10-Q 1 wtrg-20220331x10q.htm 10-Q wtrg-20220331x10q
false--12-31Q10000078128YesYes0000078128us-gaap:SubsequentEventMember2022-04-012022-04-300000078128us-gaap:SubsequentEventMember2022-05-020000078128us-gaap:SubsequentEventMember2022-04-300000078128srt:MinimumMemberwtrg:PerformanceShareUnitsMember2022-01-012022-03-310000078128srt:MaximumMemberwtrg:PerformanceShareUnitsMember2022-01-012022-03-3100000781282021-08-092021-08-090000078128srt:MinimumMember2022-01-012022-03-310000078128srt:MaximumMember2022-01-012022-03-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2022-01-012022-03-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2022-01-012022-03-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2022-01-012022-03-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2022-01-012022-03-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2022-01-012022-03-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2022-01-012022-03-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2022-01-012022-03-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2022-01-012022-03-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2022-01-012022-03-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2022-01-012022-03-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2022-01-012022-03-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2022-01-012022-03-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2022-01-012022-03-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2022-01-012022-03-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2022-01-012022-03-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2022-01-012022-03-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2022-01-012022-03-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2022-01-012022-03-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2022-01-012022-03-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2022-01-012022-03-310000078128wtrg:RevolvingCreditAgreementDueBMember2022-01-012022-03-310000078128wtrg:NotesZMember2022-01-012022-03-310000078128wtrg:NotesGMember2022-01-012022-03-310000078128wtrg:NotesFMember2022-01-012022-03-310000078128wtrg:NotesCMember2022-01-012022-03-310000078128wtrg:NotesBMember2022-01-012022-03-310000078128wtrg:NotesBbMember2022-01-012022-03-310000078128wtrg:NotesAaMember2022-01-012022-03-310000078128wtrg:AmortizingNotesMember2022-01-012022-03-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2021-01-012021-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2021-01-012021-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2021-01-012021-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2021-01-012021-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2021-01-012021-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2021-01-012021-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2021-01-012021-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2021-01-012021-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2021-01-012021-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2021-01-012021-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2021-01-012021-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2021-01-012021-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2021-01-012021-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2021-01-012021-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2021-01-012021-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2021-01-012021-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2021-01-012021-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2021-01-012021-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2021-01-012021-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2021-01-012021-12-310000078128wtrg:RevolvingCreditAgreementDueBMember2021-01-012021-12-310000078128wtrg:NotesZMember2021-01-012021-12-310000078128wtrg:NotesGMember2021-01-012021-12-310000078128wtrg:NotesFMember2021-01-012021-12-310000078128wtrg:NotesCMember2021-01-012021-12-310000078128wtrg:NotesBMember2021-01-012021-12-310000078128wtrg:NotesBbMember2021-01-012021-12-310000078128wtrg:NotesAaMember2021-01-012021-12-