Newjersey Resources Corporation · NYSE:NJR
Newjersey Resources — Q2 2014 Earnings Presentation
21 slides from Newjersey Resources's earnings presentation, May 7, 2014
Slide 1: Fiscal 2014 Second Quarter Update
Fiscal 2014 Second Quarter Update May 7, 2014 Exhibit 99.2
Slide 2: Slide 2
Slide 3: NJR Affirms Fiscal 2014 NFE Per Share Guidance
4 NJR Affirms Fiscal 2014 NFE Per Share Guidance $3.90 to $4.10 NJR expects NJRES to contribute 35-40 percent of Fiscal 2014 Earnings New Jersey Natural Gas NJR Clean Energy Ventures NJR Energy Services NJR Midstream NJR Home Services
Slide 4: Improved Earnings Growth And Financial Profile
5 Improved Earnings Growth And Financial Profile Earnings retention further strengthens our balance sheet and reduces the need for new equity issuances Supports our future capital expenditures Significant capital investment in regulated business to support customer growth and maintain safe, reliable
Slide 5: Increased Long-Term NFEPS Guidance
6 Increased Long-Term NFEPS Guidance NJR expects an average long-term growth rate of to percent annually
Slide 6: Dividend Outlook Strengthened
7 Goal is to grow dividend 6 to 8 percent annually Dividend Outlook Strengthened * Current annual rate ** Assumes 6-8 percent average annual dividend growth *** Based on NJR net financial earnings
Slide 7: New Jersey Natural Gas – Our Core Business
8 New Jersey Natural Gas – Our Core Business Customer growth rate of 1.5 percent exceeds industry average Profitable balance in the new construction market Natural gas installed at 95 percent of new construction projects Healthy mix of new construction and conversions History of constructive regulat
Slide 8: Strong Customer Growth Continues
9 3,658 new customers added in the first half of fiscal 2014 1,769 new construction customers 1,889 conversions from other fuels 348 existing customer heat conversions Strong Customer Growth Continues Over next two fiscal years, NJNG expects to add a total of 14,000-16,000 new customers
Slide 9: Key Trends Support Future Customer Growth
10 Key Trends Support Future Customer Growth Sources for new construction: Arthur D. Little, Harte Hanks and NJNG Source for Population change: US Census Bureau Source for Fuel Pricing: US Energy Information Administration. * Data as of March 2014. Based on 100,000 comparable BTUs Demographics Fuel
Slide 10: NJNG Capital Investment Estimates
11 NJNG Capital Investment Estimates Capital of Over $1 Billion Drives Long-Term Growth NJNG Expects Base Rate Case Resolution by Fiscal 2017 ($mm) 2009- 2012 Actual 2013A 2014E 2015E 2016E 2017E Total Customer Growth $79.4 $24.5 $24.7 $25.6 $25.5 $25.5 $205.2 Maintenance/Other 177.4 42.5 64.2 55.7
Slide 11: NJRES: Strong Performance in Changing Markets
12 NJRES: Strong Performance in Changing Markets Provides physical natural gas services for Utility, Power Generator, Pipeline, and Industrial customers across North America including the Marcellus Shale NJRES’ Asset Portfolio includes : Storage capacity – Approximately 40 Bcf in the United States a
Slide 12: NJR Clean Energy Ventures - Distributed Power Portfolio Strategy
13 NJR Clean Energy Ventures - Distributed Power Portfolio Strategy Long-term goal to maintain NJRCEV at 10 to 20 percent of NFE Solar Demand driven by growing RPS in NJ Improving SREC Fundamentals Reduce reliance on solar ITC by January 2017 Wind 29 states and the District of Columbia have Renewabl
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Slide 14: Diversified and Growing Utility Gross Margin
15 Diversified and Growing Utility Gross Margin NJNG expects incremental utility gross margin to more than double by fiscal 2017
Slide 15: NJR Midstream
16 Contributed $2.3 and $3.7 million to three and six month NFE, respectively Steckman Ridge 12 Bcf Storage field, located in south central PA 50 percent joint venture with Spectra Energy Iroquois 5.53 percent ownership in pipeline from Canada to the northeast NJR Midstream
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Slide 19: Improving SREC Fundamentals
20 Improving SREC Fundamentals NJ increased solar RPS effective June 2013 Solar construction activity has moderated SREC prices have responded NJRCEV forecasts SREC inventory to grow from approximately 65,000 in fiscal 2013 to 174,000 in fiscal 2017
Slide 20: NJR Home Services
21 NJR Home Services 2Q fiscal 2014 loss of $1.1 million compared with a loss of $847,000 last year, Six month of loss of $1.7 compared with a loss of $1.1 million last year Majority of earnings derived from service contracts Approximately 119,000 service contract customers Contract revenue keeps gr
Slide 21: NJR Will Continue to Meet Investor Expectations
22 Deliver consistent net financial earnings and dividend growth Invest significantly in NJNG’s infrastructure to enhance system reliability Diversify and grow NJNG’s gross margin Committed capital to clean energy portfolio Grow other energy-related, non- utility businesses NJR Will Continue to Meet