NJR - Earnings call 1 2024 | New Jersey Resources Corporation

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

Operator

Thank you for standing by. My name is Jessica, and I will be your conference operator today. At this time, I would like to welcome everyone to the New Jersey Resources Fiscal 2024 First Quarter Conference Call. [Operator Instructions] I would now like to turn the call over to Adam Prior, Director of Investor Relations. Please go ahead.

Adam Prior

you. Thank Jersey First New and Conference Fiscal Webcast. Resources to Quarter XXXX Call Welcome today our Financial Steve Roberto joined our by I'm here team. Westhoven, as members Senior President senior management well Bell, Vice President and as Chief Officer other of our CEO; and today's estimates statements meaning forward-looking the and statements in Certain the securities other within of laws. call contain our our from We ability to that beliefs forming and current expectations, wish to assumptions estimate factors or caution control materially as many listeners basis to of on forward-looking of precisely. This this are results include Slide X. beyond call our that the cause found statements the could expectations differ Forms in earnings with filed and SEC. items also Form XX-Q in on the These statements recent section and the release be XX-K furnished of today's found as X-K can most forward-looking our assume buy do or of any particular not We in statement this future revise including light obligation review herein referenced forward-looking events. to any statement, to earnings such referring measures certain financial be NFE. also or We'll non-GAAP financial net as loss, believe of our funds provide understanding NFE, complete We that adjusted more performance. a utility net operations gross and from financial margin, debt adjusted financial margin, financial

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

today's financial our Form XX-K. fully of more Our The this are morning. available filed website X-K are in X slides Item measures non-GAAP and discussed were on accompanying presentation on our furnished

we and followed Steve. go Our will to our the agenda open I highlights, will Westhoven. call begin CEO, Roberto, over by for questions. With results. will Steve Please quarter's today your is this who Then found our on the will Slide X. President call ahead, with Steve turn that, review for financial

Stephen D. Westhoven

capitalizing strong momentum in start, weather is quarter volatility. the XXXX of continued the Energy the in and Fiscal first everyone. we to off morning, January, Positive outperformed Good a Services Adam. as start on second in quarter. good performance delivered Thanks,

$X.XX guidance a per our are to $X.XX we to announcing increase As NFEPS result, $X a in share.

our sustainability on and our XXth Report, XXXX. X. Slide our decarbonization and with NJR's I'll Last lower details results emissions of consecutive an forecast issued renewable as efforts month, Sustainability commitment in our evolving to carbon transparency reduction all leadership fully. pipeline and dating begin Before Corporate energy, we an It for a our energy more existing the our we of our future. landscape. on accomplishments is as the part report and quarterly discuss stakeholders vision to infrastructure update XXXX long-term role of with important in fiscal report well This back in

efficiency as innovate, And state. efforts. capture and mentioned, of new and with number to of solar of lower Jersey in cover this our headquarters solutions, the in we partnerships invested Just we engage I a like the innovation technology commissioning as Edge also in positive entities a cutting-edge North deploy Clean Cutting having energy report important, impact is facilities our innovation partnerships how installation on organization continue other the at new Wall, year's academic in our engaged New approximately and culture report to strong just Jersey how technology in and pumps largest research heat landfill I'd program. the the support including America. We SAVEGREEN advanced Natural shows ways. energy strategies, highlights. and dynamic few Gas' we $XX Ventures localized to floating Energy of arrays carbon Last gas in New carbon high-efficiency million a year, execute in well-known cat

year. for all an by of was that NJR opportunity We fifth review responsible had you've X hope most consecutive recognized to the America's Finally, the Newsweek as companies report.

