American Water and Essential Merger Proposal Approved by Shareholders
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 10 2026
0mins
Should l Buy WTRG?
At respective shareholder meetings of American Water Works (AWK) and Essential Utilities (WTRG) today, and based on preliminary voting results, each company's shareholders have approved proposals related to the proposed merger of the American Water and Essential, Essential disclosed in a regulatory filing.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy WTRG?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on WTRG
Wall Street analysts forecast WTRG stock price to rise
3 Analyst Rating
2 Buy
0 Hold
1 Sell
Moderate Buy
Current: 39.600
Low
38.00
Averages
40.00
High
42.00
Current: 39.600
Low
38.00
Averages
40.00
High
42.00
About WTRG
Essential Utilities, Inc. is the holding company for regulated utilities providing water, wastewater, or natural gas services. The Company’s segments include Regulated Water and Regulated Natural Gas. The Regulated Water segment consists of eight operating segments representing its water and wastewater regulated utility companies, which are organized by the states where the Company provides water and wastewater services. The Regulated Natural Gas segment consists of one operating segment representing natural gas utility companies for which the Company provides natural gas distribution services. It provides services in Pennsylvania, Ohio, Texas, Illinois, North Carolina, New Jersey, Indiana, Virginia, and Kentucky under the Aqua and Peoples brands. The Company also operates market-based activities, conducted through its non-regulated subsidiaries, that provide utility service line protection solutions and repair services to households and gas marketing and production activities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Essential Utilities Declares Quarterly Cash Dividend
- Dividend Declaration: The board of Essential Utilities Inc. has declared a quarterly cash dividend of $0.3426 per share, payable on June 1, 2026, reflecting the company's ongoing commitment to shareholder returns.
- Dividend History: The company has paid consecutive quarterly cash dividends for 80 years and has increased its dividend 35 times in the last 34 years, showcasing its stable financial performance and dedication to shareholders.
- Service Coverage: Operating under the Aqua and Peoples brands, Essential Utilities serves approximately 5.5 million people across nine states, further solidifying its leadership position in the U.S. public utility market.
- Sustainability Commitment: The company is committed to sustainable growth and operational excellence while actively protecting natural lands, maintaining thousands of acres of forests and habitats, demonstrating its responsibility to the communities it serves and its dedication to environmental stewardship.
See More
Essential Utilities Declares Quarterly Cash Dividend
- Dividend Declaration: The board of Essential Utilities Inc. has declared a quarterly cash dividend of $0.3426 per share, payable on June 1, 2026, reflecting the company's ongoing commitment to shareholder returns.
- Dividend History: The company has paid consecutive quarterly cash dividends for 80 years and has increased its dividend 35 times over the past 34 years, showcasing its stable financial performance and dedication to shareholders.
- Service Coverage: Operating under the Aqua and Peoples brands, Essential Utilities serves approximately 5.5 million people across nine states, solidifying its significant presence in the U.S. public utility market.
- Sustainability Commitment: The company is committed to sustainable growth and operational excellence while actively protecting natural environments, managing thousands of acres of forests and habitats, demonstrating its responsibility to the communities it serves.
See More
Market Sell-Off Drives Multiple Stocks to 52-Week Lows
- ADP Stock Potential: Automatic Data Processing (ADP) has seen a 25% decline in its stock price over the past six months, currently trading at a forward P/E of only 21 times; if market sentiment improves, the stock could rerate to 25-30 times forward earnings, enhancing investor confidence and improving valuation.
- American Water Works Merger Outlook: American Water Works (AWK) faces pressure from high interest rates and regulatory scrutiny, and while its merger with Essential Utilities has shareholder approval, it still requires regulatory clearance; if successful, it could help achieve long-term earnings and dividend growth targets of 7%-9%.
- PayPal Management Change: Following a CEO change, PayPal's stock has dropped nearly 21% due to weak earnings and market confidence; currently trading at less than 8 times forward earnings, a strategic alternative from the new management team could catalyze a rebound in shares.
- AI Impact Market Concerns: The market's fears regarding the potential disruptive effects of generative AI on various sectors have led to sell-offs in non-tech stocks, although this bearish sentiment may be overstated, necessitating close attention to the fundamental changes in affected companies.
See More
American Water and Essential Utilities Merger Approved by Shareholders
- Shareholder Voting Outcome: At today's special shareholder meetings, 99% of American Water (AWK) shareholders approved the share issuance proposal, while nearly 95% of Essential Utilities (WTRG) shareholders supported the merger, indicating strong market confidence and shareholder backing.
- Post-Merger Scale: The combined company is expected to have a water and wastewater rate base of $29.3 billion by the end of 2024, covering 17 states and 18 military installations, significantly enhancing market competitiveness and service capabilities.
- Earnings Growth Expectations: The merged entity anticipates maintaining American Water's (AWK) earnings per share and dividend growth targets in the range of 7%-9%, indicating stability in future profitability and shareholder returns.
- Equity Structure: Post-merger, American Water (AWK) shareholders will own approximately 69% of the combined entity, while Essential Utilities (WTRG) shareholders will hold about 31%, which will influence future corporate governance and strategic decision-making.
See More
American Water and Essential Utilities Merger Approved by Shareholders
- Shareholder Voting Results: At today's special shareholder meetings, approximately 99% of American Water's shareholders approved the share issuance, while nearly 95% of Essential Utilities' shareholders supported the merger, reflecting strong confidence in the transaction and expected synergies in the water utility sector.
- Merger Timeline: The merger is anticipated to close by the end of Q1 2027, subject to customary closing conditions including clearance under the Hart-Scott-Rodino Act and necessary regulatory approvals, which will influence the merger's successful execution.
