New Jersey Resources(US:NJR)2023-08-03 23:56Financial Performance - Total operating revenues for Q3 2023 were $264.1 million, a decrease of 52.2% from $552.3 million in Q3 2022[19] - Operating income for Q3 2023 was $4.7 million, down 84.2% from $29.8 million in Q3 2022[19] - Total operating expenses decreased to $259.3 million in Q3 2023, down 50.5% from $522.5 million in Q3 2022[19] - The company reported a basic earnings per share of $0.02 for Q3 2023, down from $0.14 in Q3 2022[19] - Total operating revenues for the nine months ended June 30, 2023, were $1,631.7 million, a decrease from $2,140.5 million in the same period of 2022, representing a decline of approximately 23.7%[95] - Natural gas utility sales for the nine months ended June 30, 2023, were $749.6 million, down from $786.6 million in 2022, reflecting a decrease of about 4.7%[95] - The company reported $60.179 million in revenue from derivative instruments in Q2 2023, compared to $309.085 million in Q2 2022, a decline of about 80.5%[90] - The company’s net income for the three months ended June 30, 2023, was $1.532 million, a decrease from $13.053 million in the same period of 2022[154] - For the nine months ended June 30, 2023, net financial earnings reached $232,264,000, up from $192,425,000 in the same period of 2022, indicating a year-over-year increase of approximately 20.7%[218] Cash Flow and Assets - Cash flows from operating activities for the nine months ended June 30, 2023, were $387.9 million, an increase of 64.3% from $235.9 million in the same period of 2022[23] - Cash and cash equivalents at the end of Q3 2023 were $1.02 million, a decrease from $27.99 million at the end of Q3 2022[23] - Total assets as of June 30, 2023, were $6.31 billion, compared to $6.26 billion as of September 30, 2022[26] - The total assets as of June 30, 2023, were $6,312,580,000, slightly up from $6,261,416,000 as of September 30, 2022, showing a growth of approximately 0.8%[217] Debt and Liabilities - The company incurred interest expense of $30.1 million in Q3 2023, compared to $21.4 million in Q3 2022, representing an increase of 40.0%[19] - Long-term debt increased to $2,728,669 thousand as of June 30, 2023, compared to $2,485,402 thousand in September 30, 2022, indicating a rise of approximately 9.79%[28] - Total current liabilities decreased significantly to $668,954 thousand as of June 30, 2023, down from $1,104,153 thousand in September 30, 2022, a reduction of about 39.5%[28] - The carrying value of long-term debt was $2,537,845,000, with a fair market value of $2,177,799,000[139] Regulatory and Compliance - The company is evaluating the impact of new accounting standards effective October 1, 2023, related to business combinations and financial instruments[75][77] - The company does not expect the adoption of recent amendments to have a significant impact on its financial position or results of operations[76][78] - NJNG implemented a bill credit and reduced the BGSS rate for residential and small commercial customers, resulting in a revenue reduction of approximately $29.9 million effective March 1, 2023[111] - NJNG's annual IIP filing requested a rate increase for estimated capital expenditures of $31.4 million, updated to actual expenses of approximately $28.2 million, leading to a $3.2 million revenue increase effective October 1, 2023[111] Customer and Market Insights - The company serves approximately 574,900 customers through its regulated natural gas distribution services, indicating a stable customer base[34] - Customer accounts receivable as of June 30, 2023, were $110.5 million, a decrease of $111.8 million from $222.3 million as of September 30, 2022[101] - The balance of customers' credit balances and deposits as of June 30, 2023, was $30.3 million, a decrease from $33.2 million as of September 30, 2022[101] Clean Energy Initiatives - The clean energy subsidiary, NJRCEV, continues to invest in and operate clean energy projects, contributing to the company's growth strategy[36] - Clean Energy Ventures generated $12.994 million in revenue during Q2 2023, slightly up from $12.785 million in Q2 2022[90] - The TREC program, established in December 2019, provides fixed compensation based on project factors for solar energy projects[47] - The SREC IIs program, initiated in July 2021, offers incentives for net metered residential and non-residential solar projects of 5 MW or less[48] Tax and Regulatory Assets - The estimated annual effective tax rate for the nine months ended June 30, 2023, was 21.9%, down from 22.5% for the same period in 2022[173] - The actual reported effective tax rate for the nine months ended June 30, 2023, was 15.9%, significantly lower than the 22.5% reported for the same period in 2022[174] - The Company has tax credit carryforwards of approximately $164.9 million as of June 30, 2023, which have a life of 20 years[177] Capital Expenditures - Capital expenditures for Q3 2023 totaled $117,103,000, a decrease from $139,804,000 in Q3 2022, reflecting a reduction of about 16.4%[217] - The total capital expenditures for the nine months ended June 30, 2023, were $380,214,000, down from $441,114,000 in the same period of 2022, a decrease of about 13.8%[217]