New Jersey Resources(NJR) - 2025 Q1 - Earnings Call Transcript

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$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]