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New Jersey Resources Reports First-Quarter Fiscal 2022 Results

Today, New Jersey Resources Corporation (NYSE: NJR) reported results for the first-quarter of fiscal 2022. Highlights include:

  • Consolidated net income of $111.3 million for the three months ended December 31, 2021, compared with $81.0 million for the same period last year
  • Consolidated net financial earnings (NFE), a non-GAAP financial measure, of $65.8 million, or $0.69 per share for the three months ended December 31, 2021, compared with NFE of $44.7 million, or $0.46 per share, for the same period last year
  • Re-affirmed fiscal 2022 net financial earnings per share (NFEPS) guidance range of $2.20 to $2.30
  • New Jersey Natural Gas (NJNG) received approval from the New Jersey Board of Public Utilities (BPU) on the settlement of its rate case, authorizing a $79.3 million increase to its base rates with new rates effective on December 1, 2021
  • NJNG's Hydrogen project was completed and began producing green hydrogen in October 2021 and was included in the settlement of the base rate case
  • A new North Zone delivery point for Adelphia Gateway began operations in January 2022
  • Asset Management Agreements (AMAs)* at Energy Services became effective during the first-quarter

First-quarter fiscal 2022 net income totaled $111.3 million, or $1.16 per share, compared with $81.0 million, or $0.84 per share, during the same period in fiscal 2021. First-quarter fiscal 2022 NFE totaled $65.8 million, or $0.69 per share, compared to NFE of $44.7 million, or $0.46 per share, during the same period in fiscal 2021.

“NJR is off to good start in fiscal 2022 with new base rates at NJNG and more stable fee-based revenue at Energy Services,” said Steve Westhoven, President and CEO of NJR. “We are confident in our ability to achieve our fiscal 2022 net financial earnings guidance.”

Key Performance Metrics

 

Three Months Ended

 

December 31,

($ in Thousands)

2021

 

2020

Net income

$

111,312

 

$

81,045

Basic EPS

$

1.16

 

$

0.84

Net financial earnings

$

65,770

 

$

44,657

Basic net financial earnings per share

$

0.69

 

$

0.46

*On December 16, 2020, Energy Services entered into a series of Asset Management Agreements (AMAs) with an investment grade public utility, under which the utility is obligated to purchase and Energy Services may deliver natural gas in exchange for aggregate contracted fees of approximately $500.0 million payable in cash to Energy Services over 10 years. The AMAs include a series of initial and permanent releases that commenced in November 2021.

A reconciliation of net income to NFE for the three months ended December 31, 2021 and 2020, is provided below.

 

Three Months Ended

 

December 31,

(Thousands)

2021

 

2020

Net income

$

111,312

 

 

$

81,045

 

Add:

 

 

 

Unrealized (gain) on derivative instruments and related transactions

 

(82,191

)

 

 

(37,491

)

Tax effect

 

19,536

 

 

 

8,913

 

Effects of economic hedging related to natural gas inventory

 

23,577

 

 

 

(7,532

)

Tax effect

 

(5,603

)

 

 

1,790

 

Net income to NFE tax adjustment

 

(861

)

 

 

(2,068

)

Net financial earnings

$

65,770

 

 

$

44,657

 

 

 

 

 

Weighted Average Shares Outstanding

 

 

 

Basic

 

95,944

 

 

 

96,114

 

Diluted

 

96,356

 

 

 

96,415

 

 

 

 

 

Basic earnings per share

$

1.16

 

 

$

0.84

 

Add:

 

 

 

Unrealized (gain) on derivative instruments and related transactions

 

(0.86

)

 

 

(0.39

)

Tax effect

 

0.21

 

 

 

0.09

 

Effects of economic hedging related to natural gas inventory

 

0.25

 

 

 

(0.08

)

Tax effect

 

(0.06

)

 

 

0.02

 

Net income to NFE tax adjustment

 

(0.01

)

 

 

(0.02

)

Basic net financial earnings per share

$

0.69

 

 

$

0.46

 

NFE is a measure of earnings based on the elimination of timing differences to effectively match the earnings effects of the economic hedges with the physical sale of natural gas, SRECs and foreign currency contracts. Consequently, to reconcile net income and NFE, current-period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item. Realized derivative gains and losses are also included in current-period net income. However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the derivatives with realized margins on physical natural gas flows. NFE also may exclude impairment charges associated with equity method investments, which are non-cash charges considered unusual in nature that occur infrequently and are not indicative of the Company's performance for its ongoing operations. For the three months ended December 31, 2021 and 2020, there were no impairments of equity method investments recorded to earnings. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE.

