Slides
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NYSE LISTED WTRG February 2024 Third Quarter 2026 Earnings Call November 4th, 2026
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2 Ed Vallejo Director 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 and the anticipated amount of infrastructure investment in 2026. 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 Q3 2026 EPS $0.36 GAAP $0.38 Non-GAAP On track to invest $1.7 billion in infrastructure improvements PA ALJ recommended decision in Peoples Gas case for $105 million Declared quarterly dividend payable December 1, 2026 Progress continues on proposed merger with American Water
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6 Continued Progress on the Path to Merger Close
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7 Daniel Schuller EVP, Chief Financial Officer
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8 1 Earnings Per Common Share Q3 2026 vs. Q3 2025 $0.33 $0.06 $0.01 -$0.04 $0.36 $0.02 $0.38 Q3 2025 Rates & Surcharges Volume - Gas Other Q3 2026 Pre-Merger Expenses Q3 2026 $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 $0.40 $0.45 $0.50 Non-GAAP GAAP GAAP
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Regulatory Activity As of November 4th, 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 $78.5 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 OH, IN, IL, NC, PA and NJ with annualized revenue increase of $53.6 million Gas segment base rate cases or surcharges in PA and KY with annualized revenue increase of $16.9 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 NC and VA. (3) Represent privately owned utilities. - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 2015 2017 2019 2021 2023 2025 Customers Continued Water and Wastewater Acquisition Success 11 ~ 208,000 1 Total Customers ~$290M 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 PA Transactions Closed in 2026 DELCORA • Wastewater • 198,000 customers(1) • $276.5M purchase price DRIL-QUIP(3) • Water/Wastewater • 400 customers • $1.1M purchase price INTEGRA(3) • Wastewater • 1,100 customers • $4.9M purchase price PA GREENVILLE • Water • 3,000 customers • $18.0M purchase price PA Buckingham Springs (3) • Water/Wastewater • 1,300 customers(1) • $2.8M purchase price PA Hempfield • Wastewater • 1,200 customers • $2.2M purchase price Red Bird (Central States) • Water/Wastewater • 4,100 customers • $3.5M purchase price
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For More Information Contact: 12 Ed Vallejo Director, Investor Relations (267) 370-9717 EdVallejo@Essential.co
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13 Appendix
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Earnings Per Common Share YTD September 30, 2026 vs. YTD September 30, 2025 $1.73 $0.20 $0.02 $0.01 $(0.02) $(0.11) $(0.30) $1.53 $0.05 $1.58 YTD Q3 2025 Rates & Surcharges Volume - Water Growth - Water Volume - Gas Expenses Other YTD Q3 2026 Pre-Merger Expenses YTD Q3 2026 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 $2.20 Change in Earnings per Share GAAP Non-GAAPGAAP
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Reconciliation of GAAP to Non-GAAP Financial Measures 15
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GAAP to Non-GAAP Reconciliation Three Months Ended September 30, 2026 16 (in millions, except per share data) 3Q 2026 Net income (GAAP financial measure) $ 103,835 Adjustments: Costs associated with the pending merger 4,934 Income tax effect of non-GAAP adjustments (1,328) Adjusted income (Non-GAAP financial measure) $ 107,441 Net income per common share (GAAP financial measure): Basic $ 0.37 Diluted $ 0.36 Adjusted income per common share (Non-GAAP financial measure): Basic $ 0.38 Diluted $ 0.38 Average common shares outstanding: Basic 284,466 Diluted 285,021
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GAAP to Non-GAAP Reconciliation Nine Months Ended September 30, 2026 17 (in millions, except per share data) YTD Net income (GAAP financial measure) $ 433,952 Adjustments: Costs associated with the pending merger 22,455 Income tax effect of non-GAAP adjustments (6,045) Adjusted income (Non-GAAP financial measure) $ 450,362 Net income per common share (GAAP financial measure): Basic $ 1.53 Diluted $ 1.53 Adjusted income per common share (Non-GAAP financial measure): Basic $ 1.59 Diluted $ 1.58 Average common shares outstanding: Basic 283,772 Diluted 284,395
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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 $4,635 747.4 18
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2026 Regulatory Activity Completed 19 As of November 3rd, 2026 State Effective Date Docket Number Segment Type Annualized Revenue Increase ($ 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 10/1/2026 M-2026-3065392 Water Surcharge 8,232 10/1/2026 M-2026-3065423 Wastewater Surcharge 391 New Jersey 9/2//2026 WR25060367 Water Surcharge 1,120 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 10/1/2026 M-2026-3065289 Gas Surcharge 4,168 Kentucky 1/1/2026 2025-00333 Gas Surcharge 2,819 6/1/2026 2026-00084 Gas Surcharge 72 Total 70,483 * 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 November 3rd, 2026 *Revenue increase over multi-year rate plan through December 2028 20 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 Water and Wastewater 78,543 Pennsylvania R-2026-3060855 Gas Rate Case 163,171 Gas 163,171 Total 241,714