Today, New Jersey Resources Corporation (NYSE: NJR) reported
results for the second quarter of fiscal 2024. Highlights
include:
- Consolidated net income of $120.8 million, compared with $110.2
million in the second quarter of fiscal 2023
- Consolidated net financial earnings (NFE), a non-GAAP financial
measure, of $138.6 million, or $1.41 per share, compared to $112.3
million, or $1.16 per share, in the second quarter of fiscal
2023
- Re-affirmed fiscal 2024 net financial earnings per share
(NFEPS) guidance range of $2.85 to $3.00, which was increased by
$0.15 in February 2024 as a result of strong performance from
Energy Services
- Maintained long-term projected NFEPS growth rate of 7 to 9
percent(1)
- On January 31, 2024, New Jersey Natural Gas (NJNG) filed a rate
case with the New Jersey Board of Public Utilities (BPU), seeking a
$222.6 million increase in delivery rates
Second-quarter fiscal 2024 net income totaled $120.8 million, or
$1.23 per share, compared with $110.2 million, or $1.14 per share,
for the same period in fiscal 2023. Fiscal 2024 year-to-date net
income totaled $210.2 million, or $2.14 per share, compared with
$226.2 million, or $2.34 per share, for the same period in fiscal
2023.
Second-quarter fiscal 2024 NFE totaled $138.6 million, or $1.41
per share, compared with $112.3 million, or $1.16 per share, for
the same period in fiscal 2023. Fiscal 2024 year-to-date NFE
totaled $211.0 million, or $2.15 per share, compared with $222.6
million, or $2.30 per share, for the same period in fiscal
2023.
Management Commentary Steve Westhoven, President and CEO
of New Jersey Resources, stated, "In February, we raised our fiscal
2024 NFEPS guidance range by $0.15 as a result of Energy Services
capitalizing on natural gas price volatility at the beginning of
our second quarter, and we continued to make solid progress on our
organic growth initiatives. These accomplishments reflect the
strength of our diversified business model as well as our
commitment to delivering value for our shareholders."
Key Performance Metrics
Three Months Ended
Six Months Ended
March 31,
March 31,
($ in Thousands)
2024
2023
2024
2023
Net income
$
120,812
$
110,247
$
210,223
$
226,168
Basic EPS
$
1.23
$
1.14
$
2.14
$
2.34
Net financial earnings
$
138,576
$
112,310
$
211,020
$
222,594
Basic net financial earnings per share
$
1.41
$
1.16
$
2.15
$
2.30
(1) NFEPS long-term annual growth
projections are based on the midpoint of the $2.20 - $2.30 initial
guidance range for fiscal 2022, provided on February 1, 2021.
A reconciliation of net income to NFE for the three and six
months ended March 31, 2024 and 2023, is provided below.
Three Months Ended
Six Months Ended
March 31,
March 31,
(Thousands)
2024
2023
2024
2023
Net income
$
120,812
$
110,247
$
210,223
$
226,168
Add:
Unrealized loss (gain) on derivative
instruments and related transactions
25,457
13,971
20,057
(17,532
)
Tax effect
(6,049
)
(3,320
)
(4,767
)
4,167
Effects of economic hedging related to
natural gas inventory
(2,845
)
(11,203
)
(19,073
)
12,769
Tax effect
676
2,662
4,533
(3,035
)
Gain on equity method investment
—
(200
)
—
(200
)
Tax effect
—
50
—
50
NFE tax adjustment
525
103
47
207
Net financial earnings
$
138,576
$
112,310
$
211,020
$
222,594
Weighted Average Shares
Outstanding
Basic
98,377
96,893
98,123
96,689
Diluted
99,102
97,556
98,839
97,346
Basic earnings per share
$
1.23
$
1.14
$
2.14
$
2.34
Add:
Unrealized loss (gain) on derivative
instruments and related transactions
0.25
0.14
0.20
(0.18
)
Tax effect
(0.06
)
(0.03
)
(0.05
)
0.04
Effects of economic hedging related to
natural gas inventory
(0.03
)
(0.12
)
(0.19
)
0.13
Tax effect
0.01
0.03
0.05
(0.03
)
NFE tax adjustment
0.01
—
—
—
Basic net financial earnings per
share
$
1.41
$
1.16
$
2.15
$
2.30
NFE is a measure of earnings based on the elimination of timing
differences to effectively match the earnings effects of the
economic hedges with the physical sale of natural gas, Solar
Renewable Energy Certificates (SRECs) and foreign currency
contracts. Consequently, to reconcile net income and NFE,
current-period unrealized gains and losses on the derivatives are
excluded from NFE as a reconciling item. Realized derivative gains
and losses are also included in current-period net income. However,
NFE includes only realized gains and losses related to natural gas
sold out of inventory, effectively matching the full earnings
effects of the derivatives with realized margins on physical
natural gas flows. NFE also excludes certain transactions
associated with equity method investments, including impairment
charges, which are non-cash charges, and return of capital in
excess of the carrying value of our investment. These are not
indicative of the Company's performance for its ongoing operations.