A table detailing NFE for the three months ended December 31, 2021 and 2020, is provided below.

Net Financial Earnings (Loss) by Business Unit

 

Three Months Ended

 

December 31,

(Thousands)

2021

 

2020

New Jersey Natural Gas

$

51,080

 

 

$

49,467

 

Clean Energy Ventures

 

(6,821

)

 

 

(10,274

)

Storage and Transportation

 

2,962

 

 

 

3,508

 

Energy Services

 

17,567

 

 

 

1,500

 

Home Services and Other

 

447

 

 

 

(62

)

Subtotal

 

65,235

 

 

 

44,139

 

Eliminations

 

535

 

 

 

518

 

Total

$

65,770

 

 

$

44,657

 

Fiscal 2022 NFE Guidance:

NJR reaffirmed fiscal 2022 NFE guidance of $2.20 to $2.30 per share, subject to the risk and uncertainties identified below under "Forward-Looking Statements." The following chart represents NJR’s current expected contributions from its subsidiaries for fiscal 2022:

Company

Expected Fiscal 2022

Net Financial Earnings

Contribution

New Jersey Natural Gas

60 to 65 percent

Clean Energy Ventures

20 to 23 percent

Storage and Transportation

5 to 10 percent

Energy Services

9 to 11 percent

Home Services and Other

0 to 1 percent

In providing fiscal 2022 NFE guidance, management is aware there could be differences between reported GAAP earnings and NFE due to matters such as, but not limited to, the positions of our energy-related derivatives. Management is not able to reasonably estimate the aggregate impact or significance of these items on reported earnings and, therefore, is not able to provide a reconciliation to the corresponding GAAP equivalent for its operating earnings guidance without unreasonable efforts.

New Jersey Natural Gas

NJNG reported first-quarter fiscal 2022 NFE of $51.1 million, compared to NFE of $49.5 million during the same period in fiscal 2021. The increase in the first-quarter was due primarily to the deferral of a portion of pandemic related bad debt costs incurred of $10.7 million through the July 2, 2020 BPU deferral order, and the base rate increase resulting from NJNG's recent rate case settlement, partially offset by lower other income, higher depreciation and interest expense.

Customer Growth:

  • NJNG added 1,730 new customers during the first-quarter of fiscal 2022, compared with 1,948 in fiscal 2021. The decrease in customer additions was due primarily to slower growth in the new construction market during the first quarter of fiscal 2022.

Base Rate Settlement:

  • On November 17, 2021, NJNG received approval from the BPU on its rate case settlement agreement and new rates were effective on December 1, 2021. Under the approved rate case agreement, NJNG's total annual revenue is expected to increase by $79.0 million and includes a return on equity of 9.60% with a 54.0% common equity ratio and reflects a rate base of $2.52 billion with an overall rate of return of 6.84%.

Infrastructure Update:

  • NJNG's Infrastructure Investment Program (IIP) is a five-year, $150 million accelerated recovery program that began in fiscal 2021. IIP consists of a series of infrastructure projects designed to enhance the safety and reliability of NJNG's natural gas distribution system. In the first quarter, NJNG spent $5.7 million under the program to begin work on various distribution system reinforcement projects.
  • The Howell Green Hydrogen Project delivers hydrogen through NJNG's utility distribution pipeline to heat customers' homes and businesses and began commercial operation in October 2021. The recovery of the investment in this project was included in the recently completed rate case.

BGSS Incentive Programs:

BGSS incentive programs contributed $3.8 million to utility gross margin in the first quarter, compared with $4.6 million during the same period last year. The decrease for the first-quarter was due primarily to timing differences in the storage incentive program and lower capacity release volumes, partially offset by increased margin from off-system sales.

