New Jersey Resources Reports Fiscal 2024 First-Quarter Results; Increases Net Financial Earnings Guidance for Fiscal 2024
- Consolidated net income of $89.4 million for the first quarter of fiscal 2024
- NFE decreased to $72.4 million, or $0.74 per share, compared to $110.3 million, or $1.14 per share, in the first quarter of fiscal 2023
- NJR increased its fiscal 2024 net financial earnings per share (NFEPS) guidance range to $2.85 to $3.00
- Decrease in net financial earnings compared to the first quarter of fiscal 2023
Insights
The reported increase in the net financial earnings per share (NFEPS) guidance by New Jersey Resources Corporation (NJR) is a significant indicator for investors, as it reflects the company's confidence in its financial performance. The adjustment from $2.70-$2.85 to $2.85-$3.00 suggests a positive outlook, potentially influenced by the energy services sector's strong performance and natural gas price volatility. It is crucial to assess how this revised guidance aligns with the company's historical performance and industry benchmarks. The long-term NFEPS growth rate of 7-9% remains unchanged, providing a stable outlook for future earnings growth.
For shareholders, the short-term benefits may include an increase in share value due to the anticipated higher earnings. However, it is essential to consider the volatility in energy prices and to monitor how NJR manages this aspect of their business. The rate case filed with the New Jersey Board of Public Utilities seeking an increase in delivery rates could impact customer bills and, consequently, the company's public perception and long-term revenue.
The performance of NJR's Energy Services segment is particularly noteworthy, as it demonstrates the company's ability to capitalize on natural gas price volatility. This adaptability is key in the energy sector, where prices can fluctuate significantly due to various geopolitical and market factors. Investors should note the effectiveness of NJR's hedging strategies, which appear to have contributed positively to their financial outcomes.
It is also important to highlight the proposed SAVEGREEN™ energy-efficiency offerings. Such investments in energy efficiency can lead to long-term cost savings and improved sustainability, potentially enhancing the company's reputation and market position in the face of increasing demand for green energy solutions. The impact of these initiatives on operating costs and regulatory relationships will be vital to monitor.
The rate case filed with the New Jersey Board of Public Utilities (BPU) is a critical regulatory milestone for NJR. If approved, the $222.6 million increase in delivery rates could substantially affect NJR's revenue streams and profitability. However, the rate case process is subject to public and regulatory scrutiny, which can lead to outcomes different from the company's request.
The proposed SAVEGREEN™ offerings, totaling $482.4 million, indicate NJR's commitment to energy-efficiency and clean energy ventures. Such initiatives may be favorably viewed by regulators and can potentially lead to incentives or support from government energy efficiency programs. Nevertheless, the success of these offerings will depend on customer adoption rates and the effectiveness of the programs in achieving energy savings.
Maintains its Long-term Projected Growth Rate
-
Consolidated net income of
$89.4 million $115.9 million -
Consolidated net financial earnings (NFE), a non-GAAP financial measure, of
$72.4 million $0.74 $110.3 million $1.14 -
Increases fiscal 2024 net financial earnings per share (NFEPS) guidance range to
$2.85 $3.00 $2.70 $2.85 $0.15 -
New Jersey Natural Gas (NJNG) filed a rate case with the
New Jersey Board of Public Utilities (BPU), seeking a$222.6 million -
NJNG filed with the BPU a proposed next generation of SAVEGREEN™ energy-efficiency offerings totaling
$482.4 million
First-quarter fiscal 2024 net income totaled
Management Commentary
Steve Westhoven, President and CEO of New Jersey Resources, stated, "Our results for the first quarter were consistent with our expectations. Additionally, our performance in the beginning of our fiscal second quarter has exceeded our original projections, as Energy Services benefited from natural gas price volatility. As a result, we are raising our fiscal 2024 NFEPS guidance range by
Key Performance Metrics
|
Three Months Ended |
|||||
|
December 31, |
|||||
($ in Thousands) |
2023 |
|
2022 |
|||
Net income |
$ |
89,411 |
|
$ |
115,921 |
|
Basic EPS |
$ |
0.91 |
|
$ |
1.20 |
|
Net financial earnings |
$ |
72,444 |
|
$ |
110,284 |
|
Basic net financial earnings per share |
$ |
0.74 |
|
$ |
1.14 |
|
(1) NFEPS long-term annual growth projections are based on the midpoint of the
A reconciliation of net income to NFE for the three months ended December 31, 2023 and 2022, is provided below.
