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  "documentTitle": "Essential Utilities, Inc. (WTRG)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-03-08 00:00:00",
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  "notes": "Includes a screenshot of an email request and a data table showing 2018-2020 metrics.",
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      "kind": "callout",
      "text": "Significant Two-Year Decline In Water Usage By 8.2% or ~4% per annum. Declines were occurring Pre-COIVD 19",
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      "kind": "callout",
      "text": "This water volume decline is 4x greater than WTRG's 1% p.a company-wide decline and underscores our belief that recent deals are becoming less economic.",
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      "kind": "image",
      "text": "Email from Jim Bilotta to Rick Valent regarding information request",
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      "kind": "metric",
      "text": "water volume: 4%",
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      "kind": "paragraph",
      "text": "On December 2, 2022 WTRG announced it acquired water assets from the Village of Oak Brook, Illinois for $12.5 million servicing “4,000 customer equivalents.” However, the press release provides no historical context behind the growth trends of customers or their water usage. Based on the content of an email exchange between WTRG and the Village, we see a decline in customer connections and a 4% p.a. drop in water gallons between 2018-2020. This water volume decline is 4x greater than WTRG’s 1% p.a company-wide decline and underscores our belief that recent deals are becoming less economic.(1,2)",
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      "kind": "source-note",
      "text": "Source: Freedom of Information Act, Village of Oak Brook, Illinois (1) WTRG deal press release (2) Q4 2021 Conference Call",
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      "text": "2018, 2019, 2020 connection and gallon data tables",
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      "kind": "title",
      "text": "Oak Brook, Illinois: An Asset Purchased With Declining Customers And Water Volumes",
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