For more information on utility gross margin, please see "Non-GAAP Financial Information" below.

Energy-Efficiency Programs:

SAVEGREEN invested $12.9 million during the first-quarter of fiscal 2022 to help customers with energy-efficiency upgrades for their homes and businesses. NJNG recovered $6.8 million of its outstanding investments during the first quarter.

Clean Energy Ventures (CEV)

CEV reported first-quarter fiscal 2022 net financial losses of $(6.8) million, compared with net financial loss of $(10.3) million during the same period in fiscal 2021. The improvement was due primarily to increased revenue from the sale of SRECs and higher electric prices in the first-quarter of fiscal 2022.

Solar Investment Update:

  • Placed a solar project into service, adding 1.0 megawatt (MW) to CEV's total installed capacity.

Storage and Transportation

Storage and Transportation reported first-quarter fiscal 2022 NFE of $3.0 million, compared with NFE of $3.5 million during the same period in fiscal 2021. The decrease in NFE was due primarily to lower earnings from equity affiliates.

Infrastructure Updates:

  • Adelphia Gateway - In January 2022, Adelphia Gateway placed into service a new delivery point and the associated facilities in its North Zone.

Energy Services

Energy Services reported first-quarter fiscal 2022 NFE of $17.6 million, compared with NFE of $1.5 million for the same period last fiscal year. The improved performance was due primarily to the recognition of revenues from the Asset Management Agreements entered into during fiscal 2021 that became effective during the first-quarter.

Home Services and Other Operations

Home Services and Other Operations reported first-quarter fiscal 2022 NFE of $0.4 million compared with a net financial loss of $(0.1) million for the same period in fiscal 2021. The increase was due primarily to higher operating income related to an increase in installation revenue.

Expenditures and Cash Flows:

NJR is committed to maintaining a strong financial profile.

  • During the first-quarter of fiscal 2022, capital expenditures were $152.7 million, including accruals, of which $59.7 million were related to NJNG, compared with $119.3 million, of which $83.9 million were related to NJNG, during the same period in fiscal 2021.
  • During the first-quarter of fiscal 2022, cash flows used in operations were $37.4 million, compared with cash flows from operations of $31.7 million during the same period of fiscal 2021. The decrease in operating cash flows was due primarily to changes in working capital.

Forward-Looking Statements:

This earnings release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. NJR cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJR’s ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants. Words such as “anticipates,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “believes,” “should” and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management’s current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon NJR. There can be no assurance that future developments will be in accordance with management’s expectations, assumptions and beliefs or that the effect of future developments on NJR will be those anticipated by management. Forward-looking statements in this earnings release include, but are not limited to, certain statements regarding NJR’s NFEPS guidance for fiscal 2022, cash proceeds from the AMAs, projected NFEPS growth rate, results of future rate cases, forecasted contribution of business segments to NJR’s NFE for fiscal 2022, customer growth at NJNG, future NJR and NJNG capital expenditures, infrastructure programs and investments such as SRL, IIP, the Howell Green Hydrogen Project and energy efficiency programs, the ability to operate the Adelphia Gateway Pipeline project, and other legal and regulatory expectations.

Additional information and factors that could cause actual results to differ materially from NJR’s expectations are contained in NJR’s filings with the SEC, including NJR’s Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC’s web site, http://www.sec.gov. Information included in this earnings release is representative as of today only and while NJR periodically reassesses material trends and uncertainties affecting NJR's results of operations and financial condition in connection with its preparation of management's discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, NJR does not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.

Non-GAAP Financial Information:

This earnings release includes the non-GAAP financial measures NFE/net financial loss, NFE per basic share, financial margin and utility gross margin. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. As an indicator of NJR’s operating performance, these measures should not be considered an alternative to, or more meaningful than, net income or operating revenues as determined in accordance with GAAP. This information has been provided pursuant to the requirements of SEC Regulation G.

