Newjersey Resources Corporation · NYSE:NJR
Newjersey Resources — Q3 FY2013 Earnings Presentation
24 slides from Newjersey Resources's earnings presentation, Aug 7, 2013
Slide 1: Fiscal 2013 Third Quarter Update
Exhibit 99.2 Fiscal 2013 August 7, 2013 Third Quarter Update
Slide 2: Regarding Forward-Looking Statements
Regarding Certain use concerning that statements contribution NJR NJRCEV, The Sandy). effect Company’s ability markets, commercial financing investments permitting, related NJNG’s process; customers Conservation potential and Form 1SEC’s of other customers, the factors Clean 10-K on forward-looking
Slide 3: Disclaimer: Regarding Non-GAAP Financial Measures
Disclaimer This considered gains NJRES. without planned sales Management discussion 2pursuant 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: NJR Affirms Long-Term Financial Goals
NJR Affirms Average Significant New Provide Targeted Expect 3Supported customers atannual long-term payout least by capital Long-Term constructive 60 dividend and ratio to investment NFE regulatory 70 ofpercent 60 growth growth Financial and to 65 in collaborative initiatives of of of regulated perc
Slide 5: NJR Has Average Long-Term NFE Growth
NJR Net $3.16 $3.60 $3.40 $2.65 $3.00 $3.20 $2.80 $2.60 $2.58 $2.20 $2.24 $2.40 $2.00 $$1.80 2003 $1.40 4*$1.60 1.61 Financial Has 2004 $3.54 – $2.71 $2.46 $2.11 $1.88 $1.73 Assumes Provided 2005 $2.75 Earnings 2006 a4range – 2007 7Per Percent ofShare 2008 4-7 Average percent 2009 2010 average Long-
Slide 6: NJR Dividend Has Significant Growth
NJR Dividend $1.54 .$1.60 $1.36 $1.01 $$1.12 2003 5*Payout **2.00 1.75 1.50 1.25 1.00 0.83 0.75 0.50 0.25 0.00 Has 2004 $1.92 $1.44 $0.91 $0.87 ratio Current AssumesProvided Growth 2005 5goal $0.96 2006 annual isa60 percent Growing 2007 –rate 65 percent average2008 and2009 Sustainable annual 2010 20
Slide 7: Third-Quarter Highlights
Third-Quarter Strong Superstorm Solar Increased 6Foundation fundamentals third midpoint Share for Sandy quarter Highlights long-term Repurchase recovery of improving results guidance growth remains Program in place on track
Slide 8: Third-Quarter Results: Colder Weather, Lower O&M
Stronger Colder O&M Nine Utility Lower $NFEPS 2012 7NJNG 0.25months .18 0.20 0.15 .10 0.10 0.05 (.05) 0.00Total $shifted negatively expects investment gross weather .23 Fiscal NJRES NJNG margin impacted to Third-Quarter higher drives third Results impacted Non-Utility taxlost quarter earnings credit
Slide 9: Midpoint of Fiscal 2013 NFE Guidance
Midpoint Fourth $.02 0N -0.05 $(.08) $-0.1 (.18) -0.15 8Seasonal on-Utility—33 0.05 -0.2 NJNG—67 $2.65 2013E 2012A Quarter nature oftoFiscal $2.75 NFE of percent percent NJNG/NJRES 2013 per Guidance share NFE Guidance operations Increased typically to $2.70 resultPer in fourth Share quarter net fina
Slide 10: NJNG's Capital Investments Drive Growth
NJNG’s NJNG NGV $146.3 $160.0 $5. $116.6 $120.0 $0.0 $41.8 SAFE/AIP $40.0 $80.0 Fiscal 9Over Maintenance, Sandy $68 Stations 2012 Capital New $21.6 Fiscal million $Fiscal Customer Other 28. System Expenditures 2013 earning 2013E $Infrastructure 49.9 Integrity a return & Investments Drive Growth
Slide 11: Growth Strategies for NFE
4markets Newfiling sources November rate Expanded 10 toinfrastructure Significant regulated investments Wind Diversified Jersey and of in 7increase CHP Percent wholesale products gross NJRHS 2015 and Natural solar Average investments growing margin base assets and Gas in and Steady ImprovingLong-Ter
Slide 12: NJNG Capital Expenditure Drives Customer Earnings Growth
Capital NJNG 2012 2009- Customer Actual System AIP/SAFE SuperStorm NGV Southern Liquefaction NJ TOTAL Earnings 11 RISE 2013F –Capital of 5.0 Maint./Other $393.5 33.0 on Reliability Growth Over 136.7 5.0 Sandy rate 2014E –33.0 Expenditure –$146.3 $1 base –41.8 $79.4 29.5 10.0 Billion –34.0 2015E –28.
