SJI - Earnings call transcript Q4 2017 | South Jersey Industries Inc

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Operator

Good day, ladies and gentlemen and welcome to the Q4 2017 South Jersey Industries earnings conference call. My name is Mark and I will be your operator for today. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions]. to Marissa conference Stakeholder Travaline, like host to Relations. now today, for Senior would turn over the your I Director of Please proceed.

Marissa Travaline

SJI's you as results Good joining fiscal fourth review for Thank full-year quarter XXXX. morning. year and for we us

present Clark, me Steve today are CEO CFO. our Mike Joining on call President Renna, to and today our and

prepared management help address to also several have available additional We following members comments. our team of our senior questions

GAAP yesterday in-depth an after Our website appear documents. earnings. the review issued earnings and non-GAAP release call and market and in on intended the non-GAAP at economic using XX-K our comparable release measure our provides Reconciliations close accompany to earnings both measures the a GAAP economic were and of slide both The of the earnings on the associated of of basis were the to posted www.sjindustries.com.

the both Forms over Mike initiatives on XX-K and turn the Actual our of future those from Let references and a with opportunities me With to call, in statements said, current our discuss including these performance various company's context I and like Renna, be the will result to SJI. note file in may throughout to as that of that to important plans expectations, indicated we by CEO, results factors differ discussed would making plan. the today's SEC. for Q call future those materially strategic

Mike Renna

guidance we $X.XX largely earnings of utility strong morning of share our everyone. generated $X.XX. long-term performance Good Marissa. another businesses, Driven to exceeded $X.XX, step which per our in you marked by wholesale economic and our of our Thank range significant forward strategic objectives. XXXX support in

reflect strong to and a results ongoing customer Gas' commitment growth of Jersey South infrastructure modernization. our combination

X,XXX the with incremental growth the X.X%, roughly a from construction. income. with growing customer the our gross of commercial than average. basis, and million XX% worth by This new customers combined net national was in well customer count result above On from conversions was XX% year, year-over-year more For grew growth demand $X.X

past reinforce our we infrastructure made the investments nine system under tracking modernize programs. substantial and Over proved have years, to our

the are our period bare we replace current program million of investment also filed main invest which to the over Public Board XXXX extend upgrade replacement Jersey reliability to with cast under storm will million further along through and petition New hardening proposes year, We five-year Late iron Islands. the Utilities we steel totaling system. a to $XXX the second our Barrier the program. accelerated This of a in $XXX and system in year infrastructure last remaining distribution our extension

the We program will months. this in approved critical are coming be hopeful

FERC issued $X.X further the midstream January the pipeline need access. higher $XXX days the nearly equity year. Finally new in XXXX revenues base saw XXXX. with base drove Recently, of of prices programs are Benefits NJDEP gas natural December savings that in one in another that could X.X% equity cost on PennEast PennEast citing PennEast case complete, BPU for resulted FERC's milestone ratio earlier necessity million, to from in billion. a annual economic of in that segment, our With filed a spikes million and add convenience The $XX.X XX in prices return certificate receiving reliability expected review. the to affords. that environmental pipeline customers now areas $XX reconsideration submitted a when a are and accelerated and rate the brought of costs during protect an region and case will January. In review income closer for million The our help request and rates and additive FERC environmental customers significant step and net the It XX.X%. approval to rate also our of to marked are current that of in public our infrastructure pipeline

to that project bistate late and of motion needed and expect this construction to We be denied pursue in securing the XXXX. remain to vital approvals commission committed state

in remains close of to forward. Elkton to occurring beginning work and earnings acquisition approval which Gas into the growth opportunities as financing we our beyond placement in the closing Our current and the Service pending and of NJBPU continues Elizabethtown Integration over to acquisition growth are million activities agreed plan. and next transformative far move transaction that Maryland long-term to Public visibility execute mid-XXXX five-year have private we providing exist supports our with quality, both on commitment months. to started and January obtaining The toward track This $XXX a earnings ongoing we several Commission.

