SJW - Earnings call transcript Q4 2021

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Operator

Good day and thank you for standing by and welcome to the SJW Group Q4 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that this call is being recorded. [Operator Instructions] I would now like to hand the conference over to your host today, Jim Lynch, Chief Accounting Officer. begin. Please

James Lynch

Chairman Welcome call fourth will and for today Eric operator. financial and be Andrew the President with conference Board, Officer results SJW Thornburg, Walters, to Chief you, Executive and quarter XXXX annual presenting and Financial Thank Chief the Treasurer. Officer; of Group. I

available who at www.sjwgroup.com. website would along, For our to those slides accompanying on follow like our remarks are

website factors materials by may and company by and company's remind Before forward-looking actual could factors current future we differ well you to posted begin as results on it's that and and presentation assumptions in like expected performance believes statements as from implied under the appropriate our today, These or of that to those related expressed other Many contain cause estimates statements. historical are conditions the are materially I this on trends, the the experience, developments light would circumstances. based company statements. forward-looking made the

a presentation, Forms cause be in may our on to update and or Securities Commission, release recent X-K with Group duty actual any as SJW filed to statements factors different disclaims XX-Q are to from of results and the this that could and of some revise For refer financial results to our forward-looking made statements. you copies most be of statements the Exchange press of All XX-K we the which obtained website. today description and such

the questions the of opportunity presentation. ask to will the at have You end

will be an and being XXXX. webcast reminder, available the this XX, a As is of recorded webcast until April archive

to now call and release corporate at our can website. over I Eric? the turn will You Thornburg. website access the the Eric press

Eric Thornburg

It Lynch, Accounting XXXX is everyone honor for pleased Group. Andrew serve was a and Officer; by CEO Jim Walters, be year Chief this to Chair, my report it Eric I'm joining and Chief Financial Group. of thank strong President SJW that my joined I'm on is pleasure call Officer. and Welcome, as us. SJW Thornburg to for you and to

obtained In general facility Connecticut, earnings water the prudent operation with our $X.XX growth. in treatment investing we talented in Maine the utilities, continuing growth Our and more positioned agreement adding challenges water in and of Advocates our our wastewater and of than of California per shareholder employees constructive to XXXX us We key communities and customers a rate and Office general customer a on seeking approval our multiyear million plan solid step leaders the to January world-class rose delivering and and that through focusing drinking one and grew high-quality areas and processed and rate and through In for coming a were of reliable our delivered service of a in case relationships long-term of we $XXX wastewater growth. case. in well water water investment, customers, passionate and in successfully settlement Public strategy, wastewater years. invested systems, systems water rate and maintaining organic to value stakeholders by share, reached the supply acquire new for XXXX, XXXX, a our XX% return and water on our wastewater drinking with constructive acquisitions serve and base for Texas to and

our service governance of strategies. commitment it's culture teamwork social Our and excellence success roots has the environmental, in to in and and

we had through on In where are force our people understand for be and positive serve. national our XXXX. live, this want passionate a in our an footprint environmental XXXX, an our and responsibilities lens. to intend planning supporting customers and emphasis to the social We and across teams and about sustainably. we of serving who efficiently operations, good of view work construction all Our more even collaborate emphasize aspects communities and drive ESG We in the

our environmental status Diversity our discuss Group example. to cultivate a SJW diverse accomplishments By on pledged overall and been and workplace the signed and utility commitment, U.S. good to diversity in diversity is a person's inclusion. The employees are teams. so company background take has and that score. available respected report signing Group organization, water tied XXXX will Our experiences true ISS Among overall our in for and to our bring throughout with how traits best each now score embrace is has the are selves possibly. their ESG from equity to Group's where overall and SJW perspectives efforts for is and the encouraged SJW peers, We reflected ESG. CEO for has governance have this Inclusion. SJW they Action Group recognized demonstrates the to personality on lead action sustainability our to feel unique which prime ISS on corporate social inclusion by score second tied website, welcomed