Included in the tax effects are current and deferred income tax
expense corresponding with the components of NFE.
A table detailing NFE for the three and six months ended March
31, 2024 and 2023, is provided below.
Net financial earnings (loss) by
business unit
Three Months Ended
Six Months Ended
March 31,
March 31,
(Thousands)
2024
2023
2024
2023
New Jersey Natural Gas
$
107,095
$
100,697
$
158,539
$
155,361
Clean Energy Ventures
(5,616
)
(9,379
)
4,906
(12,961
)
Storage and Transportation
1,981
2,450
5,621
8,693
Energy Services
37,644
21,125
45,475
73,658
Home Services and Other
384
813
(216
)
784
Subtotal
141,488
115,706
214,325
225,535
Eliminations
(2,912
)
(3,396
)
(3,305
)
(2,941
)
Total
$
138,576
$
112,310
$
211,020
$
222,594
Fiscal 2024 NFE Guidance:
NJR re-affirmed its fiscal 2024 NFEPS guidance range of $2.85 to
$3.00, which was increased by $0.15 in February 2024, subject to
the risks and uncertainties identified below under "Forward-Looking
Statements."
In fiscal 2024, NJR expects Energy Services will represent a
higher percentage of NFEPS than in prior years due to contributions
from the Asset Management Agreements signed in 2020*. The following
chart represents NJR’s current expected contributions from its
business segments for fiscal 2024:
Company
Expected Fiscal 2024
Net Financial Earnings Contribution
New Jersey Natural Gas
40 to 45 percent
Clean Energy Ventures
12 to 17 percent
Storage and Transportation
3 to 7 percent
Energy Services
38 to 43 percent*
Home Services and Other
0 to 1 percent
* NJR expects to recognize the majority of
the fiscal 2024 AMA revenues in the fiscal fourth quarter
In providing fiscal 2024 NFE guidance, management is aware there
could be differences between reported GAAP earnings and NFE due to
matters such as, but not limited to, the positions of our
energy-related derivatives. Management is not able to reasonably
estimate the aggregate impact or significance of these items on
reported earnings and, therefore, is not able to provide a
reconciliation to the corresponding GAAP equivalent for its
operating earnings guidance without unreasonable efforts.
New Jersey Natural Gas (NJNG)
NJNG reported second-quarter fiscal 2024 NFE of $107.1 million,
compared to NFE of $100.7 million during the same period in fiscal
2023. Fiscal 2024 year-to-date NFE were $158.5 million, compared to
NFE of $155.4 million during the same period in fiscal 2023. NJNG
reported higher utility gross margin for the second quarter of
fiscal 2024, driven by higher contribution from BGSS incentive
programs, partially offset by increased depreciation and operating
expenses, while year-to-date utility gross margin improved as a
result of continued customer growth.
Customer Growth:
- NJNG added 4,058 new customers during the first six months of
fiscal 2024, compared with 4,064 during the same period of fiscal
2023. NJNG expects these new customers to contribute approximately
$3.4 million of incremental utility gross margin on an annualized
basis.
Base Rate Filing:
- On January 31, 2024, NJNG filed a base rate case with the BPU,
seeking a $222.6 million increase to its base rates. The filing is
based on an overall return of 7.57 percent with a return on equity
of 10.42 percent. The proposed increase reflects a 55.42 percent
common equity component.
Infrastructure Update:
- NJNG's Infrastructure Investment Program (IIP) is a
five-year, $150 million accelerated recovery program that began in
fiscal 2021. IIP consists of a series of infrastructure projects
designed to enhance the safety and reliability of NJNG's natural
gas distribution system. During the first six months of fiscal
2024, NJNG spent $13.7 million under the program on various
distribution system reinforcement projects. On March 28, 2024, NJNG
submitted its annual IIP filing to the BPU requesting a rate
increase for capital expenditures of $43.5 million through June 30,
2024, which will result in a $5.6 million revenue increase, with a
proposed effective date of October 1, 2024.
