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Business Wire
05-05-2025
- Business
- Business Wire
New Jersey Resources Reports Fiscal 2025 Second-Quarter Results
WALL, N.J.--(BUSINESS WIRE)--New Jersey Resources Corporation (NYSE: NJR) today reported financial and operating results for its fiscal 2025 second quarter ended March 31, 2025. Highlights include: Fiscal 2025 second-quarter consolidated net income of $204.3 million, or $2.04 per share, compared with net income of $120.8 million, or $1.23 per share, in the second quarter of fiscal 2024 Consolidated net financial earnings (NFE), a non-GAAP financial measure, of $178.3 million, or $1.78 per share, in the second-quarter of fiscal 2025, compared to NFE of $138.6 million, or $1.41 per share, in the second quarter of fiscal 2024 Fiscal 2025 year-to-date net income totaled $335.6 million, or $3.35 per share, compared with $210.2 million, or $2.14 per share, for the same period in fiscal 2024 Fiscal 2025 year-to-date NFE totaled $307.2 million, or $3.07 per share, compared with $211.0 million, or $2.15 per share, for the same period in fiscal 2024 Fiscal 2025 Outlook Increases fiscal 2025 net financial earnings per share (NFEPS) guidance to a range of $3.15 to $3.30, from $3.05 to $3.20, a $0.10 increase, as a result of outperformance from Energy Services during the winter period Maintains 7 to 9 percent long-term NFEPS growth target, based off of a target of $2.83 per share for fiscal 2025 Management Commentary Steve Westhoven, President and CEO of New Jersey Resources, stated, "We continued to execute our strategy to deliver stable growth through our diversified business model. Our second-quarter performance exceeded expectations, largely driven by natural gas price volatility that benefited Energy Services during the winter period. Overall, we believe these results highlight the strength of our complementary portfolio and the value of our physical infrastructure.' Performance Metrics Net financial earnings (loss) by business segment Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2025 2024 2025 2024 New Jersey Natural Gas $ 144,531 $ 107,095 $ 211,439 $ 158,539 Clean Energy Ventures (3,958 ) (5,616 ) 44,172 4,906 Storage and Transportation 2,343 1,981 8,007 5,621 Energy Services 35,301 37,644 43,134 45,475 Home Services and Other (678 ) 384 (63 ) (216 ) Subtotal 177,539 141,488 306,689 214,325 Eliminations 757 (2,912 ) 501 (3,305 ) Total $ 178,296 $ 138,576 $ 307,190 $ 211,020 Expand Fiscal 2025 NFEPS Guidance: NJR is raising its fiscal 2025 NFEPS guidance range by $0.10 to a range of $3.15 to $3.30, subject to the risks and uncertainties identified below under "Forward-Looking Statements." Fiscal 2025 NFEPS guidance is higher than the range implied by our 7 to 9 percent long-term NFEPS growth target as a result of the gain from the sale of NJR's residential solar portfolio and strong performance from Energy Services. The following chart represents NJR's current expected NFE contributions from its business segments for fiscal 2025 (which takes into account the impact of the gain from the sale of NJR's residential solar portfolio in the first quarter of fiscal 2025): In providing fiscal 2025 NFE guidance, management is aware there could be differences between reported GAAP net income 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) NJNG reported second-quarter fiscal 2025 NFE of $144.5 million, compared to NFE of $107.1 million during the same period in fiscal 2024. Fiscal 2025 year-to-date NFE totaled $211.4 million, compared with NFE of $158.5 million for the same period in fiscal 2024. The increase in NFE for both periods was due primarily to higher utility gross margin resulting from NJNG's recent base rate case settlement, partially offset by higher depreciation expense. Customers: At March 31, 2025, NJNG serviced approximately 588,000 customers in New Jersey's Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington counties, compared to approximately 583,000 customers at September 30, 2024. Infrastructure Update: NJNG's Infrastructure Investment Program (IIP) is a five-year, $150 million accelerated recovery program that began in fiscal 2021. IIP consists of a series of infrastructure projects designed to enhance the safety and reliability of NJNG's natural gas distribution system. In the first six months of fiscal 2025, NJNG spent $16.1 million under the program on various distribution system reinforcement projects. Basic Gas Supply Service (BGSS) Incentive Programs: BGSS incentive programs contributed $10.6 million to utility gross margin during the first six months of fiscal 2025, compared with $13.3 million in the same period in fiscal 2024. This decline was largely due to decreased margins from storage incentives. For more information on utility gross margin, please see "Non-GAAP Financial Information" below. Energy-Efficiency Programs: SAVEGREEN® invested $52.2 million year-to-date in fiscal 2025 in energy-efficiency upgrades for customers' homes and businesses. NJNG recovered $9.2 million of its outstanding investments during