310000078128wtrg:AmortizingNotesMember2021-01-012021-12-310000078128wtrg:DateMemberwtrg:LdcFundingLlcMember2019-04-230000078128wtrg:NaturalGasAccountsReceivableMember2022-01-012022-03-310000078128wtrg:PaymentAssistanceProgramMember2021-12-012021-12-310000078128wtrg:PaymentAssistanceProgramMember2021-07-012021-07-310000078128wtrg:RegulatoryAssessmentsMember2022-01-012022-03-310000078128wtrg:PumpingFeesMember2022-01-012022-03-310000078128wtrg:PropertyMember2022-01-012022-03-310000078128wtrg:PayrollMember2022-01-012022-03-310000078128wtrg:OtherTaxesMember2022-01-012022-03-310000078128wtrg:GrossReceiptsExciseAndFranchiseMember2022-01-012022-03-310000078128wtrg:RegulatoryAssessmentsMember2021-01-012021-03-310000078128wtrg:PumpingFeesMember2021-01-012021-03-310000078128wtrg:PropertyMember2021-01-012021-03-310000078128wtrg:PayrollMember2021-01-012021-03-310000078128wtrg:OtherTaxesMember2021-01-012021-03-310000078128wtrg:GrossReceiptsExciseAndFranchiseMember2021-01-012021-03-310000078128wtrg:NotesRangesCMember2022-03-310000078128wtrg:NotesRangesBMember2022-03-310000078128wtrg:NotesRangesCMember2021-12-310000078128wtrg:NotesRangesBMember2021-12-310000078128us-gaap:SubsequentEventMember2022-05-022022-05-020000078128us-gaap:TreasuryStockMember2022-03-310000078128us-gaap:RetainedEarningsMember2022-03-310000078128us-gaap:CommonStockMember2022-03-310000078128us-gaap:AdditionalPaidInCapitalMember2022-03-310000078128us-gaap:TreasuryStockMember2021-12-310000078128us-gaap:RetainedEarningsMember2021-12-310000078128us-gaap:CommonStockMember2021-12-310000078128us-gaap:AdditionalPaidInCapitalMember2021-12-310000078128us-gaap:TreasuryStockMember2021-03-310000078128us-gaap:RetainedEarningsMember2021-03-310000078128us-gaap:CommonStockMember2021-03-310000078128us-gaap:AdditionalPaidInCapitalMember2021-03-310000078128us-gaap:TreasuryStockMember2020-12-310000078128us-gaap:RetainedEarningsMember2020-12-310000078128us-gaap:CommonStockMember2020-12-310000078128us-gaap:AdditionalPaidInCapitalMember2020-12-310000078128us-gaap:CommonStockMember2022-01-012022-03-310000078128us-gaap:CommonStockMember2021-01-012021-03-310000078128us-gaap:EmployeeStockOptionMember2021-12-310000078128us-gaap:EmployeeStockOptionMember2022-03-310000078128wtrg:TwoThousandAndFourOmnibusEquityCompensationPlanMember2022-03-310000078128wtrg:AmendedAndRestatedEquityCompensationPlanMember2022-03-310000078128wtrg:AmendedAndRestatedEquityCompensationPlanMember2022-01-012022-03-310000078128wtrg:PerformanceShareUnitsMember2022-03-310000078128us-gaap:StockCompensationPlanMember2022-03-310000078128us-gaap:RestrictedStockUnitsRSUMember2022-03-310000078128us-gaap:RestrictedStockMember2022-03-310000078128wtrg:PerformanceShareUnitsMember2021-12-310000078128us-gaap:StockCompensationPlanMember2021-12-310000078128us-gaap:RestrictedStockUnitsRSUMember2021-12-310000078128us-gaap:RestrictedStockMember2021-12-310000078128us-gaap:EmployeeStockOptionMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2022-01-012022-03-310000078128us-gaap:EmployeeStockOptionMemberus-gaap:ShareBasedCompensationAwardTrancheThreeMember2022-01-012022-03-310000078128us-gaap:EmployeeStockOptionMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2022-01-012022-03-310000078128wtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2022-03-310000078128wtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2022-03-310000078128wtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2022-03-310000078128wtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2022-03-310000078128wtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2022-03-310000078128wtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2022-03-310000078128wtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2022-03-310000078128wtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2022-03-310000078128wtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2022-03-310000078128wtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2022-03-310000078128wtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2021-12-310000078128wtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2021-12-310000078128wtