入提高 770 萬美元或 11.2%。肯塔基州的新稅率於 7 月 1 日生效。

We currently have three pending rate cases or surcharges in North Carolina, which is a three-year forward-looking rate case, Ohio, Texas and Virginia with requested annual revenue increases of $96.6 million. So it's a busy year on the regulatory front. We continue to manage our regulatory activity to maintain safe and reliable service, earn an appropriate return on the capital that we invest and minimize regulatory lag while always considering affordability for our customers.

目前，我們在北卡羅來納州有三起未決的費率案件或附加費案件，這是一起為期三年的前瞻性費率案件，此外，在俄亥俄州、德克薩斯州和弗吉尼亞州，我們還要求每年增加 9660 萬美元的收入。因此，從監管角度來看，這是繁忙的一年。我們將繼續管理我們的監管活動，以維持安全可靠的服務，獲得我們投資資本的適當回報，並盡量減少監管滯後，同時始終考慮客戶的承受能力。

Before I conclude, we wanted to take a moment to recognize Bob Rubin. Bob has been with the company for 36 years, and he's been our Chief Accounting Officer for 20 years. During this time, Bob has had ultimate responsibility for our financials and SEC filings, and he's played a critical role in our earnings call prep. Thanks for your contributions to the company, Bob, and for your friendship. You will be missed. Fortunately, over the past few quarters, Bob has worked to transition his role to Brad Palmer, our new Chief Accounting Officer, so we won't miss a beat. Welcome to that new role, Brad.

在結束之前，我們想花點時間來認識鮑勃魯賓。鮑伯在公司工作 36 年，並擔任我們的首席會計官 20 年。在此期間，鮑勃對我們的財務和美國證券交易委員會 (SEC) 文件負有最終責任，並且他在我們的收益電話會議準備中發揮了關鍵作用。感謝您對公司的貢獻，鮑勃，也感謝您的友誼。我們會想念你的。幸運的是，在過去的幾個季度裡，鮑伯一直致力於將他的職位轉交給我們新任首席會計官布拉德·帕爾默，因此我們不會錯過任何一個細節。歡迎擔任新職務，布拉德。

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

說完這些，我會把話題交還給克里斯。克里斯？

All right. Thanks, Dan. Now let's move to slide 23, where we touch on our long-term growth through acquisition strategy that for many years and really continues to be focused on growing our water and wastewater business. Last week, we finalized our $37.75 million purchase of the City of Beaver Falls wastewater system in Beaver County, Pennsylvania, serving about 7,000 customers. That's out near Pittsburgh.

好的。謝謝，丹。現在讓我們翻到第 23 張幻燈片，我們在這裡談到透過收購實現長期成長的策略，多年來一直專注於發展我們的水和廢水業務。上週，我們最終以 3,775 萬美元的價格收購了賓州比佛縣的比佛瀑布市污水處理系統，為約 7,000 名客戶提供服務。那是在匹茲堡附近。

We had plan to invest $10 million in the system, focused primarily on improving both operational efficiency and environmental compliance. We're very excited to welcome our new customers and bring their system up to our standards. Now for 2025, in total, the company has acquired systems which serve approximately 10,300 customers for approximately $58 million. We also have another four signed purchase agreements for relatively small systems in Pennsylvania and Texas.

我們計劃在該系統上投資 1000 萬美元，主要致力於提高營運效率和環境合規性。我們非常高興地歡迎我們的新客戶並將他們的系統提升到我們的標準。截至 2025 年，該公司已斥資約 5,800 萬美元收購了為約 10,300 名客戶提供服務的系統。我們也與賓州和德州簽署了另外四份針對相對較小的系統的購買協議。

I'll remind you that progress on DELCORA continues to be stalled by a stay-put in place by a federal bankruptcy court judge related to the bankruptcy of the City of Chester. Now there is really nothing new to report on DELCORA, but I'll remind you that DELCORA is not included in our current guidance numbers.

