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New Jersey Resources Reports Fiscal 2024 First-Quarter Results; Increases Net Financial Earnings Guidance for Fiscal 2024

Maintains its Long-term Projected Growth Rate

Today, New Jersey Resources Corporation (NYSE: NJR) reported results for the first quarter of fiscal 2024. Highlights include:

  • Consolidated net income of $89.4 million, compared with $115.9 million in the first quarter of fiscal 2023
  • Consolidated net financial earnings (NFE), a non-GAAP financial measure, of $72.4 million, or $0.74 per share, compared to $110.3 million, or $1.14 per share, in the first quarter of fiscal 2023. The comparable prior year period included unusually high net financial earnings at Energy Services related to Winter Storm Elliott in December 2022
  • Increases fiscal 2024 net financial earnings per share (NFEPS) guidance range to $2.85 to $3.00, from $2.70 to $2.85, a $0.15 increase, as a result of strong performance from Energy Services in January 2024, the beginning of the fiscal second quarter; maintains long-term projected NFEPS growth rate of 7 to 9 percent(1)
  • 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
  • NJNG filed with the BPU a proposed next generation of SAVEGREEN™ energy-efficiency offerings totaling $482.4 million

First-quarter fiscal 2024 net income totaled $89.4 million, or $0.91 per share, compared with $115.9 million, or $1.20 per share, for the same period in fiscal 2023. First-quarter fiscal 2024 NFE totaled $72.4 million, or $0.74 per share, compared with $110.3 million, or $1.14 per share, for the same period in fiscal 2023.

Management Commentary

Steve Westhoven, President and CEO of New Jersey Resources, stated, "Our results for the first quarter were consistent with our expectations. Additionally, our performance in the beginning of our fiscal second quarter has exceeded our original projections, as Energy Services benefited from natural gas price volatility. As a result, we are raising our fiscal 2024 NFEPS guidance range by $0.15 to $2.85 to $3.00."

Key Performance Metrics

 

Three Months Ended

 

December 31,

($ in Thousands)

2023

 

2022

Net income

$

89,411

 

$

115,921

Basic EPS

$

0.91

 

$

1.20

Net financial earnings

$

72,444

 

$

110,284

Basic net financial earnings per share

$

0.74

 

$

1.14

(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 months ended December 31, 2023 and 2022, is provided below.

 

Three Months Ended

 

December 31,

(Thousands)

 

2023

 

 

 

2022

 

Net income

$

89,411

 

 

$

115,921

 

Add:

 

 

 

Unrealized gain on derivative instruments and related transactions

 

(5,400

)

 

 

(31,503

)

Tax effect

 

1,282

 

 

 

7,487

 

Effects of economic hedging related to natural gas inventory

 

(16,228

)

 

 

23,972

 

Tax effect

 

3,857

 

 

 

(5,697

)

NFE tax adjustment

 

(478

)

 

 

104

 

Net financial earnings

$

72,444

 

 

$

110,284

 

 

 

 

 

Weighted Average Shares Outstanding

 

 

 

Basic

 

97,869

 

 

 

96,485

 

Diluted

 

98,563

 

 

 

97,083

 

 

 

 

 

Basic earnings per share

$

0.91

 

 

$

1.20

 

Add:

 

 

 

Unrealized gain on derivative instruments and related transactions

 

(0.05

)

 

 

(0.33

)

Tax effect

 

0.01

 

 

 

0.08

 

Effects of economic hedging related to natural gas inventory

 

(0.17

)

 

 

0.25

 

Tax effect

 

0.04

 

 

 

(0.06

)

Basic net financial earnings per share

$

0.74

 

 

$

1.14

 

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 months ended December 31, 2023 and 2022, is provided below.