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2021-12-310000078128wtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2021-12-310000078128wtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2021-12-310000078128wtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2021-12-310000078128wtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2021-12-310000078128wtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2021-12-310000078128wtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2021-12-310000078128wtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2021-12-310000078128wtrg:AlternativeRevenueProgramMemberwtrg:WaterMember2022-01-012022-03-310000078128wtrg:AlternativeRevenueProgramMemberwtrg:WastewaterMember2022-01-012022-03-310000078128wtrg:AlternativeRevenueProgramMemberwtrg:NaturalGasMember2022-01-012022-03-310000078128srt:ConsolidationEliminationsMemberwtrg:OtherMember2022-01-012022-03-310000078128wtrg:AlternativeRevenueProgramMemberwtrg:WaterMember2021-01-012021-03-310000078128wtrg:AlternativeRevenueProgramMemberwtrg:WastewaterMember2021-01-012021-03-310000078128wtrg:AlternativeRevenueProgramMemberwtrg:NaturalGasMember2021-01-012021-03-310000078128srt:ConsolidationEliminationsMemberwtrg:OtherMember2021-01-012021-03-310000078128wtrg:ResidentialMemberwtrg:WaterMember2022-01-012022-03-310000078128wtrg:ResidentialMemberwtrg:WastewaterMember2022-01-012022-03-310000078128wtrg:ResidentialMemberwtrg:NaturalGasMember2022-01-012022-03-310000078128wtrg:OtherWaterMemberwtrg:WaterMember2022-01-012022-03-310000078128wtrg:OtherWastewaterMemberwtrg:WastewaterMember2022-01-012022-03-310000078128wtrg:OtherUtilityMemberwtrg:OtherMember2022-01-012022-03-310000078128wtrg:OtherUtilityMemberwtrg:NaturalGasMember2022-01-012022-03-310000078128wtrg:IndustrialMemberwtrg:WaterMember2022-01-012022-03-310000078128wtrg:IndustrialMemberwtrg:WastewaterMember2022-01-012022-03-310000078128wtrg:IndustrialMemberwtrg:NaturalGasMember2022-01-012022-03-310000078128wtrg:GasTransportationMemberwtrg:NaturalGasMember2022-01-012022-03-310000078128wtrg:FireProtectionMemberwtrg:WaterMember2022-01-012022-03-310000078128wtrg:CommercialMemberwtrg:WaterMember2022-01-012022-03-310000078128wtrg:CommercialMemberwtrg:WastewaterMember2022-01-012022-03-310000078128wtrg:CommercialMemberwtrg:NaturalGasMember2022-01-012022-03-310000078128wtrg:WaterMember2022-01-012022-03-310000078128wtrg:WastewaterMember2022-01-012022-03-310000078128wtrg:OtherMember2022-01-012022-03-310000078128wtrg:NaturalGasMember2022-01-012022-03-310000078128wtrg:ResidentialMemberwtrg:WaterMember2021-01-012021-03-310000078128wtrg:ResidentialMemberwtrg:WastewaterMember2021-01-012021-03-310000078128wtrg:ResidentialMemberwtrg:NaturalGasMember2021-01-012021-03-310000078128wtrg:OtherWaterMemberwtrg:WaterMember2021-01-012021-03-310000078128wtrg:OtherWastewaterMemberwtrg:WastewaterMember2021-01-012021-03-310000078128wtrg:OtherUtilityMemberwtrg:OtherMember2021-01-012021-03-310000078128wtrg:OtherUtilityMemberwtrg:NaturalGasMember2021-01-012021-03-310000078128wtrg:IndustrialMemberwtrg:WaterMember2021-01-012021-03-310000078128wtrg:IndustrialMemberwtrg:WastewaterMember2021-01-012021-03-310000078128wtrg:IndustrialMemberwtrg:NaturalGasMember2021-01-012021-03-310000078128wtrg:GasTransportationMemberwtrg:NaturalGasMember2021-01-012021-03-310000078128wtrg:FireProtectionMemberwtrg:WaterMember2021-01-012021-03-310000078128wtrg:CommercialMemberwtrg:WaterMember2021-01-012021-03-310000078128wtrg:CommercialMemberwtrg:WastewaterMember2021-01-012021-03-310000078128wtrg:CommercialMemberwtrg:NaturalGasMember2021-01-012021-03-310000078128wtrg:WaterMember2021-01-012021-03-310000078128wtrg:WastewaterMember2021-01-012021-03-310000078128wtrg:OtherMember2021-01-012021-03-310000078128wtrg:NaturalGasMember2021-01-012021-03-3100000781282020-03-150000078128stpr:PA2021-08-202021-08-200000078128stpr:KY2022-01-032022-01-030000078128wtrg:NewJerseyOhioAndIndianaMember2022-01-012022-03-310000078128wtrg:IllinoisAndNorthCarolinaMember2022-01-012022-03-310000078128wtrg:ForwardEquitySaleAgreementMember2020-08-012020-08-3100000781282020-08-032020-08-030000078128wtrg:LongTermDebtsMember2021-04-192021-04-190000078128wtrg:WastewaterUtilitySystemsInVariousStatesMember2022-01-012022-03-310000078128wtrg:RevolvingCreditAgreementDueBMember2022-03-310000078128wtrg:RevolvingCreditAgreementDueBMember2021-12-310000078128us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310000078128us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-03-310000078128us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310000078128us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310000078128wtrg:WaterMember2022-01-012022-03-310000078128wtrg:NaturalGasMember2022-01-012022-03-310000078128wtrg:WaterMember2022-03-310000078128wtrg:NaturalGasMember2022-03-310000078128wtrg:WaterMember2021-12-310000078128wtrg:NaturalGasMember2021-12-310000078128us-gaap:RetainedEarningsMember2021-01-012021-03-310000078128us-gaap:RetainedEarningsMember2022-01-012022-03-310000078128wtrg:InitialForwardEquitySaleAgreementMember2021-08-090000078128wtrg:ForwardEquitySaleAgreementMember2021-08-090000078128us-gaap:OperatingSegmentsMemberwtrg:WaterMember2022-01-012022-03-310000078128us-gaap:OperatingSegmentsMemberwtrg:NaturalGasMember2022-01-012022-03-310000078128us-gaap:CorporateAndOtherMember2022-01-012022-03-310000078128us-gaap:OperatingSegmentsMemberwtrg:WaterMember2021-01-012021-03-310000078128us-gaap:OperatingSegmentsMemberwtrg:NaturalGasMember2021-01-012021-03-310000078128us-gaap:CorporateAndOtherMember2021-01-012021-03-310000078128us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-01-012022-03-310000078128us-gaap:PensionPlansDefinedBenefitMember2022-01-012022-03-310000078128us-gaap:PensionPlansDefinedBenefitMember2021-01-012021-03-310000078128us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-01-012021-03-310000078128wtrg:AquaPennsylvaniaIncMemberus-gaap:RevolvingCreditFacilityMember2021-04-192021-04-190000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2022-03-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2022-03-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2022-03-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2022-03-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2022-03-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2022-03-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2022-03-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2022-03-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2022-03-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2022-03-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2022-03-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2022-03-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2022-03-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2022-03-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2022-03-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2022-03-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2022-03-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2022-03-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2022-03-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2022-03-310000078128wtrg:NotesZMember2022-03-310000078128wtrg:NotesGMember2022-03-310000078128wtrg:NotesFMember2022-03-310000078128wtrg:NotesCMember2022-03-310000078128wtrg:NotesBMember2022-03-310000078128wtrg:NotesBbMember2022-03-310000078128wtrg:NotesAaMember2022-03-310000078128wtrg:AmortizingNotesMember2022-03-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2021-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2021-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2021-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2021-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2021-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2021-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2021-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2021-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2021-12-310000078128srt:MinimumMemberwtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2021-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesZeroPointZeroZeroPercentageToZeroPointNineNinePercentageMember2021-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesTwoPointZeroZeroPercentageToTwoPointNineNinePercentageMember2021-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesThreePointZeroZeroPercentageToThreePointNineNinePercentageMember2021-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSixPointZeroZeroPercentageToSixPointNineNinePercentageMember2021-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesSevenPointZeroZeroPercentageToSevenPointNineNinePercentageMember2021-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesOnePointZeroZeroPercentageToOnePointNineNinePercentageMember2021-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesNinePointZeroZeroPercentageToNinePointNineNinePercentageMember2021-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFourPointZeroZeroPercentageToFourPointNineNinePercentageMember2021-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesFivePointZeroZeroPercentageToFivePointNineNinePercentageMember2021-12-310000078128srt:MaximumMemberwtrg:LongTermDebtOfSubsidiariesEightPointZeroZeroPercentageToEightPointNineNinePercentageMember2021-12-310000078128wtrg:NotesZMember2021-12-310000078128wtrg:NotesGMember2021-12-310000078128wtrg:NotesFMember2021-12-310000078128wtrg:NotesCMember2021-12-310000078128wtrg:NotesBMember2021-12-310000078128wtrg:NotesBbMember2021-12-310000078128wtrg:NotesAaMember2021-12-310000078128wtrg:AmortizingNotesMember2021-12-310000078128wtrg:LongTermDebtsMember2021-04-190000078128wtrg:AquaOhioIncMemberwtrg:MortgageBondsMember2021-04-150000078128wtrg:AquaOhioIncMemberwtrg:MortgageBonds3Member2021-04-150000078128wtrg:AquaOhioIncMemberwtrg:MortgageBonds2Member2021-04-150000078128wtrg:LdcFundingLlcMember2019-04-232019-04-230000078128wtrg:LdcFundingLlcMember2019-04-230000078128wtrg:ForwardEquitySaleAgreementMember2020-08-3100000781282021-03-3100000781282020-12-310000078128us-gaap:FairValueInputsLevel1Member2022-03-310000078128us-gaap:FairValueInputsLevel1Member2021-12-310000078128wtrg:LowerMakefieldTownshipMemberwtrg:WastewaterUtilitySystemMember2022-03-012022-03-310000078128stpr:ILwtrg:WastewaterUtilitySystemMember2021-10-012021-10-310000078128stpr:TXwtrg:WaterUtilitySystemMember2021-08-012021-08-060000078128stpr:ILwtrg:WaterUtilitySystemMember2021-08-012021-08-060000078128stpr:PAwtrg:WaterUtilitySystemMember2021-07-012021-07-310000078128stpr:ILwtrg:WastewaterUtilitySystemsInVariousStatesMember2021-04-012021-04-300000078128wtrg:SouthernOaksMemberwtrg:WaterUtilitySystemMember2021-01-012021-12-310000078128stpr:PAwtrg:WastewaterUtilitySystemMember2021-01-012021-01-310000078128stpr:DEwtrg:WastewaterUtilitySystemMember2019-09-012019-09-300000078128us-gaap:OperatingSegmentsMemberwtrg:WaterMember2022-03-310000078128us-gaap:OperatingSegmentsMemberwtrg:NaturalGasMember2022-03-310000078128us-gaap:CorporateAndOtherMember2022-03-310000078128us-gaap:OperatingSegmentsMemberwtrg:WaterMember2021-12-310000078128us-gaap:OperatingSegmentsMemberwtrg:NaturalGasMember2021-12-310000078128us-gaap:CorporateAndOtherMember2021-12-310000078128wtrg:PerformanceShareUnitsMember2022-01-012022-03-310000078128us-gaap:StockCompensationPlanMember2022-01-012022-03-310000078128us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-03-310000078128us-gaap:RestrictedStockMember2022-01-012022-03-310000078128us-gaap:EmployeeStockOptionMember2022-01-012022-03-310000078128wtrg:PerformanceShareUnitsMember2021-01-012021-03-310000078128us-gaap:StockCompensationPlanMember2021-01-012021-03-310000078128us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-03-310000078128us-gaap:RestrictedStockMember2021-01-012021-03-310000078128us-gaap:EmployeeStockOptionMember2021-01-012021-03-310000078128us-gaap:TreasuryStockMember2022-01-012022-03-310000078128us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310000078128us-gaap:TreasuryStockMember2021-01-012021-03-310000078128us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-3100000781282021-01-012021-03-3100000781282022-03-3100000781282021-12-310000078128wtrg:TangibleEquityUnitsMember2022-01-012022-03-310000078128us-gaap:CommonStockMember2022-01-012022-03-3100000781282022-04-1800000781282022-01-012022-03-31wtrg:customerwtrg:itemwtrg:segmentiso4217:USDwtrg:agreementxbrli:pureiso4217:USDxbrli:sharesiso4217:USDxbrli:shares