the first six months of fiscal 2025 through its energy efficiency rate. Clean Energy Ventures (CEV) CEV reported second-quarter fiscal 2025 net financial loss of $(4.0) million, compared with a net financial loss of $(5.6) million during the same period in fiscal 2024. The improvement from the prior year period was largely due to higher solar electricity sales as well as lower depreciation and amortization expenses during the period, offset by lower residential solar revenue during the period as a result of the sale of the residential solar business. Fiscal 2025 year-to-date NFE totaled $44.2 million, compared with NFE of $4.9 million for the same period in fiscal 2024. The increase in fiscal 2025 year-to-date NFE was largely due to the gain on sale of its residential solar portfolio, partially offset by the timing of Solar Renewable Energy Certificate (SREC) sales for the period. Solar Investment Update: During the first six months of fiscal 2025, CEV placed 2 commercial projects into service, adding 10.5 megawatts (MW) to total installed capacity. As of March 31, 2025, CEV had approximately 399MW of commercial solar capacity in service in New Jersey, New York, Connecticut, Rhode Island, Indiana, and Michigan. Subsequent to quarter end, CEV placed an additional project into service in New Jersey, adding over 18MW of installed capacity for a total of approximately 417MW currently in service. Storage and Transportation Storage and Transportation reported second-quarter fiscal 2025 NFE of $2.3 million, compared with NFE of $2.0 million during the same period in fiscal 2024. Fiscal 2025 year-to-date NFE totaled $8.0 million, compared with NFE of $5.6 million for the same period in fiscal 2024. NFE increased during both periods due to an increase in operating revenues at Leaf River, as well as lower operating and maintenance expense. On September 30, 2024, Adelphia Gateway, LLC (Adelphia) filed a general Section 4 rate case with the Federal Energy Regulatory Commission (FERC). Adelphia anticipates a resolution by the end of 2025. Energy Services Energy Services reported second-quarter fiscal 2025 NFE of $35.3 million, compared with $37.6 million for the same period in fiscal 2024. Fiscal 2025 year-to-date NFE totaled $43.1 million, compared with NFE of $45.5 million for the same period in fiscal 2024. Energy Services was able to take advantage of price volatility and capture additional financial margin over the past two winters. The decrease in NFE for both the fiscal 2025 second quarter and year-to-date periods was due to lower revenues from the Asset Management Agreements (AMAs) signed in December 2020. Home Services and Other Operations Home Services and Other Operations reported second-quarter fiscal 2025 net financial loss of $(0.7) million, compared to NFE of $0.4 million for the same period in fiscal 2024. Fiscal 2025 year-to-date net financial loss totaled $(0.1) million, compared with a net financial loss of $(0.2) million for the same period in fiscal 2024. Home Services reported higher installation and service contract revenue for both periods, offset by higher operating and maintenance expenses. Capital Expenditures and Cash Flows: NJR is committed to maintaining a strong financial profile: During the first six months of fiscal 2025, capital expenditures were $287.1 million, including accruals, compared with $232.6 million during the same period of fiscal 2024. The increase in capital expenditures was primarily due to higher expenditures at NJNG and CEV. During the first six months of fiscal 2025, cash flows from operations were $414.1 million, compared to cash flows from operations of $338.6 million during the same period of fiscal 2024. The increase was due primarily to an increase in base rates at NJNG along with changes in the mix of working capital components. 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. 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, statements regarding NJR's NFEPS guidance for fiscal 2025, projected NFEPS growth rates and our guidance range, forecasted contributions of business segments to NJR's NFE for fiscal 2025, impact of the sale of NJR's residential solar portfolio, infrastructure programs and investments, future decarbonization opportunities including IIP, Energy Efficiency programs, the outcome or timing of Adelphia's rate case with FERC; and other legal and regulatory expectations, and statements that include other projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact. 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 website, 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 new information, future events or otherwise, except as required by law. 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 and financial margin exclude unrealized gains or losses on derivative instruments related to NJR'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. Financial margin also differs from gross margin as defined on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization as well as the effects of derivatives as discussed above. 