我要提醒大家的是，由於聯邦破產法院法官因切斯特市破產而下達的暫停令，DELCORA 計畫的進展繼續受到阻礙。現在關於 DELCORA 確實沒有什麼新消息可報告，但我要提醒您，DELCORA 並不包含在我們當前的指導數字中。

Now turning to slide 24, I'll close by reiterating some of our goals and aspirations, both short term and long term. We continue to see strong growth potential in both our water and gas platforms and expect our combined utility rate base to grow at a compounded annual growth rate of about 8%. Breaking this down a little further, the Regulated Water segment is expected to grow about 6%, and our Regulated Natural Gas segment rate base will grow about 11%.

現在翻到第 24 張投影片，最後我將重申我們的一些短期和長期目標和願望。我們繼續看到水務和天然氣平台的強勁成長潛力，並預計我們的綜合公用事業費率基數將以約 8% 的複合年增長率成長。進一步細分，預計受監管水務部門將成長約 6%，而受監管天然氣部門的利率基數將成長約 11%。

We are reaffirming our 5% to 7% multi-year earnings per share guidance through 2027. This includes acquisitions expected to close in 2025 and 2026, but as we've said before, excludes DELCORA. This projection includes the crucial work that we're doing to remediate PFAS across our water platform as well as our work to replace aging water and natural gas pipes.

我們重申 2027 年每股盈餘預測為 5% 至 7%。這包括預計將於 2025 年和 2026 年完成的收購，但正如我們之前所說，不包括 DELCORA。該預測包括我們在整個水平台上修復 PFAS 的關鍵工作以及更換老化水管和天然氣管道的工作。

We remain committed to maintaining a strong balance sheet, improving our cash flow and debt metrics, and delivering consistent dividend growth while keeping our payout ratio between 60% and 65%. All in all, we see a bright future for our company as we continue to invest in our nation's infrastructure and continue to deliver long-term value to our shareholders.

我們將繼續致力於維持強勁的資產負債表，改善現金流和債務指標，並實現持續的股息成長，同時將股息成長率維持在 60% 至 65% 之間。總而言之，隨著我們繼續投資國家基礎設施並繼續為股東創造長期價值，我們看到公司前景光明。

And with that, I'm going to conclude the formal remarks for today, and we'll open it up for questions. Let me send it back to you, operator.

至此，我將結束今天的正式發言，然後開始提問。讓我把它發回給你，接線員。

(Operator Instructions) Julien Dumoulin-Smith, Jefferies.

（操作員指示）Julien Dumoulin-Smith，Jefferies。

Hey, good morning, team. Good to chat with you guys. Happy Friday. Maybe actually just to break it down, a bit of a nuanced question, but it has implications here. You guys provide this timing through the year in terms of quarterly earnings. If you take the midpoints from those and kind of look at what's implied, it kind of implies maybe high end is the better if you look at implied third quarter and fourth quarter here. Again, I don't mean to nitpick too much, but if you have any comment there, I'd love to kind of read between the lines there, if there's anything you'd say.

嘿，早上好，團隊。很高興與你們聊天。星期五快樂。也許實際上只是為了分解它，這是一個有點微妙的問題，但它在這裡有意義。你們以季度收益的形式提供了全年的時間。如果你從中取中點並看看其中隱含的內容，如果你看一下這裡隱含的第三季度和第四季度，它就暗示高端可能更好。再說一次，我並不是想吹毛求疵，但如果你有任何意見，我很樂意從字裡行間讀出你的想法。

Yes, for sure. So what we said on the call here, both Chris made the point, and I did as well, that we're going to come out on a GAAP basis above our guidance range, so above that (technical difficulty) So let me give you a little bit of detail there. So as I said, we're going to come out above the GAAP guidance range. We had strong revenue in gas this winter with more gas usage than weather alone would have predicted. And then this year as well, we benefited from some tax items and the reversal of a regulatory reserve as a result of the Aqua Pennsylvania rate order, and we had some insurance proceeds as well. Those are on the positive side.

