UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 6, 2014
NEW JERSEY RESOURCES CORPORATION
(Exact name of registrant as specified in its charter)
New Jersey | 001-8359 | 22-2376465 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
1415 Wyckoff Road Wall, New Jersey |
07719 | |
(Address of principal executive offices) | (Zip Code) |
(732) 938-1480
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition
On February 6, 2014, the Registrant issued a press release reporting financial results for the first fiscal quarter ended December 31, 2013 (the Press Release). A copy of the Press Release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 7.01 Regulation FD Disclosure
Presentation of Financial Results
The Registrant will host a conference call and live internet webcast to discuss its financial results on February 6, 2014, at 10:00 a.m. ET. A copy of the presentation that will be used during the webcast is attached hereto as Exhibit 99.2 and incorporated by reference herein.
Carroll Area Wind Farm
On February 5, 2014, NJR Clean Energy Ventures (NJRCEV), a subsidiary of New Jersey Resources Corporation (NJR), announced the agreement to acquire an onshore wind project in Carroll County, Iowa in a press release attached hereto as Exhibit 99.3 and incorporated by reference herein.
On February 5, 2014, NJR also published an Investor Fact Sheet entitled NJR Clean Energy Ventures Invests in its Second Onshore Wind Farm Project attached hereto as Exhibit 99.4 and incorporated by reference herein.
The information in this Current Report is being furnished and shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section and shall not be deemed to be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.
Item 9.01. Financial Statements and Exhibits
(a) | Financial statements of businesses acquired: | Not applicable. | ||
(b) | Pro forma financial information: | Not applicable. | ||
(c) | Exhibits: |
Exhibit Number |
Description | |
99.1 | Press Release dated February 6, 2014 | |
99.2 | Presentation dated February 6, 2014 | |
99.3 | Press Release dated February 5, 2014 | |
99.4 | Investor Fact Sheet dated February 5, 2014 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
NEW JERSEY RESOURCES CORPORATION | ||||||
Date: February 6, 2014 | ||||||
By: | /s/ Glenn C. Lockwood | |||||
Glenn C. Lockwood | ||||||
Executive Vice President and Chief Financial Officer |
EXHIBIT INDEX
Exhibit Number |
Description | |
99.1 | Press Release dated February 6, 2014 | |
99.2 | Presentation dated February 6, 2014 | |
99.3 | Press Release date February 5, 2014 | |
99.4 | Investor Fact Sheet dated February 6, 2014 |
Exhibit 99.1
Date: February 6, 2014 | Media Contact: | |
Michael Kinney | ||
732-938-1031 | ||
mkinney@njresources.com | ||
Investor Contacts: | ||
Joanne Fairechio | ||
732-378-4967 | ||
jfairechio@njresources.com | ||
Dennis Puma | ||
732-938-1229 | ||
dpuma@njresources.com |
NEW JERSEY RESOURCES ANNOUNCES STRONG FISCAL 2014 FIRST-QUARTER RESULTS; REAFFIRMS FISCAL 2014 EARNINGS GUIDANCE
Strong Results at New Jersey Natural Gas and NJR Energy Services Drive Growth
Moodys Investors Service Upgrades New Jersey Natural Gas Credit Rating
WALL, NJ New Jersey Resources (NYSE: NJR) today reported results for the first quarter of fiscal 2014, including its net financial earnings (NFE), and reaffirmed earnings guidance for fiscal 2014.
A reconciliation of net income to NFE for the first quarter of fiscal years 2014 and 2013 is provided below.
Three Months Ended December 31, |
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(Thousands) |
2013 | 2012 | ||||||
Net income |
$ | 7,693 | $ | 60,206 | ||||
Add: |
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Unrealized loss (gain) on derivative instruments and related transactions |
65,652 | (18,334 | ) | |||||
Effects of economic hedging related to natural gas inventory |
(22,880 | ) | (20,748 | ) | ||||
Tax adjustments |
(10,605 | ) | 14,369 | |||||
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Net financial earnings |
$ | 39,860 | $ | 35,493 | ||||
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Weighted Average Shares Outstanding |
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Basic |
42,021 | 41,695 | ||||||
Diluted |
42,239 | 41,758 | ||||||
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Basic earnings per share |
$ | 0.18 | $ | 1.44 | ||||
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Basic net financial earnings per share |
$ | 0.95 | $ | 0.85 | ||||
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NEW JERSEY RESOURCES ANNOUNCES STRONG FISCAL 2014 FIRST-QUARTER RESULTS; REAFFIRMS FISCAL 2014 EARNINGS GUIDANCE; Strong Results at New Jersey Natural Gas and NJR Energy Services Drive Growth; Moodys Investors Service Upgrades New Jersey Natural Gas Credit Rating
Page 2 of 16
NFE is a financial measure not calculated in accordance with generally accepted accounting principles (GAAP) of the United States as it excludes all unrealized, and certain realized, gains and losses associated with derivative instruments, net of applicable tax adjustments. For further discussion of this financial measure, as well as reconciliation to the most comparable GAAP measure, please see the explanation below under Additional Non-GAAP Financial Information.
| NJR Reports Net Financial Earnings |
In the first quarter of fiscal 2014, NJR reported NFE of $39.9 million, or $.95 per share, compared with $35.5 million, or $.85 per share, in the first quarter of fiscal 2013.
Three Months Ended December 31, |
||||||||
(Thousands) |
2013 | 2012 | ||||||
Net Financial Earnings (Loss) |
||||||||
New Jersey Natural Gas |
$ | 27,639 | $ | 25,492 | ||||
NJR Energy Services |
7,374 | 3,014 | ||||||
NJR Clean Energy Ventures |
3,614 | 5,305 | ||||||
NJR Midstream |
1,434 | 1,785 | ||||||
NJR Home Services and Other |
(201 | ) | (94 | ) | ||||
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Sub-total |
39,860 | 35,502 | ||||||
Eliminations |
| (9 | ) | |||||
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Total |
$ | 39,860 | $ | 35,493 | ||||
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First-quarter NFE growth was driven primarily by strong results at NJR Energy Services, the companys wholesale energy services segment, and New Jersey Natural Gas, NJRs regulated utility subsidiary, which offset lower results at the companys distributed power subsidiary, NJR Clean Energy Ventures.
We are off to a solid start in fiscal 2014, said Laurence M. Downes, chairman and CEO of NJR. As always, our dedicated employees are the key driver of our performance by focusing on the execution of our strategic plan. On behalf of our board of directors, I would like to thank each and every one of them for their unwavering dedication and continued commitment to meeting our customers expectations for safety, reliability and service while delivering consistent returns to our shareowners.
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NEW JERSEY RESOURCES ANNOUNCES STRONG FISCAL 2014 FIRST-QUARTER RESULTS; REAFFIRMS FISCAL 2014 EARNINGS GUIDANCE; Strong Results at New Jersey Natural Gas and NJR Energy Services Drive Growth; Moodys Investors Service Upgrades New Jersey Natural Gas Credit Rating
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| NJR Reaffirms Fiscal 2014 Earnings Guidance |
Subject to the risks and uncertainties identified below under Forward-Looking Statements, NJR is reaffirming previously announced fiscal 2014 NFE guidance in a range of $2.75 to $2.95 per basic share. As in the past, NJR expects New Jersey Natural Gas to be the largest contributor to fiscal 2014 NFE. The following chart represents the current expected contributions from NJRs subsidiaries:
Company |
Expected Fiscal 2014 Net Financial Earnings Contribution | |
New Jersey Natural Gas |
60 to 70 percent | |
NJR Midstream |
5 to 10 percent | |
Total Regulated |
65 to 80 percent | |
NJR Energy Services |
5 to 15 percent | |
NJR Clean Energy Ventures |
10 to 20 percent | |
NJR Home Services |
2 to 5 percent |
| Moodys Investors Service Announces Credit Rating Upgrade for New Jersey Natural Gas |
On January 30, 2014, Moodys Investors Service upgraded the senior secured rating of New Jersey Natural Gas (NJNG), the companys regulated utility subsidiary, from Aa3 to Aa2, with a stable outlook. The rating upgrade was driven primarily by the overall credit supportiveness of the regulatory environment under which NJNG operates. In its announcement, Moodys noted the New Jersey Board of Public Utilities (BPU) continued support of NJNGs rate mechanisms, which allows for timely recovery of costs, including those associated with NJNGs Basic Gas Supply Service (BGSS) and Conservation Incentive Programs (CIP). In addition, the favorable recovery of investments related to NJNGs infrastructure and energy-efficiency programs factored into their decision to upgrade NJNGs rating.
| Steady Growth Continues at New Jersey Natural Gas; New Construction Customer Additions Remain Strong |
NFE for the first quarter of fiscal 2014 at NJNG were $27.6 million, compared with $25.5 million during the same period last year. The increase was due to steady growth from customer additions, higher utility gross margin from incentive programs, The SAVEGREEN Project® and the impact of customers who had been curtailed in fiscal 2013 due to Superstorm Sandy returning to service in fiscal 2014.
NJNG added 2,129 new customers in the first quarter of fiscal 2014, compared with 1,959 in the same period last year, an increase of 8.7 percent. Of these customers, 980 were related to new construction, compared with 845 in the same period last year, a 16 percent increase. In the first quarter of fiscal 2014, total customer conversions were 1,286, an increase of 9.4 percent over the first quarter of fiscal 2013, including 137 non-heat customers who switched to natural gas.
