Today, New Jersey Resources Corporation (NYSE: NJR) reported
results for the fiscal 2024 fourth quarter and year-ended September
30, 2024. Financial highlights include:
- Fiscal 2024 consolidated net income of $289.8 million, or $2.94
per share, compared with net income of $264.7 million, or $2.73 per
share, in fiscal 2023
- Consolidated net financial earnings (NFE), a non-GAAP financial
measure, of $290.8 million, or $2.95 per share, in fiscal 2024,
compared to NFE of $261.8 million, or $2.70 per share, in fiscal
2023
- Achieved higher end of fiscal 2024 net financial earnings per
share (NFEPS) guidance range of $2.85 to $3.00, which was increased
in February 2024
- Fiscal 2024 fourth-quarter net income totaled $91.1 million, or
$0.92 per share, compared with net income of $37.0 million, or
$0.38 per share, for the same period in fiscal 2023. The increase
was largely due to higher operating revenue at Energy Services as a
result of the Asset Management Agreements (AMAs) signed in December
2020
- Fiscal 2024 fourth-quarter NFE totaled $88.7 million, or $0.89
per share, compared with $29.6 million, or $0.30 per share, for the
same period in fiscal 2023
Regulatory and Operating Highlights
- New Jersey Natural Gas (NJNG) received approval from the New
Jersey Board of Public Utilities (BPU) on the settlement of its
base rate case, authorizing a $157.0 million increase to its base
rates
- NJNG received approval from the BPU for the next generation of
SAVEGREEN®, a new $385.6 million energy efficiency program that
begins on January 1, 2025 and continues through June 30, 2027
- In November 2024, Clean Energy Ventures (CEV) announced the
sale of its 91 megawatt (MW) residential solar portfolio for a
total of $132.5 million
- On September 30, 2024, Adelphia Gateway, LLC (Adelphia) filed a
general Section 4 rate case with the Federal Energy Regulatory
Commission (FERC). Adelphia anticipates that FERC will allow it to
place the rates into effect during the second half of 2025, subject
to refund and the outcome of a hearing to be established by
FERC
Fiscal 2025 Outlook
- Maintains 7 to 9 percent long-term NFEPS growth target, and
after multiple years of outperformance is rebasing this target off
$2.83 per share for fiscal 2025, consistent with our previously
communicated guidance1
- Introduces fiscal 2025 NFEPS guidance range of $3.05 to $3.20,
which is higher than the range implied by our long-term NFEPS
growth target as a result of the one-time gain from the sale of
NJR's residential solar portfolio
- Increased fiscal 2025 dividend by 7.1 percent to $1.80 per
share
Management Commentary
Steve Westhoven, President and CEO of New Jersey Resources,
stated, "Fiscal 2024 was an excellent year for NJR, with solid
financial performance across all business segments. We achieved
NFEPS at the higher end of our guidance, which was raised in
February. This marks the fourth consecutive year of exceeding our 7
to 9 percent stated NFEPS growth rate. We advanced our strategic
objectives by settling our base rate case and the largest energy
efficiency program in NJNG's history, while making key investments
to position us for continued long-term success."
1.
The starting point for our previously
communicated long-term growth guidance was the midpoint of our FY
2022 initial NFEPS guidance of $2.20 - $2.30. This compounded for
three years using the midpoint of our NFEPS 7 to 9 percent
long-term annual growth projections is $2.83
Performance Metrics
Three Months Ended
Twelve Months Ended
September 30,
September 30,
($ in Thousands)
2024
2023
2024
2023
Net income
$
91,126
$
37,024
$
289,775
$
264,724
Basic EPS
$
0.92
$
0.38
$
2.94
$
2.73
Net financial earnings
$
88,707
$
29,563
$
290,828
$
261,827
Basic net financial earnings per share
$
0.89
$
0.30
$
2.95
$
2.70
A reconciliation of net income to NFE for the three and twelve
months ended September 30, 2024 and 2023, is provided below.
