New Jersey Resources (NJR) Q1 2025 Earnings Call February 04, 2025 10:00 AM ET Company Participants Adam Prior - Director of Investor RelationsStephen Westhoven - CEO & PresidentRoberto Bel - SVP and CFOShar Pourreza - Senior Managing DirectorGabriel Moreen - Managing DirectorPatrick Migliaccio - Senior VP & COO of New Jersey Natural Gas Conference Call Participants Richard Sunderland - AnalystTravis Miller - Analyst Operator Thank you for standing by. My name is Frila, and I will be your conference operato ...

February 2025 Investor Presentation Fiscal 2025 First Quarter Financial Results Forward-Looking Statements and Non-GAAP Measures Forward-Looking Statements This presentation includes the non-GAAP financial measures NFE/net financial loss, NFE per basic share, financial margin, utility gross margin, adjusted funds from operations and adjusted debt. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be fo ...

Financial Performance - Fiscal 2025 first-quarter consolidated net income was $131.3 million, or $1.32 per share, compared to $89.4 million, or $0.91 per share, in the same period of fiscal 2024, representing a 47% increase in net income [3]. - Consolidated net financial earnings (NFE) for the first quarter were $128.9 million, or $1.29 per share, up from $72.4 million, or $0.74 per share, in the prior year, reflecting a 78% increase [4]. - Total operating revenues for Q1 2025 were $488.361 million, an increase of 4.9% from $467.210 million in Q1 2024 [27]. - Net income for Q1 2025 was $131.319 million, up 47% from $89.411 million in Q1 2024 [27]. - Basic earnings per share increased to $1.32 in Q1 2025, compared to $0.91 in Q1 2024, reflecting a 45.1% growth [27]. - Total operating expenses decreased to $298.784 million in Q1 2025 from $331.391 million in Q1 2024, a reduction of 9.8% [27]. Segment Performance - New Jersey Natural Gas (NJNG) reported NFE of $66.9 million for the first quarter, compared to $51.4 million in fiscal 2024, driven by a base rate increase of $157.0 million effective November 21, 2024 [8]. - Clean Energy Ventures (CEV) achieved NFE of $48.1 million, significantly up from $10.5 million in the same quarter last year, primarily due to a gain on the sale of its residential solar portfolio [11]. - Energy Services experienced a decline in operating revenues to $86.308 million, down 13.5% from $99.668 million in Q1 2024 [33]. - Clean Energy Ventures reported total operating revenues of $26,406,000, down from $35,295,000, a decrease of 25.1% [40]. - Storage and Transportation operating revenues increased to $26,628,000, up from $23,862,000, reflecting a growth of 11.7% [42]. - Home Services and Other segment reported operating revenues of $15,794,000, an increase from $14,834,000, representing a growth of 6.5% [43]. Customer and Market Growth - The company expects to add approximately 3,000 new customers in the first quarter, contributing an estimated $2.0 million in incremental utility gross margin annually [9]. - Total customers reached 586,092, up from 579,600, indicating a growth of 1.9% [38]. Capital Expenditures and Investments - Capital expenditures for the first quarter totaled $149.6 million, an increase from $118.1 million in the same period last year, primarily due to higher spending at NJNG [16]. - NJNG's Infrastructure Investment Program (IIP) includes a five-year, $150 million investment to enhance the safety and reliability of its natural gas distribution system [9]. - The SAVEGREEN® energy efficiency program received approval for a new $385.6 million initiative, the largest in NJNG's history, effective January 1, 2025 [10]. Guidance and Projections - NJR maintained its fiscal 2025 NFE per share guidance range of $3.05 to $3.20, which is higher than the long-term growth target of 7 to 9% [6]. - NJR's expected NFE contributions for fiscal 2025 are projected as follows: NJNG 67-73%, CEV 20-25%, Storage and Transportation 3-7%, Energy Services 4-7%, and Home Services and Other 0-1% [7]. Operational Metrics - Utility operating revenues rose to $333.427 million, a 13.8% increase from $293.093 million in the same period last year [27]. - The gross margin for natural gas distribution was $181.284 million, up from $155.797 million, representing a 16.4% increase [32]. - Total System Throughput increased to 27.2 Bcf from 23.4 Bcf, a rise of 16.3% year-over-year [38]. - Operating Income for Clean Energy Ventures surged to $64,274,000, compared to $18,323,000 in Q1 2024, indicating a substantial increase of 251.5% [40].

