New Jersey Resources (NJR) 7 May 242024 Q2 Earnings call transcript

Thank you for standing by. My name is John, and I will be your conference operator today. At this time, I would like to welcome everyone to the New Jersey Resources Fiscal 2024 Second Quarter Conference Call and Webcast. [Operator Instructions] I would now like to turn the call over to Adam Prior, Director of Investor Relations. Please go ahead.

you. Thank Jersey Second New and Conference Fiscal Webcast. Resources' to Quarter XXXX Call Welcome today our and securities Financial Steve Roberto joined today's of our by I'm here the statements team. Certain Westhoven, statements as members Senior in within President senior meaning management well contain Bel, Vice President forward-looking and laws. as Chief estimates Officer; call other of other our CEO; and the this for We beliefs call forward-looking caution wish of that and factors basis listeners expectations, or estimate many our forming current include precisely. the beyond ability our control the statements assumptions are to that to This furnished could in the results differ Form our in on found of Forms the X. These Slide expectations, materially from section cause X-K, found and with and on as filed be recent XX-Q to as can most SEC. forward-looking release, also XX-K earnings items statements our today's in revise review We forward-looking statements do obligation any not, herein to of assume by this particular any statement, light future or including referenced events.

be also non-GAAP operations a We as financial net referring certain will adjusted margin, from understanding margin, provide complete We financial our and of such adjusted financial NFE. debt that NFE, financial funds earnings, believe utility more financial net performance. gross or measures loss, to

to non-GAAP measures are a However, these GAAP. not be for intended substitute

this available filed Our non-GAAP X-K website fully are discussed on furnished slides presentation our are in more Form our Item financial XX-K. The and measures today's X of accompanying our on morning. were

open go for to and will questions. With with by who financial turn Steve Roberto our Our I'll we results, our Steve. agenda found followed over it Westhoven. highlights, CEO, call your for this will year's X. up is Please President said, Slide will begin ahead, today that the on review Steve then

and good Adam, morning, Thanks, everyone.

presentation. take $X reaffirming you reported outlined guidance I'll earnings which highlights, to and range of are net New are the $X.XX delivered $X.XX quarter. X in share period, performance on in of we per fiscal financial the our XXXX our per strong Slide We through second share. the in Jersey Resources NFEPS

trend New Natural again gross see customer for its Jersey reliable a service. Gas warm volatility, continue of at New once strong higher ability periods utility to Throughout the and relatively quarter. by of Gas We winter growth margin provide cost-effective to marked Natural demonstrated a Jersey achieved and

Jersey Natural New to decoupled, due utility usage. insulated weather changes the Gas and customer is margin gross meaning from is

affordable continue aligned We to all service our provide of remain customers. stakeholders most the our with to best, for

a thus the outperformed our of S&T. allowing to million base Clean of to construction, period, add expanding, history. We will we settlement the Services last Energy our Energy megawatts into case service that under energy call, that in to of from case the new largest into of in as in capacity Ventures rate active contributions remain XXXX, well continue SAVEGREEN as since period on this of recover X this During last growth year. placed represented filed conference program January, brief project efficiency far the our And our reported approximately filing megawatts approximately the in announced solid volatility. is capitalizing a future. We projects rate a $XXX capital we with And pricing well XX investments at as pipeline

we November, initial In of share. X. $X.XX range Slide to to per Moving $X.XX provided NFEPS guidance

guidance outperformance, our of by in per result a our NFEPS we increased February. As share fiscal $X.XX XXXX

the for Services will AMAs business portion represent general exceed the is we a due as growth in as XXXX expect guide calls, for we outperformance stated XXXX higher to expect to percentage what unique contribution long-term and fiscal the somewhat quarter. our in well the future. a Energy to by fiscal prior segment in X% X as XXXX expected NFEPS discussed shows As rate. Slide X%