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON DC 20549

FORM 10-Q

(Mark One) 

S QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934. 

For the quarterly period ended March 31, 2022

£ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. 

For the transition period from_______________ to _______________

Commission File Number 1-6659 

ESSENTIAL UTILITIES, INC. 

(Exact name of registrant as specified in its charter) 

Pennsylvania

23-1702594

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

 

762 W. Lancaster Avenue, Bryn Mawr, Pennsylvania

19010 -3489

(Address of principal executive offices)

(Zip Code)

 

(610) 527-8000

(Registrant’s telephone number, including area code)

N/A

(Former Name, former address and former fiscal year, if changed since last report.)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes S  No £

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes S  No £

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12(b)-2 of the Exchange Act.:  

Large Accelerated Filer S

Accelerated Filer £

Non-Accelerated Filer £

Smaller Reporting Company £

Emerging Growth Company £

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. £

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes £  No S

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, $0.50 par value

WTRG

New York Stock Exchange

6.00% Tangible Equity Units

WTRU

New York Stock Exchange

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of April 18, 2022: 253,716,494


Table of Contents

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

Page

Part I – Financial Information

Item 1. Financial Statements:

Consolidated Balance Sheets (unaudited) – March 31, 2022 and December 31, 2021

2

Consolidated Statements of Operations and Comprehensive Income (unaudited) –
Three Months Ended March 31, 2022 and 2021

4

Consolidated Statements of Capitalization (unaudited) –
March 31, 2022 and December 31, 2021

5

Consolidated Statements of Equity (unaudited) –
Three Months Ended March 31, 2022

6

Consolidated Statements of Equity (unaudited) –
Three Months Ended March 31, 2021

7

Consolidated Statements of Cash Flow (unaudited) –
Three Months Ended March 31, 2022 and 2021,

8

Notes to Consolidated Financial Statements (unaudited)

9

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

29

Item 3. Quantitative and Qualitative Disclosures About Market Risk

38

Item 4. Controls and Procedures

38

 

Part II – Other Information

 

Item 1. Legal Proceedings

38

Item 1A. Risk Factors

38

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

39

Item 6. Exhibits

40

Signatures

41

1


Table of Contents

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

CONSOLIDATED BALANCE SHEETS 

(In thousands of dollars, except per share amounts) 

(UNAUDITED)

 

March 31,

December 31,

Assets

2022

2021

Property, plant and equipment, at cost

$

12,836,605

$

12,610,376

Less: accumulated depreciation

2,441,921

2,358,510

Net property, plant and equipment

10,394,684

10,251,866

Current assets:

Cash and cash equivalents

58,298

10,567

Accounts receivable, net

182,587

141,025

Unbilled revenues

104,540

119,896

Inventory - materials and supplies

38,560

33,756

Inventory - gas stored

20,502

75,804

Prepayments and other current assets

29,856

36,597

Regulatory assets

9,172

20,150

Total current assets

443,515

437,795

Regulatory assets

1,505,211

1,429,840

Deferred charges and other assets, net

139,608

141,955

Funds restricted for construction activity

1,313

1,313

Goodwill

2,340,815

2,340,815

Operating lease right-of-use assets

46,305

48,930

Intangible assets

5,572

5,764

Total assets

$

14,877,023

$

14,658,278

The accompanying notes are an integral part of these consolidated financial statements

2


Table of Contents

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

CONSOLIDATED BALANCE SHEETS (continued)

(In thousands of dollars, except per share amounts) 

(UNAUDITED)

 

March 31,

December 31,

Liabilities and Equity

2022

2021

Stockholders' equity:

Common stock at $0.50 par value, authorized 600,000,000 shares, issued 256,281,789 and 256,102,388 as of March 31, 2022 and December 31, 2021

$

128,140 

$

128,050 

Capital in excess of par value

3,713,560 

3,705,814 

Retained earnings

1,497,757 

1,434,201 

Treasury stock, at cost, 3,250,261 and 3,234,765 shares as of March 31, 2022 and December 31, 2021

(84,357)

(83,615)

Total stockholders' equity

5,255,100 

5,184,450 

Long-term debt, excluding current portion

5,910,363 

5,815,211 

Less: debt issuance costs

38,403 

35,707 

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

5,871,960 

5,779,504 

Commitments and contingencies (See Note 13)

 

 

Current liabilities:

Current portion of long-term debt

131,746 

132,146 

Loans payable

79,743 

65,000 

Accounts payable

161,511

192,932 

Book overdraft

-

81,722 

Accrued interest

66,133 

40,815 

Accrued taxes

37,130

37,924 

Dividends payable

67,863 

-

Regulatory liabilities

17,241 

384 

Other accrued liabilities

116,811

124,140 

Total current liabilities

678,178

675,063 

Deferred credits and other liabilities:

Deferred income taxes and investment tax credits

1,481,253 

1,406,537 

Customers' advances for construction

104,403 

103,619 

Regulatory liabilities

759,661 

769,617 

Asset retirement obligations

1,262 

1,256 

Operating lease liabilities

43,946 

48,230 

Pension and other postretirement benefit liabilities

48,864 

50,226 

Other

35,998

43,666 

Total deferred credits and other liabilities

2,475,387

2,423,151 

Contributions in aid of construction

596,398 

596,110 

Total liabilities and equity

$

14,877,023

$

14,658,278 

The accompanying notes are an integral part of these consolidated financial statements

3


Table of Contents

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME 

(In thousands of dollars, except per share amounts) 

(UNAUDITED)

 

Three Months Ended

March 31,

2022

2021

Operating revenues

$

699,275

$

583,565

Operating expenses:

Operations and maintenance

142,581

125,075

Purchased gas

227,712

132,153

Depreciation

77,878

71,637

Amortization

468

1,307

Taxes other than income taxes

23,007

21,041

Total operating expenses

471,646

351,213

Operating income

227,629

232,352

Other expense (income):

Interest expense

53,636

50,769

Interest income

(609)

(387)

Allowance for funds used during construction

(5,839)

(2,934)

Gain on sale of other assets

-

(80)

Other

(1,702)

(3,471)

Income before income taxes

182,143

188,455

Provision for income taxes (benefit)

(17,233)

4,766

Net income

$

199,376

$

183,689

Comprehensive income

$

199,376

$

183,689

Net income per common share:

Basic

$

0.76

$

0.72

Diluted

$

0.76

$

0.72

Average common shares outstanding during the period:

Basic

261,952

254,565

Diluted

262,431

254,969

The accompanying notes are an integral part of these consolidated financial statements

 

4


Table of Contents

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

CONSOLIDATED STATEMENTS OF CAPITALIZATION 

(In thousands of dollars, except per share amounts) 

(UNAUDITED)

March 31,

December 31,

2022

2021

Stockholders' equity:

Common stock, $0.50 par value

$

128,140

$

128,050

Capital in excess of par value

3,713,560

3,705,814

Retained earnings

1,497,757

1,434,201

Treasury stock, at cost

(84,357)

(83,615)

Total stockholders' equity

5,255,100

5,184,450

Long-term debt of subsidiaries (substantially collateralized by utility plant):

Interest Rate Range

Maturity Date Range

0.00% to 0.99%

2023 to 2033

2,302

2,341

1.00% to 1.99%

2023 to 2039

9,157

9,341

2.00% to 2.99%

2022 to 2058

311,863

312,751

3.00% to 3.99%

2022 to 2056

1,357,393

1,359,284

4.00% to 4.99%

2023 to 2059

1,284,508

1,286,024

5.00% to 5.99%

2023 to 2043

15,917

16,119

6.00% to 6.99%

2022 to 2036

32,446

32,475

7.00% to 7.99%

2022 to 2027

28,799

28,980

8.00% to 8.99%

2025 to 2025

2,651

2,772

9.00% to 9.99%

2026 to 2026

11,800

11,800

3,056,836

3,061,887

Notes payable to bank under revolving credit agreement, variable rate, due Dec 2023

410,000

300,000

Unsecured notes payable:

Amortizing notes at 3.00% due 2022

10,273

20,470

Notes at 2.40% due 2031

400,000

400,000

Notes at 2.704% due 2030

500,000

500,000

Notes ranging from 3.01% to 3.59% due 2029 through 2050

1,125,000

1,125,000

Notes at 4.28%, due 2049

500,000

500,000

Notes ranging from 5.64% to 5.95%, due 2022 through 2034

40,000

40,000

Total long-term debt

6,042,109

5,947,357

Current portion of long-term debt