Three Months Ended
Twelve Months Ended
September 30,
September 30,
(Thousands)
2024
2023
2024
2023
Net income
$
91,126
$
37,024
$
289,775
$
264,724
Add:
Unrealized (gain) loss on derivative
instruments and related transactions
(4,286
)
(7,579
)
19,574
(38,081
)
Tax effect
1,018
1,800
(4,652
)
9,050
Effects of economic hedging related to
natural gas inventory
1,266
(2,186
)
(18,192
)
34,699
Tax effect
(301
)
520
4,323
(8,246
)
Gain on equity method investment
—
—
—
(300
)
Tax effect
—
(93
)
—
(19
)
NFE tax adjustment
(116
)
77
—
—
Net financial earnings
$
88,707
$
29,563
$
290,828
$
261,827
Weighted Average Shares
Outstanding
Basic
99,308
97,568
98,634
97,028
Diluted
99,964
98,192
99,289
97,627
Basic earnings per share
$
0.92
$
0.38
$
2.94
$
2.73
Add:
Unrealized (gain) loss on derivative
instruments and related transactions
(0.04
)
(0.08
)
0.20
(0.39
)
Tax effect
—
0.02
(0.05
)
0.09
Effects of economic hedging related to
natural gas inventory
0.01
(0.02
)
(0.18
)
0.36
Tax effect
—
—
0.04
(0.09
)
Basic net financial earnings per
share
$
0.89
$
0.30
$
2.95
$
2.70
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 by business segment for the three and
twelve months ended September 30, 2024 and 2023, is provided
below.
Net financial (loss) earnings by
business segment
Three Months Ended
Twelve Months Ended
September 30,
September 30,
(Thousands)
2024
2023
2024
2023
New Jersey Natural Gas
$
(19,000
)
$
(24,838
)
$
133,400
$
131,414
Clean Energy Ventures
35,470
50,152
33,662
44,458
Storage and Transportation
2,468
1,784
12,229
12,835
Energy Services
68,284
(3,537
)
111,515
68,517
Home Services and Other
(639
)
3,451
26
4,758
Subtotal
86,583
27,012
290,832
261,982
Eliminations
2,124
2,551
(4
)
(155
)
Total
$
88,707
$
29,563
$
290,828
$
261,827
Fiscal 2025 NFE Guidance:
NJR is introducing its fiscal 2025 NFEPS guidance range of $3.05
to $3.20, subject to the risks and uncertainties identified below
under "Forward-Looking Statements." Fiscal 2025 NFEPS guidance is
higher than the range implied by our 7 to 9 percent long-term NFEPS
growth target as a result of the one-time gain from the sale of
NJR's residential solar portfolio.
The following chart represents NJR’s current expected
contributions from its business segments for fiscal 2025 (which
takes into account the impact of the one-time gain from the sale of
NJR's residential solar portfolio):
Segment
Expected fiscal 2025
net financial earnings contribution
New Jersey Natural Gas
65 to 75 percent
Clean Energy Ventures
20 to 25 percent
Storage and Transportation
3 to 7 percent
Energy Services
3 to 7 percent
Home Services and Other
0 to 1 percent
In providing fiscal 2025 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 fiscal 2024 NFE of $133.4 million, compared to NFE
of $131.4 million during fiscal 2023. NJNG reported fiscal 2024
fourth-quarter net financial loss of $(19.0) million, compared to a
net financial loss of $(24.8) million during the same period in
fiscal 2023. The increase in NFE for the year was due primarily to
higher utility gross margin due to customer growth, partially
offset by higher depreciation expenses.
Customer Growth:
- NJNG added 8,079 new customers during the year, finishing
fiscal 2024 with a total of approximately 583,000 customers in New
Jersey’s Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington
counties. NJNG expects new customers added during fiscal 2024 to
contribute approximately $6.8 million of incremental utility gross
margin on an annualized basis.
Base Rate Case Settlement:
- On November 21, 2024, the BPU issued an order adopting a
stipulation of settlement approving a $157.0M increase to base
rates, effective November 21, 2024. The increase includes an
overall rate of return on rate base of 7.08 percent, return on
common equity of 9.60 percent, a common equity ratio of 54.0
percent and a depreciation rate of 3.21 percent.
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 fiscal 2024, NJNG spent $42.2 million
under the program on various distribution system reinforcement
projects. NJNG submitted its annual IIP filing to the BPU
requesting a rate increase for capital expenditures during fiscal
2024. The BPU approved this filing, which will result in a $4.7
million revenue increase, with an effective date of October 1,
2024.
