Essential Utilities (WTRG) 4 Nov 202020 Q3 Earnings call transcript

Good day, and welcome to the Essential Utilities Q3 2020 Earnings Call. Today's conference is being recorded. And at this time, I would like to turn the conference over to Mr. Brian Dingerdissen. Please go ahead.

thank XXXX joining Earnings and Utilities for everyone, Quarter Third Call. morning, you us for Essential Good I'm Brian Dingerdissen, Head of Vice President Chief Relations. of Investor Staff and

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

forward-looking our Here statement. is

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

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

today. for agenda Here's the our call

a turn the With up will our At our over questions. financial it that, to Chairman conclude and provide acquisition the it Chris Franklin. company and third We will with provide Chris call program. over Chris discuss to of who back After before Schuller, back for I for ESG to guidance. about will Chris with municipal Dan will we of Franklin, then program, Mike open call, turning to will will quarter provide turn conclusion update start and our a Huwar, our the Peoples CEO, our our update. a then then will the the CFO we talk results. call that, review highlights

deal long with as election know sleep dedicated we've our got are many letting And amount plan nine nearly achieve to be as I our night. continuity the been closed and months continue by a of night everyone. It's we our Hopefully, accomplishments today's activated you Peoples. workforce challenges that now start All its in want as same last Brian, right. awe call recall, after to morning, company and good with you we the I business XXXX. of since been since you ever. workforce thanks some Hey, pandemic. to transaction strong the able despite the to and time of of the

little Peoples utilities. of reports, Each a from organizations talk the bit leaders integration and she about Let's the the or is or both approaches and thinking, best direct he from both teams have from that leveraging include now company. of employees from Aqua Peoples legacy whether my

leaders like et Our now HR, functional support water cetera, both IT gas. and natural

you utilities systems And a purchasing going of larger our we're reduces and sense building and also and that platform for infrastructure, name gives together our integration have challenges leveraging improves Peoples, practices Overall, together and methane safety We're operations our been come resolve serve our been our at which a emissions. diverse using scale to quite workforce. We're the to replacement a COVID, very since. customers. And nicely well. efficient better applications Our in related the to to really sharing quick it's also they've We're few, program construction, of and attract safety, associated have teams with working pipeline the ever backbone technology. process. to ultimately and vehicles, accelerate engineers best operations and to just working closely spring hopefully, both really more equipment support the

likely issues moment. address There price out you'll equity into and $XXX and will some at play agreement, to that, forward all, stock issue million over want we a very agree entered the summer for that here the a went million some for I I we time to our here. in Now, macro are point that All it think recall the to this took you'd market. $XXX in in be well. forward micro equity understood offering

themes. the we point least the country's macro progress one to Now, history contentious of on were hear continue at natural been the all concern out DELCORA level, the the the in fracking, midst stock We've price. one obvious. of the our impacting and most of gas of And I'll central finally, in our transaction, about as elections

these talk a of natural couple DELCORA our and a bit view about about for both about gas. a talk second let's little issues. I'll talk we'll So then on

accretive days it I We've on about this hope the valid years, right. or share. DELCORA pluses that, question a in So for within there enforceable an XX we'll impact will between first, before as model impact hope pretty least which The time. parties been company. court court, DELCORA, We central happen early results but we only afternoon, time close Hopefully, minuses issues our have the will All short-term not in in the but was the XXXX a guide question. or against that that we for expected acquisition. remain hopefully, that or our earnings this due is, the court. is Either from confident get of the coming EPS we that per pandemic-related will And positive know confident the be remain XXXX DELCORA, answer XXXX XXXX. to a at court in date a in the that, the your out. see a any it's in We the way, we DELCORA some from no following on week putting there probably XX days for out. hearing. and key We that's that court today pushed would be contract saying week will question would is for but straightforward result

gas. turn Let's natural to

traded that, have companies acknowledge First off, gas I recently. more obviously, want to natural

investors doubt. even gas future States speculate some to have And that, United is natural the of begun the in in

through really moment expected ground XXXX. ground ourselves a expected United constant, remain couple in will generation but a clear. projections The the nearly make constant, natural of the gas yield let's remain things, at nuclear renewables, So to from non-partisan that to declines It's States, obviously is Administration. to one I least in really natural and take that's Information gas coal consumption will in, the consumption Number important. to Energy U.S. want

are a think people missing I that. of lot

Marcellus the situated serve will Secondly, the that we've long said this local And for the over Shale and all the takeaway to that, area. from many and well, be available, inexpensive Peoples Pennsylvania sources. gas natural time, is we Pittsburgh plentiful is region, as really in comes times natural a gas

their you've importance, And to Pittsburgh, you to time not if only know understand not their national economy, independence. Now might but that, gas not history. proud also its spent energy Pittsburghers in are natural local of

