Q2 2024 New Jersey Resources Corp Earnings Call
Operator: Thank you for standing by. My name is John, and I will be your conference operator today. At this time, I would like to welcome everyone to the New Jersey Resources fiscal 2024 second quarter conference call and webcast. All lines have been placed on mute to prevent any background noise.
Thank you for standing by my name is John and I'll be a conference operator today at this time I would like to welcome everyone to the New Jersey resources fiscal 2024 second quarter conference call and webcast. All lives of those based on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer.
Operator: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Adam Prior, Director of Investor Relations. Please go ahead.
Operator: If you would like to ask a question. During this time Super Brite Star followed by the number one on your thought of phone keypad. If you would like to withdraw your question grasp our win again. Thank you I would now like to turn the call over to Adam Prior director of Investor Relations. Please go ahead. Thank.
Adam Prior: Thank you. This is the New Jersey Resources fiscal 2024 second 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 team. Certain statements in today's call contain estimates and other forward-looking statements within the meaning of the securities law. We wish to caution listeners of this call that the current expectations, assumptions, and beliefs forming the basis for our forward-looking statements include many factors that are beyond our ability to control or estimate precisely. This could cause results to differ materially from our expectations as found on slide 1.
Adam Prior: Welcome to New Jersey resources fiscal 2024 second quarter conference call and webcast I'm joined here today by Steve West here within our President and CEO, Roberto <unk>, Our senior Vice President and Chief Financial Officer, as well as other members of our senior management team certain statements in today's call contain estimates and other forward looking statements within the meaning of the six.
Adam Prior: <unk> law, we wish to caution listeners of this call that the current expectations assumptions and beliefs, forming the basis for our forward. Looking statements include many factors that are beyond our ability to control or estimate precisely this could cause results to differ materially from our expectations as found on slide one.
Adam Prior: These items can also be found in the forward-looking statement section of today's earnings release, furnished on Form 8K, and in our most recent forms, 10K and 10Q, as filed with the FEC. We 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 will also be referring to certain non-GAAP financial measures, such as net financial earnings or NFE.
Adam Prior: These items can also be found in the forward looking statements section of today's earnings release furnished on form 8-K and in our most recent forms 10-K and 10-Q as filed with the SEC.
Adam Prior: Do not by including this statement assume any obligation to review or revise any particular forward looking statements referenced herein in light of future events.
Adam Prior: We believe that NFE, net financial loss, utility gross 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.
Adam Prior: We will also be referring to certain non-GAAP financial measures such as net financial earnings are going to see.
Adam Prior: We believe that NFC net financial loss utility gross 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 and non-GAAP financial measures are discussed more fully in item seven of our 10-K.
Adam Prior: Our non-GAAP financial measures are discussed more fully in Item 7 of our 10-CAT. The slides accompanying today's presentation are available on our website and were furnished in our Form 8K file this morning. Our agenda for today is found on slide 4. Steve will begin with this year's highlights, followed by Roberto, who will review our financial results. Then we'll open it up for your questions. With that said, I'll turn the call over to our President and CEO, Steve Westhoven.
Stephen D. Westhoven: The slides accompanying today's presentation are available on our website or furnished on our form 8-K filed this morning, our agenda for today is found on slide four.
Speaker Change: Steve will begin with this year's highlights followed by Roberta who will review our financial results. Then we'll open it up for your questions with that said I'll turn the call over to our president and CEO of <unk>. Please go ahead.
Adam Prior: Please go ahead, Steve. Thanks, Adam. Good morning, everyone. New Jersey Resources delivered a strong performance in the second quarter. We reported net financial earnings of $1.41 per share in the period. And we are reaffirming our fiscal.
Stephen D. Westhoven: Thanks, Adam and good morning, everyone.
Adam Prior: The resources delivered a strong performance in the second quarter, we reported net financial earnings $1 41 per share in the period and we are reaffirming our fiscal 2024 end of EPS guidance range of $2 85 to $3 per share.
