Essential Utilities Inc

WTRG: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$69.00	Kjzxzl	Vyknpflrw

Essential Utilities' Water Business Is Its Growth Engine

Travis Miller

Jan 24, 2023

Business Strategy and Outlook

For more than 50 years, Essential Utilities--formerly Aqua America--was one of the few pure-play water utilities in the United States. But its $4.3 billion acquisition of Peoples Gas in March 2020 made the company nearly 50% larger and diversified its earnings mix. The gas business contributes about one third of earnings on a normalized basis. We think that share will slowly shrink as Essential continues to pursue municipal water system acquisitions.

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