Next, our natural America. really gas middle-class service is in territory

home gas and So or $X,XXX to range in solar the cost higher would mean energy switch, electric a wind, costs. to natural monthly paying switch would from of also to

are to fair think it's our I customers unlikely switch. to say,

in country's X% aggregated gas the we about the of residential gas all only of, to country, the would total the all if greenhouse emissions. from Now, consumption greenhouse gas natural equate of it

sometimes, the lost gets So, as well. minor in think in of the I scheme that things. discussion And

the know America, you advanced Aqua specialize were years, America than different, no demonstrated its aggressively at been really who adopt emissions, as of is we think reduce leader. an industry business, believe the Over practices us always to infrastructure, infrastructure, we We combined. was apply owner -- Gas our of We well Peoples we've new and responsible rehabilitating and stewards environmental underground and I know best in we've of commitment, we Aqua modernize that, were many those technologies. be environment. can before to the

reduction credible we As to Essential to And target, a continue set intermediate plan Utilities, the by technologies aggressive we'll in next evaluate strategies, and year. further emissions longer term. reduce early to emissions, and term

that may the does whatever while away the with the that not summary, reality in gas saying will United or today, clearly have the you use go objective in energy believe over lineup, they're States. next natural of decade So media

can. opposite. this as In I'll fact, I quite the it's say clearly, as

It's believe successful future with we Peoples as a and and Peoples. Essential. We Aqua, our well. long extremely with And of have pleased, we are very purchase performing

and leader Huwar. did President a the Now, operations. business XX with the retirement. about a to recently career introduce of pleased of is COO Columbia to native And I'd and Peoples, Pennsylvania, Gregorini, Gas, from operations Company, his Gas PA there. we And on and I'm our well, Mike new to there. Columbia's in natural years, Peoples great President the retirement where reside. observations of ask really was some provide spent, August, Pittsburgh, Mike Mike XX-year most of new he our his Peoples customers was to Joe gas comes of us he of a where business, job. concurrent wish Maryland our who over him leader, Mike's Joe our in perspective in long-time Mike? XXX,XXX provide, our of XXX,XXX natural joined gas early his of the us and

be to It's today. with Thanks, a really Chris. you pleasure

must in thrilled I have of respected opportunity utility. As Gas for lead community. absolutely leadership Company you the the have And Peoples to native tell a I'm I that, the Pittsburgh, to long the its

they're years safety safety record, been in the while, well-trained. months gas And Although, there's important tell equally The opportunity impressed for both, And I joined customer happy team management, very few improvement, may and for and three Peoples now. safety. culture, our with employee I'm I've natural be that, you committed to our is our just Peoples. I'm a to ago, at business always

for honored management which an In the or Accident depth be industry I Association the DART receiving American by Rate achieving have is, lower leader, restricted XXXX, the found total of was fact, than transferred Prevention days remarkable. in Gas industry Award Peoples average. to away,

well of my count you team the have next industry. alone, of The take company of combined the XXX senior for capital service level plan. to to years nearly is we the service years including our gas in team natural ramp-up the prepared the If

been safety of Assistance visibility, and in to Customer the are position efforts. indicate I now of which replace management let's time LIHEAP, find cooperation natural we Marcellus/Utica distribution as presented similar gas to Peoples integration of commodity programs the in full the we particularly have customers customers, and our the miles access million will Essential, businesses of in our three the the gas our bills Distribution XX I paying nearly fact companies Low-cost to combine in important to also to and have next the spirit bill in homes over the over are this has $X.X climates My and teams. distribution their far of among so together, during of and the cultures of the by easier. opportunity all with through reliability. Company, LDC, to supply their early the also customer next of take help the to going aging much can Peoples Program CAP, make Any that that and with modernize you years, care start use the X,XXX the integration most our teams been source region in Energy company's total and safely and the Low-Income two should mention magnificent will Peoples nearly to of is our assistance developing and pleased preparing always investments supply I've customers Local the very infrastructure Assistance a has impact make Aqua melding effective company. the nearly resilient observations XX need energy cultures enhancing to part capital heat homes. fabric years. limited you remain are combination billion that basin. replacement and above strong and a strong abundant of that's the assistance distribution has facilities. the Program of In have Natural we while and pandemic. an gas directly the access invest provide that like community Heating of Peoples given in will remember low-cost a a colder Pittsburgh system believe the of combined culture been community, And

to the economy Pennsylvania As part our communities this underscore a is is to gas environment community. of a together vibrant and legislators, see protect this to native business leaders, of regulators, where as Southwestern a region hard natural much I our how and work well. fabric it's keep

would is While discussion picture located won't Taking abundant gas to essential will the away expect slide the part gas. to parts on energy long-term mandate where rich point natural the is slide of sustainability supplied I of Peoples read I'd the natural natural gas remain more look a further of our affordable I the country others, here, gas vital generations the gas from in nation's as points the move needs. you those energy natural part and come. as at solution fulfill century. an natural quickly remains believe reliable geography to an gas natural and I the Coast, your a for that the the few next own, make like remain for on West than every example, energy for make United needs States to energy can but country's to a of solution a safe has to on

expensive in homes in impractical to way businesses an address Chris the greenhouse gas be direct and As eliminating would gas natural of emissions. and use mentioned