|
Three Months Ended |
|||||||
|
December 31, |
|||||||
(Thousands) |
|
2023 |
|
|
|
2022 |
|
|
Net income |
$ |
89,411 |
|
|
$ |
115,921 |
|
|
Add: |
|
|
|
|||||
Unrealized gain on derivative instruments and related transactions |
|
(5,400 |
) |
|
|
(31,503 |
) |
|
Tax effect |
|
1,282 |
|
|
|
7,487 |
|
|
Effects of economic hedging related to natural gas inventory |
|
(16,228 |
) |
|
|
23,972 |
|
|
Tax effect |
|
3,857 |
|
|
|
(5,697 |
) |
|
NFE tax adjustment |
|
(478 |
) |
|
|
104 |
|
|
Net financial earnings |
$ |
72,444 |
|
|
$ |
110,284 |
|
|
|
|
|
|
|||||
Weighted Average Shares Outstanding |
|
|
|
|||||
Basic |
|
97,869 |
|
|
|
96,485 |
|
|
Diluted |
|
98,563 |
|
|
|
97,083 |
|
|
|
|
|
|
|||||
Basic earnings per share |
$ |
0.91 |
|
|
$ |
1.20 |
|
|
Add: |
|
|
|
|||||
Unrealized gain on derivative instruments and related transactions |
|
(0.05 |
) |
|
|
(0.33 |
) |
|
Tax effect |
|
0.01 |
|
|
|
0.08 |
|
|
Effects of economic hedging related to natural gas inventory |
|
(0.17 |
) |
|
|
0.25 |
|
|
Tax effect |
|
0.04 |
|
|
|
(0.06 |
) |
|
Basic net financial earnings per share |
$ |
0.74 |
|
|
$ |
1.14 |
|
|
NFE is a measure of earnings based on the elimination of timing differences to effectively match the earnings effects of the economic hedges with the physical sale of natural gas, Solar Renewable Energy Certificates (SRECs) and foreign currency contracts. Consequently, to reconcile net income and NFE, current-period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item. Realized derivative gains and losses are also included in current-period net income. However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the derivatives with realized margins on physical natural gas flows. NFE also excludes certain transactions associated with equity method investments, including impairment charges, which are non-cash charges, and return of capital in excess of the carrying value of our investment. These are not indicative of the Company's performance for its ongoing operations. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE.
A table detailing NFE for the three months ended December 31, 2023 and 2022, is provided below.
Net financial earnings (loss) by business unit
|
Three Months Ended |
|||||||
|
December 31, |
|||||||
(Thousands) |
|
2023 |
|
|
|
2022 |
|
|
New Jersey Natural Gas |
$ |
51,444 |
|
|
$ |
54,664 |
|
|
Clean Energy Ventures |
|
10,522 |
|
|
|
(3,582 |
) |
|
Storage and Transportation |
|
3,640 |
|
|
|
6,243 |
|
|
Energy Services |
|
7,831 |
|
|
|
52,533 |
|
|
Home Services and Other |
|
(600 |
) |
|
|
(29 |
) |
|
Subtotal |
|
72,837 |
|
|
|
109,829 |
|
|
Eliminations |
|
(393 |
) |
|
|
455 |
|
|
Total |
$ |
72,444 |
|
|
$ |
110,284 |
|
|
Fiscal 2024 NFE Guidance:
NJR is raising its fiscal 2024 NFEPS guidance range by
In fiscal 2024, NJR expects Energy Services will represent a higher percentage of NFEPS than in prior years due to contributions from the Asset Management Agreements signed in 2020. The following chart represents NJR’s current expected contributions from its business segments for fiscal 2024:
Company |
Expected Fiscal 2024 Net Financial Earnings Contribution |
New Jersey Natural Gas |
40 to 45 percent |
Clean Energy Ventures |
12 to 17 percent |
Storage and Transportation |
3 to 7 percent |
Energy Services |
38 to 43 percent |
Home Services and Other |
0 to 1 percent |
In providing fiscal 2024 NFE guidance, management is aware there could be differences between reported GAAP earnings and NFE due to matters such as, but not limited to, the positions of our energy-related derivatives. Management is not able to reasonably estimate the aggregate impact or significance of these items on reported earnings and, therefore, is not able to provide a reconciliation to the corresponding GAAP equivalent for its operating earnings guidance without unreasonable efforts.
New Jersey Natural Gas (NJNG)
NJNG reported first-quarter fiscal 2024 NFE of
Customer Growth:
-
NJNG added 2,129 new customers during the first quarter of fiscal 2024, compared with 2,132 in the first quarter of fiscal 2023. NJNG expects these new customers to contribute approximately
$1.9 million
Base Rate Filing:
-
On January 31, 2024, NJNG filed a base rate case with the BPU, seeking a
$222.6 million
Infrastructure Update:
-
NJNG's Infrastructure Investment Program (IIP) is a five-year,
$150 million $7.3 million $28.2 million $3.2 million
Basic Gas Supply Service (BGSS) Incentive Programs:
BGSS incentive programs contributed
For more information on utility gross margin, please see "Non-GAAP Financial Information" below.
