Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 21, 2022 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 1-6659 | |
Entity Registrant Name | ESSENTIAL UTILITIES, INC. | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 23-1702594 | |
Entity Address, Address Line One | 762 W. Lancaster Avenue | |
Entity Address, City or Town | Bryn Mawr | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19010 -3489 | |
City Area Code | 610 | |
Local Phone Number | 527-8000 | |
Title of 12(b) Security | Common stock, $0.50 par value | |
Trading Symbol | WTRG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 262,290,857 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000078128 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Property, plant and equipment, at cost | $ 13,468,046 | $ 12,610,376 |
Less: accumulated depreciation | 2,592,368 | 2,358,510 |
Net property, plant and equipment | 10,875,678 | 10,251,866 |
Current assets: | ||
Cash and cash equivalents | 23,366 | 10,567 |
Accounts receivable, net | 119,803 | 141,025 |
Unbilled revenues | 82,643 | 119,896 |
Inventory - materials and supplies | 41,565 | 33,756 |
Inventory - gas stored | 188,147 | 75,804 |
Prepayments and other current assets | 39,241 | 36,597 |
Regulatory assets | 46,541 | 20,150 |
Total current assets | 541,306 | 437,795 |
Regulatory assets | 1,300,554 | 1,429,840 |
Deferred charges and other assets, net | 172,236 | 141,955 |
Funds restricted for construction activity | 1,336 | 1,313 |
Goodwill | 2,340,792 | 2,340,815 |
Operating lease right-of-use assets | 43,095 | 48,930 |
Intangible assets | 4,795 | 5,764 |
Total assets | 15,279,792 | 14,658,278 |
Stockholders' equity: | ||
Common stock at $0.50 par value, authorized 600,000,000 shares, issued 265,530,007 and 256,102,388 as of September 30, 2022 and December 31, 2021 | 132,764 | 128,050 |
Capital in excess of par value | 3,723,523 | 3,705,814 |
Retained earnings | 1,570,652 | 1,434,201 |
Treasury stock, at cost, 3,239,286 and 3,234,765 shares as of September 30, 2022 and December 31, 2021 | (83,837) | (83,615) |
Total stockholders' equity | 5,343,102 | 5,184,450 |
Long-term debt, excluding current portion | 6,220,973 | 5,815,211 |
Less: debt issuance costs | 47,345 | 35,707 |
Long-term debt, excluding current portion, net of debt issuance costs | 6,173,628 | 5,779,504 |
Commitments and contingencies (See Note 13) | ||
Current liabilities: | ||
Current portion of long-term debt | 149,926 | 132,146 |
Loans payable | 213,235 | 65,000 |
Accounts payable | 217,597 | 192,932 |
Book overdraft | 17,396 | 81,722 |
Accrued interest | 75,305 | 40,815 |
Accrued taxes | 33,316 | 37,924 |
Regulatory liabilities | 1,196 | 384 |
Other accrued liabilities | 140,122 | 124,140 |
Total current liabilities | 848,093 | 675,063 |
Deferred credits and other liabilities: | ||
Deferred income taxes and investment tax credits | 1,304,548 | 1,406,537 |
Customers' advances for construction | 121,247 | 103,619 |
Regulatory liabilities | 771,734 | 769,617 |
Asset retirement obligations | 1,274 | 1,256 |
Operating lease liabilities | 39,657 | 48,230 |
Pension and other postretirement benefit liabilities | 54,309 | 50,226 |
Other | 25,929 | 43,666 |
Total deferred credits and other liabilities | 2,318,698 | 2,423,151 |
Contributions in aid of construction | 596,271 | 596,110 |
Total liabilities and equity | $ 15,279,792 | $ 14,658,278 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Consolidated Balance Sheets [Abstract] | ||
Common stock, par value | $ 0.50 | $ 0.50 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 265,530,007 | 256,102,388 |
Treasury stock, shares | 3,239,286 | 3,234,765 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations And Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Consolidated Statements Of Operations [Abstract] | ||||
Operating revenues | $ 434,618 | $ 361,860 | $ 1,582,649 | $ 1,342,457 |
Operating expenses: | ||||
Operations and maintenance | 151,361 | 139,355 | 428,923 | 391,945 |
Purchased gas | 52,041 | 25,488 | 354,896 | 202,538 |
Depreciation | 80,471 | 72,606 | 235,774 | 217,007 |
Amortization | 2,259 | 1,901 | 4,478 | 4,616 |
Taxes other than income taxes | 22,625 | 21,058 | 67,352 | 63,219 |
Total operating expenses | 308,757 | 260,408 | 1,091,423 | 879,325 |
Operating income | 125,861 | 101,452 | 491,226 | 463,132 |
Other expense (income): | ||||
Interest expense | 60,488 | 52,132 | 169,345 | 154,937 |
Interest income | (1,510) | (565) | (2,943) | (1,290) |
Allowance for funds used during construction | (5,812) | (6,082) | (17,802) | (13,922) |
Gain on sale of other assets | (299) | (320) | (777) | (623) |
Other | (441) | 4,019 | (2,566) | (1,393) |
Income before income taxes | 73,435 | 52,268 | 345,969 | 325,423 |
Provision for income taxes (benefit) | 4,797 | 1,765 | (4,336) | 10,317 |
Net income | 68,638 | 50,503 | 350,305 | 315,106 |
Comprehensive income | $ 68,638 | $ 50,503 | $ 350,305 | $ 315,106 |
Net income per common share: | ||||
Basic | $ 0.26 | $ 0.20 | $ 1.34 | $ 1.23 |
Diluted | $ 0.26 | $ 0.19 | $ 1.33 | $ 1.23 |
Average common shares outstanding during the period: | ||||
Basic | 262,213 | 258,773 | 262,089 | 256,051 |
Diluted | 262,754 | 259,437 | 262,641 | 256,763 |
Consolidated Statements Of Capi
Consolidated Statements Of Capitalization - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Stockholders' equity: | ||
Common stock, $0.50 par value | $ 132,764 | $ 128,050 |
Capital in excess of par value | 3,723,523 | 3,705,814 |
Retained earnings | 1,570,652 | 1,434,201 |
Treasury stock, at cost | (83,837) | (83,615) |
Total stockholders' equity | 5,343,102 | 5,184,450 |
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Long-term debt of subsidiaries | 3,045,899 | 3,061,887 |
Total long-term debt | 6,370,899 | 5,947,357 |
Current portion of long-term debt | 149,926 | 132,146 |
Long-term debt, excluding current portion | 6,220,973 | 5,815,211 |
Less: debt issuance costs | 47,345 | 35,707 |
Long-term debt, excluding current portion, net of debt issuance costs | 6,173,628 | 5,779,504 |
Total capitalization | 11,516,730 | 10,963,954 |
Long-Term Debt Of Subsidiaries 0.00% To 0.99% [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Long-term debt of subsidiaries | 1,875 | 2,341 |
Long-Term Debt Of Subsidiaries 1.00% To 1.99% [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Long-term debt of subsidiaries | 8,637 | 9,341 |
Long-Term Debt Of Subsidiaries 2.00% To 2.99% [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Long-term debt of subsidiaries | 310,613 | 312,751 |
Long-Term Debt Of Subsidiaries 3.00% To 3.99% [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Long-term debt of subsidiaries | 1,353,168 | 1,359,284 |
Long-Term Debt Of Subsidiaries 4.00% To 4.99% [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Long-term debt of subsidiaries | 1,281,330 | 1,286,024 |
Long-Term Debt Of Subsidiaries 5.00% To 5.99% [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Long-term debt of subsidiaries | 15,402 | 16,119 |
Long-Term Debt Of Subsidiaries 6.00% To 6.99% [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Long-term debt of subsidiaries | 32,388 | 32,475 |
Long-Term Debt Of Subsidiaries 7.00% To 7.99% [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Long-term debt of subsidiaries | 28,441 | 28,980 |
Long-Term Debt Of Subsidiaries 8.00% To 8.99% [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Long-term debt of subsidiaries | 2,245 | 2,772 |
Long-Term Debt Of Subsidiaries 9.00% To 9.99% [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Long-term debt of subsidiaries | 11,800 | 11,800 |
Revolving Credit Agreement, Due 2023 [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Notes payable to bank under revolving credit agreement, variable rate, due Dec 2023 | 260,000 | 300,000 |
Amortizing notes at 3.00% due 2022 [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Unsecured notes payable | 20,470 | |
Notes at 2.40% due 2031 [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Unsecured notes payable | 400,000 | 400,000 |
Notes at 2.704% due 2030 [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Unsecured notes payable | 500,000 | 500,000 |
Notes ranging from 3.01% to 3.59% due 2029 through 2050 [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Unsecured notes payable | 1,125,000 | 1,125,000 |
Notes at 4.28%, due 2049 [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Unsecured notes payable | 500,000 | 500,000 |
Notes at 5.30%, due 2052 | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Unsecured notes payable | 500,000 | |
Notes ranging from 5.64% to 5.95%, due 2022 through 2034 [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Unsecured notes payable | $ 40,000 | $ 40,000 |
Consolidated Statements Of Ca_2
Consolidated Statements Of Capitalization (Parenthetical) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Common stock, par value | $ 0.50 | $ 0.50 |
Revolving Credit Agreement, Due 2023 [Member] | ||
Maturity date | 2023 | 2023 |
Amortizing notes at 3.00% due 2022 [Member] | ||
Interest rate | 3% | 3% |
Maturity date | 2022 | 2022 |
Notes at 2.40% due 2031 [Member] | ||
Interest rate | 2.40% | 2.40% |
Maturity date | 2031 | 2031 |
Notes at 2.704% due 2030 [Member] | ||
Interest rate | 2.704% | 2.704% |
Maturity date | 2030 | 2030 |
Notes at 3.01% due 2029 [Member] | ||
Interest rate | 3.01% | 3.01% |
Maturity date | 2029 | 2029 |
Notes at 3.59% due 2050 [Member] | ||
Interest rate | 3.59% | 3.59% |
Maturity date | 2050 | 2050 |
Notes at 4.28%, due 2049 [Member] | ||
Interest rate | 4.28% | 4.28% |
Maturity date | 2049 | 2049 |
Notes at 5.30%, due 2052 | ||
Interest rate | 5.30% | 5.30% |
Maturity date | 2052 | 2052 |
Notes at 5.64% due 2022 [Member] | ||
Interest rate | 5.64% | 5.64% |
Maturity date | 2022 | 2022 |
Notes at 5.95% due 2034 [Member] | ||
Interest rate | 5.95% | 5.95% |
Maturity date | 2034 | 2034 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 0.00% To 0.99% [Member] | ||
Interest rate | 0% | 0% |
Maturity date | 2023 | 2023 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 1.00% To 1.99% [Member] | ||
Interest rate | 1% | 1% |
Maturity date | 2023 | 2023 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 2.00% To 2.99% [Member] | ||
Interest rate | 2% | 2% |
Maturity date | 2022 | 2022 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 3.00% To 3.99% [Member] | ||
Interest rate | 3% | 3% |
Maturity date | 2022 | 2022 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 4.00% To 4.99% [Member] | ||
Interest rate | 4% | 4% |
Maturity date | 2023 | 2023 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 5.00% To 5.99% [Member] | ||
Interest rate | 5% | 5% |
Maturity date | 2023 | 2023 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 6.00% To 6.99% [Member] | ||
Interest rate | 6% | 6% |
Maturity date | 2022 | 2022 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 7.00% To 7.99% [Member] | ||
Interest rate | 7% | 7% |
Maturity date | 2022 | 2022 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 8.00% To 8.99% [Member] | ||
Interest rate | 8% | 8% |
Maturity date | 2025 | 2025 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 9.00% To 9.99% [Member] | ||
Interest rate | 9% | 9% |
Maturity date | 2026 | 2026 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 0.00% To 0.99% [Member] | ||
Interest rate | 0.99% | 0.99% |
Maturity date | 2033 | 2033 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 1.00% To 1.99% [Member] | ||
Interest rate | 1.99% | 1.99% |
Maturity date | 2039 | 2039 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 2.00% To 2.99% [Member] | ||
Interest rate | 2.99% | 2.99% |
Maturity date | 2057 | 2057 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 3.00% To 3.99% [Member] | ||
Interest rate | 3.99% | 3.99% |
Maturity date | 2056 | 2056 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 4.00% To 4.99% [Member] | ||
Interest rate | 4.99% | 4.99% |
Maturity date | 2059 | 2059 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 5.00% To 5.99% [Member] | ||
Interest rate | 5.99% | 5.99% |
Maturity date | 2052 | 2052 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 6.00% To 6.99% [Member] | ||
Interest rate | 6.99% | 6.99% |
Maturity date | 2036 | 2036 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 7.00% To 7.99% [Member] | ||
Interest rate | 7.99% | 7.99% |
Maturity date | 2027 | 2027 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 8.00% To 8.99% [Member] | ||
Interest rate | 8.99% | 8.99% |
Maturity date | 2025 | 2025 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 9.00% To 9.99% [Member] | ||
Interest rate | 9.99% | 9.99% |
Maturity date | 2026 | 2026 |
Consolidated Statements Of Equi
Consolidated Statements Of Equity - USD ($) $ in Thousands | Common Stock [Member] | Capital In Excess Of Par Value [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2020 | $ 124,285 | $ 3,379,057 | $ 1,261,862 | $ (81,327) | $ 4,683,877 |
Net income | 183,689 | 183,689 | |||
Dividends declared and paid | (61,520) | (61,520) | |||
Issuance of common stock under dividend reinvestment plan | 49 | 4,112 | 4,161 | ||
Repurchase of stock | (3,262) | (3,262) | |||
Equity compensation plan | 97 | (97) | |||
Exercise of stock options | 10 | 704 | 714 | ||
Stock-based compensation | 2,631 | (174) | 2,457 | ||
Other | (31) | 256 | 225 | ||
Balance at Mar. 31, 2021 | 124,441 | 3,386,376 | 1,383,857 | (84,333) | 4,810,341 |
Balance at Dec. 31, 2020 | 124,285 | 3,379,057 | 1,261,862 | (81,327) | 4,683,877 |
Net income | 315,106 | ||||
Balance at Sep. 30, 2021 | 127,990 | 3,698,095 | 1,385,631 | (83,854) | 5,127,862 |
Balance at Mar. 31, 2021 | 124,441 | 3,386,376 | 1,383,857 | (84,333) | 4,810,341 |
Net income | 80,914 | 80,914 | |||
Dividends declared and paid | (61,584) | (61,584) | |||
Issuance of common stock under dividend reinvestment plan | 46 | 4,049 | 4,095 | ||
Repurchase of stock | (17) | (17) | |||
Equity compensation plan | 2 | (2) | |||
Exercise of stock options | 11 | 781 | 792 | ||
Stock-based compensation | 2,316 | (146) | 2,170 | ||
Other | (148) | 252 | 104 | ||
Balance at Jun. 30, 2021 | 124,500 | 3,393,372 | 1,403,041 | (84,098) | 4,836,815 |
Net income | 50,503 | 50,503 | |||
Dividends declared and paid | (67,758) | (67,758) | |||
Issuance of common stock from stock purchase contracts | 64 | (64) | |||
Issuance of common stock under dividend reinvestment plan | 46 | 4,295 | 4,341 | ||
Issuance of common stock from forward equity sale agreement | 3,350 | 296,389 | 299,739 | ||
Repurchase of stock | (8) | (8) | |||
Equity compensation plan | 2 | (2) | |||
Exercise of stock options | 28 | 1,759 | 1,787 | ||
Stock-based compensation | 2,328 | (155) | 2,173 | ||
Other | 18 | 252 | 270 | ||
Balance at Sep. 30, 2021 | 127,990 | 3,698,095 | 1,385,631 | (83,854) | 5,127,862 |
Retained earnings | 1,434,201 | ||||
Balance at Dec. 31, 2021 | 128,050 | 3,705,814 | 1,434,201 | (83,615) | 5,184,450 |
Net income | 199,376 | 199,376 | |||
Dividends declared and paid | (67,821) | (67,821) | |||
Dividends declared | (67,863) | (67,863) | |||
Issuance of common stock under dividend reinvestment plan | 47 | 4,070 | 4,117 | ||
Repurchase of stock | (1,012) | (1,012) | |||
Equity compensation plan | 29 | (29) | |||
Exercise of stock options | 14 | 998 | 1,012 | ||
Stock-based compensation | 2,716 | (136) | 2,580 | ||
Other | (9) | 270 | 261 | ||
Balance at Mar. 31, 2022 | 128,140 | 3,713,560 | 1,497,757 | (84,357) | 5,255,100 |
