Newjersey Resources Corporation · NYSE:NJR
Newjersey Resources — Stamford Financial Community (September 2013)
24 slides from Newjersey Resources's conference presentation, Sep 26, 2013
Slide 1: Stamford Financial Community
Exhibit 99.1 Stamford Financial Community September 26, 2013
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. Forward-looking statements can also be identified by the use of forward-looking terminology such as “may
Slide 3: Disclaimer Regarding Non-GAAP Financial Measures
2 Disclaimer Regarding Non-GAAP Financial Measures This presentation includes the non-GAAP measures net financial earnings (losses), financial margin and utility gross margin. As an indicator of the Company’s operating performance, these measures should not be considered an alternative to, or more m
Slide 4: NJR at a Glance
3 NJR at a Glance Ticker Symbol (NYSE): NJR Price Range (52 Weeks) $38.51 - $47.60 Market Capitalization: $1.8 billion Annual Dividend Rate: $1.68 Dividend Yield: 3.8 percent Total Assets: $2.7 billion
Slide 5: NJR's Long-Term Financial Goals
4 NJR’s Long-Term Financial Goals 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 utility gross margin growth
Slide 6: NJR Has Provided 4-7 Percent Average Long-Term NFE Growth
5 NJR Has Provided 4 – 7 Percent Average Long-Term NFE Growth Net Financial Earnings Per Share $3.21 – $3.60 $3.49 $3.40 $3.20 $2.75 – $3.00 $2.95 $2.70 – $2.80 $2.71 $2.75 $2.58 $2.60 $2.40 $2.46 $2.40 $2.24 $2.20 $2.11 $2.00 $1.88 $1.80 $1.80 $1.73 $1.61 $1.60 $1.40 2003 2004 2005 2006 2007 2008 2
Slide 7: NJR Has Provided a Growing and Sustainable Dividend
6 NJR Has Provided a Growing and Sustainable Dividend $2.00 $1.92 Dividend Growth $1.75 $1.68 $1.62 $1.54 $1.50 $1.44 $1.36 $1.24 $1.25 $1.12 $1.01 $1.00 $0.96 $0.91 $0.87 $0.75 $0.50 $0.25 $0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014* 2017E** Payout ratio goal is 60 – 65 percent * C
Slide 8: Midpoint of Fiscal 2013 NFE Guidance Increased
7 Midpoint of Fiscal 2013 NFE Guidance Increased Fourth Quarter NFE Guidance $0.05 $.02 $2.70 to $2.75 per share $0.00 -$0.05 $(.03) Non-Utility - 33 percent -$0.10 2013E -$0.15 2012A NJNG - 67 percent -$0.20 -$0.25 $(.27) -$0.30 Seasonal nature of NJNG/NJRES operations typically result in fourth qu
Slide 9: 4 to 7 Percent Average Long-Term Annual NFE Growth Strategies
8 4 to 7 Percent Average Long-Term Annual NFE Growth Strategies New Jersey Natural Gas Non-Utility Significant increase in Improving market fundamentals for NJ regulated infrastructure solar assets investments Wind and CHP investments Diversified and growing to reduce solar over the sources of gross
Slide 10: Our Core Distribution Business
9 Our Core Distribution Business Growing customer base – primarily residential and commercial Population Change 2000-2010 15.0% 12.8% 10.0% 4.5% 4.7% 5.0% 2.5% 0.0% NJ Morris Monmouth Ocean Net plant, property and equipment of nearly $1.2 billion Collaborative regulatory relations High customer sati
Slide 11: Strong Customer Growth
Strong Customer Growth 5,301 new customers through June 2013 2,493 new construction customers, an increase of 19 percent over last year 2,808 conversions 497 existing customer heat conversions Increased customer growth, estimated at 13,000-15,000 new customers over the next fiscal two years Customer
Slide 12: Capital of Over $1 Billion Drives Long-Term Growth
11 Capital of Over $1 Billion Drives Long-Term Growth NJNG Capital Expenditure Estimates 2009- Regulatory 2012 2013F 2014P 2015P 2016P 2017P Total Treatment? Actual Customer Growth $79.4 $21.6 $24.7 $25.6 $25.5 $25.5 $202.3 N Maint./Other 177.4 43.0 57.5 49.0 48.1 40.6 415.6 N AIP/SAFE 136.7 48.5 38
Slide 13: New Infrastructure Capital Projects
