New Jersey Resources (NJR) Q4 2022 earnings summary

Executive summary

• FY2022 net financial earnings (NFE) were $240.3 million, or $2.50/share, versus $207.7 million, or $2.16/share, in FY2021; GAAP net income was $274.9 million versus $117.9 million.

• Dividend increased 7.6% to an annual rate of $1.56/share, marking 27 consecutive years of growth.

Financial highlights

• Operating revenues rose to $2.906 billion from $2.157 billion; operating income increased to $406.5 million from $288.4 million.

• GAAP diluted EPS was $2.85 versus $1.22; basic NFE/share was $2.50 versus $2.16.

• Operating cash flow was $323.5 million versus $391.0 million; investing cash outflow was $590.6 million versus $622.1 million.

• Net income rose $157.0 million YoY, reflecting higher utility and clean-energy earnings, AMA revenue, and the non-recurrence of the prior-year PennEast impairment.

Outlook and guidance

• FY2023 NJNG capital expenditures projected at $352 million-$378 million, versus $282.2 million spent or accrued in FY2022.

• FY2023 solar-related capital expenditures estimated at $100 million-$200 million; Adelphia Gateway spending expected at $12 million-$16 million and Leaf River at $8 million-$12 million.

• NJNG expects customer growth of ~1.6% annually; additions and conversions are expected to add $7.7 million of annual Utility Gross Margin under its CIP tariff.

• Liquidity, equity proceeds and operating cash flows expected to cover working capital, capital expenditures and dividends for at least the next 12 months.