Balance at Dec. 31, 2021 | 128,050 | 3,705,814 | 1,434,201 | (83,615) | 5,184,450 |
Net income | 350,305 | ||||
Balance at Sep. 30, 2022 | 132,764 | 3,723,523 | 1,570,652 | (83,837) | 5,343,102 |
Balance at Mar. 31, 2022 | 128,140 | 3,713,560 | 1,497,757 | (84,357) | 5,255,100 |
Net income | 82,291 | 82,291 | |||
Dividends declared and paid | (2,424) | (2,424) | |||
Issuance of common stock from stock purchase contracts | 4,515 | (4,515) | |||
Issuance of common stock under dividend reinvestment plan | 47 | 4,007 | 4,054 | ||
Repurchase of stock | (15) | (15) | |||
Equity compensation plan | 2 | (2) | |||
Exercise of stock options | 3 | 224 | 227 | ||
Stock-based compensation | 2,725 | (182) | 2,543 | ||
Other | (24) | 280 | 256 | ||
Balance at Jun. 30, 2022 | 132,707 | 3,715,975 | 1,577,442 | (84,092) | 5,342,032 |
Net income | 68,638 | 68,638 | |||
Dividends declared and paid | (75,246) | (75,246) | |||
Issuance of common stock under dividend reinvestment plan | 44 | 4,206 | 4,250 | ||
Repurchase of stock | (29) | (29) | |||
Equity compensation plan | 3 | (3) | |||
Exercise of stock options | 10 | 660 | 670 | ||
Stock-based compensation | 2,702 | (182) | 2,520 | ||
Other | (17) | 284 | 267 | ||
Balance at Sep. 30, 2022 | $ 132,764 | $ 3,723,523 | $ 1,570,652 | $ (83,837) | 5,343,102 |
Retained earnings | $ 1,570,652 |
Consolidated Statements Of Eq_2
Consolidated Statements Of Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Consolidated Statements Of Equity (Parenthetical) [Abstract] | ||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.2870 | $ 0.2682 | $ 0.2682 | $ 0.2682 | $ 0.2507 | |
Dividend declared per common share | $ 0.2682 | $ 0.2507 | ||||
Issuance of common stock from stock purchase contracts , shares | 9,029,461 | 127,749 | ||||
Issuance of common stock under dividend reinvestment plan, shares | 89,123 | 92,889 | 93,833 | 92,993 | 90,654 | 98,904 |
Issuance of common stock from forward equity sale agreement , shares | 6,700,000 | |||||
Repurchase of stock, shares | 604 | 305 | 21,290 | 176 | 364 | 76,105 |
Equity compensation plan, shares | 6,555 | 4,736 | 57,052 | 5,337 | 4,874 | 192,407 |
Exercise of stock options, shares | 18,992 | 6,462 | 28,516 | 54,672 | 22,786 | 20,201 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flow - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 350,305 | $ 315,106 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation and amortization | 240,252 | 221,623 |
Deferred income taxes | (12,794) | 12,645 |
Provision for doubtful accounts | 18,519 | 21,220 |
Stock-based compensation | 8,164 | 7,343 |
Gain on sale of other assets | (777) | (1,208) |
Net change in receivables, inventory and prepayments | (116,804) | (20,488) |
Net change in payables, accrued interest, accrued taxes and other accrued liabilities | 65,845 | 16,181 |
Pension and other postretirement benefits contributions | (20,390) | (15,109) |
Other | (13,161) | 4,539 |
Net cash flows from operating activities | 519,159 | 561,852 |
Cash flows from investing activities: | ||
Property, plant and equipment additions, including the debt component of allowance for funds used during construction of $4,527 and $2,885 | (719,688) | (675,845) |
Acquisitions of utility systems, net | (104,383) | (36,325) |
Net proceeds from the sale of other assets | 797 | 1,420 |
Other | 205 | (120) |
Net cash flows used in investing activities | (823,069) | (710,870) |
Cash flows from financing activities: | ||
Customers' advances and contributions in aid of construction | 10,732 | 12,473 |
Repayments of customers' advances | (1,726) | (3,091) |
Net proceeds (repayments) of short-term debt | 148,235 | (31,616) |
Proceeds from long-term debt | 944,882 | 795,153 |
Repayments of long-term debt | (521,792) | (717,816) |
Change in cash overdraft position | (64,326) | (23,255) |
Proceeds from issuance of common stock under dividend reinvestment plan | 12,421 | 12,597 |
Proceeds from issuance of common stock from forward equity sale agreement | 299,739 | |
Proceeds from exercised stock options | 1,909 | 3,293 |
Repurchase of common stock | (1,056) | (3,287) |
Dividends paid on common stock | (213,354) | (190,862) |
Other | 784 | 599 |
Net cash flows from financing activities | 316,709 | 153,927 |
Net change in cash and cash equivalents | 12,799 | 4,909 |
Cash and cash equivalents at beginning of period | 10,567 | 4,827 |
Cash and cash equivalents at end of period | 23,366 | 9,736 |
Non-cash investing activities: | ||
Property, plant and equipment additions purchased at the period end, but not yet paid for | 97,777 | 78,727 |
Non-cash customer advances and contributions in aid of construction | $ 21,736 | $ 30,075 |
Consolidated Statements Of Ca_3
Consolidated Statements Of Cash Flow (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Consolidated Statements Of Cash Flow [Abstract] | ||
Debt component of allowance for funds used during construction | $ 4,527 | $ 2,885 |
Basis Of Presentation
Basis Of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Basis Of Presentation [Abstract] | |
Basis Of Presentation | Note 1 – Basis of Presentation The accompanying unaudited consolidated balance sheets and statements of capitalization of Essential Utilities, Inc. and subsidiaries (collectively, the “Company”, “we”, “us” or “our”) at September 30, 2022, the unaudited consolidated statements of operations and comprehensive income for the three and nine months ended September 30, 2022 and 2021, and the consolidated statements of cash flows and of equity for the nine months ended September 30, 2022 and 2021, have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim reporting and the rules and regulations for reporting on Quarterly Reports on Form 10-Q. Because they cover interim periods, the statements and related notes to the financial statements do not include all disclosures and notes normally provided in annual financial statements and, therefore, should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments, consisting of only recurring accruals, which are necessary to present a fair statement of its consolidated balance sheets, consolidated statements of equity, consolidated statements of operations and comprehensive income, and consolidated cash flow for the periods presented, have been made. The preparation of financial statements often requires the selection of specific accounting methods and policies. Further, significant estimates and judgments may be required in selecting and applying those methods and policies in the recognition of the assets and liabilities in its consolidated balance sheets, the revenues and expenses in its consolidated statements of operations and comprehensive income, and the information that is contained in its summary of significant accounting policies and notes to consolidated financial statements. Making these estimates and judgments requires the analysis of information concerning events that may not yet be complete and of facts and circumstances that may change over time. Accordingly, actual amounts or future results can differ materially from those estimates that the Company includes currently in its consolidated financial statements, summary of significant accounting policies, and notes. In the preparation of these financial statements and related disclosures, we have assessed the impact that the ongoing COVID-19 pandemic and the global geopolitical uncertainties (“major events”) have had on our estimates, assumptions, forecasts, and accounting policies. Because of the essential nature of our business, we do not believe these major events had a material impact on our estimates, assumptions and forecasts used in the preparation of our financial statements, although we continue to monitor this closely. As these major events are continuing to evolve, future events and effects related to these major events cannot be determined with precision, and actual results could significantly differ from our estimates or forecasts. There have been no changes to the summary of significant accounting policies previously identified in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2022 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 2 – Revenue Recognition The following table presents our revenues disaggregated by major source and customer class: Three Months Ended Three Months Ended September 30, 2022 September 30, 2021 Water Revenues Wastewater Revenues Natural Gas Revenues Other Revenues Water Revenues Wastewater Revenues Natural Gas Revenues Other Revenues Revenues from contracts with customers: Residential $ 173,798 32,806 65,631 - $ 148,247 $ 25,147 $ 49,838 $ - Commercial 49,026 8,769 15,180 - 42,318 5,839 9,534 - Fire protection 9,934 - - - 8,866 - - - Industrial 9,291 466 990 - 8,217 401 415 - Gas transportation & storage - - 26,824 - - - 27,794 - Other water 11,920 - - - 14,539 - - - Other wastewater - 2,175 - - - 2,495 - - Other utility - - 11,096 2,362 - - 7,488 3,241 Revenues from contracts with customers 253,969 44,216 119,721 2,362 222,187 33,882 95,069 3,241 Alternative revenue program 669 60 - - 527 22 - - Other and eliminations 545 - - 13,076 - - - 6,932 Consolidated $ 255,183 $ 44,276 $ 119,721 $ 15,438 $ 222,714 $ 33,904 $ 95,069 $ 10,173 Nine Months Ended Nine Months Ended September 30, 2022 September 30, 2021 Water Revenues Wastewater Revenues Natural Gas Revenues Other Revenues Water Revenues Wastewater Revenues Natural Gas Revenues Other Revenues Revenues from contracts with customers: Residential $ 454,628 89,954 446,679 - $ 425,519 $ 73,820 $ 347,790 $ - Commercial 125,171 21,807 91,073 - 113,473 16,102 65,404 - Fire protection 28,674 - - - 26,830 - - - Industrial 24,076 1,242 3,789 - 22,954 1,256 1,894 - Gas transportation & storage - - 146,571 - - - 143,387 - Other water 45,170 - - - 37,696 - - - Other wastewater - 8,180 - - - 6,808 - - Other utility - 46,162 8,602 - - 22,639 10,556 Revenues from contracts with customers 677,719 121,183 734,274 8,602 626,472 97,986 581,114 10,556 Alternative revenue program 2,393 ( 128 ) - - 1,357 18 206 - Other and eliminations - - - 38,606 - - - 24,748 Consolidated $ 680,112 $ 121,055 $ 734,274 $ 47,208 $ 627,829 $ 98,004 $ 581,320 $ 35,304 |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2022 | |
Acquisitions [Abstract] | |
Acquisitions | Note 3 – Acquisitions Water and Wastewater Utility Acquisitions - Completed In August 2022, the Company acquired the municipal wastewater assets of East Whiteland Township, Chester County, Pennsylvania, which serves approximately 3,895 customers, for a cash purchase price of $ 54,374 . In March 2022, the Company acquired the wastewater system of Lower Makefield Township, which serves approximately 11,000 customer connections in Lower Makefield, Falls and Middletown townships, and Yardley Borough, Bucks County, Pennsylvania, for a cash purchase price of $ 53,000 . In August 2021, the Company acquired the water utility system assets of The Commons Water Supply, Inc., which serves 992 customers in Harris County, Texas, and the wastewater utility system assets of the Village of Bourbonnais, which serves approximately 6,500 customers in Kankakee County, Illinois. The total cash purchase prices for these utility systems were $ 4,000 and $ 32,100 , respectively. The purchase price allocation for these acquisitions consisted primarily of acquired property, plant and equipment. The pro forma effect of the utility systems acquired is not material either individually or collectively to the Company’s results of operations. Water and Wastewater Utility Acquisitions – Pending Completion In August 2022, the Company entered into a purchase agreement to acquire a portion of the water and wastewater utility assets of the Village of Frankfort, an Illinois municipality, which serves approximately 1,422 customers for $ 1,400 . In July 2022, the Company’s subsidiary, Aqua Pennsylvania Wastewater, was granted a one-year exclusivity agreement by the board of the Bucks County Water and Sewer Authority (“BCWSA”) regarding the sale of the county’s wastewater assets. Aqua Pennsylvania Wastewater made an offer to purchase the BCWSA’s wastewater assets for a purchase price of $ 885,000 plus adjustments for additional utility assets acquired by BCWSA, and capital expenditures prior to closing. In September 2022, the BCWSA board voted to cease discussions on the sale of its wastewater assets. In December 2021, the Company entered into a purchase agreement to acquire the water utility assets of the Southern Oaks Water System, which serves approximately 740 customers for $ 3,300 . In October 2021, the Company entered into a purchase agreement to acquire the wastewater utility assets of the City of Beaver Falls, Pennsylvania which consists of approximately 7,600 customers for $ 41,250 . In July 2021, the Company entered into a purchase agreement to acquire the water utility assets of Shenandoah Borough, Pennsylvania which consists of approximately 2,930 customers for $ 12,000 . In April 2021, the Company entered into a purchase agreement to acquire certain water or wastewater utility assets of Oak Brook, Illinois which consists of approximately 4,000 customers for $ 12,500 . In January 2021, the Company entered into a purchase agreement to acquire the wastewater utility system assets of Willistown Township, Pennsylvania, which consist of approximately 2,300 customers, for $ 17,500 . The purchase price for these pending acquisitions are subject to certain adjustments at closing, and are subject to regulatory approval, including the final determination of the fair value of the rate base acquired. We plan to finance the purchase price of these acquisitions by utilizing our revolving credit facility until permanent debt and common equity are secured. The closing of our Oak Brook acquisition is expected to occur during the fourth quarter of 2022, and the rest of the pending acquisitions are expected to close in 2023. Closing for our utility acquisitions are subject to the timing of the respective regulatory approval processes. DELCORA Purchase Agreement In September 2019, the Company entered into a purchase agreement to acquire the wastewater utility system assets of the Delaware County Regional Water Quality Control Authority (“DELCORA”), which consists of approximately 16,000 customers, or the equivalent of 198,000 retail customers, in 42 municipalities in Southeast Pennsylvania for $ 276,500 . In May 2020, Delaware County, Pennsylvania filed a lawsuit alleging that DELCORA does not have the legal authority to establish and fund a customer trust with the net proceeds of the transaction. In December 2020, the judge in the Delaware County Court lawsuit issued an order that (1) the County cannot interfere with the purchase agreement between DELCORA and the Company; (2) the County cannot terminate DELCORA prior to the closing of the transaction; and (3) the establishment of the customer trust was valid. Delaware County appealed this decision to Commonwealth Court of Pennsylvania. On March 3, 2022, the Commonwealth Court issued a decision finding that Delaware County can dissolve the Authority if it so chooses, but the purchase agreement must be upheld regardless of who is operating the system. The case was remanded back to the trial court for the entry of an order consistent with the Commonwealth Court’s opinion. On November 2, 2022, the Delaware County Court of Common Pleas denied Delaware County’s Application for Determination of Finality and indicated that its previous order already constituted a final order that addressed the claims of all parties. The administrative law judges in the regulatory approval process recommended that the Company’s application be denied, and subsequently, the Company provided exceptions to the recommended decision. On March 30, 2021, the Pennsylvania Public Utility Commission (“PUC”) ruled that the case be remanded back to the Office of Administrative Law Judge (“ALJ”) and vacated the original administrative law judges’ recommended decision (“2021 Order”). This 2021 Order was also appealed to the Commonwealth Court by Delaware County, and a decision is expected in the next several months. After the PUC issued the 2021 Order, on April 16, 2021, the administrative law judge issued an order staying the proceeding until the Delaware County Court lawsuit is final and unappealable. On March 25, 2022, the Company sent a letter notifying the PUC of the March 3, 2022 Commonwealth Court decision and requested that the PUC move forward with processing the application. Several parties responded to the Company’s letter and referenced the issues in the second appeal before Commonwealth Court regarding the 2021 Order. On July 14, 2022, the Commission moved to lift the stay imposed by the ALJ, and required the ALJ to establish a schedule on remand for the proceeding. The published procedural schedule has the proceeding concluding in June 2023. The purchase price for this pending acquisition is subject to certain adjustments at closing, and is subject to regulatory approval, including the final determination of the fair value of the rate base acquired. We plan to finance the purchase price of this acquisition by the issuance of common stock and by utilizing our revolving credit facility until permanent debt is secured. Closing of our acquisition of DELCORA is expected to occur in 2023, subject to the timing of the regulatory approval process and Delaware County’s on-going litigation. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill [Abstract] | |
