NJR - Earnings call transcript Q3 2018 | New Jersey Resources Corporation

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Operator

Good morning ladies and gentlemen, and welcome to the New Jersey Resources' Third Quarter Fiscal Year 2018 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. At this time, I would like to turn the conference over to Dennis Puma, Director of Investor Relations. sir. ahead go Please

Dennis Puma

recent could include X-K including Vice and earnings as quarter everybody. and fiscal and today the and are our also differ factors joined release by of statements Denise our of that Pat review Jersey Vice contain other materially statements Form statements any Senior found forward-looking with to from beyond listeners webcast. on statement not light statements XX-Q to or our forward-looking today’s Resources' here President other Executive furnished Westhoven, Steve members third our expectations XXXX team. as by call and management control good to in assume and Slide senior found and many section you this can laws. in particular future obligation results of COO, precisely, Welcome Migliaccio, items Certain well cause morning statements CFO, of New I’m wish X. President Thank the conference current estimates and Forms meaning the the of SEC. our do These in as securities referenced forward-looking to We today's ability basis expectations, call our forward-looking which the on any filed be events. to XX-K our forming or beliefs that the within We for caution assumptions revise most call the herein, on estimate

a Net Financial believe NFE. Slide performance. of financial certain will such Turning that more as non-GAAP our understanding We X, financial referring to or complete we to NFE provides be Earnings measures

GAAP. be not a However, substitute to NFE intended for is

Steve? our out that morning. Form are the furnished discussed on to there said, X fully which that and like filed turn Our are point Westhoven, to of this to were With our X-K non-GAAP call like are on item accompanying available slides our XX-K. website discussion, also over I'd also today's financial in Steve I'd measures more

Steve Westhoven

everyone. with quarter Chief Thanks leading Officer could I’m join good for of family a $X.XX an we third reported be NFE line the for share a our In $X.XX in year. who Larry our quarter compared loss standing per not Downes, $X to Dennis the morning financial net us today’s obligation. of or per Executive and share due update. I’ll fiscal prior in expectations, with

in to a for by energy However, earnings outperformance $XXX are $XXX guidance year services, increasing due share. range the of per to to share a the our continued we $X.XX

see businesses. largest Moving X, of to can from Slide you NFE fiscal our our come will regulated The anticipated sources contribution XXXX.

XX% New We will in contribute NFE NFE to Natural will Jersey expect contribute XXXX services of and between in XX% XX% energy year. to and this fiscal midstream between Gas XX%

continue X, Slide strong see growth Jersey to to at Turning customer New we Natural Gas.

exceeding months XX% to we the strong XX, new nine representing is X,XXX June our last market see added over the increase ended For growth residential The expectations. multifamily market increase customers over construction to due in year. demand and continues new an

add of which margin Based year an As growth in be on will annual current cumulative customers gross average utility new approximately of additions have $XX over million three rates, year range in period. forecast planning We this growth of we still XX,XXX the the over approximately rate XXXX. a represents of planning over ending X,XXX customer to This expect result, our three to fiscal that new customer an now increased our period. XX,XXX, increase X.X%. period is

obtaining And, SRL significant Base we the link. road We easement June on progress update we on opening to from the achieved recently Joint the Slide for milestone to make southern an X, permits. remaining I’d when like XX. Moving a provide received continue liability to an

We future capital a the project case cost expect in with through proceeding. associated SRL XXXX be the recover in rate to service plan and to

X, Slide I’d to energy update like Moving to ventures. you on clean

this During wind and We gain $X remaining We pretax expect quarter, the the plan a Dot go service XX the megawatts to fiscal the sell million a by farm total four quarter, of closed of end capacity. These projects the of commercial of investment our solar additional be to for commercial And, megawatts. almost close totaling totaling year. about the XX on the Two total $XXX approximately fourth realized of portfolio sale XXX into business third service And two the quarter, the to quarter solar of are will capital approximately in in capacity. our first projects two potentially year, placed sale capacity commercial fiscal wind during in planned and megawatts million. we a XXXX. projects solar represent the

the program, solar customers. serve Sunlight Advantage and residential Our graph today X,XXX nearly continues to we

energy signed will things, measures. state renewable robust call a new on requires creates build energy in energy standards, XX, that market spoke investment aggressive Murphy’s efficiency drive Governor new last in And, that clean here legislation legislation energy growth and Larry drive create to the the Jersey. vision Turning New our the will X, about Slide strengthens the Governor clean other and job opportunities May utilities economy on to agenda. solar Among implement to

to solar to grow energy energy energy million support will to in plan Since we we as usage Today and energy significantly the XX% this reduce to save million. we have year, trough more approval, by to to Pending money our choices save and million the to up million than $XXX consumption policy $XXX saved clean reduce market solar state a Since programs. to New energy, we $XXX and helped Jersey BPU’s the the and market have some We call about over XXXX, invest overall their customers to CEV those Earlier its than approximately with $XXX details provider our to like Public continue efficiency. bring I’d state’s environment. the goal new customers New three we turn solar energy customers support Jersey to over innovated more well-positioned filed optimistic efficiency we XXXX, the of Board expand financials, leading Utilities invested is the expect Jersey’s New business. in now and the Pat? invest help currently we years. to about are in how goals have for next Pat more our are

