Essential Utilities (WTRG) 7 May 202020 Q1 Earnings call transcript

Good day everyone and welcome to the Essential Utilities' Q1 2020 Earnings Conference Call.

As a reminder, today's conference is being recorded.

At this time, I would like to turn the conference over to Mr. Brian Dingerdissen. Please go ahead, sir.

good and Melinda, you, morning, everyone. Thank for America's first you joining us Aqua formerly Utilities' Essential quarter for Thank XXXX call. earnings Investor Brian am and Dingerdissen, President, Relations of Chief and I Communications. of Vice Head Staff,

can website event not and did site. a be on Investor of release, visiting a If can The found find of slides the you by our receive it section referencing this also essential.co. the be webcast copy press of you at Relations will the we

the discussed that any uncertainties to a and XX-K, during our of the may some by forward-looking statements filings risk, different SEC call future other results reminder, involve include or to implied most risks and such a As recent from of matters expressed be description for such materially actual may forward-looking XX-Q, this results refer and that statements. factors other cause uncertainties. Please

During non-GAAP Relations is presentation, for the non-GAAP presentation open call, the A certain will their of Investor end posted measures. reconciliation and website. After may company's up GAAP of we to the made the also to questions. in reference be course call at the of the of section financial these financial the included measures

followed by including update our CFO, who with our financial and Chris our Our year-to-date, an call will at activity. Fox, results start the Chairman will and highlights provide update will will our Franklin, actions. on Rick Schuller, our discuss be Operating COVID-XX Dan CEO, financing an Peoples. discuss then and the from the company's operations, will Officer, recent Chief our on provide who Dan

open call review for will our up Franklin conclude with Chris the XXXX guidance a and the Finally, questions. call

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

of introduced the parent we everyone. regulatory of the eventful name, very quarter any be we Hey that Nobody a and to had approval I chose then, would to Essential. strong year. let's a good January start had a would And it. in. morning with new have Peoples start final and the in appropriate Then back We don't But that strong our an think symbol first and WTRG. that us predicted. company I'll ticker just end thanks right start in name how we when transaction, Pennsylvania transaction the close changed Brian new

quickly begin that, repair using to with at after And in with IRS we Pennsylvania. followed the the filing tax up Peoples a

for municipal ever also the We our Pennsylvania approval application transaction, we've filed Public Commission the transaction with largest DELCORA the Utility of done.

by to react our Then before business activating we pandemic continuity COVID-XX to plan. ended, the had the quarter

course, Our the the employees, of we customers, primary to Essential and health safety communities and objective was, of our ensure preserve serve. our and the

for has excuse the brighter You'll have over have minute shone dedication about eight past to our Their never to a employees. me, has Essential our but I mission it than weeks. to brag

Our wastewater that gas on. natural people depend continued have to service and our provide high-quality water, customers

have and continued personal people I'm our our the proud Many out own despite the children and to school, challenges neighbors, done, team. their get about caring as of have very their challenges, these But for members family health. same people Essential concerns of job our of

first pre-closing. spent improve a $XXX million, the this year, I'll water invested that million million segment. Of at in number and by Since the note the we take serve. regulated highlights. million the the was we quarter in invested capital of quarter that our communities Let's Peoples beginning $XX.X in look $XXX.X the includes to $XXX.X that first was infrastructure

first over box in share quarter. In the text the box per you'll that XXX.X% last adjusted on see over, a basis, income next non-GAAP year's rose

the from on a give Dan that in going more detail you of that of moments. just is most Peoples. resulted course, few Of acquisition to

a in of base, more year strong about rate customers. $XXX list that another And expected review of in for signed than I'll track on new over which well. remain million acquisitions, acquisitions. talk includes moment XXX,XXX We as municipal our I'll

And from and finally, March completion of you the Canada as many Investment of investment the XXth. $XXX know, acquisition CPPIB, the Board, Plan of Pension the the we Peoples closing announced of on million

addition, the and Wendy addition is we've Franks upon And financing acquisition, Board CPPIB added of now In our the the Wendy with of closing Board women. the from Directors. our XX% to of -- of Franks,

you think items Shareholders, chance, is encourage on we should also and it. according try policies. Annual management's and report to were it's if our I haven't lot Yesterday voted read, had of all easier revamped that In our I'm a Meeting We to to pleased note provided to of this our recommendations. the was to I updates that ballot year, the review and significant a to do various so. I proxy, disclosures -- and you

this all know fair market and is to At noted and as discussion. been recall is of states the key legislation water wastewater a value offer had already market indicates states as companies, value. operations, seven our Day, did the this the important fair Investor of we that had fair where This point, leaders; where a we market solution you'll implemented had value of eight you always map we legislation passed, at how -- our part municipal we where

report been Virginia. to eighth state, which passed happy legislation is that now I'm in has this And the

states fair we in all So, serve great where now This is eight value available water is market news. currently customers.