Basic Gas Supply Service (BGSS) Incentive Programs:
BGSS incentive programs contributed $17.9 million to utility
gross margin in fiscal 2024, compared with $20.0 million in fiscal
2023. This decline was largely due to decreased margins from
storage incentive along with lower off-system sales margin due to
less market volatility and lower capacity release volumes.
For more information on utility gross margin, please see
"Non-GAAP Financial Information" below.
Energy-Efficiency Programs:
SAVEGREEN® invested $71.3 million in fiscal 2024 in
energy-efficiency upgrades for customers' homes and businesses.
NJNG recovered $28.6 million of its outstanding investments during
fiscal 2024 through its energy efficiency rate.
- On October 30, 2024, NJNG received approval from the BPU for a
new $385.6 million SAVEGREEN® program, the largest in NJNG's
history. The program is effective January 1, 2025 through June 30,
2027.
Clean Energy Ventures (CEV)
CEV reported fiscal 2024 NFE of $33.7 million, compared with NFE
of $44.5 million during fiscal 2023. Fiscal 2024 fourth-quarter NFE
were $35.5 million, compared with NFE of $50.2 million during the
same period in fiscal 2023. The decrease in NFE for fiscal 2024 was
largely due to a reversal of a valuation allowance on certain
deferred tax assets in fiscal 2023 that did not reoccur in fiscal
2024. The decrease in NFE for the fiscal 2024 fourth quarter was
largely due to lower SREC and Transition Renewable Energy
Certificate (TREC) revenue for the period.
Solar Investment Update:
- As of September 30, 2024, CEV had approximately 386MW of
commercial solar capacity in service in New Jersey, New York,
Connecticut, Rhode Island, Indiana, and Michigan.
- In November 2024, CEV announced the sale of its 91MW
residential solar portfolio for a total of $132.5 million. NJR
expects to record a gain on sale in fiscal 2025 and intends to use
the proceeds to pay down corporate debt and for general working
capital purposes.
Storage and Transportation
Storage and Transportation reported fiscal 2024 NFE of $12.2
million, compared with NFE of $12.8 million in fiscal 2023. Fiscal
2024 fourth-quarter NFE were $2.5 million, compared with NFE of
$1.8 million during the same period in fiscal 2023. Fiscal 2024 NFE
decreased slightly due to higher operating and maintenance
expenses, partially offset by higher revenues during the year.
Energy Services
Energy Services reported fiscal 2024 NFE of $111.5 million,
compared with NFE of $68.5 million in fiscal 2023. Fiscal 2024
fourth-quarter NFE were $68.3 million compared with a net financial
loss of $(3.5) million for the same period in fiscal 2023. The
increase in NFE for both periods was due primarily to higher
contributions from the AMAs signed in December 2020.
Home Services and Other Operations
Home Services and Other Operations reported fiscal 2024 NFE of
$0.03 million, compared with NFE of $4.8 million in fiscal 2023.
Fiscal 2024 fourth-quarter net financial loss was $(0.6) million,
compared to NFE of $3.5 million for the same period in fiscal 2023.
The decrease in NFE for both periods was largely due to higher
operations and maintenance expenses.
Capital Expenditures and Cash Flows:
NJR is committed to maintaining a strong financial profile:
- During fiscal 2024, capital expenditures were $575.1 million,
including accruals, compared with $537.3 million during fiscal
2023. The increase in capital expenditures was primarily due to
higher expenditures at NJNG.
- During fiscal 2024, cash flows from operations were $427.4
million, compared to cash flows from operations of $479.0 million
during fiscal 2023. The decrease was largely due to changes in the
mix of working capital components.
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, statements
regarding NJR’s NFEPS guidance for fiscal 2025, projected NFEPS
growth rates and our guidance range, forecasted contributions of
business segments to NJR’s NFE for fiscal 2025, forecasted increase
in the fiscal 2025 dividend, customer growth at NJNG and their
expected contributions, expected impact of the sale of NJR’s
residential solar portfolio and expected use of proceeds from the
sale, infrastructure programs and investments, future
decarbonization opportunities including IIP, Energy Efficiency
programs, including BGSS, the financial impact of the outcome of
base rate cases with the BPU, the outcome or timing of Adelphia’s
rate case with FERC, and other legal and regulatory expectations,
and statements that include other projections, predictions,
expectations or beliefs about future events or results or otherwise
are not statements of historical fact.
