Aqua America Inc.’s (WTR - Free Report) subsidiary Aqua Pennsylvania Inc. announced that it will invest approximately $239 million in 2013 to upgrade its infrastructure. Per the capital spending program, the company will repair and restore its water and wastewater arrangements as well as replace old distribution equipment.
Aqua America will allocate $185 million, $16 million, $13 million, $12 million, $10 million and $2.5 million, to improve its properties in Southeastern Pennsylvania, Roaring Creek, Honesdale, Shenango, White Haven and Susquehanna operating divisions, respectively.
This infrastructure upgrade program will enable Aqua America to provide uninterrupted services to its customers and strengthen system competence. These factors will subsequently improve reliability, consumer confidence, public safety and also maintain the state as well as federal water quality regulations.
The company invested $348 million for infrastructure improvements of its regulated operations under its full-year 2012 capital investment program.
It is evident from Aqua America’s capital spending program that the company currently intends to upgrade its water distribution assets and installation of modern systems. A couple of days ago, the company invested $1.6 million primarily for its two main replacement projects to improve system reliability and water flows.
Aqua America’s fourth-quarter 2012 net cash from operating activities was $368.4 million and cash balance as of Dec 31, 2012 was $5.5 million. We believe that Aqua America’s financial position along with strategic assets divesture encourages it to follow steady infrastructure development activities.
Bryn Mawr, PA.-based Aqua America is a publicly traded water utility company. It serves approximately 3 million residents in Florida, Georgia, Indiana, Illinois, New Jersey, North Carolina, Ohio, Pennsylvania, Texas and Virginia.
Aqua America currently has a Zacks Rank #1 (Strong Buy). Other stocks from the sector that are presently performing well include Brookfield Infrastructure Partners L.P. (BIP - Free Report) and Otter Tail Corporation (OTTR - Free Report) with Zacks Rank #1 (Strong Buy), and American States Water Company (AWR - Free Report) with Zacks Rank #2 (Buy).