natural annually the natural as minute been an result moving conversion home service roughly distribution their it's increase that on would nearly costs, are for our to to the up add The gas of is fact million when gas Conversions from reality utility every new greater, would one system in has bills. natural of country. impact customer gas and half their Americans you households never equipment alternatives to demand profound operating in expensive or In now, XXX potential in higher be connects estimated every the providing household. away costs $X,XXX

emissions dramatically profile improvements. to further are the natural existing the reduced -- for have which addition years, industry technologies there gas of emissions recent in opportunities In

feet team company example renewable acquires or Peoples do we do serve. closing, X.X opportunities to you do look gas biogenic we looking continue climate-neutral together and pipeline-compatible communities that to a RNG annually are gas, portfolio back Today I'll we Chris. the look plan we sit hand to In call we Peoples renewable sources. and its For gas natural natural believe we our at service quality more. cubic RNG. renewable forward over the provide is more can industry this to that estriol-derived things from to billion other I as and The within of to leading the great as to With

topic LDCs one rate is that natural nice Mike base Thanks it position on among right. you -- gas in than to move some thought call I Peoples, on thought have before and Pacific the many we job. utility be its should and gas leave of differently final Great these thought should many other be natural on geographically, growth, you our for with reasons, regions differently than gas regulatory it team. the -- country everything its would of that's that especially, in across coastal and access All utilities reasons this just given given and and to gas other communities. coastal or else

the Now, the for let's highlights take look at a quarter.

the was in the in segment. in our invested $XX $XXX.X already point the I $XXX.X invested million of was that only million communities segment first want quarter to regulated infrastructure, which out we first year, months the and of was water in natural million have regulated in $XXX gas invested nine Peoples pre-closing. just by We invested about million our serve, during

record we track for $XXX in line, remain million XXXX. bottom So capital spending on of

from on just financial that period is box, a on when moment. Dan you detail income to a the to to non-GAAP Now, per also last see more in $X.XX take adjusted share results decreased in year the in same you $X.XX those going and basis, compared

-- was and base totaling over I of and wastewater in remains in recently say, should Lower County, customer the Rockwell strong acquisition XXX,XXX in over just Illinois signed Our closed We equivalents. of municipal a rate in announced water million Utilities, program acquisition which wastewater $XX XX,XXX Bucks with agreements that's and customers. municipal expected million Makefield signing the Pennsylvania, customers municipal $XXX transactions with acquisition

it, last through to take site with out the in that core site a that ESG. it XXXX, that talk here little about ESG weeks latest a say. Finally, slide encourage Since next priority. personal our been We an use that really mine would ago the report just point corporate in and can look really, started strong part and of we priority ESG published, a made of let's and to as few just a at really was CEO website. culture Sustainability refreshment. I Board always new I'd to It's bit you ESG And ESG find with we're segue became a has well. our a our our you box, been excited it's I as

Our of are exactly those, black. and are another one-third one-third nine About of is members. women members Board those two

facilitate helps Our diversity and better that. to firmly outcomes I believe and discussion better

reporting manager. comprehensive ramping more mentioned, As team to easy up full-time last our a ESG published our Since on report we February. been ESG and proxy I and recently, microsite even then, hired Peoples ESG new work, since detailed And our and we've ESG and as last enhanced to transaction, I communications just really mentioned ESG issued tearsheet transparent the in-house provide navigate. spring. before we XXXX a dramatically a format ensure the digital we Most first our

website future-related all be of the and news will of ESG home Our our disclosures.

from made we our on of Now, this XX% renewable would these. important sources. We said and year XXXX, by the sourced about we've announcements some side, water energy earlier that talked be

stand alone of water that test in eight a our PFOS and any also as treat water multistate source utility trillion. XX said in states detects source We believe parts to we every that, we commitment per above our

really so their is government federal sizable is level significant Advisory commitment. provides improvement a from a at guideline. XX this Health Federal per the the is as that trillion, recall what This You'll parts

so at mentioned and one-year this we probably have significant we'll length the that quarter cars gas future. I replaced those in aggressive, methane emissions. emissions a ownership, in for January want achievable reports we of but same to in I our replace up side, the as of to first announce pipe On the do we the fugitive, pipe natural of reduction. of reduce This of of by looking of an To set mark ESG quantifiably year the before XXXX, to road each Peoples per reach important. methane report at of mile for you frame. Remember, pretty It's time tighten pipe. XX the to plan pipe mile the XX equivalent every tons the give metric sense, year We is is taking as off emissions expected COX. each targets reduces a reductions