NJNG currently expects to add, in total, 14,000 to 16,000 new customers during fiscal 2014 and 2015, representing a new customer annual growth rate of about 1.5 percent. NJNG expects these new customers and conversions to contribute approximately $3.9 million annually to utility gross margin. We continue to see solid economic activity in our service territory, which is driving strong new customer growth, said Downes.
In fiscal 2013, utility gross margin was reduced as a result of the curtailment of 30,100 customers during Superstorm Sandy. As of the first quarter of fiscal 2014, nearly 75 percent of these customers were back in service, contributing to improved utility gross margin of about $1.4 million in the first quarter of fiscal 2014. For more information on utility gross margin, please see Non-GAAP Financial Information below.
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NEW JERSEY RESOURCES ANNOUNCES STRONG FISCAL 2014 FIRST-QUARTER RESULTS; REAFFIRMS FISCAL 2014 EARNINGS GUIDANCE; Strong Results at New Jersey Natural Gas and NJR Energy Services Drive Growth; Moodys Investors Service Upgrades New Jersey Natural Gas Credit Rating
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On December 18, 2013, the BPU approved NJNGs request to provide natural gas delivery service to the Red Oak power plant, an 830 megawatt combined cycle power plant located in Sayreville, New Jersey. The service agreement is effective through September 30, 2022. NJNG also has the ability to sell natural gas to the facility under its natural gas supply incentive program, with gross margin to be shared with NJNG customers. NJNG expects to begin delivering natural gas to the power plant in the fall of 2014. At that time, the Red Oak facility will be our largest customer, said Downes. This addition will benefit our customers and shareowners alike.
| The SAVEGREEN Project® |
In the first quarter of fiscal 2014, The SAVEGREEN Project, NJNGs energy-efficiency program, spent $9.8 million on grants, incentives and the on-bill repayment program to help make high-efficiency natural gas equipment more affordable for NJNG customers. During the same period, SAVEGREEN performed 1,303 home energy audits to identify additional energy-efficiency opportunities, with an emphasis on whole-house improvements to further increase energy savings. In addition, during the first quarter of fiscal 2014, 634 customers took advantage of the on-bill repayment program.
Since its inception in 2009, SAVEGREEN grants, incentives and on-bill repayment program loans, totaling $71.5 million, have helped more than 29,000 customers reduce energy consumption and lower their bills, supporting the states environmental goals and its mandate to reduce energy costs for residents. New Jersey has also benefited from more than $215.8 million in economic activity generated by the 1,902 contractors now participating in The SAVEGREEN Project. NJNGs SAVEGREEN energy-efficiency programs are in place through June 30, 2015.
In fiscal 2014 and 2015, NJNG plans to invest a total of approximately $85 million in SAVEGREEN grants, financial incentives and the on-bill repayment program. The company is authorized to earn an overall return on its SAVEGREEN investments at various rates. The recovery period varies from two to 10 years, depending on the type of investment.
| Compressed Natural Gas Refueling Stations |
NJNG is in various stages of developing three compressed natural gas (CNG) refueling stations, representing a total investment of approximately $9.6 million. The host sites, located at Waste Management, Inc. of Toms River, Ocean County, the Middletown Department of Public Works and Shore Point Distributing Company, Inc. of Freehold Township, both in Monmouth County, will be the first to open to the public in each of these counties.
NJNG will install, own and maintain the CNG infrastructure for all three stations, and the host companies will be required to initially use at least 20 percent of the refueling capacity and open the stations to the public. These new CNG fueling stations align with the states public policy goal to encourage the use of natural gas vehicles and give New Jersey residents and businesses easier access to cleaner, cost-effective fuel options. NJNG expects construction to begin by March 2014, with all three CNG stations operational by the end of fiscal 2014.
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NEW JERSEY RESOURCES ANNOUNCES STRONG FISCAL 2014 FIRST-QUARTER RESULTS; REAFFIRMS FISCAL 2014 EARNINGS GUIDANCE; Strong Results at New Jersey Natural Gas and NJR Energy Services Drive Growth; Moodys Investors Service Upgrades New Jersey Natural Gas Credit Rating
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NJNG is authorized by the BPU to earn an overall return of 7.1 percent, including a 10.3 percent return on equity (ROE), on these investments.
| New Jersey Natural Gas Supply Incentive Program |
In the first quarter of fiscal 2014, NJNGs gross margin-sharing BGSS incentive programs, which include off-system sales, capacity release, storage optimization and financial risk management programs, contributed $2.5 million to utility gross margin, compared with $2.1 million in the first quarter of fiscal 2013. This increase was due primarily to increased off-system sales margin, resulting primarily from higher volatility in the market area. NJNG shares the gross margin earned from these incentive programs with customers and shareowners, according to a gross margin-sharing formula authorized by the BPU that is in place through October 31, 2015. Since inception in 1992, these incentive programs have saved customers approximately $647 million.
| Regulated Infrastructure Update |
In the first quarter of fiscal 2014, NJNG invested $10.6 million in its Safety Acceleration and Facility Enhancement (SAFE) program, a planned $130 million, four-year infrastructure investment. Through SAFE, NJNG will replace 276 miles of its distribution main to further ensure the reliability and integrity of its delivery system and meet the needs of its growing customer base. This will include all of NJNGs cast iron main and approximately 50 percent of its unprotected bare steel distribution main, along with the associated services. SAFE investments will earn a weighted average cost of capital of 6.9 percent, including a 9.75 percent ROE.
NJNG is awaiting approval from the BPU for its New Jersey Reinvestment in System Enhancement (NJ RISE) program, a $102.5 million investment over a five-year period to include six capital projects throughout the most storm prone coastal areas of its service territory. These system enhancements will help mitigate outages, improve NJNGs service disruption response and strengthen the overall safety, reliability and resiliency of its delivery system. NJNG is seeking to recover the capital investment costs associated with NJ RISE through an annual adjustment to its base rates. NJNG expects the BPU to make a decision on NJ RISE later in fiscal 2014.
| NJR Energy Services Reports Continued Strong Results |
During the first quarter of fiscal 2014, NJR Energy Services (NJRES), the wholesale energy subsidiary of NJR, generated $7.4 million of NFE, compared with $3 million in the same period last year. The improvement was due primarily to higher financial margin generated from storage assets during cold weather, growth in NJRES pipeline and storage portfolio and increased sales to major customer segments.
With a diversified portfolio of natural gas storage and transportation assets, expertise in the producer services marketplace and a constant focus on disciplined risk management, NJR Energy Services continues to identify new growth opportunities that bring value to our shareholders, continued Downes.
NJRES has added new counterparties, as well as strategic storage and transportation assets to its holdings, and continues to expand its geographic footprint, adding to its existing portfolio, which includes 41.4 billion cubic feet (Bcf) of firm storage capacity and 1.5 Bcf/day of firm transportation.
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NEW JERSEY RESOURCES ANNOUNCES STRONG FISCAL 2014 FIRST-QUARTER RESULTS; REAFFIRMS FISCAL 2014 EARNINGS GUIDANCE; Strong Results at New Jersey Natural Gas and NJR Energy Services Drive Growth; Moodys Investors Service Upgrades New Jersey Natural Gas Credit Rating
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| NJR Clean Energy Ventures Places Two Commercial Projects into Service; Residential Growth Continues |
In the first quarter of fiscal 2014, NJR Clean Energy Ventures (NJRCEV), the companys unregulated distributed power subsidiary, reported NFE of $3.6 million, compared with $5.3 million in the same period last year. The reduction in earnings is due primarily to the timing of Solar Renewable Energy Certificate (SREC) sales.
In the first quarter of fiscal 2014, NJRCEV placed into service a total of $5.7 million in commercial projects, including a 0.3 megawatt system for the Township of Woolwich and a 1.4 megawatt system at Reeves Station South in Medford, New Jersey. Additionally, a $26 million, 9.2 megawatt grid-connected project in West Pemberton is currently under construction and expected to be operational in fiscal 2014. During the second quarter of fiscal 2014, NJRCEV plans to begin construction on two grid-connected projects, investing a total of $44 million. During the first quarter of fiscal 2013, NJRCEV invested approximately $26.3 million in two commercial solar installations placed into service, with a total capacity of 9.1 megawatts.
The Sunlight Advantage®, NJRCEVs residential solar lease program, added 175 customers in the first quarter of fiscal 2014, bringing the total number of customers to 2,242 since the programs inception. The Sunlight Advantage provides simple, solar savings to eligible homeowners through a roof- or ground-mounted solar system with no upfront installation or maintenance costs. NJRCEV expects to invest approximately $27 million in residential solar systems in fiscal 2014.
NJRs effective tax rate is significantly impacted by the amount of tax credits that are forecasted to be earned during the fiscal year. GAAP requires NJR to estimate its annual effective tax rate and use this rate to calculate its year-to-date tax provision. Based on projects completed in the first quarter, and NJRCEVs forecast of projects to be completed for the balance of the fiscal year, NJRs estimated annual effective tax rate is 16.3 percent. Accordingly, $594,000 related to tax credits were recognized in the first quarter of fiscal 2014, compared with $6.8 million in the first quarter of fiscal 2013. For NFE purposes, the effective tax rate for fiscal 2014 is estimated at 23.3 percent and $5.7 million of tax credits were recognized in the first fiscal quarter, compared with $4.3 million last year. For further discussion of this tax adjustment and reconciliation to the most comparable GAAP measure, please see the explanation below under Additional Non-GAAP Financial Information.
