Essential Utilities Inc
For the period ended Dec 31, 2023. Filed Feb 29, 2024.
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FY2023 · Filed Feb 29, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Schedule 1 – Condensed Parent Company Financial Statements
| December 31, | ||
|---|---|---|
| 2023 | 2022 | |
| Assets | ||
| Current assets: | ||
| Accounts receivable, net | $284 | $575 |
| Accounts receivable - affiliates | 907,302 | 1,601,064 |
| Prepayments and other current assets | 15,383 | 14,256 |
| Total current assets | 922,969 | 1,615,895 |
| Deferred charges and other assets, net | 66,826 | 69,455 |
| Notes receivable - affiliates | 2,765,670 | 2,276,670 |
| Deferred income tax asset | 183,179 | 42,206 |
| Investment in subsidiaries | 6,517,312 | 6,512,224 |
| Total assets | $10,455,956 | $10,516,450 |
| Liabilities and Equity | ||
| Stockholders' equity | $5,896,183 | $5,377,386 |
| Long-term debt, excluding current portion, net of debt issuance costs | 3,740,427 | 3,503,636 |
| Current liabilities: | ||
| Accrued interest | 21,635 | 20,923 |
| Accounts payable - affiliates | 562,101 | 1,418,574 |
| Dividends payable | 83,929 | 75,808 |
| Other accrued liabilities | 24,462 | 21,234 |
| Total current liabilities | 692,127 | 1,536,539 |
| Other liabilities | 127,219 | 98,889 |
| Total liabilities and equity | $10,455,956 | $10,516,450 |
| The accompanying condensed notes are an integral part of these condensed financial statements. | ||
Condensed Statements of Income and Comprehensive Income
| Years ended December 31, | |||
|---|---|---|---|
| 2023 | 2022 | 2021 | |
| Other income | $2,985 | $5,368 | $8,388 |
| Operating expense and other expenses | 6,479 | 10,724 | 5,821 |
| Operating income (loss) | (3,494) | (5,356) | 2,567 |
| Interest expense | 64,031 | 35,817 | 21,729 |
| Interest income | (348) | (107) | (9) |
| Other (income) expense | (584) | 893 | (609) |
| Loss before equity in earnings of subsidiaries and income taxes | (66,593) | (41,959) | (18,544) |
| Equity in earnings of subsidiaries | 547,617 | 495,556 | 445,951 |
| Income before income taxes | 481,024 | 453,597 | 427,407 |
| Income tax benefit | (17,202) | (11,640) | (4,205) |
| Net income | $498,226 | $465,237 | $431,612 |
| Comprehensive income | $498,226 | $465,237 | $431,612 |
| Net income per common share: | |||
| Basic | $1.86 | $1.77 | $1.68 |
| Diluted | $1.86 | $1.77 | $1.67 |
| Average common shares outstanding during the period: | |||
| Basic | 267,171 | 262,246 | 257,487 |
| Diluted | 267,659 | 262,868 | 258,180 |
| The accompanying condensed notes are an integral part of these condensed financial statements. | |||
Condensed Statements of Cash Flows
(In thousands of dollars)
| Years ended December 31, | ||||||
|---|---|---|---|---|---|---|
| 2023 · 2022 · 2021 | ||||||
| Net cash flows used in operating activities | $(179,556) | $(169,778) | $(239,320) | |||
| Cash flows from investing activities: | ||||||
| Acquisitions of utility systems and other, net | (32,431) | (116,627) | (36,237) | |||
| Decrease (increase) in investment in subsidiaries | (36,740) | (162,662) | (53,467) | |||
| Other | 554 | 299 | (987) | |||
| Net cash flows used in investing activities | (68,617) | (278,990) | (90,691) | |||
| Cash flows from financing activities: | ||||||
| Proceeds from long-term debt | 906,856 | 1,522,157 | 995,458 | |||
| Repayments of long-term debt | (677,000) | (865,469) | (725,033) | |||
| Proceeds from issuance of common stock from at-the market sale agreement | 322,983 | 63,040 | - | |||
| Proceeds from issuance of common stock under dividend reinvestment plan | 16,005 | 16,619 | 16,799 | |||
| Proceeds from exercised stock options | 287 | 2,475 | 4,172 | |||
| Proceeds from issuance of common stock from forward equity sale agreement | - | - | 299,739 | |||
| Repurchase of common stock | (3,981) | (1,192) | (3,291) | |||
| Dividends paid on common stock | (316,806) | (288,632) | (258,650) | |||
| Other | (171) | (230) | 817 | |||
| Net cash flows from financing activities | 248,173 | 448,768 | 330,011 | |||
| Net change in cash and cash equivalents | - | - | - | |||
| Cash and cash equivalents at beginning of year | - | - | - | |||
| Cash and cash equivalents at end of year | $ | - | $ | - | $ | - |
| See Note 1 - Basis of Presentation | ||||||
| The accompanying condensed notes are an integral part of these condensed financial statements. | ||||||
Notes to Condensed Financial Statements
Note 1 –Basis of Presentation – The accompanying condensed financial statements of Essential Utilities, Inc. (the “Parent”) should be read in conjunction with the consolidated financial statements and notes thereto of Essential Utilities, Inc. and subsidiaries (collectively, the “Registrant”) included in Part II, Item 8 of the Annual Report. The Parent’s significant accounting policies are consistent with those of the Registrant.
The Parent borrows from third parties and provides funds to its subsidiaries, in support of their operations. Amounts owed to the Parent for borrowings under this facility are reflected as inter-company receivables on the condensed balance sheets. The interest rate charged to the subsidiaries is sufficient to cover the Parent’s interest costs under its associated borrowings.
As of December 31, 2023 and 2022, the Parent had a current accounts receivable – affiliates balance of $907,302 and $1,601,064, respectively. As of December 31, 2023 and 2022, the Parent had a notes receivable – affiliates balance of $2,765,670 and $2,276,670, respectively. The changes in these balances represent non-cash adjustments that are recorded through the Parent’s investment in subsidiaries.
In the ordinary course of business, the Parent indemnifies a third-party for surety bonds issued on behalf of subsidiary companies, guarantees the performance of one of its regulated utilities in a jurisdiction that requires such guarantees, and guarantees several projects associated with the treatment of water in a jurisdiction.
Note 2 –Dividends from subsidiaries – Dividends in the amount of $0, $0, and $0 were paid to the Parent by its wholly-owned subsidiaries during the years ended December 31, 2023, 2022, and 2021, respectively.
Note 3 –Long-term debt – The Parent has long-term debt under unsecured note purchase agreements with investors in addition to its $1,000,000 revolving credit agreement. Excluding amounts due under the revolving credit agreement, the debt maturities of the Parent’s long-term debt are as follows:
| Year | Debt Maturity |
|---|---|
| 2024 · $ · - | |
| 2025 | - |
| 2026 | - |
| 2027 | - |
| 2028 | - |
| Thereafter | 3,025,000 |
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