NFE and financial margin exclude unrealized gains or losses on derivative instruments related to NJR’s unregulated subsidiaries and certain realized gains and losses on derivative instruments related to natural gas that has been placed into storage at Energy Services and the impairment on NJR's investments in the PennEast Project, net of applicable tax adjustments as described below. Volatility associated with the change in value of these financial instruments and physical commodity reported on the income statement in the current period. In order to manage its business, NJR views its results without the impacts of the unrealized gains and losses, and certain realized gains and losses, caused by changes in value of these financial instruments and physical commodity contracts prior to the completion of the planned transaction because it shows changes in value currently instead of when the planned transaction ultimately is settled. An annual estimated effective tax rate is calculated for NFE purposes and any necessary quarterly tax adjustment is applied to NJR Energy Services Company.

NJNG’s utility gross margin represents the results of revenues less natural gas costs, sales, expenses and other taxes and regulatory rider expenses, which are key components of NJR’s operations. Natural gas costs, sales, expenses and other taxes and regulatory rider expenses are passed through to customers and, therefore, have no effect on utility gross margin. Management uses these non-GAAP financial measures as supplemental measures to other GAAP results to provide a more complete understanding of NJR’s performance. Management believes these non-GAAP financial measures are more reflective of NJR’s business model, provide transparency to investors and enable period-to-period comparability of financial performance. A reconciliation of all non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. For a full discussion of NJR’s non-GAAP financial measures, please see NJR’s most recent Report on Form 10-K, Item 7.

About New Jersey Resources

New Jersey Resources (NYSE: NJR) is a Fortune 1000 company that, through its subsidiaries, provides safe and reliable natural gas and clean energy services, including transportation, distribution, asset management and home services. NJR is composed of five primary businesses:

  • New Jersey Natural Gas, NJR’s principal subsidiary, operates and maintains over 7,500 miles of natural gas transportation and distribution infrastructure to serve over half a million customers in New Jersey’s Monmouth, Ocean and parts of Morris, Middlesex and Burlington counties.
  • Clean Energy Ventures invests in, owns and operates solar projects with a total capacity of more than 365 megawatts, providing residential and commercial customers with low-carbon solutions.
  • Energy Services manages a diversified portfolio of natural gas transportation and storage assets and provides physical natural gas services and customized energy solutions to its customers across North America.
  • Storage and Transportation serves customers from local distributors and producers to electric generators and wholesale marketers through its ownership of Leaf River and the Adelphia Gateway Pipeline Project, as well as our 50% equity ownership in the Steckman Ridge natural gas storage facility.
  • Home Services provides service contracts as well as heating, central air conditioning, water heaters, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey.

NJR and its over 1,200 employees are committed to helping customers save energy and money by promoting conservation and encouraging efficiency through Conserve to Preserve® and initiatives such as The SAVEGREEN Project® and The Sunlight Advantage®.

For more information about NJR:

www.njresources.com.

Follow us on Twitter @NJNaturalGas.

“Like” us on facebook.com/NewJerseyNaturalGas.

NEW JERSEY RESOURCES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended

 

 

December 31,

(Thousands, except per share data)

 

2021

 

2020

OPERATING REVENUES

 

 

 

 

Utility

 

$

274,435

 

$

195,729

Nonutility

 

 

401,407

 

 

258,576

Total operating revenues

 

 

675,842

 

 

454,305

OPERATING EXPENSES

 

 

 

 

Gas purchases

 

 

 

 

Utility

 

 

122,269

 

 

56,145

Nonutility

 

 

278,794

 

 

173,247

Related parties

 

 

1,846

 

 

1,734

Operation and maintenance

 

 

68,984

 

 

73,636

Regulatory rider expenses

 

 

16,671

 

 

10,701

Depreciation and amortization

 

 

30,393

 

 

27,362

Total operating expenses

 

 

518,957

 

 

342,825

OPERATING INCOME

 

 

156,885

 

 

111,480

Other income, net

 

 

4,136

 

 

4,117

Interest expense, net of capitalized interest

 

 

19,477

 

 

19,786

INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES

 

 

141,544

 

 

