On this page of StockholderLetter.com we present the latest annual shareholder letter from Essential Utilities, Inc. — ticker symbol WTRG. Reading current and past WTRG letters to shareholders can bring important insights into the investment thesis.

 •  3/25/2025 Letter Continued (Full PDF)
 •  3/20/2023 WTRG Stockholder Letter
 •  3/19/2024 WTRG Stockholder Letter
 •  More "Water Utilities" Category Stockholder Letters
 •  WTRG Benford's Law Stock Score = 72

WTRG Shareholder/Stockholder Letter Transcript:

2024 Year in Review
Our Footprint
9
5.5 million
1.9 million
3,200+
states
people served
customer connections
employees
Our Impact
4,500
$5M
550+
employee
volunteer hours
in charitable
donations
community organizations
supported
Our Investment
2   
425
$1.3+ billion
$10.7 million
miles of pipeline
replaced or retired
in infrastructure improvement
invested in smart
natural gas meters
$27 million
1,670
$23 million
invested in
PFAS mitigation
lead service
lines replaced
invested in lead service
line remediation
2024 ANNUAL REPORT

A Word From Our Chairman & CEO
Dear Shareholders,
Re   ecting on the past year, I am reminded of the dynamic
landscape in which we live. The water, wastewater and
natural gas sectors face pressing challenges    PFAS
contamination, aging infrastructure and unusual weather   
all while we work to keep customer rates affordable. These
challenges also present opportunities to lead with purpose
and shape a future rooted in sustainability, innovation,
resilience and best-in-class service for our customers.
Our theme,    Leading Today, Shaping Tomorrow,    captures
our dual focus: solving today   s challenges while building
a sustainable future. With pride and con   dence, I share
our 2024 achievements and vision for the future of our
138-year-old company.
This year, our strong    nancial results re   ected a disciplined
approach to operating and capital expense management,
ensuring consistent returns for shareholders. Operational
excellence is central to our success. In fact,    the pursuit of
excellence    is one of the three corporate values we hold
and display proudly at each facility around the company.
Regulatory Milestones
In the utility business, regulatory reputation is critical. It
begins with how we treat customers and deliver on our
service commitments. It   s also why we are proud of our
2024 regulatory accomplishments in our home state of
Pennsylvania. The successful conclusion of our water and
natural gas rate cases included approval of a weather
normalization mechanism   a regulatory tool that stabilizes
natural gas customer bills and company revenue amid
weather    uctuations.
Tackling Pressing Challenges
This year we were appointed receiver for 10 water and
wastewater systems that were undercapitalized and, in
some cases, dilapidated. We stabilized operations and
improved the long-term viability of the systems. We used
our patent-pending PFAS treatment and lead service line
replacements to protect public health and comply with
emerging federal regulations. The deployment of smart
meters in our gas business has the potential to save lives
in cases of over-pressurization. These initiatives were
accomplished while we reduced greenhouse gas emissions
through extensive natural gas pipeline replacement
and explored hydrogen energy as a cleaner alternative,
positioning us at the forefront of energy innovation.
Customer-Centric Innovations
Innovation is key to meeting evolving customer needs.
Our ePortal and smart metering systems provide customers
with greater convenience and deeper insights into
consumption, reinforcing our commitment to an improved
customer experience.
Business Resilience
Our work to mitigate risk in the natural gas business led us
to accelerate gas pipeline replacements and address aging
underground storage wells to make them safer and cleaner
for the environment. We also implemented Supervisory
Control and Data Acquisition (SCADA) monitoring systems to
ensure water safety and reliability.
By staying ahead of potential challenges, our customers and
employees are safer.
Steady Growth
In Pennsylvania, we recognized that the acquisition of
municipal water and wastewater systems were receiving
some opposition, so we worked closely with the PUC to
bring reform to the Pennsylvania fair market value (FMV)
statute. The new regulation will provide greater certainty for
municipal transactions, support rate affordability and advance
regionalization, where Essential Utilities can be a solution.
The current buzz in the utility industry is the rise of data
centers and the resulting AI-driven power demand. While
some investors see greater growth in electric utilities, we
offer a unique advantage: stability as the second largest
investor-owned water utility in the U.S., and growth potential
from data centers in our natural gas service territory. We are
currently in discussions with developers planning over 5 GW
of power demand in our region.
Above all, we remain committed to sustainable growth and
long-term stability   delivering value to our shareholders
while ensuring future generations bene   t from our
operations and strategies.
None of this would be possible without our dedicated team,
strong partnerships with communities and regulators, and
trust of our customers.
To our shareholders, thank you for your continued con   dence
and investment. The foundation we have built positions us to
continue leading with purpose and delivering value for years
to come.
With optimism
mism and resolve,
er H. Franklin
Christopher
nd CEO,
Chairman and
ilities, Inc.
Essential Utilities,

   3
2024
20
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02
24
4 ANNUAL
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2024 Financial Highlights
In thousands of dollars, except per-share amounts
2024
2023
% Change
$2,086,113
$2,053,824
1.6%
Regulated Water Segment Revenues
$1,221,880
$1,153,376
5.9%
Regulated Natural Gas Segment Revenues
$842,991
$863,759
-2.4%
Operations and Maintenance Expense
$587,250
$575,518
2.0%
Net income
$595,314
$498,226
19.5%
$1,329,747
$1,199,103
10.9%
$2.17
$1.86
16.7%
$1.3020
$1.2284
6.0%
$18,026,554
$16,841,459
7.0%
1,869,306
1,857,461
0.6%
Operating Revenues
Regulated Segments:
Capital Expenditures
Diluted net income per common share
Annualized dividend rate per common share (12/31)
Total Assets
Number of utility customers served (12/31)
4   
2024 ANNUAL REPORT

$2.17
$1.302
$1.228
$1.86
$1.148
$1.77
$1.67
$1.073
$1.003
$1.27
2020 (1)(2)
2021
2022
2024 (3)
2023
Diluted Adjusted Income
per Common Share
$1,329.7
2021
2022
2023
2024
Dividends per Share
(annualized)
Natural Gas
Water
$1,199.1
$1,020.5
2020
751,502
753,244
756,341
743,746
745,439
1,047,301
1,066,805
1,095,245
1,113,715
1,123,867
2020
2021
2022
2023
2024
$1,062.8
$889.1
2020 (4)
2021
2022
2023
2024
Capital Investment
Utility Customer Connections
(in millions of dollars)
(1) 2020 Net income per share was $1.12 (GAAP). 2020 adjusted for transaction costs and other items related to the Peoples transaction (Non-GAAP).
(2) Includes Peoples    operating results as of the closing date of the Peoples acquisition on March 16, 2020.
(3) 2024 Adjusted Income per Common Share (Non-GAAP) was $1.97.
(4) 2020 Capital investment includes $53.5 million of capital invested by Peoples prior to closing.
Please see the investor relations page of Essential.co for a reconciliation of GAAP to non-GAAP    nancial measures.
2024 ANNUAL REPORT      5



 3/25/2025 Letter Continued (Full PDF)