Today, New Jersey Resources (NYSE: NJR) reported results for the
first-quarter of fiscal 2021. Highlights include:
- Consolidated net income of $81.0 million, compared with $75.8
million in the first-quarter of fiscal 2020
- Consolidated net financial earnings (NFE), a non-GAAP financial
measure, of $44.7 million, or $0.46 per share, compared with $34.9
million, or $0.38 per share, in the first quarter of fiscal
2020
- Reaffirmed NFE per share (NFEPS) guidance of $1.55 to $1.65 for
fiscal 2021
- Increased NFEPS guidance for fiscal 2022 by $0.15 to a range of
$2.20 to $2.30
- Entered into Asset Management Agreements (AMAs) to release
certain natural gas transportation contracts of NJR Energy Services
for aggregate cash proceeds of approximately $500 million payable
over 10 years
- New Jersey Natural Gas (NJNG) received approval from the New
Jersey Board of Public Utilities (BPU) for the five-year, $150
million Infrastructure Investment Program (IIP)
- NJNG filed for SAVEGREEN 2020, a three-year, $264 million
energy efficiency program
First-quarter fiscal 2021 net income totaled $81.0 million, or
$0.84 per share, compared with $75.8 million, or $0.82 per share,
during the same period in fiscal 2020. First-quarter fiscal 2021
NFE totaled $44.7 million, or $0.46 per share, compared with $34.9
million, or $0.38 per share, during the same period in fiscal
2020.
"Our strong results for the first-quarter were consistent with
our expectations and put us on track to meet our guidance for the
fiscal year," said Steve Westhoven, President and CEO of New Jersey
Resources. "By entering into the AMAs at Energy Services, we are
delivering on our commitment to generate more stable fee-based
revenue. Our outlook for the fiscal year is supported by our core
utility business, New Jersey Natural Gas, and our growing portfolio
of clean energy assets at Clean Energy Ventures."
Effective October 1, 2020, NJR changed its method of accounting
for Investment Tax Credits (ITCs) from the flow through method to
the deferred method. The change will be applied retrospectively to
all periods presented in our first-quarter fiscal 2021 Form 10-Q
filed (Form 10-Q) with the U.S. Securities and Exchange Commission
(SEC). Our historical financial reporting presented herein has been
retrospectively revised to apply this change. For additional
details, please refer to our Form 10-Q.
Key
Performance Metrics
Three Months Ended
December 31,
($ in Thousands)
2020
2019
Net income
$
81,045
$
75,752
Basic EPS
$
0.84
$
0.82
Net financial earnings
$
44,657
$
34,931
Basic net financial earnings per
share
$
0.46
$
0.38
A reconciliation of net income to NFE for the three months ended
December 31, 2020, and 2019, is provided below.
Three Months Ended
December 31,
(Thousands)
2020
2019
Net income
$
81,045
$
75,752
Add:
Unrealized (gain) on derivative
instruments and related transactions
(37,491
)
(41,766
)
Tax effect
8,913
9,931
Effects of economic hedging related to
natural gas inventory
(7,532
)
(8,887
)
Tax effect
1,790
2,112
Net income to NFE tax adjustment
(2,068
)
(2,211
)
Net financial earnings
$
44,657
$
34,931
Weighted Average Shares
Outstanding
Basic
96,114
91,911
Diluted
96,415
92,320
Basic earnings per share
$
0.84
$
0.82
Add:
Unrealized (gain) on derivative
instruments and related transactions
(0.39
)
(0.45
)
Tax effect
0.09
0.11
Effects of economic hedging related to
natural gas inventory
(0.08
)
(0.10
)
Tax effect
0.02
0.02
Net income to NFE tax adjustment
(0.02
)
(0.02
)
Basic net financial earnings per
share
$
0.46
$
0.38
NFE is a financial measure not calculated in accordance with
Generally Accepted Accounting Principles (GAAP) of the United
States. It is a measure of earnings based on eliminating timing
differences surrounding the recognition of certain gains or losses,
net of applicable tax adjustments, to effectively match the
earnings effects of the economic hedges with the physical sale of
natural gas, Solar Renewable Energy Certificates (SRECs) and
foreign currency contracts. NFE/net financial loss eliminates the
impact of volatility to GAAP earnings associated with unrealized
gains and losses on derivative instruments in the current period.