These estimates are based on information and assumptions that are subject to change, and may have a material impact on quarterly and annual GAAP results and NFE. Factors considered by management in estimating completion of projects during the fiscal year include, but are not limited to, board of directors approval, execution of various contracts, including power purchase agreements, construction logistics, permitting and interconnection completion. See the Forward-Looking Statements section of this news release for further information regarding the inherent risks associated with solar investments.
| NJR Clean Energy Ventures Announces Second Onshore Wind Project; Construction Begins on Two Dot Wind Farm |
Yesterday, NJRCEV announced it had agreed to acquire its second onshore wind project, an investment of approximately $42 million in a 20 megawatt project located on 1,100 acres in the Midwest in Carroll County, Iowa. NJRCEV will, subject to customary closing conditions, purchase the shovel-ready project from
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NEW JERSEY RESOURCES ANNOUNCES STRONG FISCAL 2014 FIRST-QUARTER RESULTS; REAFFIRMS FISCAL 2014 EARNINGS GUIDANCE; Strong Results at New Jersey Natural Gas and NJR Energy Services Drive Growth; Moodys Investors Service Upgrades New Jersey Natural Gas Credit Rating
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OwnEnergy, Inc., a developer of midsize and community wind projects. NJRCEV will own, construct and operate the facility and expects the project to be operational by spring 2015. In 2012, NJRCEV acquired an approximate 19 percent ownership position in OwnEnergy, with an option to purchase projects like the Carroll Area wind farm that fit NJRs investment profile. This is the second OwnEnergy onshore wind project purchased by NJRCEV.
The Carroll Area wind project is another significant milestone for NJR Clean Energy Ventures, said Downes. The addition of this second wind power investment is the next step in diversifying our distributed power portfolio, providing added long-term growth opportunities for our shareholders.
All energy and clean energy credits from the Carroll Area project will be sold to MidAmerican Energy, a subsidiary of MidAmerican Energy Holdings, under a 25-year power purchase agreement. MidAmerican Energy Holdings is a subsidiary of Berkshire Hathaway. MidAmerican Energy provides electricity and transmission services to customers in Iowa, Illinois, South Dakota and Nebraska and, at the end of 2013, had 8,087 megawatts of owned and contracted generating capacity, 30 percent of which was fueled by wind. NJRCEV expects that the wind farm will qualify for federal production tax credits (PTCs), which are based on kilowatt-hour output. All PTCs generated by the Carroll Area wind farm will be retained by NJRCEV.
Construction is continuing on NJRCEVs first onshore wind project, a $22 million, 9.72 megawatt wind farm in Two Dot, Montana, and NJRCEV expects the project to be operational in the third quarter of fiscal 2014. All energy and clean energy credits from Two Dot will be sold through a 25-year power purchase agreement with NorthWestern Energy, a natural gas and electricity supplier that serves over 673,000 customers in Montana, South Dakota and Nebraska. All PTCs generated by Two Dot will be retained by NJRCEV.
| NJR Clean Energy Ventures Long-Term Outlook |
Over the next four years, NJRCEV expects a declining percentage of its NFE to come from the investment tax credits (ITCs) associated with solar investments. Looking out through fiscal 2017, the company anticipates that its existing projects will benefit from SREC prices that NJRCEV expects to continue to improve from supply and demand dynamics, including the recently enacted BPU approval process for grid-connected projects. NJRCEV continues to focus on diversifying its distributed power portfolio to include small- to mid-sized onshore wind projects, supported by long-term power purchase agreements and investments in combined heat and power, thereby reducing its reliance on ITCs.
| NJR Midstream Reports Results |
NJRs natural gas midstream asset segment, NJR Midstream, consists of two Federal Energy Regulatory Commission (FERC)-regulated investments, NJRs 50 percent equity ownership in Steckman Ridge, a 12 Bcf natural gas storage facility in southwestern Pennsylvania jointly owned with Spectra Energy, and NJRs 5.53 percent equity investment in Iroquois Pipeline, which delivers natural gas to the New England and New York markets.
NJR Midstream reported first-quarter fiscal 2014 NFE of $1.4 million, compared with $1.8 million in fiscal 2013. The decrease was due primarily to lower transportation values at Iroquois and a one-time maintenance expense at Steckman Ridge.
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NEW JERSEY RESOURCES ANNOUNCES STRONG FISCAL 2014 FIRST-QUARTER RESULTS; REAFFIRMS FISCAL 2014 EARNINGS GUIDANCE; Strong Results at New Jersey Natural Gas and NJR Energy Services Drive Growth; Moodys Investors Service Upgrades New Jersey Natural Gas Credit Rating
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| NJR Home Services Announces Results |
In the first quarter of fiscal 2014, NJR Home Services (NJRHS), the companys unregulated retail and appliance service subsidiary, reported a net financial loss of $574,000, compared with a net financial loss of $247,000 in the same period last year, when NJRHS experienced higher-than-expected sales due to a significant increase in equipment replacements and installations as a result of Superstorm Sandy.
NJRHS offers home energy solutions for customer comfort, including equipment sales and installations, solar lease and purchase plans and a recently expanded service contract product line that now includes electric, plumbing and standby generator contracts. NJRHS expanded service territory now includes Monmouth, Ocean, Middlesex, Morris, Sussex, Warren and Hunterdon counties in New Jersey. Currently, NJRHS serves approximately 120,000 service contract customers.
Webcast Information
NJR will host a live webcast to discuss its financial results today at 10 a.m. ET. A few minutes prior to the webcast, go to njresources.com and select Investor Relations, then scroll down to the Events & Presentations section and click on the webcast link.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of 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 NJRs 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 information and such forward-looking statements are made based upon managements current expectations 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 managements expectations or that the effect of future developments on NJR will be those anticipated by management. Forward-looking information in this release includes, but is not limited to, certain statements regarding NJRs NFE for fiscal 2014, forecasted contribution of business segments to fiscal 2014 NFE, commencement of gas supply to the Red Oak power plant, expected contribution by NJNGs new customers and returning customers affected by Superstorm Sandy to utility gross margin, expected number of new customers of NJNG, SREC prices, estimated capital expenditures in fiscal 2014 and beyond by NJNG including those related to SAVEGREEN, SAFE and NJ RISE, planned compressed natural gas fueling stations, the long-term outlook for NJRCEV, diversification of NJRCEVs strategy, NJRCEVs future solar projects and the Two Dot and Carroll Area wind farms.
The factors that could cause actual results to differ materially from NJRs expectations include, but are not limited to, weather and economic conditions; demographic changes in the NJNG service territory and their effect on NJNGs customer growth; volatility of natural gas and other commodity prices and their impact on NJNG customer usage, NJNGs BGSS incentive programs, NJRES operations and on the Companys risk management efforts; changes in rating agency requirements and/or credit ratings and their effect on availability and cost of capital to the Company; the impact of volatility in the credit markets; the ability to comply with debt covenants; the impact to the asset values and resulting higher costs and funding obligations of NJRs pension and post employment benefit plans as a result of downturns in the financial markets, a lower discount rate, and impacts associated with the Patient Protection and Affordable Care Act; accounting effects and other risks associated with hedging activities and use of derivatives contracts; commercial and wholesale credit risks, including the availability of creditworthy customers and counterparties and liquidity
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NEW JERSEY RESOURCES ANNOUNCES STRONG FISCAL 2014 FIRST-QUARTER RESULTS; REAFFIRMS FISCAL 2014 EARNINGS GUIDANCE; Strong Results at New Jersey Natural Gas and NJR Energy Services Drive Growth; Moodys Investors Service Upgrades New Jersey Natural Gas Credit Rating
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in the wholesale energy trading market; the ability to obtain governmental approvals and/or financing for the construction, development and operation of certain non-regulated energy investments; risks associated with the management of the Companys joint ventures and partnerships; conditions precedent to the closing of the acquisition of the Carroll Area wind farm; risks associated with our investments in renewable energy projects and our investments in an onshore wind developer, including the availability of regulatory and tax incentives, logistical risks and potential delays related to construction, permitting, regulatory approvals and electric grid interconnection, the availability of viable projects and NJRs eligibility for ITCs and PTCs, the future market for SRECs and operational risks related to projects in service; timing of qualifying for ITCs due to delays or failures to complete planned solar energy projects and the resulting effect on our effective tax rate and earnings; regulatory approval of NJNGs planned infrastructure programs; the level and rate at which NJNGs costs and expenses (including those related to restoration efforts resulting from Superstorm Sandy) are incurred and the extent to which they are allowed to be recovered from customers through the regulatory process; access to adequate supplies of natural gas and dependence on third-party storage and transportation facilities for natural gas supply; operating risks incidental to handling, storing, transporting and providing customers with natural gas; risks related to our employee workforce, including a work stoppage; the regulatory and pricing policies of federal and state regulatory agencies; the possible expiration of the NJNG CIP, the costs of compliance with the proposed regulatory framework for over-the-counter derivatives; the costs of compliance with present and future environmental laws, including potential climate change-related legislation; risks related to changes in accounting standards; the disallowance of recovery of environmental-related expenditures and other regulatory changes; environmental-related and other litigation and other uncertainties; risks related to cyber-attack of failure of information technology systems; and the impact of natural disasters, terrorist activities, and other extreme events on our operations and customers, including any impacts to utility gross margin, and restoration costs resulting from Superstorm Sandy. The aforementioned factors are detailed in the Risk Factors sections of our Annual Report on Form 10-K filed on November 26, 2013, as filed with the Securities and Exchange Commission (SEC), which is available on the SECs website at sec.gov. Information included in this release is representative as of today only and while NJR periodically reassesses material trends and uncertainties affecting NJRs results of operations and financial condition in connection with its preparation of managements 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 press release includes the non-GAAP measures NFE (losses), 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 the companys operating performance, these measures should not be considered an alternative to, or more meaningful than, operating income as determined in accordance with GAAP. This information has been provided pursuant to the requirements of SEC Regulation G.
