Newjersey Resources Corporation · NYSE:NJR
Newjersey Resources — Q3 2014 Earnings Presentation
21 slides from Newjersey Resources's earnings presentation, Aug 6, 2014
Slide 1: Exhibit 99.1 - August 6, 2014, Laurence M. Downes
Exhibit 99.1 Exhibit 6, Laurence Chairman August 99.1 M. 2014 & Chief Downes Executive Officer
Slide 2: Regarding Forward-Looking Statements
Regarding Certain “projects,” management’s that presentation segments incremental control The the our downturns derivatives governmental partnerships; potential tax effect resulting third-party including legislation; uncertainties; impacts and 1Quarterly events. Company’s credits access Exchange unc
Slide 3: Disclaimer - Non-GAAP Financial Measures
Disclaimer This considered Net current instruments utility Management other. these 2GAAPfinancial presentation non-GAAP gross financial period. alternatives Regarding related and margin earnings uses Inphysical measures, measures includes order NFE, to represents natural Non-GAAP (losses) to, to fin
Slide 4: NJR at a Glance
NJRofat Ticker 52-Week Market Shares Annual Dividend Total 3As Assets: July Symbol Outstanding aCapitalization: Dividend Glance Price Yield: 31,$3.1 2014 Range: (NYSE): 3.0 Rate: billion (Diluted): percent $57.79-$41.44 $2.2 $1.68 NJRbillion 42.1 million
Slide 5: NJR: Our Business Overview
NJR: Our Business Above-average Robust Constructive Physical Clean Steady 4StrongEnergy financial contributions infrastructure natural portfolio Business regulatory focuses customer profile gassupports Overview services from investments onprovides relationships New growth Midstream long-term benefit
Slide 6: Financial Review: Net Financial Earnings
Net basic ($MM) June Company New NJR Total Per Steady 5into Financial service Energy Clean Midstream Home 30, Jersey $196.3 growth Nine June share 2014 Energy Services/Other Natural Services $113.9 Months Earnings 30, and $4.67 2013 5.6Ventures higher 5.6 Gas $4.5 2014 Ended $2.73 90.2 (NFE) 1.9 $79
Slide 7: NJR Affirms Fiscal 2014 Guidance
FiscalAffirms 40-50% 5-15% 2-5% New 6NJR expects Jersey 3-10% 2014 35-45% Natural NJRES Fiscal 2014 Gas to contribute NJR NFEEnergy Per 35-45 Share Services percent Guidance NJR of $4.00 Fiscal Cleanto2014 Energy $4.20 Earnings Ventures NJR Midstream NJR Home Services
Slide 8: NJR Expects Fiscal 2015-2017 Earnings Growth
Fiscalexpects Most 40-50% 60-70% 5-10% 5-15% New 2-5% NJR 765-80Jersey Recent 3-10% percent 2015-2017 35-45% Natural regulated Fiscal of 10-20% total Earnings 2015 GasNFE businesses NJR Fiscal Guidance Clean 2014 to Energy contribute through Ventures Guidance NJR Fiscal Energy 2017 Services NJR Mids
Slide 9: NJR's Long-Term Earnings and Dividend Growth Goal
*8** Assumes Earnings $4.50 $4.00 $1.80 $3.50 $3.00 $2.40 $2.50 $2.00 $1.50 $1.00 2009 NJR’s 2010 $4.00-$4.20 $3.28-$3.71 $1.68 $2.71 $2.46 $1.36 $1.40 $1.20 $1.00 long-term Current and Growth 2011 $2.73 $2.58 Dividend 6-8 2012 annual growth Dividend $1.62 $1.60 $2.20 $2.00 2013 percentGrowth rate r
Slide 10: New Jersey Natural Gas: Core Business
Customer New History 21 Infrastructure Rate 9*According consecutive case Jersey construction ofto growth collaborative Natural to beinvestments ayears filed Cogent rate market Gas by with ofmid-November regulatory Report –1.5 continues fewest Our to percent strengthen Core study, customer relationsh
Slide 11: NJNG: New Customer Growth Continues
