Slides
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Second Quarter 2026 NYSE LISTED WTRG Essential Earnings Call August 5th , 2026
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2 Brian Dingerdissen Vice President Treasury, FP&A and Investor Relations
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Forward Looking Statement 3 This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which generally include words such as “believes,” “expects,” “intends,” “anticipates,” “estimates,” and similar expressions. The Company can give no assurance that any actual or future results or events discussed in these statements will be achieved. Any forward-looking statements represent its views only as of today and should not be relied upon as representing its views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause the company’s actual results to differ materially from the statements contained in this release. Such forward-looking statements include, among others: the anticipated receipt of regulatory approvals for, and closing of, the company’s proposed merger with American Water, the company’s belief that it will comply with the finalized EPA PFAS rules, the guidance range of net income per diluted common share; the anticipated amount of infrastructure investment in 2026; the Company’s anticipated use of equity and debt financing and, that the Company has a multiyear plan to ensure that finished water does not exceed the federal maximum contaminant level for the six EPA regulated PFAS chemicals. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: the expected timing and likelihood of completion of our proposed Merger with American Water; changes in the EPAs regulations; changes in the United States’ governmental policies, including those from the Executive Branch; disruptions in the global economy; potential disruptions in the supply chain for raw and finished materials; the continuation of the company's growth-through-acquisition program; general economic business conditions; the company’s ability to successfully execute any equity or debt financing transactions, including on an as needed basis; housing and customer growth trends; unfavorable weather conditions; the success of certain cost- containment initiatives; changes in regulations or regulatory treatment; the company’s ability to successfully close municipally owned systems presently under agreement and successfully complete other acquisitions and dispositions; and other factors discussed in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, which are filed with the Securities and Exchange Commission. For more information regarding risks and uncertainties associated with Essential's business, please refer to Essential's annual, quarterly, and other SEC filings. Essential is not under any obligation - and expressly disclaims any such obligation - to update or alter its forward-looking statements whether as a result of new information, future events, or otherwise. For a discussion and reconciliation of Non-GAAP financial measures, see the Appendix to this presentation.
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4 Christopher Franklin Chairman and Chief Executive Officer
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Corporate Updates 5 Q2 2026 EPS $0.37 GAAP $0.38 Non-GAAP Affirm Financial and Growth Guidance (1) Received Merger Approval from Virginia State Commission Increased Quarterly Dividend 5.25% From adjusted 2024 EPS of $1.97 (Non-GAAP)1 Received Merger Approval from Public Utilities Commission of Ohio
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6 Continued Progress on the Path to Merger Close Three state approvals received
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7 Daniel Schuller EVP, Chief Financial Officer
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8 8/4/2026 Earnings Per Common Share Q2 2026 vs. Q2 2025 $0.38 $0.06 $0.02 $0.01 $(0.02) $(0.02) $(0.06) $0.37 $0.01 $0.38 Q2 2025 Rates & Surcharges Volume - Water Growth - Water Expenses Volume - Gas Other Q2 2026 Pre-Merger Expenses Q2 2026 $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 $0.40 $0.45 $0.50 Change in Earnings per Share GAAP Non-GAAPGAAP
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Regulatory Activity As of August 5th, 2026 9 PENDING REGULATORY RECOVERIES Water segment base rate cases or surcharges in TX, VA, IL, IN and NJ with requested annualized revenue increase of $79.7 million Gas segment base rate in PA with requested annualized revenue increase of $163.2 million 2026 COMPLETED REGULATORY RECOVERIES Water segment base rate cases or surcharges in PA, IL, OH, and NC and IN with annualized revenue increase of $43.9 million Gas segment base rate cases or surcharges in PA and KY with annualized revenue increase of $12.7 million
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10 Christopher Franklin Chairman and Chief Executive Officer
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(1) Essential's estimate of the number of equivalent dwelling units. (2) Additional APAs are signed in PA, NJ, NC, VA and TX. (3) Dril-Quip and Integra are privately owned utilities. - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 2015 2017 2019 2021 2023 2025 Customers Continued Water and Wastewater Acquisition Success 11 ~ 200,000 1 Total Customers ~$282M Total Purchase Price Over 138,000 1 water and wastewater customers and approximately $570 Million in rate base acquired through M&A since 2015 Selected Pending Transactions (2) Cumulative Additions of Customers Through Acquisitions Since 2015 TX TX PA Transactions Closed in 2026 DELCORA • Wastewater • 198,000 customers(1) • $276.5M purchase price DRIL-QUIP(3) • Water/Wastewater • 380 customers • $1.1M purchase price INTEGRA(3) • Wastewater • 1100 customers • $4.9M purchase price PA GREENVILLE • Water • 3,000 customers • $18.0M purchase price
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Guidance Outlook 12 Earnings Per Share Capital Expenditure In 2026, regulated infrastructure investments are expected to be $1.7 billion. PFAS Multiyear plan to ensure that finished water does not exceed the federal maximum contaminant level of the six EPA-regulated PFAS chemicals. Commitment to providing finished water that will meet the EPA timelines and standards. Dividends & Capital Structure Dividend Payout Ratio Debt to Capital Ratio FFO to Net Debt Ratio 60 - 65% 50 - 55% > 12% Anticipated growth in long-term earnings per share at a compound annual growth rate of 5 to 7% from the adjusted 2024 earnings per share of $1.97 (non-GAAP) for the three-year period through 2027.
