New Jersey Resources Corporation (NYSE:NJR) Q4 2023 Earnings Call Transcript

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Robert Mosca: Hi. Good morning, everyone. So on slide nine, which is the staging of the CEV backlog additions, the big points on the x-axis changed. So it’s kind of hard to tell if anything is different with respect to project timing, but any notable developments you want to call out? It also seems like CEV CapEx in ’24 is going to be slightly higher than originally thought. So any thoughts there would be helpful?

Stephen Westhoven: So what are you looking for Robert? I’m not sure what the question is?

Robert Mosca: Yes, sorry. So slide nine, the CEV project addition time line. So just wondering if anything has changed because the breakpoints on the x-axis are different than were in the prior quarter. But any developments or kind of steady as she goes? And it also looks like the ’24 CapEx for CEV is slightly higher than originally thought. So any thoughts there?

Roberto Bel: Hey, Rob, this is Roberto. So on slide nine, if you compare this slide to prior slides from pior calls, there is no significant difference other than that our in-service capacity has increased because we have been in — significant [indiscernible] megawatts internally. But if you look at the total, right, that 1.2 gigawatts that we have on the right, has not changed. So we continue to move and progress, creating our pipeline, but from the last quarter when we had this conversation, no material changes.

Robert Mosca: Okay. Great. That’s helpful. And Steve I think you touched on it in your prepared remarks just with the widening of the guidance range. Is that just to match your peers? Or is there any more earnings variability in your base businesses this year compared to prior years? And if there is, just wondering what that could be attributable to?

Roberto Bel: No, not related to more variability. This is exactly what you’re saying to much of our peers. If you think about our guidance range, it’s been about $0.10 for 12 years, I don’t know, more than 10 years. Despite that, we have been growing earnings every single year, right? So this is just to bring us back in line with what our peers are projecting on a relative basis.

Robert Mosca: Okay. Great. Thanks, Roberto. And just a quick last one for me. I know you mentioned kind of pursuing the service enhancements at Leaf River. Just wondering, is that something that could be monetized? Is that an area of growth? Or is that just improving customer service for those customers?

Stephen Westhoven: No, I think the whole strategy associated with our S&T business to be able to get on to organic growth with those assets. And certainly, we’ve got a growth mindset in those businesses. So, yes, we’ve got some small investments that we’re making now tied to some contractual arrangements and I think moving forward, it’s been a secret that storage is being expanded in the Gulf Coast. And certainly, pipeline infrastructure in the Northeast is difficult to build greenfield expanding existing pipelines is much more — is much easier. So when we look at those two facts, we look at expansion. We’ve got nothing to announce now, but it’s certainly something that we look at that could be outside of the plan.

Robert Mosca: Got it. All right. Thanks for the day, everyone.

Stephen Westhoven: Thank you.

Operator: [Operator Instructions] We have no further questions at this time. I’ll turn the call back over to Adam Prior for any closing remarks.

Adam Prior: Thanks, Regina. I’d like to thank everyone for joining us this morning. As a reminder, a recording of this call is available for replay on our website. Everyone have a happy and safe Thanksgiving. And as always, we appreciate your interest and investment in NJR. Thanks so much and goodbye.

Operator: That will conclude today’s call. Thank you all for joining. You may now disconnect.

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