Stephen D. Westhoven: and a VPS guidance range of $2.85 to $3.00 per share. I'll take you through the highlights, which are outlined on slide five in our presentation.
Stephen D. Westhoven: I will take you through the highlights which are outlined on slide five in our presentation.
Stephen D. Westhoven: We continue to see a trend of strong customer growth at New Jersey Natural Gas and achieved higher utility gross margin for the quarter. Throughout a relatively warm winter marked by periods of volatility, New Jersey Natural Gas once again demonstrated its ability to provide cost-effective and reliable service. New Jersey Natural Gas is decoupled, meaning the utility gross margin is inflated from changes due to weather and customer usage.
Stephen D. Westhoven: We continue to see a trend of strong customer growth at New Jersey, natural gas and achieved higher utility gross margin for the quarter.
Stephen D. Westhoven: Throughout a relatively warm winter marked by periods of volatility Jersey natural gas once again demonstrated its ability to provide cost effective and reliable service.
Stephen D. Westhoven: New Jersey natural gas is decoupled.
Stephen D. Westhoven: Utility gross margin is insulated from changes due to weather and customer usage.
Stephen D. Westhoven: We continue to remain aligned with all of our stakeholders to provide the best, most affordable service for our customers. During the period, we filed a base rate case to recover capital investments of approximately $850 million since the settlement of our last rate case in 2021, as well as a new Sabre program that represented the largest energy efficiency filing in our history. We remain active at Clean Energy Ventures with approximately 34 megawatts of projects under construction that will add to the 5 megawatts of capacity placed in the service thus far this year, and our project pipeline is expanding, allowing this growth to continue well into the future.
Stephen D. Westhoven: Continued to remain aligned with all of our stakeholders to provide the best most affordable service for our customers.
Stephen D. Westhoven: During the period, we filed a base rate case to recover capital investments of approximately $850 million since the settlement of our last rate case in 2021.
Stephen D. Westhoven: As well as our new save Green program that represented the largest energy efficiency filings in our history.
Stephen D. Westhoven: We remain active at clean energy ventures, with approximately 34 megawatts of projects under construction that will add to the five megawatts of capacity placed in the service. Thus far this year and our project pipeline is expanding allowing this growth to continue well into the future.
Stephen D. Westhoven: We reported solid contributions from S&T, and as we announced in our last conference call, energy services outperformed in January, capitalizing on a brief period of pricing volatility. Moving to slide 6, in November, we provided NFBPS with an initial guidance range of $2.70 to $2.85 per share.
Stephen D. Westhoven: We reported solid contributions from S&P and as we announced in our last conference call Energy services outperforming January capitalizing a brief period of pricing volatility.
Stephen D. Westhoven: Moving to slide six in November we provided as Etfs initial guidance range of $2 $72 85 per share.
Stephen D. Westhoven: As a result of our outperformance, we increased our fiscal 2024 NFBPS guidance by $0.15 per share in February. As discussed in prior calls, we expect fiscal 2024 to exceed our stated 79% long-term growth rate. Slide 7 shows the expected NFBPS percentage contribution by business segment for fiscal 2024, as well as a general guide for what we expect in the future. Fiscal 2024 is somewhat unique as energy services will represent a higher portion due to the AMAs and outperformance in the quarter.
Stephen D. Westhoven: As a result of our outperformance we increased our fiscal 2024 S. EPS guidance by <unk> 15 per share in February.
Stephen D. Westhoven: As discussed in prior calls we expect fiscal 2020 for it to exceed our stated 79% long term growth rates.
Stephen D. Westhoven: Slide seven shows the expected NSE EPS percentage contribution by business segment for fiscal 2024, as well as a general guide for what we expect in the future.
Stephen D. Westhoven: 'twenty 'twenty four is somewhat unique as energy services will represent a higher portion due to the amazing outperformance in the quarter.
Stephen D. Westhoven: However, in future years, we expect to return to a more normalized segment breakout with 60 to 70% coming from our utility business. With that, I'll turn the discussion over to our business units, beginning on slide eight with New Jersey Natural Gas. We've invested $211 million at New Jersey Natural Gas through a variety of programs in fiscal 2024, with approximately 45% of that capex providing near real-time returns. Within that 45% is the Save Green Program, which helps residential and commercial customers lower their energy usage.
