New Jersey Resources (NJR) 6 Aug 242024 Q3 Earnings call transcript

Hello. My name is Ali, and I will be your operator for today. I would like to welcome everyone to New Jersey Resources Fiscal 2024 Third Quarter Conference Call. [Operator Instructions] I'd now like to hand over to Adam Prior, Head of Investor Relations.

You may now begin.

you. Thank Jersey Third New and Conference Fiscal Webcast. Resources to Quarter XXXX Call Welcome today our Financial Steve Roberto joined our by I'm here team. Westhoven, as members Senior President senior management well Bell, Vice President and as Chief Officer; other of our CEO; and today's estimates statements meaning forward-looking the and statements in Certain the securities other within of laws. call contain our our . We ability that beliefs forming and current expectations, wish to assumptions estimate factors or caution control many listeners basis to of forward-looking of precisely. this are include beyond call that the statements the This found could cause expectations results to materially differ on from our as Slide X. also in XX-K earnings Forms and These be items of Form our section in forward-looking and today's XX-Q can furnished X-K on found SEC. the as recent statements filed most release the with

statement, forward-looking any assume or revise referenced statement this to of including review obligation by future particular any in not, herein light events. do We

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

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

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

financial with Our questions. agenda our for we up highlights, and year's this begin by X. found followed who on will today for review results, is will Steve Roberto, will Slide your open

to Please ahead, CEO, Westhoven. said, With go our call turn President I that and over will the Steve. Steve

in Slide NJR remain of We share. on I'll quarter expectations, everyone. morning, portfolio solid per through to highlights line of you $X and performed X. our to on achieve XXXX track with the complementary our we fiscal NFEPS our $X.XX at Thanks, take Adam, shown and businesses as as a guidance good had

of long the deliver anticipate This investment along pipeline. Ventures power XXXX. revenue for of and project while from that each of Jersey expand runway Natural is high provides proceeding expected, options potential solid robust upside minimum as in year-over-year before case our increases New with a resolution demand. reported single-digit At a rate end we unlevered project returns growth Clean to a Gas, our continuing Energy

This we solid and also performance Energy expectations. S&T in saw that from line quarter, was from contributions Services with

to we per Moving our provided by to $X.XX we guidance guidance November, share. an $X of NFEPS Services, share this Energy to outperformance range X. Slide to $X.XX share. initial In increased In $X.XX February, at per to per $X.XX due

XXXX expected As we prior percentage long-term higher percentage our discussed rate AMA years X segment business and year, calls, the expect a Services for and recent This beyond. X% fiscal will XXXX fiscal NFEPS represent by Energy in outlines prior due Slide X%. the growth to to of contribution than exceed to our outperformance.

years, over return to our future breakout more expect our business. to a in we However, from coming XX% segment of utility NFEPS normalized with

on X. Now New let's business units, Natural with discuss Slide starting Jersey Gas our

with XX% its XXXX a reached We June, that SAVEGREEN real-time serving This the fiscal In at returns. of XXX,XXXth energy milestone, customers Gas their helps customer our includes $XXX in SAVEGREEN have which year-to-date providing Jersey million Natural CapEx lower New invested XXXX. since usage. in near program, inception

pounds use energy carbon cut lifetime customers million and their equal of the to of energy significantly have their program, XXX emissions by participating XX,XXX homes. over over the Over bills this reduce

a year, to driven both this by Congrats Customer combination remained and SAVEGREEN accomplishment. has on steady team the conversions. new all construction entire of growth

future, to such and retail, project along as spaces. mall also well medical with in help We commercial unique growth should County redevelopment Mullen units, into see business drive opportunities. a the transform This multifamily the into

Turning X. to Slide

X May, results of XXXX. months In planned. a end company's as progressing and the to is resolution by that to aim case and our include rate of interest balances adjusted actual customers filing base Our we reach our

XX. to solar continue Slide Energy fiscal Moving to add Clean Ventures new capacity this during year.

also XXX of under with XX options construction. investment our over now megawatts are pipeline, additional an includes which potential growing We megawatts solar

met X the years. a cost portion that pay in less an will on at Roberto at Finally, investment XX, that, over this Roberto? terms River Last capital expectations financial contracted capacity working turn a start review to expand that the and to I'll our to announced Slide caverns. season full within the period. we investment call And back our We of that S&T with business of our project quarter, Leaf capacity completed results. open of than

at consistent an year-to-date. Slide last Steve, allowance higher loss highlights period, million reoccur. Energy and steady was contribution you, $X.X at and prior to a year share expenses. expectations, $X.XX financial The difference of year with margin million. fiscal Energy the segment did not main with by that third depreciation compared . Clean the the drivers NFE reportred Ventures XX financial with Thank We S&P and were due business of of and XXXX reported share year. NFE period income NJNG prior quarter or net to from net and million per our CEX $X.X the good the per resolution $X.X for our or tax interest everyone. revenues a period and last [indiscernible] increased of quarterly Services of offset compared our loss of results $X.XX for morning, The