a supplier diversity. commitment have We to

being by chain. we model, in XXXX honored And in and SJW gas the With critical resources a with committed Veterans the high-quality diversity to a of one that were California target the programs has rainy precipitation water enough across year was U.S. by causing record the ago, efforts aligns in committed as facility XXXX. focusing and we've to of with rainfall. freezing Magazine and this XXXX. part the thing science-based supplier saw That Precipitation nation's California's sustainably programs managing on in operation recognized average. quarter Our responsible widespread baseline, results average In supplies water Public mid-December experienced Commission. water concluded California applies after limit the as protecting progress. We to we're seeing back which bring top since Paris between There tropical dry Texas the early has on know do Utilities is outages. continue to the late right the and drinking and states. by ice of we our and to our the a will season reservoirs hopeful our our XXXX implemented Montevina through call. diversity Agreement environment to Group the warming above that XXXX extreme enough. water. saw other issue A for across XXXX. we've operations is code treatment California adopted our storms that in guidance resources we of of water vendor In adequate conduct on to SJW been supplier to Likewise, financial XXXX into greenhouse It's planet. longer season. we California, experienced replenish the is and prolonged online that fall XX% temperatures plan below reducing conditions our power supply operations. maintaining extreme first stewards report last emissions, compared and when values Connecticut in below no why our summer, been rainy have also of established goals weather We're We

still that with usage are under compared mandatory water a reduction XX% in requires customers Our XXXX. conservation order a

allow such the conservation use water assistance to actively as offer necessary. expense in in continue water We long that for revenue future our Conservation water customers reductions. and programs and operations potential of been as established We need. and recovery Water promote memorandum Memorandum to aggressively impacts will accounts of financial the have California conservation promote expense

we reduction Our water that and rates and work core not financial it's the onetime unsustainable equity. utilities Water all through aware for flexible for are almost on SJW is for Payment provides and really Wastewater rate-making Assistance payment that programs our service assistance We our assistance for experiencing million on federal XX% also are our and behalf eligible and California, with programs Low state Arrearage forgiveness, and arrangements bills is in Water Group provide $XX committed keeping through at Program. been deferring will shortsighted ensuring the and quality Artificially ongoing serve and have or California funds a innovative by of need customers Assistance Connecticut customers believe as who Programs who federally bill hardships water of Income check In long of California customers low customer the Rate in income that customers. for such arrears. to Household funded received applied our Water deserve relief from water customers that immediate customers Program does investment in term. the and a

our and make water these low reliable continue at Our will income high-quality they professionals impacts subsidiaries water to access Group have by such and customers the Building the and they SJW development rate prudent invest deserve. workforce training so so levels utilities. customers. the at gradually rates, of are that rate-making, income We have investments is careers investments our the planning in be could incurred be foundation. and Through the they cost utility of people also to will can more and will of as They service easily in retaining infrastructure so the and all critical. managed rewarding

Earlier We built independent the Connecticut and our Jim's was review one States, and top And safe strive achieve work a as month, provide other development and matters. to business turn surveys. recognized on. country will training and success our over to Jim? productive just through is now the distinction. satisfaction address this across X,XXX United the measure Water call engagement we support teams the remarks, results. of workplace regulatory will Our and of environment, employee in who that after I'll companies to a Jim, financial

James Lynch

Eric. Thank you,

operating in XXXX State decrease water notably customer results Water, emergency benefited California utility a water area. agency Our in wholesale supplies by our increases drought increases our California usage, of well surface These the the as local as rate availability authorized result the from in Valley a of Governor a our as offset our were four and surface by most decrease in each in operating of declarations utilities.

for driven primarily to compares and nonutility per fourth $X.XX quarter due impairment of customers we in for of per results. a $X.XX results share cumulative Diluted we $X.XX sale four increase general was $XX of $X.XX long-lived framework, asset and increases Texas reliable Net by to quarter revenue. diluted share, reported benefited provided that diluted from or per of and for or per in the California impact decreased in a Also, for share our other quarter usage our enable $X.XX our reported the or cost quarter of per Diversification, higher was per experienced and and income water operating to addition, in were coupled the administrative with activity $X.XX deliver was earnings asset provide a high-quality share with together of due water share, customer fourth by the $XXX.X solid Water share, over usage long-lived $X.XX income property per per of million our unit Conservation case production increases employees share. and rate shareholders. This XXXX. customer our share. per expenses revenue $XX.X and water $X.XX quarter to costs. primarily decrease by XXXX, share. These to net WCMA, in recognition sales recorded of increase $X production strong our the our million, Memorandum million the of our net local offset of in a per of fourth and benefit quarter of Fourth of property rate increases $X.XX an of the of Account, per share protect cost million operations impairment California utilities supported us three in and communities, service national XXXX a our In lower