95,811

Income tax provision

 

 

30,807

 

 

17,441

Equity in earnings of affiliates

 

 

575

 

 

2,675

NET INCOME

 

$

111,312

 

$

81,045

 

 

 

 

 

EARNINGS PER COMMON SHARE

 

 

 

 

Basic

 

$

1.16

 

$

0.84

Diluted

 

$

1.16

 

$

0.84

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE SHARES OUTSTANDING

 

 

 

 

Basic

 

 

95,944

 

 

96,114

Diluted

 

 

96,356

 

 

96,415

 

 

 

 

 

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES

(Unaudited)

 

 

 

Three Months Ended

 

 

December 31,

(Thousands)

 

2021

 

2020

NEW JERSEY RESOURCES

 

 

 

 

A reconciliation of net income, the closest GAAP financial measurement, to net financial earnings is as follows:

 

 

 

 

 

Net income

 

$

111,312

 

 

$

81,045

 

Add:

 

 

 

 

Unrealized (gain) on derivative instruments and related transactions

 

 

(82,191

)

 

 

(37,491

)

Tax effect

 

 

19,536

 

 

 

8,913

 

Effects of economic hedging related to natural gas inventory

 

 

23,577

 

 

 

(7,532

)

Tax effect

 

 

(5,603

)

 

 

1,790

 

Net income to NFE tax adjustment

 

 

(861

)

 

 

(2,068

)

Net financial earnings

 

$

65,770

 

 

$

44,657

 

 

 

 

 

 

Weighted Average Shares Outstanding

 

 

 

 

Basic

 

 

95,944

 

 

 

96,114

 

Diluted

 

 

96,356

 

 

 

96,415

 

 

 

 

 

 

A reconciliation of basic earnings per share, the closest GAAP financial measurement, to basic net financial earnings per share is as follows:

 

 

 

 

 

Basic earnings per share

 

$

1.16

 

 

$

0.84

 

Add:

 

 

 

 

Unrealized (gain) on derivative instruments and related transactions

 

$

(0.86

)

 

$

(0.39

)

Tax effect

 

$

0.21

 

 

$

0.09

 

Effects of economic hedging related to natural gas inventory

 

$

0.25

 

 

$

(0.08

)

Tax effect

 

$

(0.06

)

 

$

0.02

 

Net income to NFE tax adjustment

 

$

(0.01

)

 

$

(0.02

)

Basic NFE per share

 

$

0.69

 

 

$

0.46

 

 

 

 

 

 

NATURAL GAS DISTRIBUTION

 

 

 

 

 

 

 

 

A reconciliation of operating revenue, the closest GAAP financial measurement, to utility gross margin is as follows:

 

 

 

 

 

Operating revenues

 

$

274,772

 

 

$

195,729

 

Less:

 

 

 

 

Gas purchases

 

 

124,594

 

 

 

59,309

 

Regulatory rider expense

 

 

16,671

 

 

 

10,701

 

Utility gross margin

 

$

133,507

 

 

$

125,719

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

(Unaudited)

 

December 31,

(Thousands)

 

2021

 

2020

ENERGY SERVICES

 

 

 

 

 

 

 

 

 

The following table is a computation of financial margin:

 

 

 

 

 

 

 

 

 

Operating revenues

 

$

369,244

 

 

$

229,477

 

Less: Gas purchases

 

 

278,687

 

 

 

173,837

 

Add:

 

 

 

 

Unrealized (gain) on derivative instruments and related transactions

 

 

(85,647

)

 

 

(38,781

)

Effects of economic hedging related to natural gas inventory

 

 

23,577

 

 

 

(7,532

)

Financial margin

 

$

28,487

 

 

$

9,327

 

 

 

 

 

 

A reconciliation of operating income, the closest GAAP financial measurement, to financial margin is as follows:

 

 

 

Operating income

 

$

86,778

 

 

$

51,582

 

Add:

 

 

 

 

Operation and maintenance expense

 

 

3,751

 

 

 

4,016

 

Depreciation and amortization

 

 

28

 

 

 

42

 

Subtotal

 