是的，當然。因此，我們在電話會議上說過，克里斯和我都指出，我們將根據 GAAP 制定超出指導範圍的業績，因此超出該範圍（技術難度）所以讓我在這裡給你一些細節。正如我所說，我們的業績將超出 GAAP 指導範圍。今年冬天我們的天然氣收入很高，天然氣使用量超出了天氣本身的預測。今年，我們也受益於一些稅收項目和賓州 Aqua 稅率命令導致的監管儲備金的逆轉，我們也獲得了一些保險收益。這些都是正面的一面。

We've also had some headwinds this year. We've had the wet summer in several of our states, which has impacted us in Q2. It's currently continuing to impact us in the early part of the third quarter. Interest rates, of course, remain higher than expected. Inflation is still impacting some areas like chemicals, and we're still in the investing stage on our lean initiative.

今年我們也遇到了一些阻力。我們幾個州經歷了潮濕的夏季，這對我們第二季產生了影響。目前，它仍在第三季初對我們產生影響。當然，利率仍然高於預期。通貨膨脹仍然影響化工等一些領域，而我們的精實計畫仍處於投資階段。

And of course, it's still early in the year relative to the Gas business. We've had one half -- we've had half of last year's heating season. We still have November and December to go this year. So things can still move around. And thus, we're not being overly specific on where we'll land, but we're saying, on a GAAP basis, it will be above the guidance range.

當然，相對於天然氣業務而言，今年仍處於初期階段。我們已經經歷了去年暖氣季的一半。今年還有十一月和十二月。所以事情仍然可以繼續發展。因此，我們不會過於具體地說明我們的目標，但我們說，根據 GAAP，它將高於指導範圍。

Yes, got it. Thank you very much. Just wanted to elaborate a little bit there. And then just on the cash flow front, I mean, just where are you trending on FFO through the year here? And then specifically within that, how are you thinking about PFAS here and some of the tailwinds from the settlements here and the timing for the collection of those, if you will?

是的，明白了。非常感謝。我只是想稍微詳細地解釋一下。然後就現金流方面而言，我的意思是，您今年的 FFO 趨勢如何？然後具體來說，您如何看待這裡的 PFAS 以及這裡的定居點帶來的一些順風因素以及收集這些因素的時機？

Yes. So you'll see -- let me touch on those in pieces. So our focus really for this year is to be above that 12% downgrade threshold, ideally put some distance in there, call it, like a 12.2% target area. Because we've obviously been in close conversations with Moody's, and we'd like to see that negative outlook removed in early 2026 once they see full-year 2025 results.

是的。所以你會看到——讓我分部分地談一下這些。因此，我們今年的重點是超越 12% 的降級門檻，理想情況下是保持一定的距離，稱之為 12.2% 的目標區域。因為我們顯然一直在與穆迪進行密切對話，我們希望在他們看到 2025 年全年業績後，在 2026 年初消除負面展望。

And then in terms of PFAS settlement dollars coming in and being helpful from a cash perspective, you'll see when we file the Q on Monday next week, you'll see that we received just about $7.1 million in PFAS proceeds from those lawsuits already, and we expect a number this year that's kind of in the $45 million, $46 million range in total.

然後就 PFAS 和解金的到帳和從現金角度的幫助而言，您會看到，當我們下週一提交 Q 時，您會看到我們已經從這些訴訟中獲得了大約 710 萬美元的 PFAS 收益，我們預計今年的數字總計在 4500 萬美元到 4600 萬美元之間。

Got it. All right. Excellent. Thank you, appreciate that. You know what? I'll leave it there. I'll let others have questions. But thank you, and nicely done. Good luck in Texas here.

知道了。好的。出色的。謝謝，非常感謝。你知道嗎？我就把它留在那裡。我會讓其他人提問。但還是謝謝你，做得很好。祝你在德克薩斯州好運。

Thanks, Julien.

謝謝，朱利安。

Ryan Connors, Northcoast Research.

瑞安康納斯（Ryan Connors），Northcoast Research。

Hey, Ryan.

嘿，瑞安。

Good morning.

早安.