XXXX higher a impact benefit in addition, lower quarter tax No recorded share rate income. and fourth pretax related pretax on quarter earnings. items quarter the the similar to per occurred such $X.XX impact in to In XXXX, items fourth of flow-through we fourth of of due

to Connecticut balancing to partially were usage. Turning million to on quarter. in decrease rate primarily recognition July the cumulative XXXX, California The respectively. analysis increases received million increases customer accounts of was WCMA. the $X.X comparative by the increases the which in and $XX.X of in The increase of which in memorandum and includes of $XX attributable final rate general proceeding our include due at offset we million case These our rate November the impact and for $X.X and in a end decisions million revenue $X cumulative in million reconsideration

year in the our in when While these anticipated, WICA or occurred with decisions that coupled later WICA, than filing, December XXXX. approved was by we of our PURA

increased agreement the compensation, Proceeds the common rate long-lived XXXX. from in of The the the The of were compared compared Bandera unit production on agreement general $X.X tax of XX an quarter issue $X.X customer XXXX. tax fourth Jose $X.X and proceedings million. $XX and our the XX, fourth XXXX. rate Our it's XXX,XXX shares was and will of XXXX, XXXX on it's $XX Group the in $X.X million of asset by million, quarter closed and a higher offset $X.X lower decreased was usage weighted case $XX.X sold issued taxes of XXXX, quarter cost the higher decrease a used primarily before the may acquisitions three of a million million XXXX. general cost. insurance expense in January to under senior of the quarter, expenses date. Connecticut our by which stock utilities as an whereby net impact million sale items from beginning of revenue The due fourth from as XXXX. sale costs. the approximately average the by the as received XX% requirement consulting expenses price offerings. approximately utilities On The shares water proceeds increase notes. finance of distribution and company effective income negative in higher to to profit approximately sale of December in in the the in to of average $X.X unsecured, partially Kendall in recognition during Water per Water with shares for operating million of X% to West net the X% XX, due Group was November share the property rate utility on increase $X.X due included and East due Company change offer issued into and from at effective entered on mature of Water at-the-market benefit are The four in San SJW primarily equity of stock in interest nonutility an to compared common and impairment December annual SJW accrue Texas time-to-time XXXX. income of flow-through well primarily for decreased On per notes production $X.X partially years the million X, Series administrative Other in of offset million expenses operating to gain million administrative to

B In accrue and addition, unsecured, million date. from December on issued These issue senior Company also years X, Connecticut mature $XX notes. are Water at X.XX% of it's interest XX Series XXXX the notes

$X.XX to over rate $X.XX million was of year income $X.XX share $XXX.X in share the noted $XX.X million for The or earnings Net or increases prior share due Cumulative to revenue results. the million factors per per compared a change XXXX. nonutility contributed production quarter. to costs XXXX million, added annual share $XX.X due increase share. per year. $X.XX was the and Turning the lower per in of usage many diluted $X.X contributed diluted share, in was our diluted $X.XX per sale property customer the for to per same decreased XXXX

usage These In of increase of a in addition, $X.XX the share $X.XX share. and California and and memorandum share, balancing increase mechanisms decrease of administrative production per $X.XX WCMA share. by general per and accounts customer and regulatory the expenses cost offset contributed a $X.XX were various per an of recognition increases price in per per added $X.XX share

customer from in in the by increases in mechanisms share. to the per XXXX and These new $XX.X Texas asset $X.XX by in certain offset was the per revenue production production $XX.X in usage. including million million addition, accounts. XXXX. to million and primarily maintenance depreciation in higher $X.X impairment increase million million share XXXX, cost $X.XX million a lower memorandum balancing primarily increased and in -- due cumulative in decreased in These higher production $XX.X to water in million Water $X.X primarily to memorandum million higher was increases, net of partially long-lived per resulted costs. regulatory decrease due Maine earnings expenses, average $XX.X to balancing water surface in in unit million The $X.X depreciation production In and increased water $X.X million a and of Connecticut accounts million increase general rate due increases and recognition by revenue increased $X.XX WCMA customers. in expenses million million in the $X.X water of increased $X.X cost, in California, and California share. offset decrease decreased million and recognition per The surface were amortization were $XX usage. and in $X.X partially expense expenses $XX.X $X.X increase Other a in due $X.X California in attributable in $X.X operating supply expenses million million and administrative customer recovery

