New Jersey Resources (NJR) Q4 2017 earnings summary

Executive summary

• FY2017 net financial earnings (NFE) rose to $149.4M from $138.1M; basic NFE/share reached $1.73 from $1.61, meeting guidance. Shareowner total return was 31.7%.

• Regulated gas distribution led earnings growth, supported by base-rate increases and customer additions; midstream earnings also increased, while clean energy and energy services NFE declined.

Financial highlights

• Revenue was $2.269B versus $1.881B; GAAP net income was $132.1M versus $131.7M, while operating income was $167.0M versus $167.5M.

• Adjusted for derivative and gas-inventory hedge timing, NFE was $149.4M versus $138.1M; basic NFE/share was $1.73 versus $1.61.

• Operating cash flow increased to $248.0M from $142.6M; investing cash outflow was $390.7M, and financing cash inflow was $107.3M.

• Board-approved annual dividend rate rose 6.9% to $1.09/share; the 2017 declared dividend was $1.0375/share.

Outlook and guidance

• Long-term objectives remain annual NFE growth of 5%–9% and dividend growth of 6%–8%.

• Natural Gas Distribution expects 26,000–28,000 customer additions over FY2018–FY2020 and ~1.7% annual customer growth through FY2019.

• Projected capital expenditures include $399.8M for Natural Gas Distribution in FY2018 and $235M in FY2019; Clean Energy Ventures expects $132M–$140M in FY2018 solar spending.