New Jersey Resources (NJR) Q4 2021 earnings summary

Executive summary

• Fiscal 2021 NFE was $207.7 million, or $2.16/share, versus $165.3 million, or $1.74/share, in FY2020; results exceeded initial guidance midpoint by 35%.

• GAAP net income fell to $117.9 million from $163.0 million, primarily reflecting a $92.0 million PennEast impairment, partly offset by stronger Energy Services earnings.

• Strategy centered on regulated and unregulated infrastructure investment, solar expansion, more predictable earnings and clean-energy technology; a 9% dividend increase marked the 26th consecutive annual increase.

Financial highlights

• Operating revenue was $2.157 billion versus $1.954 billion; operating income was $288.4 million versus $228.9 million in FY2020.

• Net income was $117.9 million versus $163.0 million; diluted EPS was $1.22 versus $1.71.

• Operating cash flow rose to $391.0 million from $213.5 million, primarily on increased Energy Services earnings; investing cash outflow was $622.1 million and financing cash outflow was $117.8 million.

Outlook and guidance

• Expected 28,000–30,000 new utility customers over FY2022–FY2024, estimated to add ~$6.2 million in annual utility gross margin under the current tariff.

• Pipeline capacity asset-management agreements are expected to yield ~$260 million cash in FY2022–FY2024, then $34 million annually in FY2025–FY2031.

• Estimated FY2022 solar projects placed in service: $235 million–$301 million; FY2022 Adelphia Gateway spending expected at $90 million–$110 million.

• Adelphia Gateway was expected to be fully in service by end-FY2022; several facilities were expected to enter commercial service by year-end 2021.