Newjersey Resources Corporation · NYSE:NJR
Newjersey Resources — FY2013 Earnings Presentation
26 slides from Newjersey Resources's earnings presentation, Nov 25, 2013
Slide 1: Fiscal 2013 Year-End Review
Exhibit 99.2 Fiscal 2013 Year-End Review November 25, 2013
Slide 2: Regarding Forward-Looking Statements
1 Regarding Forward-Looking Statements Certain statements contained in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipates,” “estimates,” “expects,” “projects,” “may,” "will," “intends,” “expects,” "b
Slide 3: Disclaimer Regarding Non-GAAP Financial Measures
2 Disclaimer Regarding Non-GAAP Financial Measures This presentation includes the non-GAAP measures net financial earnings (losses), financial margin and utility gross margin. As an indicator of the Company’s operating performance, these measures should not be considered an alternative to, or more m
Slide 4: Fiscal 2013 - Highlights of a Challenging Year
3 Fiscal 2013 - Highlights of a Challenging Year nd Achieved our 22 consecutive year of higher NFE; increased th dividend for the 18 consecutive year Despite Superstorm Sandy, added 11 percent more new utility customers than fiscal 2012 Invested $60 million in solar and recently announced first wind
Slide 5: NJR Delivered Improved Performance in the Quarter and Fiscal Year
4 NJR Delivered Improved Performance in the Quarter and Fiscal Year September 30, September 30, Company 2013 2012 2013 2012 New Jersey Natural Gas $(3.1) $(5.2) $73.8 $73.2 NJR Energy Services (2.2) (7.3) 19.3 10.8 NJR Clean Energy 1.0 (1.4) 10.1 19.5 NJR Midstream 1.6 1.3 7.2 6.8 NJR Home Services/
Slide 6: Despite Superstorm Sandy, NJNG Delivered Improved Results
5 Despite Superstorm Sandy, NJNG Delivered Improved Results Change in NJNG Gross Margin (Thousands) 2013 vs. 2012 Customer Impact $3,221 AIP 821 SAVEGREEN 1,018 Superstorm Sandy (3,362) Total $1,698 Approximately 75 percent of Sandy customers back $26.1 million invested in system restoration Will se
Slide 7: Fiscal 2013 Segment Results
6 Fiscal 2013 Segment Results NJR Energy Services -- Benefited from pockets of cold winter and hot summer weather NJR Midstream -- Improvement from lower expenses and improved performance at Iroquois Pipeline NJR Clean Energy Ventures -- Lower capital spending due to grid- connected approval process
Slide 8: Fiscal 2013 Net Financial Earnings Per Share
7 Fiscal 2013 Net Financial Earnings Net Financial Earnings Per Share $2.73 $2.80 $2.71 $2.58 $2.60 $2.46 $2.40 $2.40 $2.24 $2.20 $2.11 $2.00 $1.88 $1.80 $1.73 $1.80 $1.61 $1.60 $1.40 $1.20 $1.00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 7
Slide 9: Growing and Sustainable Dividend
8 Growing and Sustainable Dividend $2.00 Dividend Growth 65% Payout Ratio** 63% 57% 59% $1.75 $1.68 55% 56% $1.62 $1.54 50% 52% $1.50 $1.44 48% $1.36 49% $1.24 $1.25 $1.12 $1.01 $1.00 33% $0.75 $0.50 16% $0.25 $0.00 0% 2007 2008 2009 2010 2011 2012 2013 2014* 2007 2008 2009 2010 2011 2012 2013 Peer
Slide 10: Fiscal 2014 NFE Per Share Guidance - $2.75 to $2.95
9 Fiscal 2014 NFE Per Share Guidance - $2.75 to $2.95 New Jersey Natural Gas 60-70% NJR Energy Services 5-15% NJR Home Services 2-5% NJR Clean Energy Ventures 10-20% NJR Midstream 5-10% Regulated businesses expected to contribute 65-80 percent of total NFE
Slide 11: 4 to 7 Percent Average Long-Term Annual NFE Growth Strategies
10 4 to 7 Percent Average Long-Term Annual NFE Growth Strategies Regulated Businesses Non-Regulated Businesses Significant increase in NJNG Diversify clean energy regulated infrastructure portfolio investments Expand onshore wind Diversified sources of NJNG gross margin investments November 2015 bas
Slide 12: NJNG Customer Growth Estimated to Add $3.9 Million Annually of Utility Gross Margin
11 NJNG Customer Growth Estimated to Add $3.9 Million Annually of Utility Gross Margin 7,456 new customers in fiscal 2013, up 11 percent over last year; highest number since 2008 3,627 new construction customers; up 27 percent over last year 3,829 conversions from other fuels; 51 percent of total 61
Slide 13: Key Trends Support Future Customer Growth
12 Key Trends Support Future Customer Growth Demographics Fuel Pricing Population Change 2000-2010 15.0% 12.8% 10.0% 4.5% 4.7% 5.0% 2.5% 0.0% NJ Morris Monmouth Ocean Future New Construction Future Conversions Non Heat 2014- Off Main 6,900 On Main 2017 47,840 37,749 17,350 2019- Buildout 66,993 Near