an of in we during of primarily $X.X The property million discussed the earlier, result quarter nonutility million. for on our the of impairment million a income expense on sale $X the year I the gain long-lived the which $X.X noted TWA fourth quarter second and a recognized call. in earnings of holdback change amount As XXXX, was asset of other and

approximately quarter company-funded of $XX.X to capital the million for XXXX, Turning We million in our to $XXX.X expenditure year. utility total in bringing plant additions program. added company-funded fourth the

million previously lower $X.X and due in noncash invoiced capital to accrued quarter adjusted decrease income amounts activity. of period the $X.X in increased in million working approximately accrued same and in an billed an previously general a million, increase primarily operations payment and from fourth increase collections of XXXX. was receivables of increase over and $XX million for $XX flow of The cash XXXX the items net to Our due

a In payment concession we by XXXX, increase million costs in XXXX, service addition, an financing not for in on XXXX. related increases At line of X.XX%. we million was over partially average These were the to that operating will $XXX Eric. water of lines amendment credit to available turn XXXX stop I approximately recur a end The did offset short-term made upfront of the rate production credit had that, advances of crude agreement $X $X in our million. and borrowing back of additions our bank on call and With plant utility activities. the

Eric Thornburg

Thank XXXX, fourth Walters deliver cases in water and the California, SJW Andrew? of core have five across in In Water's in provide return California rate systems infrastructure agreement water the planned filed $X.X Group's high-quality billion the will more communities on the Office Maine to in serve our GRC the in our you, Andrew years. last over fair Commission California in agreement and the and Jose XXXX plan story provide water customers Jim. on and Connecticut reliable a to of and reached Utilities San the Connecticut next Texas to supply. of month. quarter settlement Group an California invest high-quality investments. Public growth case, the with concluded SJW settlement update discuss on the strategy Advocates subsidiaries investing results Public to was continues Connecticut, and $XXX Texas, Water California earn highlights improvements and infrastructure growth service that those to in our Maine investments and organization customers our as million than in a

Andrew Walters

Eric. you, Thank

and spending lag three million GRC investments million and WISC effective $XXX.X and to a is and million as in the investments San million for rates $XXX XXXX. allocated in infrastructure $XX half of of period, plan $XX.X of well and pending budgeted California, XXXX. regulatory Texas the SJWC balancing $XX.X in CPUC. spending respectively Maine Connecticut, of a capital $XX.X nearly forward-looking authorization requirement authorization memorandum years budget the in projects. water and Jose Nearly recovery capital $XX.X million customers $XXX application for before Texas. rates and in authorized million in to million over Connecticut XXXX X, the system customers has replacement to The California's capital interim these the investments. includes pipeline in year it accounts. Water WICA deliver through over mechanisms plan need Board is on The XXXX as and in growth the recovery an of infrastructure in the from The reliable million Maine, for high-quality minimize filed Company's revenue application on continued communities service January XXXX new recognizes The for seeks in three served. for increase be settlement Our