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 website, 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 new information, future
events or otherwise, except as required by law.
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 customers in New Jersey’s Monmouth, Ocean,
Morris, Middlesex, Sussex and Burlington counties.
- Clean Energy Ventures invests in, owns and operates
solar projects, providing 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 SAVEGREEN®.
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
Twelve Months Ended
September 30,
September 30,
(Thousands, except per share data)
2024
2023
2024
2023
OPERATING REVENUES
Utility
$
104,753
$
108,404
$
1,018,482
$
1,011,284
Nonutility
291,027
222,921
778,057
951,710
Total operating revenues
395,780
331,325
1,796,539
1,962,994
OPERATING EXPENSES
Gas purchases
Utility
31,493
34,998
405,332
416,158
Nonutility
78,960
87,228
304,426
555,579
Related parties
1,740
1,739
7,147
7,206
Operation and maintenance
88,596
100,759
394,636
373,568
Regulatory rider expenses
3,566
3,017
60,327
50,542
Depreciation and amortization
45,298
39,291
166,567
152,941
Total operating expenses
249,653
267,032
1,338,435
1,555,994
OPERATING INCOME
146,127
64,293
458,104
407,000
Other income, net
10,237
10,938
41,553
26,083
Interest expense, net of capitalized
interest
36,012
33,143
130,275
123,014
INCOME BEFORE INCOME TAXES AND EQUITY
IN EARNINGS OF AFFILIATES
120,352
42,088
369,382
310,069
Income tax provision
30,787
6,216
84,906
49,275
Equity in earnings of affiliates
1,561
1,152
5,299
3,930
NET INCOME
$
91,126
$
37,024
$
289,775
$
264,724
EARNINGS PER COMMON SHARE
Basic
$
0.92
$
0.38
$
2.94
$
2.73
Diluted
$
0.91
$
0.38
$
2.92
$
2.71
WEIGHTED AVERAGE SHARES
OUTSTANDING
Basic
99,308
97,568
98,634
97,028
Diluted
99,964
98,192
99,289
97,627
RECONCILIATION OF NON-GAAP
PERFORMANCE MEASURES
(Unaudited)
Three Months Ended
Twelve Months Ended
September 30,
September 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 income
$
91,126
$
37,024
$
289,775
$
264,724
Add:
Unrealized (gain) loss on derivative
instruments and related transactions
(4,286
)
(7,579
)
19,574
(38,081
)
Tax effect
1,018
1,800
(4,652
)
9,050
Effects of economic hedging related to
natural gas inventory
1,266
(2,186
)
(18,192
)
34,699
Tax effect
(301
)
520
4,323
(8,246
)
Gain on equity method investment
—
—
—
(300
)
Tax effect
—
(93
)
—
(19
)
NFE tax adjustment
(116
)
77
—
—
Net financial earnings
$
88,707
$
29,563
$
290,828
$
261,827
Weighted Average Shares
Outstanding
Basic
99,308
97,568
98,634
97,028
Diluted
99,964
98,192
99,289
97,627
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
$
0.92
$
0.38
$
2.94
$
2.73
Add:
Unrealized (gain) loss on derivative
instruments and related transactions
$
(0.04
)
$
(0.08
)
$
0.20
$
(0.39
)
Tax effect
$
—
$
0.02
$
(0.05
)
$
0.09
Effects of economic hedging related to
natural gas inventory
$
0.01
$
(0.02
)
$
(0.18
)
$
0.36
Tax effect
$
—
$
—
$
0.04
$
(0.09
)
Basic net financial earnings per
share
$
0.89
$
0.30
$
2.95
$
2.70
NATURAL GAS DISTRIBUTION
A reconciliation of gross margin, the
closest GAAP financial measure, to utility gross margin is as
follows:
Operating revenues
$
105,091
$
108,741
$
1,019,832
$
1,012,633
Less:
Natural gas purchases
33,817
37,323
414,635
425,457
Operating and maintenance (1)
22,935
31,605
113,984
115,292
Regulatory rider expense
3,566
3,017
60,327
50,542
Depreciation and amortization
29,620
26,292
112,492
102,326
Gross margin
15,153
10,504
318,394
319,016
Add:
Operating and maintenance (1)
22,935
31,605
113,984
115,292
Depreciation and amortization
29,620
26,292
112,492
102,326
Utility gross margin
$
67,708
$
68,401
$
544,870
$
536,634
(1) Excludes selling, general and
administrative expenses of $23.6 million and $28.7 million for the
three months ended September 30, 2024 and 2023, respectively, and
$111.3 million and $111.5 million for the fiscal years ended
September 30, 2024 and 2023, respectively.