 

90,557

 

 

 

55,640

 

Add:

 

 

 

 

Unrealized (gain) on derivative instruments and related transactions

 

 

(85,647

)

 

 

(38,781

)

Effects of economic hedging related to natural gas inventory

 

 

23,577

 

 

 

(7,532

)

Financial margin

 

$

28,487

 

 

$

9,327

 

 

 

 

 

 

A reconciliation of net income to net financial earnings is as follows:

 

 

 

 

 

 

 

 

Net income

 

$

65,744

 

 

$

38,872

 

Add:

 

 

 

 

Unrealized (gain) on derivative instruments and related transactions

 

 

(85,647

)

 

 

(38,781

)

Tax effect

 

 

20,357

 

 

 

9,219

 

Effects of economic hedging related to natural gas

 

 

23,577

 

 

 

(7,532

)

Tax effect

 

 

(5,603

)

 

 

1,790

 

Net income to NFE tax adjustment

 

 

(861

)

 

 

(2,068

)

Net financial earnings

 

$

17,567

 

 

$

1,500

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL STATISTICS BY BUSINESS UNIT

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended

 

 

December 31,

(Thousands, except per share data)

 

2021

 

2020

NEW JERSEY RESOURCES

 

 

 

 

 

 

 

 

 

Operating Revenues

 

 

 

 

Natural Gas Distribution

 

$

274,772

 

 

$

195,729

 

Clean Energy Ventures

 

 

10,183

 

 

 

6,370

 

Energy Services

 

 

369,244

 

 

 

229,477

 

Storage and Transportation

 

 

12,143

 

 

 

13,104

 

Home Services and Other

 

 

13,951

 

 

 

12,577

 

Sub-total

 

 

680,293

 

 

 

457,257

 

Eliminations

 

 

(4,451

)

 

 

(2,952

)

Total

 

$

675,842

 

 

$

454,305

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

 

 

 

Natural Gas Distribution

 

$

74,183

 

 

$

62,912

 

Clean Energy Ventures

 

 

(3,972

)

 

 

(8,264

)

Energy Services

 

 

86,778

 

 

 

51,582

 

Storage and Transportation

 

 

1,876

 

 

 

3,689

 

Home Services and Other

 

 

862

 

 

 

1,996

 

Sub-total

 

 

159,727

 

 

 

111,915

 

Eliminations

 

 

(2,842

)

 

 

(435

)

Total

 

$

156,885

 

 

$

111,480

 

 

 

 

 

 

 

 

 

 

 

Equity in Earnings of Affiliates

 

 

 

 

Storage and Transportation

 

$

1,056

 

 

$

3,193

 

Eliminations

 

 

(481

)

 

 

(518

)

Total

 

$

575

 

 

$

2,675

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

 

 

 

Natural Gas Distribution

 

$

51,080

 

 

$

49,467

 

Clean Energy Ventures

 

 

(6,821

)

 

 

(10,274

)

Energy Services

 

 

65,744

 

 

 

38,872

 

Storage and Transportation

 

 

2,962

 

 

 

3,508

 

Home Services and Other

 

 

447

 

 

 

(62

)

Sub-total

 

 

113,412

 

 

 

81,511

 

Eliminations

 

 

(2,100

)

 

 

(466

)

Total

 

$

111,312

 

 

$

81,045

 

 

 

 

 

 

 

 

 

 

 

Net Financial Earnings (Loss)

 

 

 

 

Natural Gas Distribution

 

$

51,080

 

 

$

49,467

 

Clean Energy Ventures

 

 

(6,821

)

 

 

(10,274

)

Energy Services

 

 

17,567

 

 

 

1,500

 

Storage and Transportation

 

 

2,962

 

 

 

3,508

 

Home Services and Other

 

 

447

 

 

 

(62

)

Sub-total

 

 

65,235

 

 

 

44,139

 

Eliminations

 

 

535

 

 

 

518

 

Total

 

$

65,770

 

 

$

44,657

 

 

 

 

 

 

 

 

 

 

 

Throughput (Bcf)

 

 

 

 

