Newjersey Resources Corporation · NYSE:NJR
Newjersey Resources — Investor Presentation (June 2023)
43 slides from Newjersey Resources's investor presentation, Jun 20, 2023
Slide 1: Shareholder Appreciation Day
Shareholder Appreciation Day June 20, 2023
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Li
Slide 3: Agenda
Agenda 1 Business Overview NJR’s Clean Energy Strategy Steve Westhoven | President and CEO 2 New Jersey Natural Gas: Building for the Utility of the Future Patrick Migliaccio | COO 3 Driving Growth And Adaptability Through Diversification Amy Cradic | COO 4 Planning for Growth Roberto Bel | CFO Conc
Slide 4: Steve Westhoven
Steve Westhoven President and CEO New Jersey Resources 4
Slide 5: 2023 NJR Innovation Award Winner – Chris Chen
2023 NJR Innovation Award Winner – Chris Chen Awarded to Individuals Fostering a Culture Built Around Innovation Christopher Chen Manager NJNG Business Development 5
Slide 6: The Shareholder Appreciation Day
The Shareholder Appreciation Day An Opportunity to Say “Thank You” What Led Us Here Today 1982 - 2019 2020 2023 NJR Welcomed COVID-19 While Efficient, the Shareholders Regularly Virtual Format Left a to its Annual Meeting Restrictions Led to a Void for Both our Each January Shift to Virtual Annual S
Slide 7: NJR: Share Price
NJR: Share Price* NYSE:NJR 60 $47.49 Share Price from October 1, 2022 to June 16, 2023 55 Stock Price 97.0M 50 Shares Outstanding 45 $4.6B Market Capitalization 40 35 October November December January February March April May June 2022 2022 2022 2023 2023 2023 2023 2023 2023 * Share Price and Market
Slide 8: NJR: Business Portfolio
NJR: Business Portfolio Natural Gas and Renewable Fuel Distribution; Solar Investments, Wholesale Energy Markets; Storage & Transportation Infrastructure; Retail Operations New Jersey Operates and maintains approximately 7,700 miles of Natural Gas Natural Gas transportation and distribution infrastr
Slide 9: NJR: Major Accomplishments Over the Past 5 Years
NJR: Major Accomplishments Over the Past 5 Years Increased Stability Driven by a Strategy Building Predictable, Fee Based Revenues NJR 5 Years Ago ~ 2018 NJR Today New Jersey Natural Gas Southern Reliability Link (SRL) SRL and Other Major Infrastructure (NJNG) under Construction Investments Complete
Slide 10: Our Clean Energy Strategy
Our Clean Energy Strategy Utilizing Best-in-Class Distribution NJR at Present NJR in the Future Owner of Modern Infrastructure Positioned to Reliably Serve Customers Integrating Renewable Fuels Natural gas plays a vital role in Secure renewable Leverage renewable supplying reliable energy opportunit
Slide 11: Decarbonization: Leading the Way
Decarbonization: Leading the Way • Embrace innovations across technologies and fuel types to advance Net-Zero NJ decarbonization • Reduce greenhouse gas emissions from Operations operated assets and suppliers by 2050 • Expand energy efficiency, conservation and environmental opportunities • Safely a
Slide 12: Shaping the Clean Energy Future: Federal Support
Shaping the Clean Energy Future: Federal Support • Public policy will play a critical role in shaping the energy future • Focused on reducing emissions, addressing climate change and encouraging clean energy solutions The Inflation Reduction Act aligns with NJR’s “all of the above” approach to energ
Slide 13: Aligned with New Jersey’s Clean Energy Policy Landscape
Aligned with New Jersey’s Clean Energy Policy Landscape 2019 The Energy Master Plan (EMP) established priorities for the use, management and development of NJR Environmental Initiatives energy in New Jersey Maximize energy efficiency and conservation SAVEGREEN Accelerate the use of renewable CEV exp
Slide 14: NJNG: Building the Utility of the Future
NJNG: Building the Utility of the Future Patrick Migliaccio 14 SVP and Chief Operating Officer
Slide 15: New Jersey Natural Gas
New New Jersey Jersey Natural Natural Gas Gas (NJNG) • Largest stand-alone natural gas utility in New Jersey • Keeps customers’ homes warm and businesses running throughout Monmouth, Ocean, Morris, Middlesex, Safety Reliability Burlington, and Sussex counties • Over 7,700 miles of distribution and t
Slide 16: NJNG: Attractive Service Territory with a Growing Customer Base
NJNG: Attractive Service Territory with a Growing Customer Base Customer Base Advantageously Located between New York and Philadelphia NJNG Customers Population1 (in thousands) thousands 580 1,790 1,835 1,700 570 575 1,600 569 Sussex 560 564 637 644 Morris • Parsippany 580 Ocean 558 510 550 548 Midd
Slide 17: Investing in Safety
