Core Insights - Middlesex Water Company reported a strong financial performance for 2024, with net income of $44.4 million and diluted EPS of $2.47, marking significant growth from $31.5 million and $1.76 in 2023 [1][10] Financial Performance - The net income for 2024 increased by $12.8 million compared to 2023, driven by a base rate increase, one-time recovery of costs, and increased customer demand due to weather [3] - Revenues for 2024 reached $191.9 million, up $25.6 million from $166.3 million in 2023, with the Middlesex System contributing $19.9 million to this increase [4] - Operating expenses rose to $92.4 million in 2024, an increase of $9.3 million from $83.1 million in 2023, primarily due to higher legal, labor, and energy costs [5] Quarterly Results - For the fourth quarter of 2024, net income was $8.8 million with diluted EPS of $0.49, compared to $5.8 million and $0.32 in the same quarter of 2023 [6] Infrastructure Investments - In 2024, the company invested $75 million in upgrading and enhancing its water and wastewater utility infrastructure [7] - Planned infrastructure investments for 2025 are approximately $93 million, with a total of $387 million expected from 2025 to 2027, including $105 million for PFAS treatment [8] Dividend Information - The Board of Directors declared a first quarter cash dividend of $0.34 per common share, continuing a history of cash dividends since 1912 and increasing dividends for 52 consecutive years [12] Company Overview - Middlesex Water Company is a leading investor-owned water and wastewater utility, serving over half a million people in New Jersey and Delaware, focusing on operational excellence and sustainable growth [13]

Capital Investment and Projects - Middlesex Water Company plans to invest approximately $93 million in 2025 for capital projects, including the replacement of 19,550 linear feet of cast iron main and construction of new elevated water tanks in Delaware [181]. - The Company has projected to spend approximately $387 million for the 2025-2027 capital investment program, including $105 million for upgrading the Carl J. Olson Surface Water Treatment Plant to integrate PFAS removal [194]. - Tidewater's acquisition of the water utility assets of Ocean View, Delaware for $4.6 million is expected to close by April 2025, serving approximately 900 customers [177]. - Middlesex has received approval to borrow up to $300.0 million from the New Jersey SRF Program through December 31, 2025, to fund its multi-year capital construction program [229]. - Tidewater closed on a $2.2 million Delaware SRF loan at a 0.0% interest rate, with an expected maturity date in 2044, for costs associated with identifying lead service lines [230]. - Tidewater has two active construction projects funded by Delaware SRF loans totaling $8.3 million, with $4.9 million drawn down as of December 31, 2024 [232]. Revenue and Income - The approved settlement of the Middlesex 2023 base rate case is expected to increase annual operating revenues by $15.4 million, effective March 1, 2024, based on an authorized return on common equity of 9.6% [183]. - Tidewater's application for a general rate increase seeks an overall increase in annual operating revenue of $10.3 million or 25.66% over current revenue, to recover investments made in the last ten years [190]. - Operating revenues for 2024 increased by $25.6 million to $191.9 million compared to 2023, driven by higher customer demand and rate increases [198]. - Operating income rose to $53.2 million in 2024, up from $39.2 million in 2023, reflecting a 35.7% increase [197]. - Net income for 2024 was $44.4 million, a significant increase of 40.8% from $31.6 million in 2023 [197]. Expenses and Costs - Operations and maintenance expenses increased by $9.2 million to $92.4 million in 2024, primarily due to higher labor and energy costs [198]. - Interest expense rose by $0.9 million to $14.0 million in 2024, attributed to higher average debt and interest rates [204]. - Other taxes increased by $3.1 million to $21.9 million in 2024, primarily due to higher gross receipts and payroll-related taxes [200]. - Other income, net increased by $5.6 million to $12.1 million in 2024, mainly due to recovery of costs related to PFAS treatment upgrades [203]. Customer Growth and Market Conditions - Organic residential customer growth in the Tidewater system is approximately 3.5% in 2024, contributing to the overall growth strategy [193]. - The Regulated segment contributed approximately 93% of total revenues for the years ended December 31, 2024, 2023, and 2022, indicating a stable revenue stream from regulated operations [195]. Financial Position and Risk Management - The company has $140 million in available lines of credit, with $23.0 million outstanding at a weighted average interest rate of 5.63% [226]. - The weighted average daily borrowings outstanding under credit lines were $38.7 million and $35.7 million at interest rates of 6.33% and 6.13% for the years ended December 31, 2024 and 2023, respectively [227]. - The total known contractual obligations as of December 31, 2024, amount to $724 million, with $359 million in long-term debt and $247 million in interest on long-term debt [245]. - The Company manages interest rate risk through fixed-rate long-term debt and has approximately $7.7 million of long-term debt instruments maturing in the next twelve months [261]. - The company has reduced risks associated with commodity price increases through contractual arrangements and the ability to recover price increases through rates [262]. - Credit risk exposure is present in both Regulated and Non-Regulated business segments, with a focus on customer default on contractual obligations [263]. - The credit portfolio is diversified with no significant customer or industry concentrations, and credit risk is managed through established credit and collection policies [263]. - The company's retirement benefit plan assets are exposed to market price variations, impacting retirement benefit plan expense and funded status [264]. - There were no material changes to primary market risk exposures in 2024, nor are any expected in the future [264]. Retirement and Benefits - The Company contributed $3.7 million to its retirement benefit plans in 2024 and expects to contribute approximately $1.8 million in 2025 [246]. - The discount rate for the Pension Plan is 5.47% and for the Other Benefits Plan is 5.49% as of December 31, 2024 [257]. - The Company raised approximately $1.0 million through the issuance of shares under the Investment Plan during 2024 [240].