a robust after based develop to of pipeline typically takes fair opportunities of Now, our get experience, market to value years legislation. pass on the a we couple it

on completed example, and Texas. Ohio, So slide. we're for to which we is this see starting the Campbell like materialize acquisition states next here in in recently of the municipal Ohio And

regulated segment. water slide This for acquisitions represents our

and this continue to major Norriton in delays we in East and those to longer. in time, far home, proceedings increase but could longer the move don't closed could Ohio, the little crisis, DELCORA, the likelihood works this take be process, due Campbell could a regulatory year, delays closing Garden, the At -- Pennsylvania. everybody of we've COVID-XX New toward So all and expect from

COVID-XX regulatory can our activities during we our as up crisis, track. ramped Now, this communications keep together best so to on work regulators we've with can we

partner that wastewater see solutions municipal projects, to a other the of their focus we fair and their so crisis, with and their financial from now the acquisitions And municipal to passage many strategy, in can for programs looking on on continue the laws. are can problems. especially to stand ready vital And our community issues. water will and pressures utilities, these focus market cities and economic given we towns they their are on with undoubtedly anticipating We be arising value we of COVID-XX municipalities pipeline that strong more that

that's next response that the think to good discusses COVID-XX a segue crisis. I our slide to the

a of business I As jobs done. Within working work-from-home home. one-third days, activated XX, we nearly our employees work policy mentioned, from plan for our could and of any had from their get actually immediately we on implemented our who March home their continuity and workforce

The was the same work to natural the to that the to from we transaction. really on same home Peoples challenging decision day, sent that XX, That's send day closed gas transaction. right, home the very we closed Peoples work. employees And we March employees on

was was, the As you, I at tell now difficult that hindsight, decision it right as decision. will

the Three those for have the So fourth are at be positively far, virus. already only employees soon. of four tested will of our we're safely work, back employees back hoping and

up-to-date silver accelerated It a development will between to a and say crisis. Aqua of also adapt We've the state enhanced our mid-March, stronger lining procedures organizations, we keep the I we've and there's this really the federal with to safety Since altered guidance. Peoples, and truly Now and information. to many company regulators for of COVID and it. to our our latest relationships employees health are customers two and communications our

weekly hall employees this to have impressed meetings. Each participate effort, all live, with in part the as participated town X,XXX week, invited And of engagement. really employees we've nearly

commissions we the from held the where with of operate. virtual we utility representatives each states from Lastly, meetings public

meetings, the say, we meetings of both I to of officials, company's staff response. updated and the the these constructive. And the and have impact very all commissioners, on were on the company COVID-XX the During

very our still plan more work employees from slowly are time, So at to home, working point a practices. but one-third return soften we to this states as normal implement thoughtful in nearly begin to restrictions, expect to of

over turn update Dan? With financial Dan to that, going to results. you I'm on the it to

you, Good everyone. morning, Thank Chris.

for recently acquired First, The the up the ended the contributed natural financials remainder to quarter. the We quarter water reviewing the $XXX.X segment. million gas regulated XX.X%. million, first of was due utility rate $XX.X growth, with in of while revenues increases largely revenue this

we Peoples GAAP of March result operating results a closing XX, in the our acquisition reporting are date since on As numbers. Peoples

the regulated EPS year-over-year increase Net million GAAP expenses, to up million in from up gas increased last in O&M $XXX.X from transaction-related segment, XX.X% up the $XX.X sorry, $XX.X Peoples up of a addition XXX% year. EPS first quarter, income the XXX.X%. And of and million. result to was -- O&M an $XX.X was This GAAP was primarily expenses. natural million

As discussed at an demonstrate results includes really metric earnings the power we're going for in non-GAAP forward. income, adjusted the Investor pro February, of to our we for This providing Day XXXX and if continue guidance, the power the company, financial providing Peoples measure forma Peoples, company as in legacy quarter. with company earnings first best year compares owned for terms full throughout and results. believe we'd the combined of normalized this the both We'll a Aqua it

include result the XXX.X%, share in exclude the full and guidance Peoples-related to This $X.XX $X.XX Looking forma up XX. to adjustment lines, was and operating expenses was of share for up per for at adjusted we per $X.XX. to the the with pro March share for results of that $X.XX adjusted income aligns provided from year. per the income transaction and shows Peoples income This adjusted pro income X January February forma income period adjusted which