Goodwill | Note 4 – Goodwill The following table summarizes the changes in the Company’s goodwill, by business segment: Regulated Water Regulated Natural Gas Other Consolidated Balance at December 31, 2021 $ 58,527 $ 2,277,447 $ 4,841 $ 2,340,815 Reclassification to utility plant acquisition adjustment ( 23 ) - - ( 23 ) Balance at September 30, 2022 $ 58,504 $ 2,277,447 $ 4,841 $ 2,340,792 The reclassification of goodwill to utility plant acquisition adjustment results from a mechanism approved by the applicable utility commission. The mechanism provides for the transfer over time, and the recovery through customer rates, of goodwill associated with some acquisitions upon achieving specific objectives. As of July 31, 2022, the Company performed a qualitative assessment for its annual test of the goodwill attributable for each of its reporting units for impairment. The qualitative factors we consider include, in part, the general macroeconomic environment, industry and market specific conditions for each reporting unit, financial performance including actual versus planned results, operating costs and cost impacts, as well as issues or events specific to the reporting unit. The results of the qualitative analysis indicated that it was more-likely-than-not that the fair value of each of our reporting units exceeded their carrying value and that no ne of the Company’s goodwill was impaired. The estimated fair value of each reporting unit is derived from valuation techniques that require significant judgment and estimates. Adverse regulatory actions or changes in significant assumptions, including discount and growth rates, utility sector market performance and comparable transaction multiples, and projected operating and capital cash flows, could potentially result in future impairments. |
Capitalization
Capitalization | 9 Months Ended |
Sep. 30, 2022 | |
Capitalization [Abstract] | |
Capitalization | Note 5 – Capitalization At-the-Market Offering On October 14, 2022, the Company entered into at-the market sales agreements (“ATM”) with third-party sales agents, under which the Company may offer and sell shares of its common stock, from time to time, at its option, having an aggregate gross offering price of up to $ 500,000 pursuant to the Company’s effective shelf registration statement on Form S-3 (File No. 333-255235). The Company intends to use the net proceeds from the sales of shares through the ATM for working capital, capital expenditures, water and wastewater utility acquisitions and repaying outstanding indebtedness . As of the date of this report, the Company has not sold any shares under the ATM. Forward Equity Sale In August 2020, the Company entered into a forward equity sale agreement for 6,700,000 shares of common stock with a third party (the “forward purchaser”). In connection with the forward equity sale agreement, the forward purchaser borrowed an equal number of shares of the Company’s common stock from stock lenders and sold the borrowed shares to the public. The Company did not receive any proceeds from the sale of its common stock by the forward purchaser until settlement of the shares underlying the forward equity sale agreement. The actual proceeds to be received by the Company would have varied depending upon the settlement date, the number of shares designated for settlement on that settlement date, and the method of settlement. The forward equity sale agreement was accounted for as an equity instrument and was recorded at a fair value of $ 0 at inception. The fair value was not adjusted as the Company continued to meet the accounting requirements for equity instruments. On August 9, 2021, the Company settled the forward equity sale agreement in full by physical share settlement. The Company issued 6,700,000 shares and received cash proceeds of $ 299,739 at a forward price of $ 44.74 per share. Pursuant to the agreement, the forward price was computed based upon the initial forward price of $ 46.00 per share, adjusted for a floating interest rate factor equal to a specified daily rate less a spread and scheduled dividends during the term of the agreement. The Company used the proceeds received upon settlement of the forward equity sale agreement to fund general corporate purposes, including for water and wastewater utility acquisitions, working capital and capital expenditures. The forward equity sale agreement has now been completely settled, and there are no additional shares subject to the forward equity sale agreement. Tangible Equity Units On April 23, 2019, the Company issued $ 690,000 , less expenses of $ 16,358 , of its tangible equity units (the “Units”), with a stated amount of $ 50.00 per unit. This issuance was part of the permanent financing to close the Peoples Gas Acquisition. Each Unit consisted of a prepaid stock purchase contract and an amortizing note, each issued by the Company. The amortizing notes had an initial principal amount of $ 8.62909 , or $ 119,081 in aggregate, and yielded interest at a rate of 3.00 % per year, and paid equal quarterly per unit cash installments of $ 0.75 per amortizing note (except for the July 30, 2019 installment payment, which was $ 0.80833 per amortizing note), that constituted a payment of interest and a partial repayment of principal. This cash payment in the aggregate was equivalent to 6.00 % per year with respect to each $ 50.00 stated amount of the Units. The amortizing notes represented unsecured senior obligations of the Company. Certain holders of the tangible equity units had early settled their prepaid stock purchase contracts prior to the due date, and, in exchange, the Company issued shares of its common stock. During April 2022, 981,919 stock purchase contracts were early settled by the holders of the contracts, resulting in the issuance of 1,166,107 shares of the Company’s common stock. On May 2, 2022, the remaining 6,621,315 stock purchase contracts were each mandatorily settled for 1.18758 shares of the Company’s common stock, and in the aggregate the Company issued 7,863,354 shares of its common stock. Additionally, the final quarterly installment payment was made, which resulted in the complete pay-off of the amortizing notes. Long-term Debt and Loans Payable In October 2022, Aqua Pennsylvania issued $ 125,000 of first mortgage bonds due in 2052 with interest rates of 4.50 %. The proceeds from these bonds were used to repay existing indebtedness and for general corporate purposes. On May 20, 2022, the Company issued $ 500,000 of long-term debt (the “Senior Notes”), less expenses of $ 5,815 , due in 2052 with an interest rate of 5.30 %. The Company used the net proceeds from the issuance of Senior Notes to (1) to repay $ 49,700 of borrowings under the Aqua Pennsylvania’s 364-day revolving credit facility and $ 410,000 of borrowings under the Company’s existing five year unsecured revolving credit facility, and (2) for general corporate purposes. On June 30, 2022, the following debt amendments were executed: (1) Peoples Natural Gas Companies amended its 364-day revolving credit agreement primarily to increase the amount of the facility from $ 100,000 to $ 300,000 and to update the termination date of the facility to June 29, 2023 , and (2) Aqua Pennsylvania amended its 364-day revolving credit agreement primarily to update the termination date of the facility to June 29, 2023 to coincide with the term of the Peoples Natural Gas Companies’ facility. On April 15, 2021, the Company’s operating subsidiary, Aqua Ohio, Inc., issued $ 100,000 of first mortgage bonds, of which $ 50,000 is due in 2031 and $ 50,000 is due in 2051, with interest rates of 2.37 % and 3.35 %, respectively. The proceeds from these bonds were used for general corporate purposes and to repay existing indebtedness. Further, on April 19, 2021, the Company issued $ 400,000 of long-term debt, less expenses of $ 4,010 , which is due in 2031, with an interest rate of 2.40 %. The Company used the proceeds from this issuance to repay $ 50,000 of borrowings under the Aqua Pennsylvania revolving credit facility, and the balance was used to repay in full the borrowings under its existing five year unsecured revolving credit agreement. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Financial Instruments [Abstract] | |
Financial Instruments | Note 6 – Financial Instruments Financial instruments are recorded at carrying value in the financial statements and approximate fair value as of the dates presented. The fair value of these instruments is disclosed below in accordance with current accounting guidance related to financial instruments. There have been no changes in the valuation techniques used to measure fair value, or asset or liability transfers between the levels of the fair value hierarchy for the three and nine months ended September 30, 2022 and 2021. The fair value of loans payable is determined based on its carrying amount and utilizing Level 1 methods and assumptions. As of September 30, 2022 and December 31, 2021, the carrying amount of the Company’s loans payable was $ 213,235 and $ 65,000 , respectively, which equates to their estimated fair value. The fair value of cash and cash equivalents, is determined based on Level 1 methods and assumptions. As of September 30, 2022 and December 31, 2021, the carrying amounts of the Company's cash and cash equivalents was $ 23,366 and $ 10,567 , respectively, which equates to their fair value. The Company’s assets underlying the deferred compensation and non-qualified pension plans are determined by the fair value of mutual funds, which are based on quoted market prices from active markets utilizing Level 1 methods and assumptions. As of September 30, 2022 and December 31, 2021, the carrying amount of these securities was $ 24,717 and $ 28,576 , respectively, which equates to their fair value, and is reported in the consolidated balance sheet in deferred charges and other assets. Unrealized gain and losses on equity securities held in conjunction with our non-qualified pension plan is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Net gain (loss) recognized during the period on equity securities $ ( 257 ) $ 196 $ ( 994 ) $ 695 Less: net gain / loss recognized during the period on equity securities sold during the period - - - - Unrealized gain (loss) recognized during the reporting period on equity securities still held at the reporting date $ ( 257 ) $ 196 $ ( 994 ) $ 695 The net gain (loss) recognized on equity securities is presented on the consolidated statements of operations and comprehensive income on the line item “Other.” The carrying amounts and estimated fair values of the Company’s long-term debt is as follows: September 30, December 31, 2022 2021 Carrying amount $ 6,370,899 $ 5,947,357 Estimated fair value 5,268,656 6,482,499 The fair value of long-term debt has been determined by discounting the future cash flows using current market interest rates for similar financial instruments of the same duration utilizing Level 2 methods and assumptions. The Company’s customers’ advances for construction have a carrying value of $ 121,247 as of September 30, 2022, and $ 103,619 as of December 31, 2021. Their relative fair values cannot be accurately estimated because future refund payments depend on several variables, including new customer connections, customer consumption levels, and future rates. Portions of these non-interest-bearing instruments are payable annually through 2032, and amounts not paid by the respective contract expiration dates become non-refundable. The fair value of these amounts would, however, be less than their carrying value due to the non-interest-bearing feature. |
Net Income Per Common Share
Net Income Per Common Share | 9 Months Ended |
Sep. 30, 2022 | |
Net Income Per Common Share [Abstract] | |
