New Jersey Resources (NJR) Q4 2023 earnings summary

Executive summary

• Fiscal 2023 net financial earnings (NFE) were $261.8M, or $2.70/share, versus $240.3M, or $2.50/share, in fiscal 2022; reported net income was $264.7M versus $274.9M.

• Long-term growth rate of 7–9% achieved; quarterly dividend increased 7.7% to $1.68/share, marking the 28th consecutive year of dividend growth.

Financial highlights

• Operating revenues totaled $1.963B versus $2.906B; operating income was $407.0M versus $406.5M, and GAAP net income was $264.7M versus $274.9M.

• NFE rose to $261.8M from $240.3M; NFE/share increased to $2.70 from $2.50. Adjusted to exclude derivative timing effects and certain equity-investment items.

• Operating cash flow increased to $479.0M from $323.5M, primarily on lower working-capital needs as natural gas prices declined.

• Consolidated assets increased to $6.54B from $6.26B, led by utility plant and solar investments; lower ES receivables, gas inventory and broker margin partly offset growth.

Outlook and guidance

• Expected annual NJNG customer growth of ~1.9%, representing ~$8.5M of annual Utility Gross Margin under its current CIP tariff.

• Fiscal 2024 capital expenditure estimates: NJNG $387M–$440M; CEV solar projects $140M–$204M; Adelphia $8M–$12M; Leaf River $25M–$35M.

• CEV identified ~750 MW of potential solar investment options; pipeline projects are under construction, contract or exclusivity, with timing subject to execution and market risks.

• Existing borrowing availability, equity proceeds and operating cash flows expected to cover working capital, capex and dividends for at least 12 months.