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  "documentTitle": "Essential Utilities, Inc. (WTRG)",
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  "notes": "The slide uses a table from a regulatory audit to undermine the acquisition thesis.",
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      "kind": "callout",
      "text": "Only 5 out of 22 total categories (27%) did the audit results indicate that Aqua/Peoples \"Meets Expected Performance Levels\"",
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      "text": "\"Major\" improvements for cost allocations and \"Moderate\" improvements for financial management and core gas operations",
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      "text": "Exhibit I-1 Aqua Pennsylvania, Inc. The Peoples Companies Functional Area Rating Summary",
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      "text": "In October 2018, WTRG announced the acquisition of Peoples to expand into regulated natural gas. The Company paid $4.275 billion, assumed $1.1 billion of Peoples' debt, and incurred $0.8 billion of incremental debt to finance the deal.",
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      "text": "\"proven track records of operational efficiency, complementary service territories and strong regulatory compliance.\" — WTRG Deal Announcement; \"a strong system of internal governance and controls,\" and \"a significant emphasis on value added through in-house asset management.\" — SteelRiver Infrastructure Partners",
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      "text": "(1) Aqua America Deal Announcement (2) SteelRiver Partners (website and press release). Peoples was created by acquiring TW Phillips (2011), Equitable (2013) and Delta Gas (2017) (3) PUC, Management and Operations Audit, Aqua and Peoples, April 2021",
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      "text": "WTRG's Acquisition of Peoples Natural Gas",
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