RECONCILIATION OF NON-GAAP
PERFORMANCE MEASURES (continued)
(Unaudited)
Three Months Ended
Twelve Months Ended
September 30,
September 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
$
178,420
$
102,932
$
485,391
$
691,616
Less:
Natural Gas purchases
79,097
87,932
305,938
558,932
Operation and maintenance (1)
1,583
5,833
23,189
20,199
Depreciation and amortization
47
51
205
221
Gross margin
97,693
9,116
156,059
112,264
Add:
Operation and maintenance (1)
1,583
5,833
23,189
20,199
Depreciation and amortization
47
51
205
221
Unrealized (gain) loss on derivative
instruments and related transactions
(4,287
)
(8,559
)
24,449
(48,251
)
Effects of economic hedging related to
natural gas inventory
1,266
(2,186
)
(18,192
)
34,699
Financial margin
$
96,302
$
4,255
$
185,710
$
119,132
(1) Excludes selling, general and
administrative expenses of $0.5 million and $0.4 million for the
three months ended September 30, 2024 and 2023, respectively, and
$1.8 million and $(0.8) million for the fiscal years ended
September 30, 2024 and 2023, respectively.
A reconciliation of net income, the
closest GAAP financial measure, to net financial earnings is as
follows:
Net income
$
70,703
$
4,577
$
106,745
$
78,848
Add:
Unrealized (gain) loss on derivative
instruments and related transactions
(4,287
)
(8,559
)
24,449
(48,251
)
Tax effect
1,019
2,034
(5,810
)
11,467
Effects of economic hedging related to
natural gas
1,266
(2,186
)
(18,192
)
34,699
Tax effect
(301
)
520
4,323
(8,246
)
NFE tax adjustment
(116
)
77
—
—
Net financial earnings (loss)
$
68,284
$
(3,537
)
$
111,515
$
68,517
FINANCIAL STATISTICS BY
BUSINESS UNIT
(Unaudited)
Three Months Ended
Twelve Months Ended
September 30,
September 30,
(Thousands, except per share data)
2024
2023
2024
2023
NEW JERSEY RESOURCES
Operating Revenues
Natural Gas Distribution
$
105,091
$
108,741
$
1,019,832
$
1,012,633
Clean Energy Ventures
71,295
83,755
130,563
124,131
Energy Services
178,420
102,932
485,391
691,616
Storage and Transportation
24,830
22,933
96,209
92,859
Home Services and Other
16,540
14,969
62,635
57,638
Sub-total
396,176
333,330
1,794,630
1,978,877
Eliminations
(396
)
(2,005
)
1,909
(15,883
)
Total
$
395,780
$
331,325
$
1,796,539
$
1,962,994
Operating (Loss) Income
Natural Gas Distribution
$
(8,399
)
$
(18,172
)
$
207,118
$
207,528
Clean Energy Ventures
51,637
67,389
58,652
58,722
Energy Services
97,241
8,742
154,279
113,112
Storage and Transportation
6,027
5,901
27,198
32,425
Home Services and Other
684
595
2,642
2,495
Sub-total
147,190
64,455
449,889
414,282
Eliminations
(1,063
)
(162
)
8,215
(7,282
)
Total
$
146,127
$
64,293
$
458,104
$
407,000
Equity in Earnings of
Affiliates
Storage and Transportation
$
956
$
863
$
2,816
$
3,126
Eliminations
605
289
2,483
804
Total
$
1,561
$
1,152
$
5,299
$
3,930
Net (Loss) Income
Natural Gas Distribution
$
(19,000
)
$
(24,838
)
$
133,400
$
131,414
Clean Energy Ventures
35,470
50,152
33,662
44,458
Energy Services
70,703
4,577
106,745
78,848
Storage and Transportation
2,468
1,877
12,229
13,154
Home Services and Other
(639
)
3,451
26
4,758
Sub-total
89,002
35,219
286,062
272,632
Eliminations
2,124
1,805
3,713
(7,908
)
Total
$
91,126
$
37,024
$
289,775
$
264,724
Net Financial (Loss) Earnings
Natural Gas Distribution
$
(19,000
)
$
(24,838
)
$
133,400
$
131,414
Clean Energy Ventures
35,470
50,152
33,662