Investing in Safety Invested over $2.3 billion in our distribution Safety system over the last decade • First natural gas utility in the state to eliminate cast iron and unprotected bare steel • 100% of our distribution system is high-integrity plastic or protected steel • Infrastructure Investment
Slide 18: Most Environmentally Sound Natural Gas Delivery System in New Jersey
Most Environmentally Sound Natural Gas Delivery System in New Jersey1 1st Reliability $2.3 Billion NJ natural gas utility to completely Invested in natural gas delivery system remove 100% of all unprotected steel infrastructure in last decade and cast iron from its system in December 2022 Continuous
Slide 19: SAVEGREEN Provides Energy Efficiency and Earns a Return for NJNG
SAVEGREEN Provides Energy Efficiency and Earns a Return for NJNG One of the most Energy successful residential Efficiency energy-efficiency SAVEGREEN 2020 programs in N.J. During the current three-year SAVEGREEN program, NJNG expects to invest up to $259 million in energy efficiency alongside Conduc
Slide 20: Decarbonizing Our Fuel Stream
Decarbonizing Our Fuel Stream Howell Green Hydrogen Project Innovation • Placed in service in first quarter of fiscal 2022 • First green hydrogen project on the east coast used to heat customers’ homes and businesses • Located at NJNG’s Howell LNG facility • Successfully blending green hydrogen into
Slide 21: Driving Growth And Adaptability Through Diversification
Driving Growth And Adaptability Through Diversification Amy Cradic SVP and Chief Operating Officer 21
Slide 22: NJR: A Diversified Energy Infrastructure Company
NJR: A Diversified Energy Infrastructure Company Solar Investments, Wholesale Energy Markets; Storage & Transportation Infrastructure; Retail Operations NJR’s Non-utility Businesses ~ $2.4 Billion in Assets 1 Clean Energy Ventures Storage and Energy Services New Jersey Resources (CEV) Transportation
Slide 23: Clean Energy Ventures (CEV): A Leader in the Solar Marketplace
Clean Energy Ventures (CEV): A Leader in the Solar Marketplace • Over $1.2 billion invested in the solar marketplace to date • A total of 65 commercial projects in service • Over 9,500 residential solar customers in NJ’s 21 counties • More than 440 megawatts of installed capacity 23
Slide 24: CEV: Milestone Projects
CEV: Milestone Projects Largest Floating Solar Array in the U.S. Largest Landfill Site in the State of New Jersey 25.6-MW solar project, located in Mount Olive, New Jersey, transforms the former Combe Fill North Landfill Superfund site, into an income-generating, clean energy producing asset. The Mo
Slide 25: CEV: Growing Capacity with a Robust Pipeline
CEV: Growing Capacity with a Robust Pipeline CEV owns and operates solar projects in New Jersey, Rhode Island, New York and Connecticut with approximately 440MW of capacity MWs Total 1200 ~1.2 GW In Service Under Construction Under Contract or Exclusivity 268 1000 Pipeline of ~740MW 800 including pr
Slide 26: Storage and Transportation (S&T): Overview
Storage and Transportation (S&T): Overview Stable Contribution from Leaf River (storage), Steckman Ridge (storage), and Adelphia Gateway (transportation) Portfolio of assets with “utility-like” stable • 0.9 mmdth/d interstate pipeline from NE PA to greater Philadelphia area net financial earnings co
Slide 27: S&T: Adelphia Gateway
S&T: Adelphia Gateway Placed Fully into Service in September 2022 • 0.9 mmdth/d interstate pipeline from NE PA to greater Philadelphia area • Acquired January 2020 / Placed in service September 2022 • 100% owner & operator • Serving the Northeast region, where the current pipeline grid is constraine
Slide 28: Energy Services: Overview
Energy Services: Overview Managing a Diversified Portfolio of Physical Natural Gas Transportation and Storage Assets to Serve Customers Across North America; Secured Fee-based Revenue through Asset Management Agreements Long Option Strategy Asset Management Agreements • Proven track record of succes
Slide 29: Home Services: Meeting Customers Home Comfort Needs
Home Services: Meeting Customers Home Comfort Needs • Spun out from NJNG in 2000 • Provides home comfort solutions, including: o Residential service contracts for heating, cooling, water heating, electrical and standby generators o Equipment sales and installations, solar lease and purchase plans, p
Slide 30: Strategic Path
Strategic Path Diversified business model enhances our ability to adapt to challenges in ways that benefit our customers and investors Grow Our Invest in the Clean Achieve More Core Businesses Energy Future Predictable and • NJNG and CEV are NJR’s core • NJR’s long-term value focused on Stable Earni
Slide 31: Planning for Growth
Planning for Growth Roberto Bel SVP and Chief Financial Officer 31
Slide 32: Long Term Growth Rates: How does NJR Compare?