Net Income Per Common Share | Note 7 – Net Income per Common Share Basic net income per common share is based on the weighted average number of common shares outstanding and the weighted average minimum number of shares issued upon settlement of the stock purchase contracts issued under the tangible equity units. Diluted net income per common share is based on the weighted average number of common shares outstanding and potentially dilutive shares. The dilutive effect of employee stock-based compensation and shares issuable under the forward equity sale agreement (from the date the Company entered into the forward equity sale agreement to the settlement date) are included in the computation of diluted net income per common share. The dilutive effect of stock-based compensation and shares issuable under the forward equity sale agreement are calculated using the treasury stock method and expected proceeds upon exercise or issuance of the stock-based compensation and settlement of the forward equity sale agreement. The treasury stock method assumes that the proceeds from stock-based compensation and settlement of the forward equity sale agreement are used to purchase the Company’s common stock at the average market price during the period. The following table summarizes the shares, in thousands, used in computing basic and diluted net income per common share: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Average common shares outstanding during the period for basic computation 262,213 258,773 262,089 256,051 Effect of dilutive securities: Forward equity sale agreement - 223 - 216 Tangible equity units - - - - Employee stock-based compensation 541 441 552 496 Average common shares outstanding during the period for diluted computation 262,754 259,437 262,641 256,763 On May 2, 2022, all of the remaining stock purchase contracts under the tangible equity units were mandatorily settled. For the nine months ended September 30, 2022, the weighted average impact of 3,920,087 shares were included in the basic computation of the average common shares outstanding based on the number of shares that were issued upon settlement of the stock purchase contracts under the tangible equity units. For the three and nine months ended September 30, 2021, the minimum settlement amount of the stock purchase contracts under the tangible equity units of 9,022,040 and 9,067,879 shares, respectively, were considered outstanding for the basic computation of the average common shares outstanding. The number of outstanding employee stock options that were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive was 81,729 for the three and nine months ended September 30, 2022. For the three and nine months ended September 30, 2021, all of the Company’s outstanding employee stock options were included in the calculations of diluted net income per share as there were no anti-dilutive employee stock options. Additionally, the dilutive effect of performance share units and restricted share units granted are included in the Company’s calculation of diluted net income per share. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 8 – Stock-based Compensation Under the Company’s Amended and Restated Equity Compensation Plan (the “Plan”) approved by the Company’s shareholders on May 2, 2019, to replace the 2004 Equity Compensation Plan, stock options, stock units, stock awards, stock appreciation rights, dividend equivalents, and other stock-based awards may be granted to employees, non-employee directors, and consultants and advisors. The Plan authorizes 6,250,000 shares for issuance under the Plan. A maximum of 3,125,000 shares under the Plan may be issued pursuant to stock awards, stock units and other stock-based awards, subject to adjustment as provided in the Plan. During any calendar year, no individual may be granted (i) stock options and stock appreciation rights under the Plan for more than 500,000 shares of Company stock in the aggregate or (ii) stock awards, stock units or other stock-based awards under the Plan for more than 500,000 shares of Company stock in the aggregate, subject to adjustment as provided in the Plan. Awards to employees and consultants under the Plan are made by a committee of the Board of Directors of the Company, except that with respect to awards to the Chief Executive Officer, the committee recommends those awards for approval by the non-employee directors of the Board of Directors. In the case of awards to non-employee directors, the Board of Directors makes such awards. At September 30, 2022, 1,819,515 shares were still available for issuance under the Plan. No further grants may be made under the Company’s 2004 Equity Compensation Plan. Performance Share Units – A performance share unit (“PSU”) represents the right to receive a share of the Company’s common stock if specified performance goals are met over the three year performance period specified in the grant, subject to exceptions through the respective vesting period, which is generally three years . Each grantee is granted a target award of PSUs and may earn between 0 % and 200 % of the target amount depending on the Company’s performance against the performance goals. The following table provides compensation expense for PSUs: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Stock-based compensation within operations and maintenance expenses $ 1,676 $ 1,285 $ 5,018 $ 4,216 Income tax benefit 309 365 1,261 1,191 The following table summarizes the PSU transactions for the nine months ended September 30, 2022: Number Weighted of Average Share Units Fair Value Nonvested share units at beginning of period 355,384 $ 42.19 Granted 160,245 42.31 Forfeited ( 31,278 ) 44.26 Nonvested share units at end of period 484,351 42.34 A portion of the fair value of PSUs was estimated at the grant date based on the probability of satisfying the market-based conditions using the Monte Carlo valuation method, which assesses probabilities of various outcomes of market conditions. The other portion of the fair value of the PSUs is based on the fair market value of the Company’s stock at the grant date, regardless of whether the market-based condition is satisfied. The per unit weighted-average fair value at the date of grant for PSUs granted during the nine months ended September 30, 2022 and 2021 was $ 42.31 and $ 43.18 , respectively. The fair value of each PSU grant is amortized monthly into compensation expense on a straight-line basis over their respective vesting periods, generally 36 months. The accrual of compensation costs is based on the Company’s estimate of the final expected value of the award and is adjusted as required for the portion based on the performance-based condition. The Company assumes that forfeitures will be minimal, and recognizes forfeitures as they occur, which results in a reduction in compensation expense. As the payout of the PSUs includes dividend equivalents, no separate dividend yield assumption is required in calculating the fair value of the PSUs. The recording of compensation expense for PSUs has no impact on net cash flows. Restricted Stock Units – A restricted stock unit (“RSU”) represents the right to receive a share of the Company’s common stock. RSUs are eligible to be earned at the end of a specified restricted period, which is generally three years , beginning on the date of grant. The Company assumes that forfeitures will be minimal and recognizes forfeitures as they occur, which results in a reduction in compensation expense. As the payout of the RSUs includes dividend equivalents, no separate dividend yield assumption is required in calculating the fair value of the RSUs. The following table provides the compensation expense and income tax benefit for RSUs: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Stock-based compensation within operations and maintenance expenses $ 702 $ 724 $ 2,206 $ 2,089 Income tax benefit 126 205 554 586 The following table summarizes the RSU transactions for the nine months ended September 30, 2022: Number Weighted of Average Stock Units Fair Value Nonvested stock units at beginning of period 193,687 $ 43.76 Granted 71,376 45.10 Stock units vested and issued ( 56,738 ) 36.96 Forfeited ( 12,177 ) 44.91 Nonvested stock units at end of period 196,148 46.18 The per unit weighted-average fair value at the date of grant for RSUs granted during the nine months ended September 30, 2022 and 2021 was $ 45.10 and $ 44.44 , respectively. Stock Options – A stock option represents the option to purchase a number of shares of common stock of the Company as specified in the stock option grant agreement at the exercise price per share as determined by the closing market price of our common stock on the grant date. Stock options are exercisable in installments of 33 % annually, starting one year from the grant date and expire 10 years from the grant date, subject to satisfaction of designated performance goals. The fair value of each stock option is amortized into compensation expense using the graded-vesting method, which results in the recognition of compensation costs over the requisite service period for each separately vesting tranche of the stock options as though the stock options were, in substance, multiple stock option grants. The following table provides the compensation cost and income tax benefit for stock-based compensation related to stock options: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Stock-based compensation within operations and maintenance expenses $ 139 $ 94 $ 380 $ 395 Income tax benefit 26 27 95 113 The fair value of options was estimated at the grant date using the Black-Scholes option-pricing model. The following assumptions were used in the application of this valuation model: 2022 Expected term (years) 5.48 Risk-free interest rate 1.92 % Expected volatility 26.5 % Dividend yield 2.37 % Grant date fair value per option $ 9.34 The Company did no t grant stock options for the nine months ended September 30, 2021. Historical information was the principal basis for the selection of the expected term and dividend yield. The expected volatility is based on a weighted-average combination of historical and implied volatilities over a time period that approximates the expected term of the option. The risk-free interest rate was selected based upon the U.S. Treasury yield curve in effect at the time of grant for the expected term of the option. The following table summarizes stock option transactions for the nine months ended September 30, 2022: Weighted Weighted Average Average Aggregate Exercise Remaining Intrinsic Shares Price Life (years) Value Outstanding at beginning of period 813,492 $ 35.37 Granted 84,296 45.19 Forfeited ( 3,695 ) 43.03 Expired ( 125 ) 35.94 Exercised ( 53,970 ) 35.37 Outstanding at end of period 839,998 $ 36.33 6.5 $ 4,554 Exercisable at end of period 758,766 $ 35.38 6.1 $ 4,554 Restricted Stock – Restricted stock awards provide the grantee with the rights of a shareholder, including the right to receive dividends and to vote such shares, but not the right to sell or otherwise transfer the shares during the restriction period. Restricted stock awards result in compensation expense that is equal to the fair market value of the stock on the date of the grant and is amortized ratably over the restriction period. The Company expects forfeitures of restricted stock to be de minimis. The following table provides the compensation cost and income tax benefit for stock-based compensation related to restricted stock: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Stock-based compensation within operations and maintenance expenses $ 13 $ 11 $ 38 $ 117 Income tax benefit 4 3 11 34 The following table summarizes restricted stock transactions for the nine months ended September 30, 2022: Number Weighted of Average Shares Fair Value Nonvested restricted stock at beginning of period 1,068 $ 46.83 Granted 1,170 42.75 Vested ( 1,068 ) ( 46.83 ) Nonvested restricted stock at end of period 1,170 $ 42.75 The weighted-average fair value at the date of the grant for restricted stock awards granted during the nine months ended September 30, 2022 was $ 42.75 . Stock Awards – Stock awards represent the issuance of the Company’s common stock, without restriction. The issuance of stock awards results in compensation expense that is equal to the fair market value of the stock on the grant date and is expensed immediately upon grant. The following table provides the compensation cost and income tax benefit for stock-based compensation related to stock awards: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Stock-based compensation within operations and maintenance expenses $ 165 $ 175 $ 522 $ 525 Income tax benefit 48 51 151 152 The following table summarizes stock award transactions for the nine months ended September 30, 2022: Number Weighted of Average Stock Awards Fair Value Nonvested stock awards at beginning of period - $ - Granted 11,260 46.40 Vested ( 11,260 ) ( 46.40 ) Nonvested stock awards at end of period - - The weighted-average fair value at the date of grant for stock awards granted during the nine months ended September 30, 2022 and 2021 was $ 46.40 and $ 45.71 , respectively. |
Pension Plans And Other Postret
Pension Plans And Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2022 | |
Pension Plans And Other Postretirement Benefits [Abstract] | |
Pension Plans And Other Postretirement Benefits | Note 9 – Pension Plans and Other Postretirement Benefits The Company maintains a qualified defined benefit pension plan (the “Pension Plan”), a nonqualified pension plan, and other postretirement benefit plans for certain of its employees. The following tables provide the components of net periodic benefit (credit) cost for the Company’s pension and other postretirement benefit plans: Pension Benefits Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Service cost $ 707 $ 775 $ 2,121 $ 2,728 Interest cost 3,202 3,351 9,605 9,667 Expected return on plan assets ( 5,895 ) ( 5,733 ) ( 17,684 ) ( 17,432 ) Amortization of prior service cost 134 140 402 419 Amortization of actuarial loss 435 555 1,306 2,352 Net periodic benefit cost (credit) $ ( 1,417 ) $ ( 912 ) $ ( 4,250 ) $ ( 2,266 ) Other Postretirement Benefits Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Service cost $ 478 $ 698 $ 1,433 $ 2,094 Interest cost 842 840 2,527 2,520 Expected return on plan assets ( 1,142 ) ( 1,039 ) ( 3,376 ) ( 3,117 ) Amortization of prior service credit - ( 108 ) - ( 324 ) Amortization of actuarial (gain) loss ( 334 ) 55 ( 1,002 ) 165 Net periodic benefit (credit) cost $ ( 156 ) $ 446 $ ( 418 ) $ 1,338 The net periodic benefit (credit) cost is based on estimated values and an extensive use of assumptions about the discount rate, expected return on plan assets, the rate of future compensation increases received by the Company’s employees, mortality, turnover, and medical costs. The Company presents the components of net periodic benefit (credit) cost other than service cost in the consolidated statements of operations and comprehensive income on the line item “Other”. There were $ 20,390 cash contributions made to the Pension Plan during the first nine months of 2022, which completed the Company’s expected cash contributions for the year. In September 2022, we remeasured our qualified pension plan assets and liabilities in accordance with settlement accounting rules. Settlement accounting was required due to the amount of lump-sum payments by our qualified pension plan to retirees and other separated employees exceeding the threshold of service and interest cost for the period. The discount rate used for the remeasurement as of September 30, 2022 was 5.58 % compared to 2.91 % at our December 31, 2021 last annual remeasurement date. The remeasurement did not have a material impact to our consolidated financial statements. The settlement loss of $ 2,300 was recorded as a regulatory asset, as it is probable of recovery in future rates, and will be amortized into pension benefit costs. A settlement loss is the recognition of unrecognized pension benefit costs that would have been incurred in subsequent periods. |
Rate Activity
Rate Activity | 9 Months Ended |
Sep. 30, 2022 | |
Rate Activity [Abstract] | |
