NJR - Earnings call transcript Q1 2025 | New Jersey Resources Corporation

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Operator

Thank you for standing by. My name is Bella, and I will be your conference operator today.

At this time, I would like to welcome everyone to the New Jersey Resources Fiscal 2025 First Quarter Conference Call. [Operator Instructions]

Please note, this event is being recorded. you. Thank

like Investor speaker Relations. now Prior, today, introduce of Director to would for your Adam I

You begin. may

Adam Prior

Thank you. Welcome First Quarter to New Jersey Call Webcast. Resources and Conference Fiscal XXXX

CEO; Steve I'm today Officer; management as members President Westhoven, team. Roberto other Financial Bel, as our our and joined Chief our by President of here well Vice Senior and senior

of the laws. Certain control the meaning within expectations, other forward-looking We to beliefs basis statements wish statements forming in that ability factors precisely. today's statements of call contain are this caution and assumptions our to listeners the beyond estimate our current and and securities call that estimates the or of many forward-looking

can results from and the materially differ in XX-K cause yesterday's found forward-looking with our statements could as section on most SEC. release our to and X-K be These Form also XX-Q furnished on filed of found as This Forms items recent earnings in expectations Slide X. the

by assume referenced herein not, this statement of events. future do statement, light forward-looking to any review revise particular in including We or any obligation

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

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

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

we the our Roberto, on are on review your this today's beginning X-K accompanying slides quarter's for and financial will with by results. open available yesterday. who X, presentation, website begin call filed on followed Slide were questions. will With Form our will furnished Steve Then our highlights,

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

Stephen D. Westhoven

is XXXX strong Thanks, to Fiscal a and good morning, start. everyone. off Adam,

This million with of the in and the efficiency which first recover achieved initiatives, made $XXX new New New implementation iteration of At a launched growth next milestone we ability Gas, SAVEGREEN our a of the our of in was rate Jersey case. approval is we case Natural supportive to strategic $XXX execute our our the rates driving of following the June last on energy runs $X.X our and business Natural significant During continued our rate of quarter, XXXX. across segments. billion. rate the of base program, Jersey million Gas largest results investments We base through since history to

incremental rate Gateway to rider we well its project recovery At a remain with strategy X and is Energy are SAVEGREEN to Ventures Clean Adelphia in forward gigawatt to on and our a progressing we Leaf continues annually. that capacity section is base transportation, to River updated X move of to at over with and earn growth. Investments storage real-time later case and rate advance expected pipeline a return an near positioned solar resolution drive year. continue project our commercial this

continued contribution allocation. portfolio and strategically as through the management in shareholder delivering assets And significant from we Energy XXXX. continue value These from derive disciplined finally, of as our to announced located commitment achievements value asset capital agreements storage transportation reinforce our to well Services,

delivering on emerging strong clear NJR capitalize opportunities. to performance, first is our that is commitments, only review we quarter but As positioned it's not its strategically growth on

the and for and portfolio long-term our guidance fiscal strength on This our diversified current Now XXXX let's turn reflects objectives. of to opportunities navigate ability Slide X. to our

of share. to portfolio. share onetime guidance $X.XX our our from Our growth gain of fiscal a is solar XXXX per $X.X rate long-term the exceeds sale XX% and which NFEPS incorporates residential our

forward performance operating through assess as will our our season. financial and monitor and carefully encouraged We all move outlook businesses the of recent by we are across the we winter

fiscal do NFEPS our units as and utility slightly breakdown by continue in we to first come the the our segment. to business ranges and quarter XXXX narrowed will of our so the operations. majority from On We Slide expected is our year contribution year X, The NFEPS of progresses.

starting our Now Slide New Jersey discuss X. complementary with let's business Natural on units, Gas

quarter, in Jersey of providing we the XX% real-time that Gas Natural During with invested CapEx million $XXX near returns. New

We our expansion as are consistent and drive investments to through locations. construction as leveraging growth enhance new well reliability customer and into new conversions

solar Energy projects megawatts currently period X, an Ventures, approximately during Slide the of megawatts construction. to we at successfully under with Clean additional into Moving placed XX XX service commercial

and to expanding our ahead, support the by residential and leveraging we the opportunities. portfolio capital the sheet steadily our to recycles of X pipeline capacity Looking are gigawatt. enhances growth well continue future solar growing project a Furthermore, of our positioned robust balance sale

Moving X, to our Transportation deliver stable through fee-based Storage returns to Slide continues revenues. business and

investments Our investments, positioned Gateway in which are FERC conclusion made our and Adelphia anticipate enhance markets. energy work and continues its We pipeline infrastructure serve constrained including process storage the rate case, facilities pipelines to strategically the to system. later the to modernize XXXX. through reflects to

River, We we and at recovery demand. capacity focusing made excellent quarter have are progress on Leaf actively enhancing growing advancing storage Overall, restoring also energy capabilities several on project throughout our fronts. the to meet

review the With Roberto? turn Roberto that, the over a financial I'll call to of for results.