Energy-Efficiency Programs:
SAVEGREEN™ invested
-
On December 1, 2023, NJNG filed the proposed next generation of SAVEGREEN™ energy-efficiency offerings with the BPU. The
$482.4 million
Clean Energy Ventures (CEV)
CEV reported first-quarter fiscal 2024 NFE of
Solar Investment Update:
-
As of December 31, 2023, CEV had approximately 473MW of solar capacity (including residential) in service in
New Jersey ,New York ,Connecticut ,Rhode Island ,Indiana , andMichigan .
Storage and Transportation
Storage and Transportation reported first-quarter fiscal 2024 NFE of
Energy Services
Energy Services reported first-quarter fiscal 2024 NFE of
Home Services and Other Operations
Home Services and Other Operations reported a first-quarter fiscal 2024 net financial loss of
Capital Expenditures and Cash Flows:
NJR is committed to maintaining a strong financial profile:
-
During the first quarter of fiscal 2024, capital expenditures were
$118.1 million $137.0 million
-
During the first quarter of fiscal 2024, cash flows from operations were
$46.4 million $(88.9) million
Forward-Looking Statements:
This earnings release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. NJR cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJR’s ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants. Words such as “anticipates,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “believes,” “should” and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management’s current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon NJR. There can be no assurance that future developments will be in accordance with management’s expectations, assumptions and beliefs or that the effect of future developments on NJR will be those anticipated by management. Forward-looking statements in this earnings release include, but are not limited to, certain statements regarding NJR’s NFEPS guidance for fiscal 2024, projected NFEPS growth rates and our guidance range, NFEPS Contributions, forecasted contribution of business segments to NJR’s NFE for fiscal 2024, customer growth at NJNG and their expected contributions, expected contributions from Asset Management Agreements, infrastructure programs and investments, future decarbonization opportunities including IIP, Energy efficiency programs, including BGSS, the outcome or timing of our Base Rate Case with the BPU, and other legal and regulatory expectations.
Additional information and factors that could cause actual results to differ materially from NJR’s expectations are contained in NJR’s filings with the SEC, including NJR’s Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC’s web site, http://www.sec.gov. Information included in this earnings release is representative as of today only and while NJR periodically reassesses material trends and uncertainties affecting NJR's results of operations and financial condition in connection with its preparation of management's discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, NJR does not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.
Non-GAAP Financial Information:
This earnings release includes the non-GAAP financial measures NFE/net financial loss, NFE per basic share, financial margin and utility gross margin. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. As an indicator of NJR’s operating performance, these measures should not be considered an alternative to, or more meaningful than, net income or operating revenues as determined in accordance with GAAP. This information has been provided pursuant to the requirements of SEC Regulation G.
NFE and financial margin exclude unrealized gains or losses on derivative instruments related to NJR’s unregulated subsidiaries and certain realized gains and losses on derivative instruments related to natural gas that has been placed into storage at Energy Services, net of applicable tax adjustments as described below. Financial margin also differs from gross margin as defined on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization as well as the effects of derivatives as discussed above. Volatility associated with the change in value of these financial instruments and physical commodity reported on the income statement in the current period. In order to manage its business, NJR views its results without the impacts of the unrealized gains and losses, and certain realized gains and losses, caused by changes in value of these financial instruments and physical commodity contracts prior to the completion of the planned transaction because it shows changes in value currently instead of when the planned transaction ultimately is settled. An annual estimated effective tax rate is calculated for NFE purposes and any necessary quarterly tax adjustment is applied to NJR Energy Services Company.
NJNG’s utility gross margin is defined as operating revenues less natural gas purchases, sales tax, and regulatory rider expense. This measure differs from gross margin as presented on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization. Utility gross margin may also not be comparable to the definition of gross margin used by others in the natural gas distribution business and other industries. Management believes that utility gross margin provides a meaningful basis for evaluating utility operations since natural gas costs, sales tax and regulatory rider expenses are included in operating revenues and passed through to customers and, therefore, have no effect on utility gross margin.
Management uses these non-GAAP financial measures as supplemental measures to other GAAP results to provide a more complete understanding of NJR’s performance. Management believes these non-GAAP financial measures are more reflective of NJR’s business model, provide transparency to investors and enable period-to-period comparability of financial performance. A reconciliation of all non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. For a full discussion of NJR’s non-GAAP financial measures, please see NJR’s most recent Report on Form 10-K, Item 7.
