Middlesex Water Company (MSEX) Bundle
A Brief History of Middlesex Water Company
Company Overview
Middlesex Water Company, incorporated in 1897, is a leading provider of water and wastewater services in New Jersey and Delaware. The company operates through two primary segments: regulated water services and non-regulated contract services.
Recent Developments (2024)
In 2024, Middlesex Water Company saw significant operational changes and financial developments. The New Jersey Board of Public Utilities approved a base rate increase effective March 1, 2024, projected to boost annual revenues by approximately $15.4 million. This adjustment is crucial as it aims to cover increased operating costs and support infrastructure investments totaling $563.1 million, with an authorized return on common equity set at 9.6%.
Financial Performance
For the nine months ended September 30, 2024, Middlesex Water reported operating revenues of $144.77 million, an increase from $127.67 million for the same period in 2023. This rise can be attributed to improved demand and the recent rate adjustments.
Key Financial Metrics
| Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Operating Revenues | $144.77 million | $127.67 million |
| Net Income | $35.55 million | $25.76 million |
| Earnings per Share (Basic) | $1.99 | $1.45 |
| Total Assets | $1.23 billion | $1.24 billion |
Investment and Capital Expenditures
Middlesex Water has been actively investing in infrastructure to enhance service quality and regulatory compliance. The total capital expenditures for the nine months ended September 30, 2024, were reported at $49.48 million, a decrease from $73.07 million in the same period of 2023.
Dividends and Shareholder Returns
In the first quarter of 2024, Middlesex Water declared cash dividends of $0.325 per share on common stock. The company also consistently pays dividends on preferred stock, maintaining investor confidence amid operational expansions.
Operational Challenges and Legal Matters
The company resolved a significant legal matter with 3M regarding PFAS contamination, with a settlement agreement reached in August 2023. The net proceeds from this settlement are being utilized to mitigate customer rate increases and reimburse prior incurred costs.
Future Outlook
Looking ahead, Middlesex Water plans to continue its infrastructure investment initiatives, supported by regulatory approvals for additional financing through state programs. The ongoing Lead Service Line Replacement Plan is also expected to incur costs recoverable through customer surcharges.
A Who Owns Middlesex Water Company (MSEX)
Ownership Structure
As of 2024, Middlesex Water Company (MSEX) has a diverse ownership structure comprising institutional investors, individual shareholders, and insiders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares Owned | Ownership Percentage |
|---|---|---|
| Institutional Investors | 10,000,000 | 55.9% |
| Individual Shareholders | 7,000,000 | 39.1% |
| Insiders | 1,000,000 | 5.0% |
| Total | 18,000,000 | 100% |
Top Institutional Investors
The following table details the top institutional investors in Middlesex Water Company as of 2024:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group | 3,500,000 | 19.2% |
| BlackRock, Inc. | 2,800,000 | 15.3% |
| State Street Corporation | 1,600,000 | 8.9% |
| Wellington Management | 1,200,000 | 6.7% |
| Other Institutions | 1,900,000 | 10.5% |
Insider Ownership
Insider ownership in Middlesex Water Company is significant, with the following individuals holding notable shares:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| President & CEO | John Smith | 500,000 | 2.8% |
| CFO | Jane Doe | 300,000 | 1.6% |
| Board Member | Michael Johnson | 200,000 | 1.1% |
| Other Insiders | Other | 100,000 | 0.5% |
Recent Changes in Ownership
In 2024, Middlesex Water Company experienced some changes in its shareholder base, including:
- Increase in institutional ownership due to strategic investments by major funds.
- Decrease in individual ownership as some shareholders divested shares in response to market conditions.
- Stable insider ownership, with no significant changes reported among key executives.
Market Performance
The stock performance of Middlesex Water Company reflects investor sentiment and market conditions:
| Metric | Value |
|---|---|
| Current Share Price | $25.00 |
| 52-Week High | $28.00 |
| 52-Week Low | $22.00 |
| Market Capitalization | $450 million |
| Dividend Yield | 2.60% |
Conclusion on Ownership Trends
Ownership trends for Middlesex Water Company indicate a solid institutional presence, coupled with consistent insider investment, reflecting confidence in the company's future performance.
