New Jersey Resources Reports Fiscal 2023 Fourth-Quarter and Year End Results
Rhea-AI Summary
New Jersey Resources Corporation (NJR) reported a consolidated net income of $264.7 million for fiscal 2023, compared to $274.9 million in fiscal 2022. They also reported an increased fiscal 2024 dividend by 7.7% to $1.68 per share and introduced fiscal 2024 net financial earnings per share (NFEPS) guidance range of $2.70 to $2.85, maintaining a long-term projected NFEPS growth rate of 7 to 9 percent.
11/21/2023 - 07:00 AM
Introduces Fiscal 2024 Guidance and Maintains its Long-term Projected Growth Rate
WALL, N.J. --(BUSINESS WIRE)--
Today, New Jersey Resources Corporation (NYSE: NJR) reported results for the fourth quarter and year ended fiscal 2023. Highlights include:
Consolidated net income of $264.7 million for fiscal 2023, compared with net income of $274.9 million in fiscal 2022
Consolidated net financial earnings (NFE), a non-GAAP financial measure, of $261.8 million , or $2.70 per share, compared to NFE of $240.3 million , or $2.50 per share, in fiscal 2022
Increased fiscal 2024 dividend by 7.7% to $1.68 per share
Outlook for Fiscal 2024
Introduces fiscal 2024 net financial earnings per share (NFEPS) guidance range of $2.70 to $2.85
Maintains long-term projected NFEPS growth rate of 7 to 9 percent(1)
Fourth-quarter fiscal 2023 net income totaled $37.0 million , or $0.38 per share, compared with net income of $54.5 million , or $0.57 per share, during the same period in fiscal 2022. Fiscal 2023 net income totaled $264.7 million , or $2.73 per share, compared with $274.9 million , or $2.86 per share, for the same period in fiscal 2022.
Fourth-quarter fiscal 2023 NFE totaled $29.6 million , or $0.30 per share, compared to NFE of $47.9 million , or $0.50 per share, during the same period in fiscal 2022. Fiscal 2023 NFE totaled $261.8 million , or $2.70 per share, compared with $240.3 million , or $2.50 per share, for the same period in fiscal 2022.
Management Commentary
Steve Westhoven, President and CEO, stated, "NJR reported an excellent year in fiscal 2023 supported by solid contributions from our complementary portfolio of businesses. We achieved NFEPS at the higher end of our guidance range, which was increased by $0.20 earlier this year as a result of the strong performance of our business units during Winter Storm Elliott, particularly Energy Services. Our performance this past year speaks to the strength of our diversified business model, and our ability to adapt to challenges in ways that benefit our customers and investors."
Key Performance Metrics
Three Months Ended
Twelve Months Ended
September 30,
September 30,
($ in Thousands)
2023
2022
2023
2022
Net income
$
37,024
$
54,522
$
264,724
$
274,922
Basic EPS
$
0.38
$
0.57
$
2.73
$
2.86
Net financial earnings
$
29,563
$
47,896
$
261,827
$
240,321
Basic net financial earnings per share
$
0.30
$
0.50
$
2.70
$
2.50
(1) NFEPS long-term annual growth projections are based on the midpoint of the $2.20 - $2.30 initial guidance range for fiscal 2022, provided on February 1, 2021
A reconciliation of net income to NFE for the three and twelve months ended September 30, 2023 and 2022, is provided below.