Rate Activity | Note 10 – Rate Activity On May 16, 2022, the Company’s regulated water and wastewater operating subsidiary in Pennsylvania, Aqua Pennsylvania, received an order from the Pennsylvania Public Utility Commission that allowed base rate increases that would increase total annual operating revenues by $ 69,251 . New rates went into effect on May 19, 2022. At the time the rate order was received, the rates in effect also included $ 35,470 in Distribution System Improvement Charges (“DSIC”), which was 7.2 % above prior base rates. Consequently, the aggregate base rates increased by $ 104,721 since the last base rate increase and DSIC was reset to zero . On January 3, 2022, the Company’s natural gas operating division in Kentucky received an order from the Kentucky Public Service Commission resulting in an increase of $ 5,238 in annual revenues, and new rates went into effect on January 4, 2022. On June 7, 2022, an additional $ 260 was approved and made effective by the Commission, resulting from a rehearing requested by the operating division. On June 30, 2022, the Company’s regulated water and wastewater operating subsidiary in North Carolina, Aqua North Carolina, filed an application with the North Carolina Utilities Commission designed to increase rates by $ 18,064 in the first year of new rates being implemented, then an additional $ 4,303 and $ 4,577 in the second and third years, respectively. On September 21, 2022, our regulated water and wastewater utility operating divisions in Ohio received an order from the Public Utilities Commission of Ohio which will increase operating revenues by $ 5,483 annually. New rates for water and sewer service went into effect on September 21, 2022. During the first nine months of 2022, the Company’s two other water utility operating divisions in Ohio were granted base rate increases designed to increase total operating revenues on an annual basis by $ 1,378 . Further, during the first nine months of 2022, the Company received approval to bill infrastructure rehabilitation surcharges designed to increase total operating revenues on an annual basis by $ 7,160 in its water and wastewater utility operating divisions in Pennsylvania, North Carolina, and Illinois. |
Taxes Other Than Income Taxes
Taxes Other Than Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Taxes Other Than Income Taxes [Abstract] | |
Taxes Other Than Income Taxes | Note 11 – Taxes Other than Income Taxes The following table provides the components of taxes other than income taxes: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Property $ 8,545 $ 8,623 $ 24,798 $ 25,907 Gross receipts, excise and franchise 4,371 4,223 12,484 11,857 Payroll 4,695 5,082 16,133 16,556 Regulatory assessments 1,486 951 5,063 2,637 Pumping fees 2,824 1,752 6,147 4,343 Other 704 427 2,727 1,919 Total taxes other than income $ 22,625 $ 21,058 $ 67,352 $ 63,219 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2022 | |
Segment Information [Abstract] | |
Segment Information | Note 12 – Segment Information The Company has twelve operating segments and two reportable segments. The Regulated Water segment is comprised of eight operating segments representing its water and wastewater regulated utility companies, which are organized by the states where the Company provides water and wastewater services. The eight water and wastewater utility operating segments are aggregated into one reportable segment, because each of these operating segments has the following similarities: economic characteristics, nature of services, production processes, customers, water distribution or wastewater collection methods, and the nature of the regulatory environment. The Regulated Natural Gas segment is comprised of one operating segment representing natural gas utility companies, acquired in the Peoples Gas Acquisition, for which the Company provides natural gas distribution services. In addition to the Company’s two reportable segments, we include three of our operating segments within the Other category below. These segments are not quantitatively significant and are comprised of our non-regulated natural gas operations, Aqua Infrastructure, and Aqua Resources. Our non-regulated natural gas operations consist of utility service line protection solutions and repair services to households and the operation of gas marketing and production entities. Prior to the October 30, 2020 sale of our investment in joint venture, Aqua Infrastructure provided non-utility raw water supply services for firms in the natural gas drilling industry. Aqua Resources offers, through a third party, water and sewer service line protection solutions and repair services to households. In addition to these segments, Other is comprised of business activities not included in the reportable segments, corporate costs that have not been allocated to the Regulated Water and Regulated Natural Gas segments, and intersegment eliminations. Corporate costs include general and administrative expenses, and interest expense. The Company reports these corporate costs within Other as they relate to corporate-focused responsibilities and decisions and are not included in internal measures of segment operating performance used by the Company to measure the underlying performance of the operating segments. The Regulated Water and Regulated Natural Gas segments report interest expense that includes long-term debt that was pushed-down to the regulated operating subsidiaries from Essential Utilities, Inc. The following table presents information about the Company’s reportable segments: Three Months Ended Three Months Ended September 30, 2022 September 30, 2021 Regulated Water Regulated Natural Gas Other Consolidated Regulated Water Regulated Natural Gas Other Consolidated Operating revenues $ 301,335 $ 118,985 $ 14,298 $ 434,618 $ 259,859 $ 94,752 $ 7,249 $ 361,860 Operations and maintenance expense 94,854 51,850 4,657 151,361 86,923 53,954 ( 1,522 ) 139,355 Purchased gas - 41,124 10,917 52,041 - 20,386 5,102 25,488 Depreciation and amortization 51,522 30,295 913 82,730 45,506 28,194 807 74,507 Taxes other than income taxes 16,809 5,073 743 22,625 16,291 4,271 496 21,058 Operating income (loss) 138,150 ( 9,357 ) ( 2,932 ) 125,861 111,139 ( 12,053 ) 2,366 101,452 Interest expense, net (a) 27,762 20,323 10,893 58,978 27,389 18,406 5,772 51,567 Allowance for funds used during construction ( 5,161 ) ( 651 ) - ( 5,812 ) ( 5,407 ) ( 675 ) - ( 6,082 ) Other ( 2,219 ) 838 641 ( 740 ) ( 1,896 ) 5,329 266 3,699 Income before income taxes 117,768 ( 29,867 ) ( 14,466 ) 73,435 91,053 ( 35,113 ) ( 3,672 ) 52,268 Provision for income taxes (benefit) 19,182 ( 12,734 ) ( 1,651 ) 4,797 9,230 ( 6,821 ) ( 644 ) 1,765 Net income (loss) $ 98,586 $ ( 17,133 ) $ ( 12,815 ) $ 68,638 $ 81,823 $ ( 28,292 ) $ ( 3,028 ) $ 50,503 Nine Months Ended Nine Months Ended September 30, 2022 September 30, 2021 Regulated Water Regulated Natural Gas Other Consolidated Regulated Water Regulated Natural Gas Other Consolidated Operating revenues $ 809,888 $ 731,897 $ 40,864 $ 1,582,649 $ 736,389 $ 579,429 $ 26,639 $ 1,342,457 Operations and maintenance expense 273,757 156,209 ( 1,043 ) 428,923 243,071 157,614 ( 8,740 ) 391,945 Purchased gas - 321,822 33,074 354,896 - 183,062 19,476 202,538 Depreciation and amortization 150,498 89,130 624 240,252 136,189 83,905 1,529 221,623 Taxes other than income taxes 48,262 16,878 2,212 67,352 47,756 13,356 2,107 63,219 Operating income 337,371 147,858 5,997 491,226 309,373 141,492 12,267 463,132 Interest expense, net 82,920 60,146 23,336 166,402 80,971 56,125 16,551 153,647 Allowance for funds used during construction ( 15,657 ) ( 2,145 ) - ( 17,802 ) ( 13,091 ) ( 831 ) - ( 13,922 ) Other ( 5,891 ) 404 2,144 ( 3,343 ) ( 5,265 ) 4,462 ( 1,213 ) ( 2,016 ) Income before income taxes 275,999 89,453 ( 19,483 ) 345,969 246,758 81,736 ( 3,071 ) 325,423 Provision for income taxes (benefit) 40,528 ( 44,378 ) ( 486 ) ( 4,336 ) 22,056 ( 11,128 ) ( 611 ) 10,317 Net income (loss) $ 235,471 $ 133,831 $ ( 18,997 ) $ 350,305 $ 224,702 $ 92,864 $ ( 2,460 ) $ 315,106 Capital expenditures $ 382,853 $ 335,738 $ 1,097 $ 719,688 $ 404,894 $ 269,958 $ 993 $ 675,845 (a) The regulated water and regulated natural gas segments report interest expense that includes long-term debt that was pushed-down to the regulated operating subsidiaries from Essential Utilities, Inc. September 30, December 31, 2022 2021 Total assets: Regulated water $ 8,666,230 $ 8,403,586 Regulated natural gas 6,163,931 5,960,602 Other 449,631 294,090 Consolidated $ 15,279,792 $ 14,658,278 |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | Note 13 – Commitments and Contingencies The Company is routinely involved in various disputes, claims, lawsuits and other regulatory and legal matters, including both asserted and unasserted legal claims, in the ordinary course of business. The status of each such matter, referred to herein as a loss contingency, is reviewed and assessed in accordance with applicable accounting rules regarding the nature of the matter, the likelihood that a loss will be incurred, and the amounts involved. As of September 30, 2022, the aggregate amount of $ 20,395 is accrued for loss contingencies and is reported in the Company’s consolidated balance sheet as other accrued liabilities and other liabilities. These accruals represent management’s best estimate of probable loss (as defined in the accounting guidance) for loss contingencies or the low end of a range of losses if no single probable loss can be estimated. For some loss contingencies, the Company is unable to estimate the amount of the probable loss or range of probable losses. Further, the Company has insurance coverage for certain of these loss contingencies, and as of September 30, 2022, estimates that approximately $ 2,131 of the amount accrued for these matters are probable of recovery through insurance, which amount is also reported in the Company’s consolidated balance sheet as deferred charges and other assets, net. During a portion of 2019, the Company initiated a do not consume advisory for some of its water customers in one division served by the Company’s Illinois subsidiary. The do not consume advisory was lifted in 2019 and, in 2022, the water system was determined to be in compliance with the federal Lead and Copper Rule. D uring the second quarter of 2021, an amount was accrued for the portion of the fine or penalty that we determined to be probable and estimable of being incurred. In addition, on September 3, 2019, two individuals, on behalf of themselves and those similarly situated, commenced an action against the Company’s Illinois subsidiary in the State court in Will County, Illinois related to this do not consume advisory. The complaint seeks class action certification, attorney's fees, and "damages, including, but not limited to, out of pocket damages, and discomfort, aggravation, and annoyance” based upon the water provided by the Company’s subsidiary to a discrete service area in University Park, Illinois. The complaint contains allegations of damages as a result of supplied water that exceeded the standards established by the federal Lead and Copper Rule. The complaint is in the discovery phase and class certification has not been granted. During the third quarter of 2022, the Company established an accrual for the amount of loss averred in the complaint that we determined to be probable and estimable of being incurred. The Company is vigorously defending against this claim . The Company submitted a claim for the expenses incurred to its insurance carrier for potential recovery of a portion of these costs. The Company continues to assess the potential loss contingency on this matter. While the final outcome of this claim cannot be predicted with certainty, and unfavorable outcomes could negatively impact the Company, at this time in the opinion of management, the final resolution of this matter is not expected to have a material adverse effect on the Company’s financial position, results of operations or cash flows. Although the results of legal proceedings cannot be predicted with certainty, other than disclosed above, there are no other pending legal proceedings to which the Company or any of its subsidiaries is a party or to which any of its properties is the subject that are material or are expected to have a material effect on the Company’s financial position, results of operations, or cash flows. In addition to the aforementioned loss contingencies, the Company self-insures its employee medical benefit program, and maintains stop-loss coverage to limit the exposure arising from these claims. The Company’s reserve for these claims totaled $ 2,327 at September 30, 2022 and represents a reserve for unpaid claim costs, including an estimate for the cost of incurred but not reported claims. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | Note 14 – Income Taxes The Company’s effective tax rate was 6.5 % and ( 1.3 )% for the three and nine months ended September 30, 2022, respectively. The Company’s effective tax rate was 3.4 % and 3.2 % for the three and nine months ended September 30, 2021, respectively. The increase in the effective tax rate for the third quarter of the year is primarily attributed to the increase in pretax income with a steady year-over-year income tax benefit associated with the tax deduction for qualifying infrastructure. The decrease in the effective tax rate for the first nine months of the year is primarily attributed to an increase in our income tax benefit associated with the tax deduction for qualifying infrastructure and the amortization of the regulatory liability for the tax repair catch-up adjustment during 2022 in our Regulated Natural Gas segment. In determining its interim tax provision, the Company reflects its estimated permanent and flow-through tax differences for the taxable year . The statutory Federal tax rate is 21.0 % for the three and nine months ended September 30, 2022 and 2021. For states with a corporate net income tax, the state corporate net income tax rates range from 2.5 % to 9.99 % for all periods presented. On July 8, 2022, Pennsylvania enacted House Bill 1342 into law, which among other things, reduces Pennsylvania’s corporate income tax rate from 9.99 % to 8.99 % beginning January 1, 2023, and an additional 0.5 % annually through 2031, when it reaches to 4.99 %. The Company evaluated the impacts of the tax rate change and recorded, in the third quarter, a reduction to our deferred tax liabilities of $ 232,361 with a corresponding reduction primarily to our regulatory assets. The Company uses a method of tax accounting for certain qualifying infrastructure investments at its Peoples Natural Gas (“PNG”) and Peoples Gas Company (“PGC”) subsidiaries, its largest natural gas subsidiaries in Pennsylvania, that allows a tax deduction for qualifying utility infrastructure. Consistent with the Company’s accounting for differences between book and tax expenditures in Pennsylvania in its other regulated subsidiaries, the Company uses the flow-through method to account for this timing difference. For PNG, the Company calculated the income tax benefits for qualifying capital expenditures made prior to the date of its acquisition in March 16, 2020 (“catch-up adjustment”) and recognized a regulatory liability of $ 160,655 for these income tax benefits. On May 6, 2021, the Pennsylvania Public Utility Commission approved a settlement order which stipulates, among other points, that the catch-up adjustment be provided by a surcredit to utility customers over a five-year period beginning August 2021, and the Company can continue to use flow-through accounting for the current tax repair benefit until its next base rate case. During the third quarter and the first nine months of 2022, $ 3,278 and $ 20,516 , respectively, of income tax benefits were amortized as refunds to Peoples Natural Gas customers. For PGC, the Company calculated the catch-up adjustment from prior to the 2021 tax year and recognized a regulatory liability of $ 13,808 for these income tax benefits. The Company will maintain this regulatory liability on its consolidated balance sheet until accounting treatment is determined in its next base rate case. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2022 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Note 15 – Recent Accounting Pronouncements Pronouncements to be adopted upon the effective date: In October 2021, the FASB issued accounting guidance on accounting for acquired revenue contracts with customers in a business combination. The guidance specifies for all acquired revenue contracts, regardless of their timing of payment, the circumstances in which the acquirer should recognize contract assets and contract liabilities that are acquired in a business combination, as well as how to measure those contract assets and contract liabilities. The updated accounting guidance is effective for fiscal years beginning after December 15, 2022 with early adoption permitted. The Company is evaluating the requirements of the updated guidance to determine the impact of adoption. Pronouncement adopted during the year: In August 2020, the FASB issued updated accounting guidance on accounting for convertible instruments and contracts in an entity’s own equity. The updated guidance reduces the number of accounting models for convertible debt and convertible preferred stock instruments and makes certain disclosure amendments intended to improve the information provided to users. Additionally, the guidance also amends the derivative guidance for the “own stock” scope exception, which exempts qualifying instruments from being accounted for as derivatives if certain criteria are met. Further, the standard changes the way certain convertible instruments are treated when calculating earnings per share. As permitted, we adopted this updated guidance on January 1, 2022, which did not have a material impact on our consolidated financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue Recognition [Abstract] | |