For further discussion of this financial measure, please see the
explanation below under “Non-GAAP Financial Information.”
GAAP requires NJR, during the interim periods, to estimate its
annual effective tax rate and use this rate to calculate the
year-to-date tax provision. NJR also determines an annual estimated
effective tax rate for NFE purposes and calculates a quarterly tax
adjustment based on the differences between its forecasted net
income and its forecasted NFE for the fiscal year.
A table detailing NFE for the three months ended December 31,
2020, and 2019, is provided below.
Net Financial
Earnings (Loss) by Business Unit
Three Months Ended
December 31,
(Thousands)
2020
2019
New Jersey Natural Gas
$
49,467
$
43,856
Clean Energy Ventures
(10,274
)
(8,179
)
Storage and Transportation
3,508
3,004
Energy Services
1,500
(5,122
)
Home Services and Other
(62
)
1,109
Subtotal
44,139
34,668
Eliminations
518
263
Total
$
44,657
$
34,931
NJR Reaffirms Fiscal 2021 and Increases Fiscal 2022 NFE
Guidance:
NJR reaffirmed fiscal 2021 NFE guidance range of $1.55 to $1.65
per share, subject to the risks and uncertainties identified below
under “Forward-Looking Statements.” The following chart represents
NJR’s current expected contributions from its subsidiaries for
fiscal 2021:
Company
Expected Fiscal 2021 Net
Financial Earnings Contribution
New Jersey Natural Gas
65 to 72 percent
Clean Energy Ventures
15 to 20 percent
Storage and Transportation
8 to 10 percent
Energy Services
3 to 4 percent
Home Services and Other
0 to 2 percent
NJR also increased its fiscal 2022 NFE guidance to a range of
$2.20 to $2.30 from its previously issued guidance range of $2.05
to $2.15. The increase to fiscal 2022 NFE guidance is due to the
expected impact of the recently announced AMAs at Energy
Services.
In providing fiscal 2021 and fiscal 2022 NFE guidance,
management is aware there could be differences between reported
GAAP earnings and NFE due to matters such as, but not limited to,
the positions of our energy-related derivatives. Management is not
able to reasonably estimate the aggregate impact or significance of
these items on reported earnings and, therefore, is not able to
provide a reconciliation to the corresponding GAAP equivalent for
its operating earnings guidance without unreasonable efforts.
New Jersey Natural Gas
NJNG reported first-quarter fiscal 2021 NFE of $49.5 million,
compared to NFE of $43.9 million during the same period in fiscal
2020. The increase in the first-quarter was due primarily to a full
quarter of increased base rates from NJNG's fiscal 2020 rate case
settlement, compared to a partial quarter a year ago.
Customer Growth:
- NJNG added 1,948 new customers during the first quarter of
fiscal 2021, compared with 2,282 during the same period in fiscal
2020. The lower customer growth was due to the effects of the
COVID-19 pandemic.
Infrastructure Update:
- NJNG's Infrastructure Investment Program is a five-year,
$150 million program approved by the BPU on October 28, 2020. The
IIP consists of a series of infrastructure projects designed to
support the enhanced safety and reliability of NJNG's natural gas
distribution system.
- The Southern Reliability Link (SRL) will diversify
supply to our customers by providing a new intrastate feed into the
southern end of NJNG’s distribution system. Construction on SRL
began in the first quarter of fiscal 2019 and is nearly 90 percent
complete. The total cost of SRL is estimated to be approximately
$270 million. NJNG expects the project to be placed in service in
2021.