About New Jersey Resources
New Jersey Resources (NYSE: NJR) is a Fortune 1000 company that, through its subsidiaries, provides safe and reliable natural gas and clean energy services, including transportation, distribution, asset management and home services. NJR is composed of five primary businesses:
-
New Jersey Natural Gas, NJR’s principal subsidiary, operates and maintains natural gas transportation and distribution infrastructure to serve approximately 579,600 customers in New Jersey’s
Monmouth ,Ocean ,Morris ,Middlesex ,Sussex andBurlington counties. - Clean Energy Ventures invests in, owns and operates solar projects with a total capacity of approximately 473 megawatts, providing residential and commercial customers with low-carbon solutions.
-
Energy Services manages a diversified portfolio of natural gas transportation and storage assets and provides physical natural gas services and customized energy solutions to its customers across
North America . -
Storage and Transportation serves customers from local distributors and producers to electric generators and wholesale marketers through its ownership of Leaf River and the Adelphia Gateway Pipeline, as well as our
50% equity ownership in the Steckman Ridge natural gas storage facility. -
Home Services provides service contracts as well as heating, central air conditioning, water heaters, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout
New Jersey .
NJR and its over 1,300 employees are committed to helping customers save energy and money by promoting conservation and encouraging efficiency through Conserve to Preserve® and initiatives such as The SAVEGREEN Project® and The Sunlight Advantage®.
For more information about NJR: www.njresources.com.
Follow us on X.com (Twitter) @NJNaturalGas.
“Like” us on facebook.com/NewJerseyNaturalGas.
NEW JERSEY RESOURCES |
||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||
(Unaudited) |
||||||
|
|
|
|
|
||
|
|
Three Months Ended |
||||
|
|
December 31, |
||||
(Thousands, except per share data) |
|
2023 |
|
2022 |
||
OPERATING REVENUES |
|
|
|
|
||
Utility |
|
$ |
293,093 |
|
$ |
357,409 |
Nonutility |
|
|
174,117 |
|
|
366,158 |
Total operating revenues |
|
|
467,210 |
|
|
723,567 |
OPERATING EXPENSES |
|
|
|
|
||
Gas purchases |
|
|
|
|
||
Utility |
|
|
116,120 |
|
|
182,446 |
Nonutility |
|
|
59,477 |
|
|
232,070 |
Related parties |
|
|
1,879 |
|
|
1,827 |
Operation and maintenance |
|
|
94,439 |
|
|
79,501 |
Regulatory rider expenses |
|
|
19,189 |
|
|
18,251 |
Depreciation and amortization |
|
|
40,287 |
|
|
36,683 |
Total operating expenses |
|
|
331,391 |
|
|
550,778 |
OPERATING INCOME |
|
|
135,819 |
|
|
172,789 |
Other income, net |
|
|
6,341 |
|
|
4,655 |
Interest expense, net of capitalized interest |
|
|
31,473 |
|
|
29,491 |
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES |
|
|
110,687 |
|
|
147,953 |
Income tax provision |
|
|
22,936 |
|
|
32,978 |
Equity in earnings of affiliates |
|
|
1,660 |
|
|
946 |
NET INCOME |
|
$ |
89,411 |
|
$ |
115,921 |
|
|
|
|
|
||
EARNINGS PER COMMON SHARE |
|
|
|
|
||
Basic |
|
$ |
0.91 |
|
$ |
1.20 |
Diluted |
|
$ |
0.91 |
|
$ |
1.19 |
|
|
|
|
|
||
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
|
|
||
Basic |
|
|
97,869 |
|
|
96,485 |
Diluted |
|
|
98,563 |
|
|
97,083 |
|
|
|
|
|
||
RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES |
