American Water to use debt to fund growth; balance sheet is ‘strong’

By Devika Patel

Knoxville, Tenn., Dec. 11 – American Water Works Co., Inc. will finance its growth plans through borrowings, a company executive said Monday.

“We expect to finance our growth with debt, utilizing the strength of our balance sheet,” executive vice president and chief financial officer Linda Sullivan said on the company’s 2018 guidance conference call.

“We estimate that our debt to total capital will increase approximately 1-2% to a range of 59-60%,” she said.

The company has a strong balance sheet and strong cash flow, which is expected to continue.

“Our cash flow remains strong,” Sullivan said.

“We have a strong balance sheet and expect continued strong cash flow from operations,” she said.

American Water Works is a Vorhees, N.J.-based water and wastewater utility.

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