New Jersey Resources(US:NJR)2025-02-04 19:50Financial Performance - Total operating revenues increased to $488,361,000 in Q4 2024 from $467,210,000 in Q4 2023, representing a growth of 2.45%[16] - Operating income rose to $189,577,000 in Q4 2024, up from $135,819,000 in Q4 2023, marking an increase of 39.5%[16] - Net income for Q4 2024 was $131,319,000, compared to $89,411,000 in Q4 2023, reflecting a significant increase of 46.8%[16] - Basic earnings per share improved to $1.32 in Q4 2024 from $0.91 in Q4 2023, an increase of 45.1%[16] - The company reported comprehensive income of $131,387,000 for Q4 2024, compared to $89,806,000 in Q4 2023, an increase of 46.2%[17] - Consolidated net income for the three months ended December 31, 2024, was $131.3 million, a 47% increase from $89.4 million in the same period of 2023[191] - NJNG reported net income of $66.9 million, representing a 30% increase from $51.4 million year-over-year[191] - CEV's net income increased to $48.1 million from $10.5 million, reflecting a significant growth driven by the sale of its residential solar asset portfolio[191] Cash Flow and Assets - Cash flows used in operating activities were $(8,955,000) in Q4 2024, a decrease from $46,415,000 in Q4 2023[20] - Total assets increased to $7,193,965,000 as of December 31, 2024, compared to $6,981,645,000 as of September 30, 2024, showing a growth of 3.03%[22] - The company’s cash and cash equivalents at the end of Q4 2024 were $2,563,000, down from $3,429,000 at the end of Q4 2023[20] - The total cash and cash equivalents as of December 31, 2024, amount to $1,908 million, an increase from $1,017 million as of September 30, 2024[49] - Total assets as of December 31, 2024, reached $7.19 billion, up approximately $212.3 million from $6.98 billion as of September 30, 2024[193] Liabilities and Debt - Long-term debt rose to $2,989,473,000 in Q4 2024 from $2,879,464,000 in Q3 2024, an increase of 3.84%[24] - Total current liabilities decreased to $818,665,000 in Q4 2024 from $887,774,000 in Q3 2024, a reduction of 7.77%[24] - NJNG's bank revolving credit facility had an outstanding balance of $143,900,000 as of December 31, 2024, with a weighted average interest rate of 4.67%[127] - The estimated fair value of long-term debt as of December 31, 2024, was $2,391,501,000, compared to a carrying value of $2,767,845,000[114] Revenue Streams - Revenues from natural gas utility sales increased to $296.402 million in 2024, up from $257.875 million in 2023, representing a growth of 14.9%[74] - Total revenues from residential customers increased to $241.473 million in 2024, compared to $213.812 million in 2023, marking an increase of 12.9%[78] - The company recognized $4.9 million and $9.5 million of operating revenue related to pipeline capacity agreements during the three months ended December 31, 2024, and 2023, respectively[45] - The company recognizes revenue from natural gas sales based on regulated tariff rates, with revenues recognized in the period natural gas is delivered and consumed[70] - CEV's commercial solar projects recognize revenue as electricity is generated and transferred to customers, with payments due monthly for the previous month's services[72] Capital Expenditures and Investments - Capital expenditures for the three months ended December 31, 2024, totaled $151.9 million, up from $114.6 million in the same period of 2023, reflecting an increase of approximately 32.5%[167] - The company has long-term contracts for natural gas supply, transportation, and storage with annual fixed charges of approximately $187.8M[154] - NJNG's capital expenditures for the three months ended December 31, 2024, are significant, focusing on customer growth and pipeline integrity management[210] Regulatory and Compliance - The BPU approved the SAVEGREEN program with a total investment of $385.6M, expected to increase annual recoveries by approximately $12.3M starting January 1, 2025[89] - A $157.0M increase to base rates was approved, effective November 21, 2024, with an overall rate of return on rate base of 7.08% and return on common equity of 9.60%[89] - NJNG filed a petition to issue up to $700M in Medium Term Notes over three years[89] - NJNG filed a base rate case requesting a natural gas revenue increase of approximately $222.6M, with a proposed overall rate of return on rate base of 7.57% and return on common equity of 10.42%[209] Environmental and Remediation Efforts - NJNG recorded a remediation liability of approximately $161.0 million related to former Manufactured Gas Plant sites, with estimated future expenditures ranging from $130.9 million to $194.6 million[161] - The company is involved in ongoing environmental remediation efforts with estimated future costs that may impact financial performance, pending regulatory determinations[160] Customer and Market Dynamics - NJNG's operations are influenced by seasonal demand, with most revenues generated during the winter months when natural gas is primarily used for heating[205] - NJNG's customer growth is influenced by political and regulatory policies, the delivered cost of natural gas, interest rates, and general economic conditions[215]