New Jersey Resources Corporation (NJR) delivered solid second-quarter results for fiscal 2024 (quarter ended 2024-03-31), with net financial earnings (NFE) of $1.41 per share and revenue of $661.6 million. Management reaffirmed full-year NFEPS guidance of $2.85–$3.00 per share, underscoring a solid pace of earnings growth despite a complex macro backdrop and weather-related volatility in the winter. The quarter featured a meaningful contribution from Energy Services (driven by brief periods of volatility in natural gas prices) and ongoing strength in New Jersey Natural Gas (NJN) margins through a decoupled framework. NJR also highlighted substantial growth initiatives across its Clean Energy Ventures (CEV) solar platform and the Leaf River storage project, with a pipeline of 874 MW in CEV and approximately 34 MW under construction in the current year, signaling a deliberate pivot toward higher-return non-regulated opportunities while preserving core regulated earnings power.
Financial momentum was supported by a disciplined capital plan and robust cash generation. Operating cash flow reached $307.8 million in the quarter, with free cash flow of $193.6 million, and the company reiterated an expectation for cash flow from operations of $450–$490 million in fiscal 2024 and 2025. NJR’s balance sheet remains leveraged toward fixed-rate, long-duration capital, with total debt of about $3.226 billion and total assets around $6.648 billion. The company expects to maintain ample liquidity and to fund a capital program of roughly $1.2–$1.5 billion over the next several years, supported by a strong operating base and a flexible dividend policy.
Key investor takeaways: (1) NJR’s regulated utility arm (NJN) remains a cash-generating backbone with weather-decoupled utility margins; (2) Energy Services contributed to earnings via market opportunities during volatility; (3) CEV and Leaf River provide optionality for growth beyond traditional utility earnings, with a 874 MW pipeline and a 4 Bcf Leaf River expansion under consideration; (4) balance sheet remains solid but levered, with a moderate liquidity cushion and no near-term debt maturities in 2024. The stock presents a defensive-leaning utility core with incremental optionality from renewables and gas storage/transport infrastructure.