Earnings call transcript Q3 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, and welcome to the New Jersey Resources Fiscal 2023 Third Quarter Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions].

I will now turn the conference over to Mr. Jersey New of Prior Resources. Adam Please go ahead.

Adam Prior

Roberto operator. third quarter you, today Financial Steve and Officer; Welcome and as Vice I'm our to XXXX fiscal by senior CEO; President our members Resources as Jersey Westhoven, our conference Chief here Senior President New joined Thank Bel, other call of well webcast. and team. management

the basis our control from factors our results of or this our are to of to differ today's many other materially expectations, expectations beliefs forward-looking the of forward-looking as meaning cause statements and caution current ability could call wish statements to We estimates that include the that contain found in estimate on laws. assumptions statements This precisely. forming Certain X. securities the call listeners within and beyond Slide

These be items statement, We and XX-K obligation of forward-looking review the filed forward-looking today's Form statements of to assume our with release the statement and most particular section revise in X-K including future furnished or in this recent not, Forms light by herein on as events. in can earnings referenced any any found XX-Q do also SEC.

net We performance. loss, non-GAAP referring provide financial more earnings be will operations adjusted financial from such and our gross We believe complete of NFE. debt margin, a also financial margin, measures or that as utility NFE, to understanding financial certain financial net adjusted funds

are not non-GAAP measures be substitute GAAP. However, to these a for intended

more our XX-K. are Our of non-GAAP financial fully in discussed X Item measures

Form X-K morning. our were presentation on on website our accompanying today's slides The this and are available filed furnished

will our for highlights, by today Then open financial is Roberto, found who up Steve begin this with quarter's review for followed questions. it Our results. we'll will your on Slide agenda X.

our that I call Steve. go Please turn ahead, said, to and over will Steve President CEO, Westhoven. the With

Steve Westhoven

expectations. We to solid NJR in line had Good quarter businesses our continue as with Thanks, perform portfolio complementary another of everyone. at Adam. morning, our

we guidance result, on to our XXXX achieve NFEPS share. a As fiscal $X.XX of per remain range to track $X.XX

per of financial the earnings and net quarter in share $X.XX of third We year reported $X.XX per share year-to-date. this

a summarize few To highlights.

added X,XXX quarter, with rate return levels. the Natural to our new over customers pre-pandemic Jersey to beginning New Gas now growth during

addition, are been has that recognized Natural In utility Escalent their trusted Jersey one New of most proud we XXXX Gas as by brands.

its the project year-over-year Clean Services highest the strong pipeline its increasing level our Ventures improved AMA At Energy our history. continued capacity year-over-year, growing strategy continued by finally, And strong company's strong and growth. to and option performance quarter. Energy from driven in-service the its contribution momentum, we in from S&T, its reported during revenue NFE long

Turning X. Slide to

by earlier, driven our per I $X.XX XXXX $X.XX, are of raised share. $X.XX NFEPS our Energy outperformance Elliot share December Service during we guidance As in fiscal reiterating Winter Storm by per Earlier noted to year, range this in guidance we XXXX.

growth and X% fiscal at higher NFEPS XXXX from remains to of for to X% long-term range Our XXXX. the at we original expect end range be that our guidance,

New at strong real-time had We XXXX, million first returns. months fiscal New during nine quarter, Jersey XX% of Slide as approximately on invested Natural that Jersey Gas X. a highlighted $XXX near providing of Gas CapEx Natural the with

conversions. period customers the X,XXX through X,XXX during this and new compared last to of customers year construction new combination nearly added approximately same a We've year

in once winter. March this cost coming again our rate savings we able customers credits decrease of provided in year. filed this This to to rate to effective provide adjustments. our the is bill addition in June, In annual were We

manage savings works costs, our hard team Our to to and we on to are these supply pleased pass customers.

with in the XXXX, technology of our next consistent file to fiscal case expect investments. we our calls, prior on line indicated time As rate major

the increasing its pipeline project team X. The continues great Ventures Slide and at to its Energy progress grow portfolio. of to size has Clean Moving made

