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New Jersey Resources: Strong Growth and Positive Outlook

New Jersey Resources: Strong Growth and Positive Outlook

New Jersey Resources Corporation ((NJR)) has held its Q3 earnings call. Read on for the main highlights of the call.

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New Jersey Resources Corporation (NJR) recently held its earnings call, revealing a strong financial and operational performance across its business segments. The sentiment during the call was overwhelmingly positive, driven by increased fiscal guidance, substantial growth in clean energy ventures, and solid customer growth in natural gas services. Despite potential regulatory and market risks, the company’s robust achievements and strategic advancements during the quarter were well-received.

Increased Fiscal 2025 NFEPS Guidance

NJR has raised the lower end of its fiscal 2025 Net Financial Earnings Per Share (NFEPS) guidance by $0.05, now expecting between $3.20 to $3.30 per share. This adjustment reflects the strong operating performance across its various business segments, signaling confidence in sustained growth and profitability.

Robust Investment and Growth in Clean Energy Ventures

The Clean Energy Ventures (CEV) division has been a focal point of NJR’s growth strategy, with 63 megawatts placed into service this year. Looking ahead, the company has a pipeline of 131 megawatts of solar projects scheduled over the next two years, representing approximately $350 million in investment, underscoring NJR’s commitment to expanding its clean energy footprint.

Strong Capital Investment in SAVEGREEN Program

NJR has significantly increased its capital projections for the SAVEGREEN program by over 30%, with expectations now set between $90 to $95 million for 2025. This substantial investment highlights NJR’s dedication to enhancing energy efficiency and sustainability initiatives.

Adelphia Gateway Settlement Progress

Progress has been made in the Adelphia Gateway rate case, with NJR reaching a settlement in principle. The company anticipates resolving this matter by the end of the year, which could provide greater regulatory clarity and operational stability.

Significant Increase in Year-to-Date NFEPS

Year-to-date Net Financial Earnings (NFE) have reached $313.4 million or $3.13 per share, marking an impressive increase of nearly 55% compared to the previous year. This growth is a testament to NJR’s effective management and strategic initiatives.

NJNG Customer Growth

New Jersey Natural Gas (NJNG), a subsidiary of NJR, now serves approximately 588,000 customers. The majority of these customers are residential and located in economically vibrant counties, indicating strong demand and growth potential in its service areas.

Potential Regulatory and Market Risks

While the overall sentiment was positive, NJR acknowledged potential regulatory and market risks that could impact future results. These forward-looking risks highlight the importance of navigating regulatory landscapes and market conditions carefully.

Dependency on Regulatory Approvals

Future growth and project expansions, such as those involving Leaf River and SAVEGREEN, depend on obtaining necessary regulatory approvals and favorable market conditions. This dependency underscores the importance of regulatory compliance and strategic planning in NJR’s growth trajectory.

Forward-Looking Guidance

During the earnings call, NJR provided forward-looking guidance, raising the lower end of its full-year NFEPS guidance to a range of $3.20 to $3.30 per share. The company also increased its capital expenditure projections due to utility investments, particularly under the SAVEGREEN program. With a focus on utility infrastructure and clean energy investments, NJR expects its fiscal 2025 and 2026 CapEx to be between $1.3 billion and $1.6 billion. Approximately 65% of its full-year NFEPS is anticipated to come from utility operations, highlighting the stability of its core business.

In conclusion, New Jersey Resources Corporation’s earnings call painted a picture of a company on a strong growth trajectory, with positive sentiment driven by strategic investments and operational excellence. Key takeaways include increased fiscal guidance, robust clean energy ventures, and significant capital investments. While potential risks exist, NJR’s strategic advancements and focus on sustainability position it well for future success.

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