Net financial earnings (loss) by business unit

 

Three Months Ended

 

December 31,

(Thousands)

 

2023

 

 

 

2022

 

New Jersey Natural Gas

$

51,444

 

 

$

54,664

 

Clean Energy Ventures

 

10,522

 

 

 

(3,582

)

Storage and Transportation

 

3,640

 

 

 

6,243

 

Energy Services

 

7,831

 

 

 

52,533

 

Home Services and Other

 

(600

)

 

 

(29

)

Subtotal

 

72,837

 

 

 

109,829

 

Eliminations

 

(393

)

 

 

455

 

Total

$

72,444

 

 

$

110,284

 

Fiscal 2024 NFE Guidance:

NJR is raising its fiscal 2024 NFEPS guidance range by $0.15 to a range of $2.85 to $3.00, 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

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 first-quarter fiscal 2024 NFE of $51.4 million, compared to NFE of $54.7 million during the same period in fiscal 2023. NJNG reported higher utility gross margin for the period, more than offset by higher depreciation and operating expenses.

Customer Growth:

  • NJNG added 2,129 new customers during the first quarter of fiscal 2024, compared with 2,132 in the first quarter of fiscal 2023. NJNG expects these new customers to contribute approximately $1.9 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 quarter of fiscal 2024, NJNG spent $7.3 million under the program on various distribution system reinforcement projects. In September 2023, the BPU approved NJNG's annual IIP filing, which requested a rate increase for capital expenditures of $28.2 million through June 30, 2023, which resulted in a $3.2 million revenue increase, effective October 1, 2023.

Basic Gas Supply Service (BGSS) Incentive Programs:

BGSS incentive programs contributed $5.4 million to utility gross margin in the first quarter of fiscal 2024, compared with $8.7 million during the same period of fiscal 2023. This decline was largely due to lower off-system sales margin due to lower natural gas prices and a lack of weather volatility in the first quarter of fiscal 2024.

For more information on utility gross margin, please see "Non-GAAP Financial Information" below.

Energy-Efficiency Programs:

SAVEGREEN™ invested $12.5 million in the first quarter of fiscal 2024 in energy-efficiency upgrades for customers' homes and businesses. NJNG recovered $4.4 million of its outstanding investments during the first quarter of fiscal 2024 through its energy efficiency rate.

  • On December 1, 2023, NJNG filed the proposed next generation of SAVEGREEN™ energy-efficiency offerings with the BPU. The $482.4 million proposal will strengthen NJNG’s existing energy-efficiency offerings and provide comprehensive solutions to help participating customers save energy and reduce carbon emissions, while supporting New Jersey’s ambitious climate goals. If approved by the BPU, the new SAVEGREEN™ program cycle is expected to begin January 1, 2025 and run through June 30, 2027.

Clean Energy Ventures (CEV)

CEV reported first-quarter fiscal 2024 NFE of $10.5 million, compared with a net financial loss of $(3.6) million during the same period in fiscal 2023. The increase in NFE for the first quarter of fiscal 2024 was largely due to higher SREC and Transition Renewable Energy Certificate (TREC) revenue for the period, partially offset by lower electricity prices.

Solar Investment Update:

  • As of December 31, 2023, CEV had approximately 473MW of solar capacity (including residential) in service in New Jersey, New York, Connecticut, Rhode Island, Indiana, and Michigan.

Storage and Transportation

Storage and Transportation reported first-quarter fiscal 2024 NFE of $3.6 million, compared with NFE of $6.2 million during the same period in fiscal 2023. The decrease in NFE was largely due to higher operating revenues in the prior year period relating to Winter Storm Elliott.

Energy Services

Energy Services reported first-quarter fiscal 2024 NFE of $7.8 million compared with NFE of $52.5 million for the same period in fiscal 2023. The lower NFE for the first quarter of fiscal 2024 was due primarily to higher natural gas price volatility in the prior year period, as a result of Winter Storm Elliott.

Home Services and Other Operations

Home Services and Other Operations reported a first-quarter fiscal 2024 net financial loss of $(0.6) million, which was consistent with a net financial loss of $(0.03) million for the same period in fiscal 2023.

Capital Expenditures and Cash Flows:

NJR is committed to maintaining a strong financial profile:

  • During the first quarter of fiscal 2024, capital expenditures were $118.1 million, including accruals, compared with $137.0 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 large projects being placed into service in the prior year.
  • During the first quarter of fiscal 2024, cash flows from operations were $46.4 million, compared with cash flows used in operations of $(88.9) million during the same period of fiscal 2023. The increase in operating cash flows was mostly due to decreased working capital requirements as a result of lower gas prices for the period.