Pat Migliaccio

Hedging everyone. in our The begin I’d Steve new call, Thanks since solar and last And, on XXXX Slide on clean good up the SREC of SREC significantly morning, energy prices. our discuss we XXXX. hedged to by following our Steve’s like results Strategy X. of resulted stronger increased and legislation NJR thoughts and

price We that well. are to XX, of XXXX $XXX shows And, hedged now NJR and update we continue Jersey Slide our and Natural about closed XXXX, for in over on XX% average per as capital New focus XX% XXXX spending for and SREC. of hedged to are Gas.

million the our main year, the We’ve remain XXX fiscal the fiscal of million nine continue nearly Safe plan make the on main, end $XX miles Program. we XX% steel by of which we on We more II end the XXXX. our than of unprotected to have in $XX of system. fiscal XXXX. tool track our We steel of on to of invested replace represents unprotected By the estimate progress first months replaced

service $XX in spent Island this first remaining for $XX we region. devoted into Rise, NJ fiscal XXXX. months nine to the provide this year of of capital million the which the will will million the completion Project, Barrier plan fiscal of The be For Seaside

we We have two we in additional increase the of March the II rate $X.X Rise. plan NJ XXXX, million and that to complete projects in requested In XXXX. for amount Safe base fiscal

expected October of base effect XXXX. to New into are rates on go

midstream Slide CEV XX. and our project capital see and on could spending You status

plan of to As investments. by year, on Adelphia our we and to related $XXX mentioned, fiscal those made million $X.X approximately Gateway And, to million. Steve exempt our progress midstream projects $X.X significant segment, spend spend to about end And, million PennEast the the we related forward. we CEV

months of Slide to explain ended drivers Moving three I’ll XX. June and the NFE the nine for XX,

the due O&M compensation NFE mainly of voluntarily program. early were expenses, retirement to down For including a NJNG’s quarter, increased consisting

year. year-to-date fewer credits commercial which quarter is CEV financings tax of of essentially the last quarter, While last NFE planned result of decrease our to was solar to compared the compared flat due to basis primarily on during sale-leaseback recognized was a assts. The our

energy NFE expenses increase services, and year. decrease an for to driven For in the the quarter by fees third in prior as the compared demand was O&M transportation

of of months XXXX CEV tax nine for for and was in a XXXX. midstream nine deferred months first particularly the largely periods, The January the associated in volatility, with late tax due the performance XX in December services result energy evaluations increase to was weather high and June reform. early ended the While

needs. XX, on Moving to update want you equity I to Slide our

plan of this benefits fiscal included new were due discount through from $XX plan of our equity reform. million the services the year, in reinvestments about waiver equity is end fiscal under energy original normal million feature we of the the issued of By $XX and This DRIP. a original of decrease Our the XXXX. and to outperformance tax

the results I’ll our be wind closing XXXX for Steve now fiscal financing of sales. asset will back the impacted some to Our assumptions likely turn by remarks. call

Steve Westhoven

Pat. Thanks

been that most questions, our state recognized us outstanding to the contributions. gas you Gas Cogent trusted branch, We ranking natural in to utilities. welcome Natural joining and I and their questions your as get also a New thank we work and mention comments. Before among team for I nation has in Reports and wanted today by want the Jersey appreciate seventh first

Operator

be Morningstar. go your Instructions] will first ahead. Thank from you. of And, [Operator Travis question Miller Please

Travis Miller

morning, Good you. thank

Steve Westhoven

Travis. Good morning,

Travis Miller

I see that I the helping over on out, years? year and seen volatility an had was there months, about services could repeat is the this you’ve next you’ve anything and what you that know be would few in weather ongoing that energy you talked benefit success wondering business nine

Steve Westhoven

and beginning Steve. that in the very, April the to in and cold is this ended and the we on warmest had some then we’ve the We I extremes I July warmth February, January, some very of think such flip experienced had and it’s the immediately that weather. coldest historically. was August we’ve April had a really weather December third of record think ever of then Travis,

business. - support that as that think as is for performance. there is that have changes to And, would we forward, the had far those weather how extreme to in going volatility been be of business similar volatility similar I good see and would storyline So, viewed see that

Travis Miller

what offshore and the are what’s legislation? Sure, all sure, someone been would you longer-term, would have with partner I at think interested be that, to would in to okay. like terms in of do about then something your And, thoughts obviously thought you winds,

Steve Westhoven

I evolves. know certainly - following going regulations process. need that are certain market, more think in the to as to that the We it’s take are certainly I put to and going structure much place. that There needs is be development market

Yes, an be We interested and we’ll you to it. large are some have certainly to keep eye in have partner would we capital to expenses, it but that on determined.

or that forward we everybody certainly So, going decide we are do if move watch anything market we’ll to to and know. let

Travis Miller

Thanks Okay, lot. great. a

Steve Westhoven

Thank you.

