Essential Utilities

Essential Utilities: A Reliable Partner

Meet Essential Utilities, a trusted provider of water (~55% of revenue) and natural gas (~45%) services, primarily serving Pennsylvania and the Mid-Atlantic region. For decades, Essential has delivered consistent income to investors.

Stability and Predictability

Almost all revenue comes from regulated utilities, ensuring:

• Guaranteed rates of return

• Essential services, unaffected by economic downturns

This stability has enabled Essential to achieve 33 consecutive years of annual dividend growth.

Financial Strength

While recent infrastructure investments have increased debt, Essential's:

• A- credit rating reflects financial resilience

• Expected decline in leverage as projects come online

Essential's strong foundation sets the stage for continued growth:

Expanding Water Services

• Consolidating municipal water systems in a highly fragmented market

• Recent Pennsylvania regulatory reforms enhance cost recovery and transaction appeal

Natural Gas Operations

• Secured key regulatory approval for stable revenue

• Weather normalization adjustment reduces earnings volatility

Stable Income & Growth

• Regulated business model ensures predictable revenue

• Favorable regulatory climate supports expansion

• Attractive opportunities in water services

Investment Highlights

• 3%+ dividend yield

• Favorable valuation with 20% potential return to historical levels

• Stable income and growth prospects