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New Jersey Resources Reports First-Quarter Fiscal 2019 Results

February 6, 2019 7:00 AM

WALL, N.J.--(BUSINESS WIRE)-- Today, New Jersey Resources (NYSE: NJR) reported results for the first-quarter of fiscal 2019. Highlights include:

First-quarter fiscal 2019 net income totaled $86.2 million, or $0.97 per share, compared with net income of $123.7 million, or $1.42 per share, during the same period in fiscal 2018. First-quarter fiscal 2019 NFE totaled $54.1 million, or $0.61 per share, compared with NFE of $135.3 million, or $1.56 per share, during the same period last year. Results during the first-quarter of fiscal 2018, included an income tax benefit of $57.6 million, or $0.66 per share, due to the revaluation of deferred taxes resulting from the reduction in the federal corporate tax rate.

"Our results for the first quarter are consistent with our expectations, and we remain on track to achieve our earnings guidance for fiscal 2019," said Steve Westhoven, president and COO of New Jersey Resources. "Our view is supported by continued customer growth at New Jersey Natural Gas and our infrastructure investments. Our team is focused on delivering results for our customers and shareowners."

A reconciliation of net income to NFE for the three months ended December�31, 2018, and 2017, is provided below.

� � � Three Months Ended
December 31,
(Thousands) � � � 2018 � � � 2017
Net income* $ 86,248 � � � $ 123,699
Add:
Unrealized (gain) loss on derivative instruments and related transactions (10,932 ) 34,855

Tax effect

2,583 (8,059 )
Effects of economic hedging related to natural gas inventory (21,611 ) (25,387 )
Tax effect 5,136 8,244
Net income to NFE tax adjustment (7,331 ) 1,981 �
Net financial earnings $ 54,093 � $ 135,333 �
�
Weighted Average Shares Outstanding
Basic 88,547 86,996
Diluted 88,946 87,347
�
Basic earnings per share $ 0.97 $ 1.42
Add:
Unrealized (gain) loss on derivative instruments and related transactions (0.12 ) 0.40
Tax effect 0.03 (0.09 )
Effects of economic hedging related to natural gas inventory (0.25 ) (0.29 )
Tax effect 0.06 0.10
Net income to NFE tax adjustment (0.08 ) 0.02 �
Basic net financial earnings per share $ 0.61 � $ 1.56 �

*Results during the first fiscal quarter ended December 31, 2017, included a one-time income tax benefit of $57.6 million, or $0.66 per share, due to the revaluation of deferred taxes resulting from the reduction in the federal corporate tax rate.

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 Credits (SRECs) and foreign currency contracts. NFE 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.”

A table summarizing our key performance metrics for the three months ended December�31, 2018, and 2017, is provided below.

� � � Three Months Ended
December 31,
($ in Thousands) � � � 2018 � � � 2017
Net income $ 86,248 � � � $ 123,699
Basic EPS $ 0.97 $ 1.42
NFE $ 54,093 $ 135,333
Basic NFE per share $ 0.61 $ 1.56
�

A table detailing NFE for the three months ended December�31, 2018, and 2017, is provided below.

� � � Three Months Ended
December 31,
(Thousands) � � � 2018 � � � 2017
Net financial earnings � � �
New Jersey Natural Gas $ 31,713 $ 34,109
Midstream 3,651 � 17,511 �
Subtotal Regulated 35,364 51,620
Clean Energy Ventures 10,205 71,250
Energy Services 8,370 20,274
Home Services and Other 76 � (7,716 )
Subtotal Non-Regulated 18,651 � 83,808 �
Subtotal 54,015 135,428
Eliminations 78 � (95 )
Total $ 54,093 � $ 135,333 �
�

NJR Reaffirms Fiscal 2019 NFE Guidance:

NJR reaffirmed fiscal 2019 NFE guidance of $1.95 to $2.05 per share, subject to the risks and uncertainties identified below under “Forward-Looking Statements.” NJR expects its regulated businesses to generate between 50 to 65 percent of total NFE, with New Jersey Natural Gas (NJNG) continuing to be the largest contributor. The following chart represents NJR’s current expected contributions from its subsidiaries for fiscal 2019 and beyond:

� � � � � � �
Company � �

Expected Fiscal 2019
Net Financial Earnings
Contribution

� �

Expected Fiscal 2020 and
Beyond Net Financial Earnings
Contribution

New Jersey Natural Gas � � 45 to 50 percent � � 50 to 60 percent
Midstream � � 5 to 15 percent � � 10 to 25 percent
Total Regulated � � 50 to 65 percent � � 60 to 85 percent
Clean Energy Ventures � � 25 to 35 percent � � 10 to 20 percent
Energy Services � � 5 to 15 percent � � 5 to 15 percent
Home Services and Other � � 0 to 2 percent � � 0 to 2 percent
Total Non-Regulated � � 30 to 52 percent � � 15 to 37 percent
� � � �

In providing fiscal 2019 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.

Regulated Business Update:

New Jersey Natural Gas

NJNG reported first-quarter NFE of $31.7 million, compared with $34.1 million, during the same period in fiscal 2018. The decrease in the first quarter was due primarily to higher O&M expenses and lower Basic Gas Supply Service (BGSS) incentives.

Customer Growth:

NJNG Infrastructure Update:

BGSS Incentive Programs:

BGSS incentive programs contributed $2 million to utility gross margin in the first-quarter of fiscal 2019, compared with $4.4 million during the same period in fiscal 2018. The lower results were due primarily to lower volume in the capacity release program and a decrease in value in the storage incentive program. Total savings for NJNG customers through the BGSS incentive programs for the three months ended December�31, 2018, were approximately $10 million.

Energy Efficiency Programs:

The SAVEGREEN Project®, NJNG’s energy-efficiency program, invested $3.7 million during the first-quarter of fiscal 2019 in grants and financing options designed to help customers with energy-efficiency upgrades for their homes and businesses.

Midstream

Midstream reported first-quarter fiscal 2019 NFE of $3.7 million, compared with $17.5 million during the same period of fiscal 2018. The decrease in NFE was due primarily to the effects of tax reform, which resulted in a tax benefit of $14 million recognized in the first-quarter of fiscal 2018.

Infrastructure Project Updates:

Non-Regulated Businesses Update:

Energy Services

Energy Services reported first-quarter fiscal 2019 NFE of $8.4 million, compared with $20.3 million during fiscal 2018. The decrease in NFE was due primarily due to the lack of sustained cold weather and related pricing volatility as compared to last year.

Clean Energy Ventures (CEV)

CEV reported first-quarter fiscal 2019 NFE of $10.2 million, compared with NFE of $71.3 million in the same period last year. The decrease in NFE was due primarily to the effects of tax reform, which resulted in a tax benefit of $62.7 million recognized in the first-quarter of fiscal 2018.

First-quarter highlights:

Home Services and Other Operations

In the first quarter of fiscal 2019, Home Services and Other Operations reported NFE of $0.1 million, compared with a net financial loss of $7.7 million in fiscal 2018. The increase in NFE was due primarily to the revaluation of deferred income taxes resulting from tax reform that did not recur in 2019.

Capital Expenditures and Cash Flows:

NJR is committed to maintaining a strong financial profile while continuing to invest capital in regulated and non-regulated projects.

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 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 NFE guidance for fiscal 2019, forecasted contribution of business segments to fiscal 2019 NFE and beyond, future NJNG customer and utility gross margin growth, future NJR capital expenditures, infrastructure investments, Clean Energy Ventures’ ITC-eligible projects and demand for residential solar, earnings and dividend growth, as well as the ability to close and successfully implement the Adelphia Gateway acquisition, and construct the SRL and PennEast Pipeline projects.