Exhibit 99.1 Middlesex Water Company Reports 2024 Financial Results ISELIN, N.J., February 28, 2025 -- Middlesex Water Company ("Middlesex" or the "Company") (NASDAQ: MSEX) today announced financial results for the fourth quarter and year end 2024. Middlesex reported net income of $44.4 million and diluted EPS of $2.47 for 2024, compared to net income of $31.5 million and diluted EPS of $1.76 in 2023. "Our strong 2024 performance underscores the strength of our growth strategy, the dedication of our team me ...

Core Insights - Middlesex Water Company has appointed Brian Hague as Vice President of Communications and Corporate Affairs to enhance internal and external communications, crisis management, government affairs, and community outreach [1][2][3] Company Overview - Middlesex Water Company, established in 1897, provides high-quality water services for residential, commercial, industrial, and fire protection purposes [3] - The company serves a population of approximately 500,000 people in New Jersey and Delaware through its subsidiaries [3] - Middlesex Water Company is committed to investing in its employees, infrastructure, and communities to support reliable utility services and economic growth [3] Leadership Appointment - Brian Hague brings over 20 years of communications experience from both public and private sectors, having held senior leadership roles in government and public relations [2] - His most recent role was Director of Government Affairs and Communications for the American Dream entertainment and retail destination in northern New Jersey [2] - The President and CEO of Middlesex Water Company, Nadine Leslie, expressed enthusiasm about Hague's appointment, highlighting his reputation and expected contributions to community engagement and brand enhancement [3]

Core Insights - Middlesex Water Company has appointed Brian Hague as Vice President of Communications and Corporate Affairs, focusing on internal and external communications, crisis management, government affairs, and community outreach [1][3]. Company Overview - Established in 1897, Middlesex Water Company provides high-quality water services for residential, commercial, industrial, and fire protection purposes, serving a population of half a million in New Jersey and Delaware [3]. Leadership Background - Brian Hague brings over 20 years of communications experience from both public and private sectors, having held senior leadership roles in government and public relations firms [2]. His most recent position was Director of Government Affairs and Communications for the American Dream entertainment and retail destination [2]. Strategic Importance - The company views Hague's appointment as a significant asset for strengthening relationships with elected officials and community stakeholders, enhancing the company's brand and community engagement efforts [3].

Company Overview - Middlesex Water Company, established in 1897, provides high-quality water service for residential, commercial, industrial, and fire protection purposes [3] - The company serves a population of half a million people in New Jersey and Delaware through various subsidiary companies [3] - Middlesex Water Company focuses on investing in its employees, infrastructure, and communities to support reliable utility services and economic growth [3] Financial Information - Middlesex Water Company plans to announce its financial results for the fourth quarter and 2024 earnings on February 28, 2025, after the market closes [1] - The press release and SEC Form 10-K filing will be available in the Investors section of the company's website [1] Services Offered - The company provides both regulated and unregulated water and wastewater utility services [2] - Information about Middlesex Water Company's Investment Plan is accessible on the Investors section of the company's website and its shareholder portal [2]