We presentation. did capital a financials, and QX of some collections we're not in monitoring number of including our consumption see discuss later and COVID-XX of but closely which on expenditures, we'll the billing, an metrics, impact

per share considering as-converted shares XX.X pipe, to share quarter basis, price In GAAP EPS the income XXX both count, and nearly terms the the reflects at on the share CPPIB million adjusted based are on the TEUs the which for end. million approximately issued plus shares, of an

Next, surcharges the water slides, segment, $XX.X roughly to see through with million $XX QX, our we'll revenue. natural increase. related and main that starting revenue gas walk were the increase over waterfall providing for segment, revenue the new the million you'll of rates following in details our from drivers, and down XX.X% revenue Breaking

the the segment down million, quarter. added Regulated growth Remember, during XX-day this was our by period is $X.X was which $X.X almost about water offset million. an additional of volume, ownership gas revenue for which

$XX.X in a the in increase in O&M $X.X Peoples Next, on transaction The the waterfall same million we'll the reporting have and been will discuss On ownership. biggest $XX.X if million that. Peoples XX-Q, The expenses year-over-year, of transaction. slide XX. flat system basis, not million weeks for file O&M expect drivers costs tomorrow, the the O&M the the increase O&M which two expenses we the of would Peoples about segment were clarify for to in

the quarter some $X.XX, in the include impact Day, which costs, Investor an spend for the at adjusted was and to waterfall. $X.XX time interest XXXX share the of transaction this the we'll adjusting but swap, QX for XXXX adjusted GAAP presentation of Next, the Peoples Similar basis first XXXX. EPS slide brought both mark-to-market us and rate we out on figures showed earnings XXXX. between on per GAAP to bridges the

share. an and volume additional For adding share for adjusted XXXX, biggest other, and $X.XX us were acquisition almost quarter Peoples slightly for These rates the of offset the growth by bringing and the from to the first surcharges XXXX. per income QX contributors, per primarily $X.XX were

GAAP $X.XX is Peoples-related for $X.XX right. almost and January between to period transaction March quarter pro for first adjustment The the $X.XX of the the the expenses on forma related of X resulting of operating XX, in then results by of and impacted $X.XX Continuing Peoples to XXXX. that negatively EPS

XXX,XXX total deduction mentioned. Peoples PNG, March, be for as the purposes. company accounting company This tax gas our for our largest impact or capitalized with to investments formerly This late natural regulations. statements. for the provides a tax Natural for our of that were change qualifying gas connections. We permitted about using change financial flow-through repair that infrastructure In the XXX,XXX is repair the IRS is method on tax reflected Gas elected allowing adopted benefit, The Chris accounting tax subsidiary under

more should quarter its of of reduced income million ongoing time benefiting election impact. tax PNG's tax providing shareholders. infrastructure community first for $X.X customers terms repair and investment customers, by expense mitigate increases. This cases rate program, In the support change It the tax should The benefit future by between XXXX. also and accounting rate

treat Day, asking guidance as the at how to Pennsylvania of on from to Essential's summer for Peoples. invested capital been repair-eligible that be prior PUC had Also, results catch-up this that deduction discussed ownership Investor the we'll the

are fairly April, however, normal winter note with heating first for I'll the Please X,XXX versus pro quarter X,XXX in that results currently degree quarter Virginia. degree normal winter Pennsylvania forma does for degree Lastly, the days a in West X,XXX in more days. to you degree compared mild, Pittsburgh mind was heating Peoples, as was XXX colder that keep than similar with year's recall, the heating days days, last with with normalized XXX. or a to normalization not X,XXX heating days. may have weather first

Carolina, in water In annualized activity. our regulated Kentucky we North and Virginia, XXXX far, surcharge with in total Pennsylvania Moving cases we've of natural filings In and revenue so gas have completed million. $X.X segment to regulated surcharges on completed revenue totaling Ohio rate or annualized of our for Illinois, $XXX,XXX. segment, rate

in the or year, surcharges receive new have rates pending regulated gas this expect segment. months, for New Jersey, and our we rates In point we At the water natural coming base for not or do in our segment. to base Ohio North any Carolina surcharges Indiana,

early and normally few possible a ensure to were disclosed minutes business the capital capital adequate as investment last operate In month which we the wanted and our to so. we financing Let's in days markets spend over facing on liquidity to the that activities, maintain the as and economic or continue uncertain we COVID-XX, had conditions of were program. X-Ks

fellow bank members group. loan and million well-capitalized utilities, $XXX like secured our the of put of case our we XXX-day So, deposit many a term proceeds, in with our on

loan which the In of billion had a of rate and a in to the stabilized once offering, notes. had PNG priced a $XXX weighted with place long-term put average term tenor completed paid weighted was interest And off February with public those narrowed, investment-grade X.XX% in debt we attractively April, credit million $X.X and maturing markets years. average XX.X proceeds, we was that cover credit spreads

the the million facility paid loan $XXX paid off credit also in We concurrent less Essential billion of place down Essential finally, a closing. we than to put Peoples And term the $X $XX with million. balance revolving

on will tenor of Pennsylvania a weighted X. of The first pay the public mortgage This off of offering, million offering average we weighted after short-term used bonds, Just which debt to fund closed XX.X a three-tranche priced and $XXX has these a proceeds Aqua years. pending coupon borrowings bonds X.XX% May be to and average of were used acquisition.