We megawatts fiscal since inception. increase new This any represents since largest capacity solar CEV's fiscal capacity of in have added start XX XXXX. the year of the

continue growth Jersey. expand Indiana includes in We Since come to approximately State added capacity year, capacity has our in that our geographically. assets New This megawatts of the two outside operating the the Michigan in-service to XX% of start and XX July. of

have for growth acquisitions offtake asset opportunities. optimization Operational We us proven offer in future with past. the projects organic performance that strong successful target and

standards. The does our an excellent ensuring highest the operations at maintenance job team perform at CEV and projects operational

portfolio our at for availability, team a a fact, advantage to CEV. typically over of an significant XX% and In performs organization the us as focus at testament the

and highest in grow continues of which to history. megawatts potential XXX project investment our options, Finally, CEV's now includes over the pipeline is

I'll with Roberto? to the financial review call that, results. to Roberto our And turn over

Roberto Bel

Steve, you, drivers and shows fiscal X the good the Thank and Slide year-to-date everyone. quarter for of of third morning, our NFE XXXX. main

$XXX.X months, reported results share Through consolidated This million per year. last or $X in of our XX% in with share financial million the year-over-year improvement first the represents improvement earnings nine with for our $X.XX per we have or a strong share period. net $XXX.X compared NFE per

reflecting we a of million or million $X.XX $X.X depreciation Services the by financial generally segments CEV share and or Energy higher expenses. per business share net our interest with reported NFE quarterly per NJNG new and consistent year-over-year were of at at of and our year. improvement a and loss margins third $X.X revenues offset quarter, results last $X.XX For S&T, compared The expectations, in with

for to NFEPS successful benefit QX the difference that included was our derived income year the This CEV last compared taxation from from of year. was of the an allowance. benefit resolution current largest guidance The in

capital our to plan Turning XX. Slide on

unchanged. slightly the NJNG the reduction we modest CapEx midpoint CapEx year range, expect the overall tightening we're CapEx and increases the fiscal business our CEV At range. by keeping offset of at level, top a unit while end XXXX, S&T, For in

expectations We'll and call years for in CapEx year-end XXXX conference in update XXXX our our fiscal November.

our updated XX, for projections year show projections by XXXX. operations. we Our are On anchored capital cash from flows strong fiscal Slide

between million. our impact This $XXX gas and had and $XXX to our see, prices improvement capital we As previously requirements. you working earnings cash lower from to due mainly range can on that is expect million operating stated a flow range higher positive

projections metric credit waiver shown operating the XX% our a for on we debt, adjusted includes improved to XXXX feature favorable while issue are reinvestment maintains no We adjusted program preferred Slide NJNG existing basis. on equity allows block metric, for credit an while to project tandem FFO have XX. year, Our to credit our us plans rating. And to a cash between and our investment-grade raise NJR's that equity, have discount dividend flows, which now in with XX% be fiscal opportunistic

I Steve. call to the With back will turn that,

Steve Westhoven

is a been with the governor's technical months discussions ago. to We've our discuss the in Order XXX. Jersey office holding several made Roberto. Executive Thanks, public proactive New week, concerning the executive BPU the conference orders This

We actively have are participating in initiatives happening goals is in place this and align conference, real which to the state's in with decarbonization time.

strategy a growth has clean than more are the and of aligned new made a energy create a the strategy Murphy for A Governor governor's to investment will number priorities drive been clear we've build decade. job opportunities. economy pursuing that directly that with

energy is our customers future. focused NJR energy of on transitioning clean the needs In a while to company closing, meeting infrastructure an

our Our long-term supportive capital growth opportunities growth investments of targets. develop are NFEPS our and peer-leading, to organic efforts

open hard As and work all the that, always, all of questions. now for thank contribution. I our I'll And call want to employees their with for

Operator

the comes Your Mosca Robert you first Thank Mizuho. question Instructions] of [Operator from line with

Your line open. is

Robert Mosca

everyone. Hi, good morning,

your on So at overall does your guys just projects Jersey all get And hoping solicitation recommendation this expected? on CEV? an New strategy or thoughts NJBPU's outlook you the change process. it to your scratch terms the Was scoping in for of growth CSI outcome in

Steve Westhoven

So program, state right clean through learning And that there think learning curve still curve, a now. very is to certainly could with state committed I energy. is the a any be little the of new bit going and

The out we'll the these and see. certainly to made look and commitment loud So its awarded. clean programs get energy and has governor clear at worked projects

how turning Just impact to It's not us. may to. going it

large when number outside of are started state. As making city of diversification XX% we've projects important, Jersey investments capital the to outside the projects. years to state diversify is those ago, investments achieve pipeline of you the important a got size New we'd because and know, able the of able make a of having the the to stated. of reliably was goals that predict of those able be just program outside and be We being to we've to

feel So very is in outside goals, our confident large and XX% all-in-all, still change worked state a We've state. their strategy. programs these it doesn't It's moving energy got still the and pipeline clean the projects, they'll we clean future. and But get out the energy near to committed of forward. of are