Industry Overview - The Zacks Utility - Water Supply industry includes companies providing drinking water and wastewater services to various customers, including military bases [1] - Water utilities are essential for maintaining a healthy life by ensuring a constant flow of clean water and reliable sanitation services [2] Infrastructure and Investment Needs - Water utility operators manage nearly 2.2 million miles of aging pipelines, necessitating continuous replacement and expansion [3] - An estimated investment of $963 billion is required over the next 20 years to maintain and expand drinking water and wastewater services to meet demand [3] Capital Market Dynamics - Utilities are seeking loans from capital markets to modernize and expand operations, benefiting from a cumulative 75 basis points reduction in the Fed's fund rate since September 2024 [4] - A further rate decline is anticipated in December 2024, which could enhance the profitability of capital-intensive utilities by lowering capital servicing costs [4] Company Comparisons - Middlesex Water Company (MSEX) has a market capitalization of $1.06 billion, while SJW Group (SJW) has $1.81 billion [6] - The Zacks Consensus Estimate for MSEX's 2024 earnings is $2.34 per share on revenues of $186 million, indicating a 33% increase in earnings and an 11.9% increase in revenues year-over-year [7] - For SJW Group, the 2024 earnings estimate is $2.75 per share on revenues of $715.2 million, reflecting a 2.6% increase in earnings and a 6.7% increase in revenues year-over-year [7] Stock Performance - Over the past six months, MSEX shares have gained 16.9%, while SJW shares have increased by 4.1%, with the industry also growing by 4.1% [8] Financial Metrics - Middlesex Water has a debt-to-capital ratio of 44.79%, and SJW Group has a ratio of 57.1%, both lower than the sector average of 59.34% [9] - The times interest earned (TIE) ratio for MSEX is 4.3, while SJW's TIE is 2.4, indicating both companies have sufficient financial flexibility to meet near-term interest obligations [10] Dividend Yield - Middlesex Water's current dividend yield is 2.29%, while SJW Group's yield is 2.95%, compared to the Zacks S&P 500 composite average of 1.18% [11] Conclusion - Both Middlesex Water and SJW Group are strong candidates for investment, focusing on water and wastewater services with potential for further improvement. However, MSEX is preferred due to its superior earnings, revenue growth, debt management, and stock performance compared to SJW [12]

Core Viewpoint - BofA Securities analyst Ross Fowler initiated coverage on Middlesex Water Company (MSEX) with an Underperform rating and a price forecast of $56, highlighting that it is the most expensive utility in their coverage, trading at a 47% premium to the utility group and a 13% premium to the water group [1][2]. Financial Projections - The analyst projects that Middlesex Water's EPS will grow at a 5.2% CAGR from 2024 to 2027, with estimates of $2.34 in 2024, $2.45 in 2025, $2.59 in 2026, and $2.72 in 2027 [3]. - Capital expenditures are expected to exceed guidance due to a national push for water quality investment, resulting in a 7.6% annual rate base growth through 2027, although this is slower than the recent 15% rate base growth driven by one-time water quality investments [3][4]. Growth and Challenges - Middlesex Water expects 4% customer growth in 2024, but economic conditions may pose challenges to achieving this growth, leading the analyst to adjust the growth assumption to 3% in their model [5][6]. - The focus on limiting water customer bill increases may restrict further upside for Middlesex Water, especially as the company relies more on frequent rate cases [4]. Capital Needs - The company may need to raise external equity starting in 2025, forecasting $25 million per year to bring its equity capitalization closer to authorized levels [4]. Market Performance - MSEX shares are currently trading lower by 1.66% to $60.31 [7].

Core Viewpoint - Middlesex Water Company has appointed Gregory Sorensen as Vice President and Chief Operating Officer, effective December 16, 2024, as part of its strategic succession planning and organizational realignment efforts [1][2]. Group 1: Leadership Appointment - Gregory Sorensen brings extensive utility experience, a commitment to safety, employee development, finance, and regulatory compliance to his new role [2]. - Sorensen previously served as President of the West Region at Liberty Utilities, overseeing operations in the U.S. and Chile, managing a team of 800 professionals, and handling regulated utility revenue exceeding $400 million [3]. Group 2: Responsibilities and Vision - In his new role, Sorensen will be responsible for the operational performance of Middlesex Water Company, overseeing Engineering and Operations functions, including capital program planning, water and wastewater operations, safety management, environmental compliance, and sustainability initiatives [3][4]. - Sorensen expressed his commitment to maintaining the company's tradition of operational excellence and enhancing service quality for customers and communities [4]. Group 3: Company Overview - Middlesex Water Company, established in 1897, provides high-quality water services for residential, commercial, industrial, and fire protection purposes, serving a population of approximately 500,000 in New Jersey and Delaware [5]. - The company focuses on balancing the needs of employees, customers, and shareholders while investing in infrastructure and community support to ensure reliable utility services and economic growth [5].

Core Viewpoint - Middlesex Water (MSEX) reported quarterly earnings of $0.80 per share, exceeding the Zacks Consensus Estimate of $0.67 per share, and showing an increase from $0.56 per share a year ago, representing an earnings surprise of 19.40% [1][2] Financial Performance - The company posted revenues of $55.1 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 10.20%, compared to $46.72 million in the same quarter last year [2] - Over the last four quarters, Middlesex Water has exceeded consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Middlesex Water shares have declined approximately 4.8% since the beginning of the year, while the S&P 500 has gained 21.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.36 on revenues of $41 million, and for the current fiscal year, it is $2.21 on revenues of $181 million [7] - The estimate revisions trend for Middlesex Water is mixed, and future changes in estimates will be closely monitored following the recent earnings report [6][7] Industry Context - The Utility - Water Supply industry is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]