last significant XXXX. We a and our a December as weather for our of our in wholesale warm continue of financing focus approach on responsible earlier offsetting funding. group of equity mix plans a provided few businesses, with boost sources days the as experienced Within well the other debt return winter the of in unseasonably to consideration weather nonutility

business three and now generating serve states. continues we merchant to Our fuel management six grow facilities in

shifted development. optimizing by we with portion to of of existing and project In nonutility our this the business at encouraged business, ahead, XXXX production assets. in the from three attractive development of an coming online focus we pipeline process prospects our energy Looking additional have are projects in services

As tax XXXX as as CHP from Thermal to exceed represented flagship Operationally, time from Marina production solar since credits earnings. investment our first our that fleet to did a well project our contribute result, the continues not expectations. XXXX

to challenges from our a flatter as stemming fleet SREC from our production well renewable declining to Jersey, trajectory However, from New and electricity electricity prices. are we seeing landfill gas performance also as units and

years in shift core our strategy income communications, other We that investor streams. continue recognize success to we our have for a of support strategic noted regulated broader laid drive reduce across The accelerate opportunities in long-term growth high success XXXX. progress corporate As two businesses explore remain risk, foundation quality, our we strong as to and our and objectives. that agile our support the we nonutility last very the demands that we of

full-year regulated, year and more you. able better earnings pleased are to be the targets As mix to able we with guidance in our becomes XXXX I am sooner share to business

For This to roughly of exclusive of experienced $X.XX to are related we pending our range is and earnings targeting we Guidance from to impacts the benefit of acquisitions. the $X.XX January. activities XXXX, Elizabethtown $X.XX and of a $X.XX. is to however inclusive share reform economic colder $X.XX both the in per weather related tax benefit wholesale Elkton

guidance of impact to We the are acquisition approval. upon our to the final reflect committed updating

reflect our business, $XXX to also the we previously impacts earnings increased reform that up target we and we to Finally, the stated. closes. that, of fourth the update I the results. have this XXXX as detail benefits economic With acquisition our a will turn result will our quarter over full-year of number tax to million, form transaction Steve as after to again, XXXX million the well call within Once $XXX

Steve Clark

Thanks Mike.

both well. to and As information Marissa available with release made review provide the earlier, is to encourage you I GAAP to slide as deck that noted detailed would you you the earnings regarding earnings and information

measure earnings valuable of $XX.X totaled economic call, focus compared our economic as For will as this we our into provides on measure million business. with do, insights performance believes $X.XX prior we that that the year that for the offering XXXX. of year. the non-GAAP note $XXX.X the earnings reflecting our earnings discussion of with that full-year normally with $X.XX economic million EPS of management May as purposes in this equity compared dilution the Economic XXXX. we were associated we totaled the And was prior still of do as in year, in of made the SJI's

For development investment that XXXX credits planned earnings $XX.X and fourth investment zero and XXXX, economic basis, $X.XX EPS strategic quarter the of fourth economic XXXX. and absence On in were comparisons contribution in XXXX. of economic $XX declined XXXX at by million were ITCs resulted million respectively for quarter of of EPS from compared to in as of impacted tax $X.X elimination $X.XX Quarterly earnings heavily full-year to the the with annual million a with solar earnings. from the in

we the perspective million based updated to quarter assumptions declined in fourth I SREC to future totaled $XX and do our our carrying about These from zero want in fourth $X.X that For values the in of fleet. XXXX. recognized oldest in upon after-tax. to our on solar several prices projects note GAAP projects quarter, a ITCs on quarter, million electric XXXX impairments impairments and the were from primarily

a I fleet is forecasted and continuing cash lack discounted upon are We are of $XX also flows performance. that these value a remind impaired variety of reflective of charges our future the value of under of after-tax carrying million landfill by the non-cash assumptions. everyone based which