recover business financial first X. to strategy Gas, Natural our rate in the case with approximately in $X.XX million settlement At of first $XXX New was quarter, We Jersey and delivered case last of executed line XXXX. to year-to-date net quarter the our expectations. filed in highlights which per rate operating Slide Moving capital and we of the investments earnings our base on share since a

of for with from addition, Jersey filing and million, solid approximately our finally, $XXX energy In new program in service megawatts line our Gas Services largest into and Energy continue history. to efficiency we we pipeline. expectations. which and SAVEGREEN another New is the Natural Energy in filed Ventures, S&T At diversify a Clean X grow And reported placed project contributions

event of to weather mentioned to guidance benefited range during our Moving we And to Services to $X.XX share. $X.XX $X.XX us provided share. allowed raise November, in January initial NFEPS Slide $X In share earlier, per NFEPS as per Energy the X. we from $X.XX EPS by I that guidance per outperformance to our XXXX

our prior stated we our for utility X% coming net in NFEPS exceed fiscal as portion well business. which As the contribution X long-term segment of calls, a AMA as from XXXX reflects earnings our rate. Slide the growth to to business X% XXXX, fiscal significant financial expect shows expected discussed contribution year by

as quarter energy residential XX% that of SAVEGREEN their is of in near returns. approximately real-time million that reduce lower Looking Gas first first of the long-term the in segment money ahead, more beginning on units, earlier, invested commercial business mentioned our in XX% help growth future the our customers and discussion $XXX our and contribution usage. We New and that, Within in of with to with expect comfortable years, spent fiscal at we CapEx through which $XX feel customers XXXX. quarter XXXX I to We a return rate we carbon with and program, fiscal the save a normalized to Slide Jersey programs million We variety providing footprint. helps their I'll Natural X. turn

rate IT through invested New XX, conclusion of solid case million, period, our as the the nearly the safety X,XXX $XXX.X XX the million adding investments. we Finally, XXXX, customer base combination enhance transmission systems filings. income. in during our on our and additional case an reliability approximately $XXX On distribution achieved base operating customers and and Since requested conversions. Slide to to rates last new upgrade has new new January of of we and construction approximately of increase detail in increase of growth as equivalent our an of Gas Natural $XXX million well Jersey provides

Slide to XX. Moving

solar into business, to We pipeline, our Ventures, now approximately the followed new continued exceptional Energy of includes of megawatts momentum grow continue investment an Clean X XXXX potential solar year. with and heading megawatts added Our options. new capacity which XXX

geographically years, past Jersey. with continued the our few now of Over to outside XX% of we located expand pipeline our portfolio have New

With is a the focus on unlevered our Our results. returns. delivering that, investment call Roberto? of turn single-digit opportunities financial to Roberto provide for I'll high review solar to

Roberto Bel

million Steve, shows the $X.XX our compared main fiscal morning, first XX Slide Thank NFE good of drivers and everyone. reported of NFE you, with of $XXX.X share last of or $XX.X quarter the We per year. $X.XX million share NFE or XXXX. per for

first was XXXX. reported winter in timing period. to depreciation energy gross result higher Storage million, Transportation in expectations, revenues by largely NFE of for of to of fiscal a approximately last by the revenues margin offset Gas NFE SREC operating Natural with declined and and the expenses. Clean due related the of $XX.X operating utility quarter LBO line versus year higher the storm QX Jersey as New higher ratios increasing fee

$X.X reported Finally, compared NFE million of $XX.X Energy of QX in to the year. million, Services prior

of volatility last benefited to related December quarter of from a be As natural LBO gas the year increased during winter from XXXX. first reminder,

BMA first fiscal less QX addition, last recognized In was year. XXXX in than recognized revenue in the of of that quarter

current As Steve our January fiscal second fiscal XXXX Energy Services XXXX, which in raise is mentioned outperformance our earlier, guidance for to is due quarter.

expect to we As during the fourth to of it's the look note quarter. the a that recognize the significant portion of EMA's revenues fiscal in total year XXXX, with our remainder important later being recorded fiscal we majority to

on capital plan our Slide to XX. Turning

Over capital invest between billion to billion X across did changes years, plan compared prior the to our call. make next the We to and we $X.X our $X.X not any company. expect

shows metrics. projections in cash million credit capital by flows range $XXX XX XXXX. Slide we our from are operations Our that and see million Slide to you from $XXX between XX, and fiscal operations. On anchored XXXX cash fiscal flow both can expect strong

project to on the our existing We allows us discount to waiver that book opportunistic includes continue and be NGR's the XX% while basis. year. FFO And to to an debt issue XX% for equity raise de-reinvestent program feature we equity, plans no adjusted to adjusted between have

on Finally, Slide debt. XX, long-term we breakout a of our provide

of see, most in any can rate in we do debt you is and nature, significant have our As fixed particular maturities not year.

the Our long-term XXXX NFEPS and interest assume future. growth for for foreseeable rates guidance guidance our high NFEPS fiscal

back both to our fund We objectives. With ER the outstanding an that, will turn liquidity we position to at have and in Steve. are Overall, I substantial growth call G&G.

