Today, New Jersey Resources Corporation (NYSE: NJR) reported
results for the third quarter of fiscal 2024. Highlights
include:
- Consolidated net loss of $(11.6) million, compared with net
income of $1.5 million in the third quarter of fiscal 2023
- Consolidated net financial loss, a non-GAAP financial measure,
of $(8.9) million, or $(0.09) per share, compared to net financial
earnings (NFE), a non-GAAP financial measure, of $9.7 million, or
$0.10 per share, in the third 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), and in
May 2024, updated the filing seeking a $219.6 million (originally
$222.6 million) increase in base rates
Third-quarter fiscal 2024 net loss totaled $(11.6) million, or
$(0.12) per share, compared with net income of $1.5 million, or
$0.02 per share, for the same period in fiscal 2023. Fiscal 2024
year-to-date net income totaled $198.6 million, or $2.02 per share,
compared with $227.7 million, or $2.35 per share, for the same
period in fiscal 2023.
Third-quarter fiscal 2024 net financial loss totaled $(8.9)
million, or $(0.09) per share, compared with NFE of $9.7 million,
or $0.10 per share, for the same period in fiscal 2023. Fiscal 2024
year-to-date NFE totaled $202.1 million, or $2.05 per share,
compared with $232.3 million, or $2.40 per share, for the same
period in fiscal 2023.
Management Commentary Steve Westhoven, President and CEO
of New Jersey Resources, stated, "We are on track to achieve NFEPS
within our fiscal 2024 guidance range for the year, which was
raised by $0.15 in February 2024. Our portfolio of businesses
performed in line with our expectations. We remain focused on
executing our strategy to meet our customers' expectations and
deliver strong results for our shareowners."
Key Performance Metrics
Three Months Ended
Nine Months Ended
June 30,
June 30,
($ in Thousands)
2024
2023
2024
2023
Net income
$
(11,574
)
$
1,532
$
198,649
$
227,700
Basic EPS
$
(0.12
)
$
0.02
$
2.02
$
2.35
Net financial (loss) earnings
$
(8,899
)
$
9,670
$
202,121
$
232,264
Basic net financial (loss) earnings per
share
$
(0.09
)
$
0.10
$
2.05
$
2.40
(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 nine
months ended June 30, 2024 and 2023, is provided below.
Three Months Ended
Nine Months Ended
June 30,
June 30,
(Thousands)
2024
2023
2024
2023
Net (loss) income
$
(11,574
)
$
1,532
$
198,649
$
227,700
Add:
Unrealized loss (gain) on derivative
instruments and related transactions
3,803
(12,970
)
23,860
(30,502
)
Tax effect
(903
)
3,083
(5,670
)
7,250
Effects of economic hedging related to
natural gas inventory
(385
)
24,116
(19,458
)
36,885
Tax effect
91
(5,731
)
4,624
(8,766
)
Gain on equity method investment
—
(100
)
—
(300
)
Tax effect
—
24
—
74
NFE tax adjustment
69
(284
)
116
(77
)
Net financial (loss) earnings
$
(8,899
)
$
9,670
$
202,121
$
232,264
Weighted Average Shares
Outstanding
Basic
98,983
97,168
98,409
96,849
Diluted
98,983
97,886
99,213
97,538
Basic earnings per share
$
(0.12
)
$
0.02
$
2.02
$
2.35
Add:
Unrealized loss (gain) on derivative
instruments and related transactions
0.04
(0.14
)
0.24
(0.31
)
Tax effect
(0.01
)
0.03
(0.06
)
0.07
Effects of economic hedging related to
natural gas inventory
—
0.25
(0.20
)
0.38
Tax effect
—
(0.06
)
0.05
(0.09
)
Basic net financial (loss) earnings per
share
$
(0.09
)
$
0.10
$
2.05
$
2.40
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 nine months ended June
30, 2024 and 2023, is provided below.