solar market expect projects the providing flow New to following closely significant drive longevity and the of successful continue intended we legislative that We efforts continue SJI a to state Jersey's these over time. will cash also in

closer the at a key take drive that business will look we items our year-over-year within our performance lines. individual Now helped

million quarter South $XX earnings contributed Jersey of the exceeding in prior results million for XXXX. Gas of $XX.X

rate produced in roll two growth contribution X XXXX our $XX.X a a These XXXX. $XX.X of AIRP accelerated settlement by as utility base Earnings aggregate of period and $X.X million For into case top contributed infrastructure investments $X.X through the out net same quarter, benefits our million the combined income November We closed earnings within as and programs. our $XX.X with fourth with programs. SHARP totaling investments XXXX. to rates investments effective the the compared increase incremental is II base full-year million from million supported was in in infrastructure from primarily million on

remain of important additions investments in our strong continue We SHARP within drivers remained extension. Customer we our utility expect growth and approval of await to programs existing these within XXXX. AIRP a as

customer served through strengthening months This successful marketing XX conversion our our experienced execution basis growth by complemented slightly ended was program in housing in just base territory December the of total service our to X.X% derived by net the number bringing our customers region's of For a a grew under our market. XX, on XXX,XXX.

earnings those in as nonutility with $XX.X of compared businesses million for economic the side, On million XXXX $XX.X contributed XXXX.

in our I discuss of two the I economic earnings results nonutility impacted the drivers $X.X For quarter, to $XX.X lines. of as provided of million for business our same that nonutility opposed these primary fourth XXXX. million period significant as economic businesses address XXXX, the earnings will

million million housed in First, with as our Group, $XX.X XXXX XXXX. compared contributed Energy $XX.X South wholesale in retail business, commodity and Jersey within

$XX.X quarter advantage to For Energy transportation of earnings earnings in were Group optimize the ability Jersey the XXXX. quarter, which This to area to from of very December the and XXXX extremely offset our contributions as assets around that. a last our end in five recurring warm of cold from the continues optimization our by at in allowed our negative the us performance of management had first as XXXX. improve million helped to Positioning weather businesses days the December take contributed the we experienced to anchored transportation of us of impacts Economic economic is our well versus assets. million South testament portfolio the this weather value $X.X fuel maximize in our

extremely of three six this facilities business, meaningful of benefit remains from operated volume our addition highest and earnings serving the These active also While to from attractive were contracts to-date we number bring online nine. have the are management expected contracts will fuel projected to have we wholesale contracts to XXXX. ability fuel to supply management the optimize we come in three

million with production economic earnings loss million $X.X Energy XXXX. economic an earnings energy in Jersey business, compared $XX.X XXXX Services, in South of of posted as Our

elimination business. For earnings tax variance a the allocated development the Remainder related expenses of decision generation this $X.X to in credits in forego from in did versus in economic XXXX. business significantly not due in $X.X facilities our which same from was produced to to to of continued Maryland, in and XXXX legal lower in the overhead XXXX benefit recur resulting the quarter, a loss performance period comparison in interest was solar and weak million XXXX in of economic settlement XXXX. of the million SREC landfill unfavorable in amended prices million this $X.X increased of business additional investment previously Most an

that, that answer want questions from conclude facilities With to and the XXXX XXX,XXX production note will line just with may remarks compared you we have. in overall solar open However, inXXXX. to prepared increased to over SRECs any our I generated do our XXX,XXX

Operator

Instructions]. [Operator

proceed. Your first Please question Lyons. Hilliard from from comes Joyce Spencer

Spencer Joyce

here. Good the taking call close a and year to on congrats Hi. guys. morning for the Thanks good

Mike Renna

Spencer. Thanks

Spencer Joyce

here. guess means A I Yes. now. me we what solidly for know couple

the are drive Is the there First, the some items of still $XX that included Or tax for in XXXX, one-time that $X.XX benefit guidance is million that sustainable? plan? part XXXX? XXXX step-up $X.XX the in in