||||||||
(Unaudited) |
||||||||
|
|
Three Months Ended |
||||||
|
|
December 31, |
||||||
(Thousands) |
|
|
2023 |
|
|
|
2022 |
|
NEW JERSEY RESOURCES |
|
|
|
|||||
|
||||||||
A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows: |
||||||||
|
|
|
|
|
||||
Net income |
|
$ |
89,411 |
|
|
$ |
115,921 |
|
Add: |
|
|
|
|
||||
Unrealized gain on derivative instruments and related transactions |
|
|
(5,400 |
) |
|
|
(31,503 |
) |
Tax effect |
|
|
1,282 |
|
|
|
7,487 |
|
Effects of economic hedging related to natural gas inventory |
|
|
(16,228 |
) |
|
|
23,972 |
|
Tax effect |
|
|
3,857 |
|
|
|
(5,697 |
) |
NFE tax adjustment |
|
|
(478 |
) |
|
|
104 |
|
Net financial earnings |
|
$ |
72,444 |
|
|
$ |
110,284 |
|
|
|
|
|
|
||||
Weighted Average Shares Outstanding |
|
|
|
|
||||
Basic |
|
|
97,869 |
|
|
|
96,485 |
|
Diluted |
|
|
98,563 |
|
|
|
97,083 |
|
|
|
|
|
|
||||
A reconciliation of basic earnings per share, the closest GAAP financial measure, to basic net financial earnings per share is as follows: |
||||||||
|
|
|
|
|
||||
Basic earnings per share |
|
$ |
0.91 |
|
|
$ |
1.20 |
|
Add: |
|
|
|
|
||||
Unrealized gain on derivative instruments and related transactions |
|
$ |
(0.05 |
) |
|
$ |
(0.33 |
) |
Tax effect |
|
$ |
0.01 |
|
|
$ |
0.08 |
|
Effects of economic hedging related to natural gas inventory |
|
$ |
(0.17 |
) |
|
$ |
0.25 |
|
Tax effect |
|
$ |
0.04 |
|
|
$ |
(0.06 |
) |
Basic net financial earnings per share |
|
$ |
0.74 |
|
|
$ |
1.14 |
|
|
|
|
|
|
||||
NATURAL GAS DISTRIBUTION |
|
|
|
|||||
|
|
|
|
|
||||
A reconciliation of gross margin, the closest GAAP financial measure, to utility gross margin is as follows: |
||||||||
|
|
|
|
|
||||
Operating revenues |
|
$ |
293,430 |
|
|
$ |
357,746 |
|
Less: |
|
|
|
|
||||
Natural gas purchases |
|
|
118,444 |
|
|
|
184,771 |
|
Operating and maintenance (1) |
|
|
26,401 |
|
|
|
26,294 |
|
Regulatory rider expense |
|
|
19,189 |
|
|
|
18,251 |
|
Depreciation and amortization |
|
|
26,917 |
|
|
|
24,890 |
|
Gross margin |
|
|
102,479 |
|
|
|
103,540 |
|
Add: |
|
|
|
|
||||
Operating and maintenance (1) |
|
|
26,401 |
|
|
|
26,294 |
|
Depreciation and amortization |
|
|
26,917 |
|
|
|
24,890 |
|
Utility gross margin |
|
$ |
155,797 |
|
|
$ |
154,724 |
|
(1) Excludes selling, general and administrative expenses of |
||||||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (continued) |
||||||||
(Unaudited) |
||||||||
|
|
Three Months Ended |
||||||
|
|
December 31, |
||||||
(Thousands) |
|
|
2023 |
|
|
|
2022 |
|
ENERGY SERVICES |
|
|
|
|
||||
|
|
|
|
|
||||
A reconciliation of gross margin, the closest GAAP financial measure, to Energy Services' financial margin is as follows: |
||||||||
|
|
|
|
|
||||
Operating revenues |
|
$ |
99,668 |
|
|
$ |
321,782 |
|
Less: |
|
|
|
|
||||
Natural Gas purchases |
|
|
60,166 |
|
|
|
233,287 |
|
Operation and maintenance (1) |
|
|
4,689 |
|
|
|
3,455 |
|
Depreciation and amortization |
|
|
57 |
|
|
|
57 |
|
Gross margin |
|
|
34,756 |
|
|
|
84,983 |
|
Add: |
|
|
|
|
||||
Operation and maintenance (1) |
|
|
4,689 |
|
|
|
3,455 |
|
Depreciation and amortization |
|
|
57 |
|
|
|
57 |
|
Unrealized gain on derivative instruments and related transactions |
|
|
(4,266 |
) |
|
|
(39,886 |
) |
Effects of economic hedging related to natural gas inventory |
|
|
(16,228 |
) |
|
|
23,972 |
|