Schedule Of Disaggregation Of Revenue | Three Months Ended Three Months Ended September 30, 2022 September 30, 2021 Water Revenues Wastewater Revenues Natural Gas Revenues Other Revenues Water Revenues Wastewater Revenues Natural Gas Revenues Other Revenues Revenues from contracts with customers: Residential $ 173,798 32,806 65,631 - $ 148,247 $ 25,147 $ 49,838 $ - Commercial 49,026 8,769 15,180 - 42,318 5,839 9,534 - Fire protection 9,934 - - - 8,866 - - - Industrial 9,291 466 990 - 8,217 401 415 - Gas transportation & storage - - 26,824 - - - 27,794 - Other water 11,920 - - - 14,539 - - - Other wastewater - 2,175 - - - 2,495 - - Other utility - - 11,096 2,362 - - 7,488 3,241 Revenues from contracts with customers 253,969 44,216 119,721 2,362 222,187 33,882 95,069 3,241 Alternative revenue program 669 60 - - 527 22 - - Other and eliminations 545 - - 13,076 - - - 6,932 Consolidated $ 255,183 $ 44,276 $ 119,721 $ 15,438 $ 222,714 $ 33,904 $ 95,069 $ 10,173 Nine Months Ended Nine Months Ended September 30, 2022 September 30, 2021 Water Revenues Wastewater Revenues Natural Gas Revenues Other Revenues Water Revenues Wastewater Revenues Natural Gas Revenues Other Revenues Revenues from contracts with customers: Residential $ 454,628 89,954 446,679 - $ 425,519 $ 73,820 $ 347,790 $ - Commercial 125,171 21,807 91,073 - 113,473 16,102 65,404 - Fire protection 28,674 - - - 26,830 - - - Industrial 24,076 1,242 3,789 - 22,954 1,256 1,894 - Gas transportation & storage - - 146,571 - - - 143,387 - Other water 45,170 - - - 37,696 - - - Other wastewater - 8,180 - - - 6,808 - - Other utility - 46,162 8,602 - - 22,639 10,556 Revenues from contracts with customers 677,719 121,183 734,274 8,602 626,472 97,986 581,114 10,556 Alternative revenue program 2,393 ( 128 ) - - 1,357 18 206 - Other and eliminations - - - 38,606 - - - 24,748 Consolidated $ 680,112 $ 121,055 $ 734,274 $ 47,208 $ 627,829 $ 98,004 $ 581,320 $ 35,304 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill [Abstract] | |
Schedule Of Goodwill | Regulated Water Regulated Natural Gas Other Consolidated Balance at December 31, 2021 $ 58,527 $ 2,277,447 $ 4,841 $ 2,340,815 Reclassification to utility plant acquisition adjustment ( 23 ) - - ( 23 ) Balance at September 30, 2022 $ 58,504 $ 2,277,447 $ 4,841 $ 2,340,792 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Financial Instruments [Abstract] | |
Summary Of Unrealized Gain And Losses | Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Net gain (loss) recognized during the period on equity securities $ ( 257 ) $ 196 $ ( 994 ) $ 695 Less: net gain / loss recognized during the period on equity securities sold during the period - - - - Unrealized gain (loss) recognized during the reporting period on equity securities still held at the reporting date $ ( 257 ) $ 196 $ ( 994 ) $ 695 |
Schedule Of Carrying Amounts And Estimated Fair Values Of Long-Term Debt | September 30, December 31, 2022 2021 Carrying amount $ 6,370,899 $ 5,947,357 Estimated fair value 5,268,656 6,482,499 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Net Income Per Common Share [Abstract] | |
Schedule Of Earnings Per Share | Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Average common shares outstanding during the period for basic computation 262,213 258,773 262,089 256,051 Effect of dilutive securities: Forward equity sale agreement - 223 - 216 Tangible equity units - - - - Employee stock-based compensation 541 441 552 496 Average common shares outstanding during the period for diluted computation 262,754 259,437 262,641 256,763 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of PSU Transactions | Number Weighted of Average Share Units Fair Value Nonvested share units at beginning of period 355,384 $ 42.19 Granted 160,245 42.31 Forfeited ( 31,278 ) 44.26 Nonvested share units at end of period 484,351 42.34 |
Summary Of RSU Transactions | Number Weighted of Average Stock Units Fair Value Nonvested stock units at beginning of period 193,687 $ 43.76 Granted 71,376 45.10 Stock units vested and issued ( 56,738 ) 36.96 Forfeited ( 12,177 ) 44.91 Nonvested stock units at end of period 196,148 46.18 |
Summary Of Stock Option Transactions | Weighted Weighted Average Average Aggregate Exercise Remaining Intrinsic Shares Price Life (years) Value Outstanding at beginning of period 813,492 $ 35.37 Granted 84,296 45.19 Forfeited ( 3,695 ) 43.03 Expired ( 125 ) 35.94 Exercised ( 53,970 ) 35.37 Outstanding at end of period 839,998 $ 36.33 6.5 $ 4,554 Exercisable at end of period 758,766 $ 35.38 6.1 $ 4,554 |
Performance Share Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Compensation Costs | Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Stock-based compensation within operations and maintenance expenses $ 1,676 $ 1,285 $ 5,018 $ 4,216 Income tax benefit 309 365 1,261 1,191 |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Compensation Costs | Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Stock-based compensation within operations and maintenance expenses $ 702 $ 724 $ 2,206 $ 2,089 Income tax benefit 126 205 554 586 |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Compensation Costs | Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Stock-based compensation within operations and maintenance expenses $ 139 $ 94 $ 380 $ 395 Income tax benefit 26 27 95 113 |
Assumptions Used In The Pricing Model | 2022 Expected term (years) 5.48 Risk-free interest rate 1.92 % Expected volatility 26.5 % Dividend yield 2.37 % Grant date fair value per option $ 9.34 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Compensation Costs | Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Stock-based compensation within operations and maintenance expenses $ 13 $ 11 $ 38 $ 117 Income tax benefit 4 3 11 34 |
Summary Of Restricted Stock Transactions | Number Weighted of Average Shares Fair Value Nonvested restricted stock at beginning of period 1,068 $ 46.83 Granted 1,170 42.75 Vested ( 1,068 ) ( 46.83 ) Nonvested restricted stock at end of period 1,170 $ 42.75 |
Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Compensation Costs | Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Stock-based compensation within operations and maintenance expenses $ 165 $ 175 $ 522 $ 525 Income tax benefit 48 51 151 152 |
Summary Of Nonvested Share Activity | Number Weighted of Average Stock Awards Fair Value Nonvested stock awards at beginning of period - $ - Granted 11,260 46.40 Vested ( 11,260 ) ( 46.40 ) Nonvested stock awards at end of period - - |
Pension Plans And Other Postr_2
Pension Plans And Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Pension Plans And Other Postretirement Benefits [Abstract] | |
Components Of Net Periodic Benefit Costs | Pension Benefits Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Service cost $ 707 $ 775 $ 2,121 $ 2,728 Interest cost 3,202 3,351 9,605 9,667 Expected return on plan assets ( 5,895 ) ( 5,733 ) ( 17,684 ) ( 17,432 ) Amortization of prior service cost 134 140 402 419 Amortization of actuarial loss 435 555 1,306 2,352 Net periodic benefit cost (credit) $ ( 1,417 ) $ ( 912 ) $ ( 4,250 ) $ ( 2,266 ) Other Postretirement Benefits Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Service cost $ 478 $ 698 $ 1,433 $ 2,094 Interest cost 842 840 2,527 2,520 Expected return on plan assets ( 1,142 ) ( 1,039 ) ( 3,376 ) ( 3,117 ) Amortization of prior service credit - ( 108 ) - ( 324 ) Amortization of actuarial (gain) loss ( 334 ) 55 ( 1,002 ) 165 Net periodic benefit (credit) cost $ ( 156 ) $ 446 $ ( 418 ) $ 1,338 |
Taxes Other Than Income Taxes (
Taxes Other Than Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Taxes Other Than Income Taxes [Abstract] | |
Components Of Taxes Other Than Income Taxes | Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Property $ 8,545 $ 8,623 $ 24,798 $ 25,907 Gross receipts, excise and franchise 4,371 4,223 12,484 11,857 Payroll 4,695 5,082 16,133 16,556 Regulatory assessments 1,486 951 5,063 2,637 Pumping fees 2,824 1,752 6,147 4,343 Other 704 427 2,727 1,919 Total taxes other than income $ 22,625 $ 21,058 $ 67,352 $ 63,219 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Information [Abstract] | |
Company's Segment Information, Continuing Operations | Three Months Ended Three Months Ended September 30, 2022 September 30, 2021 Regulated Water Regulated Natural Gas Other Consolidated Regulated Water Regulated Natural Gas Other Consolidated Operating revenues $ 301,335 $ 118,985 $ 14,298 $ 434,618 $ 259,859 $ 94,752 $ 7,249 $ 361,860 Operations and maintenance expense 94,854 51,850 4,657 151,361 86,923 53,954 ( 1,522 ) 139,355 Purchased gas - 41,124 10,917 52,041 - 20,386 5,102 25,488 Depreciation and amortization 51,522 30,295 913 82,730 45,506 28,194 807 74,507 Taxes other than income taxes 16,809 5,073 743 22,625 16,291 4,271 496 21,058 Operating income (loss) 138,150 ( 9,357 ) ( 2,932 ) 125,861 111,139 ( 12,053 ) 2,366 101,452 Interest expense, net (a) 27,762 20,323 10,893 58,978 27,389 18,406 5,772 51,567 Allowance for funds used during construction ( 5,161 ) ( 651 ) - ( 5,812 ) ( 5,407 ) ( 675 ) - ( 6,082 ) Other ( 2,219 ) 838 641 ( 740 ) ( 1,896 ) 5,329 266 3,699 Income before income taxes 117,768 ( 29,867 ) ( 14,466 ) 73,435 91,053 ( 35,113 ) ( 3,672 ) 52,268 Provision for income taxes (benefit) 19,182 ( 12,734 ) ( 1,651 ) 4,797 9,230 ( 6,821 ) ( 644 ) 1,765 Net income (loss) $ 98,586 $ ( 17,133 ) $ ( 12,815 ) $ 68,638 $ 81,823 $ ( 28,292 ) $ ( 3,028 ) $ 50,503 Nine Months Ended Nine Months Ended September 30, 2022 September 30, 2021 Regulated Water Regulated Natural Gas Other Consolidated Regulated Water Regulated Natural Gas Other Consolidated Operating revenues $ 809,888 $ 731,897 $ 40,864 $ 1,582,649 $ 736,389 $ 579,429 $ 26,639 $ 1,342,457 Operations and maintenance expense 273,757 156,209 ( 1,043 ) 428,923 243,071 157,614 ( 8,740 ) 391,945 Purchased gas - 321,822 33,074 354,896 - 183,062 19,476 202,538 Depreciation and amortization 150,498 89,130 624 240,252 136,189 83,905 1,529 221,623 Taxes other than income taxes 48,262 16,878 2,212 67,352 47,756 13,356 2,107 63,219 Operating income 337,371 147,858 5,997 491,226 309,373 141,492 12,267 463,132 Interest expense, net 82,920 60,146 23,336 166,402 80,971 56,125 16,551 153,647 Allowance for funds used during construction ( 15,657 ) ( 2,145 ) - ( 17,802 ) ( 13,091 ) ( 831 ) - ( 13,922 ) Other ( 5,891 ) 404 2,144 ( 3,343 ) ( 5,265 ) 4,462 ( 1,213 ) ( 2,016 ) Income before income taxes 275,999 89,453 ( 19,483 ) 345,969 246,758 81,736 ( 3,071 ) 325,423 Provision for income taxes (benefit) 40,528 ( 44,378 ) ( 486 ) ( 4,336 ) 22,056 ( 11,128 ) ( 611 ) 10,317 Net income (loss) $ 235,471 $ 133,831 $ ( 18,997 ) $ 350,305 $ 224,702 $ 92,864 $ ( 2,460 ) $ 315,106 Capital expenditures $ 382,853 $ 335,738 $ 1,097 $ 719,688 $ 404,894 $ 269,958 $ 993 $ 675,845 (a) The regulated water and regulated natural gas segments report interest expense that includes long-term debt that was pushed-down to the regulated operating subsidiaries from Essential Utilities, Inc. |
Company's Segment Information, Assets | September 30, December 31, 2022 2021 Total assets: Regulated water $ 8,666,230 $ 8,403,586 Regulated natural gas 6,163,931 5,960,602 Other 449,631 294,090 Consolidated $ 15,279,792 $ 14,658,278 |
Revenue Recognition (Schedule O
Revenue Recognition (Schedule Of Disaggregation Of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 434,618 | $ 361,860 | $ 1,582,649 | $ 1,342,457 |
Water [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 253,969 | 222,187 | 677,719 | 626,472 |
Revenue | 255,183 | 222,714 | 680,112 | 627,829 |
Water [Member] | Residential [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 173,798 | 148,247 | 454,628 | 425,519 |
Water [Member] | Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 49,026 | 42,318 | 125,171 | 113,473 |
Water [Member] | Fire Protection [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 9,934 | 8,866 | 28,674 | 26,830 |
Water [Member] | Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 9,291 | 8,217 | 24,076 | 22,954 |
Water [Member] | Other Water [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 11,920 | 14,539 | 45,170 | 37,696 |
Water [Member] | Alternative Revenue Program [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 669 | 527 | 2,393 | 1,357 |
Water [Member] | Other And Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 545 | |||
Wastewater [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 44,216 | 33,882 | 121,183 | 97,986 |
Revenue | 44,276 | 33,904 | 121,055 | 98,004 |
Wastewater [Member] | Residential [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 32,806 | 25,147 | 89,954 | 73,820 |
Wastewater [Member] | Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 8,769 | 5,839 | 21,807 | 16,102 |
Wastewater [Member] | Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 466 | 401 | 1,242 | 1,256 |
Wastewater [Member] | Other Wastewater [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2,175 | 2,495 | 8,180 | 6,808 |
Wastewater [Member] | Alternative Revenue Program [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 60 | 22 | (128) | 18 |
Natural Gas [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 119,721 | 95,069 | 734,274 | 581,114 |
Revenue | 119,721 | 95,069 | 734,274 | 581,320 |
Natural Gas [Member] | Residential [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 65,631 | 49,838 | 446,679 | 347,790 |
Natural Gas [Member] | Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 15,180 | 9,534 | 91,073 | 65,404 |
Natural Gas [Member] | Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 990 | 415 | 3,789 | 1,894 |
Natural Gas [Member] | Gas Transportation [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 26,824 | 27,794 | 146,571 | 143,387 |