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 579,600 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 473 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

 

 

December 31,

(Thousands, except per share data)

 

2023

 

2022

OPERATING REVENUES

 

 

 

 

Utility

 

$

293,093

 

$

357,409

Nonutility

 

 

174,117

 

 

366,158

Total operating revenues

 

 

467,210

 

 

723,567

OPERATING EXPENSES

 

 

 

 

Gas purchases

 

 

 

 

Utility

 

 

116,120

 

 

182,446

Nonutility

 

 

59,477

 

 

232,070

Related parties

 

 

1,879

 

 

1,827

Operation and maintenance

 

 

94,439

 

 

79,501

Regulatory rider expenses

 

 

19,189

 

 

18,251

Depreciation and amortization

 

 

40,287

 

 

36,683

Total operating expenses

 

 

331,391

 

 

550,778

OPERATING INCOME

 

 

135,819

 

 

172,789

Other income, net

 

 

6,341

 

 

4,655

Interest expense, net of capitalized interest

 

 

31,473

 

 

29,491

INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES

 

 

110,687

 

 

147,953

Income tax provision

 

 

22,936

 

 

32,978

Equity in earnings of affiliates

 

 

1,660

 

 

946

NET INCOME

 

$

89,411

 

$

115,921

 

 

 

 

 

EARNINGS PER COMMON SHARE

 

 

 

 

Basic

 

$

0.91

 

$

1.20

Diluted

 

$

0.91

 

$

1.19

 

 

 

 

 

WEIGHTED AVERAGE SHARES OUTSTANDING

 

 

 

 

Basic

 

 

97,869

 

 

96,485

Diluted

 

 

98,563

 

 

97,083

 

 

 

 

 

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES

(Unaudited)

 

 

Three Months Ended

 

 

December 31,

(Thousands)

 

 

2023

 

 

 

2022

 

NEW JERSEY RESOURCES

 

 

 

 

A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:

 

 

 

 

 

Net income

 

$

89,411

 

 

$

115,921

 

Add:

 

 

 

 

Unrealized gain on derivative instruments and related transactions

 

 

(5,400

)

 

 

(31,503

)

Tax effect

 

 

1,282

 

 

 

7,487

 

Effects of economic hedging related to natural gas inventory

 

 

(16,228

)

 

 

23,972

 

Tax effect

 

 

3,857

 

 

 

(5,697

)

NFE tax adjustment

 

 

(478

)

 

 

104

 

Net financial earnings

 

$

72,444

 

 

$

110,284

 

 

 

 

 

 

Weighted Average Shares Outstanding

 

 

 

 

Basic

 

 

97,869

 

 

 

96,485

 

Diluted

 

 

98,563

 

 

 

97,083

 

 

 

 

 

 

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

 

$

0.91

 

 

$

1.20

 

Add:

 

 

 

 

Unrealized gain on derivative instruments and related transactions

 

$

(0.05

)

 

$

(0.33

)

Tax effect

 

$

0.01

 

 

$

0.08

 

Effects of economic hedging related to natural gas inventory

 

$

(0.17

)

 

$

0.25

 

Tax effect

 

$

0.04

 

 

$

(0.06

)

Basic net financial earnings per share

 

$

0.74

 

 

$

1.14

 

 

 

 

 

 

NATURAL GAS DISTRIBUTION

 

 

 

 

 

 

 

 

A reconciliation of gross margin, the closest GAAP financial measure, to utility gross margin is as follows:

 

 

 

 

 

Operating revenues

 

$

293,430

 

 

$

357,746

 

Less:

 

 

 

 

Natural gas purchases

 

 

118,444

 

 

 

184,771

 

Operating and maintenance (1)

 

 

26,401

 

 

 

26,294

 

Regulatory rider expense

 

 

19,189

 

 

 

18,251

 

Depreciation and amortization

 

 

26,917

 

 

 

24,890

 

Gross margin

 

 

102,479

 

 

 

103,540

 

Add:

 

 

 

 

Operating and maintenance (1)

 

 

26,401

 

 

 

26,294

 

Depreciation and amortization

 

 

26,917

 

 

 

24,890

 

Utility gross margin

 

$

155,797

 

 

$

154,724

 

