Newjersey Resources Corporation · NYSE:NJR
Newjersey Resources — Shareholder Meeting (January 2015)
26 slides from Newjersey Resources's shareholder meeting presentation, Jan 21, 2015
Slide 1: 2015 Annual Shareholders Meeting
Welcome :" 2015 NEW JERSEY RESOURCES ANNUAL SHAREHOLDERS MEETING January 21, 2015 New Jersey WW Resources
Slide 2: 2-for-1 Stock Split
2 - for - 1 Stock Split » Record date: February 6, 2015 » Entitles all shareowners to receive one share for every share owned » Action taken in response to excellent earnings and stock price performance » Shares to begin trading at post - split price March 4, 2015 1
Slide 3: Annual Shareowners Meeting January 21, 2015
ANNUAL SHAREOWNERS MEETING January 21, 2015
Slide 4: Regarding Forward-Looking Statements
Regarding Forward - Looking Statements 3 Certain statements contained in this presentation are forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 . New Jersey Resources (NJR or the Company) cautions readers that the assumptions forming the basis f
Slide 5: Disclaimer Regarding Non-GAAP Financial Measures
Disclaimer Regarding Non - GAAP Financial Measures 4 This presentation includes the non - GAAP measures net financial earnings (NFE), utility gross margin and financial margin . As indicators of the Company’s operating performance, these measures should not be considered alternatives to, or more mea
Slide 6: Fiscal 2014 Highlights: Our Strongest Year Ever
Fiscal 2014 Highlights: Our Strongest Year Ever » Achieved Net Financial Earnings ( NFE ) per share of $4.20 vs. $2.73 last year – a 54 percent increase » Increased the annual dividend rate by 7.1 percent to $ 1.80 per share x 21 increases in the last 19 years » Increased our long - term average ann
Slide 7: Safety and Reliability: Our Top Priority
Safety and Reliability: Our Top Priority » Invested more than $65 million in our system in fiscal 2014 x More than $337 million since 2010 » Plan to spend nearly $80 million in fiscal 2015 » Lowest number of leaks per mile of any local d istribution c ompany in New Jersey » Safety performance acknow
Slide 8: System Safety and Reliability
System Safety and Reliability 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Leaks per Mile Pending Leaks Pending Leaks Leaks per Mile 7 Infrastructure investment improves system performance
Slide 9: Consistent Financial Performance
Consistent Financial Performance 8 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 $1.73 $1.84 $1.88 $2.11 $2.24 $2.40 $2.46 $2.58 $2.71 $2.73 $4.20 Net Financial Earnings Per Share
Slide 10: Fiscal 2015 NFE Per Share Guidance
Fiscal 2015 NFE Per Share Guidance - $ 2.90 to $3.10 9 New Jersey Natural Gas 60 - 70% NJR Midstream 5 - 10% NJR Clean Energy Ventures 10 - 20% NJR Home Services 2 - 5% NJR Energy Services 5 - 15% Regulated businesses expected to contribute 65 - 80 percent of total NFE
Slide 11: Dividend Growth and Payout Ratio
Dividend Growth and Payout Ratio 10 Dividend growth objective of 6 to 8 percent annually * Current annual rate ** Based on the midpoint of NFE guidance 30% 35% 40% 45% 50% 55% 60% 65% 70% 2010 2011 2012 2013 2014 2015E** 55 % 56 % 57 % 59 % 41% 60% $1.00 $1.25 $1.50 $1.75 $2.00 2010 2011 2012 2013 2
Slide 12: New Jersey Natural Gas: The Foundation of Our Business
New Jersey Natural Gas: The Foundation of Our Business » Growing customer base – primarily residential and commercial » Commitment to environmental stewardship » Collaborative regulatory relations » High customer satisfaction 11 Our primary focus is on safe, reliable service
Slide 13: Strong Customer Growth Continues
Strong Customer Growth Continues 12 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 FY09 FY10 FY11 FY12 FY13 FY14 7,599 5,841 6,189 6,783 6,704 7,456 New Construction Conversions » 7,599 new customers added in fiscal 2014 x 3,695 new construction customers x 3,904 conversions from other fuels » 62
Slide 14: Key Trends Support Future Customer Growth