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 NJR Energy Services Company. NJNG's utility gross margin is defined as operating revenues less natural gas purchases, sales tax, and regulatory rider expense. This measure differs from gross margin as presented on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization. Utility gross margin may also not be comparable to the definition of gross margin used by others in the natural gas distribution business and other industries. Management believes that utility gross margin provides a meaningful basis for evaluating utility operations since natural gas costs, sales tax and regulatory rider expenses are included in operating revenues and 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 most recent Report on 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 natural gas transportation and distribution infrastructure to serve customers in New Jersey's Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington counties. Clean Energy Ventures invests in, owns and operates solar projects, providing 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, as well as our 50% equity ownership in the Steckman Ridge natural gas storage facility. 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 over 1,300 employees are committed to helping customers save energy and money by promoting conservation and encouraging efficiency through Conserve to Preserve® and initiatives such as SAVEGREEN®. For more information about NJR: NFE is a measure of earnings based on the elimination of timing differences to effectively match the earnings effects of the economic hedges with the physical sale of natural gas, SRECs and foreign currency contracts. Consequently, to reconcile net income and NFE, current-period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item. Realized derivative gains and losses are also included in current-period net income. However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the derivatives with realized margins on physical natural gas flows. NFE also excludes certain transactions associated with equity method investments, including impairment charges, which are non-cash charges, and return of capital in excess of the carrying value of our investment. These are not indicative of the Company's performance for its ongoing operations. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE. FINANCIAL STATISTICS BY BUSINESS UNIT (Unaudited) Operating Revenues Natural Gas Distribution $ 618,645 $ 463,201 $ 952,410 $ 756,631 Clean Energy Ventures 7,967 9,325 34,373 44,620 Energy Services 246,390 144,862 332,698 244,530 Storage and Transportation 25,307 23,042 51,935 46,904 Home Services and Other 15,118 14,905 30,912 29,739 Sub-total 913,427 655,335 1,402,328 1,122,424 Eliminations (400 ) 2,578 (940 ) 2,699 Total $ 913,027 $ 657,913 $ 1,401,388 $ 1,125,123 Operating Income (Loss) Natural Gas Distribution $ 197,876 $ 140,279 $ 294,982 $ 214,454 Clean Energy Ventures (7,553 ) (7,679 ) 56,721 10,644 Energy Services 83,273 25,533 99,801 59,870 Storage and Transportation 5,800 5,910 15,569 13,234 Home Services and Other (393 ) 778 602 570 Sub-total 279,003 164,821 467,675 298,772 Eliminations 946 5,401 1,851 7,269 Total $ 279,949 $ 170,222 $ 469,526 $ 306,041 Equity in Earnings of Affiliates Storage and Transportation $ 1,161 $ 85 $ 2,122 $ 1,078 Eliminations 291 653 730 1,320 Total $ 1,452 $ 738 $ 2,852 $ 2,398 Net Income (Loss) Natural Gas Distribution $ 144,531 $ 107,095 $ 211,439 $ 158,539 Clean Energy Ventures (3,958 ) (5,616 ) 44,172 4,906 Energy Services 61,292 17,028 71,550 40,961 Storage and Transportation 2,343 1,981 8,007 5,621 Home Services and Other (678 ) 384 (63 ) (216 ) Sub-total 203,530 120,872 335,105 209,811 Eliminations 757 (60 ) 501 412 Total $ 204,287 $ 120,812 $ 335,606 $ 210,223 Net Financial Earnings (Loss) Natural Gas Distribution $ 144,531 $ 107,095 $ 211,439 $ 158,539 Clean Energy Ventures (3,958 ) (5,616 ) 44,172 4,906 Energy Services 35,301 37,644 43,134 45,475 Storage and Transportation 2,343 1,981 8,007 5,621 Home Services and Other (678 ) 384 (63 ) (216 ) Sub-total 177,539 141,488 306,689 214,325 Eliminations 757 (2,912 ) 501 (3,305 ) Total $ 178,296 $ 138,576 $ 307,190 $ 211,020 Throughput (Bcf) NJNG, Core Customers 35.7 32.9 62.9 56.3 NJNG, Off System/Capacity Management 22.1 37.1 36.5 64.3 Energy Services Fuel Mgmt. and Wholesale Sales 35.2 38.3 63.5 68.4 Total 93.0 108.3 162.9 189.0 Common Stock Data Yield at March 31, 3.7 % 3.9 % 3.7 % 3.9 % Market Price at March 31, $ 49.06 $ 42.91 $ 49.06 $ 42.91 Shares Out. at March 31, 100,303 98,745 100,303 98,745 Market Cap. at March 31, $ 4,920,847 $ 4,237,144 $ 4,920,847 $ 4,237,144 Expand Three Months Ended Six Months Ended (Unaudited) March 31, March 31, (Thousands, except customer and weather data) 2025 2024 2025 2024 NATURAL GAS DISTRIBUTION Utility Gross Margin Operating revenues $ 618,645 $ 463,201 $ 952,410 $ 756,631 Less: Natural gas purchases 275,298 206,675 405,303 325,119 Operating and maintenance (1) 29,510 29,558 55,519 55,341 Regulatory rider expense 48,501 29,229 70,977 