Net financial (loss) earnings by
business unit
Three Months Ended
Nine Months Ended
June 30,
June 30,
(Thousands)
2024
2023
2024
2023
New Jersey Natural Gas
$
(6,139
)
$
891
$
152,400
$
156,252
Clean Energy Ventures
(6,714
)
7,267
(1,808
)
(5,694
)
Storage and Transportation
4,140
2,358
9,761
11,051
Energy Services
(2,244
)
(1,604
)
43,231
72,054
Home Services and Other
881
523
665
1,307
Subtotal
(10,076
)
9,435
204,249
234,970
Eliminations
1,177
235
(2,128
)
(2,706
)
Total
$
(8,899
)
$
9,670
$
202,121
$
232,264
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
43 to 46 percent
Clean Energy Ventures
11 to 14 percent
Storage and Transportation
3 to 5 percent
Energy Services
40 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 2024 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 a third-quarter fiscal 2024 net financial loss of
$(6.1) million, compared to NFE of $0.9 million during the same
period in fiscal 2023. Fiscal 2024 year-to-date NFE were $152.4
million, compared to NFE of $156.3 million during the same period
in fiscal 2023. The decrease in NFE for the quarter and
year-to-date period was due primarily to higher employee related
expenses and information technology costs, and increased
depreciation expenses as a result of continued capital
deployment.
Customer Growth:
- NJNG added 5,939 new customers during the first nine months of
fiscal 2024, compared with 5,892 during the same period of fiscal
2023. NJNG expects these new customers to contribute approximately
$5.1 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 based on an
overall return of 7.57 percent with a return on equity of 10.42
percent. On May 15, 2024, the Company filed an update to its
financial schedules in the base rate case filing, which reflects a
proposed increase of $219.6 million.
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 nine months of fiscal
2024, NJNG spent $22.6 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 with actual information through
February 29, 2024, and forecasted information through June 30,
2024. On July 26, 2024, the Company filed an update with actual
information through June 30, 2024 requesting a rate increase for
capital expenditures of $43.5 million, which will result in a $5.3
million revenue increase, with a proposed effective date of October
1, 2024.
Basic Gas Supply Service (BGSS) Incentive Programs:
BGSS incentive programs contributed $2.9 million to utility
gross margin in the third quarters of both fiscal 2024 and fiscal
2023. During the first nine months of fiscal 2024, these programs
contributed $16.2 million to utility gross margin, compared with
$17.4 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 $52.4 million year-to-date in fiscal 2024 in
energy-efficiency upgrades for customers' homes and businesses.
NJNG recovered $22.6 million of its outstanding investments during
the first nine months of fiscal 2024 through its energy efficiency
rate. On May 31, 2024, NJNG submitted its annual cost recovery
filing seeking an increase of $5.6 million.
Clean Energy Ventures (CEV)
CEV reported a third-quarter fiscal 2024 net financial loss of
$(6.7) million, compared with NFE of $7.3 million during the same
period in fiscal 2023. The decrease in NFE for the third quarter of
fiscal 2024 was largely due to a reversal of a valuation allowance
on certain deferred tax assets in the prior year period that did
not reoccur.
Fiscal 2024 year-to-date net financial loss was $(1.8) million,
compared with net financial loss of $(5.7) million during the same
period in fiscal 2023. The improvement was due primarily to higher
SREC and Transition Renewable Energy Certificate (TREC) revenue for
the period, as well as the recognition of Investment Tax Credits
associated with solar sale leaseback financing transactions.
Solar Investment Update:
- As of June 30, 2024, CEV had approximately 477MW of solar
capacity in service in New Jersey, New York, Connecticut, Rhode
Island, Indiana, and Michigan.
Storage and Transportation
Storage and Transportation reported third-quarter fiscal 2024
NFE of $4.1 million, compared with NFE of $2.4 million during the
same period in fiscal 2023. Fiscal 2024 year-to-date NFE were $9.8
million, compared with NFE of $11.1 million during the same period
in fiscal 2023. NFE for the third quarter of fiscal 2024 increased
as a result of higher operating revenues for the period, while the
year-to-date decrease in NFE was largely due to higher operating
and maintenance expenses.
Energy Services
Energy Services reported third-quarter fiscal 2024 net financial
loss of $(2.2) million compared with net financial loss of $(1.6)
million for the same period in fiscal 2023. Fiscal 2024
year-to-date NFE were $43.2 million, compared with NFE of $72.1
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 third-quarter fiscal
2024 NFE of $0.9 million, compared to NFE of $0.5 million for the
same period in fiscal 2023. Fiscal 2024 year-to-date NFE was $0.7
million, compared with NFE of $1.3 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 nine months of fiscal 2024, capital
expenditures were $396.5 million, including accruals, compared with
$370.0 million during the same period of fiscal 2023. The increase
in capital expenditures was primarily due to higher expenditures at
NJNG.