revenue period. quarter year-over-year increase will fourth a during asset Services NFE Looking the in a upcoming expect we ahead, substantial the agreements for of portion the recognize as Energy significant management total

on Turning to XX. Slide capital plan our

Over billion company. invest the the and between to we across X $X.X billion expect $X.X years, next

range we offset increases fiscal by end with and slight reduction the NJNG have CEV. S&P, tightened top at overall For XXXX, our CapEx a in at

remained update XXXX For In year. will for CapEx XXXX. midpoint largely NJR we fiscal our CapEx the and expectations for FFO, fiscal same total the November, of our the year provide

operations. from cash by capital flow strong Our projections tampered are

between existing displays NJR project plans from issue XX Slide We fiscal allows we metrics. a an adjusted block debt adjusted on equity while On million to to to equity, XX% FFO basis. cash feature between program credit us expect be $XXX raise that have discount range this in XX, and we NJR XX% Slide our XXXX. operations [indiscernible] to waiver $XXX to flow opportunistic and year. investment no includes million And

and it to Slide the NJNG. is at XX for provides concluding Steve a XX. no breakdown of substantial of both of long-term fixed particular maturities with any remarks debt in fiscal for have debt, rate NJR any We our back With turn I'll Slide liquidity in don't which maturities on significant that, XXXX and maintain rest year.

for our regulated NJR conclusion, anchored to infrastructure by by and investment the business long-term provided value its Thanks, other shareholders, deliver continues the In segments. utility Roberto. opportunities

look forward of long-term a year. is rate X% a NFEPS we this investors Our resolution rate approximately later return to and and schedule, based progressing case growth dividend offer on . To total to expected we attractive an X% our X%. summarize, on XX% current XX% of to yield

grow to in dividend dividend earnings the our raised our expect with to has years. the as shareholders line every NJR We our for last XX year

drives all Our today, performance. to recognize took We thank that employees to that their you next for work hard I'd us and dedication appreciate come announcement dividend our and and in like join the our time September. will

the up open now questions. call for let's So

question first Richard Our from JPMorgan. Sunderland Instructions] [Operator comes from

discussions, the under as the Starting everything announcement, curious either or guess, slide with should settlement? line. time month the on at settlement if here rate just this expect expected next looking I progressing language I'm towards case, I'm still is an we that

that Rich, to [indiscernible] Steve. I'm take is this question. going to ask

to the with today, investments couple around which expect [indiscernible] as a finalize our case a sometime effective them far to as a the of as and discussions, this public will as that fiscal timing to with of way progressing investments, file IT change we safety, next our the would the communicated to is the days. XX-Q some reminder, for [indiscernible] rate case just is of with of the quarter pave 'XX in Rich, in guidance, our some and they're rents reliability first But no utilities us previously filing we expect

X% open if X% megawatts prices range. and And then EV. XQ could power you the be quantify or put Can tailwind a above to turning to to earnings even XXXX outlook your

of guess, rest of got megawatt season. due the a this bit I a for year the lasting So pricing bit little fiscal of, little we've

years expect to can, would to But determine guess, minor characterize be that past I how prices look at contribution power could I it year relatively going forward. as You should this earnings impact our for go.

[Operator Travis question Instructions] comes from Our Morningstar. from Miller next

in general of question, I'll correctly. than weaker but going guess kind if pricing? necessarily it level, just pricing? seeing clarify it Not what in seeing different but open ask hear terms you market, then or I the are you of for solar I Is I you high you way expected? and a ] megawatts didn't The how or ask are earnings, in stronger the [ to Richard's was

years mean pricing I Rich, So year the last in you the said see I earnings it's is a it in at summer change I look year. in comparison the at extreme can think a we can again all, as you to past. daily remarkable previous just on can to if But as some make basis fiscal an been impact you occurring how But to if [indiscernible] us, for look pricing for pricing and see that on summers. like well you're to looking much indication all at you not may of have significant us, this

And have about you price? how much still to do

But have portfolio price that on can and our much portions the [ basis, at of how the connected our sure considering of number ratings, a head. top if daily I'm off my out you grid portfolio I especially that big ] calculate on it look are don't you

Okay.

are in cost that you any necessarily terms Okay. just seeing CapEx on costs. in side, but side, growth, new subject solar projects? not staying you the cost then good. And growth what Very seeing of What your on are

