Core Viewpoint - New Jersey Resources (NJR) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings outlook, which is crucial for predicting near-term stock price movements [2][4]. - The correlation between earnings estimate revisions and stock price movements is strong, with institutional investors using these estimates to determine fair value [4]. Company Performance Indicators - New Jersey Resources is projected to earn $3.14 per share for the fiscal year ending September 2025, reflecting a year-over-year increase of 7.2% [8]. - Over the past three months, the Zacks Consensus Estimate for New Jersey Resources has risen by 1.6% [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade to Zacks Rank 2 places New Jersey Resources in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10].

Group 1 - South Jersey Industries was publicly traded until February 2023 when it was taken private by JP Morgan's Infrastructure Investments Fund [1] - The company had been a favorite holding for many years among certain investors [1] - The financial markets are considered efficient, with most stocks reflecting their real current value, suggesting that less-followed stocks may present better profit opportunities [1] Group 2 - The article expresses personal opinions and does not provide any recommendations or advice regarding investment suitability [2][3] - There is no current stock, option, or similar derivative position in any of the companies mentioned, but there may be plans to initiate a long position in NJR within the next 72 hours [2]

Company Overview - New Jersey Resources (NJR) is a notable stock within the Utilities sector, which consists of 104 individual stocks and ranks 3 in the Zacks Sector Rank [2] - NJR currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings outlooks [3] Performance Analysis - Over the past 90 days, the Zacks Consensus Estimate for NJR's full-year earnings has increased by 3.1%, reflecting improved analyst sentiment [4] - Year-to-date, NJR has returned approximately 3.5%, outperforming the average return of 2.5% for Utilities companies [4] - NJR belongs to the Utility - Gas Distribution industry, which ranks 27 in the Zacks Industry Rank, while this industry has seen an average loss of 5.8% year-to-date, further highlighting NJR's strong performance [6] Comparison with Peers - Another outperforming stock in the Utilities sector is OGE Energy (OGE), which has returned 8.2% year-to-date and also holds a Zacks Rank of 2 (Buy) [5] - OGE Energy is part of the Utility - Electric Power industry, currently ranked 82, which has seen a year-to-date increase of 2.7% [6] Investment Outlook - Both New Jersey Resources and OGE Energy are positioned for continued solid performance, making them attractive options for investors interested in Utilities stocks [7]