- Safety Acceleration and Facilities Enhancement (SAFE) II
is the five-year, $158 million program approved by the BPU in
September 2016 to replace the remaining unprotected bare steel main
and associated services in NJNG’s distribution system. In the
first-quarter of fiscal 2021, NJNG invested $8.7 million to replace
six miles of unprotected bare steel main and services.
BGSS Incentive Programs:
BGSS incentive programs contributed $4.6 million to utility
gross margin in the first-quarter of fiscal 2021, compared with
$2.7 million during the same period in fiscal 2020. The higher
results in the quarter were due to higher natural gas storage
spreads in the first quarter that benefited the storage incentive
program compared to the same period last year. For more information
on utility gross margin, please see "Non-GAAP Financial
Information" at the end of the release.
Energy-Efficiency Programs:
SAVEGREEN invested an additional $4.8 million during the
first-quarter of fiscal 2021 to help customers with
energy-efficiency upgrades for their homes and businesses. NJNG
recovered $3.3 million of its outstanding investments during the
first three months of fiscal 2021.
- On September 25, 2020, NJNG filed a petition with the BPU for
an additional three-year SAVEGREEN 2020 program consisting of
approximately $127 million of direct investment, $113 million in
financing options, and $24 million in O&M expenses, effective
July 1, 2021. NJNG is currently in settlement negotiations with the
BPU.
Clean Energy Ventures (CEV)
CEV reported a net financial loss of $10.3 million during the
first-quarter of fiscal 2021, compared with a net financial loss of
$8.2 million during the same period in fiscal 2020. The decrease
was due primarily to higher O&M expenses related to project
maintenance costs and additional lease expense associated with new
projects placed in service, which was partially offset by a
decrease in depreciation expense.
Solar Investment Update:
- In the first-quarter of fiscal 2021, CEV acquired the Mt.
Laurel Solar Facility, adding 2.9 MW to total installed
capacity.
- CEV has three commercial projects under construction in
Connecticut and Rhode Island that will add 8 MW to total
capacity.
Storage and Transportation
Storage and Transportation, formerly known as the Midstream
reporting segment, reported first-quarter fiscal 2021 NFE of $3.5
million, compared with $3.0 million during the same period in
fiscal 2020. The higher NFE was due to increased operating income
from Leaf River and Adelphia Gateway (acquired in January 2020),
partially offset by increased interest expense related to those
assets.
Infrastructure Updates:
- Adelphia Gateway - On October 5, 2020, Adelphia Gateway
received a Partial Notice to Proceed from the Federal Energy
Regulatory Commission (FERC) to begin construction. The
construction includes the conversion of 50 miles of the existing
84-mile pipeline from oil to natural gas to bring much-needed
supply to constrained markets in the Philadelphia region.
- PennEast - On February 3, 2021, the U.S. Supreme Court
granted PennEast's petition for a writ of certiorari seeking to
overturn the September 10, 2019 Third Circuit decision vacating the
New Jersey Federal District Court's December 13, 2018 condemnation
order. The case will be set for argument in April 2021.
Energy Services
Energy Services reported first-quarter fiscal 2021 NFE of $1.5
million, compared with a net financial loss of $5.1 million for the
same period last fiscal year. The increase in NFE was due to
increased natural gas pricing spreads as compared to the prior
period.
- On December 16, 2020, Energy Services entered into a series of
Asset Management Agreements (AMAs) with an investment grade public
utility, under which the utility will provide certain asset
management services and Energy Services may deliver natural gas to
the utility in exchange for aggregate contracted fees of
approximately $500 million payable in cash to Energy Services over
10 years. The AMAs include a series of initial and permanent
releases commencing in November 2021. NJR will receive an aggregate
of approximately $260 million in cash from fiscal 2022 through
fiscal 2024 and $34 million per year from fiscal 2025 through
fiscal 2031 under the AMAs.
Home Services and Other Operations
Home Services and Other Operations reported first-quarter fiscal
2021 net financial loss of $0.1 million compared to NFE of $1.1
million for the same period in fiscal 2020. The decrease in NFE in
the first quarter was primarily due to decreased operating revenue
and increased interest expense compared to the prior period.
