Newjersey Resources Corporation · NYSE:NJR
Newjersey Resources — Q1 FY2015 Earnings Presentation
17 slides from Newjersey Resources's earnings presentation, Feb 4, 2015
Slide 1: Fiscal 2015 First-Quarter Update
FISCAL 2015 FIRST - QUARTER UPDATE February 4, 2015
Slide 2: Regarding Forward-Looking Statements
Regarding Forward - Looking Statements 1 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 3: Disclaimer Regarding Non-GAAP Financial Measures
Disclaimer Regarding Non - GAAP Financial Measures 2 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 4: Net Financial Earnings ($MM)
Net Financial Earnings ( NFE ) 3 ($MM) Company 2014 2013 New Jersey Natural Gas $28.2 $27.6 NJR Energy Services 16.4 7.4 NJR Clean Energy Ventures 9.0 3.6 NJR Midstream 2.1 1.4 NJR Home Services/Other (0.6) (0.1) Total $55.1 $39.9 Per basic share $1.30 $.95 Three Months Ended December 31 » NJRES off
Slide 5: Earnings Drivers
Earnings Drivers » New Jersey Natural Gas x NFE of $28.2 million compared with $27.6 million in Q1 last year • Strong utility gross margin growth at NJNG » NJR Energy Services x NFE of $16.4 million vs. $7.4 million in Q1 last year • Higher financial margin • Periods of cold weather drove increased
Slide 6: Earnings Drivers
Earnings Drivers » NJR Clean Energy Ventures x NFE of $9 million vs. $3.6 million in Q1 last year • One grid - connected project and 145 residential systems placed into service • Increased Solar Renewable Energy Certificates (SREC) sales and prices » NJR Midstream x NFE of $2.1 million vs. $1.4 mill
Slide 7: Our Growth and Earnings Strategy
Our Growth and Earnings Strategy » Increased regulated infrastructure investments drives safe, reliable service and anchors our business portfolio x NJNG drives our long - term growth x PennEast Pipeline » Provide customers with cost - efficient renewable electricity, while reducing ITC reliance x P
Slide 8: Growing Capital Investments ($MM)
Growing Capital Investments 7 ($MM) 2014A 2015E 2016E 2017E Total Immediate Return NJNG Customer Growth $30.1 $26.8 $26.9 $27.0 $110.8 Yes Maintenance/Other 61.8 66.9 54.4 56.2 239.3 AIP/SAFE 40.3 41.2 39.0 2.4 122.9 Yes Superstorm Sandy 9.8 5.0 - - 14.8 NGV Fueling Stations 4.8 4.2 - - 9.0 Yes NJ R
Slide 9: Strong Customer Growth Continues
Strong Customer Growth Continues 8 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 » 2,581 new customers added in Q1 fiscal 2015 compared with 2,129 last year - a 21 percent increase x 1,161 new construc
Slide 10: Key Trends Support Future Customer Growth
Key Trends Support Future Customer Growth 9 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 11: Collaborative Regulatory Relationships
Collaborative Regulatory Relationships 10 Regulatory and Incentive Programs » Basic Gas Supply Service Incentives (BGSS) - 1992 » Conservation Incentive Program (CIP) - 2006 » Accelerated Infrastructure Program (AIP) - 2008 » The SAVEGREEN Project® - 2009 » Safety Acceleration and Facility Enhanceme
Slide 12: NJNG: Diversified Sources of Utility Growth
NJNG: Diversified Sources of Utility Growth 11 NJNG expects incremental utility gross margin to grow about 37 percent by 2017 $0 $5 $10 $15 $20 $25 $30 $35 $40 FY14A FY15E FY16E FY17E $28.1 $31.6 $35.3 $38.4 Millions Customer Growth Red Oak SAVEGREEN NGV BGSS Incentives Incremental Utility Gross Mar
Slide 13: NJRES: Generated NFE Every Year Since 1995
NJRES: Generated NFE Every Year Since 1995 » Serves wholesale customers across North America » Diverse portfolio of physical natural gas assets » Firm storage ( 43 Bcf in the US and Canada) » Firm transportation ( 1.5 Bcf/day) » Services include: x Transporting natural gas x Selling storage gas duri
Slide 14: PennEast Pipeline
PennEast Pipeline 13 » 108 - mile, 36 - inch pipeline » Connecting Northeast Marcellus supply to Northeast markets » Contracted volume up to 1,000,000 dth/day » Total capex $1 billion » Current ownership: NJR , AGL, SJI, UGI at 20 percent and PSEG and SE at 10 percent » Open season concluded August
Slide 15: NJRCEV: Continued Portfolio Diversification
NJRCEV: Continued Portfolio Diversification Commercial Solar » 19 project sites » 68.3 MW » Projects include roof - and ground - mounted installations, both grid - connected and net - metered Residential Solar - The Sunlight Advantage ® » Third largest residential solar provider in New Jersey » 3,26
Slide 16: Improving SREC Fundamentals
Improving SREC Fundamentals 15 Source of Monthly Capacity Additions: New Jersey’s Clean Energy Program™ Source of SREC Prices: Karbone $60 $80 $100 $120 $140 $160 $180 $200 $220 $240 SREC Prices $70 $218 NJRCEV forecasts SREC production to grow in excess of 194,000 in fiscal 2017
Slide 17: Our Path to Continued Growth
Our Path to Continued Growth 16 Fiscal 2015 NJNG x Customer growth x CIP x BGSS incentives x SAVEGREEN x SAFE x NJ RISE x SRL Energy Services x Physical natural gas services x Producer services Clean Energy x Portfolio diversification x More SRECs; higher prices x Expanded w ind investments Midstrea
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