We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Aqua America (WTR) Continues to Expand via Acquisitions
Read MoreHide Full Article
Water and wastewater service provider Aqua America Inc. announced that its subsidiaries completed three acquisitions in the second quarter of 2016. Like most of its peers in the water utility space, Aqua America is quite active about acquisitions. In 2015, the company added 17,747 customers, primarily on the back of utility system acquisition, but also driven by organic growth.
During the second quarter, the acquisition of Crystal Clear Water Company added 293 customer connections, water assets acquired from Byram Homeowners Association Water Company added 151 customer connections and the acquisition of Twin Cedars public water system added 30 customer connections.
Consolidation among Water Utilities
Consolidation is the need of the hour in the fragmented U.S. water utility space. The old water utility infrastructure needs ample investments, which are easier for bigger players to make. Consolidation would therefore drive the necessary infrastructure overhauls that have become imperative for the industry at large.
Aqua America, during the five-year period ending Dec 31, 2015, expanded its utility operations by completing 75 acquisitions or other growth ventures. In the first half of 2016, the company completed 10 acquisitions, adding 5,395 customer connections year to date.
Apart from Aqua America, water utilities like American Water Works (AWK - Free Report) and Connecticut Water Service are also quite active in expanding their customer base through acquisitions.
Massive infrastructural investments are required to upgrade and maintain the water utilities, as old and soiled water pipelines are quickly nearing their effective service life. An Environment Protection Agency (EPA) report indicates capital investment of $384.2 billion will be required to upgrade drinking water lines and $298.2 billion for wastewater lines.
As per a study carried out by American Water Works, nearly 85% of the population is being served by water supply services owned by the municipalities. So, both government agencies and privately held water operators will have to take serious steps to replace and strengthen the aging water infrastructure of the U.S.
Zacks Rank
Aqua America Inc. currently has a Zacks Rank #4 (Sell). A better-ranked water utility is Consolidated Water Co. Ltd. (CWCO - Free Report) , currently carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Aqua America (WTR) Continues to Expand via Acquisitions
Water and wastewater service provider Aqua America Inc. announced that its subsidiaries completed three acquisitions in the second quarter of 2016. Like most of its peers in the water utility space, Aqua America is quite active about acquisitions. In 2015, the company added 17,747 customers, primarily on the back of utility system acquisition, but also driven by organic growth.
During the second quarter, the acquisition of Crystal Clear Water Company added 293 customer connections, water assets acquired from Byram Homeowners Association Water Company added 151 customer connections and the acquisition of Twin Cedars public water system added 30 customer connections.
Consolidation among Water Utilities
Consolidation is the need of the hour in the fragmented U.S. water utility space. The old water utility infrastructure needs ample investments, which are easier for bigger players to make. Consolidation would therefore drive the necessary infrastructure overhauls that have become imperative for the industry at large.
Aqua America, during the five-year period ending Dec 31, 2015, expanded its utility operations by completing 75 acquisitions or other growth ventures. In the first half of 2016, the company completed 10 acquisitions, adding 5,395 customer connections year to date.
Apart from Aqua America, water utilities like American Water Works (AWK - Free Report) and Connecticut Water Service are also quite active in expanding their customer base through acquisitions.
AQUA AMER INC Price
AQUA AMER INC Price | AQUA AMER INC Quote
Water Infrastructure Requires Immediate Redressal
Massive infrastructural investments are required to upgrade and maintain the water utilities, as old and soiled water pipelines are quickly nearing their effective service life. An Environment Protection Agency (EPA) report indicates capital investment of $384.2 billion will be required to upgrade drinking water lines and $298.2 billion for wastewater lines.
As per a study carried out by American Water Works, nearly 85% of the population is being served by water supply services owned by the municipalities. So, both government agencies and privately held water operators will have to take serious steps to replace and strengthen the aging water infrastructure of the U.S.
Zacks Rank
Aqua America Inc. currently has a Zacks Rank #4 (Sell). A better-ranked water utility is Consolidated Water Co. Ltd. (CWCO - Free Report) , currently carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>