Roberto Bel

everyone. and Steve, good you, Thank morning,

an our new reinsurance our XX, last fiscal of start. of earlier, of net per result quarter, following as we reported place result successful In Clean in portfolio. reported XXXX the $X.XX being higher a Energy $X.XX on completion rates to NFE NJNG base, November of NFEPS and ventures year. high is rate with of as of fee compared share good per reported noted the NFEPS a off As first share a

NFE Services prior Transportation and Storage the also and compared delivered to Our period. year businesses higher Energy

where XX, will we Slide final year-end to move let's Now plan. discuss

$X.X of to long-term $XXX XXXX disclosure investments $XXX X%. our expenditures from which XXXX. target make For to fiscal in growth and million aligns million during and changes with our continue capital compared spending and plan did capital to expect not to fiscal XXXX our billion, prior between for capital ranging $X.X fiscal NFEPS X% billion We planning any to

our utility several Energy our the next portfolio Clean to and and years, expand enhance employ assets. capital Over we optimize Transportation to expect infrastructure, Storage our

As execute highlighted position to on sheet balance financial while priorities, maintaining on strong XX, our strategic and liquidity our enable Slide flexibility. us

ratio at manage maintaining projected and ability with Our adjusted from and at between solid XXXX, to range investment-grade our operating strong sheet funds balance a XX% operations generate is NJR. are debt credit and to reflect levels XX% adjusted for These cash fiscal rating NJNG flows consistent that our effectively. which

million our our providing expect cash and dividends We other $XXX flow in operations a corporate plan, needs. XXXX, million to and be foundation between for fiscal $XXX capital from solid

objectives, by first strength and our a on the track balance our reflects sheet on performance cash flows. long-term diversified supported remain strategy. summary, steady In We quarter our deliver portfolio of disciplined growth and solid financial to

With decarbonization that, our initiatives I'll discussion turn the Slide on back XX. call Steve for on to a

Stephen D. Westhoven

fiscal we month, This well pipeline renewable In Thanks, and NJR's XXXX Sustainability for issued vision our detailed in accomplishments our with Roberto. of the evolving Corporate transparency energy long-term and reflects a we commitment landscape. to existing as as energy role Last emissions stakeholders and infrastructure. leadership our report, Report. the our reduction

in as energy Our such record capture. achievements, by as highlighted sustainability remain notable as innovations, business-driven investments new advancement efficiency carbon of initiatives and the such

to year, our are a capture operate our headquarters, technology New Gas renewable natural install feeling New distributed with and fleet Jersey portion also at Natural the became first and we the operations diesel. gas During carbon Jersey of utility in

This a in pursuing sustainable work future driving to solutions. energy leadership our energy underscores innovative, our clean more commitment and reliable,

supports diversified Jersey across asset positioned is slide. X%. X% sustained NJR well solar our continued at industry-leading growth an and growth conclude for at to businesses Gateway. New business NFEPS long-term include investments and on Gas, model rate Leaf Adelphia CEV next Key the diversified River drivers Natural at long-term growth To we highlight enhanced utilization as customer of NJR's

with we the businesses. through of the across operating we strong all season, As our winter performance progress pleased are

Our work. the for highlight talent resilience thank employees our to important, recognize the physical results hard and and our I'd their our infrastructure all and of equally like team. dedication of

call And with open questions. for the that, up let's

Operator

Instructions] [Operator

Guggenheim of question And Pourreza Shar Securities. with our from line first comes the

Shahriar Pourreza

want out a the residential sense lost earnings. of couple from gain back you for about I $XXX guide out million on that's feel to get that 'XX to sale, add pennies there. from strip we just a how the If

get on you it, recurring we QX the more trending you 'XX. have are curious range basis, how to just going trending but for guess winter be I about and out monitoring know a to $X.XX within 'XX? you for how a expectations. I which So highlighted you're lot, for slightly EPS you're below there matters

Roberto Bel

Sure. This is Roberto.

guidance have million our there, not point in out We're that this So million. changing to $XXX $XXX time. at we

Shahriar Pourreza

Understood. you're trending But within any how on that range? sense

Roberto Bel

right I all That's range. our in can well now. you tell We're

Shahriar Pourreza

obviously, good mean, on That's perfect. And then Okay. CEV, I just growth.

slightly Should footprint year outside of what's pull any maybe Jersey. whether discussions, the I think that? assume any of we of You're sense shift are as especially around ago. And about a guess IRI to we seeing uncertainties opportunities outside mix impacting on your that larger more the New driving of will the continue versus forward demand?