Let's to contributes years. reduces base XX% the pipe annually X% also while growth forget this not emissions, XX effort the over about that, methane program replacement rate

that, it me And let results. so over to with the for pass Dan financial

result we Thank volume revenue the everyone. in the the the water last which customers, you, The credits gas morning of revenue for Peoples ended of per adjusted $X.XX per of the discuss was $XX.X income a of increased to $X.XX. We're O&M million were when rate quarter million income which which was which quarter, transaction-related for and for water quarter $X.XX EPS per Good Chris. year. rate from rate of approximately $XXX.X $XX year. income a down income further regulated GAAP was waterfall. $XX.X to addition natural of O&M million Pennsylvania issued up growth the with $XX.X adjusted providing I down as the share credits gas from the the adjusted utility $XX.X third share to million, Net income revenue water and $X.X remainder $XXX.X $XXX.X $XX result result million that adjusted We're the excludes $XXX also this down aligns the up from million from to and million to growth, from the million, to again natural contributed million primarily to was show and third the $X.XX lines, down $X.XX. increases, reporting This segment. financials PUC adjusts acquisition. year-over-year of maintenance million, adjusted we we'll the approval a Reviewing of full was income $XXX.X year. condition and of of mentioned. Adjusted while $X.XX This with business million operations expenses, guidance was last in share of

following details starting the Next revenue. using we'll waterfall slides discuss with the

customers revenue the additional Wastewater from million adding to $XX credits that growth the the walk million the notice we'll As issued increase, rate acquisition you quarter, Systems. natural million. natural utility rate regulated provided nearly The quarter. towards $X.X increase of rate the to we third $XXX volume, driver to surcharges In by primarily $XX revenue fully water Increased $X.X of the the other, and our in the to regulatory for component was million and segment gas million which the third provide due is rates you'll satisfy credits in fourth customers offset approval. water quarter revenue segment, gas main Pennsylvania of was our growth million to related the an the included $XX.X concessions

declines nearly Despite $XX slide. the third from experienced most let's quarter. many working during strong, up quarter of our water a volume customers favorable the in positive We X.X% material with over segments. next offsets due our residential COVID, was weather, a from the XX%, incremental discuss again and water usage to other home million impact overall which Given third volume, usage up very on consumption revenue year-over-year was in

rebounded year. quarter, about the from recall XX% it significantly were down, down be to continued commercial that you'll Although last when we second versus

when of we've in to expense moratoria shut-off when discussed bad lifted. we March, be COVID-XX the given moratoria states timing closely in previously, that and continue increases debt these will emerged As the monitor our incremental enacted

all next occur of in Jersey, this Pennsylvania, see be exception is New and the have March with in our lifted right, lifted states XXXX. As the days can moratoria to the should expected on where their where of few you moratorium of the

regular lifted, delinquency moratoria resume As our procedures. are we

of reserves identified debt to gas increased bad $X.X maintenance in across expect asset this, much $XXX.X for as waterfall. the bad The and to was several the $XX.X growth $XX quarter we offset our regulatory third million seek Peoples water expenses Other million our water costs, driver compared included increases for filings year's During addition were main in the expenses. With be by of XXXX. to of quarter key potential including were million Peoples costs our of states. and to third of normal of in let's recovery by contributing expenses and the COVID-related last other employee-related that, and segment move for which costs, able Operations drivers the O&M. quarter, O&M COVID-related employee COVID-related we and million debt the impact acquisition-related

you savings, includes bar middle year. page see one-time the reserves detrimental in year other The reduction and in items one-time and of last this combination insurance the items beneficial a a of that overhead

For our X.X% expenses water relative third regulated year. O&M decreased segment, quarter to last

but quarter adding quarter costs, dilutive and to the adjusted an income presentation per Next between was both as basis $X.XX the almost equity from regulated $X.XX, EPS growth contribution items, Continuing $X.XX back offering XXXX the of Peoples GAAP that from $X.XX GAAP for $X.XXX per decreased the the and for and on, waterfall. effect figures Peoples-related adjusted per rates income $X.XX the brought transaction we'll surcharges this third XXXX last in us QX were share of year. together spend some last and and on the such for almost by benefit share Again earnings results amortization time bridges of XXXX. the in on repair adjusted $X.XX the then and relative XXXX. Pennsylvania volume depreciation, share interest other water from for contributed which along to and Aqua offset expenses, the increased year, segment with third

impact one-time the in financial $X.XX and includes share of Now, this low gas quarter here Peoples the issuance, impacts. from the usage dilution of other remember the the performance business

of quarter to utility for due of brings water credits to QX rate the customers decrease us the Finally, $X.XX third $X.XXX GAAP XXXX. EPS in

approximately rate quarter $XX gas additional credits I XXXX to issued be the million earlier, will As natural mentioned to of include of utility fourth the customers.

completed at we and rate surcharge so next in Virginia look regulated Illinois, filings slide. activity surcharges XXXX, expect for revenue segment. total in point million. in annualized Indiana $XX Kentucky coming not receive this or base we Ohio, North of Pennsylvania our In pending gas rates Jersey, our rate Indiana, completed year, base regulated surcharges annualized Let's natural we've gas we Virginia have or $X the or for In totaling on regulated the our in for and cases water million. regulated New At In new segment segment. any segment, to water Carolina, our natural and revenue the Pennsylvania with months, rates of do far surcharges

our limited regular interactions relatively and we our COVID rate with track counterparties. related activity and remains despite have regulators on Our continue to virtual

call eligible capital prior ownership $XXX announced for deduction the PUC repair we assigned petition invested we August, As the to an I'd the million needed we're hearings in over to the evidentiary proceeding. to If of Essential's update end process normal The to and our an has a administrative in the acquisition back the filed for At Chris point, with turn for phase of January. the on municipal approximately tax at proceeding of judge the this been Pennsylvania requesting Peoples. per like discovery accounting catch-up scheduled are law treatment initiative.