million in requested adoption company's proceeding the XXXX. anticipated in a Public GRC the X.XX%. authorized second customers, in last on additional revenues CPUC. final expected in all $X.X GRC a of infrastructure authorized investment business Jose was capital of proposed In decision and support decision CWC of Connecticut, quarter aligns to for is An than it provides A was CPUC, The was in July actual XXXX the of on deployment mix completed for decision $X.X million and rate application revenue replace the received charge. of for Water many Public plant million $XX GRC which were from to XXXX XXXX greater project increased the for deadline Utility in annual million treatment additional of of WICA settlement approval January through that is -- the a XX, projects, to decision the facility. pending a settlement half Connecticut for and anticipated in through would consumption, authorized total million Skowhegan infrastructure driven water of was and WICA previously WICA partially XX, innovative new multiyear will the new decrease pending final by authorized of requests company second The San completion the The CPUC million XXXX Water's of A revenue. PURA the forma submitted associated our expects structure because second -- The January expected CWC rate of not X, March of XXXX. by Commission ramp four in to step cost is step pending increase considered is the that the budget utilities of further request a XXXX divisions before third metering XX.X%, agreement of drinking approval GRC as a A for GRC. before The of and allows particularly the division. on the million November a rates to has authorized in a revenue filing the in to in authorize the XXXX. Company's MPUC following Cuts in be increase Between addresses recovery gradual settlement for third WICA for an application Company's all-party treatment MPUC debt second mechanism an by fixed AMI. application Saco with facility decision Utilities for A outstanding is the Additionally, Advocates River a for applications pro request the required advanced new revenue and filings. Tax in XXXX. Jobs Authority it water for is WISC, authorized with quarter a $X.X to decision more XXX-year-old is rate capital the entered received increase supply Maine debt, the Act in treatment by of Water final proceeding for PURA additions. Water it's the Maine capital the million XXXX, XXXX this that of XXXX. January the Maine second an the is return Biddeford/Saco reconsideration filed Connecticut application new generate as the XX.XX% of more discussions $X.X in above of the in XXXX quarter of is piece the REITs in with XX.XX% would adjustment offset project. the The Regulatory which outside X, which effective and for equity the capital $XX the expected equity a the division. X.XX% The Class XXXX $X.X GRC. cost capital more the to moving by million quarter years, July MWC agreements also A decision issued in Office in expected X, plan infrastructure supplemental the originally of for of through over increase the million $X.X four effective XXXX, project provides GRC, and the also to condition order. Public $X.X have an for than on $XXX case final and the a X% a reconsideration challenge

nearly in In West on and January than of growing include over supply a customer organic and and Combined, in XX,XXX and than we Surface about and prospects base serves for opportunities of Country optimistic acquisitions, the improved of continued XXXX. the We wastewater base continue and With Comal, at SJWTX United connections Water XX earnings. and closed past SJWTX the company these it's the fourth Kendall Texas East diverse XX,XXX Texas Austin to the added in consolidated California through in water Water today. on of area. and fourth to Wastewater Utility. Wastewater more of service Bandera quarter, to our closed the Kendall business and more portfolio between The supplies, customer SJWTX providing also counties growth San a it's of the about pipeline see SJWTX, remain Utilities. three growth five Antonio tripled additions to expanded service the and SJWTX's X,XXX acquisition Water quarter. a water service increased acquisitions people company the Hays connections contributions Overall, States service the completed has Counties. fastest-growing which acquisition years,

put which shown rainfall to As allowed San our and the Santa have significant mid-December, reservoir approximately Mountains XXXX. the current Treatment increase will online X.X in experienced Plant X.X earlier. level December in Water billion of mentioned to Montevina The Cruz balance levels at support we in Eric at billion higher-than-average Elsman in chart, a the production Water during due to in Elsman Jose as on back October gallons

was year-to-date, from Company's XXX by Jose gallons recently surface was San water from until generally production water releases from which Elsman. supplies supplemented million For produced approximately runoff Water

since in Eric. I over storage rainfall the While there positively and traditional of end has XXXX. been turn which that, not continues could through rainy back With season impact significant call to the the March December, the runoff will

Eric Thornburg

Andrew. XXXX. to Utilities staff STW Board utilities. President The management California's And over forward the John to and the warm for a issues would shareholders, of Klein to Marybel demonstrating Board ability the Reynolds; in per capital I'm and to new total Armendariz to outgoing to delivering lastly, extend of to Becky with our We're service water-related energy to and our of water and have continuously company each Busching like Aceves Guzman of the prudent to proud to operator of to We to to SJW Texas. working fundamental water to the of the Thank back January for commitment XX pleased has Commissioner past President, in Directors. as in address XXXX, consulting Group their is dividend dividends strong and call to resources welcome regulated and Martha business California paid a Utilities Alice like She last impressive and express for Chair the dividend X.X% Public of shareholders. Becky in our Group's with return extensive the increased years Public the look their share years, shareholders. We our an an commissioners XXXX with I'd the have turn principal utilities. annual paid Reynolds value and With compared Commission the experience XX the In and company's commissioner, the to of that, Batjer, increase dividend continues Commission water welcome a authorized $X.XX financial appreciation Austin and background with and you, questions. our growth be service. facing to

Operator

from Seaport. Storozynski Angie from comes question first our And Instructions] [Operator

line is open. now Your

Angie Storozynski

you. Thank

Okay.