Stephen D. Westhoven

and diversified have are portfolio, towards and that jurisdictions and solar supportive purposely has place in we've that been on solar for years that Shar, Yes. friendly focused really strategy many the landscape.

you megawatts is XX at the service. look that when portfolio, basically got So -- in we've

XX You under got construction. megawatts

X project pipeline. about got in gigawatt You our

than we CapEx we over next certainly So what quite years. investment robust as the of and more few a bit need projected for

of kind provisions, currently forward. IRA in our as the project harbor move we we based as on pipeline the safe see As don't near-term far impacts any past

all business. referenced So it's really business as usual, you metrics supporting that the the and

good place. So in a we're

Operator

with Your next Sunderland JPMorgan. question of comes the Richard line from

Richard Sunderland

Services. order this for year. to and what able realize cold Maybe magnitude basis snaps don't the you're upside know during on Energy last frame Energy Services there's market month's way winter to last any if versus starting Any on on an I of color opportunities

Just any there. thoughts

Stephen D. Westhoven

value energy of existing weather constructive really our business our all just The services infrastructure of Yes. all and these only need. periods shows the peak but not was infrastructure of businesses, of across

to As a the key driver that for grows, the see our infrastructure business. expand market certainly we and ability organically more becoming valuable our as just

event we've next that to say update all and happened, that's this appropriate. think market a As far reference as in of about to quite left. winter point we'll look as that And And at got the about forward, the as how time. bit we'll that we the quarter,

Richard Sunderland

but early, I typical for? watch in window I it's the the I'm are Understood. process. procedural turning we what there settlement Adelphia case And rate should curious schedule dates to guess is. key any realize the then

Stephen D. Westhoven

years quite typical we case. It's verifying several just bit rate It's that money Yes. the was initial of ago. a during really which construction, a spent

for proceed that. of any settled said we to XXXX section regular the rate forward in changed and expect this sometime and from haven't be so So case we we

we about in we're that's color can the all since the regulatory now So right proceeding. that give

Operator

Gabe of Moreen Mizuho. line And the question with your next comes from

Gabriel Moreen

on get in I ask spent the If range. and you what to you going timing get we intended, of that range? Was target guess, spend to expect of this the to year-to-date you a CEV is relative to for as CapEx I midpoint still there could guess, what you're just, the just to this and CEV maybe should uncertainty potential range kind to acceleration of spend I around of CapEx kind whether the to midpoint Or year. the

Roberto Bel

this -- is so Roberto. Yes,

last So there. what range This we our for did than out you is for year. this year, higher CEV CapEx see for guidance what is

So from but for can to in is within the an year be you expect consider well presentation. range our acceleration, our guidance that that perspective, yes, we

Gabriel Moreen

quarter think we additional about case IIP, -- I Thanks, about far that asked rearview? the know last as a your potential renewing as Roberto. the any is follow-on rate this the in I thoughts to And

Patrick Migliaccio

Pat question. Thanks the it's Migliaccio. Gabe, for

$XXX ramps the through constructive will we That 'XX. a filing reminder, efficiency fiscal of rates up time. in do over have a We with year as effective close That record investment forecasted a approved of current really has XXXX. level IIP spending Just had out energy that million.

as far to we'll evaluate have a or we As you IIP and report. success follow-on something update when that

Operator

[Operator Instructions]

next Your of line question comes Morningstar. Travis Miller with from the

Travis Miller

midstream on business. operations your my the January question of asked Richard

any of the of forward about that hearing if And could not, treatment. wondering Was remind the you the of rate then But the regulatory case? look capital that us quarter. of that included in side So what's next SAVEGREEN, if to program. recovery

Patrick Migliaccio

Migliaccio. it's Travis, Pat

not writers. our little is rate base filings. It spend infrastructure a a our separate filing So operates SAVEGREEN case is that like in included

So investment as make each we annual investment. recover year that we

our complexion that's as real-time investment consider our we we when capital to possibly So get. near recoveries of could

Travis Miller

directly question broader solar a capital have either to possibly Is then And tariffs. more Perfect. going equipment the Okay. on that about program getting someone to on impact asked investment any you even since the execute build-out. that or need the

Stephen D. Westhoven

just business about from and guess, talked We expect don't safe Steve. harbor out the due general we is impacts what's like things any growth. to this from regulatory construct and point our Travis, on this that, provisions time, in in I the before. of going At the, impacts

Travis Miller

just Okay. supplies your operations And need no solar stuff? and impact stuff like for your that utility or the on equipment aside for regular from

Stephen D. Westhoven

anything there's utility, if think point in time. look overall the don't I makeup, most is that at at No, labor. it's significant When our at you look of especially you this

materials portion smaller it. any would would of is of a I that would quickly expect work kind have So be through. issues

monitor So it a any but this in going point not to we'll impacts we as as at It's no this forward, have it expectation time. seeing issue. moves be big fluid, of

Operator

would it And like I'm to to turn Prior remarks. for Adam time. showing this no closing back further questions I at

Adam Prior

us. for you of all to thanks and much, so joining Thanks

Thanks and have good rest day. As your NJR, your investment a always, we of in interest again. and appreciate

Operator

And concludes this call. today's you. Thank conference

disconnect. now may You

New Jersey Resources (NJR) 4 Feb 252025 Q1 Earnings call transcript