NFE (losses) and financial margin exclude unrealized gains or losses on derivative instruments related to the companys unregulated subsidiaries and certain realized gains and losses on derivative instruments related to natural gas that has been placed into storage at NJRES. Volatility associated with the change in value of these financial and physical commodity contracts is reported in 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
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NEW JERSEY RESOURCES ANNOUNCES STRONG FISCAL 2014 FIRST-QUARTER RESULTS; REAFFIRMS FISCAL 2014 EARNINGS GUIDANCE; Strong Results at New Jersey Natural Gas and NJR Energy Services Drive Growth; Moodys Investors Service Upgrades New Jersey Natural Gas Credit Rating
Page 10 of 16
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 NJRCEV, as such adjustment is related to tax credits generated by NJRCEV.
NJNGs utility gross margin represents the results of revenues less natural gas costs, sales and other taxes and regulatory rider expenses, which are key components of the companys operations that move in relation to each other. Natural gas costs, sales and other taxes and regulatory rider expenses are passed through to customers and, therefore, have no effect on gross margin. Management uses these non-GAAP financial measures as supplemental measures to other GAAP results to provide a more complete understanding of the companys performance. Management believes these non-GAAP measures are more reflective of the companys 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 NJRs non-GAAP financial measures, please see NJRs most recent Form 10-K, Item 7 and most recent Form 10-Q, Part I, Item 2.
About New Jersey Resources
New Jersey Resources (NYSE: NJR) is a Fortune 1000 company that provides safe and reliable natural gas and clean energy services, including transportation, distribution and asset management. With annual revenues in excess of $2 billion, NJR is comprised of five key businesses:
| New Jersey Natural Gas is NJRs principal subsidiary that operates and maintains 7,000 miles of natural gas transportation and distribution infrastructure to serve half a million customers in New Jerseys Monmouth, Ocean and parts of Morris and Middlesex counties. |
| NJR Clean Energy Ventures invests in, owns and operates solar and onshore wind projects with a total capacity in excess of 61 megawatts, providing residential and commercial customers with low-carbon solutions. |
| NJR 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. |
| NJR Midstream serves customers from local distributors and producers to electric generators and wholesale marketers through its equity ownership in a natural gas storage facility and a transportation pipeline, both of which are Federal Energy Regulatory Commission, or FERC-regulated investments. |
| NJR Home Services provides heating, central air conditioning, standby generators, solar and other indoor and outdoor comfort products to residential homes and businesses throughout New Jersey and serves approximately 120,000 service contract customers. |
NJR and its more than 900 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®.
-more-
NEW JERSEY RESOURCES ANNOUNCES STRONG FISCAL 2014 FIRST-QUARTER RESULTS; REAFFIRMS FISCAL 2014 EARNINGS GUIDANCE; Strong Results at New Jersey Natural Gas and NJR Energy Services Drive Growth; Moodys Investors Service Upgrades New Jersey Natural Gas Credit Rating
Page 11 of 16
For more information about NJR:
Visit www.njresources.com.
Follow us on Twitter @NJNaturalGas.
Like us on facebook.com/NewJerseyNaturalGas.
Download our free NJR investor relations app for iPad and iPhone.
-more-
NEW JERSEY RESOURCES ANNOUNCES STRONG FISCAL 2014 FIRST-QUARTER RESULTS; REAFFIRMS FISCAL 2014 EARNINGS GUIDANCE; Strong Results at New Jersey Natural Gas and NJR Energy Services Drive Growth; Moodys Investors Service Upgrades New Jersey Natural Gas Credit Rating
Page 12 of 16
RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES
NEW JERSEY RESOURCES
A reconciliation of Net income at NJR to Net financial earnings, is as follows:
Three Months Ended | ||||||||
December 31, | ||||||||
(Thousands) |
2013 | 2012 | ||||||
Net income |
$ | 7,693 | $ | 60,206 | ||||
Add: |
||||||||
Unrealized loss (gain) on derivative instruments and related transactions |
65,652 | (18,334 | ) | |||||
Effects of economic hedging related to natural gas, net of taxes |
(22,880 | ) | (20,748 | ) | ||||
Tax adjustments |
(10,605 | ) | 14,369 | |||||
|
|
|
|
|||||
Net financial earnings |
$ | 39,860 | $ | 35,493 | ||||
|
|
|
|
|||||
Weighted Average Shares Outstanding |
||||||||
Basic |
42,021 | 41,695 | ||||||
Diluted |
42,239 | 41,758 | ||||||
|
|
|
|
|||||
Basic net financial earnings per share |
$ | .95 | $ | 0.85 | ||||
|
|
|
|
|||||
NJR ENERGY SERVICES |
||||||||
The following table is a computation of Financial margin at Energy Services: |
||||||||
Operating revenues |
$ | 637,709 | $ | 503,742 | ||||
Less: Gas purchases |
663,787 | 455,754 | ||||||
Add: |
||||||||
Unrealized loss (gain) on derivative instruments and related transactions |
65,201 | (18,441 | ) | |||||
Effects of economic hedging related to natural gas inventory |
(22,880 | ) | (20,748 | ) | ||||
|
|
|
|
|||||
Financial margin |
$ | 16,243 | $ | 8,799 | ||||
|
|
|
|
|||||
A reconciliation of Operating income at Energy Services, the closest GAAP financial measurement, to Financial margin is as follows: |
||||||||
Operating (loss) income |
$ | (30,043 | ) | $ | 44,526 | |||
Add: |
||||||||
Operation and maintenance expense |
3,585 | 3,215 | ||||||
Depreciation and amortization |
12 | 11 | ||||||
Other taxes |
368 | 236 | ||||||
|
|
|
|
|||||
Subtotal Gross margin |
(26,078 | ) | 47,988 | |||||
Add: |
||||||||
Unrealized loss (gain) on derivative instruments and related transactions |
65,201 | (18,441 | ) | |||||
Effects of economic hedging related to natural gas inventory |
(22,880 | ) | (20,748 | ) | ||||
|
|
|
|
|||||
Financial margin |
$ | 16,243 | $ | 8,799 | ||||
|
|
|
|
|||||
A reconciliation of Energy Services Net income to Net financial earnings, is as follows: |
||||||||
Net (loss) income |
$ | (19,386 | ) | $ | 27,794 | |||
Add: |
||||||||
Unrealized loss (gain) on derivative instruments and related transactions |
65,201 | (18,441 | ) | |||||
Effects of economic hedging related to natural gas |
(22,880 | ) | (20,748 | ) | ||||
Tax adjustments |
(15,561 | ) | 14,409 | |||||
|
|
|
|
|||||
Net financial earnings |
$ | 7,374 | $ | 3,014 | ||||
|
|
|
|
|||||
NJR CLEAN ENERGY VENTURES |
||||||||
A reconciliation of Clean Energy Ventures Net income to Net financial earnings, is as follows: |
||||||||
Net (loss) income |
$ | (1,508 | ) | $ | 5,305 | |||
Add: |
||||||||
Tax adjustments |
5,122 | | ||||||
|
|
|
|
|||||
Net financial earnings |
$ | 3,614 | $ | 5,305 | ||||
|
|
|
|
NEW JERSEY RESOURCES ANNOUNCES STRONG FISCAL 2014 FIRST-QUARTER RESULTS; REAFFIRMS FISCAL 2014 EARNINGS GUIDANCE; Strong Results at New Jersey Natural Gas and NJR Energy Services Drive Growth; Moodys Investors Service Upgrades New Jersey Natural Gas Credit Rating
Page 13 of 16
NEW JERSEY RESOURCES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended | ||||||||
December 31, | ||||||||
(Thousands, except per share data) |
2013 | 2012 | ||||||
OPERATING REVENUES |
||||||||
Utility |
$ | 233,469 | $ | 218,849 | ||||
Nonutility |
644,936 | 517,170 | ||||||
|
|
|
|
|||||
Total operating revenues |
878,405 | 736,019 | ||||||
|
|
|
|
|||||
OPERATING EXPENSES |
||||||||
Gas purchases |
||||||||
Utility |
111,202 | 111,321 | ||||||
Nonutility |
663,530 | 455,427 | ||||||
Operation and maintenance |
42,023 | 40,070 | ||||||
Regulatory rider expenses |
19,832 | 13,982 | ||||||
Depreciation and amortization |
12,566 | 11,303 | ||||||
Energy and other taxes |
17,028 | 16,725 | ||||||
|
|
|
|
|||||
Total operating expenses |
866,181 | 648,828 | ||||||
|
|
|
|
|||||
OPERATING INCOME |
12,224 | 87,191 | ||||||
Other income |
1,127 | 265 | ||||||
Interest expense, net |
6,295 | 5,825 | ||||||
|
|
|
|
|||||
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES |
7,056 | 81,631 | ||||||
Income tax provision |
1,505 | 23,980 | ||||||
Equity in earnings of affiliates |
2,142 | 2,555 | ||||||
|
|
|
|
|||||
NET INCOME |
$ | 7,693 | $ | 60,206 | ||||
|
|
|
|
|||||
EARNINGS PER COMMON SHARE |
||||||||
BASIC |
$ | 0.18 | $ | 1.44 | ||||
DILUTED |
$ | 0.18 | $ | 1.44 | ||||
DIVIDENDS PER COMMON SHARE |
$ | .42 | $ | .40 | ||||
AVERAGE SHARES OUTSTANDING |