(1) Excludes selling, general and administrative expenses of $28.3 million and $23.4 million for the three months ended December 31, 2023 and 2022, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (continued)

(Unaudited)

 

 

Three Months Ended

 

 

December 31,

(Thousands)

 

 

2023

 

 

 

2022

 

ENERGY SERVICES

 

 

 

 

 

 

 

 

 

A reconciliation of gross margin, the closest GAAP financial measure, to Energy Services' financial margin is as follows:

 

 

 

 

 

Operating revenues

 

$

99,668

 

 

$

321,782

 

Less:

 

 

 

 

Natural Gas purchases

 

 

60,166

 

 

 

233,287

 

Operation and maintenance (1)

 

 

4,689

 

 

 

3,455

 

Depreciation and amortization

 

 

57

 

 

 

57

 

Gross margin

 

 

34,756

 

 

 

84,983

 

Add:

 

 

 

 

Operation and maintenance (1)

 

 

4,689

 

 

 

3,455

 

Depreciation and amortization

 

 

57

 

 

 

57

 

Unrealized gain on derivative instruments and related transactions

 

 

(4,266

)

 

 

(39,886

)

Effects of economic hedging related to natural gas inventory

 

 

(16,228

)

 

 

23,972

 

Financial margin

 

$

19,008

 

 

$

72,581

 

(1) Excludes selling, general and administrative expenses of $0.4 million and $(2.3) million for the three months ended December 31, 2023 and 2022, respectively.

 

 

 

 

 

A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:

 

 

 

 

 

Net income

 

$

23,933

 

 

$

64,561

 

Add:

 

 

 

 

Unrealized gain on derivative instruments and related transactions

 

 

(4,266

)

 

 

(39,886

)

Tax effect

 

 

1,013

 

 

 

9,479

 

Effects of economic hedging related to natural gas

 

 

(16,228

)

 

 

23,972

 

Tax effect

 

 

3,857

 

 

 

(5,697

)

NFE tax adjustment

 

 

(478

)

 

 

104

 

Net financial earnings

 

$

7,831

 

 

$

52,533

 

 

 

 

 

 

FINANCIAL STATISTICS BY BUSINESS UNIT

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended

 

 

December 31,

(Thousands, except per share data)

 

 

2023

 

 

 

2022

 

NEW JERSEY RESOURCES

 

 

 

 

 

 

 

 

 

Operating Revenues

 

 

 

 

Natural Gas Distribution

 

$

293,430

 

 

$

357,746

 

Clean Energy Ventures

 

 

35,295

 

 

 

12,792

 

Energy Services

 

 

99,668

 

 

 

321,782

 

Storage and Transportation

 

 

23,862

 

 

 

26,838

 

Home Services and Other

 

 

14,834

 

 

 

14,266

 

Sub-total

 

 

467,089

 

 

 

733,424

 

Eliminations

 

 

121

 

 

 

(9,857

)

Total

 

$

467,210

 

 

$

723,567

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

 

 

 

Natural Gas Distribution

 

$

74,175

 

 

$

80,113

 

Clean Energy Ventures

 

 

18,323

 

 

 

(321

)

Energy Services

 

 

34,337

 

 

 

87,315

 

Storage and Transportation

 

 

7,324

 

 

 

12,617

 

Home Services and Other

 

 

(208

)

 

 

51

 

Sub-total

 

 

133,951

 

 

 

179,775

 

Eliminations

 

 

1,868

 

 

 

(6,986

)

Total

 

$

135,819

 

 

$

172,789

 

 

 

 

 

 

 

 

 

 

 

Equity in Earnings of Affiliates

 

 

 

 

Storage and Transportation

 

$

993

 

 

$

909

 

Eliminations

 

 

667

 

 

 

37

 

Total

 

$

1,660

 

 

$

946

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

 

 

 

Natural Gas Distribution

 

$

51,444

 

 

$

54,664

 

Clean Energy Ventures

 

 

10,522

 

 

 

(3,582

)

Energy Services

 

 

23,933

 

 

 

64,561

 

Storage and Transportation

 

 

3,640

 

 

 

6,243

 

Home Services and Other

 

 

(600

)

 

 

(29

)

Sub-total

 

 

88,939

 

 

 