The factors that could cause actual results to differ materially from NJR’s expectations include, but are not limited to, risks associated with our investments in clean energy projects, including the availability of regulatory and tax incentives, the availability of viable projects, our eligibility for ITCs, the future market for SRECs and electricity prices, and operational risks related to projects in service; the ability to obtain governmental and regulatory approvals, land-use rights, electric grid connection (in the case of clean energy projects) and/or financing for the construction, development and operation of our unregulated energy investments, pipeline transportation systems and NJNG and Midstream infrastructure projects, including NJ RISE, SRL, PennEast and Adelphia Gateway, in a timely manner; risks associated with acquisitions and the related integration of acquired assets with our current operations, including our planned Adelphia Gateway acquisition; volatility of natural gas and other commodity prices and their impact on NJNG customer usage, NJNG’s BGSS incentive programs, our Energy Services segment operations and our risk management efforts; the ability to comply with current and future regulatory requirements; the level and rate at which NJNG’s costs and expenses are incurred and the extent to which they are approved for recovery from customers through the regulatory process, including through future base rate case filings; the impact of a disallowance of recovery of environmental-related expenditures and other regulatory changes; the performance of our subsidiaries; operating risks incidental to handling, storing, transporting and providing customers with natural gas; access to adequate supplies of natural gas and dependence on third-party storage and transportation facilities for natural gas supply; the regulatory and pricing policies of federal and state regulatory agencies; timing of qualifying for ITCs due to delays or failures to complete planned solar projects and the resulting effect on our effective tax rate and earnings; the results of legal or administrative proceedings with respect to claims, rates, environmental issues, natural gas cost prudence reviews and other matters; changes in rating agency requirements and/or credit ratings and their effect on availability and cost of capital to our company; risks related to cyberattack or failure of information technology systems; the impact of volatility in the equity and credit markets on our access to capital; the impact to the asset values and resulting higher costs and funding obligations of our pension and post-employment benefit plans as a result of potential downturns in the financial markets, lower discount rates, revised actuarial assumptions or impacts associated with the Patient Protection and Affordable Care Act; commercial and wholesale credit risks, including the availability of creditworthy customers and counterparties, and liquidity in the wholesale energy trading market; accounting effects and other risks associated with hedging activities and use of derivatives contracts; the ability to optimize our physical assets; weather and economic conditions; changes to tax laws and regulations; any potential need to record a valuation allowance for our deferred tax assets; the ability to comply with debt covenants; demographic changes in NJR’s service territory and their effect on NJR’s customer growth; the impact of natural disasters, terrorist activities and other extreme events on our operations and customers; the costs of compliance with present and future environmental laws, including potential climate change-related legislation; environmental-related and other uncertainties related to litigation or administrative proceedings; risks related to our employee workforce; and risks associated with the management of our joint ventures and partnerships, and investment in a master limited partnership. The aforementioned factors are detailed in the “Risk Factors” sections of our Form 10-K�that we filed with the Securities and Exchange Commission (SEC) on November 20, 2018, which is available on the SEC’s Web site at 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 measures NFE/net financial 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 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 contracts is 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 Clean Energy Ventures, as such the adjustment is related to tax credits generated by Clean Energy Ventures.

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 2018 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:

NJR and its more than 1,000 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.
Download our free NJR investor relations app for iPad, iPhone and Android.