Investors might want to bet on New Jersey Resources (NJR) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Si ...

Domestic-focused, capital-intensive companies in the Zacks Utilities sector continue to perform steadily, as the demand for utility services hardly fluctuates with the vagaries of the economy. Cost management initiatives, new electric, water and natural gas rates and customer growth continue to help the utility sector maintain operational stability.Utility operation is capital intensive, as consistent investment is required to upgrade, maintain and replace older wires and electric poles, replace old pipelin ...

Core Points - FanDuel Group is sponsoring a day of free tolls and rides in New Jersey and Pennsylvania on December 18, 2024, in collaboration with local transportation authorities [2][4][5] - The initiative aims to enhance customer engagement and promote the FanDuel Casino brand [5] Group 1: Free Tolls and Rides - Free tolls will be available at the South Jersey Transportation Authority's Atlantic City Expressway Pleasantville Toll Plaza from 12 am to 11:59 pm ET [4] - PATH rides will be free systemwide from 8:00 pm to 11:00 pm ET [4] - In Pennsylvania, the SEPTA Broad Street Line will offer free rides from 6:00 pm to 12:00 am ET [4] Group 2: Company Overview - FanDuel Group is a leading mobile gaming company in the United States, with a diverse portfolio including sports betting, iGaming, and daily fantasy sports [6] - The company operates in all 50 states, serving approximately 17 million customers and maintaining 25 retail locations [6] - FanDuel Group is a subsidiary of Flutter Entertainment, which is the largest sports betting and gaming operator globally [6]

New Jersey Resources Corporation (NYSE:NJR) Q4 2024 Earnings Call Transcript November 26, 2024 10:00 AM ET Company Participants Adam Prior - Director of IR Steve Westhoven - President and CEO Roberto Bel - SVP and CFO Pat Migliaccio - SVP and COO Conference Call Participants Robert Mosca - Mizuho Securities Chris Ellinghaus - Seibert Williams Shank Travis Miller - Morningstar Operator Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would ...

November 2024 Investor Presentation Fiscal 2024 Financial Results Forward-Looking Statements and Non-GAAP Measures Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. NJR cautions readers that the assumptions forming the basis for forward-looking statements include many factors that ...

