H2O America Receives Regulatory Approval for Texas Subsidiary’s Cibolo Valley Acquisition

SAN JOSE, Calif. and CANYON LAKE, Texas, Sept. 21, 2026 (GLOBE NEWSWIRE) -- H2O America (NASDAQ: HTO) today announced that its regulated Texas water and wastewater utility, The Texas Water Company, Inc. (“TWC”), has received the regulatory approval needed to complete its acquisition of the Cibolo Valley wastewater treatment plant and associated collection systems from South Central Water Company (“SCW”). The transaction is expected to close on Nov. 1, 2026.

The acquisition more than doubles TWC's wastewater connections within its existing Texas Hill Country footprint and creates opportunities for greater operational efficiency with a customer base already served by TWC’s water service.

“We look forward to adding the Cibolo Valley wastewater treatment plant and associated collection systems to our existing TWC operations as we continue to invest in critical infrastructure across our service footprint serving nearly 90,000 people,” said Aundrea Williams, president, TWC. “Our local teams know these communities and their needs well, and we’re committed to delivering high-quality, reliable water services our customers expect.”

About Texas Water Company
The Texas Water Company has successfully provided high-quality and reliable water and wastewater service to its customers in Texas since 2006 and safeguards public health, promotes environmental stewardship, and delivers sustainable solutions in seven counties. We provide a broad range of solutions to the communities we serve, from management of water and wastewater treatment infrastructure to the design and implementation of water reuse technology, water supply development and more. For more information about The Texas Water Company, please visit www.txwaterco.com.

About H2O America
H2O America is among the largest investor-owned pure-play water and wastewater utilities in the United States, providing life-sustaining and high-quality water service to over 1.6 million people. H2O America’s locally led and operated water utilities – San Jose Water Company in California, The Connecticut Water Company in Connecticut, The Maine Water Company in Maine, and SJWTX, Inc. (dba The Texas Water Company) in Texas – possess the financial strength, operational expertise, and technological innovation to safeguard the environment, deliver outstanding service to customers, and provide opportunities to employees. H2O America remains focused on investing in its operations, remaining actively engaged in its local communities, and delivering continued sustainable value to its stockholders. For more information about H2O America, please visit www.h2o-america.com.

About South Central Water Company
South Central Water Company (dba South Central Wastewater) is a family owned and operated wastewater utility company in Texas. In its 50 years of doing business, South Central has built over 800 wastewater treatment plants all across the state. As Texas continues to see an increase in population, South Central has focused its efforts on providing developers wastewater solutions to land parcels outside of current service areas. South Central has a robust pipeline with wastewater discharge permits that have the capacity to serve over 70,000+ customers and over a dozen new projects that will be breaking ground in the next five years.

Forward Looking Statements
This release contains forward-looking statements within the meaning of the federal securities laws relating to future events and future results of H2O America and its subsidiaries that are based on current expectations, estimates, forecasts, and projections about H2O America and its subsidiaries and the industries in which H2O America and its subsidiaries operate and the beliefs and assumptions of the management of H2O America. Some of these forward-looking statements can be identified by the use of forward-looking words such as “believes,” “expects,” “projects,” “plans,” “estimates,” “anticipates,” “intends,” “seeks,” “plans,” “will,” “may,” “should,” “approximately,” “strategy,” or the negative of those words or other comparable terminology. These forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual results may differ materially and adversely from those expressed or forecasted in any forward-looking statements. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions including, but not limited to, the following factors: (1) the risk that the transaction may not close on the anticipated timeline, or at all; (2) the ability to successfully integrate South Central Water Company’s operations and realize the projected financial and other benefits of the transaction, including the expectation that it will be accretive to H2O America’s long-term EPS growth rate; (4) the continued availability and performance of H2O America’s workforce and leadership teams during and after the transition; (5) the effect of water, utility, environmental and other governmental policies and regulations, including regulatory actions concerning rates, authorized return on equity, authorized capital structures, capital expenditures, per- and polyfluoroalkyl substances and other decisions; (6) changes in demand for water and other services; (7) catastrophic events such as fires, earthquakes, explosions, floods, ice storms, tornadoes, hurricanes, terrorist acts, physical attacks, cyber-attacks, epidemic, or similar occurrences; (8) unanticipated weather conditions and changes in seasonality including those affecting water supply and customer usage; (9) the effect of the impact of climate change; (10) unexpected costs, charges, expenses, delays or operational challenges in scaling infrastructure and expanding service; (11) our ability to successfully evaluate investments in new business and growth initiatives; (12) contamination of our water supplies and damage or failure of our water equipment and infrastructure; (13) the risk of work stoppages, strikes, and other labor-related actions; (14) changes and developments in general economic, political, legislative, business and financial market conditions; and (15) the ability to obtain financing on favorable terms, or at all (including financing for the transaction in a timely manner), which can be affected by various factors, including credit ratings, changes in interest rates, compliance with regulatory requirements, compliance with the terms and conditions of our outstanding indebtedness, and general market and economic conditions.

The risks, uncertainties and other factors may cause the actual results, performance or achievements of H2O America to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

In addition, actual results are subject to these and other risks and uncertainties that relate more broadly to our overall business, including those more fully described in our filings with the SEC, including our most recent reports on Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements are not guarantees of future performance, and speak only as of the date made, and H2O America undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

Texas Water Company Contact:
Brittany Pichler
Communications Supervisor
brittany.pichler@txwaterco.com