Slide 13: New Southern Reliability Link Diversifies Supply
New Southern Diversifies Liquefaction Reduces Results NJ NJNG Additional Provides 12 RISE Infrastructure storm inLNG benefits (Reinvestment Reliability customer high-pressure pipe supplier response Facility transportation totobarrier Capital base savings customers Link —filing in $29.5 to pipeline i
Slide 14: Strong Customer Growth Improving Annual Utility Gross Margin
Customer Annual Improving Strong NJNG Eliminates $24.0 millions $12.8 $18.0 $$17.4 $8.1 FY13F $0.0 13 6.0 $3.6 $22.1 has conversion FY14E 1.4 $12.0 Growth—Annual decoupled new impacts to 1.5 FY15E construction percent market ofrates weather FY16E customer (CIP) Utility and FY17E usage Gross growthMa
Slide 15: The BPU Promotes SAVEGREEN Project
The BPU Promotes NJNG llions $8.0 $8.2 $10.0 $10.1 $10.6 $$12.0 mi $6.0 FY13F $0.0 $2.0 14 4.0 SAVEGREEN $2.9 approved $5.7 earns FY14E customer 9.75 significant FY15E toProject®—Utility investment 10.3 FY16E percent program FY17E inreturn high-efficiency expansion Gross on equity Margin in June hea
Slide 16: NGV Advantage and Infrastructure Investment
The Total $6—$8 NJNG Infrastructure $2.3 $2.6 $0.7 $0.6 milli ons $$.2 FY13F 153.0NGV 2.0 1.0 .01 0.0 $2.5 $0.8 $1.8 potential earns FY14E million Advantage—Utility $1.8 10.3 Throughput investment FY15E $1.8 committed percent FY16E return of upGross FY17E on to $10 equity Margin million
Slide 17: BGSS Incentives Programs Add Margin
BGSS Various Adds Saved $6.0 $6.5 mill $ions FY13F Programs 168.0$$6.0 6.0 2.0 0.0 $7.3 about 4.0 customers Incentives—Utility FY14E programs $6.0 in$.08 place FY15E annually approximately benefit through FY16E both to Gross October NFE customers FY17E $621 Margin 2015 million and shareowners since
Slide 18: Diversified Customer Growth and Utility Gross Margin
Diversified $45.0 $40.0 illions $30.0 $29.3 $$35.0 FY13F $0.0 $5.0 $10.0 $15.0 $14.1 Customer Incremental 17m $20.0 $41.3 $36.0 $25.0 FY14E Growth and utility $20.3 FY15E Growing SAVEGREEN grossFY16E margin UtilityFY17E expected Gross NGVMargin BGSS to triple Incentives over five years
Slide 19: Growth Strategies for NFE
4markets Newfiling sources November rate Expanded 18 toinfrastructure Significant regulated investments Wind Diversified Jersey and of in 7increase CHP Percent wholesale products gross NJRHS 2015 and Natural solar Average investments growing margin base assets and Gas in and Steady ImprovingLong-Ter
Slide 20: Improving NJ Solar Market Fundamentals
Improving NJ Solar Energy ICAP/KARBONE $90 $100 $110 $120 $130 $140 $150 SREC $80 19 increased construction sales YearMarket expected 2014 renewable SREC activity Average Fundamentals to portfolio grow Prices hasfrom slowed for standards approximately Solar due to Assets (RPS) BPU in 55,000 approval
Slide 21: Reallocating Capital to Wind: Strategic Considerations
Reallocating 29 Wind NJR’s Strategic OwnEnergy Will 20 states focus isWind typically and Considerations partnership oncurrent Energy Capital the long-term District thepipeline Progress into with most power of Wind OwnEnergy, economic Columbia of purchase Energy projects solution have specializing to
Slide 22: Reallocating Capital to CHP: Strategic Considerations
Reallocating Strategic Federal Superstorm CHP NJR’s Targeting Project Long-term 21 Portfolio CHP pipeline and Considerations key goal Progress Sandy state Capital markets—hospitals, Standard to ofincentives maintain drives approximately intounder Combined need NJRCEV strongly discussion for 6enhance
Slide 23: Steady Portfolio of Midstream and Services Businesses
Steady Portfolio 10 Midstream Seeking 5Existing NJR 2Growth 22toto5 10 Energy Home 15 percent Contributions percent opportunities though additional percent investments restructured Investments Services Services ofof expansion of total total opportunities total provide from NFE to from NFE NFE reflec
Slide 24: NJR Will Deliver
NJR Will Deliver Invest Diversify Reallocate Grow 23 other significantly consistent Continue and capital energy-related, growin net to in NJNG’s renewable Meet financial NJNG’s non-utility Customer gross infrastructure earnings portfolio margin and businesses and and Investor dividend to reduce enha
New Jersey Resources — Q3 FY2013 Earnings Presentation on 6ix