As X and off that we $XXX the had of With right the anticipate then, COVID-XX paying on week. to and million And of based the down $XXX activity. progression to will time company financings, pay next determine capacity collection various million facilities. considering May credit the Essentials' remainder the cash of we on borrow billion after these effects term to of respect loan, $X.X revenue

appropriate equity capitalize necessary equity, finally, from to $XXX equity we'll million may year. That you markets DELCORA acquisitions later approximately appropriately pipeline. this the in the issue And to look the recall recover, for of time and Day Investor then is as other as

illustrating bases. this the class for and of light questions consumption XXXX. customer about impacts debt, COVID-XX and customers our In revenue added number gas on questions, and slide, potential its by these water we we've address year receiving been To customer of and both full bad

largely can businesses. utilities of see, our you As both are residential

a businesses. the it, shuttering as more and seeing stay-at-home process on business it point, impact don't long gain of residential classes, non-essential data, in of as our we'll depends commercial, usage have expect and in given public water is increased course, decreased At expected customer we financials, industrial move April of material the insight into still but in this place. While remain the that we are in shutdowns And impact orders this we're and we limited how and forward. on evaluating consumption

is in and there be minimal. to past also expected in heating the impact we're in the already that thus business, mind the Keep season main mind, the -- over summer that gas keep

we're bad things arrangements situation. the As and you can the reconnections and like at patterns imagine, collections debt expenses. payment customer given COVID-XX analyzing and We're usage closely looking watching

As states of may debt most you we low. in our have been decoupling has our not bad do recall, quite and historically

been and that's those Aqua, X.X%; about recovered for So X%. Peoples, for been And about have largely in levels rates.

states, it's to the to levels levels gas increase, across we shutoffs on expect our unemployment water and Given and but the by difficult say how much. those moratoria shutoffs

X.X% comparison to this experienced While relative XXXX. we've XXXX, Aqua rose to recession only the is what for in unique debt bad before, a

to continue cleaning PP&E those for costs, to of masks we expenses time track these expenses but roles. Think certain relatively reconnection now pandemic, appear like immaterial. the and of be things Additionally, to other over as related as expenses,

for So regulatory we're the recovery tracking through potential those process.

we like that activities And being from as you expect, those. have savings business help to might travel, offset seen are some not performed,

of public utilities Some COVID-XX to our of And segue a issuing to expenses, defer guidance. future good some that in we're to about are seeking of anticipation in COVID-XX. and impact guidance the for speak evaluating proceedings, that's responses Rick rate for currently recovery commissions Fox utility

to that, you. with it Rick, And hand I'll over

update completed Well, business that Today, two to on COVID-XX; safety Dan, important our and like of first, response party. our updates: good on third a operations thanks, review and was I'd to our provide by everyone. the second, morning, recently an gas

routinely water this processes important me inactivate less treats. this. much to I really resistant treatment topics, as before that and But It note Aqua with other to COVID-XX, let than our is treatment and pathogens start virus removed get into is those that the wastewater

to COVID. on Now

COVID-XX, some details. Let but additional will efforts share me on summarize I our overall

they our exceptionally that well. essential. do is we And have and recognized that, as performed First, work employees utility, a the

measures customer have preventative might expect, As company. the taken ensure employee we to safety you across and

We the masks, of done. work new and than can safely And, this home, adjusted work minimizing distancing. office; you necessary see one protective starting per it ensure using and practices we rather limited On interaction be shields. some equipment slide, done can from employee provided what of social to the utilized examples course, by face We have gloves we as gatherings; vehicle. worker personal that and such

our None Chris indicated, of with employees out together. four only positive COVID-XX. have employees tested As of these X,XXX work

our continue deeply and employees about unlikely. help and -- infected. care more proactive help prevent to families, at-company and from We so becoming And measures employees our believe transmission and these we is

Turning to the next slide.

see You what could types work not crisis COVID-XX subsides. until can that reviewed the of we after be deferred

failing On our side, collect of in customers emergencies to conducted And to are any and is in ensuring samples adjustments customer the been with some work our employees. to work homes or has aging businesses closed while but water or handled some our compliance infrastructure All routine safety ability continues. the serve replace construction being maintained, challenging.

