Quadvest Fair Market Value Determination Received; On Track for Mid-2026 Close

Rhea-AI Summary

H2O America (NASDAQ: HTO) announced that The Texas Water Company received appraised fair market values from three PUCT-appointed appraisers for Quadvest LP assets.

The purchase price of $483.6 million will serve as the ratemaking rate base under Texas statute. TWC plans to file the Sale-Transfer-Merger application with the PUCT by mid-January 2026 to request approval and certification of the rate base value, and H2O America continues to anticipate closing the Quadvest acquisition by mid-2026.

Positive

• $483.6 million appraised purchase price set as rate base
• Adds regulated water and wastewater assets in Houston metro
• STM application filing targeted for mid-January 2026

Negative

• Closing is subject to PUCT approval and certification
• Transaction timeline depends on regulatory process through mid-2026

Key Figures

Quadvest purchase price $483.6 million Fair market value-based ratemaking rate base for Quadvest LP assets

Market Reality Check

$48.89 Last Close

Volume Volume 216,005 is about half of the 424,091 20-day average, indicating muted pre-news trading. low

Technical Shares at 48.83 are trading below the 200-day MA of 49.78 ahead of the Quadvest update.

Peers on Argus

Peers show mixed moves: ARIS up 1.72%, while MSEX, CWCO, YORW, and ARTNA are down between about 0.67% and 1.13%, suggesting stock-specific dynamics for HTO.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 22	Leadership appointment	Positive	-0.7%	New VP of business development to drive strategic growth and M&A.
Dec 15	Board transition	Neutral	-0.4%	Retirement of chair and CEO assuming chair role for continuity.
Dec 04	ESG recognition	Positive	-1.2%	Named to Newsweek’s responsible companies list with ESG progress.
Nov 19	Regulatory deferral	Negative	-3.3%	Deferral of cost-of-capital filing and continuation of allowed ROE.
Oct 27	Earnings results	Positive	+0.8%	Q3 EPS and revenue growth, guidance update, and capex investment.

Pattern Detected

Recent positive corporate and ESG news often coincided with modest share price declines, while regulatory and earnings updates have shown more mixed but occasionally aligned reactions.

Recent Company History

This announcement builds on several 2025 milestones. In Q3 2025, H2O America reported stronger earnings and reiterated growth guidance, with a modestly positive price reaction. Subsequent news on cost-of-capital deferral, ESG recognition, board leadership transition, and a new VP of business development all carried constructive or neutral tones yet saw small price pullbacks. Today’s Quadvest FMV determination and mid-2026 closing timeline update continue the strategic growth narrative via regulated utility acquisitions.

Market Pulse Summary

This announcement confirms appraised fair market values for Quadvest and sets a purchase price of $483.6 million as the ratemaking rate base, while reiterating plans to file an STM application and target a mid-2026 close. It extends the acquisition narrative highlighted in earlier filings and earnings updates. Investors may watch for regulatory milestones, detailed financing disclosures, and integration updates as key markers of how effectively this transaction supports long-term regulated growth.

Jargon Translator

fair market value

The price a willing buyer and a willing seller would agree on for an asset or security when neither is under pressure and both have access to the same information. Think of it as the market’s neutral estimate of what something is worth, like the price two neighbors would settle on for a car after comparing similar listings. Investors care because fair market value guides buying and selling decisions, tax reporting, portfolio valuation, and how accurately company assets are reflected in financial statements.

AI-generated analysis. Not financial advice.

SAN JOSE, Calif., Dec. 29, 2025 (GLOBE NEWSWIRE) -- H2O America (NASDAQ: HTO) today announced that its regulated Texas water and wastewater utility, The Texas Water Company (TWC), received the appraised fair market values (FMV) from the three Public Utility Commission of Texas (PUCT)-appointed appraisers for the assets of Quadvest LP, a regulated investor-owned water and wastewater utility operating in the Houston metro area. In accordance with Texas’ FMV statute, the purchase price of $483.6 million will serve as the ratemaking rate base.

“We appreciate the hard work of all parties involved during the appraisal process,” said Aundrea Williams, President of TWC. “We believe the FMV determination supports our previously communicated benefits of the transaction.”

TWC plans to file the Sale-Transfer-Merger (STM) application with the PUCT by mid-January to request approval of TWC’s acquisition of the Quadvest LP assets and certification of the value of the rate base.

We continue to anticipate closing the Quadvest acquisition by mid-2026.

Investor Relations:

Jonathan G. Reeder
Senior Director of Treasury & Investor Relations
(475) 414-1034
InvestorRelations@H2O-America.com

Media Relations:

Nazan Riahei
Vice President of Communications
(408) 731-0890
MediaRelations@H2O-America.com

FAQ

What purchase price did H2O America (HTO) receive for Quadvest assets?

The appraised purchase price is $483.6 million, which will serve as the ratemaking rate base.

When will H2O America (HTO) file the STM application with the PUCT for Quadvest?

TWC plans to file the Sale-Transfer-Merger application with the PUCT by mid-January 2026.

When does H2O America (HTO) expect to close the Quadvest acquisition?

The company continues to anticipate closing the Quadvest acquisition by mid-2026.

How will the $483.6 million FMV affect H2O America's (HTO) rate base?

Under Texas statute, the appraised $483.6 million purchase price will serve as the ratemaking rate base.

Which regulator must approve H2O America's (HTO) Quadvest acquisition?

The acquisition requires approval and certification from the Public Utility Commission of Texas (PUCT).