New Jersey Resources (NJR) Q3 2024 earnings summary

Executive summary

• Reported consolidated net loss of $11.6 million for Q3 FY2024, compared to net income of $1.5 million in Q3 FY2023; year-to-date net income was $198.6 million, down from $227.7 million for the same period last year.

• Fiscal 2024 NFEPS guidance reaffirmed at $2.85–$3.00, reflecting a $0.15 increase announced in February 2024 and an 18.4% increase from the midpoint of FY2023 initial guidance.

• Energy Services contributed a higher-than-normal share to NFEPS due to strong asset management agreements and January 2024 outperformance.

• NJNG filed a $219.6M base rate case with a proposed $3.4B rate base; SAVEGREEN reached 100,000 customers.

• CEV increased capacity by ~8MW YTD, with a project pipeline of ~873MW and 477MW in service.

Financial highlights

• Q3 FY2024 net loss was $11.6M ($0.12/share), with NFE of $(8.9)M ($0.09/share); year-to-date net income was $198.6M ($2.02/share), and NFEPS was $2.05, both down year-over-year.

• Operating revenues for Q3 FY2024 were $275.6M, up from $264.1M in Q3 FY2023; year-to-date revenues were $1.40B, down from $1.63B.

• NJNG utility gross margin YTD was $477.2M, up from $468.2M YTD 2023.

• Cash flows from operations for the first nine months were $362.9M, down from $387.9M year-over-year.

• Capital expenditures for the first nine months were $396.5M, primarily at NJNG.

Outlook and guidance

• Fiscal 2024 NFEPS guidance reaffirmed at $2.85–$3.00, with Energy Services expected to contribute a higher percentage due to asset management agreements.

• Long-term NFEPS growth rate projected at 7–9% annually, with expected shareholder returns of 11–13%.

• Dividend per share increased 7.7% to $1.68, with a 7.4% CAGR and a 28-year track record of annual increases.

• Management expects existing liquidity and cash flows to meet capital and dividend needs for at least the next 12 months.