New Jersey Resources(NJR) - 2026 FY - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company has maintained a consistent dividend payout ratio of about 60%, supported by strong financial discipline and a solid balance sheet [17] - NJR has paid dividends continuously since 1952 and has increased them for over 30 consecutive years [17] Business Line Data and Key Metrics Changes - The natural gas segment remains the largest business and foundation of the company, with a focus on affordability as natural gas is four times cheaper than electricity [14][15] - The company is experiencing increased demand for natural gas due to colder weather, which is expected to reflect in higher bills, but energy efficiency programs are in place to help mitigate costs for customers [15][16] - The solar and midstream businesses are integral to the company's growth strategy, leveraging core strengths to provide energy solutions [18][19] Market Data and Key Metrics Changes - Residential natural gas prices in New Jersey are nearly 30% less expensive than national averages, highlighting the company's competitive position in the market [15] Company Strategy and Development Direction - NJR's growth strategy is supported by a diverse portfolio of complementary businesses, which are expected to drive long-term sustainable growth [18][19] - The company is focused on meeting the growing demand for clean energy solutions and infrastructure needs [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by increased demand and colder weather but emphasizes the company's readiness to support economic growth and reliability for customers [16] - The company is optimistic about the prospects for growth in the energy market, particularly in clean energy solutions [18][19] Other Important Information - The board of directors has been re-elected, and the appointment of Deloitte and Touche LLP as the independent registered accounting firm has been ratified [8] Q&A Session Summary Question: How is the company managing energy costs for customers? - The company highlighted that natural gas remains the most affordable heating option, with programs in place to help customers reduce their bills by up to 30% [14][15][16] Question: Is NJR's dividend growth safe and sustainable? - Management confirmed that dividends are secure, with a long history of continuous payments and increases, supported by strong financial metrics [17] Question: What role do NJR's solar and midstream businesses play in the long-term strategy? - The company stated that these businesses complement the utility operations and are essential for meeting growing energy needs [18][19] Question: When will the roads in Brick Township be repaved? - Management indicated they would follow up on the specific timing for road repaving, emphasizing their commitment to customer care [20]