Good morning, Ryan.

早安，瑞安。

So a couple of big-picture questions on Pennsylvania and then a housekeeping for you, Dan. So I know you're out of rates in Pennsylvania at the moment, but obviously, we have the new consumer advocate there. And I assume your team watches other matters going on really closely. So curious whether you've gotten -- been able to get any feel for the approach that he's going to take and how that will differ from the prior consumer advocate.

所以丹，我問你幾個關於賓州的大問題，然後給你一些日常事務。所以我知道賓州目前的利率已經超出了標準，但顯然，我們在那裡有新的消費者權益倡導者。我認為您的團隊正在密切關注其他正在發生的事情。所以我很好奇您是否已經了解他將採取的方法以及該方法與先前的消費者權益倡導者有何不同。

And then secondly, I've been hearing some chatter about the Office of Small Business Advocate being tougher to get to the settlement table on various matters and maybe being the next fly in the ointment, if you will. So I wonder if you had any perspective on that as well.

其次，我聽到一些傳言說，小企業倡議辦公室在各種議題上越來越難以達成和解，如果你願意的話，這可能是下一個美中不足的地方。所以我想知道您是否對此也有看法。

Yes. Listen, I think our engagement with Darryl Lawrence and the OCA has been very positive. And I would expect that Darryl and his team will continue to do their job as advocates for the customers, and we'll do our job. But I do think that there is maybe an enhanced desire in that group to figure things out, put this puzzle together in a way that's constructive and that all parties feel like they've come out of it with a win, if you will, or at least not with a loss. And so I do expect a more constructive relationship there at the OCA, and that's been our observation so far.

是的。聽著，我認為我們與達裡爾勞倫斯和 OCA 的合作非常積極。我希望 Darryl 和他的團隊能夠繼續做好客戶的維護工作，我們也會做好我們的工作。但我確實認為，這個群體中可能有一種更強烈的願望去解決問題，以一種建設性的方式把這個難題拼湊起來，並且各方都感覺他們已經從中獲得了勝利，或者至少沒有失敗。因此我確實期望 OCA 內部能夠建立更具建設性的關係，這也是我們目前的觀察。

Listen, the small business advocate, she has a role as well, and these are statutory parties, and they've got their priorities. I would say this, the advocate has been very open to conversations. She's visited us here at the company in Brynmawr, and she has been open to conversation on all the topics. So listen, I'm hopeful that we can have constructive relationships with all the advocates, and that's been our experience so far.

聽著，小企業倡導者，她也扮演著一個角色，這些都是法定政黨，他們有自己的優先事項。我想說的是，倡導者一直非常樂於對話。她來過我們位於布林馬爾的公司，並且願意與我們討論所有主題。所以聽著，我希望我們能夠與所有倡導者建立建設性的關係，這就是我們迄今為止的經驗。

Great. That's very helpful color. Thank you, Chris. And then secondly, on the fair market value front, I've been hearing that there are some municipal sellers out there holding out for a price above the reasonable review ratio that was set in the reform to FMV in Pennsylvania. And I guess the reasoning is that the PUC does have the ability to approve something above that level on a case-by-case basis. Is that something you've seen? And would you be willing to go take that risk over the cap, or would you just be staying kind of at or below the RRR?

偉大的。這是非常有用的顏色。謝謝你，克里斯。其次，在公平市場價值方面，我聽說有些市政賣家堅持要求高於賓州公平市場價值改革中設定的合理審查比率的價格。我猜想原因在於公共事業委員會確實有能力根據具體情況批准高於該水準的事項。你看過這樣的事嗎？您是否願意承擔超過上限的風險，還是僅僅維持 RRR 水平或低於 RRR 水平？

Yes. I can't say that we've seen that yet. But I will say that on occasion, we might pay more than the RRR if we thought that, for example, there was huge rate base growth and we could grow into it. I'd like to think that the RRR is a target for both seller and buyer given impact on rates, right? And I think that was the Chairman and the commission's primary goal here was to minimize impact on rates from transactions. And we're big believers that that's important. And so I'm not saying it would never happen, but we'd like to see both buyer and seller be closer to that RRR than above it.