Key Trends Support Future Customer Growth 13 0.0% 5.0% 10.0% 15.0% N.J. Morris Monmouth Ocean 1.2% 6.2% 2.3% 14.1% Population Change 2000 - 2013 1 2014 - 2016 10,200 Beyond 2017 - 78,206 New Construction 3 3 . Source: A.D. Little $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 NJNG Fuel Oil Propane Electricity
Slide 15: The SAVEGREEN Project
The SAVEGREEN Project ® 14 » Investment in high - efficiency equipment » Encourages energy savings » Plan to invest approximately $138 million in grants and financial incentives over current life of the program » Since inception: x Assisted nearly 32,000 customers in reducing energy usage and loweri
Slide 16: BGSS Incentives Benefit Customers and Shareowners
BGSS Incentives Benefit Customers and Shareowners 15 $77.2 $16.0 2014 BGSS Incentive Margins Customers Shareowners $ millions Customers have saved over $712 million » Total earnings of $2.02 per share since 1992; an average of $.09 annually
Slide 17: Meeting Customer Needs
Meeting Customer Needs 16 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 ACE SJG PSEG ETG NJNG 3.7 3.5 1.7 1.5 0.6 BPU Inquiries per 1,000 Customers NJNG had the highest customer satisfaction rate of any major utility in New Jersey for the 22 nd consecutive year » 6.1 million meter reads » 1.1 million
Slide 18: NJNG: Most Trusted Brand in the East
NJNG : Most Trusted Brand in the East* » Engaged Customer Relationship score of 740 ( O n a 1,000 point scale) x Highest overall score in the East Region that included 33 natural gas, electric and combination gas/electric companies x Ranked highest in the East on “Operational Satisfaction,” “Product
Slide 19: NJRES: Profitable Every Year Since 1995
NJRES: Profitable Every Year Since 1995* » Contributed $79.7 million to NFE in fiscal 2014 » Diverse portfolio of physical natural gas assets x Firm storage (About 40 Bcf in the US and Canada) x Firm transportation (About 1.5 Bcf/day) » Services include: x Transporting natural gas x Selling storage
Slide 20: Regulated Growth from NJR Midstream
Regulated Growth from NJR Midstream 19 » Current investments provide 5 to 10 percent of NFE » Strategic Marcellus location supports value Iroquois Pipeline 5.53 percent interest in pipeline to serve the Northeast market Steckman Ridge 50/50 joint venture with Spectra Energy 12 Bcf natural gas storag
Slide 21: PennEast Pipeline
PennEast Pipeline 20 » 108 - mile, 36 - inch pipeline » Connecting Marcellus supply to Northeast markets » Contracted volume up to 1,000,000 dth /day » Pre - filed with FERC October 2014 » Commercial operation expected in late 2017
Slide 22: NJRCEV: Renewable Portfolio Diversification
NJRCEV : Renewable Portfolio Diversification Commercial Solar » 17 project sites » 55.9 megawatts (MW) » Projects include roof - top and ground - mounted installations, both grid connected and net metered Residential Solar - The Sunlight Advantage ® » 3,135 customers added since inception » 27.3 MW
Slide 23: NJR Home Services: Meeting Customers Needs
NJR Home Services: M eeting Customers Needs » Contributed $2.5 million to NFE in fiscal 2014 x Majority of earnings derived from service contracts • Approximately 118,000 service contract customers » Expanded services x E lectric and plumbing contracts x Standby generator contracts x Air conditionin
Slide 24: Making a Difference in Our Communities
Making a Difference in Our Communities 23 ▪ Employees and retirees work to make a difference in our communities and have contributed thousands of hours of service since its inception in 1995 ▪ Supports learning opportunities for all ages and helps students succeed in school and beyond ▪ Partnership
Slide 25: Long-Term Value Creation for Shareowners
Long - Term Value Creation for Shareowners 24 $0 $30,000 $60,000 $90,000 $120,000 $150,000 S&P 500 Peer Group NJR $59,430 $71,397 $131,725 Value of $10,000 Investment March 31, 1995 to December 31, 2014 (Assumes Dividends Reinvested)
Slide 26: Annual Shareowners Meeting January 21, 2015
ANNUAL SHAREOWNERS MEETING January 21, 2015
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