$XXX segment normalized years, beginning on to with utility New units, programs over fiscal near future XX% in CapEx business XX% approximately XX% program, lower a more We've business. With real-time our that, Slide with of Natural New breakout to a with returns. Within in invested usage. Natural of discussion turn XX% to to which residential that Jersey and I'll However, we variety XXXX, the the from X Gas expect million energy through our that coming Jersey return their helps commercial is customers SAVEGREEN providing Gas. at

and thus and reduce during the achieved conversions approximately new far help footprint. a of spent We new territories. save customers our service through have this construction throughout $XX year period solid million customer their We to growth our carbon money combination

other are innovations strategy. headquarters are this our our in pursue recently Finally, to we we units, expected decarbonization innovation These fuels, and new pursue to as reduce profile the are while continuing Jersey. long-term reduction new emissions emerging our in decarbonization of capture emissions carbon new we initial like of clean we ability of to demonstrating carbon units technologies at goals. New installed By additional X which that further the phase in are testing, achieve data capture, renewables are The building example providing efficiency, energy initiatives. our encouraging that

The later million, expected, X provide months Slide rate increase as on of to increase is an million month. plan our equivalent base we I'll in to an filing and update requested an case case. this base progressing results of of XX, we rate to operating rates update approximately our $XXX to of actual Turning On income. X, January $XXX an include

in expected towards with Jersey interest the fiscal New to for company, We a the our continue of that will Utilities Board resolution be new customers and the balances Public place of working XXXX. with rates

Energy add fiscal megawatts the construction. an with has under new XX. year, continued Moving to additional during to capacity XX Ventures solar Slide Clean

which now over also includes options. growing of megawatts solar pipeline, are investment our We potential XXX

our expanded past the New pipeline our geographically Over of outside portfolio few of with Jersey. years, XX% we've

is unlevered returns. provide single-digit on investment solar opportunities Our focus that developing high

our Finally, business during performed the expectations S&T to our period.

I'll capacity project River, season Leaf gas those review natural storage At to within We recently investment Roberto? results. with cabins our we Bcf. We reliable opportunities regions initiated an our capabilities. With X and call assets. are by additional of continue a approximately working financial our a capacity affordable to to to customers growth turn for that, initiating considerable capital over organic open provide the the Roberto to expand for in pursue maximize demand to

you, per and $X.XX and of NFE we good or XX NFE Thank second main our of drivers quarter, of Steve, morning, half. In everyone. XXXX $XXX.X compared for Slide quarter million NFE the million with last year. per reported shows $XXX.X $X.XX share, share our second or the fiscal first

the $XX.X Services leaseback depreciation while offset of $XX.X NFE largely to for expectations financing Ventures credits with and NFE was largely earnings periods reported second NFE the operating additional line million, by capturing in brief an Gas higher margin sale margin by Energy the transactions. Storage outperformance quarter utility Clean Transportation Energy recognition compared improved and in of during financial Services period Energy expenses. by to driven with reported due Natural the associated higher This Jersey prior of for of the tax remained period, $X.X million related winter. as flat year. gross the NFE in volatility in investment solar was New partially increase to million,

recognize significant quickly quarter. I'll as flows move fiscal fiscal few sheet cash of from unchanged XXXX, to management to it's total the capital slides the asset expect revenues and during remain of our important through next that portion fourth previous As our we the agreement's look a to largely plan, we balance note remainder our goal. projections

the capital across to $X.X invest company. our billion billion XX, to few between Turning years, plan on and the $X.X for next Slide we expect

plan mentioned to Steve new million As project earlier, River began of for the account approximately $XX XXXX. Leaf we at additional in at investment amended a capital S&T capital and fiscal

metrics. expect from and XX, to million fiscal between operations are Our On by flows $XXX $XXX projections from anchored operations. both cash cash in capital XXXX. Slide XXXX XX flow million NJR's strong shows fiscal reach and Slide credit we

debt We XX% on continue existing be to between project waiver And no year. FFO have NJR's to to equity, reinvestment plans discount block opportunistic adjusted issue an for dividend includes our the program XX% allows while equity a that adjusted us to basis. feature raise we and to