- During the first nine months of fiscal 2024, cash flows from
operations were $362.9 million, compared to cash flows from
operations of $387.9 million during the same period of fiscal 2023.
The decrease was largely due to changes in working capital.
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, 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, the outcome
or timing of our IIP filing to 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 477
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
Nine Months Ended
June 30,
June 30,
(Thousands, except per share data)
2024
2023
2024
2023
OPERATING REVENUES
Utility
$
157,773
$
144,971
$
913,729
$
902,880
Nonutility
117,863
119,104
487,030
728,789
Total operating revenues
275,636
264,075
1,400,759
1,631,669
OPERATING EXPENSES
Gas purchases
Utility
53,372
42,344
373,839
381,160
Nonutility
60,971
75,917
225,466
468,351
Related parties
1,729
1,870
5,407
5,467
Operation and maintenance
104,378
94,213
306,040
272,809
Regulatory rider expenses
8,343
6,120
56,761
47,525
Depreciation and amortization
40,907
38,877
121,269
113,650
Total operating expenses
269,700
259,341
1,088,782
1,288,962
OPERATING INCOME
5,936
4,734
311,977
342,707
Other income, net
9,555
5,711
31,316
15,145
Interest expense, net of capitalized
interest
31,169
30,119
94,263
89,871
(LOSS) INCOME BEFORE INCOME TAXES AND
EQUITY IN EARNINGS OF AFFILIATES
(15,678
)
(19,674
)
249,030
267,981
Income tax (benefit) provision
(2,764
)
(20,505
)
54,119
43,059
Equity in earnings of affiliates
1,340
701
3,738
2,778
NET (LOSS) INCOME
$
(11,574
)
$
1,532
$
198,649
$
227,700
(LOSS) EARNINGS PER COMMON
SHARE
Basic
$
(0.12
)
$
0.02
$
2.02
$
2.35
Diluted
$
(0.12
)
$
0.02
$
2.00
$
2.33
WEIGHTED AVERAGE SHARES
OUTSTANDING
Basic
98,983
97,168
98,409
96,849
Diluted
98,983
97,886
99,213
97,538
RECONCILIATION OF NON-GAAP
PERFORMANCE MEASURES
(Unaudited)
Three Months Ended
Nine Months Ended
June 30,
June 30,
(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 (loss) income
$
(11,574
)
$
1,532
$
198,649
$
227,700
Add:
Unrealized loss (gain) on derivative
instruments and related transactions
3,803
(12,970
)
23,860
(30,502
)
Tax effect
(903
)
3,083
(5,670
)
7,250
Effects of economic hedging related to
natural gas inventory
(385
)
24,116
(19,458
)
36,885
Tax effect
91
(5,731
)
4,624
(8,766
)
Gain on equity method investment
—
(100
)
—
(300
)
Tax effect
—
24
—
74
NFE tax adjustment
69
(284
)
116
(77
)
Net financial (loss) earnings
$
(8,899
)
$
9,670
$
202,121
$
232,264
Weighted Average Shares
Outstanding
Basic
98,983
97,168
98,409
96,849
Diluted
98,983
97,886
99,213
97,538
A reconciliation of basic earnings per
share, the closest GAAP financial measure, to basic net financial
earnings per share is as follows:
Basic (loss) earnings per share
$
(0.12
)
$
0.02
$
2.02
$
2.35
Add:
Unrealized loss (gain) on derivative
instruments and related transactions
$
0.04
$
(0.14
)
$
0.24
$
(0.31
)
Tax effect
$
(0.01
)
$
0.03
$
(0.06
)
$
0.07
Effects of economic hedging related to
natural gas inventory
$
—
$
0.25
$
(0.20
)
$
0.38
Tax effect
$
—
$
(0.06
)
$
0.05
$
(0.09
)
Basic net financial (loss) earnings per
share
$
(0.09
)
$
0.10
$
2.05
$
2.40
NATURAL GAS DISTRIBUTION
A reconciliation of gross margin, the
closest GAAP financial measure, to utility gross margin is as
follows:
Operating revenues
$
158,110
$
145,308
$
914,741
$
903,892
Less:
Natural gas purchases
55,699
44,669
380,818
388,134
Operating and maintenance (1)
35,709
31,436
91,050
88,441
Regulatory rider expense
8,343
6,120
56,761
47,525
Depreciation and amortization
28,491
25,825
82,872
76,034
Gross margin
29,868
37,258
303,240
303,758
Add:
Operating and maintenance (1)
35,709
31,436
91,050
88,441
Depreciation and amortization
28,491
25,825
82,872
76,034
Utility gross margin
$
94,068
$
94,519
$
477,162
$
468,233
(1) Excludes selling, general and
administrative expenses of $28.8 million and $26.9 million for the
three months ended June 30, 2024 and 2023, respectively, and $87.7
million and $78.1 million for the nine months ended June 30, 2024
and 2023, respectively.