||||||||
BASIC |
42,021 | 41,695 | ||||||
DILUTED |
42,239 | 41,758 |
NEW JERSEY RESOURCES ANNOUNCES STRONG FISCAL 2014 FIRST-QUARTER RESULTS; REAFFIRMS FISCAL 2014 EARNINGS GUIDANCE; Strong Results at New Jersey Natural Gas and NJR Energy Services Drive Growth; Moodys Investors Service Upgrades New Jersey Natural Gas Credit Rating
Page 14 of 16
NEW JERSEY RESOURCES
Three Months Ended | ||||||||
December 31, | ||||||||
(Thousands, except per share data) |
2013 | 2012 | ||||||
Operating Revenues |
||||||||
Natural Gas Distribution |
$ | 233,469 | $ | 218,849 | ||||
Energy Services |
637,709 | 503,742 | ||||||
Clean Energy Ventures |
2,173 | 3,179 | ||||||
Midstream |
| | ||||||
Retail and Other |
9,274 | 10,618 | ||||||
|
|
|
|
|||||
Sub-total |
882,625 | 736,388 | ||||||
Eliminations |
(4,220 | ) | (369 | ) | ||||
|
|
|
|
|||||
Total |
$ | 878,405 | $ | 736,019 | ||||
|
|
|
|
|||||
Operating Income (Loss) |
||||||||
Natural Gas Distribution |
$ | 45,303 | $ | 42,744 | ||||
Energy Services |
(30,043 | ) | 44,526 | |||||
Clean Energy Ventures |
(2,506 | ) | (923 | ) | ||||
Midstream |
(347 | ) | (142 | ) | ||||
Retail and Other |
(764 | ) | (63 | ) | ||||
|
|
|
|
|||||
Sub-total |
11,643 | 86,142 | ||||||
Eliminations |
581 | 1,049 | ||||||
|
|
|
|
|||||
Total |
$ | 12,224 | $ | 87,191 | ||||
|
|
|
|
|||||
Equity in Earnings of Affiliates |
||||||||
Midstream |
$ | 2,942 | $ | 3,491 | ||||
Eliminations |
(800 | ) | (936 | ) | ||||
|
|
|
|
|||||
Total |
$ | 2,142 | $ | 2,555 | ||||
|
|
|
|
|||||
Net Income (Loss) |
||||||||
Natural Gas Distribution |
$ | 27,639 | $ | 25,492 | ||||
Energy Services |
(19,386 | ) | 27,794 | |||||
Clean Energy Ventures |
(1,508 | ) | 5,305 | |||||
Midstream |
1,434 | 1,785 | ||||||
Retail and Other |
(201 | ) | (94 | ) | ||||
|
|
|
|
|||||
Sub-total |
7,978 | 60,282 | ||||||
Eliminations |
(285 | ) | (76 | ) | ||||
|
|
|
|
|||||
Total |
$ | 7,693 | $ | 60,206 | ||||
|
|
|
|
|||||
Net Financial Earnings (Loss) |
||||||||
Natural Gas Distribution |
$ | 27,639 | $ | 25,492 | ||||
Energy Services |
7,374 | 3,014 | ||||||
Clean Energy Ventures |
3,614 | 5,305 | ||||||
Midstream |
1,434 | 1,785 | ||||||
Retail and Other |
(201 | ) | (94 | ) | ||||
|
|
|
|
|||||
Sub-total |
39,860 | 35,502 | ||||||
Eliminations |
| (9 | ) | |||||
|
|
|
|
|||||
Total |
$ | 39,860 | $ | 35,493 | ||||
|
|
|
|
|||||
Throughput (Bcf) |
||||||||
NJNG, Core Customers |
21.5 | 20.6 | ||||||
NJNG, Off System/Capacity Management |
35.8 | 32.3 | ||||||
NJRES Fuel Mgmt. and Wholesale Sales |
167.1 | 143.9 | ||||||
|
|
|
|
|||||
Total |
224.4 | 196.8 | ||||||
|
|
|
|
|||||
Common Stock Data |
||||||||
Yield at December 31 |
3.6 | % | 4.0 | % | ||||
Market Price |
||||||||
High |
$ | 46.95 | $ | 46.28 | ||||
Low |
$ | 42.54 | $ | 38.51 | ||||
Close at December 31 |
$ | 46.24 | $ | 39.62 | ||||
Shares Out. at December 31 |
42,059 | 41,717 | ||||||
Market Cap. at December 31 |
$ | 1,944,800 | $ | 1,652,828 | ||||
|
|
|
|
NEW JERSEY RESOURCES ANNOUNCES STRONG FISCAL 2014 FIRST-QUARTER RESULTS; REAFFIRMS FISCAL 2014 EARNINGS GUIDANCE; Strong Results at New Jersey Natural Gas and NJR Energy Services Drive Growth; Moodys Investors Service Upgrades New Jersey Natural Gas Credit Rating
Page 15 of 16
NATURAL GAS DISTRIBUTION
Three Months Ended | ||||||||
(Unaudited) | December 31, | |||||||
(Thousands, except customer & weather data) |
2013 | 2012 | ||||||
Utility Gross Margin |
||||||||
Operating revenues |
$ | 233,469 | $ | 218,849 | ||||
Less: |
||||||||
Gas purchases |
115,544 | 112,161 | ||||||
Energy and other taxes |
14,629 | 14,252 | ||||||
Regulatory rider expense |
19,832 | 13,982 | ||||||
|
|
|
|
|||||
Total Utility Gross Margin |
$ | 83,464 | $ | 78,454 | ||||
|
|
|
|
|||||
Utility Gross Margin, Operating Income and Net Income |
||||||||
Residential |
$ | 50,560 | $ | 48,335 | ||||
Commercial, Industrial & Other |
13,000 | 12,720 | ||||||
Firm Transportation |
17,321 | 15,174 | ||||||
|
|
|
|
|||||
Total Firm Margin |
80,881 | 76,229 | ||||||
Interruptible |
127 | 111 | ||||||
|
|
|
|
|||||
Total System Margin |
81,008 | 76,340 | ||||||
Off System/Capacity Management/FRM/Storage Incentive |
2,456 | 2,114 | ||||||
|
|
|
|
|||||
Total Utility Gross Margin |
83,464 | 78,454 | ||||||
Operation and maintenance expense |
27,252 | 25,191 | ||||||
Depreciation and amortization |
9,835 | 9,277 | ||||||
Other taxes not reflected in gross margin |
1,074 | 1,242 | ||||||
|
|
|
|
|||||
Operating Income |
$ | 45,303 | $ | 42,744 | ||||
|
|
|
|
|||||
Net Income |
$ | 27,639 | $ | 25,492 | ||||
|
|
|
|
|||||
Throughput (Bcf) |
||||||||
Residential |
12.5 | 11.2 | ||||||
Commercial, Industrial & Other |
2.4 | 2.2 | ||||||
Firm Transportation |
5.0 | 4.3 | ||||||
|
|
|
|
|||||
Total Firm Throughput |
19.9 | 17.7 | ||||||
Interruptible |
1.6 | 2.9 | ||||||
|
|
|
|
|||||
Total System Throughput |
21.5 | 20.6 | ||||||
Off System/Capacity Management |
35.8 | 32.3 | ||||||
|
|
|
|
|||||
Total Throughput |
57.3 | 52.9 | ||||||
|
|
|
|
|||||
Customers |
||||||||
Residential |
410,546 | 410,230 | ||||||
Commercial, Industrial & Other |
25,889 | 25,878 | ||||||
Firm Transportation |
65,119 | 57,542 | ||||||
|
|
|
|
|||||
Total Firm Customers |
501,554 | 493,650 | ||||||
Interruptible |
39 | 41 | ||||||
|
|
|
|
|||||
Total System Customers |
501,593 | 493,691 | ||||||
Off System/Capacity Management* |
49 | 42 | ||||||
|
|
|
|
|||||
Total Customers |
501,642 | 493,733 | ||||||
|
|
|
|
|||||
* The number of customers represents those active during the last month of the period. |
||||||||
Degree Days |
||||||||
Actual |
1,667 | 1,567 | ||||||
Normal |
1,625 | 1,634 | ||||||
|
|
|
|
|||||
Percent of Normal |
102.6 | % | 95.9 | % | ||||
|
|
|
|
NEW JERSEY RESOURCES ANNOUNCES STRONG FISCAL 2014 FIRST-QUARTER RESULTS; REAFFIRMS FISCAL 2014 EARNINGS GUIDANCE; Strong Results at New Jersey Natural Gas and NJR Energy Services Drive Growth; Moodys Investors Service Upgrades New Jersey Natural Gas Credit Rating
Page 16 of 16
ENERGY SERVICES
Three Months Ended | ||||||||
(Unaudited) | December 31, | |||||||
(Thousands, except customer, SREC and megawatt) |
2013 | 2012 | ||||||
Operating Income |
||||||||
Operating revenues |
$ | 637,709 | $ | 503,742 | ||||
Gas purchases |
663,787 | 455,754 | ||||||
|
|
|
|
|||||
Gross Margin |
(26,078 | ) | 47,988 | |||||
Operation and maintenance expense |
3,585 | 3,215 | ||||||
Depreciation and amortization |
12 | 11 | ||||||
Energy and other taxes |
368 | 236 | ||||||
|
|
|
|
|||||
Operating (Loss) Income |
$ | (30,043 | ) | $ | 44,526 | |||
|
|
|
|
|||||
Net (Loss) Income |
$ | (19,386 | ) | $ | 27,794 | |||
|
|
|
|
|||||
Financial Margin |
$ | 16,243 | $ | 8,799 | ||||
|
|
|
|
|||||
Net Financial Earnings |
$ | 7,374 | $ | 3,014 | ||||
|
|
|
|
|||||
Gas Sold and Managed (Bcf) |
167.1 | 143.9 | ||||||
|
|
|
|
|||||
CLEAN ENERGY VENTURES |
||||||||
Operating Revenues |
||||||||
SREC sales |
$ | 1,434 | $ | 2,912 | ||||
Energy sales and other |
739 | 267 | ||||||
|
|
|
|
|||||
Total Operating Revenues |
$ | 2,173 | $ | 3,179 | ||||
|
|
|
|
|||||
Depreciation and Amortization |
$ | 2,511 | $ | 1,831 | ||||
|
|
|
|
|||||
Operating (Loss) |
$ | (2,506 | ) | $ | (923 | ) | ||
|
|
|
|
|||||
Income Tax Benefit |
$ | 2,044 | $ | 7,769 | ||||
|
|
|
|
|||||
Net (Loss) Income |
$ | (1,508 | ) | $ | 5,305 | |||
|
|
|
|
|||||
Net Financial Earnings |
$ | 3,614 | $ | 5,305 | ||||
|
|
|
|
|||||
Solar Renewable Energy Certificates Generated |
15,159 | 9,661 | ||||||
|
|
|
|
|||||
Solar Renewable Energy Certificates Sold |
9,364 | 25,000 | ||||||
|
|
|
|
|||||
Megawatts Installed |
3.3 | 9.9 | ||||||
|
|
|
|
|||||
Megawatts Under Construction |
9.5 | 0.382 | ||||||
|
|
|
|
|||||
MIDSTREAM |
||||||||
Equity in Earnings of Affiliates |
$ | 2,942 | $ | 3,491 | ||||
|
|
|
|
|||||
Operation and Maintenance Expense |
$ | 346 | $ | 140 | ||||
|
|
|
|
|||||
Interest Expense |
$ | 398 | $ | 591 | ||||
|
|
|
|
|||||
Net Income |
$ | 1,434 | $ | 1,785 | ||||
|
|
|
|
|||||
RETAIL AND OTHER |
||||||||
Operating Revenues |
$ | 9,274 | $ | 10,618 | ||||
|
|
|
|
|||||
Operating Income |
$ | (764 | ) | $ | (63 | ) | ||
|
|
|
|
|||||
Net (Loss) |
$ | (201 | ) | $ | (94 | ) | ||
|
|
|
|
|||||
Total Customers as of December 31, |
122,645 | 127,732 | ||||||
|
|
|
|
![]() Fiscal 2014 First Quarter Update
February 6, 2014
Exhibit 99.2 |
![]() Regarding Forward-Looking Statements
1
Certain
statements
contained
in
this
presentation
are
forward-looking
statements
within
the
meaning
of
the
Private
Securities
Litigation
Reform
Act
of
1995.