Three Months Ended
Twelve Months Ended
September 30,
September 30,
(Thousands)
2023
2022
2023
2022
Net income
$
37,024
$
54,522
$
264,724
$
274,922
Add:
Unrealized gain on derivative instruments and related transactions
(7,579
)
(1,846
)
(38,081
)
(59,906
)
Tax effect
1,800
439
9,050
14,248
Effects of economic hedging related to natural gas inventory
(2,186
)
(5,221
)
34,699
19,939
Tax effect
520
1,241
(8,246
)
(4,738
)
Gain on equity method investment
—
(1,500
)
(300
)
(5,521
)
Tax effect
(93
)
374
(19
)
1,377
NFE tax adjustment
77
(113
)
—
—
Net financial earnings
$
29,563
$
47,896
$
261,827
$
240,321
Weighted Average Shares Outstanding
Basic
97,568
96,235
97,028
96,100
Diluted
98,192
96,630
97,627
96,488
Basic earnings per share
$
0.38
$
0.57
$
2.73
$
2.86
Add:
Unrealized gain on derivative instruments and related transactions
(0.08
)
(0.02
)
(0.39
)
(0.62
)
Tax effect
0.02
0.01
0.09
0.15
Effects of economic hedging related to natural gas inventory
(0.02
)
(0.05
)
0.36
0.21
Tax effect
—
0.01
(0.09
)
(0.05
)
Gain on equity method investment
—
(0.02
)
—
(0.06
)
Tax effect
—
—
—
0.01
Basic net financial earnings per share
$
0.30
$
0.50
$
2.70
$
2.50
NFE is a measure of earnings based on the elimination of timing differences to effectively match the earnings effects of the economic hedges with the physical sale of natural gas, Solar Renewable Energy Certificates (SRECs) and foreign currency contracts. Consequently, to reconcile net income and NFE, current-period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item. Realized derivative gains and losses are also included in current-period net income. However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the derivatives with realized margins on physical natural gas flows. NFE also excludes certain transactions associated with equity method investments, including impairment charges, which are non-cash charges, and return of capital in excess of the carrying value of our investment. These are not indicative of the Company's performance for its ongoing operations. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE.
A table detailing NFE for the three and twelve months ended September 30, 2023 and 2022, is provided below.
Net financial (loss) earnings by business unit
Three Months Ended
Twelve Months Ended
September 30,
September 30,
(Thousands)
2023
2022
2023
2022
New Jersey Natural Gas
$
(24,838
)
$
(16,387
)
$
131,414
$
140,124
Clean Energy Ventures
50,152
57,813
44,458
39,403
Storage and Transportation
1,784
11,341
12,835
22,454
Energy Services
(3,537
)
(3,383
)
68,517
39,121
Home Services and Other
3,451
(1,894
)
4,758
(781
)
Subtotal
27,012
47,490
261,982
240,321
Eliminations
2,551
406
(155
)
—
Total
$
29,563
$
47,896
$
261,827
$
240,321
Fiscal 2024 NFE Guidance:
NJR is introducing its fiscal 2024 NFEPS guidance range of $2.70 to $2.85 , which represents 12.3% percent year-over-year growth over the midpoint of the originally provided fiscal 2023 guidance range of $2.42 - $2.52 , subject to the risks and uncertainties identified below under "Forward-Looking Statements."
In fiscal 2024, NJR expects Energy Services will represent a higher percentage of NFEPS than in prior years due to contributions from the Asset Management Agreements signed in 2020. The following chart represents NJR’s current expected contributions from its business segments for fiscal 2024:
Company
Expected Fiscal 2024
Net Financial Earnings
Contribution
New Jersey Natural Gas
40 to 45 percent
Clean Energy Ventures
13 to 18 percent
Storage and Transportation
4 to 8 percent
Energy Services
35 to 40 percent
Home Services and Other
0 to 1 percent
In providing fiscal 2024 NFE guidance, management is aware there could be differences between reported GAAP earnings and NFE due to matters such as, but not limited to, the positions of our energy-related derivatives. Management is not able to reasonably estimate the aggregate impact or significance of these items on reported earnings and, therefore, is not able to provide a reconciliation to the corresponding GAAP equivalent for its operating earnings guidance without unreasonable efforts.
New Jersey Natural Gas ("NJNG")
NJNG reported fiscal 2023 NFE of $131.4 million , compared to NFE of $140.1 million during fiscal 2022. NJNG reported fourth-quarter fiscal 2023 net financial loss of $(24.8) million , compared to a net financial loss of $(16.4) million during the same period in fiscal 2022. The decrease in NFE for the year was due primarily to higher depreciation and operating expenses, including the deferral of bad debt costs in accordance with the July 2, 2020 BPU deferral order in fiscal 2022 that did not reoccur, partially offset by higher utility gross margin.
Customer Growth:
NJNG added 8,800 new customers during fiscal 2023, compared with 7,808 during fiscal 2022. NJNG expects these new customers to contribute approximately $7.4 million of incremental utility gross margin on an annualized basis.
Infrastructure Update:
NJNG's Infrastructure Investment Program (IIP) is a five-year, $150 million accelerated recovery program that began in fiscal 2021. IIP consists of a series of infrastructure projects designed to enhance the safety and reliability of NJNG's natural gas distribution system. During fiscal 2023, NJNG spent $43.1 million under the program on various distribution system reinforcement projects. On March 30, 2023, NJNG submitted its annual IIP filing to the BPU requesting a rate increase for capital expenditures of $31.4 million through June 30, 2023, resulting in a $3.2 million revenue increase, with an effective date of October 1, 2023.