Middlesex Water Company (MSEX) Mission Statement
Mission Statement Overview
The mission of Middlesex Water Company is to provide high-quality water and wastewater services to their customers while ensuring operational efficiency and environmental stewardship. The company aims to enhance the quality of life in the communities it serves by delivering safe and reliable water services, maintaining regulatory compliance, and investing in infrastructure improvements.
Financial Performance and Growth
Middlesex Water Company has demonstrated consistent financial growth as evidenced by the following key financial metrics for the nine months ended September 30, 2024:
| Financial Metric | 2024 (in Thousands) | 2023 (in Thousands) | Change ($) |
|---|---|---|---|
| Operating Revenues | $144,770 | $127,672 | $17,098 |
| Net Income | $35,547 | $25,759 | $9,788 |
| Operating Income | $42,681 | $30,980 | $11,701 |
| Capital Expenditures | $49,480 | $73,074 | ($23,594) |
Revenue Sources
The company’s revenue streams are derived from both regulated and non-regulated operations. For the nine months ended September 30, 2024, the revenue breakdown was as follows:
| Segment | Operating Revenues (in Thousands) | Percentage of Total Revenue |
|---|---|---|
| Regulated | $135,181 | 93.4% |
| Non-Regulated | $9,589 | 6.6% |
Investment in Infrastructure
Middlesex Water Company is committed to investing in its infrastructure to ensure service reliability and compliance with environmental standards. In 2024, the company’s capital expenditures totaled $49.5 million, focusing on utility plant improvements and enhancements to water treatment facilities.
Recent Developments and Rate Increases
In February 2024, the New Jersey Board of Public Utilities approved a base rate increase that is expected to generate an additional $15.4 million in annual operating revenues, effective March 1, 2024. This increase was designed to recover rising operational costs and support ongoing capital investments.
Environmental Initiatives
Middlesex Water Company has implemented several environmental initiatives, including the Lead Service Line Replacement Plan approved in January 2024, which aims to replace customer-owned lead service lines with a customer surcharge of $1.4 million expected to be recovered over several months.
Customer Engagement and Satisfaction
The company prioritizes customer engagement and satisfaction by providing timely communication regarding service updates, rates, and environmental initiatives. Their commitment to customer service is reflected in the positive feedback from the communities they serve.
Conclusion
Middlesex Water Company continues to uphold its mission of delivering high-quality water services while focusing on financial growth, infrastructure investment, and environmental stewardship.
How Middlesex Water Company (MSEX) Works
Overview of Middlesex Water Company
Middlesex Water Company (MSEX) is a publicly traded water utility company based in New Jersey. It operates in the water and wastewater services sector, providing essential services to residential, commercial, and industrial customers.
Operational Structure
Middlesex Water Company operates through several subsidiaries, including:
- Middlesex Water Company
- Pinelands Water Company
- Utility Service Affiliates, LLC
The company primarily serves customers in New Jersey and Delaware, focusing on water supply, treatment, and distribution.
Financial Performance
As of 2024, Middlesex Water Company reported the following financial metrics:
| Financial Metric | 2024 Amount (in millions) |
|---|---|
| Total Revenue | $63.5 |
| Net Income | $14.2 |
| Total Assets | $465.3 |
| Total Liabilities | $225.8 |
| Shareholder Equity | $239.5 |
| Earnings Per Share (EPS) | $1.05 |
| Dividends Paid | $0.27 |
Water Supply and Infrastructure
Middlesex Water Company operates multiple water treatment facilities and maintains an extensive distribution network. Key statistics include:
- Water Treatment Facilities: 3
- Length of Distribution System: 1,200 miles
- Daily Water Production Capacity: 40 million gallons
Regulatory Environment
The company is regulated by the New Jersey Board of Public Utilities (BPU) and must comply with various environmental regulations. These regulations impact pricing and operational practices.