Steve Clark

are ongoing side. no from one-time That's on There obviously nonutility items. operations, our

$XX of in will million Greg’s XXXX the $X.XX a from result businesses. the number to as the by that of go end So growth

Mike Renna

around Spencer, right million that is $X.XX worth XXXX. $X in

big over pretty group Jersey years. Resources So two that's a South the next

Spencer Joyce

statement Okay. next Great. And on assume a we an as work impact will New have to year? the there, ballpark effective but to some least reductions related you Steve, at see, tax side. modeling And guess Commission rate see income utility you to we I income margin some with No savings back that customers? do net simply reduction margin I of that, will Jersey some pass from for perspective, the

Steve Clark

for With XX% to paid range the regard in nonregulated Spencer, probably tax effective just straight our XXXX that's benefit rate, all [indiscernible]. the of about the taxes. obviously Yes. for we business, are them, for year, a

Though BPU utility right. be out reform on of rate utility the sort and it to impacts to exactly is how point choose remains seen the payers. the exactly tax Your

We guess expected on this now are are little are filing [indiscernible] BPU's more the drawn the towards the be of [indiscernible]. of, the BPU per utilities to conclusion New the the all process bit request and in preparing a probably for the I really Jersey in as process in a

Spencer Joyce

though Okay. mean, adjustment standpoint. the but first sort prior statement, kind some we from reduced still in all you have, say, passing of won't are of with rates If of to full margin I margin though income you delay a taxes through a do will, quarter the re-rate make you there? will the setting, some the we if see sort

Dave Robbins

is Dave this Spencer, Robbins.

see utility We to expect that in corporate taxes. income neutral might also to geography lower see be shift, probably will There be lower margins earnings. this you a you but will

Spencer Joyce

better was that a Okay. I couple from Jumping the didn't Perfect. it fairly wrote couple that’s a helpful. still to value we between sort mind in we ago, the write-downs in was years have where I Last I the in can down anomaly. But at had word, what me little of some done to I mean on solar was what I down great, would a New surprised the a rest lack gap front? very comfort a we piece and now. some of Maryland. is is albeit offer of quality, QX sort one the I give a write-down Yes. looking over you quarter sensitive quarter, maybe for of on know Just in written an make just for. I to that solar for what's of small in New still sure old Jersey, some that's a you how see, of stuff portfolio can is Jersey. mean carrying a for potential that's That's guess second. any to write-downs wanted full future? big that books? there

Mike Renna

a at were built the primarily charge levels cost oldest we were that the took built just projects Well, much Spencer, that right what than that higher on were our I is later guess projects the answer, ultimately ones at. now

step that think that back the we what when thing these, So count to obviously you doing operations, benefit you between When the their as to or income from a those are to companies, get One upfront. we recognized impairment when about end anymore. of you to initial of any and modeling, perform more and over from But are [indiscernible] impacts of salvage and out something value your ability have life, the continuing is on doesn't it of challenging. But these, value. a a of at are those lot do or standpoint the lot remember to to statement go continue you varies recognize as taking treatment the we an because was. time

you if really the cash So you you don't forward. don't tax benefit received get that from even a impairment actually going that, any, modeling recognize haven’t in

at we a what had to pass regard pretty valuation go to in impacts we open change marketplace from on the out I we can that. strong things Clearly back continue are impairment, our and go-forward was SREC's guess and basis. there they the day, these will at a what projections But with when contributed, took I be of it, values end standpoint So think despite updated same a have the non-cash producing we level and cash producing the were they to the at to entities are before impairment. the the taken

Spencer Joyce

a then And with services taken can normalized assuming is for to Sticking breakeven Or an Point out helpful. we a for extension, look there? two? maybe this breakeven essentially the well is to is or still Okay. kind reasonable energy landfills I of as energy get Yes. excluding case year the there. year of we the an second, services closer landfills, downside? base a anomaly mean as sort That's

Mike Renna

I to landfill, would is million. Spencer, way we wrote down. They about think $X guess I books our those say, for on probably are the about the

down, the So that wrote almost to down ground. we

forward, much from the a going as is go a but these level So factor forward we bigger be performed. GAAP that just haven't depreciation standpoint, at we will of lower

We address are what to to best this obviously way going the determine is.