12 New Infrastructure Capital Projects Southern Reliability Link (SRL) — $130 million Additional high-pressure pipeline to support growth in Ocean County Diversifies supplier base to increase system reliability Liquefaction Facility — $35.7 million Reduces LNG transportation costs Results in custome
Slide 14: Customer Growth - Utility Gross Margin
13 Customer Growth - Utility Gross Margin Annual 1.4 to 1.5 percent $24.0 $22.1 customer growth $17.4 Improving new $18.0 construction $12.8 Strong conversion $12.0 market $8.1 NJNG has decoupled $6.0 $3.6 rates (CIP) Eliminates impacts of $0.0 FY13F FY14E FY15E FY16E FY17E weather and usage 13
Slide 15: The SAVEGREEN Project - Utility Gross Margin
14 The SAVEGREEN Project ® - Utility Gross Margin BPU approved significant $12.0 $10.6 program expansion in $10.1 June 2013 $10.0 $8.2 Promotes customer $8.0 investment in high- $5.7 $6.0 efficiency heating equipment $4.0 $2.9 NJNG earns 9.75 to 10.3 $2.0 percent return on equity $0.0 FY13F FY14E FY
Slide 16: The NGV Advantage - Utility Gross Margin
15 The NGV Advantage - Utility Gross Margin Infrastructure Throughput Total potential $3.0 investment of up $2.3 $2.5 $2.6 to $10 million $0.7 $0.8 $0.6 $6 - $8 million $2.0 committed NJNG earns 10.3 percent return $1.0 $1.8 $1.8 $1.8 on equity $.01 $.2 $0.0 FY13F FY14E FY15E FY16E FY17E 15
Slide 17: BGSS Incentives - Utility Gross Margin
16 BGSS Incentives - Utility Gross Margin $8.0 Various programs benefit $7.3 both customers and $6.5 $6.0 shareowners $6.0 $6.0 $6.0 Adds about $.08 annually to NFE per share $4.0 Saved customers approximately $621 $2.0 million since inception in 1992 $0.0 FY13F FY14E FY15E FY16E FY17E Programs in p
Slide 18: Diversified and Growing Utility Gross Margin
17 Diversified and Growing Utility Gross Margin $45.0 $41.3 $40.0 $36.0 $35.0 $29.3 $30.0 $25.0 $20.3 $20.0 $14.1 $15.0 $10.0 $5.0 $0.0 FY13F FY14E FY15E FY16E FY17E Customer Growth SAVEGREEN NGV BGSS Incentives Incremental utility gross margin expected to triple over five years
Slide 19: 4 to 7 Percent Average Long-Term Annual NFE Growth Strategies
18 4 to 7 Percent Average Long-Term Annual NFE Growth Strategies New Jersey Natural Gas Non-Utility Significant increase in Improving market fundamentals for NJ regulated infrastructure solar assets investments Wind and CHP investments Diversified and growing to reduce solar over the sources of gros
Slide 20: NJR Clean Energy Ventures
19 NJR Clean Energy Ventures About 55 MW of installed capacity in residential and commercial projects Approximately 65,000 Solar Renewable Energy Certificate (SRECs) generated annually Goal is to commit $70 to $90 million in fiscal 2014; reduce by fiscal 2017 Solar industry in NJ supported by a stro
Slide 21: Investing in Onshore Wind
20 Investing in Onshore Wind Strategic Considerations 29 states and the District of Columbia have mandatory renewable portfolio standards Wind is typically the most economic solution for meeting RPS in most states NJR’s Onshore Wind Energy Strategy Strategic partnership with OwnEnergy, specializing
Slide 22: Steady Contributions from Other Non-Utility Businesses
21 Steady Contributions from Other Non-Utility Businesses NJR Energy Services Growth opportunities from physical natural gas marketing and producer services Portfolio restructured to reflect current market realities 10 to 15 percent of total NFE Midstream Investments Existing investments provide con
Slide 23: NJR Will Continue to Meet Customer and Investor Expectations
22 NJR Will Continue to Meet Customer and Investor Expectations Delivering consistent net financial earnings and dividend growth 10-Year Annualized Total Return* 12.0% Investing significantly in NJNG’s 10.2% infrastructure to enhance system reliability 9.0% 7.9% 7.7% Diversifying and growing NJNG’s
Slide 24: Stamford Financial Community
Stamford Financial Community September 26, 2013
New Jersey Resources — Stamford Financial Community (September 2013) on 6ix