Capital Expenditures and Cash Flows:
NJR is committed to maintaining a strong financial profile.
- During the first three months of fiscal 2021, capital
expenditures spent and accrued were $119.3 million, of which $83.9
million were related to NJNG, compared with $111.7 million, of
which $76.7 million were related to NJNG, during the same period in
fiscal 2020.
- During the first three months of fiscal 2021, cash flows from
operations were $31.7 million, compared with cash flows used in
operations of $43.1 million during the same period of fiscal 2020.
The increase was primarily due to changes in working capital.
Forward-Looking Statements:
This earnings release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995.
New Jersey Resources Corporation (NJR) cautions readers that the
assumptions forming the basis for forward-looking statements
include many factors that are beyond NJR’s ability to control or
estimate precisely, such as estimates of future market conditions
and the behavior of other market participants. Words such as
“anticipates,” “estimates,” “expects,” “projects,” “may,” “will,”
“intends,” “plans,” “believes,” “should” and similar expressions
may identify forward-looking statements and such forward-looking
statements are made based upon management’s current expectations,
assumptions and beliefs as of this date concerning future
developments and their potential effect upon NJR. There can be no
assurance that future developments will be in accordance with
management’s expectations, assumptions and beliefs or that the
effect of future developments on NJR will be those anticipated by
management. Forward-looking statements in this earnings release
include, but are not limited to, certain statements regarding NJR’s
NFEPS guidance for fiscal 2021 and fiscal 2022, cash proceeds from
the AMAs, results of ongoing and future rate cases, forecasted
contribution of business segments to NJR’s NFE for fiscal 2021,
customer growth at NJNG, future NJR and NJNG capital expenditures,
infrastructure programs and investments such as SRL, SAFE II and
energy efficiency programs, CEV’s future capital investment target,
the ability to construct and operate the Adelphia Gateway Pipeline
project, and construct SRL and PennEast.
Additional information and factors that could cause actual
results to differ materially from NJR’s expectations are contained
in NJR’s filings with the SEC, including NJR’s Annual Reports on
Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent
Current Reports on Form 8-K, and other SEC filings, which are
available at the SEC’s web site, http://www.sec.gov. Information
included in this earnings release is representative as of today
only and while NJR periodically reassesses material trends and
uncertainties affecting NJR's results of operations and financial
condition in connection with its preparation of management's
discussion and analysis of results of operations and financial
condition contained in its Quarterly and Annual Reports filed with
the SEC, NJR does not, by including this statement, assume any
obligation to review or revise any particular forward-looking
statement referenced herein in light of future events.
Non-GAAP Financial Information:
This earnings release includes the non-GAAP financial measures
NFE/net financial loss, NFE per basic share, financial margin and
utility gross margin. A reconciliation of these non-GAAP financial
measures to the most directly comparable financial measures
calculated and reported in accordance with GAAP can be found below.
As an indicator of NJR’s operating performance, these measures
should not be considered an alternative to, or more meaningful
than, net income or operating revenues as determined in accordance
with GAAP. This information has been provided pursuant to the
requirements of SEC Regulation G.
NFE/net financial loss and financial margin exclude 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 NJRES.
NJNG’s utility gross margin represents the results of revenues
less natural gas costs, sales, expenses and other taxes and
regulatory rider expenses, which are key components of NJR’s
operations. Natural gas costs, sales, expenses and other taxes and
regulatory rider expenses are passed through to customers and,
therefore, have no effect on utility gross margin. Management uses
these non-GAAP financial measures as supplemental measures to other
GAAP results to provide a more complete understanding of NJR’s
performance. Management believes these non-GAAP financial measures
are more reflective of NJR’s business model, provide transparency
to investors and enable period-to-period comparability of financial
performance. A reconciliation of all non-GAAP financial measures to
the most directly comparable financial measures calculated and
reported in accordance with GAAP can be found below. For a full
discussion of NJR’s non-GAAP financial measures, please see NJR’s
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.
