Newjersey Resources Corporation · NYSE:NJR
Newjersey Resources — Q1 2014 Earnings Presentation
20 slides from Newjersey Resources's earnings presentation, Feb 6, 2014
Slide 1: Fiscal 2014 First Quarter Update
Exhibit 99.2 Fiscal 2014 First Quarter Update February 6, 2014
Slide 2: Regarding Forward-Looking Statements
1 Regarding Forward-Looking Statements Certain statements contained in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipates,” “estimates,” “expects,” “projects,” “may,” "will," “intends,” “expects,” "b
Slide 3: Disclaimer Regarding Non-GAAP Financial Measures
2 Disclaimer Regarding Non-GAAP Financial Measures This presentation includes the non-GAAP measures NFE (losses), 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
Slide 4: First Quarter NFE
3 First Quarter NFE ($MM) Company Q1 2014 Q1 2013 Change New Jersey Natural Gas $27.6 $25.5 $2.1 NJR Energy Services 7.4 3.0 4.4 NJR Clean Energy 3.6 5.3 (1.7) NJR Midstream 1.4 1.8 (0.4) NJR Home Services/Other (.1) (.1) - Total $39.9 $35.5 $4.4 Per basic share $.95 $.85 $.10
Slide 5: First Quarter Performance Drivers: New Jersey Natural Gas, NJR Energy Services
4 First Quarter Performance Drivers New Jersey Natural Gas NFE of $27.6 million compared with $25.5 million in Q1 last year Strong utility gross margin growth at NJNG ($ thousands) AIP $2,126 Sandy/Other 1,370 Customer Growth 723 SAVEGREEN 446 BGSS Incentives 341 Total Utility Gross Margin Growth $5
Slide 6: First Quarter Performance Drivers: NJR Clean Energy Ventures, NJR Midstream
5 First Quarter Performance Drivers NJR Clean Energy Ventures NFE of $3.6 million vs. $5.3 million in Q1 last year Timing of Solar Renewable Energy Certificates (SREC) sales NJR Midstream NFE of $1.4 million vs. $1.8 million in Q1 last year Lower transportation values at Iroquois and maintenance exp
Slide 7: Affirm Fiscal 2014 NFE Per Share Guidance - $2.75 to $2.95
6 Affirm Fiscal 2014 NFE Per Share Guidance - $2.75 to $2.95 New Jersey Natural Gas NJR Energy 60-70% Services 5-15% NJR Home Services 2-5% NJR Clean Energy Ventures 10-20% NJR Midstream 5-10% Regulated businesses expected to contribute 65-80 percent of total NFE
Slide 8: Growing and Sustainable Dividend
7 Growing and Sustainable Dividend $2.00 Dividend Growth 65% Payout Ratio** 63% 57% 59% $1.75 $1.68 55% 56% $1.62 $1.54 50% 52% $1.50 $1.44 48% $1.36 49% $1.24 $1.25 $1.12 $1.01 $1.00 33% $0.75 $0.50 16% $0.25 $0.00 0% 2007 2008 2009 2010 2011 2012 2013 2014* 2007 2008 2009 2010 2011 2012 2013 Peer
Slide 9: Strong Customer Growth Continues
8 Strong Customer Growth Continues 2,129 new customers in the first quarter of fiscal 2014, up 8.7 percent over Q1 last year 980 new construction customers; up 16 percent over Q1 last year 1,149 conversions from other fuels; up 3 percent over Q1 last year 137 existing customer heat conversions; more
Slide 10: The SAVEGREEN Project
9 The SAVEGREEN Project ® In place through June 2015 Investment of up to $85 million New programs added First Quarter Results: Over 1,300 home energy audits 634 on-bill repayments, totaling over $6 million Over 2,050 grants paid, totaling over $3.8 million More than $215 million in economic activity
Slide 11: Diversified and Growing Utility Gross Margin
10 Diversified and Growing Utility Gross Margin Incremental utility gross margin expected to more than double by fiscal 2017
Slide 12: Capital of Over $1 Billion Drives Long-Term Growth
11 Capital of Over $1 Billion Drives Long-Term Growth NJNG Capital Investment Estimates 2009- ($mm) 2012 2013A 2014E 2015E 2016E 2017E Total Actual Customer Growth $79.4 $24.5 $24.7 $25.6 $25.5 $25.5 $205.2 Maintenance/Other 177.4 42.5 63.3 55.9 48.1 40.6 427.8 AIP/SAFE 136.7 45.3 31.6 33.7 39.1 - 2
Slide 13: Distributed Power Portfolio Strategy
12 Distributed Power Portfolio Strategy Solar Supports New Jersey’s Energy Master Plan Improving SREC Fundamentals Eliminate reliance on solar ITC by January 2017 Wind 29 states and the District of Columbia have Renewable Portfolio Standard (RPS) Production-based tax credits (PTC) Long-term Power Pu
Slide 14: Improving SREC Fundamentals
13 Improving SREC Fundamentals Capacity Additions by Month (MW) SREC Prices by Month ($/SREC) 85.0 Karbone Bid Prices 7.9 NJ increased solar RPS effective June 2013 Solar construction activity has moderated SREC prices have responded SREC production forecasted to grow from approximately 65,000 in fi
Slide 15: Two Dot Wind Farm
14 Two Dot Wind Farm Announced on October 23, 2013 9.7 MW utility scale wind farm project located in Montana, east of Helena Approximately $22 million investment; PTC eligible 25-year PPA in place to sell power to NorthWestern Energy to support their RPS requirement Strong partners – GE (Turbines),
Slide 16: Carroll Area Wind Farm
15 Carroll Area Wind Farm Second wind project for CEV 20 MW wind farm project located 65 miles NW of Des Moines in Carroll County, Iowa Approximately $42 million investment; PTC eligible 25-year PPA with MidAmerican Energy Commercial operation expected in the spring of 2015 NJR expects nearly 30 MW
Slide 17: NJRES: Strong Performance in a Changing Market
16 NJRES: Strong Performance in a Changing Market NFE of $7.4 million vs. $3 million in Q1 last year Higher financial margin from colder weather Growth opportunities from physical natural gas sales and producer services Providing energy solutions for diverse customers in the Marcellus Shale and othe
Slide 18: 4 to 7 Percent Average Long-Term Annual NFE Growth Strategies
17 4 to 7 Percent Average Long-Term Annual NFE Growth Strategies Regulated Businesses Non-Regulated Businesses Significant increase in NJNG Diversify distributed power regulated infrastructure portfolio investments Expand onshore wind Diversified sources of NJNG utility gross margin investments Nove
Slide 19: NJR Affirms Long-Term Financial Goals
18 NJR Affirms Long-Term Financial Goals Achieve average long-term NFE growth of 4 to 7 percent Significant capital investment in regulated business to support customer growth and maintain safe, reliable and resilient service New customers and regulatory initiatives generate significant NJNG utility
Slide 20: Fiscal 2014 First Quarter Update
Fiscal 2014 First Quarter Update February 6, 2014