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American Water (AWK) to Invest in Water System in New Jersey
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American Water Works (AWK - Free Report) announced that its unit, New Jersey American Water, is going to invest $0.5 million for improving the water infrastructure in Delran service area. The company plans to replace nearly 2,640 feet of aging water main with new 6- and 8-inch ductile iron main, and replace two fire hydrants as well as 48 utility-owned service lines along the pipeline route. All these upgrades will ensure an increase in water flow for customers and adequate supply of water for fire fighters.
New Jersey American Water regularly invests to upgrade, maintain and expand the existing infrastructure. This project is part of its multimillion-dollar initiative to improve the quality of water and wastewater infrastructure. The company provides services to 2.8 million people.
In 2021, it is on course to make capital investments of nearly $1.9 billion, with a major portion to be utilized for infrastructure improvements in Regulated Businesses. American Water Works recovers the investments through new rate approvals, which assist the company to continue with infrastructure upgrade work. New rates effective since Jan 1, 2021 will add $123 million to annual revenues. The pending rate case, if approved without any change, will further increase the top line by $61 million.
Investment in Aging Water Infrastructure
Potable water supply and wastewater services on a 24x7 basis are essential for maintaining hygiene as well as performing daily chores. However, aging of pipelines and resultant breaks in water mains are primary concerns that may disrupt water services.
Per the findings of the American Society of Civil Engineers, water main breaks occur every two minutes in the United States due to aging of the existing water infrastructure. Pipeline breaks result in the wastage of 6 billion gallons of potable water each day and add to the loss of water utility operators. Per the Water and Wastewater Equipment Manufacturers Association, an estimated $750 billion investment is necessary to maintain and expand drinking water as well as wastewater services to meet demand over the next 20 years.
Water utilities operating in the United States are trying their best to upgrade and maintain the aging waster infrastructure. American Water continues to make investments in its infrastructure to upgrade, enhance and maintain the same. The company has plans to invest $10.4 billion in the 2021-2025 time period and $22-$25 billion in the next decade.
In addition to American Water, water utility California Water Service (CWT - Free Report) plans to invest in the range of $270-$300 million in 2021 to strengthen its water and wastewater infrastructure. Another water utility, Middlesex Water (MSEX - Free Report) — under the Water for Tomorrow program — is making regular capital investments to enhance system reliability, resiliency and overall service quality. Essential Utilities (WTRG - Free Report) is also making regular investments to upgrade the existing water and wastewater systems. Its long-term plan is to invest nearly $3 billion through 2023 to rehabilitate, and strengthen water as well as natural gas pipeline systems.
Price Performance
Shares of American Water have outperformed the industry in the past year.
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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American Water (AWK) to Invest in Water System in New Jersey
American Water Works (AWK - Free Report) announced that its unit, New Jersey American Water, is going to invest $0.5 million for improving the water infrastructure in Delran service area. The company plans to replace nearly 2,640 feet of aging water main with new 6- and 8-inch ductile iron main, and replace two fire hydrants as well as 48 utility-owned service lines along the pipeline route. All these upgrades will ensure an increase in water flow for customers and adequate supply of water for fire fighters.
New Jersey American Water regularly invests to upgrade, maintain and expand the existing infrastructure. This project is part of its multimillion-dollar initiative to improve the quality of water and wastewater infrastructure. The company provides services to 2.8 million people.
In 2021, it is on course to make capital investments of nearly $1.9 billion, with a major portion to be utilized for infrastructure improvements in Regulated Businesses. American Water Works recovers the investments through new rate approvals, which assist the company to continue with infrastructure upgrade work. New rates effective since Jan 1, 2021 will add $123 million to annual revenues. The pending rate case, if approved without any change, will further increase the top line by $61 million.
Investment in Aging Water Infrastructure
Potable water supply and wastewater services on a 24x7 basis are essential for maintaining hygiene as well as performing daily chores. However, aging of pipelines and resultant breaks in water mains are primary concerns that may disrupt water services.
Per the findings of the American Society of Civil Engineers, water main breaks occur every two minutes in the United States due to aging of the existing water infrastructure. Pipeline breaks result in the wastage of 6 billion gallons of potable water each day and add to the loss of water utility operators. Per the Water and Wastewater Equipment Manufacturers Association, an estimated $750 billion investment is necessary to maintain and expand drinking water as well as wastewater services to meet demand over the next 20 years.
Water utilities operating in the United States are trying their best to upgrade and maintain the aging waster infrastructure. American Water continues to make investments in its infrastructure to upgrade, enhance and maintain the same. The company has plans to invest $10.4 billion in the 2021-2025 time period and $22-$25 billion in the next decade.
In addition to American Water, water utility California Water Service (CWT - Free Report) plans to invest in the range of $270-$300 million in 2021 to strengthen its water and wastewater infrastructure. Another water utility, Middlesex Water (MSEX - Free Report) — under the Water for Tomorrow program — is making regular capital investments to enhance system reliability, resiliency and overall service quality. Essential Utilities (WTRG - Free Report) is also making regular investments to upgrade the existing water and wastewater systems. Its long-term plan is to invest nearly $3 billion through 2023 to rehabilitate, and strengthen water as well as natural gas pipeline systems.
Price Performance
Shares of American Water have outperformed the industry in the past year.
Zacks Rank
American Water currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>