• EPS: $1.29 per share, compared to $0.74 per share last year.
• Rate Base: $3.2 billion following the approval of the base rate case.
• Capital Expenditures: $127 million invested in New Jersey Natural Gas during the quarter.
• Clean Energy Ventures: 11 megawatts of commercial solar projects placed into service; 63 megawatts under construction.
• Fiscal 2025 EPS Guidance: $3.05 to $3.20 per share.
• Capital Plan for Fiscal 2025-2026: $1.3 to $1.6 billion in capital expenditures.
• Adjusted Funds from Operations to Adjusted Debt Ratio: Projected to range between 18% and 20% for fiscal 2025.
• Cash Flow from Operations: Expected to be between $465 million and $500 million in fiscal 2025.

• Warning! GuruFocus has detected 7 Warning Signs with NJR.

Release Date: February 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• New Jersey Resources Corp (NYSE:NJR) achieved a significant milestone with the implementation of new rates, supporting the recovery of $850 million in investments.
• The company launched a $386 million energy efficiency program, the largest in New Jersey natural gas history, running through June 2027.
• Clean Energy Ventures advanced its commercial solar strategy with a project pipeline of over one gigawatt, enhancing future growth potential.
• NJR reported a strong first-quarter EPS of $1.29 per share, significantly higher than the previous year's $0.74 per share.
• The sale of the residential solar portfolio improved NJR's balance sheet and provided capital for future growth opportunities.

Negative Points

• The EPS guidance for fiscal 2025, excluding one-time gains, was slightly below expectations, raising concerns about meeting the projected range.
• There is uncertainty around the timing and spending of capital expenditures, particularly in the Clean Energy Ventures segment.
• The Adelphia rate case process is ongoing, with no specific timeline for resolution, potentially impacting financial projections.
• Market conditions and regulatory changes could affect NJR's ability to execute its capital investment program, particularly in solar projects.
• The company faces potential challenges in maintaining its growth trajectory amidst evolving regulatory and market dynamics.

Q & A Highlights

Q: How is New Jersey Resources trending within the EPS guidance range for fiscal 2025, considering the gain from the residential solar sale? A: Roberto Bel, Senior Vice President and CFO, stated that the guidance remains at $3.05 to $3.20 per share. They are not changing this guidance at the moment and are trending within the range.

Q: What is driving the growth in Clean Energy Ventures, and will the mix continue to shift outside of New Jersey? A: Steve Westhoven, President and CEO, explained that the diversification strategy has been in place for years, focusing on solar-friendly jurisdictions. The current project pipeline is robust, and they do not foresee any near-term impacts from the IRA due to safe harbor provisions.

Q: Can you provide insights on the market opportunities for energy services during last month's cold snaps? A: Steve Westhoven noted that the weather was constructive across all businesses, highlighting the value of existing infrastructure. They will update the market as appropriate in the next quarter.

Q: Are there any key dates in the Adelphia rate case process that should be watched for? A: Steve Westhoven mentioned that it is a typical rate case, verifying past construction expenses. They expect it to be settled sometime in 2025.

Q: How does the regulatory treatment of the Save Green program work, and is it included in the rate case? A: Patrick Migliaccio, Senior Vice President and COO, clarified that Save Green spending is not included in the base rate case filings. It operates like an infrastructure rider, allowing for near real-time recovery of annual investments.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.