Basic Gas Supply Service (BGSS) Incentive Programs:
BGSS incentive programs contributed $7.9 million to utility
gross margin in the second quarter of fiscal 2024, compared with
$5.8 million during the same period of fiscal 2023. This increase
for the second quarter was due primarily to higher margins from
off-system sales. During the first six months of fiscal 2024, these
programs contributed $13.3 million to utility gross margin,
compared with $14.5 million during the same period in fiscal
2023.
For more information on utility gross margin, please see
"Non-GAAP Financial Information" below.
Energy-Efficiency Programs:
SAVEGREEN™ invested $33.4 million year-to-date in fiscal 2024 in
energy-efficiency upgrades for customers' homes and businesses.
NJNG recovered $15.1 million of its outstanding investments during
the first six months of fiscal 2024 through its energy efficiency
rate.
Clean Energy Ventures (CEV)
CEV reported second-quarter fiscal 2024 net financial loss of
$(5.6) million, compared with a net financial loss of $(9.4)
million during the same period in fiscal 2023. The decrease in net
financial loss for the second quarter of fiscal 2024 was largely
due to the recognition of Investment Tax Credits associated with
solar sale leaseback financing transactions. Fiscal 2024
year-to-date NFE was $4.9 million, compared with a net financial
loss of $(13.0) million during the same period in fiscal 2023. The
increase in fiscal 2024 year-to-date NFE was due primarily to
higher SREC and TREC revenue for the period.
Solar Investment Update:
- As of March 31, 2024, CEV had approximately 474MW of solar
capacity in service in New Jersey, New York, Connecticut, Rhode
Island, Indiana, and Michigan.
Storage and Transportation
Storage and Transportation reported second-quarter fiscal 2024
NFE of $2.0 million, compared with NFE of $2.4 million during the
same period in fiscal 2023. Fiscal 2024 year-to-date NFE were $5.6
million, compared with NFE of $8.7 million during the same period
in fiscal 2023. NFE for the second quarter of fiscal 2024 remained
largely flat when compared to the prior year, while the
year-to-date decrease in NFE was largely due to higher operating
revenues in the prior year period.
Energy Services
Energy Services reported second-quarter fiscal 2024 NFE of $37.6
million compared with NFE of $21.1 million for the same period in
fiscal 2023. The increase in the second quarter of fiscal 2024 was
due to higher natural gas price volatility in January, allowing
Energy Services to capture additional financial margin. Fiscal 2024
year-to-date NFE were $45.5 million, compared with NFE of $73.7
million during the same period in fiscal 2023. The decrease in
fiscal 2024 year-to-date NFE was due primarily to higher natural
gas price volatility in the prior year period, largely as a result
of Winter Storm Elliott.
Home Services and Other Operations
Home Services and Other Operations reported second-quarter
fiscal 2024 NFE of $0.4 million, compared to NFE of $0.8 million
for the same period in fiscal 2023. Fiscal 2024 year-to-date net
financial loss was $(0.2) million, compared with NFE of $0.8
million during the same period in fiscal 2023.
Capital Expenditures and Cash Flows:
NJR is committed to maintaining a strong financial profile:
- During the first six months of fiscal 2024, capital
expenditures were $232.6 million, including accruals, compared with
$253.7 million during the same period of fiscal 2023. The decrease
in capital expenditures was primarily due to lower solar capital
expenditures during the period as a result of the timing of several
projects being placed into service in the prior year.
- During the first six months of fiscal 2024, cash flows from
operations were $338.6 million, which was largely consistent with
cash flows from operations of $343.1 million during the same period
of fiscal 2023.
Forward-Looking Statements:
This earnings release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995.
NJR cautions readers that the assumptions forming the basis for
forward-looking statements include many factors that are beyond
NJR’s ability to control or estimate precisely, such as estimates
of future market conditions and the behavior of other market
participants. Words such as “anticipates,” “estimates,” “expects,”
“projects,” “may,” “will,” “intends,” “plans,” “believes,” “should”
and similar expressions may identify forward-looking statements and
such forward-looking statements are made based upon management’s
current expectations, assumptions and beliefs as of this date
concerning future developments and their potential effect upon NJR.