situation safe. gas to the with On All and critical side, normal. And leak equipment but is handled employees are some the gas as surveys keep adjustments customers continue normally, emergencies inspections our and similar. operating procedures of to

gas up a work. is both only in water, commitments of and period for when we rate budget. have for we capital did We and meet on behind that in project our And capital million Lastly, there rest about on about estimate our $XX Pennsylvania two financial work expect moratorium base. are nearly a weeks to this $X of our the infrastructure year, in replacement track and the to billion projections on stay we during catch

our that, slide update to turn pipeline safety on provide With to initiative. let's the an next gas

Black industry-best review an pipeline pressure modified provide and February, unaccounted-for the Utilities Day This of delivered a examination detailed integrity and As industry review in Veatch, to its Peoples' and overpressure management and Investor of engaged programs, independent leader in discussed and requested a mitigation mitigation & practices safety risk existing of gas at programs. leak exposure. included Peoples an Essential reviews,

provides management of happy mitigation May review existing resulted of say and as that well this programs. various I'm was validation recommendations gas mitigation for leak results unaccounted-for that also It report just The protection Peoples' the issued & steps, Veatch to a very measures. additional Black as in its a X. report solid overpressure provide on

preparing These placement include to additional the station pressure-sensing installation a low-pressure pressure-releasing strategic existing ranking recommendations. of prioritize service the use results for of report of of modeling an GPS to implementation adoption model plan these evaluating of systems locate lines. of action equipment; for finally, regulating mapping upgrades; of additional the a Peoples currently systems; project and precisely is risk hydraulic this and

hand Now I it will Franklin. back Chris over to

thanks to and new on for on is Rick, news Peoples' which us, you, good safety. that really update Thank the report

from closing, first cover of quarter. I a wanted to Now couple just the learnings in

customers warmth and I recognize think of there's that fair comforts like the First, I've provides to our from and their during that witnessed them bathing the the could expertise say company experience I company the no simple this homes. every commitment At We the knowledge, that substitute true services essential to wish it's to this, like the mission. in for our Essential allows times dedication cooking that and challenging crisis. at mission employees

major transaction of successfully can you a close pandemic. a in the Second, middle

could events on. operating While immediately the cleaning together to have and from policies, go IT integration our companies. team like recommend the pandemic to it, of policies, operating I actually policies, It and the on I policies create two don't accelerated the standard working begin forced resulting

results for combined lies signal company. overall the have the ahead impressive I far, been So believe, success and, though the that

water and managers third met From X and were communicating is critical response, began work finally, to the we the top at to every home, ensure single issues. And from utilities across communication day gas the we first evening XX coordinate and critical. on PM. the

longer calls communications and daily, exist as regular salient issues the continue address we strong arise. no any that While

took during our and and my reflected on this of important work we've weekly the time, work we feedback our communities respect with as years And to video we meetings to our via And and has base, many this our employee technology values we our our people continue customers, actions of staple I'm Steady do, that the loop, from core time, to us our proud an townhall can look it's provided be to to other. and now, new back keep this we proud communication excellence and continues work. with commitment strong regulators to our very probably a environment. company adjust our each be healthy. integrity, that, of clearly hope that with as done

As that still investors, excited committed and know best we remain please our that and about strategy, confident days lie ahead. Essential's we're

in in Day Now I for deliver is at will we allow XXXX the in want guidance information year. continue confidence us closing. we to our to reiterate the Recognizing results that strength provided February. Investor pandemic the still that strong company's unfolding, resulting believe from to the the

We of to X%, shareholder income should growth to to X%, a That along with share lead yield our forma expect $X.XX pro return about $X.XX with of adjusted basis. dividend earnings X%, on of for our to which pretty good to per X% is profile. X% be about utility

on ownership. includes and investments track approximately spend approximately mentioned, water capital $XXX which of million the We prior quarter regulated million previously segment gas natural first our infrastructure on to remain $XXX also the on regulated during as to XXXX segment, invested

to approximately platform across gas regulated we rate billion X% XX%. X% of base and growth Essential XXXX, natural the We segment of in regulated will to our our drive water anticipate growth expect segment rate base investing which drive in $X.X X%, through

we expect and on X% to growth average water regulated annual X% in segment. water be for Lastly, between our customer

line the questions. open let's for with And that,

we'll Instructions] go Boenning Connors first Ryan to & And Scattergood. [Operator of

taking for questions. Thanks my Great.