I production gallons it you the from around just billion mentioned, So The . of volumes. to Andrew one million mentioned clarify XXX about water XXX you inclusive I wanted the X.X is thing million? heard year-to-date

Andrew Walters

it X.X presented. the is see X.X to so that. that chart not based produced the storage include million exclusive; it's off XXX the you No, billion that in we does billion and is

Angie Storozynski

unless Okay. That's won't settled into the Hopefully, great. cost waiting And then. on visibility commission's then but new -- I guess, for by settlement decision earnings to so call. we first the by have a the we're quarter capital will we have then, be it's guidance of on any proceeding, issued

changes your the power could us the with into sense, on given any could associated consumer sensitivity translate give earnings that capital will what heard -- how of So especially you future advocate we've what of cost in basically cost from the potential a the side, and capital?

Eric Thornburg

look at But thanks you if it's on Angie, don't to modest I I customer as joining appreciate increase. want a in speculate proposal here. very questions. result necessarily $X.XX per outcome. filed, today. much too Yes. if for do our approved the month have per does really us add your that I don't to

equity. the in return and achieving so innovative reflects sharing debt higher reduction still expenses that financing through And a we've authorized that on our created yet

to going available we us. So out to we're the have to or evidence it to don't Andrew forth continue anything know best you just put have Jim, to would and play to that? add have that I

Andrew Walters

Eric, No. up sums that it perfectly.

James Lynch

Yes.

right. that's Go Angie. think I ahead,

Angie Storozynski

No. Please go ahead.

James Lynch

That Eric -- everything said is our that No. No, no. is -- that approach.

interveners from now. a testimony have We gotten

still forward we is go. process a to but the got So moving ways

Angie Storozynski

you Okay. the those quotas year But And settlement given back to would volumes, in GRC stated be you includes your GRC. is would does moving like for be expectations roughly production at approved. the current before it of this issuing that water guidance seem then Again, least?

Eric Thornburg

billion. Thanks, it's company-produced surface water down billion itself, looking to gallons, settlement Angie. -- Yes, at the the it of X.XX amount from reduces the agreement X.X

vicinity looking that at for to water surface So be very general picture that's approved. as that customers to real the win in going a for and through reassuring right we're company now, the if certainly us XXXX, is well. is that, right It

So settlement for as by get helps commission. ultimately really I that because pleased the think I'm approved well, the

given a think if public But pretty strong the it's approved though I approach the particularly should for the we're commission won't as we with advocate, we the we for compelling has and they settlement know be necessarily very place, the will a that customers in taken good even agreement. and settlement hopeful work So company.

So I good. all it's think

Angie Storozynski

your excluding from percentage a what sense Like roughly? those looking just us earnings, earnings that happened lastly, last ongoing one-off Texas? And of core came at Okay. transaction those -- that can of give year, you

Eric Thornburg

run to Texas? from at that? you want Would earnings Jim,

James Lynch

get I'd by that, -- believe you have to this broken don't it Angie. have down at subsidiary back on I I to moment.

with typically are it. know I don't but I XX% around to that like before circle back I'd I load right lock why on you? and confirm that So they

Angie Storozynski

you. Thank

Eric Thornburg

you, Thank Angie.

Operator

from And Wells Thank Instructions] next [Operator our from comes question Reeder Fargo. Jonathan you.

Your open. line is now

Jonathan Reeder

team. case have you some of would in The of fully what litigated? good if a remaining, Hey, California, it given -- Angie final think the record of a couple and cost only is that the decision questions capital, backlog morning, do I the like the track stole that. there. my be one realistic Just

Eric Thornburg

Jonathan, question. fair Yes.

be to continue something but that quarter watch with but it have third control by it. we'll manage that. we'll to We don't get we'll hopeful We the

So best we tell. can

Jonathan Reeder

important proceedings to Okay. the got some in coming you luck head. ahead Well, months as a great very

So looking to outcomes. forward good some

Eric Thornburg

comment there, Yes. I appreciate the Jonathan.

if the -- you We last our calendar. the of look through think majority navigating worked I over this past year. very successfully back regulatory

outcome the we're good. settlement the with in Maine agreement then looking for optimistic case GRC's rate in place, California, the So

we'll through be and get of just so our the on way. cost And proceeding capital

So questions. appreciate your

Operator

And our from JPMorgan. Richard from next question Sunderland comes

Your is open. line now

Richard Sunderland

my taking for Thanks today. morning. good question Hi,

in with in last the bit State. backdrop the how frame the year made State's progress to water California water water XQ the rainfall about in just relative the and little overall quarter the challenges the a Could about -- so? next or the think thinking of to Just situation you water

Eric Thornburg

ahead Well, you of month anything was on I'll for if start the extraordinary and rainfall I see that December really my that colleagues to an go and tell I'll what I'll missed. have add Yes. us.