There can be no assurance that future developments will be in
accordance with management’s expectations, assumptions and beliefs
or that the effect of future developments on NJR will be those
anticipated by management. Forward-looking statements in this
earnings release include, but are not limited to, certain
statements regarding NJR’s NFEPS guidance for fiscal 2024,
projected NFEPS growth rates and our guidance range, NFEPS
Contributions, forecasted contribution of business segments to
NJR’s NFE for fiscal 2024, customer growth at NJNG and their
expected contributions, expected contributions from Asset
Management Agreements, infrastructure programs and investments,
future decarbonization opportunities including IIP, Energy
Efficiency programs, including BGSS, the outcome or timing of our
Base Rate Case with the BPU, and other legal and regulatory
expectations.
Additional information and factors that could cause actual
results to differ materially from NJR’s expectations are contained
in NJR’s filings with the SEC, including NJR’s Annual Reports on
Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent
Current Reports on Form 8-K, and other SEC filings, which are
available at the SEC’s web site, http://www.sec.gov. Information
included in this earnings release is representative as of today
only and while NJR periodically reassesses material trends and
uncertainties affecting NJR's results of operations and financial
condition in connection with its preparation of management's
discussion and analysis of results of operations and financial
condition contained in its Quarterly and Annual Reports filed with
the SEC, NJR does not, by including this statement, assume any
obligation to review or revise any particular forward-looking
statement referenced herein in light of future events.
Non-GAAP Financial Information:
This earnings release includes the non-GAAP financial measures
NFE/net financial loss, NFE per basic share, financial margin and
utility gross margin. A reconciliation of these non-GAAP financial
measures to the most directly comparable financial measures
calculated and reported in accordance with GAAP can be found below.
As an indicator of NJR’s operating performance, these measures
should not be considered an alternative to, or more meaningful
than, net income or operating revenues as determined in accordance
with GAAP. This information has been provided pursuant to the
requirements of SEC Regulation G.
NFE and financial margin exclude unrealized gains or losses on
derivative instruments related to NJR’s unregulated subsidiaries
and certain realized gains and losses on derivative instruments
related to natural gas that has been placed into storage at Energy
Services, net of applicable tax adjustments as described below.
Financial margin also differs from gross margin as defined on a
GAAP basis as it excludes certain operations and maintenance
expense and depreciation and amortization as well as the effects of
derivatives as discussed above. Volatility associated with the
change in value of these financial instruments and physical
commodity reported on the income statement in the current period.
In order to manage its business, NJR views its results without the
impacts of the unrealized gains and losses, and certain realized
gains and losses, caused by changes in value of these financial
instruments and physical commodity contracts prior to the
completion of the planned transaction because it shows changes in
value currently instead of when the planned transaction ultimately
is settled. An annual estimated effective tax rate is calculated
for NFE purposes and any necessary quarterly tax adjustment is
applied to NJR Energy Services Company.
NJNG’s utility gross margin is defined as operating revenues
less natural gas purchases, sales tax, and regulatory rider
expense. This measure differs from gross margin as presented on a
GAAP basis as it excludes certain operations and maintenance
expense and depreciation and amortization. Utility gross margin may
also not be comparable to the definition of gross margin used by
others in the natural gas distribution business and other
industries. Management believes that utility gross margin provides
a meaningful basis for evaluating utility operations since natural
gas costs, sales tax and regulatory rider expenses are included in
operating revenues and passed through to customers and, therefore,
have no effect on utility gross margin.
Management uses these non-GAAP financial measures as
supplemental measures to other GAAP results to provide a more
complete understanding of NJR’s performance. Management believes
these non-GAAP financial measures are more reflective of NJR’s
business model, provide transparency to investors and enable
period-to-period comparability of financial performance. A
reconciliation of all non-GAAP financial measures to the most
directly comparable financial measures calculated and reported in
accordance with GAAP can be found below. For a full discussion of
NJR’s non-GAAP financial measures, please see NJR’s most recent
Report on Form 10-K, Item 7.
About New Jersey Resources
New Jersey Resources (NYSE: NJR) is a Fortune 1000
company that, through its subsidiaries, provides safe and reliable
natural gas and clean energy services, including transportation,
distribution, asset management and home services. NJR is composed
of five primary businesses:
- New Jersey Natural Gas, NJR’s principal subsidiary,
operates and maintains natural gas transportation and distribution
infrastructure to serve approximately 582,000 customers in New
Jersey’s Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington
counties.
- Clean Energy Ventures invests in, owns and operates
solar projects with a total capacity of approximately 474
megawatts, providing residential and commercial customers with
low-carbon solutions.
- Energy Services manages a diversified portfolio of
natural gas transportation and storage assets and provides physical
natural gas services and customized energy solutions to its
customers across North America.