Dan you for before, acquisitions with are you've thanks. water regulated represents this it our right, which and the familiar Many seen slide, All of segment.

Campbell Illinois. this System Pennsylvania and So Rockwell in Water Utilities closed wastewater the year Ohio, in System far in Norriton East we've

I to annual Cummins with agreements Lower signed expected about are recently $XX we and Bucks earnings. Garden, DELCORA as a transactions and million New the about $XX signed Makefield wastewater for announced advance to assets continue water agreement in incremental of County, with XX,XXX million acquire mentioned We customers. their Pennsylvania These to generate

or expect We EDUs execute end of by $XX million transactions year, dwelling probably over purchase three asset over on the of purchase two or the equivalent XX,XXX and price. other to units totaling agreements

So this really wastewater DELCORA year of the acquisitions. the we're well status in earlier doing call. our with I mentioned

to have just again. transaction than reiterate our we'll then a just have questions we take And I'm a in early moment going want close and that suggest XXXX. rather reiterate ballot contract But I in we'll the a so that to confidence I

in a municipal healthy just Now addition to of that deals. municipal we signed pipeline potential mentioned, acquisitions we the have

acquisitions includes pipeline where Our opportunities right. are active

We acquisition have actively customers, a over point really this as this discussions are states. our potential so multiple about slide, totaling our strong pipeline active XXX,XXX at by opportunities, And illustrated we pursuing sellers. with

our the was raw built a the water I bringing a up owned Shale with that we the that wrap wells. frac to piece to originally activity Marcellus water to built part here, strategy venture of associated should we The to pipeline pipe wells Before region. was discussion mention joint reduce were water trucking on deliver that

And some as venture recall successful in when And just envisioned month, was I was CEO. October it of but not our that, as result, joint that now became written as And venture. may down be. was a in you we it to interest last the sold

that us. is now So behind

Let me with guidance just here. wrap up

XXXX line pro of range per We done believe of The XXXX. in us another to and me share deliver guidance. of the guidance forma are remains to income early $X.XX expect the questions. plan let We And We'll that as unchanged $X.XX position annual top have at of our previously. XXXX. current the on end to adjusted three with our announce guidance guidance updating that a we company's open new to years provide our will we allow rest for

of question Julien Thank America. first you. Instructions] Dumoulin-Smith Bank from with Our [Operator comes

Julien. Hi,

you Thanks I means I'd what Chris here. space start but and LDC do be Perhaps the for commentary curious your -- broader gas observations if if mean acquisition there to been that opine I'm of all here, light curious you lost in this on your are have I strategically implementations I across mean can are more so you think not on much the I'm us, but but going wasn't the side, obviously team Chris? certainly, whole curious space? the

there's Yes. think with currently. I in -- contributing lot as think listen the and situation elections I factors hyperbolic whole I so we're a the and I discussion mentioned, mean of a

prominent role gas in very time. believe natural the mean ESG and make work to We're I I a part generally a for alone that it the movement. Let there's that will world but and long an of country really greener, listen plays

believe, think, grounded I some facts, once improvement. get so, really Julien in the that see I we'll And people

gas all Pennsylvania a Marcellus that's sits over are is time, time really long for areas said, the differentiating very why purchased of opportunities. legislation that very spend different and gas Shale the gas some same to and passing very, Pittsburgh, of LDCs versus not low-cost to prohibit has region gas top we where I natural as I Now, are new today the the and proud. that wanted people LDC very

independence when start return going importance you're also to greening, going natural on to a the So has heat I not gas, part a only sunny, part way this plant, windy, think depend of prominent natural in as We're see to of of our as in nuclear you'll be. recognition a not energy to gas. It's not cold the total, it country, efficient but to it's not it's a very a home.

thinking we're how little you gives a in so, And insight that about it. hopefully

though, stand to actions sound I Okay. All want implications the from to you pivot back like to you to too many clarity? doesn't pulling walk respect strategic It about of already. you do at strategic think And should you. of right. enough. pending this point XQ, the cadence you close Fair kind alluded on other how just know already. With have to But I through can in here, timeline you hear equity? the we DELCORA as I when the for that but expect

Yes. Well, let's think about this.

DELCORA. of acquisition the on First

court parts hoping moving we'll Utility a still week, There's of to be and next got It to be know there's coming that. was delays a but supposed Public to date it's always lot we're which week, probably going that a So wind we've the this a process pandemic will And that through overtop, Commission then, later things little sometime obviously the today. up. bit.