RECONCILIATION OF NON-GAAP
PERFORMANCE MEASURES (continued)
(Unaudited)
Three Months Ended
Nine Months Ended
June 30,
June 30,
(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
$
62,441
$
70,172
$
306,971
$
588,684
Less:
Natural Gas purchases
61,041
76,599
226,841
471,000
Operation and maintenance (1)
3,814
3,244
21,605
14,366
Depreciation and amortization
45
51
158
170
Gross margin
(2,459
)
(9,722
)
58,367
103,148
Add:
Operation and maintenance (1)
3,814
3,244
21,605
14,366
Depreciation and amortization
45
51
158
170
Unrealized loss (gain) on derivative
instruments and related transactions
3,804
(13,601
)
28,736
(39,692
)
Effects of economic hedging related to
natural gas inventory
(385
)
24,116
(19,458
)
36,885
Financial margin
$
4,819
$
4,088
$
89,408
$
114,877
(1) Excludes selling, general and
administrative expenses of $0.4 million and $0.5 million for the
three months ended June 30, 2024 and 2023, respectively, and $1.3
million and $(1.2) million for the nine months ended June 30, 2024
and 2023, respectively.
A reconciliation of net income, the
closest GAAP financial measure, to net financial earnings is as
follows:
Net (loss) income
$
(4,919
)
$
(9,336
)
$
36,042
$
74,271
Add:
Unrealized loss (gain) on derivative
instruments and related transactions
3,804
(13,601
)
28,736
(39,692
)
Tax effect
(904
)
3,232
(6,829
)
9,433
Effects of economic hedging related to
natural gas
(385
)
24,116
(19,458
)
36,885
Tax effect
91
(5,731
)
4,624
(8,766
)
NFE tax adjustment
69
(284
)
116
(77
)
Net financial (loss) earnings
$
(2,244
)
$
(1,604
)
$
43,231
$
72,054
FINANCIAL STATISTICS BY
BUSINESS UNIT
(Unaudited)
Three Months Ended
Nine Months Ended
June 30,
June 30,
(Thousands, except per share data)
2024
2023
2024
2023
NEW JERSEY RESOURCES
Operating Revenues
Natural Gas Distribution
$
158,110
$
145,308
$
914,741
$
903,892
Clean Energy Ventures
14,648
13,178
59,268
40,376
Energy Services
62,441
70,172
306,971
588,684
Storage and Transportation
24,475
22,201
71,379
69,926
Home Services and Other
16,356
14,955
46,095
42,669
Sub-total
276,030
265,814
1,398,454
1,645,547
Eliminations
(394
)
(1,739
)
2,305
(13,878
)
Total
$
275,636
$
264,075
$
1,400,759
$
1,631,669
Operating Income (Loss)
Natural Gas Distribution
$
1,063
$
10,391
$
215,517
$
225,700
Clean Energy Ventures
(3,629
)
(3,344
)
7,015
(8,667
)
Energy Services
(2,832
)
(10,177
)
57,038
104,370
Storage and Transportation
7,937
7,207
21,171
26,524
Home Services and Other
1,388
712
1,958
1,900
Sub-total
3,927
4,789
302,699
349,827
Eliminations
2,009
(55
)
9,278
(7,120
)
Total
$
5,936
$
4,734
$
311,977
$
342,707
Equity in Earnings of
Affiliates
Storage and Transportation
$
782
$
377
$
1,860
$
2,263
Eliminations
558
324
1,878
515
Total
$
1,340
$
701
$
3,738
$
2,778
Net (Loss) Income
Natural Gas Distribution
$
(6,139
)
$
891
$
152,400
$
156,252
Clean Energy Ventures
(6,714
)
7,267
(1,808
)
(5,694
)
Energy Services
(4,919
)
(9,336
)
36,042
74,271
Storage and Transportation
4,140
2,434
9,761
11,277
Home Services and Other
881
523
665
1,307
Sub-total
(12,751
)
1,779
197,060
237,413
Eliminations
1,177
(247
)
1,589
(9,713
)
Total
$
(11,574
)
$
1,532
$
198,649
$
227,700
Net Financial (Loss) Earnings
Natural Gas Distribution
$
(6,139
)
$
891
$
152,400
$
156,252
Clean Energy Ventures