I characterized. pretty steady think they've been

cost talking about our construction. you're just and cost normal our development, If

add I states robust have still standard. either. that very recent I'd I the, of guess, The think there renewable things portfolio steady nothing only have thing the for is the support past, a been are in there remarkable

the to well. and grow able you can see still continues of size our we're as to make So portfolio investments,

either had backup data high the a lot your a perspective, then customers on-site of of about generation. demand utilities from that while? or seeing have that centers you in for service? had centers. your data I've or demand either for gas are a service seeing does it subjects, primary terms Or different asking look while level, or And you understood What everybody From electric data in territory, have is are primary demand gas or utilities center generation backup for like

facilities, it's those increase business should portfolio, don't S&T in it of But that matches market for in need territory our at introduced to order Energy run electricity demand service the in -- our centers there's I So the segment, point. that portfolio for our the infrastructure we gets we really the that there, don't need that, our electric all believe those increase utility becomes reliability, power our and this in for to across Services with a greater CEV our within assets, prices add any this reliability all data nicely tighter for for power constant as reliability. have companies of use, whether supportive units up have participate I'd volatility and and our

comes Michael Scott. question Janney Gaugler from next Montgomery from Our

power price X you. had for more I Steve, question

given where you're power you -- the PJM. high you we're want invest more as for planning you're prices referenced does CapEx it make in going, given the future in looking to seeing, prices are particularly in seeing the like forward, sector what So

Yes.

it forward. think growing it I like that and in investment, supports infrastructure Travis, said going our all supports really I our to general infrastructure strategy infrastructure,

[indiscernible] You real there the that was there XXx That's capacity have well. saw certainly, market PJM market signal that you recent supportive year. and put as been is where signals a it that was auction previous out

answer So for business talking our certainly the been It that and strategy quite yes. about supports some we've really time.

that actually already Does operating? already -- it at look make sorry, to projects -- are that are sense

operating a course portfolio in we've Yes. that's in CEV mean past, or business done at assets the that, looked at those at the the S&T, we've of I of past. whether

I'd yes, So that. yes, say, to

one. Okay. And then one last

areas For expansion you're S&T what beyond in capacity, you're on doing future segment. what at terms of River the Leaf that focused business? in to expand

pursuing it whether long the grow or can River, and a Anywhere expansions get whether can asset, our making permits, Adelphia we an easy contract look expansion, we organic that we get that Leaf everything about could supportive, we'll to but that's Gateway that's term what we it's support anything several of it's connecting to to we've a beyond essentially organically, at already don't with existing that -- know that are have talked you're announce

from Mizuho. Robert question comes from next Our Mosca

Just wondering the your referenced business some customer commentary. of you you talk about opportunities guys if in could growth

that Just your growth X% already in significant is wondering how that's And captured this X% something is. to outlook?

ask going that take question. to I'm to [indiscernible]

as So growth, to just we're in think territory. that our is think more included service we strategic, as about look, customer This you really a still about New that Jersey the illustrate marker, X.X% environment territory. but service growing that specifically

conversion got oil, So also like construction market still lot propane specifically, but continue tailwinds from a coming there to because customers a of and a both market of are see into the new over. very cavern because people on we've healthy you then number converting [indiscernible] are the

that's supportive as it So utilities I would generally rate. the of something growth characterize

some River hydrogen leasing Leaf of use that Appreciate it, for to looking stores. turning at Pat. to authorization for those request facilities And maybe

wondering that to with this expansion that that does capacity latest on is? the the -- that gas ID interplay Just side? seem you And how what working what's on that have

keeping at Leaf in lot option I options our said S&T expand we're assets, that area. every like So a River to our pull is been in all available that certainly market us order before, there's to open of and right exploring,

executed in in out contracts seen You've been that the certainly have that there, price. elevating

uses market. the asset point expand our basically position that have might But this thinking we're it announce don't many I applied view you to is and to just marker how So that anything about that yet. a this be . be that preserves in at to in see We into order able fashion. can that really think on

Got it. maybe last power. quick for That's X a helpful. And subject on the just of me

factor what credits to space focused solar to really locate the does the that in in still construct? projects? look is the a do wondering, you these Just where electricity on of decide solar Or going become some of sales economics more you what are like be

Yes.

think of are areas pretty I you've functional. But it's prices higher got I most so there there's power quickly, pops. price and part, [indiscernible] that power areas know the move for a certain and that project, right so having in the interchangeability, we the the transaction order and with [indiscernible] on need so to developer build clear solar the land, forth. a having having to

but [indiscernible] more of way. most I speaking, generally will those in uniformly that precedent. believe that the think power I a increase, increases as that drives part it for maybe boats not ally,

our about just right, their. come to a keep I of when you year ask right, revenues mean that XX% maybe is lumping assets, in type the on from mind, [indiscernible] at look only. is is XX%, that power reminder, record

at So we look in that lens. it

I'd hand Prior remarks. over for Instructions] back [Operator their to now Adam like to

Thank your for to Ali, appreciate we here on and much, and joining you, Thank us. and rest have good like thank call always, a investment everyone as the today interest NJR. so your I'd in of you And day.

Thank everyone, call. today's attending you, for

a Have now wonderful day. disconnect. may You