Finally, XX, of long-term provide our a on we Slide breakout debt.

in year. see, in you maturities not significant can is nature, debt we As particular of fixed rate and have most any do our

For the any debt have do XXXX, fiscal maturities. not we remainder of

interest NJNG. With that, and Our fiscal our NFEPS guidance higher turn long-term assume NJR And growth will and longer. for we both call NFEPS rates XXXX guidance I back for at liquidity Steve. the substantial have to

our to from cash initial essential NFE Thanks, expectations. of conclusion, core outperforming difficult are benefits contributions Roberto. fiscal businesses higher These assets performance our from from are businesses, steady NJR complementary In generators to sustained is that is XXXX for growth. dependable portfolio and and a operating replicate. thanks Services Energy

rate. organic earnings pursue to potential support and our growth NJR's to We maximize continue peer-leading expansion

call of let's to the want employees with any work. And I always, As their thank for all for our questions. that, hard open

JPMorgan. Sunderland comes The first Instructions] [Operator from Richard from line question the of

hear Can me? you

Yes, we can Rich. hear you,

Maybe about the and of you Great. larger here details financial with key capacity? a of expansion Leaf more Any be a in capacity this starting Leaf recovery to would How other the project. the terms River? we River, little if precursor timing bit incremental a this to speak from is should Could helpful. think of impact contributions

a far these capability. open there and for we're Yes. And organic deeper But that all to about to we in be future the certainly projects yet, help we've economics, these of just to beginning like pumps I But could details to forward think larger believe now, work Certainly, moving ability deep very done concluded just some haven't just on It we've But that watering our some as the and contracting company some with got with to got the completed it at that's as optimistic thing the a project analyzed is fully in the to being and helpful speak announce nothing we'll sizes do. goes. May. this. grow. We and the focus with -- the expansion expansion the be expansion season.

it. on enough contracts with So said to details until final and associated we that get

there, turning Jersey though. the more solicitation selected process? other on Thanks most through thinking of expectations just And projects. pricing, believe learnings? about to to at recent point. this how this Any Any your CEV, future then curious megawatts Understood. one the I for deploy thoughts you're of New commentary

megawatts that that greater. were see moved to Jersey X and and we forward, CSI moving program, that's projects are with New yes, has the happy So forward

good that So you're go that project And there. in forward. was right, did have own we on see our to X

we of comments other developers. As number do far with have as relationships a further about it,

be solar our that's think project more to megawatts at from pipeline we've than view, that standpoint, this New So the XXX certainly in near a got in of we active opportunities investor Jersey enough we'll point and us investment from in to CEV, project pipeline an look expect the in market. But I give future.

still targeting to for projects we're go, that's continue make and returns to forward, a high our as yardstick single-digit far As return moving investments.

that constructive overall, forward, of moving well. So our we're moving New and optimistic Jersey forward about is as projects pipeline

on helpful. CEV maybe a That's the just Understood. very quick And follow-up front.

data outlook, impact the regional so data about state's Given these centers efforts. curious that efforts are your if there, might or, New days, how demand and I the and you guess, topical think center CEV Jersey either

I to or amount order electric in think, just the it's that of to more in we cars need that infrastructure the points we're or general. broadly, whether just centers endeavors for moving energy it supply all really forward, the all have reliability going data to

demand infrastructure important. the longer is going the picture energy grows, as So that in be and our to using term into all extremely bringing

business we that in assets the and hold for infrastructure general. constructive the extremely So

[Operator would remarks. Instructions] As like to session. at our to over further time, Q&A there this back the concludes I Adam closing call turn no this are for questions

Well, us morning. for thanks, joining everyone, this

website. Later of see this a is are there. you this of reminder, Association, AGA, recording on attending Forum, Gas month, a or our available hope for to call Financial the As we and American many replay

good As interest and in a investment and we always, have your NJR, appreciate morning.

today's conference for call. your participation. Ladies you concludes and Thank gentlemen, this

now disconnect. may You