Stephen D. Westhoven: However in future years, we expect to return to a more normalized segment breakout with 60% to 70% coming from our utility business.
Speaker Change: With that I'll turn the discussion over to our business units beginning on slide eight with New Jersey natural gas.
Stephen D. Westhoven: We've invested $211 million at New Jersey natural gas through a variety of programs in fiscal 2024 with approximately 45% of that capex, providing near real time returns.
Stephen D. Westhoven: Within that 45% as the save Green program, which helps residential and commercial customers lower their energy usage.
Stephen D. Westhoven: We've spent approximately $33 million thus far this year to help our customers save money and reduce their carbon footprint. We achieved solid new customer growth during the period through a combination of new construction and conversions throughout our service territories. Finally, we're continuing to pursue new innovations that further our decarbonization strategy. An example of this are the two new Carmen capture units that we recently installed at our headquarters in New Jersey. These units, which are in the initial phase of testing, are expected to reduce the emissions profile of our building while providing additional data as we pursue new decarbonization initiatives.
Stephen D. Westhoven: We have spent approximately $33 million, thus far this year to help our customers save money and reduce their carbon footprint.
Stephen D. Westhoven: We achieved solid new customer growth during the period through a combination of new construction and conversions throughout our service territories.
Stephen D. Westhoven: Finally, we're continuing to pursue new innovations that further our decarbonization strategy.
Stephen D. Westhoven: Example of this our two new carbon capture units that we recently installed at our headquarters in New Jersey.
Stephen D. Westhoven: These units, which are in the initial phase of testing are expected to reduce the emissions profile of our building, while providing additional data as we pursue new decarbonization initiatives.
Stephen D. Westhoven: By encouraging innovation in energy efficiency, clean fuels, renewables, and other emerging technologies like carbon capture, we are demonstrating our ability to achieve long-term emissions reduction goals. Turning to slide nine, I'll provide an update on our base rate case. On January 31st, we requested an increase in base rates of approximately $223 million, equivalent to an increase of $159 million in operating income. The rate case is progressing as expected, and we plan to update our filing to include nine months of actual results later this month.
Stephen D. Westhoven: By encouraging innovation and energy efficiency clean fuels renewables and other emerging technologies like carbon capture we are demonstrating our ability to achieve long term emissions reduction goals.
Stephen D. Westhoven: Turning to slide nine I'll provide an update on our base rate case.
Stephen D. Westhoven: On January 31, we requested an increase of base rates of approximately $243 million equivalent to an increase of $159 million in operating income.
Stephen D. Westhoven: The rate case is progressing as expected.
Stephen D. Westhoven: Plan to update our filing to include nine months of actual results later this month.
Stephen D. Westhoven: We will continue working with the New Jersey Board of Public Utilities towards a resolution that balances the interests of our customers and the company, with new rates expected to be in place for fiscal 2025. Moving to slide 10, Clean Energy Ventures has continued to add new solar capacity during the fiscal year, with an additional 34 megawatts under construction. We are also growing our solar pipeline, which now includes over 870 megawatts of potential investment opportunities.
Stephen D. Westhoven: We will continue working with the New Jersey Board of public utilities towards a resolution that balances the interest of our customers and our company with new rates expected to be in place for fiscal 2025.
Stephen D. Westhoven: Moving to slide 10, clean energy ventures is continuing to add new solar capacity during the fiscal year with an additional 34 megawatts under construction. We're also growing our solar pipeline, which now includes over 870 megawatts of potential investment options.
Stephen D. Westhoven: Over the past few years, we've expanded our portfolio geographically, with 51% of our pipeline outside of New Jersey. Our focus is on developing solo investment opportunities that provide high single-digit unlevered returns. Finally, our S&T business performed to our expectations during the period. We continue to pursue organic growth opportunities to maximize those assets. At Lead River, we are initiating a capital investment project to expand the working capacity within our caverns by approximately 4 BCF.