48,418 Depreciation and amortization 35,713 27,464 67,797 54,381 Gross margin 229,623 170,275 352,814 273,372 Add: Operating and maintenance (1) 29,510 29,558 55,519 55,341 Depreciation and amortization 35,713 27,464 67,797 54,381 Total Utility Gross Margin $ 294,846 $ 227,297 $ 476,130 $ 383,094 (1) Excludes selling, general and administrative expenses of $57.8 million and $58.9 million for the six months ended March 31, 2025 and 2024, respectively. Utility Gross Margin, Operating Income and Net Income Residential $ 215,668 $ 163,495 $ 345,686 $ 271,532 Commercial, Industrial & Other 37,108 28,676 60,977 49,507 Firm Transportation 33,908 26,490 57,084 47,254 Total Firm Margin 286,684 218,661 463,747 368,293 Interruptible 800 750 1,774 1,534 Total System Margin 287,484 219,411 465,521 369,827 Basic Gas Supply Service Incentive 7,362 7,886 10,609 13,267 Total Utility Gross Margin 294,846 227,297 476,130 383,094 Operation and maintenance expense 61,257 59,554 113,351 114,259 Depreciation and amortization 35,713 27,464 67,797 54,381 Operating Income $ 197,876 $ 140,279 $ 294,982 $ 214,454 Net Income $ 144,531 $ 107,095 $ 211,439 $ 158,539 Net Financial Earnings $ 144,531 $ 107,095 $ 211,439 $ 158,539 Throughput (Bcf) Residential 24.0 21.0 38.1 34.9 Commercial, Industrial & Other 4.5 3.9 7.1 6.5 Firm Transportation 5.0 4.7 8.4 8.3 Total Firm Throughput 33.5 29.6 53.6 49.7 Interruptible 2.2 3.3 9.3 6.6 Total System Throughput 35.7 32.9 62.9 56.3 Off System/Capacity Management 22.1 37.1 36.5 64.3 Total Throughput 57.8 70.0 99.4 120.6 Customers Residential 532,699 525,391 532,699 525,391 Commercial, Industrial & Other 33,291 33,108 33,291 33,108 Firm Transportation 22,060 22,992 22,060 22,992 Total Firm Customers 588,050 581,491 588,050 581,491 Interruptible 88 83 88 83 Total System Customers 588,138 581,574 588,138 581,574 Off System/Capacity Management* 26 26 26 26 Total Customers 588,164 581,600 588,164 581,600 *The number of customers represents those active during the last month of the period. Degree Days Actual 2,375 2,135 3,774 3,543 Normal 2,384 2,436 3,907 3,970 Percent of Normal 99.6 % 87.6 % 96.6 % 89.2 % Expand
Yahoo
05-02-2025
- Business
- Yahoo
Q1 2025 New Jersey Resources Corp Earnings Call
Operator Thank you for standing by. My name is [Frila], and I will be your conference operator today. At this time, I would like to welcome everyone to the New Jersey Resources Fiscal 2025 first-quarter conference call. (Operator Instructions) Please note this event is being recorded. Thank you.I would now like to introduce your speaker for today, Adam Prior, Director of Investor Relations. You may begin. Thank you. Welcome to New Jersey Resources fiscal 2025 first-quarter conference call and webcast. I'm joined here today by Steve Westhoven, our President and CEO; Roberto Bel, our Senior Vice President and Chief Financial Officer; as well as other members of our senior management statements in today's call contain estimates and other forward-looking statements within the meaning of the securities laws. We wish to caution listeners of this call that the current expectations, assumptions and beliefs forming the basis of our forward-looking statements include many factors that are beyond our ability to control or estimate could cause results to materially differ from our expectations as found on slide 2. these items can also be found in the forward-looking statement section of yesterday's earnings release burnished on Form 8-K and in our most recent Forms 10-K and 10-Q as filed with the do not by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events. We'll also be referencing certain non-GAAP financial measures such as net financial earnings or NFE. We believe that NFE, net financial loss, utility growth margin, financial margin, adjusted funds from operations and adjusted debt provide a more complete understanding of our financial performance. However, these non-GAAP measures are not intended to be a substitute for GAAP. Our non-GAAP financial measures are discussed more fully in item 7 of our slides accompanying today's presentation are available on our website and were furnished on our Form 8-K filed yesterday. They will begin with this quarter's highlights beginning on slide 4, followed by Roberto who will review our financial results, then we will open the call for your that said, I'll turn the call over to our President and CEO, Steve Westhoven. Please go ahead, Steve, thanks and good morning everyone. Fiscal 2025 is off to a strong start during the first quarter. We continued to execute on our strategic initiatives, driving growth across our business segments at New Jersey natural Gas. We achieved a significant milestone with the implementation of new rates. Following the approval of our base rate case, this was support our ability to recover the $850 million of investments made since our last rate case and results in a rate base of $3.2 launched the next iteration of Safe Green. Our $386 million energy efficiency program which is the largest in New Jersey natural gas history and runs through June of in