New Jersey Resources (NJR) Brings FY14 Profit Outlook In-Line with Expectations

New Jersey Resources (NYSE: NJR) announced an increase in its fiscal 2014 net financial earnings (NFE) guidance to a range of $4.00 to $4.20 per basic share, from the previously announced range of $3.90 to $4.10 per basic share, subject to the risks and uncertainties identified below under “Forward-Looking Statements.”

*** The Street is looking for EPS of $4.14.

The increase in guidance is due primarily to continued better-than-anticipated results at NJR Energy Services (NJRES), the company’s wholesale provider of physical natural gas services and customized energy solutions, and strong results at its regulated utility, New Jersey Natural Gas (NJNG).

“This year we’ve seen a significant increase in the demand for natural gas in regions affected by extreme weather conditions across the United States,” said Laurence M. Downes, chairman and CEO of New Jersey Resources. “In this high-demand environment, NJR Energy Services has continued to successfully meet the needs of its diverse customer base, which includes power generators, distribution companies, pipeline companies and industrial customers.”

Fiscal 2014 results at NJNG have been driven by higher utility gross margin from customer additions, incentive programs and regulatory initiatives, as well as the continued impact of accelerated infrastructure investments.

• Third and Fourth Quarter 2014 Net Financial Earnings Guidance

NJR expects NFE per share of between $0.05 and $0.15 in the third quarter of fiscal 2014 and estimates a NFE loss of between $0.50 and $0.60 per share in the fourth quarter of fiscal 2014. The forecasted loss in the fourth quarter is due to the seasonal nature of NJRES and NJNG’s businesses and higher discretionary expenses, including the estimated impact of a voluntary early retirement program.

The following chart represents the NFE contributions NJR currently expects from its businesses in fiscal 2014:

The chart below represents NJR’s projected NFE contributions from its businesses in fiscal 2015:

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