New Jersey Resources Increases Fiscal 2021 Net Financial Earnings Guidance
March 15 2021 - 7:00AM
Business Wire
New Jersey Resources (NYSE: NJR) today announced an increase to
its fiscal 2021 net financial earnings (NFE) guidance to a range of
$1.85 - $1.95 per share, from the previously announced range of
$1.55 - $1.65 per share.
The increase in guidance is due primarily to
better-than-anticipated results at NJR Energy Services (Energy
Services). During the second quarter of fiscal 2021, a period of
widespread cold across the U.S. led to unusually high demand for
natural gas. Energy Services’ geographically diverse storage and
transportation assets enabled that business to meet the needs of
its customers during a time of unprecedented volatility. Leaf
River, NJR’s natural gas storage facility located in Mississippi,
also performed well, providing uninterrupted service to its
customers under challenging circumstances. The updated NFE guidance
range of $1.85 - $1.95 per share is net of estimated reserves for
bad debt exposure.
The chart below represents the NFE contributions NJR currently
expects from its businesses in fiscal 2021:
Company
Previous Fiscal 2021E
NFE Contribution
Updated Fiscal 2021E NFE
Contribution
New Jersey Natural Gas
65% - 72%
56% - 61%
Clean Energy Ventures
15% - 20%
10% - 15%
Storage & Transportation
8% - 10%
7% - 11%
Energy Services
3% - 4%
18% - 23%
Home Services
0% - 2%
0% - 2%
“Surrounding our core utility with a diversified group of
complementary businesses has benefited NJR over the years and this
guidance increase is no exception. This result is a credit to the
deep experience and hard work of the Energy Services team,” said
Steve Westhoven, president and CEO of New Jersey Resources.
Forward-Looking Statements:
This 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 release include, but
are not limited to, certain statements regarding NJR’s fiscal 2021
NFE guidance, forecasted contribution of business segments to NJR’s
NFE for fiscal 2021 and the risks associated with bad debt
expense.
Additional information and factors that could cause actual
results to differ materially from NJR’s expectations are contained
in NJR’s filings with the U.S. Securities Exchange Commission
(“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 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 release includes the non-GAAP financial measure NFE per
share. As an indicator of NJR’s operating performance, this measure
should not be considered an alternative to, or more meaningful
than, net income per share as determined in accordance with GAAP.
This information has been provided pursuant to the requirements of
SEC Regulation G. NFE excludes unrealized gains or losses on
derivative instruments related to the company’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, 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 Energy
Services.
Management uses this non-GAAP financial measure as a
supplemental measure to other GAAP results to provide a more
complete understanding of NJR’s performance. Management believes
this non-GAAP financial measure is more reflective of NJR’s
business model, provides transparency to investors and enables
period-to-period comparability of financial performance. For a full
discussion of NJR’s non-GAAP financial measures, please see NJR’s
2020 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, Morris,
Middlesex and Burlington counties.
- NJR Clean Energy Ventures invests in, owns and operates
solar projects with a total capacity of more than 357 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.
- Storage & Transportation serves customers from local
distributors and producers to electric generators and wholesale
marketers through its ownership of Leaf River Energy Center and the
Adelphia Gateway Pipeline Project, as well as our 50 percent equity
ownership in the Steckman Ridge natural gas storage facility, and
our 20 percent equity interest in the PennEast Pipeline
Project.
- NJR 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 nearly 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210315005103/en/
Media Contact: Michael Kinney 732-938-1031
mkinney@njresources.com
Investor Contact: Dennis Puma 732-938-1229
dpuma@njresources.com
New Jersey Resources (NYSE:NJR)
Historical Stock Chart
From Aug 2024 to Sep 2024
New Jersey Resources (NYSE:NJR)
Historical Stock Chart
From Sep 2023 to Sep 2024