Newjersey Resources Corporation · NYSE:NJR
Newjersey Resources — New York Financial Community presentation (October 2013)
29 slides from Newjersey Resources's conference presentation, Oct 23, 2013
Slide 1: New York Financial Community, October 23, 2013
Exhibit 99.1 Exhibit New October York99.1 23,Financial 2013 Community
Slide 2: Forward-Looking Statements
1affecting Regarding Certain “projects,” current in that long-term gross natural The effect ability markets, commercial financing investments permitting, SRECs the customers storing, possible future regulatory and Factors” 2013, Annual accordance Company’s level other form factors margin each on env
Slide 3: Disclaimer Regarding Non-GAAP Financial Measures
2discussion Disclaimer This considered gains NJRES. without planned sales Management pursuant presentation and or the transaction Volatility losses to other of an Regarding the impacts uses believes our alternative on taxes requirements non-GAAP includes derivative associated net because ofand finan
Slide 4: Growth Plan: Customer and Infrastructure Investments, Non-Regulated Investments
3Customer New Jerseyand Infrastructure Non-RegulatedResources: Growth Gross Investments Margin –Growth Specific –Growth Long-term Initiatives plans– to Diversified nearly plan todouble diversify and sustainable plant clean investment energy grossportfolio margin by fiscalgrowth to2017 reduce relianc
Slide 5: Long-Term NFE Growth Strategies: 65-80 Percent from Regulated Businesses
4 to 7 Percent Regulated Significant Diversified Targeted Non-Regulated Diversify Prudently Steady Expandedcontributions growth clean expand products Businesses increase sources Average Businesses energy from onshore and of infrom NJR NJNG NJNG Long-Term portfolio markets wind NJR Midstream gross re
Slide 6: Strong Customer Growth Drives Capital Investment ($mm)
5Over Strong ($mm) 2009- Actual Maintenance/Other Total 7,456 3,627 3,829 619 Customer existing next $256.8 new conversions NJNG 2012 Growth growth two customers construction customer 2013F $64.6 Customer fiscal estimated Capital $79.4 from $82.2 177.4 2014E years, inheat customers, other fiscal Gro
Slide 7: Near-Term Trends Support Customer Growth
6Near Key Support Demographics Population 15.0% 4.5% 10.0% 5.0% NJ 0.0% Fuel Supports Equivalent $3.90 $4.40 $3.20 $$1.13 NJNG 71,600 Buildout 2018- 15,900 2017 2013- Future Non Off On 49,800 Source: 29,192 Main 100,000 3.00 2.25 0.75 0.00 Morris Main Main Trends Heat Pricing 4.7% 2.5% $Fuel 12.8% N
Slide 8: Superstorm Sandy and Current Infrastructure Investments ($mm)
7Superstorm Current ($mm) 2009-2012 AIP/SAFE Total SAFE NGV $136.7 Advantage Advantage-Total (Safety Actual NJNG Infrastructure $136.7 Sandy Sandy-Range $79.0 Acceleration 2013F Infrastructure - 1.0 $52.0 -$52.6 26.0 2014E Capital 9.0 investment $38.3 5.3 $45.6 of - -and 2015E $35 -5.2 Investments I
Slide 9: Diversifies Supply and Planned Infrastructure Investments ($mm)
8Diversifies Planned ($mm) 2009-2012 Total NJ NJNG Additional Liquefaction Reduces Southern Adding Supports RISE - storm -Actual high-pressure $22.9 NJNG Infrastructure LNG -growth (Reinvestment Reliability -pipe supplier $4.6 response - 2013F Facility -transportation $41.6 Infrastructure to 16.0 in
Slide 10: Capital Expenditure Plan NJNG ($mm)