saving are incremental to our rate base and earn a near real time return to a rider that is updated energy Ventures continues to advance its commercial solar strategy with a project pipeline of over one gigawatt. We remain well positioned to drive growth at storage and transportation. We continue to move forward on our capacity recovery project at Leaf River and Adelphia gateway section four rate case is progressing with an expected resolution later this finally at energy services, we continue to derive significant value from our portfolio of strategically located storage and transportation assets as well as continued contribution from the asset management agreements announced in achievements reinforce our commitment to delivering shareholder value through disciplined capital we review our strong first quarter performance. It's clear that NJR is not only delivering on its commitments but it's strategically positioned to capitalize on emerging growth let's turn to our guidance for fiscal 2025. On slide 5, this reflects the strength of our diversified portfolio and our ability to navigate current opportunities and long term fiscal 2025 PS guidance is $3.05 a share to $3.20 per share, which exceeds our long term growth rate of 79% and incorporates the one time gain from our sale of our residential solar are encouraged by the recent operating performance across all of our businesses and we will carefully monitor and assess our financial outlook as we move forward through the winter slide 6, we break out our fiscal year 2025 NFPS by segment, we slightly narrowed the contribution ranges of our business units in the first quarter and will continue to do so as the year progresses, the majority of our NFPS is expected to come from our utility let's discuss our complementary business units starting with New Jersey Natural Gas. On slide the quarter, we invested $127 million in New Jersey natural Gas with 43% of that CapEx providing near real time are leveraging investments to enhance reliability and drive consistent customer growth through our new construction and conversions as well as expansion into new to Slide 8 at Clean Energy Ventures, we successfully placed approximately 11 megawatts of commercial solar projects into service during the period with an additional 63 megawatts currently under ahead we are well positioned to continue growing our capacity by leveraging a robust and steadily expanding project pipeline of over one the sale of our residential solar portfolio enhances our balance sheet and recycles capital to support the future growth to slide 9, our storage and transportation business continues to deliver stable returns through fee based infrastructure investments including pipelines and storage facilities are strategically positioned to serve constrained energy Delphia gateway continues to work through its first rate case which reflects the investments made to enhance and modernize our pipeline system. We anticipate the conclusion of the process later in 2025 we are also actively advancing our capacity recovery project at Leaf River focusing on restoring and enhancing storage capabilities to meet growing energy demand overall, we have made excellent progress throughout the quarter on several fronts with that, I'll turn the call over to Roberta to review the financial results. Roberta. Thank you, Steve and good morning. Everyone. As noted earlier, fiscal 2025 is off to a good start in the first quarter. We reported an EPS of a dollar and $0.29 per share compared with any CPS of $0.74 per share. Last and G reported higher fee as a result of new rates being in place on November 21st following the successful conclusion of our rate case and clean energy ventures reported higher in the fee as a result of the sale of our residential solar portfolio, our storage and transportation and energy services businesses also deliver higher fee compared to the prior year let's move to slide 12 where we will discuss in your capital plan for fiscal 2025 and fiscal 2026. We are planning capital expenditures ranging from 1.3 to $1.6 billion which aligns with our long term and AP S growth target of 7 to 9%.We did not make any changes for capital plan compared to our prior disclosure and continue to expect spending between 610 and $790 million in capital investments during fiscal the next several years, we expect to employ capital to enhance our unique infrastructure, expand our clean energy portfolio and optimize our storage and transportation highlighted on slide 13, our strong balance sheet and liquidity position enable us to execute on our strategic priorities of maintaining financial adjusted funds from operations adjusted debt ratio is projected to range between 18% and 20% for fiscal 2025 which reflect our ability to generate solid operating cash flows and manage that levels are consistent with maintaining our investment grade credit rating at NGNG and a strong balance sheet at NG we expect our cash flow corporations to be between 465 $100 million in fiscal 2025 providing a solid foundation for our capital plan dividends