- 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.
- Energy Services manages a diversified portfolio of
natural gas transportation and storage assets and provides physical
natural gas services and customized energy solutions to its
customers across North America.
- Storage and Transportation serves customers from local
distributors and producers to electric generators and wholesale
marketers through its ownership of Leaf River and the Adelphia
Gateway Pipeline Project, as well as our 50 percent equity
ownership in the Steckman Ridge natural gas storage facility, and
our 20 percent equity interest in the PennEast Pipeline
Project.
- 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.
NJR-E
NEW JERSEY RESOURCES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Three Months Ended
December 31,
(Thousands, except per share data)
2020
2019
OPERATING REVENUES
Utility
$
195,729
$
219,623
Nonutility
258,576
395,413
Total operating revenues
454,305
615,036
OPERATING EXPENSES
Gas purchases
Utility
56,145
91,814
Nonutility
173,247
317,356
Related parties
1,734
1,524
Operation and maintenance
73,636
63,345
Regulatory rider expenses
10,701
11,742
Depreciation and amortization
27,362
24,637
Total operating expenses
342,825
510,418
OPERATING INCOME
111,480
104,618
Other income, net
4,117
286
Interest expense, net of capitalized
interest
19,786
16,070
INCOME BEFORE INCOME TAXES AND EQUITY
IN EARNINGS OF AFFILIATES
95,811
88,834
Income tax provision
17,441
16,471
Equity in earnings of affiliates
2,675
3,389
NET INCOME
$
81,045
$
75,752
EARNINGS PER COMMON SHARE
Basic
$
0.84
$
0.82
Diluted
$
0.84
$
0.82
WEIGHTED AVERAGE SHARES
OUTSTANDING
Basic
96,114
91,911
Diluted
96,415
92,320
RECONCILIATION OF NON-GAAP
PERFORMANCE MEASURES
Three Months Ended
December 31,
(Thousands)
2020
2019
NEW JERSEY RESOURCES
A reconciliation of net income, the
closest GAAP financial measurement, to net financial earnings is as
follows:
Net income
$
81,045
$
75,752
Add:
Unrealized (gain) on derivative
instruments and related transactions
(37,491
)
(41,766
)
Tax effect
8,913
9,931
Effects of economic hedging related to
natural gas inventory
(7,532
)
(8,887
)
Tax effect
1,790
2,112
Net income to NFE tax adjustment
(2,068
)
(2,211
)
Net financial earnings
$
44,657
$
34,931
Weighted Average Shares
Outstanding
Basic
96,114
91,911
Diluted
96,415
92,320
A reconciliation of basic earnings per
share, the closest GAAP financial measurement, to basic net
financial earnings per share is as follows:
Basic earnings per share
$
0.84
$
0.82
Add:
Unrealized (gain) on derivative
instruments and related transactions
$
(0.39
)
$
(0.45
)
Tax effect
$
0.09
$
0.11
Effects of economic hedging related to
natural gas inventory
$
(0.08
)
$
(0.10
)
Tax effect
$
0.02
$
0.02
Net income to NFE tax adjustment
$
(0.02
)
$
(0.02
)
Basic NFE per share
$
0.46
$
0.38
NATURAL GAS DISTRIBUTION
A reconciliation of operating revenue,
the closest GAAP financial measurement, to utility gross margin is
as follows:
Operating revenues
$
195,729
$
219,623
Less:
Gas purchases
59,309
95,822
Regulatory rider expense
10,701
11,742
Utility gross margin
$
125,719
$
112,059
Three Months Ended
(Unaudited)
December 31,
(Thousands)
2020
2019
ENERGY SERVICES
