New Jersey Resources Corporation Q2 2023 Earnings Call

In our storage and transportation business, we benefited from solid operating performance from Adelphia Gateway and we continue to explore potential organic growth opportunities to maximize those assets.

And finally, although the winter was unusually warm, which resulted in lower energy usage energy services generated another profitable quarter.

Turning to slide five as I noted earlier, we are reiterating our fiscal 2023, and it's EPS guidance range of $2 60 to $2 72 per share.

We initially raised this guidance by 'twenty following our first quarter results due to higher contribution from New Jersey natural gas and outperformance at energy services during the winter storm Elliot in December of last year.

Our expected long term earnings EPS growth range remains at 7% to 9% from our original 2022 guidance and we expect to be at the higher end of that range for fiscal 'twenty four.

New Jersey natural gas had a strong quarter as highlighted on slide six we invested $195 million at New Jersey natural gas during the first six months of fiscal 2023 with over 37% of that Capex, providing near real time returns, we reported strong customer growth, adding over 4000, new customers in the first six.

Months of the year compared to approximately 3600 customers during the same period last year.

As indicated on prior calls we expect to file our next rate case in fiscal 2024, consistent with the timeline of our major technology investments.

Moving to slide seven we continue to see positive momentum at clean energy ventures.

Since the end of fiscal 2022, we placed 53 megawatts of new solar projects into service.

We continue to maintain a robust and diverse pipeline of solar investments in various stages of development, including Greenfield in late stage projects booked within and outside of New Jersey.

And we continue to innovate producing clean renewable energy to the repurposing of landfills and deployment of milestone floating solar arrays.

Over the past few months, we have seen progress in new Jersey's solar policy.

In December the New Jersey Board of public utilities approved the state's competitive solar incentive CSI program for.

For products over five megawatts.

Through this program New Jersey seeks to award 300 megawatts of solar projects per year.

No specific timing results are still to be determined we see that the CSI program is another sign of majors continued commitment towards renewable energy targets.

With that I will turn the call to Roberta for review of the financial results Roberta.

Thank you, Steve and good morning, everyone Slide nine shows the main drivers of our in the fee for the second quarter and first half of fiscal 2023.

For the first half of fiscal <unk>, we reported a strange year over year improvement in our consolidated results.

Year to date.

$286 million for gaming and some 50 cents per share.

With $196 million or <unk> <unk> per share last year.

This represents a 13% improvement in our net financial earnings per share for the period.

For the second quarter of fiscal 2003, we reported <unk> of $112 3 million or.

<unk> 16 per share.

Compared with $130 2 million or a global uncertainty uncertainty <unk> per share last year.

During the quarter higher utility gross margin of the year for natural gas and higher revenues at our I think the MTV businesses were more than offset by higher depreciation and interest expenses, which now include the impact of the LTE gateway meaningful, replacing two therapies lower financial margin I think the therapy.

However expenses related to our IP investments.

And the five new England or difference in the timing of incentive compensation accruals related or any field performance earlier this year.

Turning to our capital plan on Slide 10, as we have said before our fiscal year 2023, and 2024, we expect to invest between one one and $1 4 billion across the company.

On our recovery plan remains on track to achieve these investment levels.

We expect to tighten our capex range in future quarters, specifically at CEB.

And since our connection with <unk> and our regulatory outcomes on certain <unk> projects become more clear.

We're comfortable with a lower end of our CV capex range for fiscal 2023.

And have a number of opportunities that could move us toward the higher end.

Our capital projections or physical things three Anthony for our encore by a strong cash flow from operations and consistent with our long term EPS growth target of 79%.

And while we have no plans, we should block equity or.

15, DRAM reimbursement program includes a waiver discount feature that allows us to raise equity on an opportunistic basis.

With that I will turn the call back to Steve.

Thanks, Robert turning.

Turning to slide 11 in March New Jersey, Governor, Phil Murphy announced a series of executive orders with revised plans and targets for the state's clean energy future.

We embrace our company's role in transitioning to stay to cleaner forms of energy and reached a long term carbon emissions reduction goals.

<unk> been working toward de carbonization, and the cleaner energy future for many years and it's executing on our strategy to dramatically reduce greenhouse gas emissions.

With the strong encouragement of the state we've invested billions to reduce emissions through energy efficiency modernize our infrastructure and advance technological innovation.

We have had preliminary discussions with the state policymakers and we will continue to collaborate with our regulators and other utilities in the state as these processes unfold.

In conclusion, <unk>, an energy infrastructure company, focusing on meeting the needs of our customers as well as aligning with the clean energy future.

The reaffirmation of our guidance range and long term growth rates reflects the strength of our complementary portfolio of businesses.

But I also want to thank all of our employees for their hard work and contribution.

That I will now open the call for questions.

Thank you Ms <unk>, ladies and gentlemen at this time do you have any questions again. Please press star one if you do find that your question has been addressed you can remove yourself from the queue by pressing star one again, we will take our first question. This morning.