say, it's would into we're but I done. to in locking So about first timeframe, I quarter, probably might would fair we think of April when get the ourselves March, say, it not terms

offering, acquisitions. going chunky-sized it, lot this, and pass over here remember our That of for work on of through million to -- you all Dan pretty I'll and municipal a talked lot we equity we've it for was the as DELCORA. got use $XXX went see when but we that in moment, Now acquisitions with a for equity of wasn't a about

equity And equity do to we'll to the down order to in as finance to we've Dan, add these to that, something have portion? need so, we continue continue pull said on do acquisitions. that you

out, sure the which And these to wanted that election kind a perspective we We, Julien, we've share avoid transactions. really maybe, stock timing pulling of that volatility into from fact we make just of Yes. obviously, of is our August wanted since good seen did to implied forward. price the we price that was the at time timing I in there to the And, we play were this strong and going wanted that to close volatility position a equity. driven really down equity kind the reiterate the price wanted by to a And cycle. certainly,

we the close equity price Julien, the that shares we call were where, share, pleased and as is meantime, quite shares, timing other material those equity you settle a get per that well the and denominator So forward need transactions. those we But or shares, without our impact. right we the the forward, those we'll count really, as in the with earnings a sense it DELCORA don't of about in unless in forward, transaction, the won't last when issue you we'll think don't earnings for there's that off when really to And position will count need that transaction coming proceeds movement. us we put

So we're it. quite with pleased

Got it.

other as currently you COVID large about side one of especially the in we quickly on resi year? like can into if of some and with looked curbing LDC side, I the Obviously, equation, of the their resi back on about the the Can here. half quickly very impacts. talk into gas Sorry, water another they're coming that sneak talk impact

that in due coming I was tell. gas And, and as that say, would we usage more Yes. little COVID. days months. anything gas meaningful obviously, call to didn't, usage we to low would QX, we're are know, It's a QX drive out of heating else. than you a early weather those degree And months, impact what see

so, we would weather-driven. our manufacturing, And weather. we'll as this with fall go not confident impact load conversations, being seeing loads, in we that a we're from than Pennsylvania, into consumption And -- other the it meaning in offline see say usage manufacturers really way are we're heating that I that, Western significant the correlated would things like

the guys Okay. you for Thank time.

totally. Yes,

You bet.

from Scattergood. Boenning next with Connors Ryan Our come & will question

Hi, guys. morning. Good

Ryan. Hi,

Yes. morning. Good Yes.

seems got points then remember like for interesting I timing another You've -- knack sounds Day got it down to was of you've a -- this day-to-day here. active the be the X,XXX week Dow year. about the and Analyst

anyway the my appreciate very above in seems like a -- on well it the shy question helpful. little being our just expense revenue. the think the consensus pretty I I and So as Dan, been But earnings have was It's in might first came a model waterfall, that factor and well. O&M of

yes, I side. be to what said by seems that Peoples So based you've on the think driven more

to myself, side who kind for Peoples? those can are expense gas of you parts just somewhat some of the newer moving like the for So least the us on at there through walk side,

you're that quarters. our the O&M comes you we've of X.X%. -- you'll see let me reporting you'll expense at expenses math see if see see you from Peoples. to do down and the water segment And line comparison that expense the in that segment, we've that for And that's and where the water look new don't first the Yes. segment year-on-year out, that are you'll right When in regulated no look got that regulated about the added frankly, terms we comment prior you Q in this at when

where are with expenses comfortable So, there.

just sure the year. adding is of kind of time. we're the basis On kind this what your the Peoples side, Peoples And not model I'm in first what relative for of we're kind we're reporting to expenses for really doing the here

we it -- kind conversation that maybe another So we line. of have make sure off

Sure, sure.

a water is the it's One big of had to whether involvement was couple annual big talking other in the things LIHEAP All picture space, home. it again and great utility And of NAWC Shindig regulated you of for encouraging interesting of course. the of the water. closer so-called And grid on on but NARUC for about then that are like last week one is virtual federal questions. differentiators that sort was kind more is things of Okay. like water surface, water great things one investment their that sounds there a

stuff get you that you comments? ultimately to counterproductive? your pulled involvement? hear guess I kind did of some clear concept of moves reaction some Is that that of forward constructs to So into that greater of maybe this kind what's federal happen regulatory those And

assistance what climbing, expense aware to we've Well, put let's LIHEAP. out the able cost the as that to to you and pointed need the massive to do serve in be given the customer provide that people use got we've in forth, we've for some going it been that been past. way is there beyond the become I water capital Ryan of think example more doing there more a is that

going that. are comes when time. are million lot our to Pennsylvania their supplements. and for climb submit from utility ought of to Service rate of the assistance some There utilities Program first to It case, and in the consideration this, be that's be government. gas it. a say electric all to going happening we going the going continue So first case well, this as think what's it's state. as should utilities probably the listen, to get to and federal to to think their customers that come water the from We'll probably I We're provided that same know way submit to water the in tough the we prices to rate next you I look Peoples, we in $XX Peoples at -- water be at provides do in But about Universal

tape So I But I prices I continue into to the to maybe think than prefer you, other for issues customer federal government there as is climb. many get some the assistance. other agree of that with stuck advantage red to not

timing is case we've into rate K-shaped kind the a this because not was out to go light the timing in optics mean of Chris, segment of there's it to that here in alluded -- rate of And one there various came great. is then, sort And I just that's COVID Pennsylvania. you about sizing you my politics to be terms while. what recovery how of does mean population the -- of cases? Okay. base now where do that for I pipeline struggling rates rate How you with now That's a affect in doing the for and rate up good, be a the is that? and going lucky but maybe fair. optics I would But the right of case ordinarily last about got of which sort mean of right the sequencing pretty maybe trying good of activity? you think