9Capital NJNG ($mm) 2009- Customer Actual Maintenance/Other AIP/SAFE Superstorm NGV NJ Liquefaction Southern SAVEGREEN Total Expected RISE $430.0 Advantage Capital 2012 of-Reliability Base Growth Over -136.7 Sandy 4.6 2013F $162.9 - -Expenditure 36.5 Rate 13.0 $1 16.0 -52.0 $79.4 1.0 -Billion 177.4
Slide 11: Infrastructure Investments Currently Earning a Return
Infrastructure 10 Earning Currently Return $726 Returns Future $652 NJNG mmcurrently - -a Investments earning a return AlreadyonEarning 53 percent a Return of these investments
Slide 12: Customer Growth Provides Annual Gross Margin Stability
Customer 11 Annual Provides $24.0 millions $12.8 $$18.0 $8.1 FY13F $0.0 6.0 17.4 $3.7 $22.1 FY14E 1.5 $12.0 gross Growth: to 1.6 margin FY15E percent NJNGstability FY16E customer GrossFY17E Margin growth Improving new construction Strong conversion market NJNG has decoupled rates (Conservation Incen
Slide 13: SAVEGREEN Project Promotes Efficiency, Gross Margin
The 12 Promotes BPU $12.0 millions $5.7 $8.0 $8.2 $10.0 $$10.1 FY13F $0.0 $2.0 NJNG 4.0 SAVEGREEN $2.9 approved $10.6 earns expects FY14E $6.0 customer 9.75 to aFY15E significant invest toProject®: investment 10.3 FY16E $85 percent program million NJNG FY17E inReturn high-efficiency over Gross expan
Slide 14: Infrastructure Programs Add to NJNG Gross Margin
The 13 Total $6—$8 NJNG Infrastructure $2.3 $2.6 $3.0 $0.7 millions $2.0 $0.6 $$1.0 $.2 FY13F $0.0 .01NGV $2.5 $0.8 $1.8 potential earns FY14E million $$1.8 Advantage: 10.3 Throughput $1.8 investment FY15E committed percent NJNG FY16E ROE of onup Gross three FY17E to $10 Margin contracts million
Slide 15: BGSS Incentive Programs Add Gross Margin
NJNG 14 Programs Adds $6.0 $6.5 $millions FY13F BGSS 8.0$6.0 6.0 4.0 2.0 0.0 $7.3 about has Gross FY14E $$6.0 in saved $.08 place Margin: FY15E annually customers through Basic FY16E toOctober ~$621 Gas NFE FY17E Supply per million 2015 share Service tosince benefit 1992 (BGSS) customers Incentives
Slide 16: Diversified Utility Gross Margin Growth
Diversified 15 $45.0 $40.0 millions $30.0 $29.3 $35.0 $25.0 FY13F $0.0 $5.0 $10.0 $15.0 $14.1 $20.0 Customer Incremental $41.3 $36.0 $20.3 FY14E $ Growth and utility FY15E Growing SAVEGREEN grossFY16E margin NJNGFY17E Gross expected NGVMargin BGSS to triple Incentives over five years
Slide 17: Targeted Midstream Investments Provide Strategic Growth
Targeted 16 Current Strategic Leveraging Steckman 50/50 12 Iroquois 5.53 Bcf percent joint natural investments Pipeline Growth Marcellus Ridge venture customer interest gasfrom storage with location provide incontacts Regulated gas Spectra facility pipeline enhances 5 for toEnergy 10 NJR growth into
Slide 18: Long-Term NFE Growth Strategies: 20-35 Percent from Non-Regulated Businesses
4 filing 17 Expanded Regulatedto Significant regulated Diversified investments gross November rate Targeted NJR Non-Regulated Diversify Prudently Steady 7increase Midstream margin Percent contributions growth inAverage infrastructure clean expand products Businesses 2015 sources Businesses energy ba
Slide 19: Clean Energy Portfolio Strategy
Clean 18 Renewable 62 Gradual ITCs How Increase Invest Long-term MWwill reduce Energy ininventory decline SREC onshore growth goal Portfolio toPortfolio 10 revenue; to incontinue? wind of percent maintain solar grid-connected Standard projects Strategy capital higher inNJRCEV January (RPS) spending
