Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 21

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 21
---
 or a combination thereof, may have a material adverse effect on our financial condition and results of operations.

An element of our growth strategy is the acquisition
of water and wastewater assets, operations, contracts or companies. Any pending or future acquisitions we decide to undertake will involve
risks.

The acquisition and/or operation of additional
water and wastewater systems is an element of our growth strategy. This strategy depends on identifying suitable opportunities that meet
our risk and reward profile and reaching mutually agreeable terms with acquisition candidates or contract parties. Acquisitions may result
in dilution in the value of our equity securities, incurrence of debt and contingent liabilities and fluctuations in financial results.
In addition, identifying suitable opportunities, negotiating terms, and integrating operations may require management attention without
any assurance of achieving a projected outcome. Even if an acquisition is successfully consummated, or we enter into an agreement to operate
additional water or wastewater systems, the assets, operations, contracts or companies we acquire may not achieve the projected revenues
and profitability.

Our ability to achieve organic customer growth in our market area
is dependent on the residential building market. New housing starts and home sale closings are one element that impacts our rate of growth
and therefore, may not meet our expectations.

We expect our revenues to increase from customer
growth for our regulated water operations as a result of anticipated construction, sale and close of new housing units. If housing starts
decline, or do not increase as we have projected, or home sales closing cycle times increase as a result of economic conditions or otherwise,
the timing and extent of our organic revenue growth may not meet our expectations, our deferred project costs may not produce revenue-generating
projects in the timeframes anticipated and our financial results could be negatively impacted.

There can be no assurance we will continue to pay dividends in the
future or, if dividends are paid, that they will be in amounts similar to past dividends.

We have paid dividends on our common stock each
year since 1912 and have increased the amount of dividends paid each year since 1973. Our earnings, financial condition, capital requirements,
applicable regulations and other factors, including the timeliness and adequacy of rate increases, will determine both our ability to
pay dividends and the amount of those dividends. There can be no assurance we will continue to pay dividends in the future or, if dividends
are paid, that they will be in amounts similar to past dividends.

If we are unable to pay the principal and interest
on our indebtedness as it