Operator

the be go Paul Instructions] will [Operator Citadel. next from of Please ahead. And, question Zimbardo

Paul Zimbardo

good morning. Hi,

Pat Migliaccio

Paul. Hey

Steve Westhoven

Paul. morning, Good

Paul Zimbardo

have I question on the divesting? from the One, the you disclosed earnings have two you’re assets questions contribution wind business.

Steve Westhoven

profits, themselves from Paul, most disclosed not into for have have on And, wind wind million is there. $XX we assets the you contribution disclosed operating NJNG this between contribution. year. not do production to $XX part, contribute or assets tax each back credits NFE we generate the million of can that no, What segment the so previously the though

Paul Zimbardo

Okay, is needs? there proceeds any And, go least would great, assumption offset to very safe partially the equity helpful. at

Steve Westhoven

assumption. safe a that’s Yes,

Paul Zimbardo

great. very Thank you much. Okay,

Pat Migliaccio

Thank you.

Steve Westhoven

Paul. Thanks

Operator

of Please The next question will Gaugler ahead. Michael Janney. go be from

Michael Gaugler

everyone. Good morning,

Steve Westhoven

morning, Good Mike.

Pat Migliaccio

Mike. morning, Good

Michael Gaugler

Just for one you in provide the Gateway on the the final and Adelphia of whatnot? an timeline update approvals could perhaps terms

Steve Westhoven

occur of So, for end our certificate, calendar sometime. this to FERC expect we year are that still we waiting the at

supplying already is able it’s to instinct an if the after gas that XX% that have will FERC natural natural of that - there. would under Energy and from the Energy making pipeline converting the the gas, we asset will come improvements so that plants So, to northern that then Remember FERC and power jurisdiction pipeline, pipeline. certificate, flowing will in go the and the Talent portion about be be of immediately purchase after we’ll receive we Talent you and customer

the pipeline from producing be So, X. will day revenue

Pat Migliaccio

earnings be project. Pat Migliaccio. will don’t expect year Gateway we is communicated this that’s than in to on Mike, that Adelphia XXXX. materially Hey more to the Project fiscal We’ve XXXX our contribute time That

Michael Gaugler

Understood, gentlemen. that’s Thank all I you. had

Steve Westhoven

Mike. Thanks

Pat Migliaccio

Thanks Mike.

Operator

Merrill America Bank [Operator Dennis question Instructions] go be The next ahead. of from Lynch. Coleman will Please of

Dennis Coleman

morning good Yes, everyone.

something Adelphia could of can the update meeting the see about process out, commissioner just is - retiring give last that you come the week, an on that what we it with do is thought on Gateway approval you up process. follow a Just their an in few then outside been have weeks. here FERC, And, think in normal the last active they’ve we process a

could we Republican something be delayed if into of that is to eminently see a could So, or we sort Commission? Democratic go it

Steve Westhoven

to to said of southern normal approval, our state some timeline pipeline they’re the ground minimal expecting pipeline And, FERC So, so just have Mike still last need already, that have line, we is it is same converting the essentially approval, impact at environmental to is we answer least assessment an it, receive jurisdiction we we’ve receive lesser our and everything impact, statement, the but are do we of before conversion are in calendar we quarter of in an environmental the bar. largely, improvements, year. as which some portion jurisdiction the And, expect federal to is XX% make we from to pipeline. the which a for then a much don’t just essentially

bar to expect of receive we in and of the said lower forward I last in already pipe the for all still we is all - bit of it’s think like ground. moving quarter considering little FERC So, the the it, a

Dennis Coleman

Okay.

you there just next been now change, PennEast expect in on and some I any a construction But you spend see that’s Slide I CapEx about whatnot, year. don’t be XXXX; any then think on and And, Okay. to sort it for know spend capital we of bit the - forth said back you’ve there XX, little there? comments Project. would of

Steve Westhoven

some New the general waiting that still to and comment the legal with is are properties those to complete the survey move the forward then mean of access for and our we properties conclude proceeding permits I gain legal of move forward. I’ll details we’ll turn Jersey soon the to numbers, concludes But as of as and on and Pat. we that with DEP then judgment proceeding receive over it the

Pat Migliaccio

you we the XX that over to expected as next here, PennEast flows capture slide in referenced midstream fiscal the does ‘XX XXXX. Dennis, an have year included and spend few the for shows Hey our for appendix it only cash spend and anticipated the capital slides, years

Dennis Coleman

okay. Okay,

Sorry, I just didn’t just slide. get that part on

Thanks. me. So, okay, that’s it from

Steve Westhoven

Thanks Dennis.

Operator

to like conference question the and session. ladies I his gentlemen, and Dennis closing this our for Puma will And, remarks. answer hand conclude would to back over

Dennis Puma

you, Thank us everyone Thank joining you Denise. this morning. right. All for

on one Just call quick of our recording reminder, this website. a is available for replay

New and always in Goodbye. we in Resources. good Thank a As appreciate interest you have investment your day. Jersey

Operator

Thank you, presentation. you today’s this lines. concluded. for time, the sir. has attending Ladies disconnect and you your Thank conference gentlemen, may At

New Jersey Resources (NJR) 7 Aug 182018 Q3 Earnings call transcript