Stephen D. Westhoven

off Roberto. to Thanks, conclusion, a In is start. NJR good

Services and performance to due XXXX fiscal to NFE our higher contributions Energy year core a We strong expect from from be businesses. steady

energy in recent of considerable hard been your take open And targets for in we've the to able our all upside their work. employees in addition, markets resulted call that I'll advantage In of opportunities with want growth to And have I for now our the that, to always, thank as years. questions.

Operator

the first Sunderland Richard of Instructions] Our [Operator from question line JPMorgan. comes with

Richard Sunderland

not -- guidance Energy anything sorry, fully benefit side the BGSS the $X.XX just realized. The reflect at or raised, but range Services, at incentive S&T guidance on does even to January weather the and extent that

Stephen D. Westhoven

forward. put from team financial that through and try into everything and in of numbers really the going our nice going The impact job did Yes. to budgets our all a weather

it So the we all fully businesses. the does reflect across believe and weather January

Richard Sunderland

Understood. largely I that. more timing That's a factor. sales helpful Could to little would number that guess, bit you surprise color. at see The big CEV, a SREC unpack

Stephen D. Westhoven

Yes.

it You that the we know as dependent at occur. sales commodities, those take revenue really are when impact what, It's the it of and time the just on really transactions depends as when sale. goes SRECs place recognize

is It it. normal into business. anything read don't So our

Richard Sunderland

I a spotlight on this then And the AMA Understood. benefits year. you know put

benefits 'XX, coming on that? you that from growth, around step-up long-term to turning that color base 'XX, January in in the to though linear? the shape rate bigger do Or there will guess, you a a in it any the base expect be Now be case rate given provide to Meaning, weather I growth basis versus year? should business the can be

Stephen D. Westhoven

in get given this of in got rate through power be the cycle mean time slight you've We've case really and should changes we the the I of by companies. 'XX in contribution. now settled a we've going -- portfolio percentage said is over the as We're well that to the growth them community we before, financial segment those expect company the go And rate as the we with future. we be our attacked. as period contributions, normalize to the as our and expect into shared we

I your that So question. hope answers

Operator

from Your line the of with Shahriar question Pourreza comes Guggenheim next Partners.

Shahriar Pourreza

driving what's quick issuance equity from guidance also your higher expect financing despite in slightly debt, less Services. you raised of I guess on Energy real Obviously, just unexpected then just issue plans. the sort guys the inflow to now 'XX So that equity plan? but

Roberto Bel

[indiscernible] it's program. very Roberto. The equity a increase in the small in [indiscernible] our rate by increase to way, related

I'm As bit to know, exercise in as program, from issue -- of we part program, you a buyback DRI -- of adoption. sorry, our part as have time, equity little the our and option to we equity of time our

what really you're that's there. So seeing

Shahriar Pourreza

it. Got in obviously, Okay. struck peak know, earnings asset just you bit And from XXXX. -- agreement little a highlighted then management I the

look on Just of in and of kind bit we're I thinking cadence, especially remind a guess, cash sort contribution and maybe of and just little us 'XX prepared the what about beyond, terms earnings just remarks. remaining as years the that elaborate like

Roberto Bel

Roberto again Shahriar.

here to contribution. the From year, of become be revenue of in year. know, little with $XX you of for a bit a [indiscernible] going around terms here as on down terms revenues, for terms of they in big the the early step year So AMA million. million is from our every to now $XX in And and