NJNG: 5,151 2,463 437 8,000 7,000 0F 1,000 2,000 3,000 4,000 5,000 6,000 5,841 New Over 10Y08 existing Construction next new 7,175 6,189 FY09 Strong two customers construction 6,783 FY10 customer fiscal Customer 6,704 Conversions FY11 years, added heat customers 7,456 FY12 Growth NJNG conversions th
Slide 12: Key Demographics and Fuel Conversion Trends
KeyMorris Demographics Population 12.8% 15.0% $5.02 10.0% $4.40 4.5% 5.0% $3.00 $1.03 0.0% $0.75 NJ Future Non 2014 17,350 47,840 66,993 Buildout 2019 Sources 28,974 Source 11 Trends Heat 2018 4.7% 2.5% $0.00 $5.25 $1.50 Equivalent $6.00 $4.50 New Off 36,322 Near for forMonmouth Population 6,900 Cha
Slide 13: The SAVEGREEN Project Investment
The SAVEGREEN 12 Investment Invested NJNG Constructive earns $24.7 inaregulatory high-efficiency return million Project® onon environment equity grants, equipment ranging incentives and from In support place and 9.75on-bill of through percent public repayment to June policy 10.3 2015 percent objecti
Slide 14: NJNG Capital Expenditures Drive Growth
$1.4RISE NJNG 2013 2009- ($MM) Customer Maintenance/Other AIP/SAFE Superstorm NGV NJ Liquefaction Southern SAVEGREEN Total Over 13 Billion 50 Immediate $593.4 Fueling Capital Actual percent -- Reliability Growth 182.0 7.5 Sandy of $204.8 Project Stations Investment 2014E 60.5 Capital 13.5 of38.0 $10
Slide 15: Diversified Utility Gross Margin Growth
Diversified $40.0 $38.0 $35.0 $30.0 millions $$25.0 $15.0 FY13A $0.0 $5.0 Customer NJNG by 14 10.0 fiscal $34.4 $30.1 $26.1 expects FY14E $20.0 2017 Growth and$15.6 incremental FY15E Growing SAVEGREEN FY16E Utility utility FY17E Gross NGV grossMargin BGSS marginIncentives to more than double
Slide 16: NJR Energy Services
NJR Serves Firm transportation $200 $140 Services $MM Transporting Selling $40 Asset $0 14 Producer Fee-based 15 Margin Energy storage $120 management $80 wholesale storage include: Services service; NFE Services (46.6 natural (1.4 gas$100 customers $180 located Bcf during agreements gasinFirm $60 t
Slide 17: NJR Clean Energy Ventures: Solar
NJR Clean 16 Unique Energy Legislation Growing Improving Goal Solar to Investment policy opportunity diversify Renewable Solar Energy supports drives Renewable our Tax Ventures created solar Portfolio renewable distributed Credits investment inEnergy (ITCs) New Standard investment power Jersey Certi
Slide 18: NJRCEV: Wind
NJRCEV:Wind 17 Wind 29 provide Investment farm begin Long-term states 9.7 Value Spring annuity-like MW, and goal Status Drivers 2015 the project Strategy toDistrict –maintain Two returns $22Dot ofmillion Columbia NJRCEV Investment located at have 10 Status utility to RPS 20–in and percent Carroll Tw
Slide 19: NJR Midstream
18 Bcf Steckman 12 Iroquois 5.53 NJR percent Midstream expects Storage Gas Ridge ownership Midstream Transmission field, located in expected pipeline System in south tofrom contribute central Canada PA5-10 50 to the percent percent northeast joint of NFE venture with Spectra Energy
Slide 20: NJR Home Services
Majority Approximately Contract Whole-house Brand NJR 19 Home expects recognition revenue of Services earnings Home electric 119,000 growth provides Services derived andcustomers driven plumbing confidence to from contribute byservice Premier contracts 2-5 contracts Heating Standby percentand of gen
Slide 21: Invest, Diversify, Benefit
Invest Diversify Benefit Commit Deliver 10-Year 12.0% 11.2% 14.0% 80%. 10.0% NJR 0.0% 2.0% 4.0% *6.0% 20 Group Assumes Is7.6% Peer significantly 10.8% Focused from consistent Total capital and DJIA dividends 7.8% natural Return* grow S&P to Ondistributed net in NJNG’s Long-Term gas 500 reinvested, f