Natural Gas [Member] | Other Utility [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 11,096 | 7,488 | 46,162 | 22,639 |
Natural Gas [Member] | Alternative Revenue Program [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 206 | |||
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2,362 | 3,241 | 8,602 | 10,556 |
Revenue | 15,438 | 10,173 | 47,208 | 35,304 |
Other [Member] | Other Utility [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2,362 | 3,241 | 8,602 | 10,556 |
Other [Member] | Other And Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 13,076 | $ 6,932 | $ 38,606 | $ 24,748 |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||
Aug. 06, 2021 USD ($) customer | Aug. 31, 2022 USD ($) customer | Jul. 31, 2022 USD ($) | Mar. 31, 2022 USD ($) customer | Oct. 31, 2021 USD ($) customer | Jul. 31, 2021 USD ($) customer | Apr. 30, 2021 USD ($) customer | Jan. 31, 2021 USD ($) customer | Sep. 30, 2019 USD ($) item customer | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) customer | |
Business Acquisition [Line Items] | ||||||||||||||||||
Goodwill | $ 2,340,792 | $ 2,340,792 | $ 2,340,815 | |||||||||||||||
Operating revenues | 434,618 | $ 361,860 | 1,582,649 | $ 1,342,457 | ||||||||||||||
Net income | $ 68,638 | $ 82,291 | $ 199,376 | $ 50,503 | $ 80,914 | $ 183,689 | $ 350,305 | $ 315,106 | ||||||||||
Wastewater Utility System [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Total purchase price | $ 885,000 | |||||||||||||||||
Illinois [Member] | Water Utility System [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of customers | customer | 6,500 | |||||||||||||||||
Total purchase price | $ 32,100 | |||||||||||||||||
Illinois [Member] | Water And Wastewater Utility Systems [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of customers | customer | 4,000 | |||||||||||||||||
Total purchase price | $ 12,500 | |||||||||||||||||
Illinois [Member] | Wastewater Utility System [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of customers | customer | 7,600 | |||||||||||||||||
Total purchase price | $ 41,250 | |||||||||||||||||
Pennsylvania [Member] | Water Utility System [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of customers | customer | 2,930 | |||||||||||||||||
Total purchase price | $ 12,000 | |||||||||||||||||
Pennsylvania [Member] | Wastewater Utility System [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of customers | customer | 2,300 | |||||||||||||||||
Total purchase price | $ 17,500 | |||||||||||||||||
Delaware [Member] | Wastewater Utility System [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of customers | customer | 16,000 | |||||||||||||||||
Retail customers | customer | 198,000 | |||||||||||||||||
Municipalities | item | 42 | |||||||||||||||||
Total purchase price | $ 276,500 | |||||||||||||||||
Texas [Member] | Water Utility System [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of customers | customer | 992 | |||||||||||||||||
Total purchase price | $ 4,000 | |||||||||||||||||
Village of Frankfort [Member] | Water And Wastewater Utility Systems [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of customers | customer | 1,422 | |||||||||||||||||
Total purchase price | $ 1,400 | |||||||||||||||||
East Whiteland Township [Member] | Wastewater Utility System [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of customers | customer | 3,895 | |||||||||||||||||
Total purchase price | $ 54,374 | |||||||||||||||||
Lower Makefield Township [Member] | Wastewater Utility System [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of customers | customer | 11,000 | |||||||||||||||||
Total purchase price | $ 53,000 | |||||||||||||||||
Southern Oaks [Member] | Water Utility System [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of customers | customer | 740 | |||||||||||||||||
Total purchase price | $ 3,300 |
Goodwill (Details)
Goodwill (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Goodwill [Line Items] | ||
Balance | $ 2,340,815,000 | |
Reclassification to utility plant acquisition adjustment | (23,000) | |
Balance | $ 2,340,792,000 | 2,340,792,000 |
Goodwill, Impairment Loss | 0 | |
Water [Member] | ||
Goodwill [Line Items] | ||
Balance | 58,527,000 | |
Reclassification to utility plant acquisition adjustment | (23,000) | |
Balance | 58,504,000 | 58,504,000 |
Natural Gas [Member] | ||
Goodwill [Line Items] | ||
Balance | 2,277,447,000 | |
Balance | 2,277,447,000 | 2,277,447,000 |
Other [Member] | ||
Goodwill [Line Items] | ||
Balance | 4,841,000 | |
Balance | $ 4,841,000 | $ 4,841,000 |
Capitalization (Details)
Capitalization (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Oct. 14, 2022 USD ($) | Jun. 30, 2022 USD ($) | May 20, 2022 USD ($) | May 02, 2022 $ / shares shares | Aug. 09, 2021 USD ($) $ / agreement shares | Apr. 19, 2021 USD ($) | Apr. 23, 2019 USD ($) $ / shares | Apr. 30, 2022 shares | Aug. 31, 2020 USD ($) shares | Jun. 30, 2022 USD ($) shares | Sep. 30, 2021 USD ($) shares | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 USD ($) | Dec. 31, 2021 $ / shares shares | Oct. 31, 2022 USD ($) | Jun. 29, 2022 USD ($) | Apr. 15, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||||||||||||||
Common stock, par value | $ / shares | $ 0.50 | $ 0.50 | |||||||||||||||
Common stock, shares authorized | shares | 600,000,000 | 600,000,000 | |||||||||||||||
Common stock, shares issued | shares | 265,530,007 | 256,102,388 | |||||||||||||||
Issuance of common stock from forward equity sale agreement | $ 500,000,000 | $ 299,739,000 | $ 299,739,000 | ||||||||||||||
Issuance of common stock from forward equity sale agreement , shares | shares | 6,700,000 | 6,700,000 | |||||||||||||||
Stock purchase contracts early settled by holders of the contracts | shares | 981,919 | ||||||||||||||||
Shares settled | shares | 6,621,315 | 1,166,107 | |||||||||||||||
Issuance of common stock from stock purchase contracts , shares | shares | 7,863,354 | 9,029,461 | 127,749 | ||||||||||||||
Conversion to shares | $ / shares | $ 1.18758 | ||||||||||||||||
Repayments of long-term debt | $ 521,792,000 | $ 717,816,000 | |||||||||||||||
Initial Forward Equity Sale Agreement [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Forward price | $ / agreement | 46 | ||||||||||||||||
Forward Equity Sale Agreement [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Proceeds from private placement | $ 0 | ||||||||||||||||
Common stock, shares authorized | shares | 6,700,000 | ||||||||||||||||
Forward price | $ / agreement | 44.74 | ||||||||||||||||
Unsecured Credit Facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Repayment of line of credit | $ 410,000,000 | ||||||||||||||||
Revolving Credit Facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maturity | Jun. 29, 2023 | ||||||||||||||||
Borrowing capacity | $ 300,000,000 | $ 300,000,000 | $ 100,000,000 | ||||||||||||||
Debt term | 5 years | ||||||||||||||||
Notes at 5.30%, due 2052 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, interest rate | 5.30% | 5.30% | 5.30% | ||||||||||||||
Maturity date | 2052 | 2052 | |||||||||||||||
Debt issuance expense | $ 5,815,000 | ||||||||||||||||
Maturity Year | 2052 | ||||||||||||||||
Interest Rate | 5.30% | 5.30% | 5.30% | ||||||||||||||
Unsecured notes payable | $ 500,000,000 | $ 500,000,000 | |||||||||||||||
Long-Term Debts [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, interest rate | 2.40% | ||||||||||||||||
Face Amount | $ 400,000,000 | ||||||||||||||||
Debt issuance expense | $ 4,010,000 | ||||||||||||||||
Interest Rate | 2.40% | ||||||||||||||||
Aqua Ohio, Inc [Member] | First Mortgage Bonds [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Face Amount | $ 100,000,000 | ||||||||||||||||
Aqua Ohio, Inc [Member] | First Mortgage Bonds Due In 2031 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, interest rate | 2.37% | ||||||||||||||||
Face Amount | $ 50,000,000 | ||||||||||||||||
Interest Rate | 2.37% | ||||||||||||||||
Aqua Ohio, Inc [Member] | First Mortgage Bonds Due In 2051 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, interest rate | 3.35% | ||||||||||||||||
Face Amount | $ 50,000,000 | ||||||||||||||||
Interest Rate | 3.35% | ||||||||||||||||
Aqua Pennsylvania, Inc [Member] | Revolving Credit Facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt term | 5 years | ||||||||||||||||
Repayments of long-term debt | $ 50,000,000 | ||||||||||||||||
Repayment of line of credit | $ 49,700,000 | ||||||||||||||||
Aqua Pennsylvania, Inc [Member] | First Mortgage Bonds Due In 2052 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, interest rate | 4.50% | ||||||||||||||||
Face Amount | $ 125,000,000 | ||||||||||||||||
Interest Rate | 4.50% | ||||||||||||||||
LDC Funding LLC [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Private placement, per share | $ / shares | $ 50 | ||||||||||||||||
Proceeds from tangible equity units | $ 690,000,000 | ||||||||||||||||
Debt instrument, interest rate | 3% | ||||||||||||||||
Initial principal amount | $ 119,081,000 | ||||||||||||||||
Initial principal amount per share | $ / shares | $ 8.62909 | ||||||||||||||||
Cash installment | $ / shares | $ 0.75 | ||||||||||||||||
Cash installment rate | 6% | ||||||||||||||||
Debt issuance expense | $ 16,358,000 | ||||||||||||||||
Interest Rate | 3% | ||||||||||||||||
LDC Funding LLC [Member] | July 30, 2019 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Cash installment | $ / shares | $ 0.80833 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 23,366 | $ 10,567 |
Customers' advances for construction | 121,247 | 103,619 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans payable | 213,235 | 65,000 |
Mutual funds | 24,717 | 28,576 |
Cash and cash equivalents | $ 23,366 | $ 10,567 |
Financial Instruments (Summary
Financial Instruments (Summary Of Unrealized Gain And Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Financial Instruments [Abstract] | ||||
Net gain recognized during the period on equity securities | $ (257) | $ 196 | $ (994) | $ 695 |
Unrealized gain recognized during the reporting period on equity securities still held at the reporting date | $ (257) | $ 196 | $ (994) | $ 695 |
Financial Instruments (Schedule
Financial Instruments (Schedule Of Carrying Amounts And Estimated Fair Values Of Long-Term Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 6,370,899 | $ 5,947,357 |
Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 5,268,656 | $ 6,482,499 |
Net Income Per Common Share (Na
Net Income Per Common Share (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net Income Per Common Share [Abstract] | ||||
Employee stock options excluded from calculations of diluted net income per share | 81,729,000 | 81,729,000 | ||
Average common shares outstanding, included in computation | 9,022,040 | 3,920,087 | 9,067,879 |
Net Income Per Common Share (Sc
Net Income Per Common Share (Schedule Of Earnings Per Share) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net Income Per Common Share [Abstract] | ||||
Average common shares outstanding during the period for basic computation | 262,213 | 258,773 | 262,089 | 256,051 |
Effect of dilutive securities: | ||||
Forward equity sale agreement | 223 | 216 | ||
Employee stock-based compensation | 541 | 441 | 552 | 496 |
Average common shares outstanding during the period for diluted computation | 262,754 | 259,437 | 262,641 | 256,763 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Performance period specified in grant, in years | 3 years | |||||||
Granted | 6,555 | 4,736 | 57,052 | 5,337 | 4,874 | 192,407 | ||
2004 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Underlying stock option and restricted stock awards available for grant | 0 | 0 | ||||||
Amended and Restated Equity Compensation Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized for issuance | 6,250,000 | 6,250,000 | ||||||
Maximum number of shares may be issued pursuant to stock awards, stock units and other stock-based awards | 3,125,000 | |||||||
Maximum number of shares subject to grants to any one individual in any one year | 500,000 | |||||||
Underlying stock option and restricted stock awards available for grant | 1,819,515 | 1,819,515 | ||||||
Performance Share Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period, in years | 3 years | |||||||
Granted | 160,245 | |||||||
Weighted average fair value of stock awards granted | $ 42.31 | $ 43.18 | ||||||
Amortization period of fair value of shares, in months | 36 months | |||||||
Performance Share Units [Member] | Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of target award amount the grantee may earn | 0% | |||||||
Performance Share Units [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of target award amount the grantee may earn | 200% | |||||||
Restricted Stock Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted period | 3 years | |||||||
Granted | 71,376 | |||||||
Weighted average fair value of stock awards granted | $ 45.10 | $ 44.44 | ||||||
Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted, Shares | 84,296 | 0 | ||||||
Vesting period, start, in years | 1 year | |||||||
Vesting period, in years | 10 years | |||||||
Stock Options [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 33% | |||||||
Stock Options [Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 33% | |||||||
Stock Options [Member] | Share-based Payment Arrangement, Tranche Three [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 33% | |||||||
Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted | 1,170 | |||||||
Weighted average fair value of stock awards granted | $ 42.75 | |||||||
Stock Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted | 11,260 | |||||||
Weighted average fair value of stock awards granted | $ 46.40 | $ 45.71 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of PSU Transactions) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted, Number of Share Units | 6,555 | 4,736 | 57,052 | 5,337 | 4,874 | 192,407 | ||
Performance Share Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Nonvested share units at beginning of period, Number of Share Units | 355,384 | 355,384 | ||||||
Granted, Number of Share Units | 160,245 | |||||||
Forfeited, Number of Share Units | (31,278) | |||||||
Nonvested share units at end of period, Number of Share Units | 484,351 | 484,351 | ||||||
Nonvested share units at beginning of period, Weighted Average Fair Value | $ 42.19 | $ 42.19 | ||||||
Granted, Weighted Average Fair Value | 42.31 | $ 43.18 | ||||||
Forfeited, Weighted Average Fair Value | 44.26 | |||||||
Nonvested share units at end of period, Weighted Average Fair Value | $ 42.34 | $ 42.34 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of RSU Transactions) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted, Number of Share Units | 6,555 | 4,736 | 57,052 | 5,337 | 4,874 | 192,407 | ||
Restricted Stock Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Nonvested share units at beginning of period, Number of Share Units | 193,687 | 193,687 | ||||||
Granted, Number of Share Units | 71,376 | |||||||
Stock units vested and issued, Number of Share Units | (56,738) | |||||||
Forfeited, Number of Share Units | (12,177) | |||||||
Nonvested share units at end of period, Number of Share Units | 196,148 | 196,148 | ||||||
Nonvested share units at beginning of period, Weighted Average Fair Value | $ 43.76 | $ 43.76 | ||||||
Granted, Weighted Average Fair Value | 45.10 | $ 44.44 | ||||||