Stephen D. Westhoven: Over the past few years, we've expanded our portfolio geographically with 51% of our pipeline outside of New Jersey.
Stephen D. Westhoven: Our focus is on developing solar investment opportunities that provide high single digit Unlevered returns.
Stephen D. Westhoven: Finally, our FMC business performed to our expectations during the period, we continue to pursue organic growth opportunities to maximize those assets.
Stephen D. Westhoven: At leaf River, we are initiating a capital investment project to expand the working capacity within our cabins by approximately four Bcf.
Stephen D. Westhoven: We recently initiated an open season to provide additional capacity to our customers in regions with considerable demand for reliable and affordable natural gas storage capabilities. With that, I'll turn the call over to Roberto for a review of our financial results.
Stephen D. Westhoven: We recently initiated an open season to provide additional capacity to our customers in regions with considerable demand for reliable and affordable natural gas storage capabilities.
Stephen D. Westhoven: With that I'll turn the call over to Roberto for a review of our financial results Roberta.
Roberto F. Bel: Thank you, Steve, and good morning, everyone. Slide 13 shows the main drivers of our NFE for our fiscal 2024 second quarter and third half. In the second quarter, we reported a net fee of $138.6 million, or $1.41 per share, compared with a net fee of $112.3 million or $1.16 per share last year. New Jersey National Gas reported NFE in line with expectations as higher utility growth margin was partially offset by higher depreciation and operating expenses.
Roberto: Hey, good morning, everyone Slide 13 shows the main drivers of our revenue for fiscal 'twenty for second quarter and first half.
Roberto F. Bel: Second quarter, we reported <unk> of $148 $6 million.
Roberto F. Bel: Alright, all around 41 per share compared with him if you have $112 three alright.
Roberto F. Bel: Alright, well around <unk> <unk> per share last year.
Roberto F. Bel: New Jersey natural gas reported MSP in line with expectations as higher utility gross margin was partially offset by higher depreciation and operating expenses.
Roberto F. Bel: Clean Energy Ventures' NEP improved for the period by $3.8 million, largely due to increasing earnings related to the recognition of investment tax credits associated with solar sale leaseback financing transactions. Storage and transportation NFE remained largely flat for that period, while energy services reported NFE of $37.6 million, compared to $21.1 million in the second quarter of the prior year. Diesel performance was driven by energy services capturing additional financial margins during brief periods of volatility in the winter.
Roberto F. Bel: Clean energy ventures, Timothy improved for the period by $3 $6 million.
Roberto F. Bel: Largely due to an increasing in earnings related to the recognition of investment tax credit.
Roberto F. Bel: Associated with solar sale leaseback financing transactions.
Roberto F. Bel: Historically in transportation and a few remained largely flat for the period.
Roberto F. Bel: <unk> energy reported NFC on $33 6 million compared to $21 1 million in the second quarter of the prior year.
Roberto F. Bel: This outperformance was driven by energy services, capturing additional financial margin brief periods for voluntary would be weaker.
Roberto F. Bel: As we look to the remainder of fiscal 2024, it's important to note that we expect to recognize a significant portion of the Asset Management Agreement's total revenues during our fiscal fourth quarter. I'll move through the next few slides quickly as our capital plan, cash flows, and balance sheet projections remain largely unchanged from our previous goal. Current over capital plan is slide 14. For the next few years, we expect to invest between 1.2 and 1.5 billion dollars across the company.
Roberto F. Bel: As we look to the remainder of fiscal <unk> before it is important to note that we expect to recognize a significant portion of the asset management agreements total revenues during our fiscal fourth quarter.
Roberto F. Bel: I'll move through the next few slides quickly as our capital plan cash flows and balance sheet projections remain largely unchanged from our previous call.
Roberto F. Bel: Turning to our capital plan on slide 14 over the next few years, we expect to invest between one two and $1 $5 billion across our company.