exception state, little actually through in rate to in pending slide mean the information every rate a on down are the with either wanted rate with already or pipeline looks Texas. bit, activity the action -- pipeline. looking recently in you've it maybe a been there, drill like I So of I

optics obviously the rate case. a now I aren't great right be file to having So mean to

long So other can you'd getting is getting you -- Is just -- to the the there what's where in place any the in Texas? -- have there that talk cycle in? you're tooth go situation about anywhere is

lot despite anticipate the in Ryan. but North delays any And heard -- a home, we continue Let's have start working We're right? process. that with of Carolina. lengthy we Carolina, not are people or still in And discussions from --

Dan, the And others? in-flight about so you talk currently. that's of to the ones one want

Yes.

pinpointed a Ryan, in time. the you say time future not-too-distant of for see kind I capital drive a filing of case that of in we And Texas. rate we base period I think, where been would obviously and the And longest we've will out we one growth that in continue the be to sort do rate where Texas.

moment, need we As in one of couple this but coming foresee the years. don't of one,

Okay.

in So it's not imminent or months. necessarily weeks

Okay.

That's fair.

Okay.

in DSIC, the is part rate base of obviously. Now DSIC. of terms not

off about in for pull to stress." while, easier argue, surcharges? Has maybe been are let's someone facing sort to So states there rate "Hey, the any payers that talk of are temporarily for a things while -- of any that DSIC repeal

None that I'm aware of, Ryan.

the do using are people consumption bad what any improvement in debt like. look are what then heard -- the issues, constraints Ultimately, due the to system not the I think unemployment see point. pullbacks have this and expense everybody I've is and but what what might to at distribution charge scrambling rates --

comment local Obviously, seeing future? a that those do the worked line? of number opportunities more there. pretty that always to started Have governments budget you a Or goal that the that the of be just being -- one in you your some towards that? is more with definitely on. the and Then you've pressures of is already more are good got to going that are could deals I of presumably accelerate think Okay. some agree With -- acquisition said, on is what see timing

last on majority focused say went from lot of office we've one-third the through the I given pipeline in people say eight No. working active. and been I'll of tell has you, time and been us least still the of acquisition the our been meeting Board after here, the shareholder growth home, met what's I would yesterday weeks since activity. for a the the at would we

about So that of be in the continue. can say, we've meetings meetings, I a here. a lot and talk advanced of discussions public would things hopefully, although group there term number And near can't we

activity been say too, that on working seeing that had we're to larger they the continue would past. opportunities and we're are I be the than Ryan, in

up what are think result others -- municipals will are I bubble COVID, see -- that under. crunch constraints people So be longer-term of a immediate that issues probably as will the is but that you'll some of because the these come some of from financial

Got it.

out situation, of Pennsylvania to the pulling relative energy more to mean And in then the it but item. this smaller much Okay. asset news the one But what's item announced. that of just obviously pipeline I than week it's Shell I size environment? JV, mean used had last, outlook a energy this housekeeping obviously line a be, they of price we the price for company.

you little looking bit Yes, it's item that Yes. strategic respect That Investor pipeline about That's there's someone with that demand considering for to saw we talked operating us. that. for it since one, at something when the options we're that Day. we line have we're water is for Ryan, that continue small and a to though it

that change make best the looking place are us. there and to asset. probably That's a sell We to

million years number. news We books million about our on It's a $X good something Ryan, books. eaten not low book, ago. on for is a wrote the it's fairly it $X our down that, our number And like of Yes. on today. our It's bread

So bread. it's really not any eaten

for look we – not our hurt owner, it's really hurting numbers. as So potential new

sold terms have seeing XXXX, it, XXXX, just we relative for it of couple of Ryan, strong really been in; to And what been XXXX. call had the volume years, last in

time. hey, thanks Got for it. Well, your

Absolutely.

Morningstar. next, hear from we'll And Miller of Travis

Thank morning. you. Good

Good Travis. morning,

the input, I to you at pipeline quick some have had delayed where kind have of kind of get kind earlier. scenario acquisition question Are might require public a meetings there any that would public municipal canceled? the or some in of some follow-up that

is, yes. answer short The

the Authority public of through one own So this responded. been been point, a in city out bit down, have a bidders, that think it. of that it Chester were It's ones the There the a a we number for call that and of there. to city's it. have that's I'll one The believes is Chester, ones the an what who Authority. a put of own The go The messy three public little they bidders believes RFP. situation Narrowed of and I city process. will they Water at

times the meetings. wouldn't nevertheless, I activities those month, But at of a have a city expect meets couple and hearings. there been public council public

and see one that's on And things gestation that point probably call public are so certainly a it might too a always activity it. go this we'll public talk two, to others or that's may be couple some period some year process. about at So there not a of These press unusual. of a through that that are early

transactions pending any have don't we require a point, this that at referendum. And

wouldn't of we as that So type input concern. a public have

Okay.