Shahriar Pourreza

some little are accurately. what you And with let and that but you're if seeing can to recurring impetus hit range the asked that Or it it. little downs me -- Are seeing the a bit of step the this question, guidance you the figure that least I hit going I with we just to to I that but at just to more on we the you Services know near question, be should that in maybe you the a going I didn't now? expecting earnings of you're more AMA of linearity of some versus a know gyrations? linear? confident Got Energy was should assume business still there's sort -- a get the maybe down prior the step despite Okay. sense sort don't prior was of just of want -- midpoint term? of in assume be just on show sort hit whether bit

Stephen D. Westhoven

kind of history. It's our growth best normalize Yes. long-term the We'll to I We'll it confirm range. can do.

business forward we long-term You percentage other did do you'd the have a normalized. more we're is that spike, yes, contribute as growth confirming some expect But our as coming units rate. and expect

Roberto Bel

as our find Shar, in earnings and to what basically initial we our year to should year. see grow Just you going then X% to guidance be between XXXX that every our every are clarify, what earnings expected normalized presentation, and take X%

Operator

Your with Williams the Seaburg next Shank. of question from Chris comes Ellinghaus line

Christopher Ellinghaus

Have terms of at point you this in the you this year? you CapEx guys got might color be where any range landing solar think

Roberto Bel

It is showing Yes. presentation. in what the we're

So that. we're not from deviating

solar this $XXX for million million to is So between for and roughly. what year, we be expect $XXX

Christopher Ellinghaus

this for all what Have you on got point? per solar thoughts or you're seeing some a watt number costs at in

Stephen D. Westhoven

pressures. our had $X take we're inflationary than deviates that of continuing to had range, type we've watt solar or few solar pennies. significantly But that's well. in some probably nothing panels around install or historically. Chris, know been hedging some that give some I as what a We've there's

hopefully, So that helps.

Christopher Ellinghaus

Through process guys helps. year, have that the you gleaned CSI this that's Yes, valuable? anything

Stephen D. Westhoven

that. I There's been the changes don't has things BPU like robust. that CSI in some been think the and process

in have it. those. some I number time working be They're due been believe that the going a February, there's to these initiatives So are little of out bit. a bids then analyze to through and drawn still all

move some far but into or of as along, event So happening nothing continuing what's to milestone of to a change as really share insight next. kind sort or

Christopher Ellinghaus

thing. Okay. One last

in aware the ecosystem environment goes, of as unlikely. far a traditional would anything of BPU of you're is As sort case sort rate that settlement is suggest there that the

Patrick Migliaccio

is this Pat Migliaccio. Chris,

reliability. As we've of quite this recovery now, a talked is time for really We're and rate in case. some seeking Vonella safety investments

other pre some XXs and well minor I as for as So think IT recovery pipe investments.

you the they've the I rate that if [indiscernible] outcomes cases, been occurred across right constructive, have our historical think look constructed. been of

not deviation from would expect that. any So I

Operator

comes [Operator Asset Management. Instructions] Roger, our next ahead. question Clear line Harbor of Roger go the from Liddell with

Roger Liddell

The texture program. gone far some beyond has get how important to industry it's wanted mindset in me, energy asymmetrically it's the you me I and of old that of To company illustrates meter efficiency to on of and the because it old guys efficiency the gravamen seriousness, the just this standard customer that days. transformed illustrates model the kind was have the the point. offerings

is energy program. believe I disconnect efficiency and So between the it million matters. million, a call I'm the X-year the, $XX looking $XXX it, at investments which of you said

those XX So investment measurables of program? the and you use kinds take to And on we Is levels how you aggregate it measuring do Or from XXX? the back can fine-tuning being are the get for some are how programs? the the outcomes made? there simply of that

