Q1 2024 American Water Works Company Inc Earnings Call Transcript
Key Points
- Earnings per share increased to $0.95 in Q1 2024 from $0.91 in the previous year, indicating solid financial performance.
- Successful long-term debt issuance of $1.4 billion aligns with the company's 2024 financing plan, supporting capital growth.
- Dividend increased by 8.1% to $0.765 per share, continuing a trend of consistent dividend growth over the past five years.
- Invested over $600 million in infrastructure during the quarter, demonstrating commitment to maintaining and improving service quality.
- Affirmed long-term targets for earnings and dividend growth at 7% to 9%, reflecting confidence in sustained financial health and operational success.
- Increased operating and maintenance costs by $0.07 per share due to higher fuel, power, and chemical costs, as well as rising employee-related expenses.
- Depreciation and long-term financing costs increased, reflecting higher expenses associated with investment growth.
- Challenges related to PFAS regulations, including potential impacts of new EPA rules and ongoing litigation risks.
- Regulatory pressures and scrutiny, particularly in Pennsylvania, where there is significant discussion about rate cases and fair market value revisions.
- Higher interest rates pose challenges for financing, although the company is actively managing these through strategic debt issuance.
Good morning, and welcome to American Water's First Quarter 2024 Earnings Conference Call. As a reminder, this call is being recorded and is also being live webcast with an accompanying slide presentation through the company's Investor Relations website. The audio webcast archive will be available for 1 year on American Water's Investor Relations website.
I would now like to introduce your host for today's call, Aaron Musgrave, Vice President of Investor Relations. Mr. Musgrave, you may begin.
Thank you, Betsy. Good morning, everyone, and thank you for joining us for today's call. At the end of our prepared remarks, we will open the call for your questions. Let me first go over some safe harbor language. Today, we will be making forward-looking statements that represent our expectations regarding our future performance or other future events. These statements are predictions based on our current expectations, estimates and assumptions. However, since these statements deal with future events,
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