Slide 20: Improving Solar Energy Fundamentals: SREC Prices and Construction Activity
Improving 19 Energy $140 $$130 ICAP/KARBONE Installed $80 $90 NJ Solar SREC 160 150 140 130 120 110 100 increased 5.0 30.0 25.0 construction $100 $160 $150 SREC $prices sales Year $110 MWSREC 10.0 40.0 35.0 expected 2014 $120 solar have 15.0 Average Fundamentals SREC 20.0 nearly activity RPS Average
Slide 21: Clean Energy Portfolio Diversification: Onshore Wind
Clean 20 Why Supports Earnings 29 Tax NJR’s OwnEnergy Estimated NJR Will states credits evaluate has are Energy Strategic “first we and growth NJR’s minimum are focuses doing the project Portfolio refusal” production Partnership electric District opportunities this? on unlevered financing purchase D
Slide 22: Clean Energy Portfolio: Two Dot Wind Farm Purchased
Clean 21 Purchased 9.7 Approximately 25-year Start Strong Expected MWup Energy partners—GE, PPA expected utility tofrom contribute inPortfolio scale place $22 OwnEnergy, summer million wind toMortenson $.02-$.04 Diversification: sell2014 farm investment power Inc.project per Construction, Two share
Slide 23: NJRES: Portfolio Growth Opportunities in a Changing Market
NJRES: 22 Portfolio Growth Providing Producers, Holds 533toBcf 151.1 of percent opportunities Growth restructured storage Bcf/day energy Utilities, ofOpportunities solutions throughout total ofPower firm to from NFE reflect transportation for physical Generators, thecustomers in current U.S. a Chang
Slide 24: NJR Home Services Expanded Offerings and Geography
NJR 23 Expanded Whole-house Standby Air Pursuing Generators 2Currently to conditioning 5Home percent generator geographic marketing array Services: electric ofof total contracts services in expansion Retail and NFE Sussex, plumbing now Solutions Warren offered contracts for andCustomer Hunterdon Com
Slide 25: Consistent Net Financial Earnings Per Share
Consistent 24 Net $3.21 $3.49 $2.75 $3.20 $3.40 $2.95 $2.11 $2.40 $2.60 $2.80 $1.73 $1.80 $1.88 $2.00 $2.24 $1.40 $1.60 $1.61 *2003 Financial 2004 $2.20 $3.60 – $3.00 $1.80 $2.40 Assumes and 2005 $2.46 Earnings Sustainable 2006 a$2.58 range 2007 Per $2.71 ofFinancial Share 2008 4-7$2.70–$2.75 percen
Slide 26: Fiscal 2014 NFE Guidance and Contribution by Business
FiscalClean 25 New Natural 60-70% 5-15% NJR 2-5% Services 10-20% Ventures Regulated 5-10%Energy Home Jersey 2014 Gas NJR businesses Energy NFE Midstream Per Share expected Guidance—$2.75 to contribute 65-80 to $2.95 percent of total NFE
Slide 27: Growing Dividend with Sustainable Payout
Growing 26 $1.54 $1.62 $1.24 $$1.36 2007 55% 65% 2005 0% 16% 33% 49% 48% *Payout ** *** **** 2.00 1.75 1.50 1.25 1.01 1.00 0.75 0.50 0.25 0.00 Current Assumes Based 56% 51% 2008 2006 Peer Dividend $1.68 $1.44 $1.12 Ratio*** ratio and annual 57% 50% group on 2009 2007 5goal Sustainable NJR percent 52
Slide 28: Long-Term Financial Goals
NJR’scustomers 27 Achieve Significant New Provide Targeted Expect Supported Long-Term atannual average payout least by capital constructive 65 dividend and ratio long-term to Financial investment regulatory 80 ofpercent 60 growth and to NFE Goals 65 in collaborative initiatives of of regulated growt
Slide 29: New York Financial Community, October 23, 2013
New York October 23,Financial 2013 Community
New Jersey Resources — New York Financial Community presentation (October 2013) on 6ix