California American Water Completes Acquisition of Yerba Buena Water Company

Rhea-AI Summary

California American Water (NYSE:AWK) completed the acquisition of the Yerba Buena Water Company water system on Dec. 9, 2025. The system serves approximately 250 customers and the transaction was approved by the California Public Utilities Commission. California American Water will begin service immediately and will mail new customer and account information in the coming weeks. Customers gain access to the company's online portal MyWater and a dedicated webpage at californiaamwater.com/yerbabuena.

This is the company's ninth acquisition in five years, bringing more than 13,000 new water and/or wastewater customers since 2020.

Positive

• ~250 customers added to customer base
• Ninth acquisition in five years; 13,000+ customers added since 2020
• Acquisition approved by California Public Utilities Commission
• Immediate service transition and access to MyWater online portal

Negative

• None.

Key Figures

Yerba Buena customers approximately 250 customers Customers served by Yerba Buena Water Company system

Acquisitions in 5 years 9 acquisitions California American Water acquisitions over the past five years

New customers since 2020 more than 13,000 customers Water and/or wastewater customers added via nine acquisitions since 2020

Market Reality Check

$128.15 Last Close

Volume Volume 2,173,832 is roughly in line with the 20-day average of 2,259,529 (relative volume 0.96). normal

Technical Shares at $128.15 are trading below the 200-day MA of $140.2 and about 17.6% under the 52-week high.

Peers on Argus

AWK was down 0.24% pre‑news while key regulated utility peers like WTRG (-0.77%), AEE (-0.65%) and ATO (-1.17%) also traded lower, suggesting broader utility softness rather than a company-specific move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 05	Conservation notice	Negative	-0.8%	Statewide mandatory conservation notice after upgraded drought warning in New Jersey.
Dec 05	Dividend declaration	Positive	+0.4%	Quarterly cash dividend of $0.8275 per share with dates for record and payment.
Dec 04	Customer advisory	Neutral	+0.4%	Guidance on preparing pipes for cold weather and promoting conservation tools.
Dec 04	Customer advisory	Neutral	-1.6%	National guidance on avoiding frozen pipes and checking for lead service lines.
Dec 04	Customer advisory	Neutral	-1.6%	Missouri-focused cold weather preparation tips and service line replacement info.

Pattern Detected

Recent news has been dominated by operational/customer updates and a dividend declaration, with mixed but generally modest price reactions and no clear pattern of persistent overreaction.

Recent Company History

Over the past week, AWK issued multiple operational advisories across states plus a dividend declaration. Weather‑related conservation and pipe‑protection notices on Dec 4–5, 2025 saw small moves ranging from about -1.56% to +0.44%. A quarterly dividend announcement on Dec 5, 2025 coincided with a modest positive reaction. Against this backdrop of routine customer communications, today’s California system acquisition extends the company’s steady expansion of its regulated footprint.

Market Pulse Summary

This announcement highlights California American Water’s continued roll‑up of regulated systems, adding the Yerba Buena Water Company’s roughly 250 customers and marking its ninth acquisition in five years, for over 13,000 new connections since 2020. The deal is already approved by the California Public Utilities Commission and focuses on infrastructure investment and customer service integration. Investors may watch how such tuck‑ins feed future rate cases and capital spending efficiency.

AI-generated analysis. Not financial advice.

SAN DIEGO, Calif., Dec. 9, 2025 /PRNewswire/ -- California American Water announced today that it has completed its acquisition of the Yerba Buena Water Company water system. The purchase of the system, which serves approximately 250 customers, was previously approved by the California Public Utilities Commission (CPUC) and reflects California American Water's ongoing commitment to strengthening water infrastructure and enhancing service in communities across the state.

"This agreement is a positive step for our community," said Richard Morris, Chairman of the Board of Directors of Yerba Buena Water Company. "By partnering with California American Water, we're ensuring the expertise and investment needed to maintain and improve our water system for years to come. Our customers will benefit from enhanced service and infrastructure improvements."

California American Water will begin providing water service to Yerba Buena Water Company customers immediately. Residents will receive new customer and account information in the mail within the coming weeks to help facilitate the transition. Yerba Buena Water Company customers will be able to take advantage of California American Water's customer service benefits, including its online account management portal, MyWater. Additional information is also available on a dedicated webpage, Yerba Buena Water, at californiaamwater.com/yerbabuena.

"We're excited to welcome Yerba Buena Water Company customers to California American Water," said Sarah Leeper, President of California American Water. "Our team is committed to help ensure a smooth transition and provide safe, clean and reliable water service as well as high-quality customer care that our customers expect and deserve. We look forward to bringing our experience, expertise and resources to support this community."

This marks California American Water's ninth acquisition in the past five years, adding more than 13,000 new water and/or wastewater customers since 2020.

About American Water 
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water's 6,700 talented professionals leverage their significant expertise and the company's national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders.

For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram. 

About California American Water 
California American Water, a subsidiary of American Water, provides safe, clean, reliable and affordable water and wastewater services to approximately 750,000 people.

View original content to download multimedia:https://www.prnewswire.com/news-releases/california-american-water-completes-acquisition-of-yerba-buena-water-company-302637227.html

SOURCE American Water

FAQ

When did California American Water (AWK) complete the Yerba Buena Water Company acquisition?

The acquisition was completed on December 9, 2025.

How many customers does the Yerba Buena Water Company system serve that AWK acquired?

The acquired system serves approximately 250 customers.

Was the Yerba Buena acquisition approved by regulators for AWK (NYSE:AWK)?

Yes, the purchase was approved by the California Public Utilities Commission.

When will Yerba Buena customers start receiving California American Water service and account details?

California American Water began service immediately and customers will receive new account information by mail within the coming weeks.

What customer benefits will Yerba Buena customers gain from AWK (AWK)?

Customers gain access to AWK's customer service benefits, including the MyWater online account portal and a dedicated Yerba Buena webpage.

How does this acquisition affect California American Water's growth since 2020?

This deal is the company's ninth acquisition in five years, increasing its total by more than 13,000 water and/or wastewater customers since 2020.