Natural Gas Supply and Management - NJNG purchased natural gas from approximately 56 suppliers in fiscal 2024, with over 10% sourced from two suppliers[51]. - NJNG maintains firm transportation and storage capacity agreements totaling 914,163 Dths per day with various pipeline companies[53]. - NJNG has additional storage contracts providing 102,941 Dths of maximum daily deliverability from storage fields[54]. - NJNG's LNG facilities have a combined deliverability of approximately 170,000 Dths/day, representing about 17% of its estimated peak day sendout[57]. - In fiscal 2024, the company managed and sold 125.3 Bcf of natural gas, compared to 150.4 Bcf in fiscal 2023[82]. - As of September 30, 2024, the company had 13.1 Bcf of natural gas in storage, down from 14.6 Bcf as of September 30, 2023[82]. - The company has an average of approximately 16.5 Bcf of firm storage and 0.6 Bcf of firm transportation capacity[84]. - ES purchased more than 10% of its natural gas from one supplier in fiscal 2024, with no material adverse impact expected from the loss of this supplier[79]. - NJNG expects to renegotiate and restructure its contract portfolio to meet changing natural gas supply needs[61]. - The ability to deliver natural gas relies on third-party pipelines and storage facilities, and disruptions could materially impact financial condition and operations[119]. - The inability to develop additional interstate pipeline infrastructure could impact the supply and price of natural gas, affecting financial results[146]. Customer Base and Growth - As of September 30, 2024, NJNG had 14,470 residential and 7,972 commercial and industrial customers utilizing transportation service[66]. - Customer growth is dependent on the housing market and conversion from other fuel sources, with potential adverse impacts during economic downturns[150]. Environmental and Regulatory Considerations - The estimated future expenditures for environmental remediation of former MGP sites range from approximately $130.9 million to $194.6 million[93]. - NJNG recorded an MGP remediation liability of $161.7 million on the Consolidated Balance Sheets as of September 30, 2024[94]. - The company is subject to substantial regulatory oversight, which may result in increased costs and impact earnings[136]. - Changes in regulations, particularly related to climate change and greenhouse gas emissions, could affect operational costs and growth opportunities[142]. - The company aims to reduce operational emissions by 60% from 2006 levels by 2030 and achieve net-zero carbon emissions by 2050, which may require significant investments[142]. - Current state regulatory incentives and federal tax credits are critical for the economic viability of solar projects, and any adverse changes could negatively impact returns[114]. Financial Performance and Risks - The company’s earnings and cash flows are dependent on optimizing its portfolio of natural gas storage and pipeline assets, which may be affected by pricing dynamics and supply changes[118]. - The company actively hedges against natural gas price fluctuations, but failures in third-party performance could materially impact financial condition[147]. - The company is exposed to market risk in its wholesale business, particularly in its transportation and storage portfolios, which could negatively impact cash flows if contracts are renewed at less favorable terms[153]. - Credit rating downgrades could increase financing costs and limit access to financial markets, negatively affecting the company's ability to execute operating strategies[162]. - Significant regulatory assets recorded by the company could be disallowed for recovery from customers, impacting financial condition and cash flows[177]. - Changes in tax laws or adverse outcomes from tax authority examinations may negatively affect the company's financial results and cash flows[174]. Workforce and Operational Challenges - As of September 30, 2024, the company employed 1,372 employees, an increase from 1,350 employees as of September 30, 2023[96]. - Attracting and retaining a qualified workforce is essential for implementing business strategy, and failure to do so could adversely affect operations[120]. - The company has implemented a 401(k) Plan with an employer match of 85% of the first 6% of base compensation contributed by employees[104]. - The company is committed to fostering a culture of safety and has invested in employee training and development programs[99]. Market and Economic Influences - Weather patterns significantly impact demand for natural gas, with milder winters or cooler summers potentially leading to reduced revenues[124]. - Extreme weather events can disrupt energy generation and distribution, increasing costs and affecting the ability to serve customers reliably[126]. - Climate change poses risks that could increase costs and impact demand for natural gas, affecting the economic health of the regions in which the company operates[127]. - The company faces risks from natural disasters, pandemics, and geopolitical events, which could disrupt operations and financial results[128]. - Inflation and increased natural gas costs may adversely affect customer collections, potentially increasing the company's level of indebtedness[154]. - Rapid increases in the price of purchased gas could lead to a significant rise in short-term debt, as the company must pay suppliers upfront, impacting cash flow and accounts receivable[155]. Solar Energy Investments - Clean Energy Ventures (CEV) operates approximately 477 MW of solar capacity across six states as of September 30, 2024[68]. - CEV completed the sale of its 91 MW residential solar asset portfolio on November 25, 2024[70]. - The company is facing substantial risks and uncertainties related to its investments in solar energy projects, including potential delays in construction and regulatory approvals[113]. - The company’s energy investments require timely governmental approvals and financing, and delays could impair financial condition and results[123]. - Supply chain disruptions and reliance on third-party vendors could adversely affect the company's operations and financial performance[148].