Words
such as
anticipates,
estimates,
expects,
projects,
may,
"will," intends,
expects,
"believes," or should
and similar expressions may identify forward-looking
information and such forward-looking statements are made based upon
managements current expectations and beliefs as of this date concerning future developments and
their potential effect upon New Jersey Resources (NJR or the Company). There can
be no assurance that future developments will be in accordance with managements
expectations or that the effect of future developments on NJR will be those
anticipated by management. NJR cautions persons reading or hearing this presentation that the
assumptions that form the basis for forward-looking statements regarding
NJRs dividend growth goal, NJR's net financial earnings (NFE) for fiscal 2014, forecasted
contribution of business segments to fiscal 2014, long-term financial goals,
growth initiatives and NFE forecasts of NJR, expected contribution by new customers of New
Jersey Natural Gas Company (NJNG) to utility gross margin, expected number of
new customers of NJNG, new sources of utility gross margin at NJNG for 2014 through 2017,
Solar Renewable Energy Certificate (SREC) prices, NJRs effective tax rate,
estimated capital expenditures in fiscal 2014 and beyond by NJNG and NJRCEV, planned natural
gas
vehicle
(NGV)
stations,
the
diversification
of
NJRCEVs
strategy,
Two
Dot
and
Carroll
Area
Wind
farms,
and
NJRES
growth
opportunities
include many factors that are
beyond
the
Companys
ability
to
control
or
estimate
precisely,
such
as
estimates
of
future
market
conditions
and
the
behavior
of
other
market
participants.
The
factors
that
could
cause
actual
results
to
differ
materially
from
NJRs
expectations
include,
but
are
not
limited
to,
weather
and
economic
conditions;
demographic
changes
in
the
NJNG
service
territory
and
their
effect
on
NJNG's
customer growth; volatility of natural gas and other commodity prices and their
impact on NJNG customer usage, NJNG's Basic Gas Supply Service incentive
programs, NJRES' operations and on the Company's risk management efforts; changes in rating agency requirements
and/or credit ratings and their effect on availability and cost of capital to
the Company; the impact of volatility in the credit markets; the ability to comply with debt
covenants;
the
impact
to
the
asset
values
and
resulting
higher
costs
and
funding
obligations
of
NJR's
pension
and
postemployment
benefit
plans
as
a
result
of
downturns in
the financial markets, a lower discount rate, and impacts associated with the
Patient Protection and Affordable Care Act; accounting effects and other risks associated with
hedging activities and use of derivatives contracts; commercial and wholesale
credit risks, including the availability of creditworthy customers and counterparties and
liquidity in the wholesale energy trading market; the ability to
obtain governmental approvals and/or financing for the construction,
development and operation of certain non-regulated energy
investments; risks associated with the management of the Company's joint ventures and partnerships; risks associated with our investments in
renewable energy projects and our investment in an on-shore wind developer,
including the availability of regulatory and tax incentives, logistical risks and potential
delays
related
to
construction,
permitting,
regulatory
approvals
and
electric grid interconnection, the availability of viable projects and NJR's
eligibility for federal investment tax credits (ITC), and production tax
credits (PTC), the future market for SRECs and operational risks related to projects in service; satisfaction of conditions
precedent to acquisition of Carroll Area wind farm; timing of qualifying for
ITCs due to delays or failures to complete planned solar energy projects and the resulting effect
on our effective tax rate and earnings; regulatory approval of NJNGs
planned infrastructure programs; the level and rate at which NJNG's costs and expenses (including
those related to restoration efforts resulting from Superstorm Sandy) are
incurred and the extent to which they are allowed to be recovered from customers through the
regulatory process; access to adequate supplies of natural gas and dependence on
third-party storage and transportation facilities for natural gas supply; operating risks
incidental
to
handling,
storing,
transporting
and
providing
customers
with
natural
gas;
risks
related
to
our
employee
workforce,
including a work stoppage; the regulatory
and pricing policies of federal and state regulatory agencies; the possible
expiration of the NJNG Conservation Incentive Program (CIP); the costs of compliance with
present and future environmental laws, including potential climate
change-related legislation; risks related to changes in accounting standards; the disallowance of
recovery of environmental-related expenditures and other regulatory changes;
environmental-related and other litigation and other uncertainties; risks related to cyber-
attack of failure of information technology systems; and the impact of natural
disasters, terrorist activities, and other extreme events on our operations and customers,
including
any
impacts
to
utility
gross
margin,
and
restoration
costs
resulting
from
Superstorm
Sandy.
The
aforementioned
factors
are
detailed
in
the
Risk
Factors
sections
of our Annual Report on Form 10-K
filed on November 26, 2013, as filed with the Securities and Exchange
Commission (SEC) which is available on the SECs website at
sec.gov.
Information included in this presentation 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.
1 |
![]() Disclaimer Regarding Non-GAAP Financial Measures
This presentation includes the non-GAAP measures NFE (losses), 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
the
companys
operating
performance,
these
measures
should
not
be
considered
an
alternative
to, or more meaningful than, operating income as determined in accordance with
GAAP. This information has been provided pursuant to the requirements of
SEC Regulation G. NFE (losses) and financial margin exclude unrealized
gains or losses on derivative instruments related to the companys unregulated
subsidiaries
and
certain
realized
gains
and
losses
on
derivative
instruments
related
to
natural
gas
that
has
been
placed
into
storage
at
NJRES. Volatility associated with the change in value of these financial and
physical commodity contracts is reported in 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
NJRCEV, as such adjustment is related to tax credits generated by NJRCEV.