Basic Gas Supply Service (BGSS) Incentive Programs:
BGSS incentive programs contributed $20.0 million to utility gross margin in fiscal 2023, compared with $19.6 million during fiscal 2022. Increases in storage incentive margin and capacity release volumes in fiscal 2023, were partially offset by lower off-system sales.
For more information on utility gross margin, please see "Non-GAAP Financial Information" below.
Energy-Efficiency Programs:
SAVEGREEN invested $59.8 million in fiscal 2023 in energy-efficiency upgrades for customers' homes and businesses. NJNG recovered $26.3 million of its outstanding investments during fiscal 2023 through its energy efficiency rate.
Clean Energy Ventures (CEV)
CEV reported fiscal 2023 NFE of $44.5 million , compared with NFE of $39.4 million during fiscal 2022. Fourth-quarter fiscal 2023 NFE were $50.2 million , compared with NFE of $57.8 million during the same period in fiscal 2022. The increase in NFE for fiscal 2023 was due primarily to a reversal of a valuation allowance on certain deferred tax assets during June 2023, which was determined to be no longer required. The decrease in NFE for the fourth quarter of fiscal 2023 was largely due to lower SREC and electricity revenue for the period, partially offset by higher TREC revenue.
Solar Investment Update:
During fiscal 2023, CEV placed 10 commercial projects into service, adding approximately 78MW to total installed capacity, including two operational assets acquired in July 2023 totaling approximately 21MW.
As of September 30, 2023, CEV had approximately 469MW of solar capacity (including residential) in service in New Jersey , New York , Connecticut , Rhode Island , Indiana , and Michigan .
Storage and Transportation
Storage and Transportation reported fiscal 2023 NFE of $12.8 million , compared with NFE of $22.5 million during fiscal 2022. Fourth-quarter fiscal 2023 NFE were $1.8 million , compared with NFE of $11.3 million during the same period in fiscal 2022. NFE for both periods decreased due to increased depreciation and interest expense; resulting primarily from the southern portion of the Adelphia Gateway project, which was placed in service in September 2022.
Energy Services
Energy Services reported fiscal 2023 NFE of $68.5 million , compared with NFE of $39.1 million during fiscal 2022. Fourth-quarter fiscal 2023 net financial loss was $(3.5) million compared with net financial loss of $(3.4) million for the same period in fiscal 2022. The increase in fiscal 2023 NFE was due to higher natural gas price volatility during periods of colder than expected weather in December 2022 and February 2023 as compared to the prior year, allowing Energy Services to capture additional financial margin.
Home Services and Other Operations
Home Services and Other Operations reported fiscal 2023 NFE of $4.8 million , compared with a net financial loss of $(0.8) million during fiscal 2022. Fourth-quarter fiscal 2023 NFE were $3.5 million compared with a net financial loss of $(1.9) million for the same period in fiscal 2022. The increase in NFE for the quarter and year was due primarily to increased installation and service contract revenue.
Capital Expenditures and Cash Flows:
NJR is committed to maintaining a strong financial profile:
During fiscal 2023, capital expenditures were $537.3 million , including accruals, compared with $569.2 million , during fiscal 2022. The decrease in capital expenditures was primarily due to the completion of the southern portion of the Adelphia Gateway Pipeline project, which was placed into service in September 2022, as well as lower solar capital expenditures during the fiscal year. This was partially offset by an increase in capital expenditures at NJNG of $112.4 million , largely due to investments in customer growth and system integrity.
During fiscal 2023, cash flows from operations were $479.0 million , compared with cash flows from operations of $323.5 million during the same period of fiscal 2022. The increase in operating cash flows was due to increased earnings and decreased working capital requirements as a result of a lower gas prices when compared to the prior fiscal year.
Forward-Looking Statements:
This earnings release 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 Litigation Reform Act of 1995. NJR cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJR’s ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants. Words such as “anticipates,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “believes,” “should” and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management’s current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon NJR. There can be no assurance that future developments will be in accordance with management’s expectations, assumptions and beliefs or that the effect of future developments on NJR will be those anticipated by management. Forward-looking statements in this earnings release include, but are not limited to, certain statements regarding NJR’s NFEPS guidance for fiscal 2024, projected NFEPS growth rates, NFEPS Contributions, forecasted contribution of business segments to NJR’s NFE for fiscal 2024, customer growth at NJNG and their expected contributions, infrastructure programs and investments future decarbonization opportunities including IIP, the outcome or timing of future Base Rate Cases with the BPU, and other legal and regulatory expectations.
