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American Water (AWK) Unit Invests $3.3M in System Upgrade
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American Water Works (AWK - Free Report) has announced that its unit, California American Water, has invested $3.3 million in Cottage Way Well Project, which is now operational. This new well project replaces an aging well, over 60 years old, that was taken out of service. Cottage Way well meets and surpasses all drinking water quality standards.
Aging of essential water and wastewater infrastructure is a big concern for the water utility companies. Few more wells in California American Water’s service territories have already exceeded their designed 60-year lifespan and the company is taking steps to replace them for ensuring reliability in services.
California American Water has been upgrading and maintaining its water and wastewater infrastructure. It has been proactively investing in infrastructure upgrades, that will minimize the impacts of water shortages or pressure fluctuations during peak usage times.
Large Investment Needed in Water Space
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.
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 2024-2033.
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 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 month, American Water has gained 1.3% compared with the industry’s 1% growth.
Image: Shutterstock
American Water (AWK) Unit Invests $3.3M in System Upgrade
American Water Works (AWK - Free Report) has announced that its unit, California American Water, has invested $3.3 million in Cottage Way Well Project, which is now operational. This new well project replaces an aging well, over 60 years old, that was taken out of service. Cottage Way well meets and surpasses all drinking water quality standards.
Aging of essential water and wastewater infrastructure is a big concern for the water utility companies. Few more wells in California American Water’s service territories have already exceeded their designed 60-year lifespan and the company is taking steps to replace them for ensuring reliability in services.
California American Water has been upgrading and maintaining its water and wastewater infrastructure. It has been proactively investing in infrastructure upgrades, that will minimize the impacts of water shortages or pressure fluctuations during peak usage times.
Large Investment Needed in Water Space
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.
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 2024-2033.
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 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 month, American Water has gained 1.3% compared with the industry’s 1% growth.
Image Source: Zacks Investment Research
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.