ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES Notes to Consolidated Statements of Cash Flows (In thousands of dollars, except per share amounts)
Years ended December 31,
2025
2024
2023
Cash flows from operating activities: Net income
$
616,369 $
595,314 $ 498,226
Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and amortization
417,471 (3,178) 22,227 12,855 (1,325) (85,432) 14,299 (3,945)
369,552 (27,756)
343,695 (79,845)
Deferred income taxes
Provision for doubtful accounts Stock-based compensation
21,865
23,209 11,323
9,785
Gain on sale of utility system and other assets
(92,224) (103,335) 26,963 (9,394) (20,427) 770,343
(65)
Net change in receivables, deferred purchased gas costs, inventory and prepayments Net change in payables, accrued interest, accrued taxes and other accrued liabilities
189,989 (14,559) (20,343) (18,043) 933,587
Pension and other postretirement benefits contributions
Other, net
21,118
Net cash flows from operating activities
1,010,459
Cash flows from investing activities: Property, plant and equipment additions, including the debt component of allowance for funds used during construction of $7,975, $7,372 and $5,241
(1,429,980)
(1,329,747) (1,199,103)
Acquisitions of utility systems, net
(57,004)
(665)
(45,303)
Proceeds from the sale of utility systems and other assets
1,548
167,470
41,758
Convertible note investment
(25,125)
-
-
Other, net
(183)
(339)
(19,080)
Net cash flows used in investing activities
(1,510,744)
(1,163,281) (1,221,728)
Cash flows from financing activities: Customers' advances and contributions in aid of construction
28,255 (8,073) (36,403) 567,448
19,563 (8,564) 26,418
23,982 (8,471) (68,377)
Repayments of customers' advances
Net proceeds (repayments) of short-term debt Net proceeds from commercial paper program
-
-
Proceeds from other long-term debt Repayments of other long-term debt Change in cash overdraft position
1,318,887 (1,262,822)
1,649,546 (1,027,473)
1,207,619 (876,379)
(22,220) 15,301 300,117
34,356 15,476 36,134
(15,336) 16,005 322,983
Proceeds from issuance of common stock under dividend reinvestment plan Proceeds from issuance of common stock from at-the-market sale agreement
Proceeds from exercised stock options Repurchase of common stock Dividends paid on common stock
956
2,471
287
(2,284)
(4,048)
(3,981)
(373,821)
(346,392)
(316,806)
Other, net
566
(5)
(171)
Net cash flows from financing activities Net change in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year
525,907 25,622
397,482
281,355
4,544 4,612
(6,786) 11,398
9,156
$
34,778 $
9,156 $ 4,612
Cash paid during the year for: Interest, net of amounts capitalized
$ $
310,921 $
275,898 $ 272,532 6,698 $ 7,839
Income taxes
9,080 $
Non-cash investing activities: Property, plant and equipment additions purchased at the period end, but not yet paid for $
144,987 $ 34,349 $
135,331 $ 102,770 38,840 $ 56,297
Non-cash utility property contributions
$
See accompanying notes to consolidated financial statements.
Refer to Note 15 – Employee Stock and Incentive Plan for a description of non-cash activities Refer to Note 20 – Other Supplemental Cash Flow Information for details on cash paid for income taxes
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