we're I how any but spring. that can't point we issue of vaccination things about say, COVID-XX. Pennsylvania in course, the water continue we're national time, really spend as utility well have a in -- spent here think does important to a And would a for there's is the deeper Yes. It's here. continued company, to the think a in time by it the a remain the question, into and and increase. will be But that given national that considering to think hope and rate the else. certainly of. case you -- tell I this cadence to rate on plans aspects impact And capital course, for have it large unit we the when shortly the does pandemic of we one everything we'll as But you filing an about I vaccine to out evaluate at Pennsylvania all alter play a it consideration. as you suffice Listen, the get we're we

the to downward leg And address Program the on that for then too Universal that Ryan K-shaped Chris, are mentioned. that I'd that that of add you Service people that proposal helps recovery

Yes.

hey, Well, your time. for Super. Okay. thanks

Yes. Thanks Ryan.

Thank you.

We'll from Sachs. take next Kim Insoo Goldman our question with

Hey, Insoo.

morning. Good

on equity side. First the question is

it pull something equity do to the if expect think are or expected fails to the still hypothetical amount be do full forward? basis, Just on close, about transaction of to DELCORA it the you a from less? that you the how amount you could Do

jump to and of kick remember Dan Insoo transactions second, couple other precipice that -- let's think a but remember are the announcing. are have you of but a why course that here in we you there? on we others chunky let's hope multiple things we're there on that uses we that Well equity. for going don't pretty Obviously to stay in Dan And I'm

Yes.

a interesting right? call XXXXX exactly could of matter ago million size Chris. forward. a two Insoo, And being you're $XX of mean it on left X, to mean connections. that like minutes I that see of absorb and was equity. call that continue to size we about look or think I kind right few think that we'll was would Makefield we we and we've you this terms that have I it in of I settle months ago on And Lower things talked that ability a of the huge acquisition factly. year or thought got now number bigger it XX that to it as a But evaluate say help

cash are for to forward, scale options here we're that of and settle out this transaction of point time settle anticipate that lot as a well. At certainly well. we or out settle play play other there as to things got that cash we for we DELCORA physically So that on working partial but would to

the back being side? only the appreciate M&A of acquisition I are then longer-term you LDC in have advantages growth Gas the just when for versus Makes gas business the that side has the perspective definitely going water committed that forward my on that reasoning the future spoken and know happen to Peoples strategic question that to it a sense. Marcellus. the Peoples mix And from still on especially going comes you reasoning other Chris, and Yes. strategy Understood. the But is you will about I just and gas

Yes. Yes.

conversation clearly you had have that I Let and me say before. this

replacing for pipe up of the spending ramping We're at of growing a that any base gas We on rate M&A. are lot by time natural side heck program. time the Peoples not spending a

rate that before, said XX% there we've X% is a growing base as year. So the to

to is even without and side results. doing really and us allowed M&A focus of water yielding M&A all the fast-growing then on put that's it's So it nice our

we're exactly any on side So It's right, on you all M&A. not time the water for said the gas spending it side.

much. Got it. Thank you so

You bet

our Instructions] next ISI. from [Operator Durgesh We'll Chopra Evercore question take with

Durgesh. Hey

perspective quickly question. appreciate clarify really and and helpful taking Dan, my from Chris Chris you just gas Can you. that's good the morning. detail all very Mike, around color and Thank I

can Just court for watching the I are it's procedurally the -- we to go can approval commission process? should and order DELCORA about you be you about then the that towards that? can milestones order the talk out what So just talk back

Sure, sure.

what's -- and there we called to Common be the in this Court, and -- but Pennsylvania expected in County that the moved, the out First week. that to lawyer. not I'm It Court be hearing to be Pleas had -- hopefully week only going I'm court a decision a by court is

believe clearly be and it. a in going valid I there decide, I'm describe of to super to how place contract we evidence of simple that. and The and So is there plenty enforceable in judge is has

favorably So our position should on look that the very there. court we think

so might quickly it would decision is on would So been XX probably pretty sometime expect that within actually to that case, And sooner. XX maximum. it week. know judge say days what be The I we But then his expect has call that. be days next we would working we in

Assuming to on he it pretty it then to to commission. should easy we the then move decides that focus the go continue way think, makes on

are hearings commission week the evidentiary next proceedings the So for DELCORA.

then the move late sometime up the which more appropriate probably February it there. the would allow to close -- early so, -- commission the expect call wrap or is to March April And timing. in us they'll and And with -- April through timeframe process their work March would we early

appeal have judge like is and if for And you sort in that? but of ruling has I in Pennsylvania. here an know adverse a and you it. a an Got very that an history things there forum event -- event successful in the

Yes.

never the But I you because that's you be appeal -- nuanced contract enforceable. or Aqua go between course Court matters well frankly, is Delaware. and nuanced Of of think us. second it can know a approach. more to question Commonwealth might it. could contract and more but And the judge come And suppose it we up it's the signed to We what the with, and a I'm Aqua probably not county DELCORA and sure have the could

it's confident enforceable. feel with through we county DELCORA so contract that whether And the or directly that is