NJR-E

� � � � � � � �
NEW JERSEY RESOURCES � � � � � � �
(Unaudited) � � � � �
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
�
Three Months Ended
December 31,
(Thousands, except per share data) 2018 2017
OPERATING REVENUES
Utility $ 199,965 $ 209,787
Nonutility 611,802 � 495,518 �
Total operating revenues 811,767 � 705,305 �
OPERATING EXPENSES
Gas purchases
Utility 87,649 77,602
Nonutility 535,383 445,084
Related parties 2,185 2,149
Operation and maintenance 60,102 54,160
Regulatory rider expenses 12,632 11,769
Depreciation and amortization 21,832 21,854
Energy and other taxes 3,241 � 16,491 �
Total operating expenses 723,024 � 629,109 �
OPERATING INCOME 88,743 76,196
Other income, net 869 5,976
Interest expense, net of capitalized interest 13,486 � 11,905 �
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES 76,126 70,267
Income tax benefit (6,961 ) (50,168 )
Equity in earnings of affiliates 3,161 � 3,264 �
NET INCOME $ 86,248 � $ 123,699 �
�
EARNINGS PER COMMON SHARE
Basic $ 0.97 $ 1.42
Diluted $ 0.97 � $ 1.42 �
�
DIVIDENDS DECLARED PER COMMON SHARE $ 0.2925 � $ 0.2725 �
�
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 88,547 86,996
Diluted 88,946 � 87,347 �
� � � � � � � � � �
�
� �
RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES
� � �
Three Months Ended
December 31,
(Thousands) � � � 2018 � � 2017
NEW JERSEY RESOURCES � � � � � � �
�
A reconciliation of net income, the closest GAAP financial measurement, to net financial earnings is as follows:
�
Net income $ 86,248 $ 123,699
Add:
Unrealized (gain) loss on derivative instruments and related transactions (10,932 ) 34,855
Tax effect 2,583 (8,059 )
Effects of economic hedging related to natural gas inventory (21,611 ) (25,387 )
Tax effect 5,136 8,244
Net income to NFE tax adjustment (7,331 ) 1,981 �
Net financial earnings $ 54,093 � $ 135,333 �
�
Weighted Average Shares Outstanding
Basic 88,547 86,996
Diluted 88,946 � 87,347 �
�
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 $ 0.97 $ 1.42
Add:
Unrealized (gain) loss on derivative instruments and related transactions $ (0.12 ) $ 0.40
Tax effect $ 0.03 $ (0.09 )
Effects of economic hedging related to natural gas inventory $ (0.25 ) $ (0.29 )
Tax effect $ 0.06 $ 0.10
Net income to NFE tax adjustment $ (0.08 ) $ 0.02 �
Basic NFE per share $ 0.61 � $ 1.56 �
� � � � � � � �
NATURAL GAS DISTRIBUTION � � � � � � �
�
A reconciliation of operating revenue, the closest GAAP financial measurement, to utility gross margin is as follows:
�
Operating revenues $ 199,965 $ 209,787
Less:
Gas purchases 92,178 84,755
Energy and other taxes — 12,404
Regulatory rider expense 12,632 � 11,769 �
Utility gross margin $ 95,155 � $ 100,859 �
� � � � � � � �
CLEAN ENERGY VENTURES � � � � � � �
�
A reconciliation of net income to net financial earnings is as follows:
�
Net income $ 17,536 $ 69,269
Add:
Net income to NFE tax adjustment (7,331 ) 1,981 �
Net financial earnings $ 10,205 � $ 71,250 �
� � � � � � � �
�
Three Months Ended
(Unaudited) December 31,
(Thousands) � � � 2018 � � 2017
ENERGY SERVICES � � � � � � �
�
The following table is a computation of financial margin:
�
Operating revenues $ 587,267 $ 477,981
Less: Gas purchases 536,508 446,210
Add:
Unrealized (gain) loss on derivative instruments and related transactions (11,177 ) 33,873
Effects of economic hedging related to natural gas inventory (21,611 ) (25,387 )
Financial margin $ 17,971 � $ 40,257 �
�
A reconciliation of operating income, the closest GAAP financial measurement, to financial margin is as follows:
�
Operating income $ 44,886 $ 26,104
Add:
Operation and maintenance expense 5,273 4,436
Depreciation and amortization 27 14
Other taxes 573 � 1,217 �
Subtotal 50,759 31,771
Add:
Unrealized (gain) loss on derivative instruments and related transactions (11,177 ) 33,873
Effects of economic hedging related to natural gas inventory (21,611 ) (25,387 )
Financial margin $ 17,971 � $ 40,257 �
�
A reconciliation of net income to net financial earnings is as follows:
�
Net income $ 33,374 $ 11,120
Add:
Unrealized (gain) loss on derivative instruments and related transactions (11,177 ) 33,873
Tax effect 2,648 (7,576 )
Effects of economic hedging related to natural gas (21,611 ) (25,387 )
Tax effect 5,136 � 8,244 �
Net financial earnings $ 8,370 � $ 20,274 �
� � � � � � � �
Home Services and Other � � � � � � �
�
A reconciliation of net income to net financial earnings is as follows:
�
Net loss $ (25 ) $ (7,716 )
Add:
Unrealized loss on derivative instruments and related transactions 141 —
Tax effect (40 ) — �
Net financial earnings (loss) $ 76 � $ (7,716 )
� � � � � � � � � � � �
�
� � � Three Months Ended
December 31,
(Thousands, except per share data) � � � 2018 � � 2017
NEW JERSEY RESOURCES � � � � � � �
� �
Operating Revenues
Natural Gas Distribution $ 199,965 $ 209,787
Clean Energy Ventures 14,897 13,996
Energy Services 587,267 477,981
Midstream — —
Home Services and Other 12,490 � 9,957 �
Sub-total 814,619 711,721
Eliminations (2,852 ) (6,416 )
Total $ 811,767 � $ 705,305 �
� � � � � � � �
�
Operating Income
Natural Gas Distribution $ 43,032 $ 51,909
Clean Energy Ventures (174 ) (441 )
Energy Services 44,886 26,104
Midstream (637 ) (373 )
Home Services and Other 373 � (1,227 )
Sub-total 87,480 75,972
Eliminations 1,263 � 224 �
Total $ 88,743 � $ 76,196 �
� � � � � � � �
�
Equity in Earnings of Affiliates
Midstream $ 3,801 $ 4,129
Eliminations (640 ) (865 )
Total $ 3,161 � $ 3,264 �
� � � � � � � �
�
Net Income (Loss)
Natural Gas Distribution $ 31,713 $ 34,109
Clean Energy Ventures 17,536 69,269
Energy Services 33,374 11,120
Midstream 3,651 17,511
Home Services and Other (25 ) (7,716 )
Sub-total 86,249 124,293
Eliminations (1 ) (594 )
Total $ 86,248 � $ 123,699 �
� � � � � � � �
�
Net Financial Earnings (Loss)
Natural Gas Distribution $ 31,713 $ 34,109
Clean Energy Ventures 10,205 71,250
Energy Services 8,370 20,274
Midstream 3,651 17,511
Home Services and Other 76 � (7,716 )
Sub-total 54,015 135,428
Eliminations 78 � (95 )
Total $ 54,093 � $ 135,333 �
� � � � � � � �
�
Throughput (Bcf)
NJNG, Core Customers 26.7 30.7
NJNG, Off System/Capacity Management 27.4 38.7
Energy Services Fuel Mgmt. and Wholesale Sales 156.7 � 163.1 �
Total 210.8 � 232.5 �
� � � � � � � �
�
Common Stock Data
Yield at December 31 2.6 % 2.7 %
Market Price
High $ 51.83 $ 45.45
Low $ 43.51 $ 38.60
Close at December 31 $ 45.67 $ 40.20
Shares Out. at December 31 88,680 87,475
Market Cap. at December 31 $ 4,050,024 � $ 3,516,513 �
� � � � � � � � � � � �
�
� � � Three Months Ended
(Unaudited) December 31,
(Thousands, except customer and weather data) � � � 2018 � � 2017
NATURAL GAS DISTRIBUTION � � � � � � �
� �
Utility Gross Margin
Operating revenues $ 199,965 $ 209,787
Less:
Gas purchases 92,178 84,755
Energy and other taxes — 12,404
Regulatory rider expense 12,632 � 11,769 �
Total Utility Gross Margin $ 95,155 � $ 100,859 �
� � � � � � � �
Utility Gross Margin, Operating Income and Net Income
