Essential Utilities Reinstates Multi-Year Earnings Guidance Of 5%-7%; Reaffirms The Previously Announced 2024 Guidance: Net Income Per Diluted Common Share To Be $1.96-$2.00. On A GAAP Basis, The Expectation Is To Exceed This 2024 Guidance As A Result Of The Gain On Sale Of The Energy Plant Assets, Despite The Impact Of Warmer-Than-Normal Weather That Resulted In Lower Regulated Natural Gas Operating Revenues Year-To-Date; In 2024, Regulated Infrastructure Investments Will Be ~$1.3B-$1.4B

2024 Guidance

Essential re-affirms the previously announced 2024 guidance:

• In February, and re-affirmed in August, Essential provided guidance for 2024 net income per diluted common share to be $1.96 to $2.00. On a GAAP basis, the expectation is to exceed this 2024 guidance as a result of the gain on sale of the energy plant assets, despite the impact of warmer-than-normal weather that resulted in lower regulated natural gas operating revenues year-to-date.
• In 2024, regulated infrastructure investments will be approximately $1.3 to $1.4 billion.

Guidance Assumptions

Essential Utilities does not guarantee future results of any kind. Guidance is subject to risks and uncertainties, including, without limitation, those factors outlined in the "Forward Looking Statements" of this release and the "Risk Factors" section of the company's annual and quarterly reports filed with the Securities and Exchange Commission. The earnings per share, infrastructure investment, and rate base guidance include the signed municipal water and wastewater acquisitions for which the company has entered into signed purchase agreements as of the date the guidance was announced but do not include DELCORA or other potential municipal acquisitions from the company's list of acquisition opportunities that currently represents over 400,000 customer equivalents. While the company remains confident in its ability to close DELCORA, for guidance purposes, DELCORA has been removed from all guidance metrics.

The average annual regulated water segment growth guidance reflects the company's proven acquisition track record of adding nearly 129,000 customers or equivalent dwelling units and over $500 million in rate base since 2015, its current backlog of approximately $362.3 million of signed pending acquisitions with over 213,000 equivalent customers, and the current acquisition landscape.

The company's guidance includes the expectation that the company will continue to issue equity and debt on an as-needed basis to support acquisitions and capital investment plans.