NJNGs utility gross margin represents the results of revenues less
natural gas costs, sales and other taxes and regulatory rider expenses,
which are key components of the companys operations that move in relation to each other. Natural gas costs, sales and other
taxes and regulatory rider expenses are passed through to customers and,
therefore, have no effect on gross margin. Management uses these
non-GAAP financial measures as supplemental measures to other GAAP results to provide a more
complete understanding of the companys performance. Management believes
these non-GAAP measures are more reflective of the companys
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 NJRs non-GAAP financial
measures, please see NJRs most recent Form 10-K, Item 7 and most recent
Form 10-Q, Part I, Item 2. 2
2 |
![]() ![]() First Quarter NFE
3
($MM)
Company
Q1 2014
Q1 2013
Change
New Jersey Natural Gas
$27.6
$25.5
$2.1
NJR Energy Services
7.4
3.0
4.4
NJR Clean Energy
3.6
5.3
(1.7)
NJR Midstream
1.4
1.8
(0.4)
NJR Home Services/Other
(.1)
(.1)
-
Total
$39.9
$35.5
$4.4
Per basic share
$.95
$.85
$.10 |
![]() First Quarter Performance Drivers
New Jersey Natural Gas
NFE of $27.6 million compared with $25.5 million in Q1 last year
Strong utility gross margin growth at NJNG
NJR Energy Services
NFE of $7.4 million vs. $3 million in Q1 last year
Higher financial margin from colder weather
Pipeline and storage portfolio growth
Sales to major customers
4
($ thousands)
AIP
$2,126
Sandy/Other
1,370
Customer Growth
723
SAVEGREEN
446
BGSS Incentives
341
Total Utility Gross Margin Growth
$5,006 |
![]() First Quarter Performance Drivers
NJR Clean Energy Ventures
NFE of $3.6 million vs. $5.3 million in Q1 last year
Timing of Solar Renewable Energy Certificates (SREC) sales
NJR Midstream
NFE of $1.4 million vs. $1.8 million in Q1 last year
Lower transportation values at Iroquois and maintenance expense at
Steckman Ridge
NJR Home Services
Loss of $574,000 vs. $247,000 loss in Q1 last year
First quarter fiscal 2013 positively impacted by Sandy
Lower installation sales
5 |
![]() Affirm
Fiscal
2014
NFE
Per
Share
Guidance
-
$2.75
to
$2.95
6
Regulated businesses expected to
contribute
65-80 percent of total NFE
New Jersey
Natural Gas
60
-70%
NJR Midstream
5-10%
NJR Clean Energy
Ventures
10-20%
NJR Home
Services
2-5%
NJR Energy
Services
5-15% |
![]() Goal is to grow dividend 5 percent annually
Growing and Sustainable Dividend
* Current annual rate
** Based on NJR net financial earnings
*** Peer group average based on 2013 earnings estimates and indicated dividend
from Bloomberg. Peer group: ATO, GAS, LG, NWN, PNY,
SJI, SWX, VVC and WGL 7
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
2007
2008
2009
2010
2011
2012
2013
2014*
$1.01
$1.12
$1.24
$1.36
$1.44
$1.54
$1.62
$1.68
Dividend Growth
0%
16%
33%
49%
65%
2007
2008
2009
2010
2011
2012
2013
Peer Group***
48%
50%
52%
55%
56%
57%
59%
63%
Payout Ratio** |
![]() 2,129 new customers in the
first
quarter
of
fiscal
2014,
up
8.7
percent over Q1 last year
980 new construction
customers;
up
16 percent over
Q1
last year
1,149 conversions from other
fuels;
up
3
percent
over
Q1
last
year
137 existing customer heat
conversions;
more
than
double
Q1 last year
8
Strong Customer Growth Continues
Over next two fiscal years, NJNG expects to add a total
of 14,000-16,000 new customers
|
![]() 9
Constructive regulatory environment and support of public policy
objectives create growth opportunities for NJNG
In place through June 2015
Investment of up to $85 million
New programs added
First Quarter Results:
More than $215 million in economic activity for New Jersey since
inception in 2009
The SAVEGREEN Project
®
Over 1,300 home energy audits
634 on-bill repayments, totaling over $6 million
Over 2,050 grants paid, totaling over $3.8 million
|
![]() Diversified and Growing Utility Gross Margin
Incremental utility gross margin expected to more than double
by fiscal 2017
10 |
![]() Capital of Over $1 Billion Drives Long-Term Growth
NJNG Expects Base Rate Case Resolution by Fiscal 2017
11
NJNG Capital Investment Estimates
($mm)
2009-
2012
Actual
2013A
2014E
2015E
2016E
2017E
Total
Customer Growth
$79.4
$24.5
$24.7
$25.6
$25.5
$25.5
$205.2
Maintenance/Other
177.4
42.5
63.3
55.9
48.1
40.6
427.8
AIP/SAFE
136.7
45.3
31.6
33.7
39.1
-
286.4
Superstorm Sandy
-
26.1
5.3
5.2
-
-
36.6
NGV Advantage
-
1.0
9.0
-
-
-
10.0
NJ RISE
-
-
4.6
13.0
12.0
12.0
41.6
Liquefaction/LNG
-
-
16.0
16.3
3.4
-
35.7
Southern Reliability
-
-
2.3
12.3
80.6
34.8
130.0
SAVEGREEN
36.5
24.0
42.5
42.5
-
-
145.5
Total
$430.0
$163.4
$199.3
$204.5
$208.7
$112.9
$1,318.8 |
![]() Distributed Power Portfolio Strategy
12
Long-term goal to maintain NJRCEV at 10 to 20 percent of NFE
Solar
Supports New Jerseys Energy Master Plan
Improving SREC Fundamentals
Eliminate reliance on solar ITC by January 2017
Wind
29 states and the District of Columbia have Renewable Portfolio
Standard (RPS)
Production-based tax credits (PTC)
Long-term Power Purchase Agreements (PPAs) and PTCs provide
annuity-like returns
Combined Heat and Power
Longer-term opportunities |
![]() Improving SREC Fundamentals
NJ increased solar RPS effective June 2013
Solar construction activity has moderated
SREC prices have responded
SREC production forecasted to grow from approximately 65,000 in
fiscal 2013 to 174,000 in fiscal 2017
13
Karbone Bid Prices
Capacity Additions by Month (MW)
SREC Prices by Month ($/SREC)
85.0
7.9 |
![]() Two Dot Wind Farm
Announced on October 23, 2013
9.7 MW utility scale wind farm
project
located in Montana, east of Helena
Approximately $22 million
investment;
PTC eligible
25-year PPA in place to sell power
to NorthWestern Energy to support their
RPS requirement
Strong partners
GE (Turbines),
Mortenson Construction (EPC
Contractor)
Current Status:
Construction work underway
Commercial operations on track for
summer 2014
14
NJR expects Two Dot to contribute to earnings in
fiscal fourth quarter 2014 |
![]() Carroll Area Wind Farm
Second wind project for CEV
20 MW wind farm project located
65 miles NW of Des Moines in
Carroll County, Iowa
Approximately $42 million
investment; PTC eligible
25-year PPA with MidAmerican
Energy
Commercial operation expected in
the spring of 2015
15
NJR expects nearly 30 MW of wind energy to be in place by 2015
|
![]() NJRES: Strong Performance in a Changing Market
NFE of $7.4 million vs. $3 million in Q1 last year
Higher financial margin from colder weather
Growth opportunities from physical natural gas sales and producer
services
Providing energy solutions for diverse customers in the Marcellus Shale
and other natural gas regions
Customers include Producers, Utilities, Power Generators, Pipelines and
Industrials
Holds
1.1
Bcf/day
of
firm
transportation
and
more
than
33
Bcf
of
storage
throughout the U.S. and Canada
16 |
![]() 4 to 7 Percent Average Long-Term Annual NFE
Growth Strategies
Regulated Businesses
Significant increase in NJNG
regulated infrastructure
investments
Diversified sources of NJNG
utility gross margin
November 2015 base
rate filing
Targeted growth
from
NJR Midstream
Non-Regulated Businesses
Diversify distributed power
portfolio
Expand onshore wind
investments
Steady contributions from
NJR Energy Services
Expanded products and
markets at NJR Home Services
17 |
![]() NJR Affirms Long-Term Financial Goals
Achieve average long-term NFE growth of 4 to 7 percent
Significant capital investment in regulated business to support customer
growth and maintain safe, reliable and resilient service
New customers and regulatory initiatives generate significant NJNG utility
gross margin growth
Provide annual dividend growth of at least 5 percent
Targeted payout ratio of 60 to 65 percent
Expect at least 65 to 80 percent of earnings from Regulated Businesses
Supported by constructive and collaborative regulatory relationships
18 |
![]() Fiscal 2014 First Quarter Update
February 6, 2014 |
Exhibit 99.3
Date: February 5, 2014 | ||
Media Contact: | Investor Contacts: | |
Michael Kinney | Joanne Fairechio | |
732-938-1031 | 732-378-4967 | |
mkinney@njresources.com | fairechio@njresources.com | |
Dennis Puma | ||
732-938-1229 | ||
dpuma@njresources.com |
NJR CLEAN ENERGY VENTURES ANNOUNCES
20 MEGAWATT ONSHORE WIND PROJECT
Second Wind Farm Project Continues Diversification of
Distributed Power Portfolio
WALL, N.J. NJR Clean Energy Ventures (NJRCEV), the unregulated distributed power subsidiary of New Jersey Resources (NJR), today announced that it has agreed to acquire its second onshore wind project. The Carroll Area wind farm project will be located on 1,100 acres of rural agricultural land in Carroll County, Iowa, approximately 65 miles northwest of Des Moines. NJRCEV will invest approximately $42 million to construct, own and operate the wind farm with a total capacity of 20 megawatts.
With the Carroll Area wind farm project, NJR Clean Energy Ventures continues to successfully execute its distributed power strategic plan, said Laurence M. Downes, chairman and CEO of New Jersey Resources. As renewable energy becomes an increasingly larger and important part of our nations energy future, we will continue to identify investment opportunities that strengthen our distributed power portfolio, reduce our reliance on investment tax credits from solar investments, benefit our company and shareowners and are consistent with our core values of quality service and environmental stewardship.
NJRCEV agreed to acquire the shovel-ready Carroll Area wind farm project from OwnEnergy, Inc., a developer of midsize and community wind projects. It will be the second wind farm project purchased from OwnEnergy; the first was the Montana-based Two Dot wind farm in 2013. NJRCEV maintains an approximate 19 percent ownership position in OwnEnergy and holds an option to purchase projects that fit its investment profile.
The energy produced at the Carroll Area wind farm, as well as the renewable attributes, will be sold through a 25-year power purchase agreement with MidAmerican Energy, Iowas largest energy company serving approximately 734,000 electric customers in Iowa, Illinois and South Dakota and more than 712,000 natural gas customers in Iowa, Illinois, South Dakota and Nebraska. MidAmerican is owned by Berkshire Hathaway, Inc.
