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American Water's (AWK) Pennsylvania Arm to Invest in Upgrade
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American Water Works (AWK - Free Report) has announced that its unit, Pennsylvania American Water, will invest $5.7 million to install 2,900 feet of water mains in Punxsutawney area. This new upgrade will provide high-quality, reliable and affordable water service and fire protection to the customers in the region.
The company will initially install 1,500 feet of new water main along Greenhouse Road in Bell Township and later this spring thee project will transition to Rikers and Williams Roads in Bell Township, where 1,400 feet of water main will be replaced.
Pennsylvania American Water has been upgrading and maintaining its water and wastewater infrastructure. It has invested nearly $688 million in 2023 for infrastructure upgrades. The company will continue investing to make essential upgrades and maintain aging assets in the long term.
Investment Essential for the Water Industry
Per U.S. Environmental Protection Agency, investments of $625 billion and $271 billion are necessary to maintain and expand drinking water and wastewater pipelines, respectively, for meeting demand over the next 20 years. Water infrastructure, like water mains, storage tanks and purifying units, needs maintenance at proper intervals.
The repair and upgrade of other infrastructures like overhead storage tanks, treatment plants and water reservoirs are essential for providing uninterrupted 24x7 services to customers.
Miles of aging pipelines essentially require repairs and upgrades to maintain quality water and wastewater services. A delay in repair could cause frequent disruptions in the 24x7 supply of potable water and sewer services.
Investments From Water Utilities
American Water aims to invest $3.1 billion in 2024, with a major portion utilized for infrastructure improvements in Regulated Businesses. Over the long term, AWK aims to invest in the range of $16-$17 billion in 2024-2028 and $34-$38 billion in the 2024-2033 period.
Other water utilities, like Essential Utilities (WTRG - Free Report) , California Water Service Group (CWT - Free Report) and Middlesex Water (MSEX - Free Report) , have well-chalked-out capital investment plans to strengthen infrastructure.
Essential Utilities plans to invest $1.3-$1.4 billion in 2024 and $7.2 billion in 2024-2028 period to improve water and natural gas systems, and better serve customers with the help of improved information technology.
California Water Service plans to invest more than $365 million in capital expenditures in 2024.
Middlesex Water plans to invest $226 million during 2024-2026 to strengthen its water and wastewater infrastructure, and provide services to customers in a safe, reliable and efficient manner.
The Zacks Consensus Estimate for WTRG, CWT and MSEX’s 2024 earnings indicates growth of 9.7%,147.3% and 29.6% from the year-ago levels, respectively.
Price Performance
Over the last six months, American Water has jumped 2.8% compared with the industry’s 11.9% growth.
Image: Shutterstock
American Water's (AWK) Pennsylvania Arm to Invest in Upgrade
American Water Works (AWK - Free Report) has announced that its unit, Pennsylvania American Water, will invest $5.7 million to install 2,900 feet of water mains in Punxsutawney area. This new upgrade will provide high-quality, reliable and affordable water service and fire protection to the customers in the region.
The company will initially install 1,500 feet of new water main along Greenhouse Road in Bell Township and later this spring thee project will transition to Rikers and Williams Roads in Bell Township, where 1,400 feet of water main will be replaced.
Pennsylvania American Water has been upgrading and maintaining its water and wastewater infrastructure. It has invested nearly $688 million in 2023 for infrastructure upgrades. The company will continue investing to make essential upgrades and maintain aging assets in the long term.
Investment Essential for the Water Industry
Per U.S. Environmental Protection Agency, investments of $625 billion and $271 billion are necessary to maintain and expand drinking water and wastewater pipelines, respectively, for meeting demand over the next 20 years. Water infrastructure, like water mains, storage tanks and purifying units, needs maintenance at proper intervals.
The repair and upgrade of other infrastructures like overhead storage tanks, treatment plants and water reservoirs are essential for providing uninterrupted 24x7 services to customers.
Miles of aging pipelines essentially require repairs and upgrades to maintain quality water and wastewater services. A delay in repair could cause frequent disruptions in the 24x7 supply of potable water and sewer services.
Investments From Water Utilities
American Water aims to invest $3.1 billion in 2024, with a major portion utilized for infrastructure improvements in Regulated Businesses. Over the long term, AWK aims to invest in the range of $16-$17 billion in 2024-2028 and $34-$38 billion in the 2024-2033 period.
Other water utilities, like Essential Utilities (WTRG - Free Report) , California Water Service Group (CWT - Free Report) and Middlesex Water (MSEX - Free Report) , have well-chalked-out capital investment plans to strengthen infrastructure.
Essential Utilities plans to invest $1.3-$1.4 billion in 2024 and $7.2 billion in 2024-2028 period to improve water and natural gas systems, and better serve customers with the help of improved information technology.
California Water Service plans to invest more than $365 million in capital expenditures in 2024.
Middlesex Water plans to invest $226 million during 2024-2026 to strengthen its water and wastewater infrastructure, and provide services to customers in a safe, reliable and efficient manner.
The Zacks Consensus Estimate for WTRG, CWT and MSEX’s 2024 earnings indicates growth of 9.7%,147.3% and 29.6% from the year-ago levels, respectively.
Price Performance
Over the last six months, American Water has jumped 2.8% compared with the industry’s 11.9% growth.
Zacks Rank
American Water currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.