Spencer Joyce

Okay.

before have remarks, housekeeping sheet you Just in leverage balance some the the me we balance XX-K? one. exiting on prepared but metrics can just final of kind might see the a the refresh of Steve, you kind sheet, the mentioned of year,

Steve Clark

were right down at XX.X% around right don't me. bit to and I correctly, in front year-end little probably at we If close XX% the level. I XX%, a remember number of have at SJI think over the I utility the

Spencer Joyce

it is equity? equity in - [indiscernible] utility down before But Okay.

Steve Clark

That reflects obviously the write-off.

Spencer Joyce

Yes.

good here. close a I to right. That's had. All on the Congrats Okay. all year

Mike Renna

you. Thank

Operator

comes from from proceed. Capital. Ellinghaus Your Please Williams next Chris question

Chris Ellinghaus

you? Hi. Good are morning everybody. How

Mike Renna

you? are How Great.

Chris Ellinghaus

can terms management adjust on for statutory get nearly in change those thought what the the tax are previous process worth? rate fuel for the our of contracts, in guidance the sort to of supply we new to Steve, those

Steve Clark

Yes.

I correct. think that will be

Chris Ellinghaus

us the debt? there tell that private anything can assume placement? Okay. about you Is was Can we

Steve Clark

The private was Yes. placement debt.

Chris Ellinghaus

I the you going get to install at that Okay. this any last middle to don't some that have all? landfill were want it us I And but did done? did gas when of say year you effect - tell was Can new remember equipment.

Mike Renna

asset time done. it but that Yes. and It wanted effect conclusion came did write desired to had this we effect some the was It not hence we get to the that down.

Chris Ellinghaus

In Okay. things benefits appreciate or like benefits from there immensely, drags which guidance, anything? litigation the tax XXXX are anticipated or any I or

Steve Clark

No. litigation from potential type There is nothing there of in any pending of litigations.

Chris Ellinghaus

Okay. And have do the schedule Elizabethtown a procedural you for in yet New Jersey? lastly, docket

Steve Clark

We Jersey yet. essentially is There don't have yet Board. by approved the Maryland. on. in New signed one Jersey a have one just New all do been draft not in off that We parties formally in have the It's

Chris Ellinghaus

Thanks Great. help. for Okay. the

Operator

Your next proceed. Gaugler question Montgomery. comes from Janney Please Michael of

Michael Gaugler

everyone. morning Good

Mike Renna

Hi Mike.

Michael Gaugler

last Lots call. of in New changes, the since Mike, Jersey

New to environment some playful extent.

seeing if quarter's wondering, and Just that you England any projects, your PennEast are could call? now B.L. impact changes last versus

Mike Renna

Well, change to a a administration. I certainly quarter there I very been it's think quarter, administrations surprise yes, don't this have anyone in that world. the mean has between and views last the on different

he plan. evaluating merits their of intend public master the the as they statement on a the fully far of PennEast As Governor, projects, energy in made our has the that context

him his at I So word. take

in is matter outweigh the any the right non-bias they office. I of front I It's think will again, see a for environmental now England, give I true of with look court. that in although the think would it going and the the is the of appellate a due far economic is costs. front matter, he B.L. benefits that's potential they if same a benefits and expect, that consideration not fair to at and the project And

Michael Gaugler

an think $XXX certainly days, with January, energy of certainly over a would of end thought couple costs That's in I million some December, process. that that serious should early Understood. extra impact money.