Financial Performance - Total operating revenues increased to $488,361,000 in Q4 2024 from $467,210,000 in Q4 2023, representing a growth of 2.45%[16] - Operating income rose to $189,577,000 in Q4 2024, up from $135,819,000 in Q4 2023, marking an increase of 39.5%[16] - Net income for Q4 2024 was $131,319,000, compared to $89,411,000 in Q4 2023, reflecting a significant increase of 46.8%[16] - Basic earnings per share improved to $1.32 in Q4 2024 from $0.91 in Q4 2023, an increase of 45.1%[16] - The company reported comprehensive income of $131,387,000 for Q4 2024, compared to $89,806,000 in Q4 2023, an increase of 46.2%[17] - Consolidated net income for the three months ended December 31, 2024, was $131.3 million, a 47% increase from $89.4 million in the same period of 2023[191] - NJNG reported net income of $66.9 million, representing a 30% increase from $51.4 million year-over-year[191] - CEV's net income increased to $48.1 million from $10.5 million, reflecting a significant growth driven by the sale of its residential solar asset portfolio[191] Cash Flow and Assets - Cash flows used in operating activities were $(8,955,000) in Q4 2024, a decrease from $46,415,000 in Q4 2023[20] - Total assets increased to $7,193,965,000 as of December 31, 2024, compared to $6,981,645,000 as of September 30, 2024, showing a growth of 3.03%[22] - The company’s cash and cash equivalents at the end of Q4 2024 were $2,563,000, down from $3,429,000 at the end of Q4 2023[20] - The total cash and cash equivalents as of December 31, 2024, amount to $1,908 million, an increase from $1,017 million as of September 30, 2024[49] - Total assets as of December 31, 2024, reached $7.19 billion, up approximately $212.3 million from $6.98 billion as of September 30, 2024[193] Liabilities and Debt - Long-term debt rose to $2,989,473,000 in Q4 2024 from $2,879,464,000 in Q3 2024, an increase of 3.84%[24] - Total current liabilities decreased to $818,665,000 in Q4 2024 from $887,774,000 in Q3 2024, a reduction of 7.77%[24] - NJNG's bank revolving credit facility had an outstanding balance of $143,900,000 as of December 31, 2024, with a weighted average interest rate of 4.67%[127] - The estimated fair value of long-term debt as of December 31, 2024, was $2,391,501,000, compared to a carrying value of $2,767,845,000[114] Revenue Streams - Revenues from natural gas utility sales increased to $296.402 million in 2024, up from $257.875 million in 2023, representing a growth of 14.9%[74] - Total revenues from residential customers increased to $241.473 million in 2024, compared to $213.812 million in 2023, marking an increase of 12.9%[78] - The company recognized $4.9 million and $9.5 million of operating revenue related to pipeline capacity agreements during the three months ended December 31, 2024, and 2023, respectively[45] - The company recognizes revenue from natural gas sales based on regulated tariff rates, with revenues recognized in the period natural gas is delivered and consumed[70] - CEV's commercial solar projects recognize revenue as electricity is generated and transferred to customers, with payments due monthly for the previous month's services[72] Capital Expenditures and Investments - Capital expenditures for the three months ended December 31, 2024, totaled $151.9 million, up from $114.6 million in the same period of 2023, reflecting an increase of approximately 32.5%[167] - The company has long-term contracts for natural gas supply, transportation, and storage with annual fixed charges of approximately $187.8M[154] - NJNG's capital expenditures for the three months ended December 31, 2024, are significant, focusing on customer growth and pipeline integrity management[210] Regulatory and Compliance - The BPU approved the SAVEGREEN program with a total investment of $385.6M, expected to increase annual recoveries by approximately $12.3M starting January 1, 2025[89] - A $157.0M increase to base rates was approved, effective November 21, 2024, with an overall rate of return on rate base of 7.08% and return on common equity of 9.60%[89] - NJNG filed a petition to issue up to $700M in Medium Term Notes over three years[89] - NJNG filed a base rate case requesting a natural gas revenue increase of approximately $222.6M, with a proposed overall rate of return on rate base of 7.57% and return on common equity of 10.42%[209] Environmental and Remediation Efforts - NJNG recorded a remediation liability of approximately $161.0 million related to former Manufactured Gas Plant sites, with estimated future expenditures ranging from $130.9 million to $194.6 million[161] - The company is involved in ongoing environmental remediation efforts with estimated future costs that may impact financial performance, pending regulatory determinations[160] Customer and Market Dynamics - NJNG's operations are influenced by seasonal demand, with most revenues generated during the winter months when natural gas is primarily used for heating[205] - NJNG's customer growth is influenced by political and regulatory policies, the delivered cost of natural gas, interest rates, and general economic conditions[215]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported NFEPS of $1.29 per share, an increase from $0.74 per share in the same period last year [21] - The fiscal 2025 NFEPS guidance is set between $3.05 and $3.20 per share, exceeding the long-term growth rate of 7% to 9% [14][29] Business Line Data and Key Metrics Changes - New Jersey Natural Gas achieved a rate base of $3.2 billion after implementing new rates, recovering $850 million in investments [11] - Clean Energy Ventures placed approximately 11 megawatts of commercial solar projects into service and has an additional 63 megawatts under construction [17] - The Storage and Transportation business continues to deliver stable returns through fee-based revenues, with ongoing projects at Leaf River and Adelphia Gateway [19] Market Data and Key Metrics Changes - The company is well-positioned to capitalize on emerging growth opportunities across its diversified portfolio, particularly in energy efficiency and renewable energy [13][29] - The company anticipates cash flow from operations to be between $460 million and $500 million in fiscal 2025, supporting capital plans and dividends [24] Company Strategy and Development Direction - The company is focused on disciplined capital allocation and enhancing utility infrastructure, with planned capital expenditures ranging from $1.3 billion to $1.6 billion for fiscal 2025 and 2026 [23] - The company emphasizes its commitment to sustainability and decarbonization initiatives, including investments in energy efficiency and carbon capture technology [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operating performance across all business segments and the ability to navigate current opportunities [15][30] - The company is monitoring the winter season closely, which is critical for its financial outlook [15] Other Important Information - The SAVEGREEN energy efficiency program, valued at $386 million, is the largest in New Jersey's history and operates separately from the base rate case [11][68] - The company maintains a strong balance sheet and liquidity position, with an adjusted funds from operations to adjusted debt ratio projected between 18% and 20% for fiscal 2025 [24] Q&A Session Summary Question: How is the guidance for 2025 trending? - Management confirmed that they are well within the guidance range of $3.05 to $3.20 per share [38][40] Question: What is driving growth in Clean Energy Ventures? - The company has diversified its portfolio and is focusing on jurisdictions supportive of solar energy, with a robust project pipeline [42][43] Question: Any updates on the Adelphia rate case? - Management expects the rate case to proceed and be settled sometime in 2025, with no significant updates at this time [53] Question: What is the regulatory treatment of the SAVEGREEN program? - The SAVEGREEN spend is not included in the base rate case filings and operates on a near real-time recovery basis [68] Question: Will tariffs impact equipment needs for capital investments? - Management does not expect significant impacts from tariffs on equipment or supplies for utility operations [72][73]

February 2025 Investor Presentation Fiscal 2025 First Quarter Financial Results Forward-Looking Statements and Non-GAAP Measures Forward-Looking Statements This presentation includes the non-GAAP financial measures NFE/net financial loss, NFE per basic share, financial margin, utility gross margin, adjusted funds from operations and adjusted debt. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be fo ...