Additional information and factors that could cause actual results to differ materially from NJR’s expectations are contained in NJR’s filings with the SEC, including NJR’s Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC’s web site, http://www.sec.gov . Information included in this earnings release is representative as of today only and while NJR periodically reassesses material trends and uncertainties affecting NJR's results of operations and financial condition in connection with its preparation of management's discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, NJR does not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.
Non-GAAP Financial Information:
This earnings release includes the non-GAAP financial measures NFE/net financial loss, NFE per basic share, financial margin and utility gross margin. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. As an indicator of NJR’s operating performance, these measures should not be considered an alternative to, or more meaningful than, net income or operating revenues as determined in accordance with GAAP. This information has been provided pursuant to the requirements of SEC Regulation G.
NFE and financial margin exclude unrealized gains or losses on derivative instruments related to NJR’s unregulated subsidiaries and certain realized gains and losses on derivative instruments related to natural gas that has been placed into storage at Energy Services and certain transactions related to NJR's investments in the PennEast Project, net of applicable tax adjustments as described below. Financial margin also differs from gross margin as defined on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization as well as the effects of derivatives as discussed above. Volatility associated with the change in value of these financial instruments and physical commodity reported on the income statement in the current period. In order to manage its business, NJR views its results without the impacts of the unrealized gains and losses, and certain realized gains and losses, caused by changes in value of these financial instruments and physical commodity contracts prior to the completion of the planned transaction because it shows changes in value currently instead of when the planned transaction ultimately is settled. An annual estimated effective tax rate is calculated for NFE purposes and any necessary quarterly tax adjustment is applied to NJR Energy Services Company.
NJNG’s utility gross margin is defined as operating revenues less natural gas purchases, sales tax, and regulatory rider expense. This measure differs from gross margin as presented on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization. Utility gross margin may also not be comparable to the definition of gross margin used by others in the natural gas distribution business and other industries. Management believes that utility gross margin provides a meaningful basis for evaluating utility operations since natural gas costs, sales tax and regulatory rider expenses are included in operating revenues and passed through to customers and, therefore, have no effect on utility gross margin.
Management uses these non-GAAP financial measures as supplemental measures to other GAAP results to provide a more complete understanding of NJR’s performance. Management believes these non-GAAP financial measures are more reflective of NJR’s business model, provide transparency to investors and enable period-to-period comparability of financial performance. A reconciliation of all non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. For a full discussion of NJR’s non-GAAP financial measures, please see NJR’s most recent Report on Form 10-K, Item 7.
About New Jersey Resources
New Jersey Resources (NYSE: NJR) is a Fortune 1000 company that, through its subsidiaries, provides safe and reliable natural gas and clean energy services, including transportation, distribution, asset management and home services. NJR is composed of five primary businesses:
New Jersey Natural Gas, NJR’s principal subsidiary, operates and maintains natural gas transportation and distribution infrastructure to serve approximately 576,000 customers in New Jersey’s Monmouth , Ocean , Morris , Middlesex , Sussex and Burlington counties.
Clean Energy Ventures invests in, owns and operates solar projects with a total capacity of approximately 469 megawatts, providing residential and commercial customers with low-carbon solutions.
Energy Services manages a diversified portfolio of natural gas transportation and storage assets and provides physical natural gas services and customized energy solutions to its customers across North America .
Storage and Transportation serves customers from local distributors and producers to electric generators and wholesale marketers through its ownership of Leaf River and the Adelphia Gateway Pipeline, as well as our 50% equity ownership in the Steckman Ridge natural gas storage facility.
Home Services provides service contracts as well as heating, central air conditioning, water heaters, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey .
NJR and its over 1,300 employees are committed to helping customers save energy and money by promoting conservation and encouraging efficiency through Conserve to Preserve® and initiatives such as The SAVEGREEN Project® and The Sunlight Advantage®.
For more information about NJR:
www.njresources.com .
Follow us on X.com (Twitter) @NJNaturalGas .
facebook.com/NewJerseyNaturalGas .