- Market Impact: The merger will position American Water as the largest regulated water and wastewater utility in the U.S., serving over 14 million people, enhancing market competitiveness while providing improved services to Essential Utilities' 5.5 million customers, thereby enhancing customer experience.
- Strategic Significance: This merger represents not only a consolidation of resources and technologies between the two companies but also promotes sustainable growth and operational excellence, further solidifying their leadership in the water and natural gas service sectors, aligning with future market demand changes.
See More
Shareholders of American Water and Essential Utilities Greenlight Merger-Related Proposals at Special Meetings
- Shareholder Approval: American Water and Essential Utilities shareholders have approved merger-related proposals.
- Special Meetings: The approvals were granted during special shareholder meetings held for the respective companies.
See More
Essential Utilities Declares Quarterly Cash Dividend
- Dividend Declaration: The board of Essential Utilities Inc. has declared a quarterly cash dividend of $0.3426 per share, payable on June 1, 2026, reflecting the company's ongoing commitment to shareholder returns.
- Dividend History: The company has paid consecutive quarterly cash dividends for 80 years and has increased its dividend 35 times in the last 34 years, showcasing its stable financial performance and dedication to shareholders.
- Service Coverage: Operating under the Aqua and Peoples brands, Essential Utilities serves approximately 5.5 million people across nine states, further solidifying its leadership position in the U.S. public utility market.
- Sustainability Commitment: The company is committed to sustainable growth and operational excellence while actively protecting natural lands, maintaining thousands of acres of forests and habitats, demonstrating its responsibility to the communities it serves and its dedication to environmental stewardship.
See More
Essential Utilities Declares Quarterly Cash Dividend
- Dividend Declaration: The board of Essential Utilities Inc. has declared a quarterly cash dividend of $0.3426 per share, payable on June 1, 2026, reflecting the company's ongoing commitment to shareholder returns.
- Dividend History: The company has paid consecutive quarterly cash dividends for 80 years and has increased its dividend 35 times over the past 34 years, showcasing its stable financial performance and dedication to shareholders.
- Service Coverage: Operating under the Aqua and Peoples brands, Essential Utilities serves approximately 5.5 million people across nine states, solidifying its significant presence in the U.S. public utility market.
- Sustainability Commitment: The company is committed to sustainable growth and operational excellence while actively protecting natural environments, managing thousands of acres of forests and habitats, demonstrating its responsibility to the communities it serves.
See More
Market Sell-Off Drives Multiple Stocks to 52-Week Lows
- ADP Stock Potential: Automatic Data Processing (ADP) has seen a 25% decline in its stock price over the past six months, currently trading at a forward P/E of only 21 times; if market sentiment improves, the stock could rerate to 25-30 times forward earnings, enhancing investor confidence and improving valuation.
- American Water Works Merger Outlook: American Water Works (AWK) faces pressure from high interest rates and regulatory scrutiny, and while its merger with Essential Utilities has shareholder approval, it still requires regulatory clearance; if successful, it could help achieve long-term earnings and dividend growth targets of 7%-9%.
- PayPal Management Change: Following a CEO change, PayPal's stock has dropped nearly 21% due to weak earnings and market confidence; currently trading at less than 8 times forward earnings, a strategic alternative from the new management team could catalyze a rebound in shares.
- AI Impact Market Concerns: The market's fears regarding the potential disruptive effects of generative AI on various sectors have led to sell-offs in non-tech stocks, although this bearish sentiment may be overstated, necessitating close attention to the fundamental changes in affected companies.
See More
American Water and Essential Utilities Merger Approved by Shareholders
- Shareholder Voting Outcome: At today's special shareholder meetings, 99% of American Water (AWK) shareholders approved the share issuance proposal, while nearly 95% of Essential Utilities (WTRG) shareholders supported the merger, indicating strong market confidence and shareholder backing.
- Post-Merger Scale: The combined company is expected to have a water and wastewater rate base of $29.3 billion by the end of 2024, covering 17 states and 18 military installations, significantly enhancing market competitiveness and service capabilities.
- Earnings Growth Expectations: The merged entity anticipates maintaining American Water's (AWK) earnings per share and dividend growth targets in the range of 7%-9%, indicating stability in future profitability and shareholder returns.
- Equity Structure: Post-merger, American Water (AWK) shareholders will own approximately 69% of the combined entity, while Essential Utilities (WTRG) shareholders will hold about 31%, which will influence future corporate governance and strategic decision-making.
See More
American Water and Essential Utilities Merger Approved by Shareholders
- Shareholder Voting Results: At today's special shareholder meetings, approximately 99% of American Water's shareholders approved the share issuance, while nearly 95% of Essential Utilities' shareholders supported the merger, reflecting strong confidence in the transaction and expected synergies in the water utility sector.
- Merger Timeline: The merger is anticipated to close by the end of Q1 2027, subject to customary closing conditions including clearance under the Hart-Scott-Rodino Act and necessary regulatory approvals, which will influence the merger's successful execution.
- Market Impact: The merger will position American Water as the largest regulated water and wastewater utility in the U.S., serving over 14 million people, enhancing market competitiveness while providing improved services to Essential Utilities' 5.5 million customers, thereby enhancing customer experience.
- Strategic Significance: This merger represents not only a consolidation of resources and technologies between the two companies but also promotes sustainable growth and operational excellence, further solidifying their leadership in the water and natural gas service sectors, aligning with future market demand changes.
See More
Shareholders of American Water and Essential Utilities Greenlight Merger-Related Proposals at Special Meetings
- Shareholder Approval: American Water and Essential Utilities shareholders have approved merger-related proposals.
- Special Meetings: The approvals were granted during special shareholder meetings held for the respective companies.
See More