and other corporate summary, our first quarter performance reflects the strength of our diversified portfolio and disciplined financial remain on track to deliver on our long term growth objectives supported by a solid balance sheet and steady cash that, I'll turn the call back to Steve for a discussion our organization initiatives on slide 14. Thanks Roberto. Last month we issued NJR'S fiscal 2024 corporate sustainability report. This reflects our commitment to transparency with our stakeholders in the evolving energy the report, we detailed our leadership and accomplishments in emissions reduction and renewable energy. As well as our long term vision for the role of existing pipeline sustainability initiatives remain business driven as highlighted by notable achievements such as record investments in energy efficiency and the advancement of new innovations such as carbon the year, New Jersey natural gas became the first natural gas utility in New Jersey to install and operate distributed carbon capture technology at our headquarters and we are also fueling a portion of our fleet operations with renewable work underscores our leadership in driving a more sustainable energy future and our commitment to pursuing innovative reliable clean energy conclude NJR is well positioned for sustained long term growth across our diversified businesses. As we highlight on the next slide, njr's diversified business model supports an industry leading long term NF EPS growth rate of 79%.Key drivers include continued customer growth at New Jersey natural gas, solar investments, TED and enhanced asset utilization at Leaf River and Adelphia we progress through the winter season, we are pleased with the strong operating performance across all of our businesses. Our results highlight the resilience of our physical infrastructure and equally important, the talent and dedication of our team.I'd like to recognize and thank our employees for all their hard work. And with that, let's open up the call for questions. Operator All right. Thank you. And we will now begin the question and answer session if you have dialed in and would like to ask a question, simply press the star, followed by the number one on your telephone keypad to raise your hand and join the queue. If you would like to read your questions, simply press the star one again one moment, please for your first our first question comes from the line of Shar Perez with Guggenheim Securities. Please go guys. Good morning. morning.I just want to get a sense on how you feel about the guide for 25 to 283. That's out there. You know, if we strip out that gain from the residential sale, add back a couple of pennies from lost earnings, we get to about $0.92 for Q1 and on a more recurring basis which, slightly below expectations, I guess. How are you trending within the EPS range? You have out there for 25. I know winter matters a lot and you highlighted you're going to be monitoring it, but just curious how you're trending for 25. Thanks. Share this Roberto. So we have our guidance out there three or 5 to 320. We're not changing that this point in time. Understood. But any sense on how you're trending within that range. It were we, well, we know range. That's all I can tell you right now. Okay, that's perfect. And then just on ce V, I mean, obviously good growth, you're seeing slightly larger opportunities outside your footprint versus a year ago, I guess what's driving that should we assume more of that mix will continue to shift outside of New Jersey in any sense on whether any of the uncertainties around? Maybe Ira are impacting the discussions, especially as we think about the pull forward of demand. Yeah, sharp, we've purposely diversified that portfolio and that strategy has been in place for many years and you really focused on jurisdictions that are friendly towards solar and support of, in the solar that has is basically, when you look at the Forli, we've got 11 megawatts are in service. You got 63 megawatts are in construction, you got about a gigawatt in our project pipeline, so, robust and certainly quite a bit of investment, more than we need for what we projected as CapEx over the next few years. You know, as far as, kind of the IRA, currently, based on our past safe Harvard provisions, we don't see any impacts in the near term, project as we move forward. So it's really as business as usual and all the metrics that you referenced, supporting the business. So, we're in a good place. Fantastic. Thanks, guys. Appreciate it, and see you soon. Appreciate it. Thanks. Operator Richard Sunderland, J.P. Morgan. Hi, good morning. Thank you time today. Hey, starting on winter and energy services, any color on the market opportunities for energy services upside during last month's cold snaps. I don't know if there's any way to frame this on an order of magnitude basis versus what you're able to realize last year. Just any thoughts there. Thank you. Yeah, the weather was constructive across all of our businesses, not only energy services but just all of our infrastructure. Business