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  "documentTitle": "Essential Utilities, Inc. (WTRG)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-03-08 00:00:00",
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  "pageNumber": 71,
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  "slideType": "expose_contradiction",
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  "notes": "The slide uses a cumulative performance chart and a growth table to highlight the widening gap between cash flow and dividend obligations.",
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      "kind": "callout",
      "text": "WTRG's Ability To Cover Its Divdend Has Been Declining As It Scales NOT Improving. Free Cash Flow Available For Dividends Started Worsening In FY 2018",
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      "text": "WTRG's Cumulative Performance: 1990 - Present",
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      "text": "Free Cash Flow Deficit: 30.2%",
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      "kind": "paragraph",
      "text": "We evaluate WTRG's long-term financial performance since 1990 – over 32 years ago. Spruce Point warns investors that WTRG has never been able to cover its dividend from free cash flow available after meeting its heavy capital spending and acquisition commitments. In fact, its ability to cover the dividend has become worse since 2018.",
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      "kind": "source-note",
      "text": "Source: Company financials and Bloomberg. Note: Cumulative acquisition spending starts at 1992 and assumed to be $0 in 1990 and 1991 due to an inability to access historical annual reports in those years",
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      "text": "Dividend Deficit Growing Faster Then Operating Cash Flow",
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      "text": "WTRG Has Never Been Able To Cover Its Dividend",
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