- Storage and Transportation serves customers from local
distributors and producers to electric generators and wholesale
marketers through its ownership of Leaf River and the Adelphia
Gateway Pipeline, as well as our 50% equity ownership in the
Steckman Ridge natural gas storage facility.
- Home Services provides service contracts as well as
heating, central air conditioning, water heaters, standby
generators, solar and other indoor and outdoor comfort products to
residential homes throughout New Jersey.
NJR and its over 1,300 employees are committed to helping
customers save energy and money by promoting conservation and
encouraging efficiency through Conserve to Preserve® and
initiatives such as The SAVEGREEN Project® and The Sunlight
Advantage®.
For more information about NJR: www.njresources.com.
Follow us on X.com (Twitter) @NJNaturalGas. “Like” us on
facebook.com/NewJerseyNaturalGas.
NEW JERSEY RESOURCES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Three Months Ended
Six Months Ended
March 31,
March 31,
(Thousands, except per share data)
2024
2023
2024
2023
OPERATING REVENUES
Utility
$
462,863
$
400,500
$
755,956
$
757,909
Nonutility
195,050
243,527
369,167
609,685
Total operating revenues
657,913
644,027
1,125,123
1,367,594
OPERATING EXPENSES
Gas purchases
Utility
204,347
156,370
320,467
338,816
Nonutility
105,018
160,364
164,495
392,434
Related parties
1,799
1,770
3,678
3,597
Operation and maintenance
107,223
99,095
201,662
178,596
Regulatory rider expenses
29,229
23,154
48,418
41,405
Depreciation and amortization
40,075
38,090
80,362
74,773
Total operating expenses
487,691
478,843
819,082
1,029,621
OPERATING INCOME
170,222
165,184
306,041
337,973
Other income, net
15,420
4,779
21,761
9,434
Interest expense, net of capitalized
interest
31,621
30,261
63,094
59,752
INCOME BEFORE INCOME TAXES AND EQUITY
IN EARNINGS OF AFFILIATES
154,021
139,702
264,708
287,655
Income tax provision
33,947
30,586
56,883
63,564
Equity in earnings of affiliates
738
1,131
2,398
2,077
NET INCOME
$
120,812
$
110,247
$
210,223
$
226,168
EARNINGS PER COMMON SHARE
Basic
$
1.23
$
1.14
$
2.14
$
2.34
Diluted
$
1.22
$
1.13
$
2.13
$
2.32
WEIGHTED AVERAGE SHARES
OUTSTANDING
Basic
98,377
96,893
98,123
96,689
Diluted
99,102
97,556
98,839
97,346
RECONCILIATION OF NON-GAAP
PERFORMANCE MEASURES
(Unaudited)
Three Months Ended
Six Months Ended
March 31,
March 31,
(Thousands)
2024
2023
2024
2023
NEW JERSEY RESOURCES
A reconciliation of net income, the
closest GAAP financial measure, to net financial earnings is as
follows:
Net income
$
120,812
$
110,247
$
210,223
$
226,168
Add:
Unrealized (gain) loss on derivative
instruments and related transactions
25,457
13,971
20,057
(17,532
)
Tax effect
(6,049
)
(3,320
)
(4,767
)
4,167
Effects of economic hedging related to
natural gas inventory
(2,845
)
(11,203
)
(19,073
)
12,769
Tax effect
676
2,662
4,533
(3,035
)
Gain on equity method investment
—
(200
)
—
(200
)
Tax effect
—
50
—
50
NFE tax adjustment
525
103
47
207
Net financial earnings
$
138,576
$
112,310
$
211,020
$
222,594
Weighted Average Shares
Outstanding
Basic
98,377
96,893
98,123
96,689
Diluted
99,102
97,556
98,839
97,346
A reconciliation of basic earnings per
share, the closest GAAP financial measure, to basic net financial
earnings per share is as follows:
Basic earnings per share
$
1.23
$
1.14
$
2.14
$
2.34
Add:
Unrealized (gain) loss on derivative
instruments and related transactions
$
0.25
$
0.14
$
0.20
$
(0.18
)
Tax effect
$
(0.06
)
$
(0.03
)
$
(0.05
)
$
0.04
Effects of economic hedging related to
natural gas inventory
$
(0.03
)
$
(0.12
)
$
(0.19
)
$
0.13
Tax effect
$
0.01
$
0.03
$
0.05
$
(0.03
)
NFE tax adjustment
$
0.01
$
—
$
—
$
—
Basic net financial earnings per
share
$
1.41
$
1.16
$
2.15
$
2.30
NATURAL GAS DISTRIBUTION
A reconciliation of gross margin, the
closest GAAP financial measure, to utility gross margin is as
follows:
Operating revenues
$
463,201
$
400,838
$
756,631
$
758,584
Less:
Natural gas purchases
206,675
158,694
325,119
343,465
Operating and maintenance (1)
29,558
30,711
55,341
57,005
Regulatory rider expense
29,229
23,154
48,418
41,405
Depreciation and amortization
27,464
25,319
54,381
50,209
Gross margin
170,275
162,960
273,372
266,500
Add:
Operating and maintenance (1)
29,558
30,711
55,341
57,005
Depreciation and amortization
27,464
25,319
54,381
50,209
Utility gross margin
$
227,297
$
218,990
$
383,094
$
373,714
(1) Excludes selling, general and
administrative expenses of $30.0 million and $27.8 million for the
three months ended March 31, 2024 and 2023, respectively, and $58.9
million and $51.2 million for the six months ended March 31, 2024
and 2023, respectively.
