Newjersey Resources Corporation · NYSE:NJR
Newjersey Resources — Q1 2025 Earnings Presentation
33 slides from Newjersey Resources's earnings presentation, Feb 4, 2025
Slide 1: Investor Presentation: Fiscal 2025 First Quarter Financial Results
February 2025 Investor Presentation Fiscal 2025 First Quarter Financial Results
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures Forward-Looking Statements This presentation 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 Li
Slide 3: Contents and NJR At a Glance
Contents NJR At a Glance Fiscal 2025 First Quarter Conference Call Corporate Information 4 Fiscal 2025 First Quarter Highlights 5 Fiscal 2025 NFEPS Guidance of $3.05 to $3.20 Ticker NYSE: NJR 6 NFEPS Guidance by Segment 7 New Jersey Natural Gas (NJNG) 8 Clean Energy Ventures (CEV): Investment Opport
Slide 4: Fiscal 2025 First Quarter Highlights
Fiscal 2025 First Quarter Highlights Executing on our Strategic Plan to Drive Growth $1.32FY 2025 Q1 EPS $1.29 FY 2025 Q1 NFEPS1 New Jersey Clean Energy Storage and Energy Services Natural Gas Ventures Transportation $3.2B ~1GW Rate Case $19.7M New rate base of $3.2 billion 1GWs solar project pipeli
Slide 5: Fiscal 2025 NFEPS Guidance of $3.05 to $3.20
Fiscal 2025 NFEPS Guidance of $3.05 to $3.20 Guidance Range Above 7% - 9% Long-term Projected NFEPS Growth Due to One-time Gain from Sale of Residential Solar Portfolio Net Financial Earnings per Share Actuals Estimates % 7-9 Guidance Range $3.20 Outperformance Above Long-Term Growth Rate and Initia
Slide 6: NFEPS Guidance by Segment
NFEPS Guidance by Segment NJNG Remains the Largest Contributor to NFEPS Following the Conclusion of its Base Rate Case Fiscal 2025 NFEPS Guidance by Segment Q1 2025: Slight Tightening of Ranges Throughout the New Jersey Natural Gas Business Units 67% - 73% Regulated 70% - 80% Non-Regulated 24% - 33%
Slide 7: New Jersey Natural Gas (NJNG)
New Jersey Natural Gas (NJNG) Strong Trend of Customer Growth Through a Mix of New Construction and Conversions Across New Jersey NJNG Total Customers Fiscal 2025 Capital Expenditures1,2,3 (in thousands) (Actuals) 590 New Location: Hopatcong, NJ 580 System Integrity IIP (Sussex County) $10 $51 570 ~
Slide 8: Clean Energy Ventures (CEV)
Clean Energy Ventures (CEV) CEV Owns and Operates Solar Projects with Approximately 396MW of Commercial Solar Capacity MWs 1600 ~43% of pipeline located in NJ ~57% of pipeline located outside of NJ Total 1400 ~1.4GW 227 1200 Pipeline of ~1.0GW including projects under 1000 construction, 530 contract
Slide 9: Storage and Transportation (S&T)
Storage and Transportation (S&T) Leaf River (storage) and Adelphia Gateway (transportation) Leaf River Energy Center: Maximizing Existing Asset S&T Capacity Recover Project to Adelphia Section 4 Base Rate Case expand leaching plant facilities • Filed in Fiscal 2024 Fourth Quarter • Salt cavern leach
Slide 10: Financial Review
Financial Review 10 10
Slide 11: Review of Fiscal 2025 First Quarter Results
Review of Fiscal 2025 First Quarter Results1 ($ in Millions) Fiscal 1Q24 – Consolidated NFE ($ in millions) $ 72.4 NJNG $ 15.5 Utility Gross Margin1 $ 25.5 $2.0 $0.0 $1.4 $128.9 $37.6 Depreciation & Amortization (D&A) $ (5.2) Interest Expense, O&M, AFUDC, Income Tax $ (4.8) Clean Energy Ventures $ 3
Slide 12: NJR Capital Plan
NJR Capital Plan1,2 ($ in Millions) Capital plan supports long-term NFEPS growth targets of 7-9% Actuals Estimates $596 $644 $168 $610 - $790 $655 - $835 YTD $10 - $25 $20 - $35 $46 $175 - $275 $31 $160 - $265 $96 $110 ~$1.3B - $1.6B Planned CAPEX Over $470 - $535 the Next 2 Years $430 - $490 $503 $
Slide 13: Superior Credit Metrics, Balance Sheet and Cash Flows