44,458
Energy Services
68,284
(3,537
)
111,515
68,517
Storage and Transportation
2,468
1,784
12,229
12,835
Home Services and Other
(639
)
3,451
26
4,758
Sub-total
86,583
27,012
290,832
261,982
Eliminations
2,124
2,551
(4
)
(155
)
Total
$
88,707
$
29,563
$
290,828
$
261,827
Throughput (Bcf)
NJNG, Core Customers
15.1
17.4
90.5
93.4
NJNG, Off System/Capacity Management
8.4
20.6
85.0
72.6
Energy Services Fuel Mgmt. and Wholesale
Sales
33.3
41.4
125.3
150.4
Total
56.8
79.4
300.8
316.4
Common Stock Data
Yield at September 30,
3.8
%
4.1
%
3.8
%
4.1
%
Market Price at September 30,
$
47.20
$
40.63
$
47.20
$
40.63
Shares Out. at September 30,
99,461
97,584
99,461
97,584
Market Cap. at September 30,
$
4,694,580
$
3,964,856
$
4,694,580
$
3,964,856
Three Months Ended
Twelve Months Ended
(Unaudited)
September 30,
September 30,
(Thousands, except customer and weather
data)
2024
2023
2024
2023
NATURAL GAS DISTRIBUTION
Utility Gross Margin
Operating revenues
$
105,091
$
108,741
$
1,019,832
$
1,012,633
Less:
Natural gas purchases
33,817
37,323
414,635
425,457
Operating and maintenance (1)
22,935
31,605
113,984
115,292
Regulatory rider expense
3,566
3,017
60,327
50,542
Depreciation and amortization
29,620
26,292
112,492
102,326
Gross margin
15,153
10,504
318,394
319,016
Add:
Operating and maintenance (1)
22,935
31,605
113,984
115,292
Depreciation and amortization
29,620
26,292
112,492
102,326
Total Utility Gross Margin
$
67,708
$
68,401
$
544,870
$
536,634
(1) Excludes selling, general and
administrative expenses of $23.6 million and $28.7 million for the
fiscal years ended September 30, 2024 and 2023, respectively, and
$111.3 million and $111.5 million for the fiscal years ended
September 30, 2024 and 2023, respectively.
Utility Gross Margin, Operating Income
and Net Income
Residential
$
38,954
$
39,121
$
369,522
$
360,138
Commercial, Industrial & Other
13,058
10,808
78,033
76,550
Firm Transportation
12,888
14,611
75,641
76,114
Total Firm Margin
64,900
64,540
523,196
512,802
Interruptible
1,118
1,240
3,798
3,812
Total System Margin
66,018
65,780
526,994
516,614
Basic Gas Supply Service Incentive
1,690
2,621
17,876
20,020
Total Utility Gross Margin
67,708
68,401
544,870
536,634
Operation and maintenance expense
46,487
60,281
225,260
226,780
Depreciation and amortization
29,620
26,292
112,492
102,326
Operating (Loss) Income
$
(8,399
)
$
(18,172
)
$
207,118
$
207,528
Net (Loss) Income
$
(19,000
)
$
(24,838
)
$
133,400
$
131,414
Net Financial (Loss) Earnings
$
(19,000
)
$
(24,838
)
$
133,400
$
131,414
Throughput (Bcf)
Residential
3.4
3.4
44.5
43.4
Commercial, Industrial & Other
0.8
0.4
8.5
8.4
Firm Transportation
1.4
1.1
11.7
12.1
Total Firm Throughput
5.6
4.9
64.7
63.9
Interruptible
9.5
12.5
25.8
29.5
Total System Throughput
15.1
17.4
90.5
93.4
Off System/Capacity Management
8.4
20.6
85.0
72.6
Total Throughput
23.5
38.0
175.5
166.0
Customers
Residential
528,502
520,682
528,502
520,682
Commercial, Industrial & Other
31,927
31,725
31,927
31,725
Firm Transportation
22,442
23,490
22,442
23,490
Total Firm Customers
582,871
575,897
582,871
575,897
Interruptible
31
83
31
83
Total System Customers
582,902
575,980
582,902
575,980
Off System/Capacity Management*
14
20
14
20
Total Customers
582,916
576,000
582,916
576,000
*The number of customers represents those
active during the last month of the period.
