Artesian Resources Corp (ARTNA) is a regulated water and wastewater utility serving Delaware, Maryland, and Pennsylvania. Under a liquidation lens, recovery to equity is deeply negative, consistent with the MFFAIS-reported CLV of approximately negative $206 million and LLV of approximately negative $193 million. The asset base is dominated by utility plant: PublicUtilitiesPropertyPlantAndEquipmentNet of $812.3 million (gross), with accumulated depreciation of $205.6 million, yielding a net carrying value of approximately $812.3 million after the depreciation offset as reported. Under a 50-70% haircut, the recoverable value from utility PP&E is roughly $406-$569 million before considering contributions in aid of construction (CIAC of $322.4 million, which reduces the rate base but does not reduce the physical asset). The liability stack is substantial: long-term debt carrying value of $185.9 million (Q1 2026, up from $176.4 million at December 31, 2025 — a $9.5 million increase driven by a $10.0 million promissory note issuance to CoBank for Artesian Water Maryland in March 2026). Deferred income tax liabilities are $55.0 million. Regulatory liabilities total $26.0 million, principally excess accumulated deferred income taxes from TCJA remeasurement ($25.9 million) — these stay at face value in liquidation. Total stockholders' equity reported is $252.8 million, but under liquidation haircuts, regulatory assets ($12.3 million) and goodwill ($1.9 million reported as a regulatory asset amortizing over 50 years) recover at zero. The $2.6 million MDL settlement long-term receivable (Level 3, amortized cost) has uncertain recovery in a distressed wind-down. The operating lease structure carries a 68-year weighted average remaining term and total undiscounted payments of $1.46 million — liability stays at face value ($414 thousand present value). The CoBank held-to-maturity investment ($7.4 million, up from $6.9 million at year-end) is tied to First Mortgage Bond agreements and would likely be returned on debt repayment, providing near-par recovery. No pension obligation is disclosed in this 10-Q XBRL. A $3.4 million third-party construction dispute (Metra Industries) is unresolved with loss not estimable — contingent liability not in the XBRL stack. Capital expenditure run rate is $13.1 million for Q1 2026 versus $10.4 million in Q1 2025, reflecting accelerating investment that deepens the asset-liability asymmetry. Period-over-period, the primary balance sheet movement is the incremental long-term debt draw, which directly increases the liability stack at face value while the corresponding PP&E investment receives a 50-70% recovery haircut — a structural value-diluting dynamic for equity in liquidation.
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