是的。我不能說我們已經看到了這一點。但我想說的是，有時，如果我們認為利率基數大幅成長，我們可以適應，我們支付的利率可能會高於存款準備率。我認為，考慮到利率的影響，RRR 是賣方和買方的目標，對嗎？我認為這是主席和委員會的主要目標，即盡量減少交易對利率的影響。我們堅信這一點很重要。因此，我並不是說這種情況永遠不會發生，但我們希望看到買家和賣家都更接近 RRR，而不是高於它。

Got it, okay. Very helpful. And then Dan, yes, just on the tax rate, it really continues to kind of jump around, and at least for us, found it very difficult to model. So any perspective you can give us on where -- how we should think about the landing zone there, not only for the balance of '25, but even into next year? What's your advice here on trying to model that tax line, because it really seems to be kind of a random spin?

明白了，好的。非常有幫助。然後丹，是的，僅就稅率而言，它確實繼續上下波動，至少對我們來說，發現很難建模。那麼，您能否給我們任何觀點，告訴我們應該如何考慮那裡的著陸區，不僅是 25 年的平衡，甚至到明年？您對嘗試模擬該稅線有什麼建議，因為它似乎真的是一種隨機旋轉？

Yes, so the way I think about that is for the full of 2025, think of a low single-digit benefit. And then for the whole of 2026, at this point, of course, we haven't finished our budget or plan. But I think of that as a low single-digit expense. So think of a crossover from -- at year-end from small benefit this year to small expense next year.

是的，所以我的想法是，到 2025 年，我們的收益將只有較低的個位數。至於整個 2026 年，當然，目前我們還沒有完成預算或計劃。但我認為這只是一筆較低的個位數開支。因此，想像一下從年底的交叉——從今年的小收益到明年的小支出。

Got it. That's exactly what we were looking for. Thank you very much. Thanks, guys.

知道了。這正是我們所尋找的。非常感謝。謝謝大家。

Yes, for sure.

是的，當然。

Thank you.

謝謝。

(Operator Instructions) Davis Sunderland, Baird.

（操作員指示）戴維斯桑德蘭，貝爾德。

Hey, Davis.

嘿，戴維斯。

Good morning, Davis.

早安，戴維斯。

Good morning, Chris. Good morning, Dan. Good morning, Colleen. Thank you for the time. Happy Friday. Two questions for me. Maybe first, just jumping back, Chris, to your comments about the hyperscalers, and obviously, a lot of activity going on in Pennsylvania right now. Could you maybe just talk a bit more about the potential opportunity here and specifically the timeline for ultimately folding some of these into rate base? I just -- I guess I'm trying to square the stable customer count through '27 makes me think maybe beyond that would be the opportunity, but just wanted to clarify some of the thoughts there. And then I have one more.

早上好，克里斯。早上好，丹。早安，科琳。感謝您抽出時間。星期五快樂。我有兩個問題。首先，克里斯，讓我們回到你對超大規模企業的評論，顯然，賓州目前正在進行許多活動。您能否再多談談這裡的潛在機會，特別是最終將其中一些納入利率基礎的時間表？我只是——我想我正在嘗試將 27 年的穩定客戶數量計算出來，這讓我認為也許在那之後還會有機會，但我只是想澄清一些想法。然後我還有一個。

Yes. I think, listen, most of the hyperscalers that are talking are talking about really short-term turnaround. They want to build and get in service. And as I said, I think Pennsylvania is a prime location for that, particularly Western Pennsylvania, where there was low-cost energy. I have to be careful in what I say. There are some NDAs in place, and I can't really talk much about the opportunities we're engaged with right now. But I will say quick turnaround. And I would also just maybe position it to think about, as you think about these things, maybe not all rate base or all regulated, but some unregulated opportunities as well.