Degree Days
Actual
8
28
3,960
3,897
Normal
25
24
4,463
4,498
Percent of Normal
32.0
%
116.7
%
88.7
%
86.6
%
Three Months Ended
Twelve Months Ended
(Unaudited)
September 30,
September 30,
(Thousands, except customer, RECs and
megawatt)
2024
2023
2024
2023
CLEAN ENERGY VENTURES
Operating Revenues
SREC sales
$
56,307
$
69,455
$
82,539
$
79,762
TREC sales
4,296
4,629
13,396
12,636
SREC II sales (1)
621
398
1,715
951
Solar electricity sales
7,012
6,210
20,934
18,831
Sunlight Advantage
3,059
3,063
11,979
11,951
Total Operating Revenues
$
71,295
$
83,755
$
130,563
$
124,131
Depreciation and Amortization
$
7,035
$
6,607
$
27,869
$
25,320
Operating Income
$
51,637
$
67,389
$
58,652
$
58,722
Income Tax (Benefit) Provision
$
11,877
$
15,396
$
11,406
$
(7,683
)
Net Income
$
35,470
$
50,152
$
33,662
$
44,458
Net Financial Earnings
$
35,470
$
50,152
$
33,662
$
44,458
Solar Renewable Energy Certificates
Generated
134,901
129,286
402,056
422,039
Solar Renewable Energy Certificates
Sold
294,943
345,035
419,266
393,906
Transition Renewable Energy
Certificates Generated
30,114
28,507
93,913
80,520
Solar Renewable Energy Certificates II
Generated
6,828
4,457
19,087
10,260
Solar Megawatts Under
Construction
63.8
5.6
63.8
5.6
(1) Prior year SREC II revenue was
previously included in Solar electricity sales and other
ENERGY SERVICES
Operating Income
Operating revenues
$
178,420
$
102,932
$
485,391
$
691,616
Less:
Gas purchases
79,097
87,932
305,938
558,932
Operation and maintenance expense
2,035
6,207
24,969
19,351
Depreciation and amortization
47
51
205
221
Operating Income
$
97,241
$
8,742
$
154,279
$
113,112
Net Income
$
70,703
$
4,577
$
106,745
$
78,848
Financial Margin
$
96,302
$
4,255
$
185,710
$
119,132
Net Financial Earnings (Loss)
$
68,284
$
(3,537
)
$
111,515
$
68,517
Gas Sold and Managed (Bcf)
33.3
41.4
125.3
150.4
STORAGE AND TRANSPORTATION
Operating Revenues
$
24,830
$
22,933
$
96,209
$
92,859
Equity in Earnings of
Affiliates
$
956
$
863
$
2,816
$
3,126
Operation and Maintenance
Expense
$
12,341
$
10,697
$
43,083
$
34,648
Other Income, Net
$
2,907
$
2,021
$
10,207
$
6,850
Interest Expense
$
5,867
$
6,538
$
23,441
$
25,803
Income Tax Provision
$
1,555
$
370
$
4,551
$
3,444
Net Income
$
2,468
$
1,877
$
12,229
$
13,154
Net Financial Earnings
$
2,468
$
1,784
$
12,229
$
12,835
HOME SERVICES AND OTHER
Operating Revenues
$
16,540
$
14,969
$
62,635
$
57,638
Operating Income
$
684
$
595
$
2,642
$
2,495
Net (Loss) Income
$
(639
)
$
3,451
$
26
$
4,758
Net Financial (Loss) Earnings
$
(639
)
$
3,451
$
26
$
4,758
Total Service Contract Customers at
September 30
99,753
101,499
99,753
101,499
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241124831683/en/
Media: Mike Kinney 732-938-1031
mkinney@njresources.com
Investors: Adam Prior 732-938-1145
aprior@njresources.com
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