Wells says higher Aquarion sale proceeds ‘a good outcome’ for Eversource

Wells Fargo notes Eversource (ES) has announced the sale of Aquarion to the newly established Aquarion Water Authority for $2.4B, or 1.7-turns year-end 2024 rate base. Equity proceeds of $1.6B are $0.5B higher than the firm’s assumption. A good outcome for Eversource, Wells adds. The firm expects SJW Group (SJW) shares to react positively as the equity overhang related to the potential acquisition is removed and it demonstrates financial discipline.