NJNG, Core Customers

 

 

24.6

 

 

 

24.4

 

NJNG, Off System/Capacity Management

 

 

25.1

 

 

 

25.9

 

Energy Services Fuel Mgmt. and Wholesale Sales

 

 

63.5

 

 

 

104.8

 

Total

 

 

113.2

 

 

 

155.1

 

 

 

 

 

 

 

 

 

 

 

Common Stock Data

 

 

 

 

Yield at December 31

 

 

3.5

%

 

 

3.7

%

Market Price at December 31

 

$

41.06

 

 

$

35.55

 

Shares Out. at December 31

 

 

95,962

 

 

 

96,139

 

Market Cap. at December 31

 

$

3,940,188

 

 

$

3,417,741

 

 

 

 

 

 

 

 

 

Three Months Ended

(Unaudited)

 

December 31,

(Thousands, except customer and weather data)

 

2021

 

2020

NATURAL GAS DISTRIBUTION

 

 

 

 

 

 

 

 

 

Utility Gross Margin

 

 

 

 

Operating revenues

 

$

274,772

 

 

$

195,729

 

Less:

 

 

 

 

Gas purchases

 

 

124,594

 

 

 

59,309

 

Regulatory rider expense

 

 

16,671

 

 

 

10,701

 

Total Utility Gross Margin

 

$

133,507

 

 

$

125,719

 

 

 

 

 

 

Utility Gross Margin, Operating Income and Net Income

 

 

 

 

Residential

 

$

92,605

 

 

$

85,975

 

Commercial, Industrial & Other

 

 

19,102

 

 

 

17,040

 

Firm Transportation

 

 

17,282

 

 

 

17,288

 

Total Firm Margin

 

 

128,989

 

 

 

120,303

 

Interruptible

 

 

754

 

 

 

838

 

Total System Margin

 

 

129,743

 

 

 

121,141

 

Off System/Capacity Management/FRM/Storage Incentive

 

 

3,764

 

 

 

4,578

 

Total Utility Gross Margin

 

 

133,507

 

 

 

125,719

 

Operation and maintenance expense

 

 

36,431

 

 

 

43,638

 

Depreciation and amortization

 

 

22,893

 

 

 

19,169

 

Operating Income

 

$

74,183

 

 

$

62,912

 

 

 

 

 

 

Net Income

 

$

51,080

 

 

$

49,467

 

 

 

 

 

 

Net Financial Earnings

 

$

51,080

 

 

$

49,467

 

 

 

 

 

 

Throughput (Bcf)

 

 

 

 

Residential

 

 

12.6

 

 

 

13.6

 

Commercial, Industrial & Other

 

 

2.3

 

 

 

2.4

 

Firm Transportation

 

 

3.6

 

 

 

3.9

 

Total Firm Throughput

 

 

18.5

 

 

 

19.9

 

Interruptible

 

 

6.1

 

 

 

4.5

 

Total System Throughput

 

 

24.6

 

 

 

24.4

 

Off System/Capacity Management

 

 

25.1

 

 

 

25.9

 

Total Throughput

 

 

49.7

 

 

 

50.3

 

 

 

 

 

 

Customers

 

 

 

 

Residential

 

 

506,677

 

 

 

497,203

 

Commercial, Industrial & Other

 

 

31,756

 

 

 

30,912

 

Firm Transportation

 

 

28,073

 

 

 

31,398

 

Total Firm Customers

 

 

566,506

 

 

 

559,513

 

Interruptible

 

 

31

 

 

 

88

 

Total System Customers

 

 

566,537

 

 

 

559,601

 

Off System/Capacity Management*

 

 

24

 

 

 

30

 

Total Customers

 

 

566,561

 

 

 

559,631

 

*The number of customers represents those active during the last month of the period.