Superior Credit Metrics, Balance Sheet and Cash Flows Well Positioned to Achieve Higher than Peer Growth with No Need for Block Equity NJNG NJR Superior Credit Metrics (Secured Rating) (Unsecured Rating) NAIC NAIC-1.E NAIC-2.A Moody's A1 (Stable) No Block Equity Needs Fitch A+ (Stable) Cash Flow fro
Slide 14: 2024 Sustainability Report
2024 Sustainability Report 16th Corporate Sustainability Report Dating Back to 2008 Highlights • Innovative, lower-carbon energy solutions, with New Jersey Natural Gas becoming the first natural gas utility in New Jersey to install and operate distributed carbon capture technology and fuel a portion
Slide 15: Industry Leading Long-Term Growth Rate of 7-9%
Industry Leading Long-Term Growth Rate of 7-9% Highly Visible 7-9% NFEPS Growth with Potential for Additional Upside, No Block Equity Needs, "Utility-like" Earnings Contribution Net Financial Earnings NJNG CEV S&T Energy per Share Guidance Range Services $3.05 - $3.20 $3.20 % $3.00 Potential Upside
Slide 16: Appendix: Financial Statements and Additional Information
Appendix: Financial Statements and Additional Information Appendix: Financial Statements and Additional Information – 16 17 Reconciliation of NFE and NFEPS to Net Income 18 Other Reconciliation of Non-GAAP Measures 19 Reconciliation of Adjusted Funds from Operations to Cash Flow from Operations 20 F
Slide 17: Reconciliation of NFE and NFEPS to Net Income
Reconciliation of NFE and NFEPS to Net Income ($ in 000s) (Unaudited) Three Months Ended December 31, 2024 2023 NEW JERSEY RESOURCES • NFE is a measure of earnings based on the elimination of timing differences to effectively A reconciliation of net income, the closest GAAP financial measure, to net
Slide 18: Other Reconciliation of Non-GAAP Measures
Other Reconciliation of Non-GAAP Measures ($ in 000s) (Unaudited) Three Months Ended December 31, 2024 2023 A reconciliation of gross margin, the closest GAAP financial measurement, to utility gross margin is as follows: Operating revenues $ 333,765 $ 293,430 NJNG Utility Gross Margin Less: • NJNG's
Slide 19: Reconciliation of Adjusted Funds from Operations to Cash Flow from Operations
Reconciliation of Adjusted Funds from Operations to Cash Flow from Operations Adjusted Funds from Operations, YTD FY2025 (Millions) Cash Flow from Operations ($9.0) • Adjusted funds from operations is cash Add back flows from operating activities, plus Components of working capital $187.9 components
Slide 20: Fiscal 2025 Q1 NFE and NFEPS by Business Unit
Fiscal 2025 Q1 NFE and NFEPS by Business Unit1 ($ in 000s) Net Financial Earnings (NFE) (Thousands) Three Months Ended December 31, 2024 2023 Change New Jersey Natural Gas $66,908 $51,444 $15,464 Clean Energy Ventures $48,130 $10,522 $37,608 Storage and Transportation $5,664 $3,640 $2,024 Energy Ser
Slide 21: Capital Plan Table
Capital Plan Table1,2 ($ in Millions) Actuals Estimates Near Real FY2024A FY2025A FY2025E FY2026E Time YTD Return? New Jersey Natural Gas New Customer $100 $26 $100 - $110 $100 - $110 Yes IIP $42 $10 $25 - $35 $— - $— Yes SAVEGREEN $71 $19 $65 - $75 $70 - $80 Yes IT $60 $9 $45 - $55 $5 - $15 System
Slide 22: Debt Repayment Schedule
Debt Repayment Schedule No Significant Maturity Towers in Any Particular Year NJR Unsecured Senior Notes FY Maturity Principal 3.54% 2026 $100,000 4.38% 2027 $110,000 Term Debt1 Maturity Schedule 3.96% 3.29% 2028 2029 $100,000 $150,000 as of December 31, 2024 / $ in Millions, unless otherwise noted
Slide 23: Projected Cash Flows