The following table is a computation of
financial margin:
Operating revenues
$
229,477
$
370,415
Less: Gas purchases
173,837
317,724
Add:
Unrealized (gain) on derivative
instruments and related transactions
(38,781
)
(42,194
)
Effects of economic hedging related to
natural gas inventory
(7,532
)
(8,887
)
Financial margin
$
9,327
$
1,610
A reconciliation of operating income,
the closest GAAP financial measurement, to financial margin is as
follows:
Operating income
$
51,582
$
47,924
Add:
Operation and maintenance expense
4,016
4,738
Depreciation and amortization
42
29
Subtotal
55,640
52,691
Add:
Unrealized (gain) on derivative
instruments and related transactions
(38,781
)
(42,194
)
Effects of economic hedging related to
natural gas inventory
(7,532
)
(8,887
)
Financial margin
$
9,327
$
1,610
A reconciliation of net income to net
financial earnings is as follows:
Net income
$
38,872
$
36,025
Add:
Unrealized (gain) on derivative
instruments and related transactions
(38,781
)
(42,194
)
Tax effect
9,219
10,033
Effects of economic hedging related to
natural gas
(7,532
)
(8,887
)
Tax effect
1,790
2,112
Net income to NFE tax adjustment
(2,068
)
(2,211
)
Net financial earnings (loss)
$
1,500
$
(5,122
)
FINANCIAL STATISTICS BY
BUSINESS UNIT
(Unaudited)
Three Months Ended
December 31,
(Thousands, except per share data)
2020
2019
NEW JERSEY RESOURCES
Operating Revenues
Natural Gas Distribution
$
195,729
$
219,623
Clean Energy Ventures
6,370
6,212
Energy Services
229,477
370,415
Storage and Transportation
13,104
9,072
Home Services and Other
12,577
12,907
Sub-total
457,257
618,229
Eliminations
(2,952
)
(3,193
)
Total
$
454,305
$
615,036
Operating Income (Loss)
Natural Gas Distribution
$
62,912
$
59,057
Clean Energy Ventures
(8,264
)
(7,438
)
Energy Services
51,582
47,924
Storage and Transportation
3,689
2,167
Home Services and Other
1,996
2,127
Sub-total
111,915
103,837
Eliminations
(435
)
781
Total
$
111,480
$
104,618
Equity in Earnings of
Affiliates
Storage and Transportation
$
3,193
$
3,664
Eliminations
(518
)
(275
)
Total
$
2,675
$
3,389
Net Income (Loss)
Natural Gas Distribution
$
49,467
$
43,856
Clean Energy Ventures
(10,274
)
(8,179
)
Energy Services
38,872
36,025
Storage and Transportation
3,508
3,004
Home Services and Other
(62
)
1,109
Sub-total
81,511
75,815
Eliminations
(466
)
(63
)
Total
$
81,045
$
75,752
Net Financial Earnings (Loss)
Natural Gas Distribution
$
49,467
$
43,856
Clean Energy Ventures
(10,274
)
(8,179
)
Energy Services
1,500
(5,122
)
Storage and Transportation
3,508
3,004
Home Services and Other
(62
)
1,109
Sub-total
44,139
34,668
Eliminations
518
263
Total
$
44,657
$
34,931
Throughput (Bcf)
NJNG, Core Customers
24.4
30.7
NJNG, Off System/Capacity Management
25.9
27.9
Energy Services Fuel Mgmt. and Wholesale
Sales
104.8
152.7
Total
155.1
211.3
Common Stock Data
Yield at December 31
3.7
%
2.8
%
Market Price at December 31
$
35.55
$
44.57
Shares Out. at December 31
96,139
95,508
Market Cap. at December 31
$
3,417,757
$
4,256,792
Three Months Ended
(Unaudited)
December 31,
(Thousands, except customer and weather
data)
2020
2019
NATURAL GAS DISTRIBUTION
Utility Gross Margin
Operating revenues
$
195,729
$
219,623
Less:
Gas purchases
59,309
95,822