Roberto F. Bel: As Steve mentioned earlier, we began a new capital project at Leith River and amended a capital plan to account for approximately $11 million of additional investment at S&T in fiscal 2024. Our capital projections are anchored by strong capital cooperation. On slide 15, we expect cash flows from operations to range between $450 and $419 million in both fiscal 2024 and fiscal 2025. Slide 16 shows in-year ready metrics. We continue to project 10 years' adjusted effects over adjusted debt to be between 17% and 18% for the year.
Roberto F. Bel: As Steve mentioned earlier, we began and new capital projects have leaf river and amended our capital plan to account for approximately 70 million of additional investment at FMT in fiscal 2024.
Roberto F. Bel: Our capital projections.
Roberto F. Bel: Core by strong cash flow from operations.
Roberto F. Bel: On slide 15, we expect cash flow from operations to range between 450 and $419 million in both fiscal 2024.
Roberto F. Bel: Fiscal 2025.
Roberto F. Bel: Collect 16 shows in your credit metrics.
Roberto F. Bel: We continue to project in Europe had yesterday.
Roberto F. Bel: Net debt to be between 17% and 18% for the year.
Roberto F. Bel: While we have no plans to issue block equity, our existing digital reinvestment program includes a waiver discount feature that allows us to raise equity on an opportunistic basis. Finally, on slide 17, we provide a breakout of our long-term debt. As you can see, most of our debt is fixed rate in nature, and we do not have a significant maturity in any particular year. For the remainder of fiscal 2024, we do not have the needed majority.
Roberto F. Bel: While we have no plans, we should located within our existing dividend reinvestment program includes how we reduce call feature that allows us to raise equity on an opportunistic basis.
Roberto F. Bel: Finally on slide 17, we provide a breakout of our long term debt as you can see most of our debt is fixed rate in nature.
Roberto F. Bel: Not asking if you can actually reduce in any particular year for.
Roberto F. Bel: For the remainder of fiscal 2024.
Roberto F. Bel: We do not happy you didn't measure it is.
Roberto F. Bel: Our NECPS guidance for fiscal 2024 and our long-term NECPS growth guidance assume higher interest rates for longer, and we have substantial liquidity at both NGR and NGNG. With that, I will turn the call back to you. Thanks, Roberto.
Roberto F. Bel: Our <unk> guidance for fiscal 2024, and our long term EBITDA growth guidance.
Roberto F. Bel: Higher interest rates for longer.
Roberto: We have substantial liquidity at both <unk> and <unk>.
Roberto F. Bel: With that I will turn the call back to Steve.
Roberto F. Bel: Thanks, Roberto. In conclusion, thanks to higher NFE contributions from energy services and steady performance from our core businesses, Fiscal 2024 is outperforming our initial expectations. NJR benefits from operating a complementary portfolio of businesses that are essential for sustained growth. These assets are dependable cash generators and difficult to replicate. We continue to pursue organic expansion to maximize NJR's earning potential and support our peer-leading growth rate. As always, I want to thank all of our employees for their hard work. And with that, let's open the call for any questions.
Roberto: Thanks, Alberto in conclusion, thanks to higher NSE contributions from energy services and steady performance from our core businesses fiscal 2024 is outperforming our initial expectations.
Roberto F. Bel: And Jr. Benefits from operating a complementary portfolio of businesses that are essential for sustained growth fees.
Roberto F. Bel: These assets are dependable cash generators and difficult to replicate.
Roberto F. Bel: We continue to pursue organic expansion to maximize <unk> potential and support our peer leading growth rate.
Roberto F. Bel: As always I want to thank all of our employees for their hard work and with that let's open the call for any questions.
Roberto F. Bel: Yeah.
Operator: At this time, if you would like to ask a question, please press star followed by the number one on your telephone keypad. If you would like to withdraw your question, simply press star one again. We'll pause for just a moment to compile the Q&A roster. Thank you. The first question comes from the line of Richard Sunderland from J.P. Morgan.
Speaker Change: At this time, if you'd like to ask a question. Please press star followed by the number one on your telephone keypad. If you would like to withdraw your question Super Press Star one again.
