Water Companies May Benefit Most Post-West Virginia Spill

American Water Works Co. may be among the companies that most benefit from regulatory and industry changes after the chemical spill on West Virginia’s Elk River, according to Brean Capital analyst Michael Gaugler.

“We see the potential for swift, decisive industry and regulatory action in the U.S. water industry,” Gaugler wrote today in a note to clients. He cited infrastructure and related upgrades following natural gas distribution line explosions in the U.S., when companies “suddenly became very focused on getting the oldest pipe out of the ground.”