Regulatory rider expense
10,701
11,742
Total Utility Gross Margin
$
125,719
$
112,059
Utility Gross Margin, Operating Income
and Net Income
Residential
$
85,975
$
77,082
Commercial, Industrial & Other
17,040
15,187
Firm Transportation
17,288
15,659
Total Firm Margin
120,303
107,928
Interruptible
838
1,402
Total System Margin
121,141
109,330
Off System/Capacity Management/FRM/Storage
Incentive
4,578
2,729
Total Utility Gross Margin
125,719
112,059
Operation and maintenance expense
43,638
36,185
Depreciation and amortization
19,169
16,817
Operating Income
$
62,912
$
59,057
Net Income
$
49,467
$
43,856
Net Financial Earnings
$
49,467
$
43,856
Throughput (Bcf)
Residential
13.6
14.6
Commercial, Industrial & Other
2.4
2.8
Firm Transportation
3.9
4.3
Total Firm Throughput
19.9
21.7
Interruptible
4.5
9.0
Total System Throughput
24.4
30.7
Off System/Capacity Management
25.9
27.9
Total Throughput
50.3
58.6
Customers
Residential
497,203
489,491
Commercial, Industrial & Other
30,912
30,422
Firm Transportation
31,398
32,159
Total Firm Customers
559,513
552,072
Interruptible
88
32
Total System Customers
559,601
552,104
Off System/Capacity Management*
30
17
Total Customers
559,631
552,121
*The number of customers represents those
active during the last month of the period.
Degree Days
Actual
1,418
1,611
Normal
1,575
1,572
Percent of Normal
90.0
%
102.5
%
Three Months Ended
(Unaudited)
December 31,
(Thousands, except customer, SREC, TREC
and megawatt)
2020
2019
CLEAN ENERGY VENTURES
Operating Revenues
SREC sales
$
1,292
$
2,194
TREC sales
690
—
Solar electricity sales and other
1,720
1,558
Sunlight Advantage
2,668
2,460
Total Operating Revenues
$
6,370
$
6,212
Depreciation and Amortization
$
5,433
$
6,316
Operating (Loss)
$
(8,264
)
$
(7,438
)
Income Tax (Benefit)
$
(3,086
)
$
(3,834
)
Net (Loss)
$
(10,274
)
$
(8,179
)
Net Financial (Loss)
$
(10,274
)
$
(8,179
)
Solar Renewable Energy Certificates
Generated
87,208
81,489
Solar Renewable Energy Certificates
Sold
6,095
9,693
Transition Renewable Energy
Certificates Generated
4,683
—
Solar Megawatts Under
Construction
8
45
ENERGY SERVICES
Operating Income
Operating revenues
$
229,477
$
370,415
Less:
Gas purchases
173,837
317,724
Operation and maintenance expense
4,016
4,738
Depreciation and amortization
42
29
Operating Income
$
51,582
$
47,924
Net Income
$
38,872
$
36,025
Financial Margin
$
9,327
$
1,610
Net Financial Earnings (Loss)
$
1,500
$
(5,122
)
Gas Sold and Managed (Bcf)
104.8
152.7
STORAGE AND TRANSPORTATION
Operating Revenues
$
13,104
$
9,072
Equity in Earnings of
Affiliates
$
3,193
$
3,664
Operation and Maintenance
Expense
$
6,542
$
4,878
Other Income, Net
$
1,254
$
697
Interest Expense
$
3,982
$
2,822
Income Tax Provision
$
646
$
702
Net Income
$
3,508
$
3,004
HOME SERVICES AND OTHER
Operating Revenues
$
12,577
$
12,907
Operating Income
$
1,996
$
2,127
Other Income (Expense), Net
$
(824
)
$
(528
)
Net (Loss) Income
$
(62
)
$
1,109
Net Financial (Loss) Earnings
$
(62
)
$
1,109
Total Service Contract Customers at
December 31
106,857
108,233
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210204005310/en/
Media: Michael Kinney 732-938-1031
mkinney@njresources.com
Investor: Dennis Puma 732-938-1229
dpuma@njresources.com