Financial margin |
|
$ |
19,008 |
|
|
$ |
72,581 |
|
(1) Excludes selling, general and administrative expenses of |
||||||||
|
|
|
|
|
||||
A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows: |
||||||||
|
|
|
|
|
||||
Net income |
|
$ |
23,933 |
|
|
$ |
64,561 |
|
Add: |
|
|
|
|
||||
Unrealized gain on derivative instruments and related transactions |
|
|
(4,266 |
) |
|
|
(39,886 |
) |
Tax effect |
|
|
1,013 |
|
|
|
9,479 |
|
Effects of economic hedging related to natural gas |
|
|
(16,228 |
) |
|
|
23,972 |
|
Tax effect |
|
|
3,857 |
|
|
|
(5,697 |
) |
NFE tax adjustment |
|
|
(478 |
) |
|
|
104 |
|
Net financial earnings |
|
$ |
7,831 |
|
|
$ |
52,533 |
|
|
|
|
|
|
||||
FINANCIAL STATISTICS BY BUSINESS UNIT |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
||||
|
|
Three Months Ended |
||||||
|
|
December 31, |
||||||
(Thousands, except per share data) |
|
|
2023 |
|
|
|
2022 |
|
NEW JERSEY RESOURCES |
|
|
|
|
||||
|
|
|
|
|
||||
Operating Revenues |
|
|
|
|
||||
Natural Gas Distribution |
|
$ |
293,430 |
|
|
$ |
357,746 |
|
Clean Energy Ventures |
|
|
35,295 |
|
|
|
12,792 |
|
Energy Services |
|
|
99,668 |
|
|
|
321,782 |
|
Storage and Transportation |
|
|
23,862 |
|
|
|
26,838 |
|
Home Services and Other |
|
|
14,834 |
|
|
|
14,266 |
|
Sub-total |
|
|
467,089 |
|
|
|
733,424 |
|
Eliminations |
|
|
121 |
|
|
|
(9,857 |
) |
Total |
|
$ |
467,210 |
|
|
$ |
723,567 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
Operating Income (Loss) |
|
|
|
|
||||
Natural Gas Distribution |
|
$ |
74,175 |
|
|
$ |
80,113 |
|
Clean Energy Ventures |
|
|
18,323 |
|
|
|
(321 |
) |
Energy Services |
|
|
34,337 |
|
|
|
87,315 |
|
Storage and Transportation |
|
|
7,324 |
|
|
|
12,617 |
|
Home Services and Other |
|
|
(208 |
) |
|
|
51 |
|
Sub-total |
|
|
133,951 |
|
|
|
179,775 |
|
Eliminations |
|
|
1,868 |
|
|
|
(6,986 |
) |
Total |
|
$ |
135,819 |
|
|
$ |
172,789 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
Equity in Earnings of Affiliates |
|
|
|
|
||||
Storage and Transportation |
|
$ |
993 |
|
|
$ |
909 |
|
Eliminations |
|
|
667 |
|
|
|
37 |
|
Total |
|
$ |
1,660 |
|
|
$ |
946 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
Net Income (Loss) |
|
|
|
|
||||
Natural Gas Distribution |
|
$ |
51,444 |
|
|
$ |
54,664 |
|
Clean Energy Ventures |
|
|
10,522 |
|
|
|
(3,582 |
) |
Energy Services |
|
|
23,933 |
|
|
|
64,561 |
|
Storage and Transportation |
|
|
3,640 |
|
|
|
6,243 |
|
Home Services and Other |
|
|
(600 |
) |
|
|
(29 |
) |
Sub-total |
|
|
88,939 |
|
|
|
121,857 |
|
Eliminations |
|
|
472 |
|
|
|
(5,936 |
) |
Total |
|
$ |
89,411 |
|
|
$ |
115,921 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
Net Financial Earnings (Loss) |
|
|
|
|
||||
Natural Gas Distribution |
|
$ |
51,444 |
|
|
$ |
54,664 |
|
Clean Energy Ventures |
|
|
10,522 |
|
|
|
(3,582 |
) |
Energy Services |
|
|
7,831 |
|
|
|
52,533 |
|
Storage and Transportation |
|
|
3,640 |
|
|
|
6,243 |
|
Home Services and Other |
|
|
(600 |
) |
|
|
(29 |
) |
Sub-total |
|
|
72,837 |
|
|
|
109,829 |
|
Eliminations |
|
|
(393 |
) |
|
|
455 |
|
Total |
|
$ |
72,444 |
|
|
$ |
110,284 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
Throughput (Bcf) |
|
|
|
|
||||
NJNG, Core Customers |
|
|
23.4 |
|
|
|
25.0 |
|
NJNG, Off System/Capacity Management |
|
|
27.2 |
|
|
|
17.9 |
|
Energy Services Fuel Mgmt. and Wholesale Sales |