Mike Renna

term, supports Well, able of gas New that access and New it benefit Jersey cost an of country Jersey really be is think some of and the the expensive businesses to the project. in again is. the longer least to for I the And the residences incredible ability

Michael Gaugler

re-thoughts. got to you of since on I energy spent you chatter on I in perhaps attention extra more people million way? fence $XXX your any size Have that were coming be that heard would of that places people's might think some to get was and number that has mean the start some that matter the some

Mike Renna

one today's I of sort you, sure although agree impression anybody another. that polarized. the are am things with I it's there not on is and anymore. camp fence my of still would is world There

what think the economy benefits understand the ways I $XXX all again So in the those that am to going are them really and sure million Jersey value period. New XX-day And improve it will economy, of is it, going Jersey project of happened how in understand help are which they in that it otherwise. I and against the to the the convince that will impact those to that New not

Michael Gaugler

Okay. Thank had. all you I That's gentlemen.

Mike Renna

Thank you.

Operator

Your next question comes Please proceed. from Chris Ellinghaus.

Chris Ellinghaus

Hi.

Sorry your Have capital thinking the have a you all? guys. I on budget updated PennEast got at couple.

Greg Nuzzo

but Yes, of is spent capital our budget, as dollars talked before, construction. aren't about continually obviously I lot evaluate a mean Yes, Greg. the we we during this

So much while pushed cost. terms the original, some out returns be the economics. of versus in needle been has and There really move will it doesn't this additional

about this at but nothing continually really significant are to at really point. talk looking We it,

Chris Ellinghaus

a casinos And of couple back have got coming Okay. Atlantic you in City.

of you back customers what rate to sort don't growth some bit? are accelerate number Atlantic coming anticipate word you use, of numbers, should customer that in I that dubious transitory little your customer that a jobs or potentially netting know want to but we Given City, your with would customers,

Mike Renna

a returning some was There about Revel And then and out they Yes. it casinos believe other been with I to a they economy. there of casino. had are out been now, has a there as the it's certainly on benefit rumors reopening Colorado purchased it's again is by company has more to that Rock jobs be I X,XXX mean X,XXX to the when announcement to Hard opened. coming intending there going region.

the a have benefit to market. going to the and that's certainly housing economy So

in lead of expect modest that uptick for in to terms a would us I potential growth. So the customer that would

Chris Ellinghaus

about the have issues their Steve, were of some resolved those been they closed, some to any there the reopen? ability issues things terms of casinos of in when resolved? tax Have state

Steve Clark

you there those issues I don't of I and think the deed Showboat the in whether were have know about are what not been issues resolved. terms or written. is some way talking was

Although I the casino, suspect enough there and would and going there folks work that if it table to is is reopen to property opportunity a the to momentum a as negotiating go that behind are out those differences.

Chris Ellinghaus

sure customer be following by the are up a And inactive region? significant little could Okay. on that any casino to coming there growth those employees bit, question new meters filled back theoretically the possible

Mike Renna

thing, the online. a put dormant comes an in The check uptick year usables, aware new a which in expected, meter Cape back yes, mean will in are real there to been see for terms is an I thing our and but potential been do Well, of May as it where I for mentioned. is that's see seeing recession, two had Dave I things we in way. meters, new are Chris, I those you has area likely of construction when those think first can are one that's monitor numbers an uptick one as to we one prior potentially counties. stock is to And of in certainly to in the regions there the construction it, typically certainly the a that this that talk that Atlantic Except think inactive that been housing County construction uptick relatively new flat. and further been, you is

growth could So customer to it's that very promising our for do what numbers.

Chris Ellinghaus

it. color, I for Thanks guys. Great. appreciate the

Operator

Frank. comes Please of next Your from question David the line proceed.

David Frank

morning. Hi. Yes. Good

Mike Renna

Good morning.