RECONCILIATION OF NON-GAAP
PERFORMANCE MEASURES (continued)
(Unaudited)
Three Months Ended
Six Months Ended
March 31,
March 31,
(Thousands)
2024
2023
2024
2023
ENERGY SERVICES
A reconciliation of gross margin, the
closest GAAP financial measure, to Energy Services' financial
margin is as follows:
Operating revenues
$
144,862
$
196,730
$
244,530
$
518,512
Less:
Natural Gas purchases
105,634
161,114
165,800
394,401
Operation and maintenance (1)
13,102
7,668
17,791
11,123
Depreciation and amortization
56
62
113
119
Gross margin
26,070
27,886
60,826
112,869
Add:
Operation and maintenance (1)
13,102
7,668
17,791
11,123
Depreciation and amortization
56
62
113
119
Unrealized (gain) loss on derivative
instruments and related transactions
29,198
13,795
24,932
(26,091
)
Effects of economic hedging related to
natural gas inventory
(2,845
)
(11,203
)
(19,073
)
12,769
Financial margin
$
65,581
$
38,208
$
84,589
$
110,789
(1) Excludes selling, general and
administrative expenses of $0.5 million and $0.7 million for the
three months ended March 31, 2024 and 2023, respectively, and $1.0
million and $(1.7) million for the six months ended March 31, 2024
and 2023, respectively.
A reconciliation of net income, the
closest GAAP financial measure, to net financial earnings is as
follows:
Net income
$
17,028
$
19,046
$
40,961
$
83,607
Add:
Unrealized (gain) loss on derivative
instruments and related transactions
29,198
13,795
24,932
(26,091
)
Tax effect
(6,938
)
(3,278
)
(5,925
)
6,201
Effects of economic hedging related to
natural gas
(2,845
)
(11,203
)
(19,073
)
12,769
Tax effect
676
2,662
4,533
(3,035
)
NFE tax adjustment
525
103
47
207
Net financial earnings
$
37,644
$
21,125
$
45,475
$
73,658
FINANCIAL STATISTICS BY
BUSINESS UNIT
(Unaudited)
Three Months Ended
Six Months Ended
March 31,
March 31,
(Thousands, except per share data)
2024
2023
2024
2023
NEW JERSEY RESOURCES
Operating Revenues
Natural Gas Distribution
$
463,201
$
400,838
$
756,631
$
758,584
Clean Energy Ventures
9,325
14,406
44,620
27,198
Energy Services
144,862
196,730
244,530
518,512
Storage and Transportation
23,042
20,887
46,904
47,725
Home Services and Other
14,905
13,448
29,739
27,714
Sub-total
655,335
646,309
1,122,424
1,379,733
Eliminations
2,578
(2,282
)
2,699
(12,139
)
Total
$
657,913
$
644,027
$
1,125,123
$
1,367,594
Operating Income (Loss)
Natural Gas Distribution
$
140,279
$
135,196
$
214,454
$
215,309
Clean Energy Ventures
(7,679
)
(5,002
)
10,644
(5,323
)
Energy Services
25,533
27,232
59,870
114,547
Storage and Transportation
5,910
6,700
13,234
19,317
Home Services and Other
778
1,137
570
1,188
Sub-total
164,821
165,263
298,772
345,038
Eliminations
5,401
(79
)
7,269
(7,065
)
Total
$
170,222
$
165,184
$
306,041
$
337,973
Equity in Earnings of
Affiliates
Storage and Transportation
$
85
$
977
$
1,078
$
1,886
Eliminations
653
154
1,320
191
Total
$
738
$
1,131
$
2,398
$
2,077
Net Income (Loss)
Natural Gas Distribution
$
107,095
$
100,697
$
158,539
$
155,361
Clean Energy Ventures
(5,616
)
(9,379
)
4,906
(12,961
)
Energy Services
17,028
19,046
40,961
83,607
Storage and Transportation
1,981
2,600
5,621
8,843
Home Services and Other
384
813
(216
)
784
Sub-total
120,872
113,777
209,811
235,634
Eliminations
(60
)
(3,530
)
412
(9,466
)
Total
$
120,812
$
110,247
$
210,223
$
226,168
Net Financial Earnings (Loss)
Natural Gas Distribution
$
