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, indicating a secure dividend growth strategy [17] - The company has paid dividends continuously since 1952 and has increased them for over 30 consecutive years, reflecting a commitment to shareholder returns [17] Business Line Data and Key Metrics Changes - New Jersey Natural Gas remains the largest business and foundation of the company, with growth supported by complementary non-utility businesses that leverage market expertise and operational flexibility [18][19] - The company’s solar and midstream businesses are expected to play a significant role in long-term strategy, with a projected increase in service capacity by over 50% in the next two years for CEV and more than double the NFE for storage and transport [19] Market Data and Key Metrics Changes - Natural gas is highlighted as the most affordable energy source, being four times cheaper than electricity and nearly 30% less expensive than national averages for residential customers in New Jersey [15] - Increased demand for energy is noted, particularly due to colder weather, which is expected to lead to higher consumption and bills, although the company has programs to mitigate these costs for customers [15][16] Company Strategy and Development Direction - The company’s growth strategy is focused on providing affordable and reliable energy while addressing infrastructure needs and clean energy solutions [18] - The management emphasizes the importance of balancing shareholder returns with reinvestment for growth, which is fundamental to the company's long-term strategy [17] Management Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by increased demand and colder weather but expresses confidence in the company’s ability to support economic growth and customer needs through new supply initiatives [15][16] - The company is well-positioned to capitalize on growth opportunities in the energy market, particularly in clean energy solutions and infrastructure [18][19] Other Important Information - The company recognized the contributions of retiring board chair Don Correll and welcomed new directors Amy Mansue and Bill Yardley, indicating a focus on strong leadership and governance [9][10] Q&A Session Summary Question: How are you managing energy costs for your customers? - Management highlighted that natural gas is the most affordable heating option and mentioned energy efficiency programs that can reduce bills by up to 30% for participating customers [15][16] Question: Is NJR's dividend growth safe and sustainable? - Management confirmed the security of dividends, citing a long history of continuous payments and annual increases, supported by strong financial metrics [17] Question: What role do NJR's solar and midstream businesses play in the company's long-term strategy? - Management explained that these businesses complement the utility operations and are essential for meeting growing energy needs, with significant growth expected in service capacity [18][19] Question: When will the roads in Brick Township be repaved? - Management stated they would follow up on the specific timing for road repaving, emphasizing their commitment to customer care and service area maintenance [20][21]