-- Yes. any decision? just No, there, that's just back update that granularity income Thank anything Peoples great. expect on then And Gas a catch-up taxes pending is when appreciate commission provision with and the going you. the new I just of your to final there. on to

Yes.

end a hearings the of really the until there evidentiary then the call, as with about had of and As in sometime whether XXXX. we order right in in the earnings the whether with we settle filed you'll ALJ remarks recall, it plays at us schedule, probably But right and has I are time October that conference last the pre-hearing of out we a that my January. this noted still early quarter early final that or earlier second procedural outlined hearings

that an the cadence the these a Just commission rebuttal, just the and there you a law as you take if these briefs, there's reply judge surrebuttal decision, things go, they to steps timeframe order creation administrative time have goes deliberation for proposed and are and all and ultimately certain it of before are, file, a there's writes of there will.

having us wait ratepayers, increasing and about the But XXXX really the help years, in this out think think in would near-term. near-term, the bringing through benefit that customers shareholders. in of to XXXX, way than it the the incremental Obviously and we're it that. think really don't stay earnings remember of sharing too would achieve to it kind proposed that I this of as So kind earnings Durgesh rates revenue between that I rather longer, about the what us we think mode. that forward in does does out What way see earnings requirement we're help and is working in of our

you. great, Dan. Thank That’s

Good.

time for today. the Thanks

Yes. Thanks, Durgesh.

more one take We'll Jonathan Fargo. from with Reeder question Wells

Hey, Jonathan.

my Hi. for taking question Thanks guys.

creation the did on I and a of a you court I trust alluded little hearings bit, Chris of to few So the but had think How those by use the DELCORA. weeks focused think kind the go? ago

right? But think -- don't that obviously decisions I there's on as The Well, you the we're trust out well went arguments third-party think. yet know Jonathan is the I I And a to mean, county really an and would rulings trust. that. the a not the see prefer haven't -- -- we're party, issue is DELCORA on come between to third judge's so across a ultimately

So has pleased judge on procedural every ruled and very we've gone been work that of on, it's with rulings. one very all the the the all of well

would hear going trust forward. that imagine we more I So that would on

purchase be hands rulings that XX just hearing So would he the ruling like the potentially down? date, will it asset then one does issue the being global separate judge then later? two come Or the and after one days on agreement that one trust even

would that, is judge to Obviously, Well, think publicly. see, said settlement I like the very discussion. the -- judge pushing he a

on two think are obviously, on one about And I your think thinking right. And timeframes so you're the trust the one I not going comment it enforceability But and and on contract the about itself. way, that. right -- the probably or I'm to separate decisions,

trust. of about getting that's the road, current in a to trust. of could this way. the we're not think form of to it's not -- be, -- lot the issue sensitive have a to because of a a versus auspices the no-go fund; be of not a So go may as I There's -- area. more out down called deal trust a it would It a probably come in ways go hate but killer DELCORA. the other issue, there's doesn't be words, be But necessarily any a under And I trust. could county It it into listen, lot

Okay.

you think potential are if gets active do is it, that but judge is And mean, still settled, go you like incurring there so it into still pathway? you details that I -- is know, can't there chance the a a the there are, discussions? I

I'm sorry.

Jonathan. one that time, Ask more

I'm just judge settle discussions. -- said, or know parties the some encouraging that the is you to I

Yes.

discussions active like, on at be potential a away month a that, two going there might this judge's So from is though, should we or we real ruling assume even otherwise? point pathway that, are like, only a

Listen, discussions. settlement of or respond comment possibility. I is can't any always kind But settlement a

occurring? are Okay. But they

I unfortunately, say. really say, I can't Jonathan. -- can't I

but repairs like, about sound then there? based optimistic settlement, Testimony And Is be again time on hearing. the this Intervenor that kind settlement Okay. the we how in tax, the about reaching Or lastly, should you've of that January the seen? prospects kind you regarding before you're thinking of a the

And we've reply point, And the briefs back intervening And obviously we'll parties. from various through this we're At Jonathan working we're respond. gotten the through just really those. process. working

So I just early, on think give more really it's any you too to color it.

But do sharing and that's this we're obviously timeline the we're rates proposal and all And between, the we're earlier, to the evolves everything of for on see, wait see said parties going we I time wait. how terms when good in case As for here. us and progressing through said, the a can the longer. how here it. And customers way and out a the make keeps benefits to of shareholders, and of in I

M&A good Okay. alluded side. forward before and to that Yes. the of to looking Chris No. on I the end luck, appreciate Yes that. year announcements you those the

Good, Great. good.

You bet.

Thanks.

Thanks, care. Jonathan. Take

turn it for Chris closing to, now back remarks. I'll

thanks this Have available again. for important call. so a some follow-up. here, great for little Thanks we -- folks, right know time. day. think more much I more there But traded always was information lengthy spending All hopefully a that I

your for participation. Thank today's concludes gentlemen, you and Ladies this call.

You may now disconnect.