107,095
$
100,697
$
158,539
$
155,361
Clean Energy Ventures
(5,616
)
(9,379
)
4,906
(12,961
)
Energy Services
37,644
21,125
45,475
73,658
Storage and Transportation
1,981
2,450
5,621
8,693
Home Services and Other
384
813
(216
)
784
Sub-total
141,488
115,706
214,325
225,535
Eliminations
(2,912
)
(3,396
)
(3,305
)
(2,941
)
Total
$
138,576
$
112,310
$
211,020
$
222,594
Throughput (Bcf)
NJNG, Core Customers
32.9
30.8
56.3
55.8
NJNG, Off System/Capacity Management
37.1
20.7
64.3
38.6
Energy Services Fuel Mgmt. and Wholesale
Sales
38.3
40.8
68.4
85.0
Total
108.3
92.3
189.0
179.4
Common Stock Data
Yield at March 31,
3.9
%
2.9
%
3.9
%
2.9
%
Market Price at March 31,
$
42.91
$
53.20
$
42.91
$
53.20
Shares Out. at March 31,
98,745
96,901
98,745
96,901
Market Cap. at March 31,
$
4,237,144
$
5,155,153
$
4,237,144
$
5,155,153
Three Months Ended
Six Months Ended
(Unaudited)
March 31,
March 31,
(Thousands, except customer and weather
data)
2024
2023
2024
2023
NATURAL GAS DISTRIBUTION
Utility Gross Margin
Operating revenues
$
463,201
$
400,838
$
756,631
$
758,584
Less:
Natural gas purchases
206,675
158,694
325,119
343,465
Operating and maintenance (1)
29,558
30,711
55,341
57,005
Regulatory rider expense
29,229
23,154
48,418
41,405
Depreciation and amortization
27,464
25,319
54,381
50,209
Gross margin
170,275
162,960
273,372
266,500
Add:
Operating and maintenance (1)
29,558
30,711
55,341
57,005
Depreciation and amortization
27,464
25,319
54,381
50,209
Total Utility Gross Margin
$
227,297
$
218,990
$
383,094
$
373,714
(1) Excludes selling, general and
administrative expenses of $30.0 million and $27.8 million for the
six months ended March 31, 2024 and 2023, respectively, and $58.9
million and $51.2 million for the six months ended March 31, 2024
and 2023, respectively.
Utility Gross Margin, Operating Income
and Net Income
Residential
$
163,495
$
157,276
$
271,532
$
261,294
Commercial, Industrial & Other
28,676
30,066
49,507
50,845
Firm Transportation
26,490
25,208
47,254
45,688
Total Firm Margin
218,661
212,550
368,293
357,827
Interruptible
750
662
1,534
1,423
Total System Margin
219,411
213,212
369,827
359,250
Basic Gas Supply Service Incentive
7,886
5,778
13,267
14,464
Total Utility Gross Margin
227,297
218,990
383,094
373,714
Operation and maintenance expense
59,554
58,475
114,259
108,196
Depreciation and amortization
27,464
25,319
54,381
50,209
Operating Income
$
140,279
$
135,196
$
214,454
$
215,309
Net Income
$
107,095
$
100,697
$
158,539
$
155,361
Net Financial Earnings
$
107,095
$
100,697
$
158,539
$
155,361
Throughput (Bcf)
Residential
21.0
19.5
34.9
34.2
Commercial, Industrial & Other
3.9
3.8
6.5
6.5
Firm Transportation
4.7
4.5
8.3
8.5
Total Firm Throughput
29.6
27.8
49.7
49.2
Interruptible
3.3
3.0
6.6
6.6
Total System Throughput
32.9
30.8
56.3
55.8
Off System/Capacity Management
37.1
20.7
64.3
38.6
Total Throughput
70.0
51.5
120.6
94.4
Customers
Residential
525,391
516,453
525,391
516,453
Commercial, Industrial & Other
33,108
33,160
33,108
33,160
Firm Transportation
22,992
24,777
22,992
24,777
Total Firm Customers
581,491
574,390
581,491
574,390
Interruptible
83
87
83
87
Total System Customers
581,574
574,477
581,574
574,477
Off System/Capacity Management*
26
23
26
23
Total Customers
581,600
574,500
581,600
574,500
*The number of customers represents those
active during the last month of the period.