Financial Performance - Fiscal 2024 consolidated net income was $289.8 million, or $2.94 per share, compared to $264.7 million, or $2.73 per share, in fiscal 2023, representing a 9.8% increase in net income [2]. - Fiscal 2024 fourth-quarter net income totaled $91.1 million, or $0.92 per share, compared to $37.0 million, or $0.38 per share, for the same period in fiscal 2023, marking a 146.8% increase [2]. - Fiscal 2024 consolidated net financial earnings (NFE) were $290.8 million, or $2.95 per share, compared to $261.8 million, or $2.70 per share, in fiscal 2023, reflecting a 11.1% increase [2]. - The company achieved the higher end of its fiscal 2024 NFEPS guidance range of $2.85 to $3.00, which was raised in February 2024 [2]. - The total net financial earnings for the three months ended September 30, 2024, were $88,707 thousand, compared to $29,563 thousand for the same period in 2023, reflecting a substantial increase of 199.5% [40]. - Net income for the three months ended September 30, 2024, was $91,126 thousand, representing a significant increase of 146.1% from $37,024 thousand in the prior year [38]. - Basic earnings per share for the three months ended September 30, 2024, were $0.92, up from $0.38 for the same period in 2023, reflecting a growth of 142.1% [38]. - The company reported a financial margin of $96,302,000 for Q4 2024, compared to $4,255,000 in Q4 2023, reflecting a significant growth [41]. Customer Growth and Utility Operations - New Jersey Natural Gas (NJNG) added 8,079 new customers during fiscal 2024, bringing the total to approximately 583,000 customers, expected to contribute $6.8 million in incremental utility gross margin annually [14]. - NJNG received approval for a $157.0 million increase to its base rates, effective November 21, 2024, with an overall rate of return on rate base of 7.08% [15]. - NJNG reported fiscal 2024 NFE of $133.4 million, compared to $131.4 million in fiscal 2023, with a fourth-quarter net financial loss of $(19.0) million, an improvement from $(24.8) million in the same period last year [13]. - Total Utility Gross Margin for the year ended September 30, 2024, was $544,870,000, up 1.5% from $536,634,000 in the previous year [44]. - Operating revenues for Natural Gas Distribution were $105,091,000 in Q4 2024, a decrease of 2.4% from $108,741,000 in Q4 2023 [44]. Segment Performance - Energy Services reported fiscal 2024 NFE of $111.5 million, significantly up from $68.5 million in fiscal 2023, with fourth-quarter NFE at $68.3 million compared to a net financial loss of $(3.5) million in the same period last year [23]. - Clean Energy Ventures (CEV) reported fiscal 2024 NFE of $33.7 million, down from $44.5 million in fiscal 2023, with fourth-quarter NFE at $35.5 million compared to $50.2 million in the same period last year [20]. - Storage and Transportation reported fiscal 2024 NFE of $12.2 million, slightly down from $12.8 million in fiscal 2023, with fourth-quarter NFE at $2.5 million compared to $1.8 million last year [22]. - Operating revenues for the Energy Services segment reached $178,420,000 in Q4 2024, compared to $102,932,000 in Q4 2023, representing a 73% increase [41]. - The Clean Energy Ventures segment generated operating revenues of $71,295,000 in Q4 2024, down from $83,755,000 in Q4 2023, a decrease of 15% [42]. Capital Expenditures and Investments - Capital expenditures for fiscal 2024 were $575.1 million, up from $537.3 million in fiscal 2023, primarily due to higher expenditures at NJNG [25]. - A new $385.6 million energy efficiency program, SAVEGREEN®, was approved to begin on January 1, 2025, continuing through June 30, 2027 [3]. - SAVEGREEN® invested $71.3 million in fiscal 2024, recovering $28.6 million through its energy efficiency rate, and a new $385.6 million SAVEGREEN® program was approved for January 1, 2025 [19]. - NJNG's Infrastructure Investment Program (IIP) is a five-year, $150 million program, with $42.2 million spent in fiscal 2024, resulting in a $4.7 million revenue increase approved by the BPU effective October 1, 2024 [16]. Revenue and Expense Trends - Total operating revenues for the three months ended September 30, 2024, were $395,780 thousand, an increase of 19.4% compared to $331,325 thousand for the same period in 2023 [38]. - Total operating expenses decreased to $249,653 thousand for the three months ended September 30, 2024, down from $267,032 thousand in the prior year, a reduction of 6.5% [38]. - Nonutility operating revenues increased to $291,027 thousand for the three months ended September 30, 2024, compared to $222,921 thousand in the same period of 2023, a growth of 30.5% [38]. - Operating income for the three months ended September 30, 2024, was $146,127 thousand, compared to $64,293 thousand in the same quarter of 2023, marking an increase of 127.5% [38]. Market Performance - The company’s market price at September 30, 2024, was $47.20, up from $40.63 at the same date in 2023, reflecting a 16% increase [43]. - The company reported other income of $10,237 thousand for the three months ended September 30, 2024, slightly down from $10,938 thousand in the same period of 2023 [38].