Patrick Migliaccio

ownership your long thank Roger, question, Thank hear you Migliaccio. it's in and for Good NJR. for Pat your from you. you to

coupled, to the And are offer we those that efficiency greenhouse role believe plays and can the energy already we acknowledging a you appreciate things We energy to we So over do X gas it's of efficiency emissions. time. in programs. because help important most reduction drive able

to you number Trianon significant under $XX that in say, our investment QX is million to it. as old was it's largest But So refer a energy that because we or ever efficiency. old, the referred that I'll

to includes that savings building part so your an that as recovered measure hit invested measurable And for the spending our that referred increase the we and that certain do is saving offer, are investment, commercial energy but elements the you to program goals $XX have customized $XXX X-year we to, while point, size decarbonization of a programs related million what that, energy large we There is which for roughly related small upcoming of of X, that was to to certainly, that under million being that training are the that as refer in programs well new and and that also as investors. approval customers to and also we program. normally

hope that I So your Roger. question, answers

Roger Liddell

so and ago $X. in Is around there least is question back objective equivalent $X year a was federal the direction? to Has to your with context does. the drift of the that right hydrogen, A number contrast an the speak at range any does of then, related of? it or Yes, estimate the progress MCF

Stephen D. Westhoven

being generally I almost to they're some associated I $X towards the put and drive with hydrogen how to gas, together a an of amount and are ] mean But the of be going natural hydrogen apply their in brings program speaking, is going which coming around through. is going it the now down taxes to still rules price MMBtu that about target think dollars parity. of equates price $X kilogram, [

programs in that time are speak, to we in it moving up. But see So direction. where go we'll as finally it those ends we and expect forward

Roger Liddell

Last question. Okay.

maybe offline, mentioned aware Could I critical useful technology the gas-fired area. You it's gas-fired of call, meaningful but better mass that heat if pump pumps, really be the and that opportunity. for wasn't was there a a handled it's in heat

Patrick Migliaccio

is this Migliaccio Pat again. Yes. Roger,

So number efficiency the level residential available that north but I'll used e time, available yet equivalent stage not and some of of But broadly commercial XX%. heat there being America. some those early for have are a have pumps, North of get vendors an pumps are gas them, in at European in market, the gas pumps been manufacturers commercially here call

they represent improvement high-efficiency And a an today. so natural over of gas furnace

gains to that think moving into represents the do heating gas natural so continue an that to opportunity appliances. And future, drive efficiency for in us

Operator

Instructions] [Operator

line our with from Gab of Mizuho. And next the question Moreen comes

Gabriel Moreen

the kind CEV and to past how it's just New targeting? Just competitive envision, ideal had towards an heavily backlog, if target of Jersey. and also backlog New It had adding make on breakup in you additions. longer Jersey happened you out projects there's guess, you're wondering I'm that skewed shaking the I and like question seems the the a success down changing anything that to between term, non-New landscape if Jersey And of quarter? just happen this in

Stephen D. Westhoven

diversifying long and plan. a towards state And for talked a about what believe you New Gab, just have essentially Jersey heading see we number we've that executing So that is in similar risk the time, jurisdictions profile.

solar have where we friendly point, fit I where that do jurisdiction can this percentage we a investments target So so. is we're on and the where to the No, At for and number growing, a together. solar space deals pipeline it's going in project continuing available increase towards it really happy that's the that split. our see does think to forward. that best make don't and investment to But support our continued and that investments able put in we're

Gabriel Moreen

and just Steve, also potential you Adelphia, how whether has ask I River maybe squeeze I think any the belt curious winter asset quarter, weather room Leaf every update performing and with more but capacity that there's any more to your I'm under been expansion. at on out.

Unknown Executive

take the I'll So one. first

well. saying, and we're by don't asset working Leaf we're is a year-on-year we're the company. is And So are where see at have significant watch to rivers doing like these time. like that dealt continuing to we transactions. pursue look continuing update yes, anything up across Gateway need at are this and a point opportunities organic growth point market And percentage, on I to is we River. in certainly, can just little We supportive. But

Operator

some our you. And to I closing That will over for pass that, it today. Q&A concludes Adam back for Thank remarks. with session

Adam Prior

this for joining morning. us Thanks, everyone, Jessica. Thanks,

as of your appreciate call everyone. on a As investment a interest a in for this good always, And and available our NJR. is website. Thanks, we recording Have morning. reminder, replay

Operator

Ladies Thank for you gentlemen, call. all that concludes joining. today's and

You may disconnect. now

New Jersey Resources (NJR) 6 Feb 242024 Q1 Earnings call transcript