New Jersey Resources (NJR) Q4 2014 earnings summary

Executive summary

• FY2014 net income was $142.0 million, up from $114.8 million; adjusted net financial earnings (NFE) rose to $176.9 million from $113.7 million.

• Extreme cold weather increased natural gas demand and market volatility, benefiting Energy Services; Clean Energy Ventures also grew on solar tax credits and a project-related credit support payment.

Financial highlights

• Operating revenue was $3.738 billion versus $3.198 billion; operating income was $201.2 million versus $159.2 million.

• Net income was $142.0 million versus $114.8 million; diluted EPS was $3.34 versus $2.75.

• Adjusted NFE was $176.9 million, or $4.20 per diluted share, versus $113.7 million, or $2.72 per diluted share.

• Operating cash flow was $356.8 million versus $114.0 million; investing cash outflow was $282.6 million versus $193.6 million.

Outlook and guidance

• NJNG expects 15,000–17,000 new customers in FY2015–16; estimated annual utility gross margin contribution is $4.1 million under the CIP tariff.

• NJNG projected capital expenditures of $182.3 million in FY2015 and $233.7 million in FY2016; a base rate case is due by November 15, 2015.

• Clean Energy Ventures estimated FY2015 solar capital expenditures of $100 million–$110 million and wind expenditures of $90 million–$110 million.

• NJRES expected no significant capital expenditures in FY2015–16; future results depend on market volatility, counterparties, liquidity and storage/transportation arbitrage opportunities.