late missed know And shutdowns, events, just and then, Okay. I usage of this then as I non-residential? but your April customer lot earlier are a if think you've type different shelter-at-home we March about got post-coronavirus the sorry what classes nonresidential. and were water levels residential of on that

said... Just think you generally, I

Yeah.

because me weather the gas about it's Let guidance little a water experienced obviously. more there. is and side what talk by you Like easier utilities, to bit give driven other we've

saw On saw residential the buildings, of schools probably pickup with you out, biggest right? in decline. think And at we consumption fall-off and – that's So public, and that really though, commercial, we side government then emptied a staying where which that's people as as industrial expected, home. see public. a water the And in

we that into be we that is came numbers really helpful water in to our But I the would occurring think actuals budget. expect just the right our show got fact, they business for in residential our pickup this And in April flash and for at offsetting numbers, April our view that declines. was April, as going

as seeing occur So are projected. that we offsetting

Okay. it, any? much of on you if any And quick, do how just decoupling then have real

don't have have we We to decoupling degree. only great any – really

really have Illinois, the in about and state it it. that's We of

Thank it. Great. you very much. Appreciate

Yeah. Travis. Thanks,

And moving on to & Richard of Palmer. Coker Verdi

Hi, volumes. on to crisis. good morning. on job on start navigating here my just for up – want Great call. the the last of this the I through company of the callers' the one Thanks COVID inquiries taking follow

but January their Electric it you your commercial a lean plants go down. it, you Liberty causing slide back look COVID – then at if quarter. industrial had you and to line X, one down. it's at know XX, was have I this about But of the think But if crisis Looking

or days. XX XX-some was it think I

have how from feel And little so how kind plant from please? talk bit I'm for more, much a Liberty been that company, if could COVID? that quarter just you of And COVID's wondering that really maybe your the at the of down impacting versus to

Well, I quarter. would say see really any first wouldn't for the first quarter, that we impact COVID-related financial on

able COVID; – talking terms where with are is year, last to of April look customer those that at capacity. one was year, as What industrial running ago various COVID. touch are differentials at a – to no There moment states we year-over-year, consumption states. in classes? point of analysis up plants the those really this seeing in see your in So we was about keep because and and we're interesting I we an still certain our are And just all

product here no in that have where products locations, their customers of real of side. our have there production Pennsylvania, water on so But and And dramatically industrial some been their impact. reduced the including thus consumption

XX, where for point excuse the you state-by-state Thank that states focusing your the smaller And a acquisition unemployment that. here, are And or kind top an at well, if the unemployment. since some okay. question that kind of you're basis, you issue on And XX, call growing of in the let's you creates Okay, of it. data okay, here. on effect took look of then, me, at COVID here, front look statistics last

could You lose connections.

rate in could extent. case You some have setback

difficulty are situation a On to creates be going quick hand, face other and the where sell. municipalities these it more, financial to

from grow case at will impact it beat say, want right? to and And so, look You in we'll two-step well, "Okay, Pennsylvania could the and approach set we rate there's connection and maybe setback back." if negative more there, a --

negative acquisitions they effect you revenue positive the future, have up those connection further say, impact. picking in by setback Or grow pursue case And you And states. loss offset then, near-term acquisitions. the could in impact a as potential in from rate let's and

through maybe COVID of going with wondering the through kind with could kind if you how of next acquisition those of think crisis. the the strategy? I'm the front, just or you year So And going talk issues bit, to strategy so a little

lot it's Yeah. digest I mean, to there. a

that, we is business do still the regulatory -- Let's are fact climate the start we in states with strong. where

we've And So, for asked example I we're shutting on have people who think, not while to sensitive. turned people we've been be very off back turned back on.

We things. our try are struggling bills. those help be to done up We've to We sensitive. programs all ramped customers that pay to their very

it. maybe so wouldn't I to the So I'll use nicely have and regulators a word, far. a see expect we stronger rate I think And in cooperated punishment cases.

we've company situation think say, balance I is in affordable, a got their the where there And keep for to bills. keep constructive desire the there's a a in got to regulatory states to strong. here. it's customers We've

So I years and expect do on next draconian, I think don't the will there regulatory to of anything in talk that balance of about long-term, there. cases sort. the we see be couple rate let's reaction, a terms

rates came gas Pennsylvania. of The and know we just is is and And rate -- of base company's state the vast good you of water. in both this news out in I the think Rich, in amount in Pennsylvania, the

strong. the there's So for keep company no go to in immediate-term need rates we're -- not to