(6,714
)
7,267
(1,808
)
(5,694
)
Energy Services
(2,244
)
(1,604
)
43,231
72,054
Storage and Transportation
4,140
2,358
9,761
11,051
Home Services and Other
881
523
665
1,307
Sub-total
(10,076
)
9,435
204,249
234,970
Eliminations
1,177
235
(2,128
)
(2,706
)
Total
$
(8,899
)
$
9,670
$
202,121
$
232,264
Throughput (Bcf)
NJNG, Core Customers
19.1
19.5
75.4
75.3
NJNG, Off System/Capacity Management
12.3
13.8
76.6
52.4
Energy Services Fuel Mgmt. and Wholesale
Sales
23.6
24.0
92.0
109.0
Total
55.0
57.3
244.0
236.7
Common Stock Data
Yield at June 30,
3.9
%
3.3
%
3.9
%
3.3
%
Market Price at June 30,
$
42.74
$
47.20
$
42.74
$
47.20
Shares Out. at June 30,
99,092
97,496
99,092
97,496
Market Cap. at June 30,
$
4,235,174
$
4,601,825
$
4,235,174
$
4,601,825
Three Months Ended
Nine Months Ended
(Unaudited)
June 30,
June 30,
(Thousands, except customer and weather
data)
2024
2023
2024
2023
NATURAL GAS DISTRIBUTION
Utility Gross Margin
Operating revenues
$
158,110
$
145,308
$
914,741
$
903,892
Less:
Natural gas purchases
55,699
44,669
380,818
388,134
Operating and maintenance (1)
35,709
31,436
91,050
88,441
Regulatory rider expense
8,343
6,120
56,761
47,525
Depreciation and amortization
28,491
25,825
82,872
76,034
Gross margin
29,868
37,258
303,240
303,758
Add:
Operating and maintenance (1)
35,709
31,436
91,050
88,441
Depreciation and amortization
28,491
25,825
82,872
76,034
Total Utility Gross Margin
$
94,068
$
94,519
$
477,162
$
468,233
(1) Excludes selling, general and
administrative expenses of $28.8 million and $26.9 million for the
nine months ended June 30, 2024 and 2023, respectively, and $87.7
million and $78.1 million for the nine months ended June 30, 2024
and 2023, respectively.
Utility Gross Margin, Operating Income
and Net Income
Residential
$
59,036
$
59,723
$
330,568
$
321,017
Commercial, Industrial & Other
15,468
14,897
64,975
65,742
Firm Transportation
15,499
15,815
62,753
61,503
Total Firm Margin
90,003
90,435
458,296
448,262
Interruptible
1,146
1,149
2,680
2,572
Total System Margin
91,149
91,584
460,976
450,834
Basic Gas Supply Service Incentive
2,919
2,935
16,186
17,399
Total Utility Gross Margin
94,068
94,519
477,162
468,233
Operation and maintenance expense
64,514
58,303
178,773
166,499
Depreciation and amortization
28,491
25,825
82,872
76,034
Operating Income
$
1,063
$
10,391
$
215,517
$
225,700
Net (Loss) Income
$
(6,139
)
$
891
$
152,400
$
156,252
Net Financial (Loss) Earnings
$
(6,139
)
$
891
$
152,400
$
156,252
Throughput (Bcf)
Residential
6.2
5.7
41.1
39.9
Commercial, Industrial & Other
1.2
1.2
7.7
7.7
Firm Transportation
2.0
2.2
10.3
10.7
Total Firm Throughput
9.4
9.1
59.1
58.3
Interruptible
9.7
10.4
16.3
17.0
Total System Throughput
19.1
19.5
75.4
75.3
Off System/Capacity Management
12.3
13.8
76.6
52.4
Total Throughput
31.4
33.3
152.0
127.7
Customers
Residential
527,110
518,359
527,110
518,359
Commercial, Industrial & Other
32,318
32,084
32,318
32,084
Firm Transportation
22,569
24,360
22,569
24,360
Total Firm Customers
581,997
574,803
581,997
574,803
Interruptible
83
83
83
83
Total System Customers
582,080
574,886
582,080
574,886
Off System/Capacity Management*
20
14
20
14
Total Customers
582,100
574,900
582,100
574,900
*The number of customers represents those
active during the last month of the period.