|
|
30.1 |
|
|
|
44.2 |
|
Total |
|
|
80.7 |
|
|
|
87.1 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
Common Stock Data |
|
|
|
|
||||
Yield at December 31, |
|
|
3.8 |
% |
|
|
3.1 |
% |
Market Price at December 31, |
|
$ |
44.58 |
|
|
$ |
49.62 |
|
Shares Out. at December 31, |
|
|
98,202 |
|
|
|
96,803 |
|
Market Cap. at December 31, |
|
$ |
4,377,857 |
|
|
$ |
4,803,389 |
|
|
|
|
|
|
||||
|
Three Months Ended |
|||||||
(Unaudited) |
December 31, |
|||||||
(Thousands, except customer and weather data) |
|
2023 |
|
|
|
2022 |
|
|
NATURAL GAS DISTRIBUTION |
|
|
||||||
|
|
|
||||||
Utility Gross Margin |
|
|
||||||
Operating revenues |
$ |
293,430 |
|
$ |
357,746 |
|
||
Less: |
|
|
||||||
Natural gas purchases |
|
118,444 |
|
|
184,771 |
|
||
Operating and maintenance (1) |
|
26,401 |
|
|
26,294 |
|
||
Regulatory rider expense |
|
19,189 |
|
|
18,251 |
|
||
Depreciation and amortization |
|
26,917 |
|
|
24,890 |
|
||
Gross margin |
|
102,479 |
|
|
103,540 |
|
||
Add: |
|
|
||||||
Operating and maintenance (1) |
|
26,401 |
|
|
26,294 |
|
||
Depreciation and amortization |
|
26,917 |
|
|
24,890 |
|
||
Total Utility Gross Margin |
$ |
155,797 |
|
$ |
154,724 |
|
||
(1) Excludes selling, general and administrative expenses of |
||||||||
|
|
|
||||||
Utility Gross Margin, Operating Income and Net Income |
|
|
||||||
Residential |
$ |
108,037 |
|
$ |
104,018 |
|
||
Commercial, Industrial & Other |
|
20,831 |
|
|
20,779 |
|
||
Firm Transportation |
|
20,764 |
|
|
20,480 |
|
||
Total Firm Margin |
|
149,632 |
|
|
145,277 |
|
||
Interruptible |
|
784 |
|
|
761 |
|
||
Total System Margin |
|
150,416 |
|
|
146,038 |
|
||
Off System/Capacity Management/FRM/Storage Incentive |
|
5,381 |
|
|
8,686 |
|
||
Total Utility Gross Margin |
|
155,797 |
|
|
154,724 |
|
||
Operation and maintenance expense |
|
54,705 |
|
|
49,721 |
|
||
Depreciation and amortization |
|
26,917 |
|
|
24,890 |
|
||
Operating Income |
$ |
74,175 |
|
$ |
80,113 |
|
||
|
|
|
||||||
Net Income |
$ |
51,444 |
|
$ |
54,664 |
|
||
|
|
|
||||||
Net Financial Earnings |
$ |
51,444 |
|
$ |
54,664 |
|
||
|
|
|
||||||
Throughput (Bcf) |
|
|
||||||
Residential |
|
13.9 |
|
|
14.7 |
|
||
Commercial, Industrial & Other |
|
2.6 |
|
|
2.7 |
|
||
Firm Transportation |
|
3.6 |
|
|
4.0 |
|
||
Total Firm Throughput |
|
20.1 |
|
|
21.4 |
|
||
Interruptible |
|
3.3 |
|
|
3.6 |
|
||
Total System Throughput |
|
23.4 |
|
|
25.0 |
|
||
Off System/Capacity Management |
|
27.2 |
|
|
17.9 |
|
||
Total Throughput |
|
50.6 |
|
|
42.9 |
|
||
|
|
|
||||||
Customers |
|
|
||||||
Residential |
|
523,623 |
|
|
514,452 |
|
||
Commercial, Industrial & Other |
|
32,872 |
|
|
32,302 |
|
||
Firm Transportation |
|
22,989 |
|
|
25,628 |
|
||
Total Firm Customers |
|
579,484 |
|
|
572,382 |
|
||
Interruptible |
|
83 |
|
|
88 |
|
||
Total System Customers |
|
579,567 |
|
|
572,470 |
|
||
Off System/Capacity Management* |
|
33 |
|
|
30 |
|
||
Total Customers |
|
579,600 |
|
|
572,500 |
|
||
*The number of customers represents those active during the last month of the period. |
||||||||
Degree Days |
|
|
||||||
Actual |
|
1,408 |
|
|
1,543 |
|
||
Normal |
|
1,534 |
|
|
1,547 |
|
||
Percent of Normal |
|
91.8 |
% |
|
99.7 |
% |
||
|
|
|
||||||
|
Three Months Ended |
|||||||
(Unaudited) |
December 31, |
|||||||
(Thousands, except customer, RECs and megawatt) |
|
2023 |
|
|
|