Share units vested, Weighted Average Fair Value | 36.96 | |||||||
Forfeited, Weighted Average Fair Value | 44.91 | |||||||
Nonvested share units at end of period, Weighted Average Fair Value | $ 46.18 | $ 46.18 |
Stock-Based Compensation (Sum_3
Stock-Based Compensation (Summary Of Compensation Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation within operations and maintenance expenses | $ 139 | $ 94 | $ 380 | $ 395 |
Income tax benefit | 26 | 27 | 95 | 113 |
Performance Share Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation within operations and maintenance expenses | 1,676 | 1,285 | 5,018 | 4,216 |
Income tax benefit | 309 | 365 | 1,261 | 1,191 |
Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation within operations and maintenance expenses | 702 | 724 | 2,206 | 2,089 |
Income tax benefit | 126 | 205 | 554 | 586 |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation within operations and maintenance expenses | 13 | 11 | 38 | 117 |
Income tax benefit | 4 | 3 | 11 | 34 |
Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation within operations and maintenance expenses | 165 | 175 | 522 | 525 |
Income tax benefit | $ 48 | $ 51 | $ 151 | $ 152 |
Stock-Based Compensation (Assum
Stock-Based Compensation (Assumptions Used In The Pricing Model) (Details) - Stock Options [Member] | 9 Months Ended |
Sep. 30, 2022 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (years) | 5 years 5 months 23 days |
Risk-free interest rate | 1.92% |
Expected volatility | 26.50% |
Dividend yield | 2.37% |
Grant date fair value per option | $ 9.34 |
Stock-Based Compensation (Sum_4
Stock-Based Compensation (Summary Of Stock Option Transactions) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Exercised, Shares | (18,992) | (6,462) | (28,516) | (54,672) | (22,786) | (20,201) | ||
Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Outstanding at beginning of period, Shares | 813,492 | 813,492 | ||||||
Granted, Shares | 84,296 | 0 | ||||||
Forfeited, Shares | (3,695) | |||||||
Expired, Shares | (125) | |||||||
Exercised, Shares | (53,970) | |||||||
Outstanding at end of period, Shares | 839,998 | 839,998 | ||||||
Exercisable at end of period, Shares | 758,766 | 758,766 | ||||||
Outstanding at beginning of period, Weighted Average Exercise Price | $ 35.37 | $ 35.37 | ||||||
Granted, Weighted Average Exercise Price | 45.19 | |||||||
Forfeited, Weighted Average Exercise Price | 43.03 | |||||||
Expired, Weighted Average Exercise Price | 35.94 | |||||||
Exercised, Weighted Average Exercise Price | 35.37 | |||||||
Outstanding at end of period, Weighted Average Exercise Price | $ 36.33 | 36.33 | ||||||
Exercisable at end of period, Weighted Average Exercise Price | $ 35.38 | $ 35.38 | ||||||
Outstanding at end of period, Weighted Average Remaining Life (years) | 6 years 6 months | |||||||
Exercisable at end of period, Weighted Average Remaining Life (years) | 6 years 1 month 6 days | |||||||
Outstanding at end of period, Aggregate Intrinsic Value | $ 4,554 | $ 4,554 | ||||||
Exercisable at end of period, Aggregate Intrinsic Value | $ 4,554 | $ 4,554 |
Stock-Based Compensation (Sum_5
Stock-Based Compensation (Summary Of Nonvested Share Activity) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted, Number of Share Units | (6,555) | (4,736) | (57,052) | (5,337) | (4,874) | (192,407) | ||
Stock Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Nonvested share units at beginning of period, Number of Share Units | ||||||||
Granted, Number of Share Units | (11,260) | |||||||
Stock units vested and issued, Number of Share Units | (11,260) | |||||||
Nonvested share units at end of period, Number of Share Units | ||||||||
Nonvested share units at beginning of period, Weighted Average Fair Value | ||||||||
Granted, Weighted Average Fair Value | 46.40 | $ 45.71 | ||||||
Share units vested, Weighted Average Fair Value | 46.40 | |||||||
Nonvested share units at end of period, Weighted Average Fair Value |
Stock-Based Compensation (Sum_6
Stock-Based Compensation (Summary Of Restricted Stock Transactions) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Equity compensation plan, shares | (6,555) | (4,736) | (57,052) | (5,337) | (4,874) | (192,407) | |
Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Nonvested share units at beginning of period, Number of Share Units | 1,068 | 1,068 | |||||
Equity compensation plan, shares | (1,170) | ||||||
Vested, number of shares | 1,068 | ||||||
Nonvested share units at end of period, Number of Share Units | 1,170 | 1,170 | |||||
Nonvested share units at beginning of period, Weighted Average Fair Value | $ 46.83 | $ 46.83 | |||||
Granted, Weighted Average Fair Value | 42.75 | ||||||
Share units vested, Weighted Average Fair Value | 46.83 | ||||||
Nonvested share units at end of period, Weighted Average Fair Value | $ 42.75 | $ 42.75 |
Pension Plans And Other Postr_3
Pension Plans And Other Postretirement Benefits (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 | |
Pension Plans And Other Postretirement Benefits [Abstract] | |||
Cash contributions made by the Company | $ 20,390 | ||
Settlement loss | $ 2,300 | ||
Servicing Asset, Measurement Input | 5.58 | 5.58 | 2.91 |
Pension Plans And Other Postr_4
Pension Plans And Other Postretirement Benefits (Components Of Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 707 | $ 775 | $ 2,728 | $ 2,121 |
Interest cost | 3,202 | 3,351 | 9,667 | 9,605 |
Expected return on plan assets | (5,895) | (5,733) | (17,432) | (17,684) |
Amortization of prior service cost (credit) | 134 | 140 | 419 | 402 |
Amortization of actuarial loss | 435 | 555 | 2,352 | 1,306 |
Net periodic benefit cost (credit) | (1,417) | (912) | (2,266) | (4,250) |
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 478 | 698 | 2,094 | 1,433 |
Interest cost | 842 | 840 | 2,520 | 2,527 |
Expected return on plan assets | (1,142) | (1,039) | (3,117) | (3,376) |
Amortization of prior service cost (credit) | (108) | (324) | ||
Amortization of actuarial loss | (334) | 55 | 165 | (1,002) |
Net periodic benefit cost (credit) | $ (156) | $ 446 | $ 1,338 | $ (418) |
Rate Activity (Details)
Rate Activity (Details) - USD ($) $ in Thousands | 9 Months Ended | ||||
Jun. 30, 2022 | Jun. 07, 2022 | May 16, 2022 | Jan. 03, 2022 | Sep. 30, 2022 | |
Illinois And North Carolina [Member] | |||||
Water And Wastewater Rates [Line Items] | |||||
Base rate increase (decrease) | $ 7,160 | ||||
New Jersey, Ohio And Indiana [Member] | |||||
Water And Wastewater Rates [Line Items] | |||||
Base rate increase (decrease) | $ 1,378 | ||||
Pennsylvania [Member] | |||||
Water And Wastewater Rates [Line Items] | |||||
Authorized increase in revenue | $ 69,251 | ||||
Base rate increase (decrease) | $ 104,721 | ||||
Base rate increase designed to increase total operating revenues on an annual basis | 7.20% | 0% | |||
Distribution system improvement charges reset level upon new base rates | $ 35,470 | ||||
Ohio [Member] | |||||
Water And Wastewater Rates [Line Items] | |||||
Base rate increase (decrease) | $ 5,483 | ||||
Kentucky [Member] | |||||
Water And Wastewater Rates [Line Items] | |||||
Base rate increase (decrease) | $ 260 | $ 5,238 | |||
Year 1 [Member] | North Carolina [Member] | |||||
Water And Wastewater Rates [Line Items] | |||||
Base rate increase (decrease) | $ 18,064 | ||||
Year 2 [Member] | North Carolina [Member] | |||||
Water And Wastewater Rates [Line Items] | |||||
Base rate increase (decrease) | 4,303 | ||||
Year 3 [Member] | North Carolina [Member] | |||||
Water And Wastewater Rates [Line Items] | |||||
Base rate increase (decrease) | $ 4,577 |
Taxes Other Than Income Taxes_2
Taxes Other Than Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Taxes Other Than Income [Line Items] | ||||
Total taxes other than income | $ 22,625 | $ 21,058 | $ 67,352 | $ 63,219 |
Property [Member] | ||||
Taxes Other Than Income [Line Items] | ||||
Total taxes other than income | 8,545 | 8,623 | 24,798 | 25,907 |
Gross Receipts, Excise And Franchise [Member] | ||||
Taxes Other Than Income [Line Items] | ||||
Total taxes other than income | 4,371 | 4,223 | 12,484 | 11,857 |
Payroll [Member] | ||||
Taxes Other Than Income [Line Items] | ||||
Total taxes other than income | 4,695 | 5,082 | 16,133 | 16,556 |
Regulatory Assessments [Member] | ||||
Taxes Other Than Income [Line Items] | ||||
Total taxes other than income | 1,486 | 951 | 5,063 | 2,637 |
Pumping Fees [Member] | ||||
Taxes Other Than Income [Line Items] | ||||
Total taxes other than income | 2,824 | 1,752 | 6,147 | 4,343 |
Other [Member] | ||||
Taxes Other Than Income [Line Items] | ||||
Total taxes other than income | $ 704 | $ 427 | $ 2,727 | $ 1,919 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2022 segment item | |
Segment Reporting Information [Line Items] | |
Operating Segments | 12 |
Reportable Segments | 2 |
Other [Member] | |
Segment Reporting Information [Line Items] | |
Operating Segments | item | 3 |
Water And Wastewater Utility Systems [Member] | |
Segment Reporting Information [Line Items] | |
Operating Segments | 8 |
Reportable Segments | 1 |
Natural Gas [Member] | |
Segment Reporting Information [Line Items] | |
Operating Segments | 1 |
Segment Information (Company's
Segment Information (Company's Segment Information, Continuing Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||||||
Operating revenues | $ 434,618 | $ 361,860 | $ 1,582,649 | $ 1,342,457 | |||||
Operations and maintenance expense | 151,361 | 139,355 | 428,923 | 391,945 | |||||
Purchased gas | 52,041 | 25,488 | 354,896 | 202,538 | |||||
Depreciation and amortization | 82,730 | 74,507 | 240,252 | 221,623 | |||||
Taxes other than income taxes | 22,625 | 21,058 | 67,352 | 63,219 | |||||
Operating income | 125,861 | 101,452 | 491,226 | 463,132 | |||||
Interest expense, net | 58,978 | 51,567 | 166,402 | 153,647 | |||||
Allowance for funds used during construction | (5,812) | (6,082) | (17,802) | (13,922) | |||||
Other | (740) | 3,699 | (3,343) | (2,016) | |||||
Income before income taxes | 73,435 | 52,268 | 345,969 | 325,423 | |||||
Provision for income taxes | 4,797 | 1,765 | (4,336) | 10,317 | |||||
Net income | 68,638 | $ 82,291 | $ 199,376 | 50,503 | $ 80,914 | $ 183,689 | 350,305 | 315,106 | |
Capital expenditures | 719,688 | 675,845 | |||||||
Total assets | 15,279,792 | 15,279,792 | $ 14,658,278 | ||||||
Water [Member] | Regulated [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Operating revenues | 301,335 | 259,859 | 809,888 | 736,389 | |||||
Operations and maintenance expense | 94,854 | 86,923 | 273,757 | 243,071 | |||||
Depreciation and amortization | 51,522 | 45,506 | 150,498 | 136,189 | |||||
Taxes other than income taxes | 16,809 | 16,291 | 48,262 | 47,756 | |||||
Operating income | 138,150 | 111,139 | 337,371 | 309,373 | |||||
Interest expense, net | 27,762 | 27,389 | 82,920 | 80,971 | |||||
Allowance for funds used during construction | (5,161) | (5,407) | (15,657) | (13,091) | |||||
Other | (2,219) | (1,896) | (5,891) | (5,265) | |||||
Income before income taxes | 117,768 | 91,053 | 275,999 | 246,758 | |||||
Provision for income taxes | 19,182 | 9,230 | 40,528 | 22,056 | |||||
Net income | 98,586 | 81,823 | 235,471 | 224,702 | |||||
Capital expenditures | 382,853 | 404,894 | |||||||
Total assets | 8,666,230 | 8,666,230 | 8,403,586 | ||||||
Natural Gas [Member] | Regulated [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Operating revenues | 118,985 | 94,752 | 731,897 | 579,429 | |||||
Operations and maintenance expense | 51,850 | 53,954 | 156,209 | 157,614 | |||||
Purchased gas | 41,124 | 20,386 | 321,822 | 183,062 | |||||
Depreciation and amortization | 30,295 | 28,194 | 89,130 | 83,905 | |||||
Taxes other than income taxes | 5,073 | 4,271 | 16,878 | 13,356 | |||||
Operating income | (9,357) | (12,053) | 147,858 | 141,492 | |||||
Interest expense, net | 20,323 | 18,406 | 60,146 | 56,125 | |||||
Allowance for funds used during construction | (651) | (675) | (2,145) | (831) | |||||
Other | 838 | 5,329 | 404 | 4,462 | |||||
Income before income taxes | (29,867) | (35,113) | 89,453 | 81,736 | |||||
Provision for income taxes | (12,734) | (6,821) | (44,378) | (11,128) | |||||
Net income | (17,133) | (28,292) | 133,831 | 92,864 | |||||
Capital expenditures | 335,738 | 269,958 | |||||||
Total assets | 6,163,931 | 6,163,931 | 5,960,602 | ||||||
Other [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Operating revenues | 14,298 | 7,249 | 40,864 | 26,639 | |||||
Operations and maintenance expense | 4,657 | (1,522) | (1,043) | (8,740) | |||||
Purchased gas | 10,917 | 5,102 | 33,074 | 19,476 | |||||
Depreciation and amortization | 913 | 807 | 624 | 1,529 | |||||
Taxes other than income taxes | 743 | 496 | 2,212 | 2,107 | |||||
Operating income | (2,932) | 2,366 | 5,997 | 12,267 | |||||
Interest expense, net | 10,893 | 5,772 | 23,336 | 16,551 | |||||
Other | 641 | 266 | 2,144 | (1,213) | |||||
Income before income taxes | (14,466) | (3,672) | (19,483) | (3,071) | |||||
Provision for income taxes | (1,651) | (644) | (486) | (611) | |||||
Net income | (12,815) | $ (3,028) | (18,997) | (2,460) | |||||
Capital expenditures | 1,097 | $ 993 | |||||||
Total assets | $ 449,631 | $ 449,631 | $ 294,090 |
Segment Information (Company'_2
Segment Information (Company's Segment Information, Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 15,279,792 | $ 14,658,278 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 449,631 | 294,090 |
Regulated [Member] | Water [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 8,666,230 | 8,403,586 |
Regulated [Member] | Natural Gas [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 6,163,931 | $ 5,960,602 |
Commitments And Contingencies (
Commitments And Contingencies (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Commitments And Contingencies [Abstract] | |
Aggregate amount accrued for loss contingencies | $ 20,395 |
Amount probable of recovery through insurance | 2,131 |
Insurance reserve for employee medical benefit program | $ 2,327 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jul. 08, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 15, 2020 | |
Income Taxes [Line Items] | ||||||
Effective income tax rate | 6.50% | 3.40% | (1.30%) | 3.20% | ||
Corporate federal income tax rate | 21% | 21% | 21% | 21% | ||
Decrease in deferred income tax liability | $ 232,361 | |||||
Regulatory Liabilities | 13,808 | $ 13,808 | $ 160,655 | |||
Natural Gas Accounts Receivable [Member] | ||||||
Income Taxes [Line Items] | ||||||
Refunded payments | $ 3,278 | $ 20,516 | ||||
Minimum [Member] | ||||||
Income Taxes [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, at State Statutory Income Tax Rate, Percent | 0.50% | |||||
Minimum [Member] | State [Member] | ||||||
Income Taxes [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, at State Statutory Income Tax Rate, Percent | 2.50% | |||||
Maximum [Member] | ||||||
Income Taxes [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, at State Statutory Income Tax Rate, Percent | 4.99% | |||||
Maximum [Member] | State [Member] | ||||||
Income Taxes [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, at State Statutory Income Tax Rate, Percent | 9.99% | |||||
Pennsylvania [Member] | Minimum [Member] | ||||||
Income Taxes [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, at State Statutory Income Tax Rate, Percent | 9.99% | 9.99% | ||||
Pennsylvania [Member] | Maximum [Member] | ||||||
Income Taxes [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, at State Statutory Income Tax Rate, Percent | 8.99% | 8.99% |