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

Financial Data and Key Metrics Changes - The company has maintained a consistent dividend payout since 1952, increasing it for over 30 consecutive years, with a payout ratio of about 60% [17] - Strong financial discipline supports the dividend, which is a core financial priority for the company [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 energy efficiency programs that can save customers up to 30% on their bills [15][16] - The company is on track to increase service capacity by over 50% in the next two years in its CV segment, while the storage and transport business expects to more than double its NFE over the same period [19] Market Data and Key Metrics Changes - Natural gas is reported to be four times cheaper than electricity, with residential natural gas prices nearly 30% lower than national averages [15] - The company is experiencing increased demand due to colder weather, which is expected to reflect in higher consumption and bills [15] Company Strategy and Development Direction - The growth strategy is supported by a broader portfolio of complementary businesses, including solar and midstream operations, which leverage the company's core strengths [18] - There is a strong demand for clean energy solutions and infrastructure, positioning the company for long-term sustainable growth [19] Management's Comments on Operating Environment and Future Outlook - The management acknowledges the need for new supply to support economic growth and reliability for customers [16] - The company is committed to executing its strategy and delivering performance while rewarding shareholder confidence [23] 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 for the fiscal year ending September 30, 2026 [8] Q&A Session Summary Question: How are you managing energy costs for your customers? - The company emphasizes that natural gas is the most affordable heating option, with programs in place to help mitigate costs through energy efficiency and bill payment assistance [15][16] Question: Is NJR's dividend growth safe and sustainable? - The company assures that dividends are secure, supported by strong financial discipline and a consistent payout ratio [17] Question: What role do NJR's solar and midstream businesses play in the company's long-term strategy? - The management highlights that these businesses complement the utility operations and provide growth opportunities in the energy market [18][19] Question: When will the roads in Brick Township be repaved? - The management commits to addressing the issue but does not provide a specific timeline, indicating that snow may delay the process [21]