Degree Days
Actual
409
389
3,952
3,869
Normal
468
470
4,438
4,474
Percent of Normal
87.4
%
82.8
%
89.0
%
86.5
%
Three Months Ended
Nine Months Ended
(Unaudited)
June 30,
June 30,
(Thousands, except customer, RECs and
megawatt)
2024
2023
2024
2023
CLEAN ENERGY VENTURES
Operating Revenues
SREC sales
$
201
$
184
$
26,232
$
10,307
TREC sales
4,440
4,720
9,100
8,007
SREC II sales (1)
432
271
1,094
553
Solar electricity sales
6,572
4,972
13,922
12,621
Sunlight Advantage
3,003
3,031
8,920
8,888
Total Operating Revenues
$
14,648
$
13,178
$
59,268
$
40,376
Depreciation and Amortization
$
6,981
$
6,672
$
20,834
$
18,713
Operating (Loss) Income
$
(3,629
)
$
(3,344
)
$
7,015
$
(8,667
)
Income Tax Benefit
$
(2,008
)
$
(18,237
)
$
(471
)
$
(23,079
)
Net (Loss) Income
$
(6,714
)
$
7,267
$
(1,808
)
$
(5,694
)
Net Financial (Loss) Earnings
$
(6,714
)
$
7,267
$
(1,808
)
$
(5,694
)
Solar Renewable Energy Certificates
Generated
115,950
130,978
267,155
292,753
Solar Renewable Energy Certificates
Sold
1,170
1,314
124,323
48,871
Transition Renewable Energy
Certificates Generated
31,246
31,144
63,799
52,013
Solar Renewable Energy Certificates II
Generated
4,794
2,973
12,259
5,803
Solar Megawatts Under
Construction
34.2
13.8
34.2
13.8
(1) Prior year SREC II revenue was
previously included in Solar electricity sales and other
ENERGY SERVICES
Operating Income
Operating revenues
$
62,441
$
70,172
$
306,971
$
588,684
Less:
Gas purchases
61,041
76,599
226,841
471,000
Operation and maintenance expense
4,187
3,699
22,934
13,144
Depreciation and amortization
45
51
158
170
Operating (Loss) Income
$
(2,832
)
$
(10,177
)
$
57,038
$
104,370
Net (Loss) Income
$
(4,919
)
$
(9,336
)
$
36,042
$
74,271
Financial Margin
$
4,819
$
4,088
$
89,408
$
114,877
Net Financial (Loss) Earnings
$
(2,244
)
$
(1,604
)
$
43,231
$
72,054
Gas Sold and Managed (Bcf)
23.6
24.0
92.0
109.0
STORAGE AND TRANSPORTATION
Operating Revenues
$
24,475
$
22,201
$
71,379
$
69,926
Equity in Earnings of
Affiliates
$
782
$
377
$
1,860
$
2,263
Operation and Maintenance
Expense
$
10,079
$
8,687
$
30,742
$
23,951
Other Income, Net
$
2,539
$
1,815
$
7,300
$
4,829
Interest Expense
$
5,773
$
6,430
$
17,574
$
19,265
Income Tax Provision
$
1,345
$
535
$
2,996
$
3,074
Net Income
$
4,140
$
2,434
$
9,761
$
11,277
Net Financial Earnings
$
4,140
$
2,358
$
9,761
$
11,051
HOME SERVICES AND OTHER
Operating Revenues
$
16,356
$
14,955
$
46,095
$
42,669
Operating Income
$
1,388
$
712
$
1,958
$
1,900
Net Income
$
881
$
523
$
665
$
1,307
Net Financial Earnings
$
881
$
523
$
665
$
1,307
Total Service Contract Customers at
June 30
99,999
101,748
99,999
101,748
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240805489390/en/
Media: Mike Kinney 732-938-1031
mkinney@njresources.com
Investors: Adam Prior 732-938-1145
aprior@njresources.com
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