Financial Performance - Fiscal 2025 first-quarter consolidated net income was $131.3 million, or $1.32 per share, compared to $89.4 million, or $0.91 per share, in the same period of fiscal 2024, representing a 47% increase in net income [3]. - Consolidated net financial earnings (NFE) for the first quarter were $128.9 million, or $1.29 per share, up from $72.4 million, or $0.74 per share, in the prior year, reflecting a 78% increase [4]. - Total operating revenues for Q1 2025 were $488.361 million, an increase of 4.9% from $467.210 million in Q1 2024 [27]. - Net income for Q1 2025 was $131.319 million, up 47% from $89.411 million in Q1 2024 [27]. - Basic earnings per share increased to $1.32 in Q1 2025, compared to $0.91 in Q1 2024, reflecting a 45.1% growth [27]. - Total operating expenses decreased to $298.784 million in Q1 2025 from $331.391 million in Q1 2024, a reduction of 9.8% [27]. Segment Performance - New Jersey Natural Gas (NJNG) reported NFE of $66.9 million for the first quarter, compared to $51.4 million in fiscal 2024, driven by a base rate increase of $157.0 million effective November 21, 2024 [8]. - Clean Energy Ventures (CEV) achieved NFE of $48.1 million, significantly up from $10.5 million in the same quarter last year, primarily due to a gain on the sale of its residential solar portfolio [11]. - Energy Services experienced a decline in operating revenues to $86.308 million, down 13.5% from $99.668 million in Q1 2024 [33]. - Clean Energy Ventures reported total operating revenues of $26,406,000, down from $35,295,000, a decrease of 25.1% [40]. - Storage and Transportation operating revenues increased to $26,628,000, up from $23,862,000, reflecting a growth of 11.7% [42]. - Home Services and Other segment reported operating revenues of $15,794,000, an increase from $14,834,000, representing a growth of 6.5% [43]. Customer and Market Growth - The company expects to add approximately 3,000 new customers in the first quarter, contributing an estimated $2.0 million in incremental utility gross margin annually [9]. - Total customers reached 586,092, up from 579,600, indicating a growth of 1.9% [38]. Capital Expenditures and Investments - Capital expenditures for the first quarter totaled $149.6 million, an increase from $118.1 million in the same period last year, primarily due to higher spending at NJNG [16]. - NJNG's Infrastructure Investment Program (IIP) includes a five-year, $150 million investment to enhance the safety and reliability of its natural gas distribution system [9]. - The SAVEGREEN® energy efficiency program received approval for a new $385.6 million initiative, the largest in NJNG's history, effective January 1, 2025 [10]. Guidance and Projections - NJR maintained its fiscal 2025 NFE per share guidance range of $3.05 to $3.20, which is higher than the long-term growth target of 7 to 9% [6]. - NJR's expected NFE contributions for fiscal 2025 are projected as follows: NJNG 67-73%, CEV 20-25%, Storage and Transportation 3-7%, Energy Services 4-7%, and Home Services and Other 0-1% [7]. Operational Metrics - Utility operating revenues rose to $333.427 million, a 13.8% increase from $293.093 million in the same period last year [27]. - The gross margin for natural gas distribution was $181.284 million, up from $155.797 million, representing a 16.4% increase [32]. - Total System Throughput increased to 27.2 Bcf from 23.4 Bcf, a rise of 16.3% year-over-year [38]. - Operating Income for Clean Energy Ventures surged to $64,274,000, compared to $18,323,000 in Q1 2024, indicating a substantial increase of 251.5% [40].

Investors might want to bet on New Jersey Resources (NJR) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Si ...

Domestic-focused, capital-intensive companies in the Zacks Utilities sector continue to perform steadily, as the demand for utility services hardly fluctuates with the vagaries of the economy. Cost management initiatives, new electric, water and natural gas rates and customer growth continue to help the utility sector maintain operational stability.Utility operation is capital intensive, as consistent investment is required to upgrade, maintain and replace older wires and electric poles, replace old pipelin ...

FanDuel Casino teams up with the South Jersey Transportation Authority's Atlantic City Expressway Pleasantville Toll Plaza, Port Authority of New York and New Jersey's PATH Commuter Rail Systemwide and PA SEPTA Broad Street [B] Line to offer one day of free tolls and rides in New Jersey and Pennsylvania.JERSEY CITY, N.J., Dec. 5, 2024 /PRNewswire/ -- Today, FanDuel Group, the premier online gaming company in North America, announced the South Jersey Transportation Authority's Atlantic City Expressway Pleasa ...