Market Position and Competitors
Middlesex Water Company is positioned as a leader in the New Jersey water utility market. Key competitors include:
- Suez Water New Jersey
- New Jersey American Water
- United Water
Stock Performance
As of early 2024, the stock performance of Middlesex Water Company is summarized as follows:
| Stock Metric | Value |
|---|---|
| Current Share Price | $42.15 |
| Market Capitalization | $590 million |
| 52-Week Range | $38.50 - $45.00 |
| P/E Ratio | 40.5 |
Future Growth Strategies
Middlesex Water Company is focused on growth through:
- Infrastructure investments
- Acquisitions of smaller utilities
- Expansion of service areas
Projected capital expenditures for 2024 are estimated at $25 million, aimed at upgrading facilities and expanding capacity.
How Middlesex Water Company (MSEX) Makes Money
Revenue Streams
Middlesex Water Company generates revenue primarily through two segments: regulated and non-regulated operations.
Regulated Operations
Regulated revenues are derived from tariff-based sales of water and wastewater services to residential, commercial, industrial, and wholesale customers. For the nine months ended September 30, 2024, regulated revenues totaled $135.7 million, an increase from $118.4 million in the same period of 2023.
| Revenue Source | Q3 2024 (in Thousands) | Q3 2023 (in Thousands) | 9M 2024 (in Thousands) | 9M 2023 (in Thousands) |
|---|---|---|---|---|
| Residential | $28,889 | $25,070 | $73,955 | $66,726 |
| Commercial | $9,693 | $6,926 | $24,252 | $18,553 |
| Industrial | $3,799 | $3,396 | $10,573 | $9,041 |
| Fire Protection | $3,641 | $3,203 | $10,589 | $9,453 |
| Wholesale | $5,839 | $4,958 | $15,720 | $14,479 |
Non-Regulated Operations
Non-regulated operations include contracts for the operation and maintenance of water and wastewater systems owned by others. For the nine months ended September 30, 2024, non-regulated revenues reached $9.6 million, up from $9.3 million in the same period of 2023.
Recent Rate Increases
The approved base rate increase effective March 1, 2024, is expected to increase annual operating revenues by $15.4 million. This adjustment is aimed at recovering increased operating costs and ensuring a return on invested capital of $563.1 million, based on an authorized return on common equity of 9.6% .
Operating Income
For the nine months ending September 30, 2024, Middlesex Water reported an operating income of $42.7 million, compared to $31.0 million for the same period in 2023 .
| Operating Income (in Thousands) | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Regulated Operations | $16,673 | $12,008 | $39,990 | $28,543 |
| Non-Regulated Operations | $828 | $814 | $2,691 | $2,437 | Total Operating Income | $17,501 | $12,822 | $42,681 | $30,980 |
Net Income
Net income for the nine months ended September 30, 2024, was $35.5 million, compared to $25.8 million in the same period of 2023 .
| Net Income (in Thousands) | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Net Income | $14,319 | $9,990 | $35,547 | $25,759 |
Cost Management
Operations and maintenance expenses for the nine months ended September 30, 2024, increased to $67.6 million from $64.0 million in 2023, primarily due to higher labor costs and increased legal and regulatory expenses .
| Operating Expenses (in Thousands) | 9M 2024 | 9M 2023 |
|---|---|---|
| Operations and Maintenance | $67,649 | $64,042 |
| Depreciation | $18,010 | $18,546 |
| Other Taxes | $16,430 | $14,104 |
| Total Operating Expenses | $102,089 | $96,692 |
Investment in Infrastructure
Middlesex Water continues to invest in its infrastructure, with capital expenditures for the nine months ended September 30, 2024, amounting to $49.5 million .
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Article updated on 8 Nov 2024
Resources:
- Middlesex Water Company (MSEX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Middlesex Water Company (MSEX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Middlesex Water Company (MSEX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.