Long Term Growth Rates: How does NJR Compare? Growth Rates: At the Top End of Our Peer Group 0-0% Nothing 4-6% 5-7% 6-8% 7-9% Defined 32
Slide 33: Fiscal 2023 NFEPS Guidance of $2.62 to $2.72
Fiscal 2023 NFEPS Guidance of $2.62 to $2.721 Guidance Raised by $0.20 in Q1 FY2023; Represents 8.1% Increase from Midpoint of FY 2023 Initial Guidance Range Net Financial Earnings per Share $2.62 - $2.72 7-9 % 15.3% $2.50 LONG-TERM NFEPS CAGR THROUGH ANNUAL GROWTH1 FY2023E $2.471 $2.16 $2.251 $1.74
Slide 34: NJR: Capital Plan
NJR: Capital Plan1 ($ in Millions) Capital plan supports long-term NFEPS growth targets of 7 – 9% $529 $712 $622 $520 - $658 $542 - $728 $124 $2 - $8 $20 - $28 $89 $142 $43 $140 - $280 $100 - $200 $124 $145 $499 $400 - $430 $400 - $440 $362 $335 FY2020A FY2021A FY2022A FY2023E FY2024E NJNG CEV S&T 1
Slide 35: Well Positioned in a Rising Interest Rate Environment
Well Positioned in a Rising Interest Rate Environment ($ in Millions) We are Factoring in Higher Interest Rates and Intend to Fund our Growth through Debt with No Need for Block Equity Term Debt Maturity Schedule Impact of high interest rate as of March 31, 2023 environment included in FY2023 and $1
Slide 36: Conclusion
Conclusion Steve Westhoven President & Chief Executive Officer 36 36
Slide 37: Factors Contributing to Share Performance
Factors Contributing to Share Performance Performance Financial External and Execution Position Factors ✓ NJNG’s 2021 successful rate case ✓ NJR balance sheet well ✓ Utilities generally seen as ✓ S&T placed Adelphia fully into positioned in a rising interest rate “Recession Resilient” service enviro
Slide 38: How NJR Compares to Peers
How NJR Compares to Peers Stock Price Appreciation September 30, 2022 to June 16, 2023 NJR ~23% UTIL Index NJR Peer Group ~4% September October November December January February March April May June 2022 2022 2022 2022 2023 2023 2023 2023 2023 2023 38
Slide 39: NJR Dividend Growth: Committed to Building Shareholder Value
NJR Dividend Growth: Committed to Building Shareholder Value $1.56 Strong Track Record of Dividend Growth Dividends per Share FY 2023 Dividend 7.3% (up 7.6%) DPS CAGR $1.45 $1.33 $1.25 $1.17 $1.09 $1.02 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 39
Slide 40: NJR: Total Expected Shareholder Return
NJR: Total Expected Shareholder Return Delivering Value to Shareholders Through Growth and Income NJR is a Premier Energy Infrastructure Company The Clean Energy Future Solid Long Term Growth Growing Dividend Starts at NJR Outlook Net Zero by 2050 goal for New Expect 7% - 9% Annualized dividend yiel
Slide 41: Questions?
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Slide 42: Thank You!
Thank You! 42
Slide 43: Shareholder and Contact Information
Shareholder and Contact Information Stock Transfer Agent and Registrar Corporate Headquarters The Transfer Agent and Registrar for the company’s common stock is Broadridge Corporate Issuer Solutions, Inc. (Broadridge). 1415 Wyckoff Road Wall, NJ 07719 Shareowners with questions about account activit
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