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Brian Dingerdissen Vice President, Investor Relations, FP&A and Treasury (610) 645-1191 BJDingerdissen@Essential.co For More Information Contact: 13 Ed Vallejo Director, Investor Relations (267) 370-9717 EdVallejo@Essential.co
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14 Appendix
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15 Earnings Per Common Share YTD June 2026 vs. YTD June 2025 $1.41 $0.13 $0.02 $0.01 $(0.02) $(0.12) $(0.27) $1.16 $0.05 $1.21 Q2 2025 Rates & Surcharges Volume - Water Growth - Water Volume - Gas Expenses Other Q2 2026 Pre-Merger Expenses Q2 2026 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 Change in Earnings per Share GAAP Non-GAAPGAAP
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Reconciliation of GAAP to Non-GAAP Financial Measures 16
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GAAP to Non-GAAP Reconciliation Year Ended December 31, 2024 17 (in millions, except per share data) FY 2024 Net income (GAAP financial measure) $595.3 Adjustments: Gain on sales of assets and related transaction activities (94.0) Adjustments for estimated effects of unfavorable weather 18.7 Income tax effect of non-GAAP adjustments 20.9 Adjusted income (Non-GAAP financial measure) $540.9 Net income per common share (GAAP financial measure): Basic $2.17 Diluted $2.17 Adjusted income per common share (Non-GAAP financial measure): Basic $1.97 Diluted $1.97 Average common shares outstanding: Basic 273.9 Diluted 274.4
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GAAP to Non-GAAP Reconciliation Three Months Ended June 30, 2026 18 (in millions, except per share data) 2Q 2026 Net income (GAAP financial measure) $ 105,725 Adjustments: Costs associated with the pending merger 1,191 Income tax effect of non-GAAP adjustments (321) Adjusted income (Non-GAAP financial measure) $ 106,595 Net income per common share (GAAP financial measure): Basic $ 0.37 Diluted $ 0.37 Adjusted income per common share (Non-GAAP financial measure): Basic $ 0.38 Diluted $ 0.38 Average common shares outstanding: Basic 283,655 Diluted 284,088
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GAAP to Non-GAAP Reconciliation Six Months Ended June 30, 2026 19 (in millions, except per share data) YTD Net income (GAAP financial measure) $ 330,117 Adjustments: Costs associated with the pending merger 17,521 Income tax effect of non-GAAP adjustments (4,716) Adjusted income (Non-GAAP financial measure) $ 342,922 Net income per common share (GAAP financial measure): Basic $ 1.16 Diluted $ 1.16 Adjusted income per common share (Non-GAAP financial measure): Basic $ 1.21 Diluted $ 1.21 Average common shares outstanding: Basic 283,419 Diluted 283,998
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State by State Comparison of Services As of December 31st, 2025 Water and Wastewater Gas Distribution State Rate Base (millions) Water Connections (thousands) Wastewater Connections (thousands) Total Customers (thousands) Rate Base (millions) Total Customers (thousands) PA $4,850 460.0 68.0 528.0 $4,454 706.3 IL $609 69.9 24.9 94.8 OH $585 155.1 11.2 166.3 TX $694 76.7 26.0 102.7 NC $464 88.0 23.7 111.7 NJ $332 56.5 7.0 63.5 KY $181 41.1 VA $146 27.7 8.6 36.3 IN $126 1.4 31.8 33.2 TOTAL $7,806 935.3 201.2 1,136.5 $4,635 747.4 20
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2026 Regulatory Activity Completed 21 As of August 5th, 2026 State Effective Date Docket Number Segment Type Annualized Revenue Increase ($ 000's) 1/1/2026 N/A Water Rate Case 889 1/1/2026 N/A Water Rate Case 945 7/22/2026 25-594-WW-AIR Water Rate Case* 9,496 7/22/2026 25-593-ST-AIR Wastewater Rate Case* 1,040 1/1/2026 N/A Wastewater Rate Case 117 4/1/2026 N/A Wastewater Rate Case 886 1/1/2026 WRM #25-033 Water Rate Case 1,872 1/1/2026 SRM #25-030 Wastewater Rate Case 738 1/1/2026 W-218, Sub 629 Water Rate Case - Year 1 14,074 1/1/2026 W-218, Sub 629 Wastewater Rate Case - Year 1 7,020 1/1/2026 W-218, Sub 629 Water Rate Case - Year 1 1,278 1/1/2026 W-218, Sub 629 Water Rate Case - Year 1 1,124 1/1/2026 W-218, Sub 629 Wastewater Rate Case - Year 1 743 4/1/2026 M-2026-3061233 Water Surcharge 127 4/1/2026 M-2026-3061275 Wastewater Surcharge 174 7/1/2026 M-2026-3063442 Water Surcharge 3,127 7/1/2026 M-2026-3063510 Wastewater Surcharge 225 1/1/2026 M-2025-3053185 Gas Surcharge 4,946 4/1/2026 M-2026-3060167 Gas Surcharge 1,611 7/1/2026 M-2026-3060167 Gas Surcharge 3,247 Kentucky 1/1/2026 2025-00333 Gas Surcharge 2,819 6/1/2026 2026-00084 Gas Surcharge 72 Total 56,572 * OCC filed an application for Rehearing of the Aqua Ohio Rate Case. Pennsylvania North Carolina Ohio Indiana Illinois Pennsylvania
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Regulatory Activity Pending As of August 5th, 2026 *Revenue increase over multi-year rate plan through December 2028 22 State Docket Number Segment Type Requested Annualized Revenue Increase ($ 000's) Texas 58124 Water Rate Case 29,148 Virginia CASE NO. PUR-2025-00071 Water Rate Case 7,927 New Jersey WR26010017 Water Rate Case 7,886 Indiana Cause No. 46425 Wastewater Rate Case 7,081 Illinois 26-0495 Water Rate Case 26,501 New Jersey WR25060367 Water Surcharge 1,120 Water and Wastewater 79,663 Pennsylvania R-2026-3060855 Gas Rate Case 163,171 Gas 163,171 Total 242,834