So that's news. good

to growth, can a help really continue M&A. we're Now, relates as where think a going solution, towns for ourselves cities rather and We to -- -- we strictly, it look the about and to look really doing we be in than municipalities as just we're solution. and

if and than opportunities. we our opportunities to is as have I -- believe we'll an current believe the example, opportunities to handle have hands grow I so, list more And of

nice, I because you'll the I so, of really both, our regulator. and growth, believe a be see the a solution. And And generally, steady of that, to think need you'll see steady hand opportunity

answers question. your hope that I So

time you Be for appreciate Yeah. really I Thanks its great color. I it. truly guys. well. your appreciate that. Thank

Thank you, Richard.

hear Reeder we'll Next, Fargo. from Wells of Instructions] [Operator Jonathan

are Jonathan? How you,

how Hey there. have operations, in Virginia even Great, update, reflect, for Is Good was Peoples just good call, $X.XX and you? PA though you I gas it causes wanted adjusted that the to call below appreciate said the color West weather that weather normal. normalization are right? the and verify, great, guys. results, the and doesn't QX normal

Yeah.

days we'd pick You're bill above their last new And in occurred the what And of to to -- being, the I kind as see even the then, actually absolutely quoted you'll degree talked normal that right. That's heating at during call reflected. degree heating first little year quarter what up through a normal. days. we've I it actually transcript, I the bit

for planning business the of do for appropriate Gas. this said, use What like, to whole looks the much own Day most first process going not Investor very of were to us to the owned those or we did as And what and we the ownership, the as is through going budgeting view results ourselves a process and this quarter a quarter. you, first for for we we're year to normalized thing period give before Peoples that to we for

we've So are actual and XX the are time the XX, during owned pro way that which XX quarter. results days first days forma the results that of then that normalized even about is, period work and the Peoples it's for that in

way, that. just sense I good sense yeah, us a does that forward to to -- like you a to that going wanted expect clarify mean for make it No. it and helpful show basis. on so Yeah. But normal I to we what

of acceleration the on those validation to report. that the it's it to of kind what, staying Veatch do the think implementations? Black some then to terms I needs rate plan you articulated Or growth that my further And & just is in there? gas of, of you going address XX% X% CapEx result previously in think potentially, in base meaningful side, Is like

to crack a going at this. I'm Yes. Rick give Yes.

nice doing capital, to there think -- start the when takeaways the really system compare a the as So there we're let Veatch me especially in that the of we doing report. about result is spend a really That key improve industry. the is just of opportunity job, to & others Peoples by one more is to the capital -- you well. clearly saying Black them as

not I the a to That's result a you capital So of it's there why would as report. of but list And some case, more gosh, that the is capital urgency. kick from not like oh, Rick, real to Rick recommendations be get opportunity say, for that? there's the don't We to provided massive spent. spend to it my need

Yeah, Chris.

I think well. it you answered

or be addressed the opportunities speak the if the approach refinement also in I Some things prioritization. focus, that are of plans. are have mentioned that in that these would these in done to I some capital, to additional needs some would spend just that items been anyways, a There and but in future around and here things

GPS not to Some are terribly of here It's project. I'll the in point modest And expensive. costs. project, that important is it's really but a

I forward an but opportunity think for by stronger capital. now, is investing make that's the it to way going things so there answer And we'll

think a wouldn't change. Jonathan, I step So about

Yes.

Okay.

work So through on rate yeah, just affordability. you'll it the I mean based plan and

could If acceleration, you keep, just impact some you'll can near see term. still you the But keep then guess, mind. the I I that in guess, manageable, rate in

Yes.

that Okay. you kind And to regulators do mid-summer when then, when catch-up regarding clarity the the expect of Pennsylvania make component get filing you from covers?

Jonathan? then, by process COVID the through we are Well,

was I going same. the say to

Dan, ahead. to hard bit go little a It's know.

And it hard seen. for for to to the PUC them, out, Yes. before No, yet the you. of but right just that the takes in how cases we Hopefully in be think tell it to next summer, call, terms at where said, detail Chris, number play I right, that more a that that's now. we'll thus, long little file of around is the that exactly as

progress Okay. of line time a case. more mean, rate But like I along it the might

like I nine we thinking or be mean type? So months could year a

hope I Oh, not.

for I there hope back a long bit and it's Will sure. not Absolutely. be of that forth?

Okay.

Okay.

year-end. maybe So,

Okay. much Great. for my taking safe. questions Thanks and so stay

Yeah.

You Jonathan. too,

Thanks, indeed Jonathan.

be no closing to Mr. over turn remarks. back at we'll you this the conference Franklin, additional for or And appear questions there to any time. further

Brian's and safe us. today. questions We for with have us always you look Dan's available And after the forward mine. appreciate We catching joining for healthy. follow-up Thanks obviously meeting. Renee's, And we're you. and Please to numbers, stay your up joining

does That you We today's your thank conclude participation. conference. do for

now may You disconnect.