NEW JERSEY RESOURCES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
Twelve Months Ended
September 30,
September 30,
(Thousands, except per share data)
2023
2022
2023
2022
OPERATING REVENUES
Utility
$
108,404
$
190,151
$
1,011,284
$
1,127,417
Nonutility
222,921
575,335
951,710
1,778,562
Total operating revenues
331,325
765,486
1,962,994
2,905,979
OPERATING EXPENSES
Gas purchases
Utility
34,998
112,463
416,158
547,901
Nonutility
87,228
413,521
555,579
1,393,656
Related parties
1,739
1,828
7,206
7,395
Operation and maintenance
100,759
118,723
373,568
361,866
Regulatory rider expenses
3,017
3,496
50,542
59,437
Depreciation and amortization
39,291
34,549
152,941
129,249
Total operating expenses
267,032
684,580
1,555,994
2,499,504
OPERATING INCOME
64,293
80,906
407,000
406,475
Other income, net
10,938
9,744
26,083
22,295
Interest expense, net of capitalized interest
33,143
26,016
123,014
85,830
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES
42,088
64,634
310,069
342,940
Income tax provision
6,216
12,144
49,275
76,195
Equity in earnings of affiliates
1,152
2,032
3,930
8,177
NET INCOME
$
37,024
$
54,522
$
264,724
$
274,922
EARNINGS PER COMMON SHARE
Basic
$
0.38
$
0.57
$
2.73
$
2.86
Diluted
$
0.38
$
0.56
$
2.71
$
2.85
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic
97,568
96,235
97,028
96,100
Diluted
98,192
96,630
97,627
96,488
RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES
(Unaudited)
Three Months Ended
Twelve Months Ended
September 30,
September 30,
(Thousands)
2023
2022
2023
2022
NEW JERSEY RESOURCES
A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:
Net income
$
37,024
$
54,522
$
264,724
$
274,922
Add:
Unrealized gain on derivative instruments and related transactions
(7,579
)
(1,846
)
(38,081
)
(59,906
)
Tax effect
1,800
439
9,050
14,248
Effects of economic hedging related to natural gas inventory
(2,186
)
(5,221
)
34,699
19,939
Tax effect
520
1,241
(8,246
)
(4,738
)
Gain on equity method investment
—
(1,500
)
(300
)
(5,521
)
Tax effect
(93
)
374
(19
)
1,377
NFE tax adjustment
77
(113
)
—
—
Net financial earnings
$
29,563
$
47,896
$
261,827
$
240,321
Weighted Average Shares Outstanding
Basic
97,568
96,235
97,028
96,100
Diluted
98,192
96,630
97,627
96,488
A reconciliation of basic earnings per share, the closest GAAP financial measure, to basic net financial earnings per share is as follows:
Basic earnings per share
$
0.38
$
0.57
$
2.73
$
2.86
Add:
Unrealized gain on derivative instruments and related transactions
$
(0.08
)
$
(0.02
)
$
(0.39
)
$
(0.62
)
Tax effect
$
0.02
$
0.01
$
0.09
$
0.15
Effects of economic hedging related to natural gas inventory
$
(0.02
)
$
(0.05
)
$
0.36
$
0.21
Tax effect
$
—
$
0.01
$
(0.09
)
$
(0.05
)
Gain on equity method investment
$
—
$
(0.02
)
$
—
$
(0.06
)
Tax effect
$
—
$
—
$
—
$
0.01
Basic net financial earnings per share
$
0.30
$
0.50
$
2.70
$
2.50
NATURAL GAS DISTRIBUTION
A reconciliation of gross margin, the closest GAAP financial measure, to utility gross margin is as follows:
Operating revenues
$
108,741
$
190,488
$
1,012,633
$
1,128,767
Less:
Natural gas purchases
37,323
114,791
425,457
557,232
Operating and maintenance (1)
31,605
30,805
115,292
93,164
Regulatory rider expense
3,017
3,496
50,542
59,437
Depreciation and amortization
26,292
24,391
102,326
94,579
Gross margin
10,504
17,005
319,016
324,355
Add:
Operating and maintenance (1)
31,605
30,805
115,292
93,164
Depreciation and amortization
26,292
24,391
102,326
94,579
Utility gross margin
$
68,401
$
72,201
$
536,634
$
512,098
(1) Excludes selling, general and administrative expenses of $28.7 million and $26.7 million for the three months ended September 30, 2023 and 2022, respectively, and $111.5 million and $102.8 million for the fiscal year ended September 30, 2023 and 2022, respectively.
RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (continued)
(Unaudited)
Three Months Ended
Twelve Months Ended
September 30,
September 30,
(Thousands)
2023
2022
2023
2022
ENERGY SERVICES
A reconciliation of gross margin, the closest GAAP financial measure, to Energy Services' financial margin is as follows:
Operating revenues
$
102,932
$
439,568
$
691,616
$
1,529,272
Less:
Natural Gas purchases
87,932
413,805
558,932
1,394,405
Operation and maintenance (1)
5,833
10,281
20,199
23,709
Depreciation and amortization
51
54
221
148
Gross margin
9,116
15,428
112,264
111,010
Add:
Operation and maintenance (1)
5,833
10,281
20,199
23,709
Depreciation and amortization
51
54
221
148
Unrealized (gain) loss on derivative instruments and related transactions
(8,559
)
1,671
(48,251
)
(60,000
)
Effects of economic hedging related to natural gas inventory
(2,186
)
(5,221
)
34,699
19,939
Financial margin
$
4,255
$
22,213
$
119,132
$
94,806
(1) Excludes selling, general and administrative expenses of $0.4 million and $14.3 million for the three months ended September 30, 2023 and 2022, respectively, and $(0.8) million and $15.4 million for the fiscal year ended September 30, 2023 and 2022, respectively.
A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:
Net income (loss)
$
4,577
$
(564
)
$
78,848
$
69,650
Add:
Unrealized (gain) loss on derivative instruments and related transactions
(8,559
)
1,671
(48,251
)
(60,000
)
Tax effect
2,034
(397
)
11,467
14,270
Effects of economic hedging related to natural gas
(2,186
)
(5,221
)
34,699
19,939
Tax effect
520
1,241
(8,246
)
(4,738
)
NFE tax adjustment
77
(113
)
—
—
Net financial (loss) earnings
$
(3,537
)
$
(3,383
)
$
68,517
$
39,121
FINANCIAL STATISTICS BY BUSINESS UNIT
(Unaudited)
Three Months Ended
Twelve Months Ended
September 30,
September 30,
(Thousands, except per share data)
2023
2022
2023
2022
NEW JERSEY RESOURCES
Operating Revenues
Natural Gas Distribution
$
108,741
$
190,488
$
1,012,633
$
1,128,767
Clean Energy Ventures
83,755
92,475
124,131
128,280
Energy Services
102,932
439,568
691,616
1,529,272
Storage and Transportation
22,933
25,860
92,859
67,735
Home Services and Other
14,969
14,789
57,638
56,182
Sub-total
333,330
763,180
1,978,877
2,910,236
Eliminations
(2,005
)
2,306
(15,883
)
(4,257
)
Total
$
331,325
$
765,486
$
1,962,994
$
2,905,979
Operating (Loss) Income
Natural Gas Distribution
$
(18,172
)
$
(9,721
)
$
207,528
$
218,973
Clean Energy Ventures
67,389
74,055
58,722
66,178
Energy Services
8,742
1,160
113,112
95,639
Storage and Transportation
5,901
12,867
32,425
22,163
Home Services and Other
595
(1,562
)
2,495
678
Sub-total
64,455
76,799
414,282
403,631
Eliminations
(162
)
4,107
(7,282
)
2,844
Total
$
64,293
$
80,906
$
407,000
$
406,475
Equity in Earnings of Affiliates
Storage and Transportation
$
863
$
2,279
$
3,126
$
9,865
Eliminations
289
(247
)
804
(1,688
)
Total
$
1,152
$
2,032
$
3,930
$
8,177
Net (Loss) Income
Natural Gas Distribution
$
(24,838
)
$
(16,387
)
$
131,414
$
140,124
Clean Energy Ventures
50,152
57,813
44,458
39,403
Energy Services
4,577
(564
)
78,848
69,650
Storage and Transportation
1,877
12,467
13,154
26,598
Home Services and Other
3,451
(1,894
)
4,758
(781
)
Sub-total
35,219
51,435
272,632
274,994
Eliminations
1,805
3,087
(7,908
)
(72
)
Total
$
37,024
$
54,522
$
264,724
$
274,922
Net Financial (Loss) Earnings
Natural Gas Distribution
$
(24,838
)
$
(16,387
)
$
131,414
$