Operator: Well pause for just a moment to compile the Q&A roster. Thank you.
Operator: Okay.
Richard Wallace Sunderland: The first question comes from the line of Richard <unk> from Jpmorgan. Please go ahead.
Richard Wallace Sunderland: Hi, good morning. Can you hear me? Yeah, we can hear you, Rich.
Richard Wallace Sunderland: Hi, Good morning can you hear me.
Richard Wallace Sunderland: Yes, we can hear you rich how are you doing.
Unknown Executive: How are you doing? Great, thanks. And thanks for the time today. Maybe starting with Leaf River, the capacity recovery project, could you speak a little bit more about this in terms of, if this is a precursor to a larger expansion of Leaf River, you know, how should we think about the financial impact and timing of contributions from the incremental capacity? Any other key details here would be helpful?
Richard Wallace Sunderland: Great. Thanks, and thanks for the time today.
Unknown Executive: Starting with leaf river the capacity recovery project could you speak a little bit more to this in terms of if this is a precursor to a larger expansion of leaf river, how should we think about the financial impact and timing of contributions from the incremental capacity any other key details here.
Unknown Executive: Helpful.
Unknown Executive: Certainly, we've got nothing to announce as far as the larger expansion goes, but for the work that's being done there now, it certainly could be helpful in a future expansion of some pumps and some deep grinding, deep watering capability, but I think the thing to focus on is projects like these and of these sizes that help with just organic expansion as a company and our ability to grow. We just completed the open season, which concluded at the beginning of May, and we haven't analyzed all the details yet.
Speaker Change: Got it.
Unknown Executive: Certainly we've got nothing to announce as far as the larger expansion guys, but for the work that's being done there then it certainly helps.
Unknown Executive: Helpful and future expansion, some pumps and some deep variety deepwater capability.
Unknown Executive: The thing to focus on is projects like these in our <unk> Sciences that helps with just organic expansion in the company and our ability to grow.
Unknown Executive: We just completed.
Unknown Executive: The open season.
Unknown Executive: Included beginning in May and.
Speaker Change: We have analyzed all of the detail Jeff we have some contracts you do because just to speak to the economics and we're very optimistic about the project.
Unknown Executive: We've still got some contracts to do, but just to speak to the economics, we're very optimistic about the project and fully believe that we'll be moving forward with this, so I'm upset about that until we get to the final contracts and details associated with it.
Unknown Executive: We believe that we'll be moving forward with this.
Unknown Executive: So.
Unknown Executive: So we did see contracts and details associated with it.
Unknown Executive: Understood. Thank you for the commentary there, though.
Speaker Change: Understood. Thanks for the commentary there, though and then turning to CEB just curious about how youre thinking of New Jersey at this point.
Unknown Executive: The most recent solicitation selected one of your projects.
Speaker Change: Any thoughts on pricing future expectations to deploy more megawatts through this process and any other learnings.
Unknown Executive: And then turning to the CEV, just curious about how you're thinking of New Jersey at this point. I believe the most recent solicitation selected one of your projects. Any thoughts on pricing, future expectations to deploy more megawatts through this process, any other learnings?
Speaker Change: So yes, we were happy to see that.
Unknown Executive: Going forward the CSI program.
Unknown Executive: So, yeah, we were happy to see that, you know, New Jersey has moved forward with their CSI program, and that's moving forward projects that are 5 megawatts and greater. So, good to see that go forward.
Unknown Executive: Moving forward.
Unknown Executive: There are five megawatts and greater.
Unknown Executive: So good to see that and you're right. We did have one project that was on our own in there.
Unknown Executive: And you know, right, we did have one project that was on our own in there. You know, as far as, you know, further comments about it, you know, we do have relationships with a number of other developers, so, you know, we expect that, you know, we'll be certainly active in the New Jersey solar market, but I think from an investor standpoint, to look at this from a project pipeline point of view, we've got 874 megawatts in our project pipeline in CEB, and that's more than enough to give us investment opportunities in the near future.