NJR CLEAN ENERGY VENTURES ANNOUNCES 20 MEGAWATT
ONSHORE WIND PROJECT
Second Wind Farm Project Continues Diversification of Distributed Power Portfolio
Page 2 of 3
-more-
Additionally, NJRCEV expects the wind farm will qualify for federal production tax credits (PTCs), which are based on kilowatt-hour output. All PTCs generated by the Carroll Area wind farm will be retained by NJR.
NJRCEV will engage Mortenson Construction for the engineering, procurement and construction of the project. A leader in renewable energy construction, Mortenson has completed over 124 wind projects, totaling over 13,000 megawatts of clean, renewable energy, since 1995. NJRCEV expects the wind farm will be operational by spring 2015.
NJRCEV invests in, owns and operates distributed power projects that generate clean energy and provide low-carbon energy solutions. These solutions benefit its customers, while providing growth opportunities for shareholders. To date, NJRCEVs approach has focused on commercial and residential solar project development in New Jersey and expanded to include onshore wind projects in the Midwestern United States.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of 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 NJRs ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants. Words such as will, anticipates, estimates, expects, projects, intends, plans, believes, may, should and similar expressions may identify forward-looking information and such forward-looking statements are made based upon managements current expectations 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 managements expectations or that the effect of future developments on NJR will be those anticipated by management. Forward-looking information in this filing includes, but is not limited to, certain statements regarding the acquisition of the Carroll Area wind farm, size of NJRCEVs investment in the Carroll Area wind farm, estimates regarding the capacity and date of completion of the wind farm, NJRCEVs qualification for PTCs related to Carroll Area wind farm, and the diversification of NJRs distributed power portfolio.
Factors that could cause actual results to differ materially from the companys expectations include, but are not limited to, conditions precedent to the closing of the acquisition of the Carroll Area wind farm, weather and economic conditions; the ability to obtain governmental approvals and/or financing for the construction, development and operation of certain non-regulated energy investments; risks associated with our investments in renewable energy projects and our investment in an onshore wind developer, including the availability of regulatory and tax incentives, logistical risks and potential delays related to construction, permitting, regulatory approvals and electric grid interconnection, and NJRs eligibility for PTCs;. NJR does not, by including this paragraph, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events. More detailed information about these factors is set forth under the heading Risk Factors in NJRs filings with the Securities and Exchange Commission (SEC) including its most recent Form 10-K, filed on November 26, 2013.
NJR CLEAN ENERGY VENTURES ANNOUNCES 20 MEGAWATT
ONSHORE WIND PROJECT
Second Wind Farm Project Continues Diversification of Distributed Power Portfolio
Page 3 of 3
-more-
About New Jersey Resources
New Jersey Resources (NYSE: NJR) is a Fortune 1000 company that provides safe and reliable natural gas and clean energy services, including transportation, distribution and asset management. With annual revenues in excess of $2 billion, NJR is comprised of five key businesses:
| New Jersey Natural Gas is NJRs principal subsidiary that operates and maintains 7,000 miles of natural gas transportation and distribution infrastructure to serve approximately half a million customers in New Jerseys Monmouth, Ocean and parts of Morris and Middlesex counties. |
| NJR Clean Energy Ventures invests in, owns and operates solar and onshore wind projects with a total capacity in excess of 56 megawatts, providing residential and commercial customers with low-carbon solutions. |
| NJR 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. |
| NJR Midstream serves customers from local distributors and producers to electric generators and wholesale marketers through its equity ownership in a natural gas storage facility and a transportation pipeline, both of which are Federal Energy Regulatory Commission, or FERC-regulated investments. |
| NJR Home Services provides heating, central air conditioning, standby generators, solar and other indoor and outdoor comfort products to residential homes and businesses throughout New Jersey and serves approximately 120,000 service contract customers. |
NJR and its more than 900 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:
Visit www.njresources.com.
Follow us on Twitter @NJNaturalGas.
Like us on facebook.com/NewJerseyNaturalGas.
Download our free NJR investor relations app for iPad and iPhone.
# # #
Exhibit 99.4
NJR CONTACTS: | ||
JOANNE FAIRECHIO, DIRECTOR, INVESTOR RELATIONS | 732-378-4967 | |
DENNIS PUMA, MANAGER, INVESTOR RELATIONS | 732-938-1229 | |
PATRICK MIGLIACCIO, TREASURER | 732-938-1114 |
February 5, 2014
NJR CLEAN ENERGY VENTURES INVESTS IN SECOND ONSHORE WIND FARM PROJECT
Continues Strategy of Diversifying Clean Energy Portfolio
OVERVIEW
On February 5, 2014, NJR Clean Energy Ventures (NJRCEV), a subsidiary of New Jersey Resources (NJR), announced that it has agreed to acquire its second onshore wind farm project. The Iowa-based 20-megawatt (MW) Carroll County Area utility scale wind farm project will be purchased from OwnEnergy, Inc. NJRCEVs approximate 19 percent ownership interest in OwnEnergy provides it with the option to purchase projects that fit its investment profile. Carroll Area will be the second OwnEnergy project purchased by NJRCEV; the first was Montana-based Two Dot in late October 2013. NJRCEV will invest approximately $42 million in the Carroll Area project and be responsible for constructing, owning and operating the wind farm. The energy produced will be sold to MidAmerican Energy under a 25-year power purchase agreement (PPA). NJR expects the project to qualify for a 10-year federal production tax credit (PTC), which is based on energy production. All PTCs generated will be utilized by NJR. NJRCEV expects the Carroll Area wind farm will be operational in the spring of 2015.
PROJECT DETAILS
Location: Carroll County, Iowa, located 65 miles northwest of Des Moines. The site covers 1,100 acres of rural agricultural land leased from 10 local land owners.
Description: Nine Siemens turbines with total capacity of 20 MW.
Contractor: Mortenson Construction will provide project engineering, procurement, and construction.
Proposed Customer: The energy and all renewable attributes will be sold to MidAmerican Energy, Iowas largest energy company. MidAmerican serves approximately 733,985 electric customers in Iowa, Illinois and South Dakota and more than 712,022 natural gas customers in Iowa, Illinois, South Dakota and Nebraska. Iowa is a renewable portfolio standard state where investor-owned utilities are required |
![]() |
to own and produce and/or purchase 105 MW annually of renewable generation capacity. Today, Iowa has in excess of 5,100 MW of wind capacity generating at least 24.5 percent of Iowas electricity needs as reported by the American Wind Energy Association.
Total Investment: Approximately $42 million.
Estimated Construction and Start Date: Construction of turbine foundations and access roads began in December 2013 with turbine delivery and erection scheduled by year-end 2014. Commercial operation is expected in the spring of 2015.
Projected Earnings Impact: NJR expects the Carroll Area wind farm to contribute to earnings beginning third quarter of fiscal 2015.
ABOUT NEW JERSEY RESOURCES
New Jersey Resources (NYSE: NJR) is a Fortune 1000 company that provides safe and reliable natural gas and renewable energy services, including transportation, distribution and asset management. With annual revenues of $2 billion, NJR is comprised of five key businesses:
| New Jersey Natural Gas, NJRs principal subsidiary, operates and maintains 7,000 miles of natural gas transportation and distribution infrastructure to serve approximately half a million customers in New Jerseys Monmouth, Ocean and parts of Morris and Middlesex counties. |
| NJR Clean Energy Ventures is a leading renewable energy company that invests in, owns and operates solar and onshore wind projects with a total capacity in excess of 56 megawatts, providing residential and commercial customers with low carbon solutions. |
| NJR Energy Services manages a diversified portfolio of natural gas transportation and storage assets and provides customized energy solutions to its customers across North America. |
| NJR Home Services is a provider of heating, central air conditioning, standby generators, solar and other indoor and outdoor comfort products to residential homes and businesses throughout New Jersey and serves approximately 120,000 service contract customers. |
| NJR Midstream invests and maintains an equity ownership in a natural gas storage facility and a transportation pipeline, and serves companies from local distributors and producers to electric generators and wholesale marketers. |
NJR and its more than 900 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®.
FORWARD LOOKING STATEMENTS
This investor fact sheet contains forward-looking statements within the meaning of 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 NJRs 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, intends, plans, believes, may, should, will and similar expressions may identify forward-looking information and such forward-looking statements are made based upon managements current expectations 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 managements expectations or that the effect of future developments on NJR will be those anticipated by management. Forward-looking information in this filing includes, but is not limited to, certain statements regarding the acquisition of the Carroll Area wind farm, the size of NJRCEVs investment in the Carroll Area wind farm, estimates regarding the date of completion of the wind farm and NJRCEVs qualification for PTCs related to the Carroll Area wind farm. Factors that could cause actual results to differ materially from the companys expectations include, but are not limited to, conditions precedent the closing
2
of the acquisition of the Carroll Area wind farm, weather and economic conditions; the ability to obtain governmental approvals and/or financing for the construction, development and operation of certain non-regulated energy investments; risks associated with our investments in renewable energy projects, including logistical risks and potential delays related to construction, permitting, regulatory approvals and electric grid interconnection, NJRs eligibility for PTCs and operational risks related to projects in service. Additional information and other factors are set forth under the heading Risk Factors in NJRs filings with the Securities and Exchange Commission (SEC) including its most recent Form 10-K. Information included in this fact sheet is representative as of today only and while NJR periodically reassesses material trends and uncertainties affecting NJRs results of operations and financial condition in connection with its preparation of managements 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.
3
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