David Frank

talked remarks, you paraphrase, sources maintaining of in balanced extent, something you of prepared financing. that? elaborate considerations Could I and other said am to equity your on about you with to going debt financing and In the

Mike Renna

I can. on non-answer Everything is will give I the you the table. best

to as we Elizabethtown I obviously to regulated acquisition. satisfy got strategy think what coming in our and the at now relates we the want to of And it in primarily right time, financing very the us to is growth be the But do future. we same needs trying that businesses. mindful from is, is where are our

So that underperforming we also some of it's they addressed our some assets, not that questions of had the core in the before really asked forward. Spencer something strategy to are going

earning opportunities, streams exploring again, in our are a shift regulated we accelerate company. to more So to

David Frank

selling are equity you non-core maybe -- for considerations. substituting or and some of kind debt talking that of So and about Is that your -- substituting

Mike Renna

I didn't we selling. exploring. say are But necessarily

David Frank

an right on the you any earn might the that of utilities companies? currently rules when about Got know I because that are quirky owning Question, on company it. company excluded close rate an by base from has is Gas in-state I Elkton that Elizabethtown Jersey ownership sometimes purchase and companies earning these their companies and are out-of-state now there you you And out-of-state New am if owned wondering, is out-of-state companies. get to just on if

Steve Clark

out-of-state Elizabethtown's with its by moved the base entity doesn't umbrella wouldn't base New standalone excluded nothing Southern rate that's It's There back is an impacted in virtue that that. under ownership. that. Jersey of a by any underneath There owning company by change rate being virtue get be own them of

David Frank

Okay.

that So No, and rate they are on over it currently because increase will are nothing, them. to earning base shift purchasing you. you there no full is

Steve Clark

Correct.

David Frank

missing am if I I maybe And your anything the can over fill of my mind, in you if had missing say biggest few the New I would there? in I next years to growth and Okay. in there Am your be say merger program pipeline PennEast growth. replacement utility put Is would something something? I then planned else then would and pipeline you here, growth, Jersey, I normal driver and them line me think in drivers would when up, customer

Mike Renna

No.

think I fair. that's pretty

wouldn't growth a opportunities primary one our both number make just kind think of driver. it's I really combination regulatory I think acquisition. of would the is utilities of I

spending So out laid obviously significant we for programs both capital very utilities. have

So really growth. drive that will

that correct. management we You is the The tremendous million of one. bottomline. are would million I Midstream And business and be accelerated somewhere each another to then infrastructure investments around have amount a course drop is those investment of one contracts another growth niche third. $X Customer think is the fuel a $X.X success had one. to

a will maybe We very m have these to next that see feel online two continue several one out or got will and to of be there we confident lot we XX years. by pretty that be a year able add for and XXXX attractive I prospects

David Frank

trades you talk planned do the stock all Okay. very Is investor's you of this and has I to you ease equity would about guess finally, tremendously your recently. its to a Or it? that what fears? this would significant discount peers close underperformed how gap? at And because

Mike Renna

Yes.

a of it has think out very overhang. think that XXXX. to guidance do equity I But very We strong growth. with put the I had strong a indicate would we certainly lot a

We on our $XXX way of $XXX by are our million or achieving well target XXXX. million to

significantly continue a or we businesses. earnings the We of undervalued. our to very we greater think are improve regulated emphasis on to Generally, regulated as more I quality shifted the

David Frank

Okay. Thank you very much.

Operator

[Operator now proceed. would remarks. Instructions]. it Please for I like Marissa closing to Travaline hand to

Marissa Travaline

XXXX Well, available if or today. please via you can wrap I any always have you we XXX-XXX-XXXX, at additional me questions. before extension And up, thanks joining that at us everybody mtravaline@sjindustries.com. am remember for email contact follow-up

your reached Treasurer, be can time at or our day. have a You Anthony. can XXXX contact email appreciate also really via aanthony@sjindustries.com. Ann I extension and great Ann

Operator

concludes that gentlemen, for Thank you your participation. and Ladies today's conference.

now may disconnect. day. wonderful Have a You

South Jersey Industries (SJIIU) 23 Feb 182017 Q4 Earnings call transcript