 

 

 

Degree Days

 

 

 

 

Actual

 

 

1,274

 

 

 

1,418

 

Normal

 

 

1,550

 

 

 

1,575

 

Percent of Normal

 

 

82.2

%

 

 

90.0

%

 

 

 

 

 

 

 

 

Three Months Ended

(Unaudited)

 

December 31,

(Thousands, except customer, SREC, TREC and megawatt)

 

2021

 

2020

CLEAN ENERGY VENTURES

 

 

 

 

 

 

 

 

 

Operating Revenues

 

 

 

 

SREC sales

 

$

2,867

 

 

$

1,292

 

TREC sales

 

 

846

 

 

 

690

 

Solar electricity sales and other

 

 

3,654

 

 

 

1,720

 

Sunlight Advantage

 

 

2,816

 

 

 

2,668

 

Total Operating Revenues

 

$

10,183

 

 

$

6,370

 

 

 

 

 

 

Depreciation and Amortization

 

$

5,233

 

 

$

5,433

 

 

 

 

 

 

Operating (Loss)

 

$

(3,972

)

 

$

(8,264

)

 

 

 

 

 

Income Tax (Benefit)

 

$

(2,046

)

 

$

(3,086

)

 

 

 

 

 

Net (Loss)

 

$

(6,821

)

 

$

(10,274

)

 

 

 

 

 

Net Financial (Loss)

 

$

(6,821

)

 

$

(10,274

)

 

 

 

 

 

Solar Renewable Energy Certificates Generated

 

 

92,172

 

 

 

87,208

 

 

 

 

 

 

Solar Renewable Energy Certificates Sold

 

 

12,200

 

 

 6,095

 

 

 

 

 

Transition Renewable Energy Certificates Generated

 

 

6,085

 

 

 

4,683.0

 

 

 

 

 

 

Solar Megawatts Under Construction

 

 

77.1

 

 

 

8.3

 

 

 

 

 

 

ENERGY SERVICES

 

 

 

 

 

 

 

 

 

Operating Income

 

 

 

 

Operating revenues

 

$

369,244

 

 

$

229,477

 

Less:

 

 

 

 

Gas purchases

 

 

278,687

 

 

 

173,837

 

Operation and maintenance expense

 

 

3,751

 

 

 

4,016

 

Depreciation and amortization

 

 

28

 

 

 

42

 

Operating Income

 

$

86,778

 

 

$

51,582

 

 

 

 

 

 

Net Income

 

$

65,744

 

 

$

38,872

 

 

 

 

 

 

Financial Margin

 

$

28,487

 

 

$

9,327

 

 

 

 

 

 

Net Financial Earnings

 

$

17,567

 

 

$

1,500

 

 

 

 

 

 

Gas Sold and Managed (Bcf)

 

 

63.5

 

 

 

104.8

 

 

 

 

 

 

STORAGE AND TRANSPORTATION

 

 

 

 

 

 

 

 

 

Operating Revenues

 

$

12,143

 

 

$

13,104

 

 

 

 

 

 

Equity in Earnings of Affiliates

 

$

1,056

 

 

$

3,193

 

 

 

 

 

 

Operation and Maintenance Expense

 

$

7,430

 

 

$

6,542

 

 

 

 

 

 

Other Income, Net

 

$

2,509

 

 

$

1,254

 

 

 

 

 

 

Interest Expense

 

$

2,136

 

 

$

3,982

 

 

 

 

 

 

Income Tax Provision

 

$

343

 

 

$

646

 

 

 

 

 

 

Net Income

 

$

2,962

 

 

$

3,508

 

 

 

 

 

 

Net Financial Earnings

 

$

2,962

 

 

$

3,508

 

 

 

 

 

 

HOME SERVICES AND OTHER

 

 

 

 

 

 

 

 

 

Operating Revenues

 

$

13,951

 

 

$

12,577

 

 

 

 

 

 

Operating Income

 

$

862

 

 

$

1,996

 

 

 

 

 

 

Other Expense, Net

 

$

75

 

 

$

(824

)

 

 

 

 

 

Net Income (Loss)

 

$

447

 

 

$

(62

)

 

 

 

 

 

Net Financial Earnings (Loss)

 

$

447

 

 

$

(62

)

 

 

 

 

 

Total Service Contract Customers at December 31

 

 

105,373

 

 

 

106,857

 

 

 

 

 

 

 

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