Projected Cash Flows1 ($ in Millions) Actuals Estimates FY YTD FY2025E FY2026E Operating cash flows are primarily 2024A FY2025A affected by variations in working capital, which can be impacted by Cash Flows (used in) from several factors, including: $427 ($9) $460 - $500 $510 - $550 Operations • sea
Slide 24: Business Overview
Business Overview Business Overview - 24 25 NJR: Business Portfolio 26 NJNG: High Quality Utility in Favorable Favorable Regulatory Environment 27 NJNG: Supportive Regulatory Construct 28 CEV: Overview 29 CEV: SREC Hedging Strategy Stabilizes Revenue 30 Storage and Transportation (S&T): Overview 31
Slide 25: NJR: Business Portfolio
NJR: Business Portfolio Natural Gas and Renewable Fuel Distribution; Solar Investments, Wholesale Energy Markets; Storage & Transportation Infrastructure; Retail Operations New Jersey Natural Gas Operates and maintains Natural Gas transportation and distribution (NJNG) infrastructure serving approxi
Slide 26: NJNG: High Quality Utility in Favorable Regulatory Environment
NJNG: High Quality Utility in Favorable Regulatory Environment Operates and Maintains Natural Gas Transportation and Distribution Infrastructure Serving Approximately 586,000 Customers in Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington counties $ 586,000 6 3.2B Total Customers Counties Acr
Slide 27: NJNG: Supportive Regulatory Construct
NJNG: Supportive Regulatory Construct Stable Rate Case Results Decoupled Rates for majority of customers • Rate case results are stable • Volume risk due to weather or energy conservation • Current ROE of 9.60% with a common equity ratio of 54% mitigated through the Conservation Incentive Program (C
Slide 28: CEV: Overview
CEV: Overview Largest Solar Owner-Operator in New Jersey • ~$1 billion invested in the solar marketplace to date • A total of ~72 commercial projects in service CEV owns and operates commercial solar projects in New Jersey, Rhode Island, New York, Connecticut, Indiana, and Michigan with approximatel
Slide 29: CEV: SREC Hedging Strategy Stabilizes Revenue
CEV: SREC Hedging Strategy Stabilizes Revenue Based on Energy Year1, as of December 31, 2024 Represents CEV Commercial Solar Business Hedged Unhedged Percent Hedged Average Price Current Price (EY) EY 2025 309 51 86% $190 $206 EY 2026 295 16 86% Hedged Thousands 95% $179 $195 EY 2027 199 108 Through
Slide 30: Storage and Transportation (S&T): Overview
Storage and Transportation (S&T): Overview Leaf River (storage), Steckman Ridge (storage), and Adelphia Gateway (transportation) Maximizing capabilities at existing assets as pipeline and storage constraints continue to highlight the ▪ 0.9 mmdth/d interstate benefit of storage and transportation ass
Slide 31: Energy Services (ES): Overview
Energy Services (ES): Overview Managing a Diversified Portfolio of Physical Natural Gas Transportation and Storage Assets to Serve Customers Across North America; Fee-based Revenue through Asset Management Agreements Asset Management Agreements Long Option Strategy • De-risking transaction for Energ
Slide 32: Dividend Growth: Committed to Building Shareholder Value
Dividend Growth: Committed to Building Shareholder Value Strong Track Record of Dividend Growth Dividends per Share Dividend History Highlighted Rows Reflect Changes in Quarterly Cash Dividends Record Date Payable Date Amount Per Share $1.80 12/11/2024 9/23/2024 1/02/2025 10/01/2024 $0.45 $0.45* FY
Slide 33: Shareholder and Online Information
Shareholder and Online Information Stock Transfer Agent and Registrar Corporate Headquarters The Transfer Agent and Registrar for the company’s common stock is 1415 Wyckoff Road Broadridge Corporate Issuer Solutions, Inc. (Broadridge). Wall, NJ 07719 (732) 938-1000 Shareowners with questions about a