really shows the value of existing infrastructure in these peak periods of need, as the market grows. You know, we just see our infrastructure becoming more valuable and certainly the ability to organically expand that as a key driver for our business. You know, as far as how to think about that in reference to the event that happened, we've got, quite a bit of winter left and, you know, as we look forward to, the next quarter, we'll, we'll update, the market, as appropriate. And that's, that's about all that I will say at this point in time. Understood. Well, thank you for the color there and then turning to the Adelphia rate case process, I realize it's early. But are there any key dates in the procedural schedule we should watch for? I guess. I'm curious what the typical settlement. Window is. Yeah, it's a, it's a case, it's really just, verifying, quite a bit of the money that we spent during the initial construction, which is several years ago. So a regular section four rate case and, we said we expect this to proceed forward and be settled sometime in 2025. So we haven't changed for many of that. So that's about all the color that we can give right now since we're in proceeding. Great. Thank you. I'll leave it there. All right. Thanks rich. Operator Gabe Moreen, Mizuho. Good morning everyone. If I could just ask a question CV TX relative to what you spent year-to-date and the target range was this kind of what you intended, I guess to spend. And we should expect maybe a potential acceleration to kind of get you to the midpoint of the range or is there still just, I guess uncertainty around the timing and spend as to whether you're going to get to that midpoint of, of the CapEx range for CE V this year. Yeah, so this, this Roberto gave so for this year, you see what our guidance range for traffic for CV is out there, it is higher than what we did last year. And so from that perspective, yeah, you can consider that an acceleration but we expect to be well within our, our guidance range for the year as it is in our presentation. Thanks Roberto. And I know I think we asked about this last quarter about a potential follow on to the I and the additional thoughts as far as renewing the I IP. Now that you're the cases in the review. Hey, it's Pat Migliaccio. Thanks for the question. You know, just as a reminder, we do have the current I IP that has spending forecasted through fiscal year '25 that will close out with rates effective in 2026. We had a really constructive energy efficiency filing a record level of approved investment of $386 million that ramps up over time as far as a success or a follow on IP. We'll evaluate that and update you when we have something to report. Thanks, Pat. Appreciate. Thanks, Deb. Operator (Operator Instructions)Travis Miller, Morningstar. Travis.I think Richard asked my question the January operations of your midstream business. So look forward to hearing about that next quarter. But save green, wondering if you could remind us the regulatory treatment was any of that included in the rape case? And then if not, what's the recovery of the of that program? Hey Travis, this is Pat Sabri spend is not included in our base rate case filings. It is a separate, a separate filing that operates a little like our infrastructure writers. So we recover annual investment each year as we make that investment. So, when we consider our complexion of our capital investment, that's as near real time recovery as we can possibly get. Okay, perfect. And then a broader question, someone asked you have tariffs, is that going to have any impact either on getting the equipment that you need to execute the capital investment program or even more directly possibly on the solar Hey Travis, Steve, we talked about, just general, impacts from before, at this point in time, due to the construct of our business and you know, safe harbor provisions and things like that, you know, we don't expect any impacts, from what's going on out in the, out in the, I guess the regulatory. And, and. No impact on just your regular need for equipment or, supplies and stuff like that for your, for your utility operations aside from stuff. No, I don't anything that, is significant at this point in time. You know, when you look at our overall makeup, especially if you look at the utility, most of it's labor. So you materials is a smaller portion of it and, I would expect that, any issues we have would be kind of quickly, worked through. So not seeing it as a, as a big issue, going to be fluid, we'll, we'll monitor this as it moves forward, but, we have no expectation of any impact at this point. Okay, great. Thanks so much. Alright, thanks. Travis. Operator Thank you, and I'm showing no further questions at this time. I would like to turn it back to Adam Prior for closing remarks. Thanks so much and thanks to all of you for joining us. As always, we appreciate your investment and interest in NJR and have a good rest of your day. Thanks again. Operator Thank you, and this concludes today's conference call. You may now disconnect.
