ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued) (In thousands of dollars, except per share amounts)
Regulated Natural Gas Segment
The following tables present the selected operating results and customers served for our Regulated Natural Gas segment for and as of the year ended December 31:
2025
2024
2023
2025 vs. 2024
2024 vs. 2023
Gas utility customers: Residential gas
687,585 59,269
685,591 59,296
683,811 59,384
1,994
1,780
Commercial gas
(27)
(88)
Industrial gas
556
552
551
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Total gas utility customers
747,410
745,439
743,746
1,971
1,693
Delivered volumes - retail and transportation (thousand cubic feet) Residential gas
59,727,496 37,394,077 50,596,548 147,718,121
50,669,829 33,641,589 47,959,164 132,270,582
51,698,440 33,151,308 48,323,846 133,173,594
9,057,667 3,752,488 2,637,384 15,447,539
(1,028,611)
Commercial gas
490,281
Industrial gas
(364,682) (903,012)
Total delivered volumes Heating Degree Days (a)
5,380 5,341
4,288 5,240
4,558 5,427
1,092
(270) (187)
Average Heating Degree Days (b)
101
2025
2024
2023
2025 vs. 2024
2024 vs. 2023
Operating revenues: Residential gas
$
708,049 141,275
$ 504,426
$ 519,406 $
203,623 $
(14,980) (10,610)
Commercial gas
100,662
111,272
40,613
Industrial gas
3,150
2,279
3,232
871
(953)
Gas transportation
242,186 23,215
194,413 41,211
184,598 45,251
47,773
9,815
Other utility
(17,996)
(4,040) (20,768)
Total operating revenues
$
1,117,875
$ 842,991
$ 863,759 $
274,884 $
Operating expenses: Operations and maintenance expense
$ $ $ $ $ $ $
227,656 384,811 158,348 19,978 101,007
$ 207,176 $ 267,226 $ 135,814 $ 22,985
$ 209,073 $ $ 327,548 $ $ 125,263 $ $ 23,846 $
20,480 $ 117,585 $ 22,534 $ (3,007) $ 104,841 $ 38,693 $ (26,242) $
(1,897) (60,322)
Purchased gas
Depreciation and amortization Taxes other than income taxes
10,551
(861)
Other expense, net Income tax benefit Segment net income
$ (3,834) $ 90,819 $
(94,653)
(41,300)$ (79,993)$ (113,353)$
33,360 93,054
267,375
$ 293,617
$ 200,563 $
(a) Unit of measure reflecting temperature-sensitive natural gas consumption, calculated by subtracting the average of a day’s high and low temperatures from 65 degrees Fahrenheit; measured at Pittsburgh, PA. (b) Based on historical twenty-year average heating degree days, as calculated from data provided by the National Weather Service for the same geographic location.
Operating revenues – Operating revenues from the Regulated Natural Gas segment increased by $274,884 or 32.6% primarily due to:
an increase in purchased gas costs of $117,585; refer to purchased gas costs discussion below for further information; an increase of $69,363 due to higher rates and other surcharges; impact of higher volumes delivered of $57,723 during 2025 as compared to 2024; an increase of $25,958 due to lower tax repair surcredit; and an increase in customer assistance surcharges of $17,369, which generally has offsetting amounts in operations and maintenance expense; offset by a weather normalization adjustment of $16,439, which had the effect of decreasing revenues.
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