ISELIN, N.J. - Middlesex Water Company (NASDAQ:MSEX), which provides water and wastewater services in New Jersey and Delaware, has appointed Gregory Sorensen as its new Vice President and Chief Operating Officer, effective December 16, 2024. The announcement comes as part of the company's strategic succession planning and organizational realignment.
Sorensen, with a substantial background in utility management, joins Middlesex Water from Liberty Utilities, where he served as President of the West Region. In his previous role, he managed operations for water, sewer, and electric services, catering to nearly 200,000 customers in Arizona, California, and Texas, as well as 240,000 customers in Chile. His responsibilities included oversight of operations, engineering, finance, and regulated utility revenue totaling over $400 million.
In his new position at Middlesex Water, Sorensen will report directly to the President and CEO and will oversee the operational performance of the company. His responsibilities will encompass Engineering and Operations, including capital program planning, water and wastewater operations, safety and security management, environmental compliance, and growth initiatives.
Nadine Leslie, President and CEO of Middlesex Water, expressed confidence in Sorensen's leadership abilities and his commitment to service quality and environmental stewardship.
Middlesex Water, established in 1897, serves a population of half a million people and offers a range of services including municipal and industrial contract operations and technical operations and maintenance. The company emphasizes investing in infrastructure, regulatory compliance, and safety to support its employees and enhance customer service.
This leadership change is a forward-looking statement within the Private Securities Litigation Reform Act of 1995, and it is subject to various factors that could significantly impact the company's actual results. These factors include general economic conditions, regulatory changes, the availability and cost of capital, and other considerations detailed in filings with the Securities and Exchange Commission.
The information in this article is based on a press release statement from Middlesex Water Company.
In other recent news, Middlesex Water Company has announced changes to its executive compensation agreements and a 4.62% increase in its quarterly cash dividend to $0.34 per share, continuing its 52-year streak of dividend growth. The company has also entered into new Change in Control Agreements with several top executives, set to take effect from January 1, 2025. These agreements include provisions for severance benefits in the event of employment termination following a change in control of the company.
In addition, Middlesex Water and its President and CEO, Nadine Leslie, have agreed to an amendment to Leslie's current Change in Control Agreement, aligning it with the new terms established for other executives. However, Baird has downgraded Middlesex Water's stock to Neutral from Outperform, following the company's recent quarterly filing that omitted its anticipated capital expenditure outlook.
In terms of personnel changes, the company announced the appointment of Mohammed G. Zerhouni as Senior Vice President, Chief Financial Officer, and Treasurer, succeeding A. Bruce O'Connor following his retirement. Furthermore, Tidewater (NYSE:TDW) Utilities, a subsidiary of Middlesex Water, is prepared to comply with the forthcoming United States Environmental Protection Agency's drinking water standard for specific PFAS compounds. The company has been proactively testing all its 175 wells and has installed ion exchange resin systems for PFAS treatment at four locations. These are recent developments that highlight the company's ongoing operational changes and commitment to compliance with environmental standards.
InvestingPro Insights
As Middlesex Water Company (NASDAQ:MSEX) welcomes Gregory Sorensen to its leadership team, investors may find additional context from recent financial data and expert insights valuable. According to InvestingPro, MSEX boasts a market capitalization of $1.18 billion, reflecting its significant presence in the water utility sector.
The company's commitment to shareholder value is evident in its dividend history. An InvestingPro Tip highlights that MSEX has raised its dividend for 21 consecutive years, demonstrating a strong track record of returning value to investors. This aligns well with the company's long-term stability, having been established in 1897 as mentioned in the article.
MSEX's financial health appears robust, with revenue growth of 10.14% over the last twelve months as of Q3 2023. This growth trajectory supports the company's ability to invest in infrastructure and maintain service quality, which are key focuses mentioned in the article.
However, investors should note that MSEX is trading at a P/E ratio of 28.74, which InvestingPro considers high relative to near-term earnings growth. This valuation metric may be important for investors to consider in light of the company's strategic moves and leadership changes.
For those interested in a deeper analysis, InvestingPro offers 8 additional tips on MSEX, providing a more comprehensive view of the company's financial position and market performance.
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