AWK Invests $0.35M to Upgrade Infra - Analyst Blog


American Water Works Company, Inc. ( AWK ) continues with steady investment program to upgrade its existing infrastructure. The company announced that its subsidiary Illinois American Water is spending $0.35 million to install approximately 1,748 feet of 12-inch new water main at Lakeview Cemetery. The company is expected to finish the project by the end of 2013.

The current project will help Illinois American Water to reduce supply disturbance, thereby improving water supply reliability. Further, this project will improve water quality and enhance water flow capacity for firefighting activities in the locality.

The U.S. government continues to impose a number of new guidelines to maintain reliability in water supply. As per the U.S. Environmental Protection Agency's report, the U.S. utility providers need to spend $384 billion through 2030 to revamp and upgrade the water system.

We note that American Water Works is religiously following the government mandates and continues to improve its existing water systems while adding new assets.

On Dec 2 2013, the company announced that its subsidiary Virginia American Water will invest approximately $0.1 million to upgrade the water main in Berkeley Beach, Va. Per the plan, the company will replace 1,200-feet of a 2-inch main and an 8-inch main along Breezewood Drive, Cliff Road, and Lakeshore Drive in the Berkeley Beach subdivision.

Under the capital expenditure program, American Water Works invested $665.3 million during the first nine months of 2013. The company plans to invest approximately $285 million in the last three months of 2013.

The timely completion of the projects will enable American Water Works to provide uninterrupted water supply to its customers and improve consumer safety.

American Water Works currently has a Zacks Rank #3 (Hold). However, other water utilities that are currently performing well include Middlesex Water Co. ( MSEX ), with a Zacks Rank #1 (Strong Buy), and Connecticut Water Service Inc. ( CTWS ) and California Water Service Group ( CWT ), each with a Zacks Rank #2 (Buy).

AMER WATER WORK (AWK): Free Stock Analysis Report

CONN WATER SVC (CTWS): Free Stock Analysis Report

CALIF WATER SVC (CWT): Free Stock Analysis Report

MIDDLESEX WATER (MSEX): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: AWK , CTWS , CWT , MSEX

More from

Related Videos



Most Active by Volume

  • $17.88 ▼ 1.38%
  • $18.51 ▼ 6.98%
  • $94.01 ▼ 1.26%
  • $121.30 ▼ 0.87%
  • $23.28 ▼ 9.17%
  • $14.20 ▼ 0.77%
  • $14.83 ▼ 1.79%
  • $46.70 ▼ 0.38%
As of 7/31/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by