Believes That the Company is at the Declining Phase of its Aggressive Roll-Up Growth Strategy After Completing the Levered Acquisition of Peoples Natural Gas in March 2020 and That it is Highly Likely to Fail in Meeting its 2023 Earnings Targets
Observes Exploding Bad Debts and a Persistent Decline in the Company’s Cash Flow Generation While a Number of Troubling Financial Reporting Issues Emerge
Questions the Company’s Dividend Policy, Which Since 1990 has Paid Out $2.6 Billion of Dividends That Can Be Viewed as Having Come From Existing and New Investors
Criticizes the Company for Stacking the Board With Executives Devoid of Water or Natural Gas Industry Experience
Expresses Concerns That the Company’s Audit Chairman Once Advised an Alleged Fraud and Ponzi-Like Scheme and That the Company’s Stock has Also Been Promoted by a Ponzi Scheme
Sees 35% to 50% Downside Risk to WTRG’s Share Price and Urges Investors to Visit www.SprucePointCap.com and Follow @SprucePointCapon Twitter for the Latest on $WTRG
Spruce Point Capital published on Essential Utilities Inc (NYSE: WTRG — $11.0 billion), a roll-up of water and natural gas assets. Spruce Point said the company is in a “declining phase of its growth story as its aggressive price increases and numerous snafus in billing, service, and water quality have created an environment of public outrage.” Spruce Point also raised concerns about the company’s financial reporting and recent debt-laden acquisition of a natural gas company.
Last updated: 2026-03-07 by automated standardization process