Robert Mosca

existing can you thoughts we of Adelphia belt, to Steve. latest above the on commit it, And on your your Appreciate expansion? whether potential of optimize get indications maybe And Thanks. River any maybe operations load? certain can another volumes its a quarter pipe early Leaf under segments with also

Steve Westhoven

So Remember, test for pipeline. single-use the portion time. And law. came The it's a thing the the in natural to northern the portion the new Adelphia northern gas it. we're soon I southern portion has some of think Gateway. about certainly, too operations just of as optimization asset say customer a was current gas learning It in up

able our target to expect So investments would associated learning for the companies optimization future expectation so some in our with future. in certainly, that it. along, I grow the organic be these assets still growth, have, there's that would for do that. to the throughout being an there But All we making

Still Very built announce being to in with down on working that in environment Nothing the volatility constructive experiencing on Leaf that LNG region. potential that expansion all the that's and they're area. down River.

make market when that at do this in something, announce we but certainly nothing to point, on a terms But announcement. constructive to come again, region. So down we'll

Robert Mosca

time, Thanks the everyone. for

Steve Westhoven

Thanks, Rob.

Operator

Your Morningstar. Travis question the from Miller next Instructions] comes with line of [Operator

Your open. line is

Travis Miller

Good you. morning, everyone. Thank

Steve Westhoven

Hey, Travis.

Travis Miller

when What's into terms energy this proposals, on What's the on that Or governor's regulatory something beyond kind discussion in thinking your get of following is Does the the discussions your Would any timing? these make time and of office conversation filing? and project of there the rate around next into that having clean sense debate it of in you're some the thought that? Just case line? of to proposals, regulatory actual filings? terms stuff. that all make

Steve Westhoven

you regulatory talking solicitation? around place are the talking are of the guess order the the clean that about about you clean of about solar Or taking some proceedings to are talking energy? executive the energy? I you Are news

Travis Miller

stuff, the energy, solar yes, more the not clean much as latter, around the yeah. Yeah,

Steve Westhoven

those then policy very time. it's at So hard ultimately got would multiple into to into you've fall they when in I taking predict discussions think come definitely clean currently. Predicting going and are think and to I with conclusion point to the place energy, place, kind this of

needs still general that I take that talked think discussion just we're to it's Jersey safe lot say about as there's a Gas. But comment, NJR, a New here happen. place reducing to emissions we Natural how before of would at decarbonization,

Now going future about to be forward programs we're this our our path to to and able our continue energy continue the thoughts deliver about to to knows press cleaner our hydrogen certainly, plant, Everyone in this fuels customers. efficiency we're going to that forward.

we feel time, well. in point as goals but think I'm the to this goals look all in certainly governor's those with So it. and this alignment forward regulation, stated come at become part when stated But to good of basically I will we state's predicting the

to think with nicely the going the state. future I goals of we're align

Travis Miller

especially next again, rate of make Okay, that the the into remind hydrogen on And side. me sure. and that some case Is filing will correct? it

Steve Westhoven

and hydrogen in they're they Well, and remember, of that our support which state our last clean included rate was was supportive energy case, show raised and clean fuels. already so plant, box

Travis Miller

terms Anything to on side, in then updates to or solar ability along get the those Okay, panels in And costs? of lines? any supply okay. changes buy

Steve Westhoven

and to projects It's Yeah, this megawatts that usual. there. XX service. see as fiscal bringing completion And putting them we're nothing year. you in into service add business to

continue moving on we're forward can plan. execute So the and just to

really So there. nothing to talk about

Travis Miller

so Great. much. all That's Thanks I Okay. have.

Steve Westhoven

Travis. Thanks,

Operator

remarks. time. There now to Adam are I turn Prior the for at call this no closing further Mr. [Operator Instructions] questions will back

Adam Prior

you would I this thank to everyone. all for morning. joining like of Thanks, us

recording available is on Goodbye. call interest always, As this And website. in your of replay a NJR. our investing as we reminder, appreciate a for in

Operator

thank We call. conference today's concludes joining. for you This

now may disconnect your lines. You

New Jersey Resources (NJR) 3 Aug 232023 Q3 Earnings call transcript