Essential Utilities Says In February, We Provided Guidance For 2024 Net Income Per Diluted Common Share To Be $1.96-$2.00. Due To Q1 2024 Results, We Anticipate Exceeding This 2024 Guidance As A Result Of The Gain On Sale Of The Energy Plant Assets, Despite The Warmer-Than-Normal Weather That Resulted In Lower Regulated Natural Gas Operating Revenues
Portfolio Pulse from Benzinga Newsdesk
Essential Utilities anticipates exceeding its 2024 net income guidance of $1.96-$2.00 per diluted share due to Q1 gains from the sale of energy plant assets, despite lower natural gas revenues from warm weather. The company plans $1.3-$1.4 billion in regulated infrastructure investments in 2024, with a total of $7.2 billion through 2028, focusing on water and natural gas segments. The water segment's rate base is expected to grow at an 8% CAGR, and the natural gas segment at a 10% CAGR through 2028. Customer bases in both segments are expected to grow, with $250 million in equity to be raised in 2024.
May 02, 2024 | 9:04 pm
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Essential Utilities projects surpassing its 2024 earnings guidance, plans significant infrastructure investments, and expects to raise $250 million in equity.
The positive revision of the 2024 earnings guidance, due to the gain on sale of energy plant assets, indicates a strong financial performance and operational efficiency. The substantial planned investments in infrastructure and the strategy to raise equity demonstrate a clear path for growth and capital strengthening. These factors are likely to be viewed positively by investors, potentially leading to an increase in stock price in the short term.
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