New Jersey Resources (NJR) 6 Aug 24 2024 Q3 Earnings call transcript

New Jersey Resources (NJR) recently held a conference call to discuss the highlights of their fiscal 2024 third quarter performance. The call was led by Adam Prior, Head of Investor Relations, and featured presentations from Stephen D. Westhoven, President and CEO, Roberto Bel, Senior Vice President and Chief Financial Officer, and other members of the senior management team. The call provided valuable insights into the company's financial health and strategic direction.

Strong Performance and Future Outlook

NJR reported a solid quarter, with all business segments performing in line with expectations. The company is on track to achieve its fiscal 2024 NFEPS guidance of $2.85 to $3 per share. Steve Westhoven, CEO, highlighted the success of New Jersey Natural Gas (NJNG) and the robust project pipeline at Clean Energy Ventures (CEV), which is expected to deliver high single-digit unlevered returns for each project. The company also saw solid contributions from S&T and Energy Services, with Energy Services outperforming expectations.

Key Investments and Infrastructure Expansion

NJR has invested $345 million at NJNG year-to-date, with 43% of that capital expenditure providing near real-time returns. The company's focus on sustainability and customer growth is evident in the SAVEGREEN program, which has helped 100,000 customers lower their energy usage and reduce carbon emissions. NJR is also investing in renewable energy through Clean Energy Ventures, with plans to add new solar capacity and expand its solar pipeline. The company's capital plan for the next two years includes investments between $1.2 billion and $1.5 billion across the company, with a focus on infrastructure expansion and reliability.

Economic Trends and Investor Relations

The earnings call also touched on the current economic environment, with a focus on power prices and their potential impact on earnings. The company is seeing increased demand for reliability and constant electricity, which aligns well with its diverse portfolio of businesses. NJR also addressed investor concerns, emphasizing its long-term growth strategy and attractive total return of 11% to 13%, based on its NFEPS growth rate of 7% to 9% and a current dividend yield of approximately 4%.

Looking Ahead

In conclusion, New Jersey Resources presented a positive outlook for the future, with a focus on strategic investments, infrastructure expansion, and customer growth. The company's performance in the third quarter and its plans for the future demonstrate its commitment to delivering value for shareholders and navigating the evolving energy market. As NJR continues to execute on its strategic initiatives, investors and stakeholders will be keenly watching for updates on its rate case resolution, renewable energy projects, and broader market trends.