121,857

 

Eliminations

 

 

472

 

 

 

(5,936

)

Total

 

$

89,411

 

 

$

115,921

 

 

 

 

 

 

 

 

 

 

 

Net Financial Earnings (Loss)

 

 

 

 

Natural Gas Distribution

 

$

51,444

 

 

$

54,664

 

Clean Energy Ventures

 

 

10,522

 

 

 

(3,582

)

Energy Services

 

 

7,831

 

 

 

52,533

 

Storage and Transportation

 

 

3,640

 

 

 

6,243

 

Home Services and Other

 

 

(600

)

 

 

(29

)

Sub-total

 

 

72,837

 

 

 

109,829

 

Eliminations

 

 

(393

)

 

 

455

 

Total

 

$

72,444

 

 

$

110,284

 

 

 

 

 

 

 

 

 

 

 

Throughput (Bcf)

 

 

 

 

NJNG, Core Customers

 

 

23.4

 

 

 

25.0

 

NJNG, Off System/Capacity Management

 

 

27.2

 

 

 

17.9

 

Energy Services Fuel Mgmt. and Wholesale Sales

 

 

30.1

 

 

 

44.2

 

Total

 

 

80.7

 

 

 

87.1

 

 

 

 

 

 

 

 

 

 

 

Common Stock Data

 

 

 

 

Yield at December 31,

 

 

3.8

%

 

 

3.1

%

Market Price at December 31,

 

$

44.58

 

 

$

49.62

 

Shares Out. at December 31,

 

 

98,202

 

 

 

96,803

 

Market Cap. at December 31,

 

$

4,377,857

 

 

$

4,803,389

 

 

 

 

 

 

 

Three Months Ended

(Unaudited)

December 31,

(Thousands, except customer and weather data)

 

2023

 

 

 

2022

 

NATURAL GAS DISTRIBUTION

 

 

 

 

 

Utility Gross Margin

 

 

Operating revenues

$

293,430

 

$

357,746

 

Less:

 

 

Natural gas purchases

 

118,444

 

 

184,771

 

Operating and maintenance (1)

 

26,401

 

 

26,294

 

Regulatory rider expense

 

19,189

 

 

18,251

 

Depreciation and amortization

 

26,917

 

 

24,890

 

Gross margin

 

102,479

 

 

103,540

 

Add:

 

 

Operating and maintenance (1)

 

26,401

 

 

26,294

 

Depreciation and amortization

 

26,917

 

 

24,890

 

Total Utility Gross Margin

$

155,797

 

$

154,724

 

(1) Excludes selling, general and administrative expenses of $28.3 million and $23.4 million for the three months ended December 31, 2023 and 2022, respectively.

 

 

 

Utility Gross Margin, Operating Income and Net Income

 

 

Residential

$

108,037

 

$

104,018

 

Commercial, Industrial & Other

 

20,831

 

 

20,779

 

Firm Transportation

 

20,764

 

 

20,480

 

Total Firm Margin

 

149,632

 

 

145,277

 

Interruptible

 

784

 

 

761

 

Total System Margin

 

150,416

 

 

146,038

 

Off System/Capacity Management/FRM/Storage Incentive

 

5,381

 

 

8,686

 

Total Utility Gross Margin

 

155,797

 

 

154,724

 

Operation and maintenance expense

 

54,705

 

 

49,721

 

Depreciation and amortization

 

26,917

 

 

24,890

 

Operating Income

$

74,175

 

$

80,113

 

 

 

 

Net Income

$

51,444

 

$

54,664

 

 

 

 

Net Financial Earnings

$

51,444

 

$

54,664

 

 

 

 

Throughput (Bcf)

 

 

Residential

 

13.9

 

 

14.7

 

Commercial, Industrial & Other

 

2.6

 

 

2.7

 

Firm Transportation

 

3.6

 

 

4.0

 

Total Firm Throughput

 

20.1

 

 

21.4

 

Interruptible

 

3.3

 

 

3.6

 

Total System Throughput

 

23.4

 

 

25.0

 

Off System/Capacity Management

 

27.2

 

 

17.9

 

Total Throughput

 

50.6

 

 

42.9

 

 

 

 

Customers

 

 

Residential

 

523,623

 

 

514,452

 

Commercial, Industrial & Other

 

32,872

 

 

32,302

 

Firm Transportation

 

22,989

 

 

25,628

 

Total Firm Customers

 

579,484

 

 

572,382

 

Interruptible

 

83

 

 

88

 

Total System Customers

 

579,567

 

 

572,470

 

Off System/Capacity Management*

 

33

 

 

30

 

Total Customers

 

579,600

 

 

572,500

 

*The number of customers represents those active during the last month of the period.