Slide 14: Capital of Over $1 Billion Drives Long-Term Growth
13 Capital of Over $1 Billion Drives Long-Term Growth NJNG Capital Expenditure Estimates 2009- ($mm) 2012 2013A 2014E 2015E 2016E 2017E Total Actual Customer Growth $79.4 $24.5 $24.7 $25.6 $25.5 $25.5 $205.2 Maintenance/Other 177.4 42.5 63.3 55.9 48.1 40.6 427.8 AIP/SAFE 136.7 45.3 31.6 33.7 39.1 -
Slide 15: Current NJNG Infrastructure Investments
14 Current NJNG Infrastructure Investments SAFE (Safety Acceleration and Facility Enhancement Program)- $130 million over four years to replace 276 miles of cast iron and unprotected steel main FISCAL 2014 GOAL: Invest $32 million, complete 79 miles of replacement pipe Superstorm Sandy - Range of $3
Slide 16: Planned NJNG Infrastructure Capital Projects
15 Planned NJNG Infrastructure Capital Projects NJ RISE (Reinvestment in System Enhancement) - $102 million NJNG storm response plan filed with NJ BPU on September 3, 2013 Additional pipe to barrier islands and excess flow valves FISCAL 2014 GOAL: Develop regulatory review process; will set timetabl
Slide 17: Diversified and Growing NJNG Gross Margin
16 Diversified and Growing NJNG Gross Margin Incremental utility gross margin expected to more than double by fiscal 2017
Slide 18: Targeted Growth from Regulated NJR Midstream
17 Targeted Growth from Regulated NJR Midstream Current investments provide 5 to 10 percent of NFE Strategic Marcellus location supports value Leverage customer contacts to identify new opportunities Steckman Ridge Iroquois Pipeline 50/50 joint venture with Spectra Energy 5.53 percent interest in ga
Slide 19: Clean Energy Portfolio Strategy
18 Clean Energy Portfolio Strategy Renewable Portfolio Standard (RPS) provides a growing source of demand 62 MW inventory of grid-connected projects over next three years Sunlight Advantage residential solar program Eliminate reliance on solar ITC by January 2017 Currently estimate approximately 174
Slide 20: Clean Energy Portfolio Diversification: Onshore Wind
19 Clean Energy Portfolio Diversification: Onshore Wind Why are we doing this? Supports NJR’s electric strategy Earnings growth opportunities supported by long-term Power Purchase Agreements (PPAs) with annuity-like returns 29 states and the District of Columbia have RPS Tax credits are production b
Slide 21: Clean Energy Portfolio Diversification: Two Dot Wind Farm
20 Clean Energy Portfolio Diversification: Two Dot Wind Farm Announced on October 23, 2013 9.7 MW utility scale wind farm project located in Montana, east of Helena Approximately $22 million investment; PTC eligible 25-year PPA in place to sell power to NorthWestern Energy to support their RPS requi
Slide 22: NJRES: Growth Opportunities in a Changing Market
21 NJRES: Growth Opportunities in a Changing Market Portfolio restructured to succeed in current market Growth opportunities from physical natural gas and producer services Providing energy solutions for diverse customers in the Marcellus Shale and other natural gas regions Producers, Utilities, Pow
Slide 23: NJR Home Services: Retail Solutions for Customer Comfort
22 NJR Home Services: Retail Solutions for Customer Comfort Majority of earnings derived from service contracts Approximately 121,000 service contract customers Expanded array of services now offered Whole-house electric and plumbing contracts Standby generator contracts Air conditioning Generators
Slide 24: NJR Affirms Long-Term Financial Goals
23 NJR Affirms Long-Term Financial Goals Achieve average long-term NFE growth of 4 to 7 percent Significant capital investment in regulated business to support customer growth and maintain safe, reliable and resilient service New customers and regulatory initiatives generate significant NJNG utility
Slide 25: NJR Will Continue to Meet Customer and Investor Expectations
24 NJR Will Continue to Meet Customer and Investor Expectations Delivering consistent net financial earnings and dividend growth Investing significantly in NJNG’s infrastructure to enhance system reliability Diversifying and growing NJNG’s gross margin Committing capital to clean energy portfolio Gr
Slide 26: Fiscal 2013 Year-End Review
Fiscal 2013 Year-End Review November 25, 2013