Degree Days
Actual
2,135
1,937
3,543
3,480
Normal
2,436
2,457
3,970
4,004
Percent of Normal
87.6
%
78.8
%
89.2
%
86.9
%
Three Months Ended
Six Months Ended
(Unaudited)
March 31,
March 31,
(Thousands, except customer, RECs and
megawatt)
2024
2023
2024
2023
CLEAN ENERGY VENTURES
Operating Revenues
SREC sales
$
100
$
6,237
$
26,031
$
10,123
TREC sales
2,257
2,085
4,660
3,287
SREC II sales (1)
415
97
662
282
Solar electricity sales
3,696
3,067
7,350
7,649
Sunlight Advantage
2,857
2,920
5,917
5,857
Total Operating Revenues
$
9,325
$
14,406
$
44,620
$
27,198
Depreciation and Amortization
$
6,931
$
6,465
$
13,853
$
12,041
Operating (Loss) Income
$
(7,679
)
$
(5,002
)
$
10,644
$
(5,323
)
Income Tax (Benefit) Provision
$
(1,594
)
$
(3,005
)
$
1,537
$
(4,842
)
Net (Loss) Income
$
(5,616
)
$
(9,379
)
$
4,906
$
(12,961
)
Net Financial (Loss) Earnings
$
(5,616
)
$
(9,379
)
$
4,906
$
(12,961
)
Solar Renewable Energy Certificates
Generated
57,635
63,313
151,205
161,775
Solar Renewable Energy Certificates
Sold
714
30,745
123,153
47,557
Transition Renewable Energy
Certificates Generated
15,847
12,524
32,552
20,869
Solar Renewable Energy Certificates II
Generated
4,693
1,046
7,466
2,830
Solar Megawatts Under
Construction
34.2
11.2
34.2
11.2
(1) Prior year SREC II revenue was
previously included in Solar electricity sales and other
ENERGY SERVICES
Operating Income
Operating revenues
$
144,862
$
196,730
$
244,530
$
518,512
Less:
Gas purchases
105,634
161,114
165,800
394,401
Operation and maintenance expense
13,639
8,322
18,747
9,445
Depreciation and amortization
56
62
113
119
Operating Income
$
25,533
$
27,232
$
59,870
$
114,547
Net Income
$
17,028
$
19,046
$
40,961
$
83,607
Financial Margin
$
65,581
$
38,208
$
84,589
$
110,789
Net Financial Earnings
$
37,644
$
21,125
$
45,475
$
73,658
Gas Sold and Managed (Bcf)
38.3
40.8
68.4
85.0
STORAGE AND TRANSPORTATION
Operating Revenues
$
23,042
$
20,887
$
46,904
$
47,725
Equity in Earnings of
Affiliates
$
85
$
977
$
1,078
$
1,886
Operation and Maintenance
Expense
$
10,563
$
7,790
$
20,663
$
15,264
Other Income, Net
$
2,473
$
1,647
$
4,761
$
3,014
Interest Expense
$
5,868
$
6,128
$
11,801
$
12,835
Income Tax Provision
$
619
$
596
$
1,651
$
2,539
Net Income
$
1,981
$
2,600
$
5,621
$
8,843
Net Financial Earnings
$
1,981
$
2,450
$
5,621
$
8,693
HOME SERVICES AND OTHER
Operating Revenues
$
14,905
$
13,448
$
29,739
$
27,714
Operating Income
$
778
$
1,137
$
570
$
1,188
Net Income (Loss)
$
384
$
813
$
(216
)
$
784
Net Financial Earnings (Loss)
$
384
$
813
$
(216
)
$
784
Total Service Contract Customers at Mar
31
100,341
102,057
100,341
102,057
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240506741614/en/
Media Contact: Mike Kinney 732-938-1031
mkinney@njresources.com
Investor Contact: Adam Prior 732-938-1145
aprior@njresources.com
Grafico Azioni New Jersey Resources (NYSE:NJR)
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