Residential $ 64,139 $ 64,735
Commercial, Industrial & Other 13,346 13,918
Firm Transportation 14,396 � 16,260 �
Total Firm Margin 91,881 94,913
Interruptible 1,319 � 1,511 �
Total System Margin 93,200 96,424
Off System/Capacity Management/FRM/Storage Incentive 1,955 � 4,435 �
Total Utility Gross Margin 95,155 100,859
Operation and maintenance expense 36,883 34,821
Depreciation and amortization 13,896 12,783
Other taxes not reflected in gross margin 1,344 � 1,346 �
Operating Income $ 43,032 � $ 51,909 �
�
Net Income $ 31,713 � $ 34,109 �
�
Net Financial Earnings $ 31,713 � $ 34,109 �
� � � � � � � �
Throughput (Bcf)
Residential 14.5 13.6
Commercial, Industrial & Other 2.8 2.6
Firm Transportation 4.4 � 4.6 �
Total Firm Throughput 21.7 20.8
Interruptible 5.0 � 9.9 �
Total System Throughput 26.7 30.7
Off System/Capacity Management 27.4 � 38.7 �
Total Throughput 54.1 � 69.4 �
� � � � � � � �
Customers
Residential 478,983 463,679
Commercial, Industrial & Other 29,640 28,656
Firm Transportation 35,099 � 42,058 �
Total Firm Customers 543,722 534,393
Interruptible 32 � 30 �
Total System Customers 543,754 534,423
Off System/Capacity Management* 7 � 19 �
Total Customers 543,761 � 534,442 �
*The number of customers represents those active during the last month of the period.
Degree Days
Actual 1,638 1,577
Normal 1,565 � 1,576 �
Percent of Normal 104.7 % 100.1 %
� � � � � � � � � �
�
� � �
Three Months Ended
(Unaudited) December 31,
(Thousands, except customer, SREC and megawatt) � � � 2018 � � 2017
CLEAN ENERGY VENTURES � � � � � � �
� �
Operating Revenues
SREC sales $ 7,147 $ 6,856
Wind electricity sales and other 3,736 4,185
Solar electricity sales and other 1,882 1,125
Sunlight Advantage 2,132 � 1,830 �
Total Operating Revenues $ 14,897 � $ 13,996 �
�
Depreciation and Amortization $ 7,923 � $ 8,935 �
�
Operating Loss $ (174 ) $ (441 )
�
Income Tax Benefit $ (23,204 ) $ (73,988 )
�
Net Income $ 17,536 � $ 69,269 �
�
Net Financial Earnings $ 10,205 � $ 71,250 �
�
Solar Renewable Energy Certificates Generated 53,899 � 53,568 �
�
Solar Renewable Energy Certificates Sold 37,820 � 29,680 �
�
Solar Megawatts Eligible for ITCs 20.9 � 1.8 �
�
Solar Megawatts Under Construction 7.4 � 21.4 �
� � � � � � � �
ENERGY SERVICES � � � � � � �
�
Operating Income
Operating revenues $ 587,267 $ 477,981
Less:
Gas purchases 536,508 446,210
Operation and maintenance expense 5,273 4,436
Depreciation and amortization 27 14
Energy and other taxes, net 573 � 1,217 �
Operating Income $ 44,886 � $ 26,104 �
�
Net Income $ 33,374 � $ 11,120 �
�
Financial Margin $ 17,971 � $ 40,257 �
�
Net Financial Earnings $ 8,370 � $ 20,274 �
�
Gas Sold and Managed (Bcf) 156.7 � 163.1 �
� � � � � � � �
MIDSTREAM � � � � � � �
�
Equity in Earnings of Affiliates $ 3,801 � $ 4,129 �
�
Other Income, Net $ 1,992 � $ 1,221 �
�
Income Tax Provision (Benefit) $ 962 � $ (12,843 )
�
Net Income $ 3,651 � $ 17,511 �
� � � � � � � �
HOME SERVICES AND OTHER � � � � � � �
�
Operating Revenues $ 12,490 � $ 9,957 �
�
Operating Income (Loss) $ 373 � $ (1,227 )
�
Other Income, Net $ (198 ) $ 5,300 �
�
Net (Loss) $ (25 ) $ (7,716 )
� �
Net Financial Earnings (Loss) $ 76 � $ (7,716 )
�
Total Service Contract Customers at December 31 109,919 � 111,615 �
� � � � � � � � � �
�

Media:

Michael Kinney

732-938-1031

[email protected]

Investors:

Dennis Puma

732-938-1229

[email protected]

Source: New Jersey Resources

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