New Jersey Resources' Q1 2025: Navigating Contradictions in CapEx, Sales Impact, and Power Pricing

These are the key contradictions discussed in New Jersey Resources Corporation's latest 2025Q1 earnings call, specifically including: CEV CapEx Target and Regulatory Uncertainties, Sunlight Advantage Sale Impact, CapEx Guidance and Expectations, and Power Pricing Trends:



First Quarter Performance and Earnings:
- New Jersey Resources Corporation (NJR) reported NFEPS of $1.29 per share in Q1 2025, compared to $0.74 per share in the prior year, indicating a significant improvement.
- Growth was driven by the implementation of new rates following the approval of the base rate case and the sale of the residential solar portfolio.

Capital Expenditures and Strategic Investments:
- NJR invested $127 million in New Jersey Natural Gas, with 43% providing near real-time returns.
- The company continues to invest in enhancing reliability and driving customer growth through new construction, conversions, and expansion into new locations.

Clean Energy Ventures and Solar Projects:
- Clean Energy Ventures successfully placed 11 megawatts of commercial solar projects into service during the period, with an additional 63 megawatts under construction.
- The growth is supported by a robust project pipeline of over 1 gigawatt and strategic expansion outside of New Jersey.

Financial Outlook and Guidance:
- NJR provided fiscal 2025 NFEPS guidance of $3.05 to $3.20 per share, which exceeds the long-term growth rate of 7% to 9%.
- The guidance incorporates a onetime gain from the sale of the residential solar portfolio and reflects the strength of the diversified portfolio.

Decarbonization and Sustainability Initiatives:
- NJR has made record investments in energy efficiency, becoming the first natural gas utility in New Jersey to install distributed carbon capture technology.
- The company is focusing on innovative, reliable clean energy solutions, highlighting its commitment to sustainability and emissions reduction.