Acquisitions |
9 Months Ended |
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Sep. 30, 2026 | |
| Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] | |
| Acquisitions | Acquisitions Quadvest acquisition On July 7, 2025, the Company, and its indirect subsidiary, TWC, entered into an asset purchase agreement (the “Regulated Business APA”) with Quadvest, L.P. (“Quadvest Retail”), pursuant to which, and subject to the terms and conditions set forth therein, Quadvest Retail agreed to sell, and TWC agreed to acquire, substantially all of the assets of Quadvest Retail’s regulated water and wastewater utility operations for a base price of $483.6 million, subject to certain post-closing adjustments. Concurrently, on July 7, 2025, the Company and its indirect subsidiaries, TWOS and TWC (together with the Company and TWOS, the “Purchasers”), entered into another asset purchase agreement (the “Wholesale Business APA”) with Quadvest Wholesale, LLC (“Quadvest Wholesale”) pursuant to which, TWOS agreed to acquire substantially all of the assets of Quadvest Wholesale’s wholesale water and wastewater operations for a base amount of $56.4 million, subject to certain post-closing adjustments. On July 9, 2025, TWC filed a request with the Public Utility Commission of Texas (the “PUCT”) to use Fair Market Value (“FMV”) to support its acquisition of Quadvest Retail. On August 7, 2025, the PUCT appointed three appraisers to determine the FMV. In December 2025, TWC received the appraised FMV from the PUCT-appointed appraisers for the assets of Quadvest Retail. In accordance with Texas’ FMV statute, the purchase price of $483.6 million will serve as the ratemaking rate base. On October 1, 2026, the Company completed the acquisitions of substantially all of the assets of Quadvest Retail’s regulated water and wastewater utility operations and substantially all of the assets of Quadvest Wholesale’s wholesale water and wastewater operations (collectively, the “Quadvest Acquisitions”). The aggregate cash consideration transferred at closing was approximately $542.7 million, consisting of $480.9 million related to Quadvest L.P. and $61.8 million related to Quadvest Wholesale LLC. The acquisitions expanded the Company's regulated and wholesale water and wastewater utility operations within the greater Houston metropolitan area and are expected to provide opportunities for long-term customer growth, operational efficiencies, and geographic expansion within Texas. The Company determined that both acquisitions represent business combinations under ASC 805, Business Combinations, as the acquired assets include inputs and substantive processes capable of generating outputs. Certain disclosures required by ASC 805 related to these acquisitions have been omitted because the information necessary to complete the required disclosure is not yet available due to the timing of the acquisitions relative to the issuance of these financial statements.
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