Degree Days

 

 

Actual

 

1,408

 

 

1,543

 

Normal

 

1,534

 

 

1,547

 

Percent of Normal

 

91.8

%

 

99.7

%

 

 

 

 

Three Months Ended

(Unaudited)

December 31,

(Thousands, except customer, RECs and megawatt)

 

2023

 

 

 

2022

 

CLEAN ENERGY VENTURES

 

 

 

 

 

Operating Revenues

 

 

SREC sales

$

25,931

 

$

3,886

 

TREC sales

 

2,403

 

 

1,202

 

SREC II sales (1)

 

247

 

 

185

 

Solar electricity sales

 

3,654

 

 

4,582

 

Sunlight Advantage

 

3,060

 

 

2,937

 

Total Operating Revenues

$

35,295

 

$

12,792

 

Depreciation and Amortization

$

6,922

 

$

5,576

 

 

 

 

Operating Income (Loss)

$

18,323

 

$

(321

)

 

 

 

Income Tax Provision (Benefit)

$

3,131

 

$

(1,837

)

 

 

 

Net Income (Loss)

$

10,522

 

$

(3,582

)

 

 

 

Net Financial Earnings (Loss)

$

10,522

 

$

(3,582

)

 

 

 

Solar Renewable Energy Certificates Generated

 

93,570

 

 

98,462

 

 

 

 

Solar Renewable Energy Certificates Sold

 

122,439

 

 

16,812

 

 

 

 

Transition Renewable Energy Certificates Generated

 

16,705

 

 

8,345

 

 

 

 

Solar Renewable Energy Certificates II Generated

 

2,773

 

 

1,784

 

 

 

 

Solar Megawatts Under Construction

 

34.3

 

 

45.5

 

(1) Prior year SREC II revenue was previously included in Solar electricity sales and other

 

 

 

ENERGY SERVICES

 

 

 

 

 

Operating Income

 

 

Operating revenues

$

99,668

 

$

321,782

 

Less:

 

 

Gas purchases

 

60,166

 

 

233,287

 

Operation and maintenance expense

 

5,108

 

 

1,123

 

Depreciation and amortization

 

57

 

 

57

 

Operating Income

$

34,337

 

$

87,315

 

 

 

 

Net Income

$

23,933

 

$

64,561

 

 

 

 

Financial Margin

$

19,008

 

$

72,581

 

 

 

 

Net Financial Earnings

$

7,831

 

$

52,533

 

 

 

 

Gas Sold and Managed (Bcf)

 

30.1

 

 

44.2

 

 

 

 

STORAGE AND TRANSPORTATION

 

 

 

 

 

Operating Revenues

$

23,862

 

$

26,838

 

 

 

 

Equity in Earnings of Affiliates

$

993

 

$

909

 

 

 

 

Operation and Maintenance Expense

$

10,100

 

$

7,474

 

 

 

 

Other Income, Net

$

2,288

 

$

1,367

 

 

 

 

Interest Expense

$

5,933

 

$

6,707

 

 

 

 

Income Tax Provision

$

1,032

 

$

1,943

 

 

 

 

Net Income

$

3,640

 

$

6,243

 

 

 

 

Net Financial Earnings

$

3,640

 

$

6,243

 

 

 

 

HOME SERVICES AND OTHER

 

 

 

 

 

Operating Revenues

$

14,834

 

$

14,266

 

 

 

 

Operating (Loss) Income

$

(208

)

$

51

 

 

 

 

Net Loss

$

(600

)

$

(29

)

 

 

 

Net Financial Loss

$

(600

)

$

(29

)

 

 

 

Total Service Contract Customers at Dec 31

 

100,840

 

 

102,600

 

 

 

 

 

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