2022 |
|
|
CLEAN ENERGY VENTURES |
|
|
||||||
|
|
|
||||||
Operating Revenues |
|
|
||||||
SREC sales |
$ |
25,931 |
|
$ |
3,886 |
|
||
TREC sales |
|
2,403 |
|
|
1,202 |
|
||
SREC II sales (1) |
|
247 |
|
|
185 |
|
||
Solar electricity sales |
|
3,654 |
|
|
4,582 |
|
||
Sunlight Advantage |
|
3,060 |
|
|
2,937 |
|
||
Total Operating Revenues |
$ |
35,295 |
|
$ |
12,792 |
|
||
Depreciation and Amortization |
$ |
6,922 |
|
$ |
5,576 |
|
||
|
|
|
||||||
Operating Income (Loss) |
$ |
18,323 |
|
$ |
(321 |
) |
||
|
|
|
||||||
Income Tax Provision (Benefit) |
$ |
3,131 |
|
$ |
(1,837 |
) |
||
|
|
|
||||||
Net Income (Loss) |
$ |
10,522 |
|
$ |
(3,582 |
) |
||
|
|
|
||||||
Net Financial Earnings (Loss) |
$ |
10,522 |
|
$ |
(3,582 |
) |
||
|
|
|
||||||
Solar Renewable Energy Certificates Generated |
|
93,570 |
|
|
98,462 |
|
||
|
|
|
||||||
Solar Renewable Energy Certificates Sold |
|
122,439 |
|
|
16,812 |
|
||
|
|
|
||||||
Transition Renewable Energy Certificates Generated |
|
16,705 |
|
|
8,345 |
|
||
|
|
|
||||||
Solar Renewable Energy Certificates II Generated |
|
2,773 |
|
|
1,784 |
|
||
|
|
|
||||||
Solar Megawatts Under Construction |
|
34.3 |
|
|
45.5 |
|
||
(1) Prior year SREC II revenue was previously included in Solar electricity sales and other |
||||||||
|
|
|
||||||
ENERGY SERVICES |
|
|
||||||
|
|
|
||||||
Operating Income |
|
|
||||||
Operating revenues |
$ |
99,668 |
|
$ |
321,782 |
|
||
Less: |
|
|
||||||
Gas purchases |
|
60,166 |
|
|
233,287 |
|
||
Operation and maintenance expense |
|
5,108 |
|
|
1,123 |
|
||
Depreciation and amortization |
|
57 |
|
|
57 |
|
||
Operating Income |
$ |
34,337 |
|
$ |
87,315 |
|
||
|
|
|
||||||
Net Income |
$ |
23,933 |
|
$ |
64,561 |
|
||
|
|
|
||||||
Financial Margin |
$ |
19,008 |
|
$ |
72,581 |
|
||
|
|
|
||||||
Net Financial Earnings |
$ |
7,831 |
|
$ |
52,533 |
|
||
|
|
|
||||||
Gas Sold and Managed (Bcf) |
|
30.1 |
|
|
44.2 |
|
||
|
|
|
||||||
STORAGE AND TRANSPORTATION |
|
|
||||||
|
|
|
||||||
Operating Revenues |
$ |
23,862 |
|
$ |
26,838 |
|
||
|
|
|
||||||
Equity in Earnings of Affiliates |
$ |
993 |
|
$ |
909 |
|
||
|
|
|
||||||
Operation and Maintenance Expense |
$ |
10,100 |
|
$ |
7,474 |
|
||
|
|
|
||||||
Other Income, Net |
$ |
2,288 |
|
$ |
1,367 |
|
||
|
|
|
||||||
Interest Expense |
$ |
5,933 |
|
$ |
6,707 |
|
||
|
|
|
||||||
Income Tax Provision |
$ |
1,032 |
|
$ |
1,943 |
|
||
|
|
|
||||||
Net Income |
$ |
3,640 |
|
$ |
6,243 |
|
||
|
|
|
||||||
Net Financial Earnings |
$ |
3,640 |
|
$ |
6,243 |
|
||
|
|
|
||||||
HOME SERVICES AND OTHER |
|
|
||||||
|
|
|
||||||
Operating Revenues |
$ |
14,834 |
|
$ |
14,266 |
|
||
|
|
|
||||||
Operating (Loss) Income |
$ |
(208 |
) |
$ |
51 |
|
||
|
|
|
||||||
Net Loss |
$ |
(600 |
) |
$ |
(29 |
) |
||
|
|
|
||||||
Net Financial Loss |
$ |
(600 |
) |
$ |
(29 |
) |
||
|
|
|
||||||
Total Service Contract Customers at Dec 31 |
|
100,840 |
|
|
102,600 |
|
||
|
|
|
||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240205888920/en/
Media:
Mike Kinney
732-938-1031
mkinney@njresources.com
Investor:
Adam Prior
732-938-1145
aprior@njresources.com
Source: New Jersey Resources Corporation
FAQ
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What was the net financial earnings (NFE) for the first quarter of fiscal 2024?
What was the net financial earnings (NFE) for the first quarter of fiscal 2023?