是的。我認為，聽著，大多數超大規模企業談論的都是短期扭虧為盈。他們想要建造並投入使用。正如我所說，我認為賓州是實現這一目標的最佳地點，特別是賓州西部，那裡有低成本的能源。我必須小心說話。目前存在一些保密協議，我無法談論太多我們目前所從事的機會。但我會說快速轉變。而且我可能還會把它定位為思考，當你思考這些事情時，也許不是所有的利率基礎或所有受監管的機會，但也有一些不受監管的機會。

That is super helpful. Thank you for that. And then maybe second one, Colleen, I appreciate the comments on PFAS. Thank you for that. Maybe just wanted to ask about this potential EPA pushout, and the rule maybe coming out later this fall. I would assume no change to how you guys are thinking about it and plowing ahead with the upgrades, but maybe just more about what you're thinking munis might do. Is this any change in maybe the acquisition pipeline, if there's maybe a pushout in some opportunities related to that, or any thoughts? Thanks, guys.

這非常有幫助。謝謝你。然後也許是第二個，科琳，我很感謝你對 PFAS 的評論。謝謝你。也許只是想詢問一下 EPA 的這個潛在推遲，以及該規則可能會在今年秋天晚些時候出台。我認為你們對此的看法和推進升級的方式不會改變，但也許只是你們對市政債券可能採取的行動有了更多的了解。這是否會對收購管道產生任何變化，是否會對與此相關的一些機會產生影響，或有什麼想法？謝謝大家。

Yes. Thanks for the question. And as I said in my comments, there's no change to our program at all. We're full steam ahead. I do think really in terms of the acquisition and the growth opportunities, there's no change there either. Most municipalities are going to wait to the last possible minute. They're just starting monitoring. And so they'll -- this gives them a little bit more time to keep their head in the sand, but the opportunities are going to be there. And like I said, with our position, with the amount of experience we have, with systems operating well, we're going to be really well positioned to help them.

是的。謝謝你的提問。正如我在評論中所說，我們的計劃根本沒有任何改變。我們全速前進。我確實認為，就收購和成長機會而言，也沒有任何變化。大多數市政當局都會等到最後一刻。他們剛開始監控。所以他們會——這會給他們更多的時間來逃避現實，但機會仍然存在。正如我所說的，憑藉我們的地位、豐富的經驗以及良好的系統運行，我們能夠很好地幫助他們。

And Colleen, if you think about it, yes, they might have a couple of more years to comply. But given the fact that we have a resource, a solution, maybe we can help accelerate some of those solutions with our filtration system. And who knows? Maybe that starts some conversation, which would be great.

科琳，如果你仔細想想，是的，他們可能還有幾年的時間來遵守規定。但鑑於我們擁有資源和解決方案，也許我們可以透過過濾系統來幫助加速其中的一些解決方案。誰知道呢？也許這會引發一些對話，那就太好了。

Yes. And when I was at the American Water Works annual conference this year, generating a lot of interest, a lot coming up to me, the engineers coming up to me, asking about it. And as they, like I said, get their heads out of the sand and know they have to comply, I know our solution is going to be a great fit.

是的。當我參加今年的美國水務年會時，引起了許多人的興趣，很多人來找我，工程師也來找我詢問這件事。正如我所說，當他們意識到自己必須遵守規定時，我知道我們的解決方案將非常適合。

This is great. Thank you both. Appreciate the time, guys.

這太棒了。謝謝你們兩位。感謝你們的時間，夥計們。

Take care.

小心。

That concludes the question-and-answer session. I would like to turn the call back over to Chris Franklin for closing remarks.

問答環節到此結束。我想將電話轉回給克里斯·富蘭克林，請他做最後發言。

Thanks, folks. Appreciate you joining us today. As always, the team is ready to answer questions or follow ups if you have them. Thanks so much. Have a great weekend.

謝謝大家。感謝您今天加入我們。像往常一樣，如果您有任何問題，團隊隨時準備回答或跟進。非常感謝。祝你周末愉快。

Ladies and gentlemen, that concludes today's call. Thank you all for joining, and you may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入，現在可以斷開連線了。