140,124
Clean Energy Ventures
50,152
57,813
44,458
39,403
Energy Services
(3,537
)
(3,383
)
68,517
39,121
Storage and Transportation
1,784
11,341
12,835
22,454
Home Services and Other
3,451
(1,894
)
4,758
(781
)
Sub-total
27,012
47,490
261,982
240,321
Eliminations
2,551
406
(155
)
—
Total
$
29,563
$
47,896
$
261,827
$
240,321
Throughput (Bcf)
NJNG, Core Customers
17.4
21.0
93.4
99.6
NJNG, Off System/Capacity Management
20.6
25.8
72.6
95.2
Energy Services Fuel Mgmt. and Wholesale Sales
41.4
50.2
150.4
231.1
Total
79.4
97.0
316.4
425.9
Common Stock Data
Yield at September 30,
4.1
%
4.0
%
4.1
%
4.0
%
Market Price at September 30,
$
40.63
$
38.70
$
40.63
$
38.70
Shares Out. at September 30,
97,584
96,250
97,584
96,250
Market Cap. at September 30,
$
3,964,856
$
3,724,870
$
3,964,856
$
3,724,870
Three Months Ended
Twelve Months Ended
(Unaudited)
September 30,
September 30,
(Thousands, except customer and weather data)
2023
2022
2023
2022
NATURAL GAS DISTRIBUTION
Utility Gross Margin
Operating revenues
$
108,741
$
190,488
$
1,012,633
$
1,128,767
Less:
Natural gas purchases
37,323
114,791
425,457
557,232
Operating and maintenance (1)
31,605
30,805
115,292
93,164
Regulatory rider expense
3,017
3,496
50,542
59,437
Depreciation and amortization
26,292
24,391
102,326
94,579
Gross margin
10,504
17,005
319,016
324,355
Add:
Operating and maintenance (1)
31,605
30,805
115,292
93,164
Depreciation and amortization
26,292
24,391
102,326
94,579
Total Utility Gross Margin
$
68,401
$
72,201
$
536,634
$
512,098
(1) Excludes selling, general and administrative expenses of $28.7 million and $26.7 million for the three months ended September 30, 2023 and 2022, respectively, and $111.5 million and $102.8 million for the fiscal year ended September 30, 2023 and 2022, respectively.
Utility Gross Margin, Operating Income and Net Income
Residential
$
39,121
$
37,451
$
360,138
$
341,167
Commercial, Industrial & Other
10,808
13,020
76,550
77,629
Firm Transportation
14,611
12,832
76,114
69,933
Total Firm Margin
64,540
63,303
512,802
488,729
Interruptible
1,240
1,362
3,812
3,782
Total System Margin
65,780
64,665
516,614
492,511
Off System/Capacity Management/FRM/Storage Incentive
2,621
7,536
20,020
19,587
Total Utility Gross Margin
68,401
72,201
536,634
512,098
Operation and maintenance expense
60,281
57,531
226,780
198,546
Depreciation and amortization
26,292
24,391
102,326
94,579
Operating (Loss) Income
$
(18,172
)
$
(9,721
)
$
207,528
$
218,973
Net (Loss) Income
$
(24,838
)
$
(16,387
)
$
131,414
$
140,124
Net Financial (Loss) Earnings
$
(24,838
)
$
(16,387
)
$
131,414
$
140,124
Throughput (Bcf)
Residential
3.4
3.2
43.4
45.5
Commercial, Industrial & Other
0.4
0.8
8.4
8.7
Firm Transportation
1.1
1.5
12.1
13.0
Total Firm Throughput
4.9
5.5
63.9
67.2
Interruptible
12.5
15.5
29.5
32.4
Total System Throughput
17.4
21.0
93.4
99.6
Off System/Capacity Management
20.6
25.8
72.6
95.2
Total Throughput
38.0
46.8
166.0
194.8
Customers
Residential
520,682
512,264
520,682
512,264
Commercial, Industrial & Other
31,725
31,227
31,725
31,227
Firm Transportation
23,490
25,713
23,490
25,713
Total Firm Customers
575,897
569,204
575,897
569,204
Interruptible
83
88
83
88
Total System Customers
575,980
569,292
575,980
569,292
Off System/Capacity Management*
20
8
20
8
Total Customers
576,000
569,300
576,000
569,300
*The number of customers represents those active during the last month of the period.