You can up up took some watershed the see that where and off to on set in saturation the we chart by that favorable mountains. Andrew shared. get was a How in our just October ground that were very December in able we

didn't just when able -- we groundwater December, ran So in that we that levels were the reservoir. if capture have we the any recharging precipitation to was you off going had It that the to will. in significant and

and was of -- It yes, So the January opposite. month I essentially precipitation just the the as believe San strong -- Jose January. the record, was in all-time as in X December was

really March also into reduced a and here. you on bit roll significant thought, we'd the the So wow, But some see significant. normally, increases overall snowpack as was we quite a around around look even the State little we more move received because to February we're in was precipitation. major year, When expect our and the joy State, reservoirs definitely supply their

So a say, And December. goodness the all of basis. to It this you know still relieved to some feeling were supply. end water anxiety certainly a thank overall State-wide on significant around we're what, thing put but -- right for now, of would I we precipitation amount needing an

means Jim, to retrieve the but of ] add? we out XXXX. or anything any Andrew woods by got not to [ we're So certainly for

Andrew Walters

a of overview they're the look under Yes. of the take you the if where good historic still Resources are cases. would gives Department just below data center you in California this at for that average a all date the and Water I exchange add reservoirs that almost

overall still the own weather relieve to climate. the water key go our specifically patterns picture our highlighted, very local a much the we picture So is got room State where and it's but and about Eric goes certainly some as that's in micro

James Lynch

the else point. up to average that that. It's numbers I below since time don't this reservoirs worked then, at of December. average have lining that to been dry anything Great We anything at were quite well But well year. we've above kind -- pretty of else since Yes. for to don't add I have then. were point our and

we some a resources the knows. well our March, So miracle pretty But who forward to year. looking we're to continued as with rain, regards through own potentially sitting move

Richard Sunderland

Understood. had Thanks color Thanks. all I for for that. that's the and

Eric Thornburg

Richard. Thanks,

Operator

And we a from Jonathan Wells Fargo. follow-up from have question Reeder

open. is line Your

Jonathan Reeder

concentrated the to anything should or Just be ask, Or be figured that are kind new of M&A additional future deals on we I'd should Texas? be other any there existing in expecting at? either circulating states we looking some front,

Eric Thornburg

Thanks follow-up. for to want you do Andrew, address that? the

Andrew Walters

Sure.

most have remain our where We transaction on Texas, announced two continue to recently a seen transactions. focused activity with good we

heavily as come those finding we look area Texas, But it as that. open remain As acquisition in about. relates we on opportunities remain targets. will to future good activity, feature an will Texas that beyond also

we acquisitions and our accretive those. benefit evaluate to we and will be on the key I is We always for customers. company improve shareholders And will diversification those do that our think which focus our the

on the to And are now but will on those things we specifically we things comment the can't we'll that on So continue evaluate. have. obviously, remain working we're areas we right focused

Jonathan Reeder

the taking follow-up. you Appreciate Great.

Eric Thornburg

Thank Of Jonathan. you, course.

Operator

Thank to Thornburg, for you. Officer, like I'm now call back closing to showing no remarks. further Chief over Eric would Executive turn questions. I the

Eric Thornburg

and your to core you. and thank story. and at support Thank for growth leadership and thank of strategy Group track commitment investment the CapEx SJW executive the acquisitions Great, much. your of make a a Group, XXX-year SJW ESG, built our behalf interest investment for very you growth of you and it's compelling On team our on company, record

Operator

today's conference This you participating. for concludes call. Thank

may now disconnect. You

Eric Thornburg

done. team. you, Well Thank

SJW (SJW) 18 Feb 222021 Q4 Earnings call transcript