Artesian Resources Corporation (ARTNA)

History and Background

Artesian Resources Corporation was founded in 1905 as Artesian Water Company. It has grown through acquisitions and organic expansion, evolving from a small local water utility to a publicly traded company providing water, wastewater, and other related services in Delaware and surrounding states.

Core Business Areas

• Water Service: Provides regulated water service to residential, commercial, and industrial customers. This includes water production, treatment, and distribution.
• Wastewater Service: Offers regulated wastewater collection and treatment services.
• Other Services: Includes non-regulated services such as contract operations, water and sewer line installation, and other related services.

Leadership and Structure

Dian C. Taylor serves as the Chair, President, and CEO. The company has a traditional corporate structure with a board of directors and various executive management positions overseeing different aspects of the business.

Key Offerings

• Regulated Water Service: Provides potable water to residential, commercial, and industrial customers. Artesian is the largest investor-owned public water utility in Delaware. Competitors include other small water companies and municipal water systems. Market share in Delaware is significant but not explicitly published.
• Regulated Wastewater Service: Collects and treats wastewater. Competitors are mainly municipal wastewater treatment plants. Artesian holds a considerable share in the Delaware wastewater treatment market. Market share in Delaware is significant but not explicitly published.
• Contract Operations: Operates and maintains water and wastewater systems for municipalities and private entities. Competitors include companies like Veolia and American Water Works. Market share data is not readily available.

Industry Overview

The water and wastewater industry is characterized by its essential nature, regulated environment, and capital-intensive infrastructure. The industry faces challenges such as aging infrastructure, increasing regulatory requirements, and the need for water conservation.

Positioning

Artesian Resources Corporation is positioned as a leading water and wastewater service provider in Delaware, with a focus on high-quality service, infrastructure investment, and regulatory compliance. Its competitive advantage lies in its established infrastructure, operational expertise, and strong relationships with regulators.

Total Addressable Market (TAM)

The TAM for water and wastewater services in Delaware and surrounding areas is estimated to be in the billions of dollars. Artesian is well-positioned to capture a significant portion of this TAM due to its established presence and infrastructure.

Key Competitors

• AWR
• WTRG
• MSEX

Competitive Landscape

Artesian's competitive advantage lies in its established presence in Delaware and strong regulatory relationships. Disadvantages include its geographic concentration and capital-intensive business model.

Brandywine Water Company

• Year: 2011
• Acquisition Price (USD millions): 4
• Strategic Rationale: Expanded service area and customer base in New Castle County, Delaware.

Sipple Well & Pump

• Year: 2018
• Acquisition Price (USD millions): 3.1
• Strategic Rationale: Expanded service area and access to new customers.

Historical Growth: Artesian's historical growth has been steady, driven by organic expansion, acquisitions, and rate increases. Growth has followed a consistent trend upwards.

Future Projections: Future growth is expected to be driven by continued infrastructure investment, acquisitions, and expansion into new markets. Analyst estimates vary depending on economic conditions and regulatory changes.

Recent Initiatives: Recent initiatives include infrastructure upgrades, acquisitions of smaller water systems, and investments in new technologies.

Artesian Resources is a stable water utility with a strong position in Delaware. Its consistent dividend payments and essential service provision make it an attractive investment for risk-averse investors. The company should look to expand beyond its core market and manage increasing regulatory pressures. Key strengths include its established infrastructure and regulatory expertise, while weaknesses include geographic concentration and capital intensity.

Data Sources:

• Artesian Resources Corporation Investor Relations
• SEC Filings (10-K, 10-Q)
• Financial News Outlets (Yahoo Finance, Google Finance)
• Company Website

Disclaimers:

This analysis is for informational purposes only and should not be considered investment advice. Market data is subject to change. Market share percentages are estimates that are gathered from research reports and third-party resources and are not exact measurements that were given by the company. Due Diligence is advised before making any investment decisions.