Unknown Executive: As far as further comments about it.
Unknown Executive: Do you have relationships with a number of other developers.
Unknown Executive: So we expect that.
Unknown Executive: We'll be we'll be certainly.
Unknown Executive: New Jersey solar market.
Unknown Executive: From an investor standpoint to look at this from a project pipeline point of view, we got 874 megawatts in our project pipeline in CBD and Thats more than enough to give us investment opportunities in the near future.
Unknown Executive: You know, as far as returns go, we're still, you know, targeting the high single-digit return for projects moving forward, and, you know, that's our yardstick to continue to make investments. So, overall, constructive that New Jersey's moving forward, and, you know, we're optimistic about our pipeline project moving forward as well.
Unknown Executive: As far as returns go we're still targeting the high single digit return for projects moving forward.
Unknown Executive: Our yard stick to continue to make investments.
Unknown Executive: Overall.
Unknown Executive: Is that new Jersey is moving forward.
Unknown Executive: We're we're optimistic about our pipeline question going forward as well.
Unknown Executive: And maybe just a quick follow-up on the CEV front, given data centers are so topical these days, curious how you think about data center demand and the state's efforts there, and if that might impact the CEV outlook, either in New Jersey or, I guess, your regional efforts. You know, I think more broadly, it just really points to
Speaker Change: Understood. That's very helpful. Maybe just a quick follow up on the CEB front given data centers are so topical. These days curious how you think about data center demand and in the state's efforts, there and if that might impact the CEB outlook, either new Jersey, or I guess your regional efforts.
Unknown Executive: Yeah.
Unknown Executive: Understood. I'll leave it there. Thank you. All right, thanks, Rich. Again, if you would like to ask a question, please press.
Unknown Executive: I think more broadly, it just really points to the amount of infrastructure that we're going to need in order to supply all the energy that we have for all the endeavors, you know, moving forward, whether it's data centers or, you know, electric cars or just reliability in general. So as energy demand grows, bringing all of our infrastructure into the picture and using that in the longer term is going to be extremely important. So extremely constructive, you know, for the assets that we hold and the infrastructure business in general.
Unknown Executive: I think more broadly just really points to the amount of infrastructure that we're going to need in order to supply all the energy that we have for all of these endeavors moving forward, whether it's data centers or electric cars are just reliability in general.
Unknown Executive: So as energy demand grows.
Unknown Executive: Bringing all of our infrastructure into the picture and using that in the longer term as can be extremely important so extremely constructive for the assets that we hold in the infrastructure business in general.
Speaker Change: Understood I'll leave it there thank you alright.
Speaker Change: Alright, thanks rich.
Unknown Executive: Okay.
Operator: Again, if you would like to ask a question, please press star followed by the number one on your telephone keypad. Thank you. As there are no further questions at this time, this concludes our Q&A session. I would like to turn the call over to Adam for his closing remarks.
Unknown Executive: Again, if you would like to ask a question. Please press star followed by the number one on your telephone keypad.
Adam Prior: Thank you.
Operator: Okay.
Operator: Okay.
Operator: As there are no further questions at this time. This concludes our Q&A session I would like to turn the call over back to Adam for closing remarks.
Adam Prior: Well, thanks, everyone, for joining us this morning. As a reminder, a recording of this call is available for replay on our website. Later this month, we are attending the American Gas Association's, or AGA's, financial forum, and we hope to see many of you there.
Adam Prior: Well thanks, everyone for joining us this morning as a reminder reported in this call are available for replay on our website. Later. This month, we are attending the American Gas Association financial Forum and hope to see many of you there as always we appreciate your interest and investment in Jr. And good morning.
Adam Prior: As always, we appreciate your interest and investment in J.R. Have a good morning.
Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.
Operator: Yes.
Speaker Change: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation you may now disconnect.
Unknown Executive: We appreciate your interest and investment in NJR. Have a good morning.
Operator: We appreciate your interest and investment in Jr, and good morning.
Unknown Executive: Okay.