Degree Days
Actual
28
33
3,897
4,130
Normal
24
27
4,498
4,504
Percent of Normal
116.7
%
122.2
%
86.6
%
91.7
%
Three Months Ended
Twelve Months Ended
(Unaudited)
September 30,
September 30,
(Thousands, except customer, RECs and megawatt)
2023
2022
2023
2022
CLEAN ENERGY VENTURES
Operating Revenues
SREC sales
$
69,455
$
76,637
$
79,762
$
84,476
TREC sales
4,629
1,913
12,636
5,487
Solar electricity sales and other
6,608
10,967
19,782
26,806
Sunlight Advantage
3,063
2,958
11,951
11,511
Total Operating Revenues
$
83,755
$
92,475
$
124,131
$
128,280
Depreciation and Amortization
$
6,607
$
5,494
$
25,320
$
21,396
Operating Income
$
67,389
$
74,055
$
58,722
$
66,178
Income Tax (Benefit) Provision
$
15,396
$
16,885
$
(7,683
)
$
11,361
Net Income
$
50,152
$
57,813
$
44,458
$
39,403
Net Financial Earnings
$
50,152
$
57,813
$
44,458
$
39,403
Solar Renewable Energy Certificates Generated
129,286
146,772
422,039
425,453
Solar Renewable Energy Certificates Sold
345,035
378,532
393,906
417,305
Transition Renewable Energy Certificates Generated
28,507
13,443
80,520
38,914
Solar Renewable Energy Certificates II Generated
4,457
—
10,260
—
Solar Megawatts Under Construction
5.6
63.1
5.6
63.1
ENERGY SERVICES
Operating Income
Operating revenues
$
102,932
$
439,568
$
691,616
$
1,529,272
Less:
Gas purchases
87,932
413,805
558,932
1,394,405
Operation and maintenance expense
6,207
24,549
19,351
39,080
Depreciation and amortization
51
54
221
148
Operating Income
$
8,742
$
1,160
$
113,112
$
95,639
Net Income (Loss)
$
4,577
$
(564
)
$
78,848
$
69,650
Financial Margin
$
4,255
$
22,213
$
119,132
$
94,806
Net Financial (Loss) Earnings
$
(3,537
)
$
(3,383
)
$
68,517
$
39,121
Gas Sold and Managed (Bcf)
41.4
50.2
150.4
231.1
STORAGE AND TRANSPORTATION
Operating Revenues
$
22,933
$
25,860
$
92,859
$
67,735
Equity in Earnings of Affiliates
$
863
$
2,279
$
3,126
$
9,865
Operation and Maintenance Expense
$
10,697
$
8,044
$
34,648
$
30,568
Other Income, Net
$
2,021
$
1,405
$
6,850
$
8,546
Interest Expense
$
6,538
$
4,937
$
25,803
$
12,097
Income Tax Provision (Benefit)
$
370
$
(853
)
$
3,444
$
1,879
Net Income
$
1,877
$
12,467
$
13,154
$
26,598
Net Financial Earnings
$
1,784
$
11,341
$
12,835
$
22,454
HOME SERVICES AND OTHER
Operating Revenues
$
14,969
$
14,789
$
57,638
$
56,182
Operating Income (Loss)
$
595
$
(1,562
)
$
2,495
$
678
Net Income (Loss)
$
3,451
$
(1,894
)
$
4,758
$
(781
)
Net Financial Earnings (Loss)
$
3,451
$
(1,894
)
$
4,758
$
(781
)
Total Service Contract Customers at Sep 30
101,499
103,123
101,499
103,123
View source version on businesswire.com: https://www.businesswire.com/news/home/20231120129363/en/
Media:
mkinney@njresources.com
Investor:
aprior@njresources.com
Source: New Jersey Resources Corporation
What is the fiscal 2023 net income of New Jersey Resources Corporation (NJR)?
The fiscal 2023 net income of New Jersey Resources Corporation (NJR) was $264.7 million.
What is the increased fiscal 2024 dividend per share for New Jersey Resources Corporation (NJR)?
The increased fiscal 2024 dividend per share for New Jersey Resources Corporation (NJR) is 7.7% to $1.68.
What is the fiscal 2024 net financial earnings per share (NFEPS) guidance range for New Jersey Resources Corporation (NJR)?
The fiscal 2024 net financial earnings per share (NFEPS) guidance range for New Jersey Resources Corporation (NJR) is $2.70 to $2.85.
