• |
Consolidated net income of $96.0 million, compared with $149.8 million in the second quarter of fiscal 2021.
|
• |
Consolidated net financial earnings (NFE), a non-GAAP financial measure, of $130.2 million, or $1.36 per share, compared with $170.6 million, or $1.77 per share, in the second quarter of fiscal 2021.
|
• |
The comparable prior year period included unusually high net financial earnings at Energy Services due to increased natural gas price volatility related to the extreme weather during February 2021.
|
• |
Increased fiscal 2022 net financial earnings per share (NFEPS) guidance range to $2.30 to $2.40 from the previously announced range of $2.20 to $2.30.
|
• |
Adelphia Gateway is now flowing gas to its South Zone, allowing for at least one large industrial customer in the Philadelphia metro area to replace coal power generation with natural gas.
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
|||||||||||||||
($ in Thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Net income
|
$
|
96,035
|
$
|
149,809
|
$
|
207,347
|
$
|
230,854
|
||||||||
Basic EPS
|
$
|
1.00
|
$
|
1.56
|
$
|
2.16
|
$
|
2.40
|
||||||||
Net financial earnings
|
$
|
130,206
|
$
|
170,604
|
$
|
195,976
|
$
|
215,261
|
||||||||
Basic net financial earnings per share
|
$
|
1.36
|
$
|
1.77
|
$
|
2.04
|
$
|
2.24
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
|||||||||||||||
(Thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Net income
|
$
|
96,035
|
$
|
149,809
|
$
|
207,347
|
$
|
230,854
|
||||||||
Add:
|
||||||||||||||||
Unrealized loss (gain) on derivative instruments and related transactions
|
42,022
|
29,255
|
(40,169
|
)
|
(8,235
|
)
|
||||||||||
Tax effect
|
(9,980
|
)
|
(6,954
|
)
|
9,556
|
1,958
|
||||||||||
Effects of economic hedging related to natural gas inventory
|
1,155
|
(7,209
|
)
|
24,732
|
(14,741
|
)
|
||||||||||
Tax effect
|
(274
|
)
|
1,713
|
(5,877
|
)
|
3,503
|
||||||||||
Net income to NFE tax adjustment
|
1,248
|
3,990
|
387
|
1,922
|
||||||||||||
Net financial earnings
|
$
|
130,206
|
$
|
170,604
|
$
|
195,976
|
$
|
215,261
|
||||||||
Weighted Average Shares Outstanding
|
||||||||||||||||
Basic
|
96,068
|
96,248
|
96,006
|
96,181
|
||||||||||||
Diluted
|
96,516
|
96,618
|
96,480
|
96,598
|
||||||||||||
Basic earnings per share
|
$
|
1.00
|
$
|
1.56
|
$
|
2.16
|
$
|
2.40
|
||||||||
Add:
|
||||||||||||||||
Unrealized loss (gain) on derivative instruments and related transactions
|
0.44
|
0.30
|
(0.42
|
)
|
(0.09
|
)
|
||||||||||
Tax effect
|
(0.10
|
)
|
(0.08
|
)
|
0.10
|
0.02
|
||||||||||
Effects of economic hedging related to natural gas inventory
|
0.01
|
(0.07
|
)
|
0.26
|
(0.15
|
)
|
||||||||||
Tax effect
|
—
|
0.02
|
(0.06
|
)
|
0.04
|
|||||||||||
Net income to NFE tax adjustment
|
0.01
|
0.04
|
—
|
0.02
|
||||||||||||
Basic net financial earnings per share
|
$
|
1.36
|
$
|
1.77
|
$
|
2.04
|
$
|
2.24
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
|||||||||||||||
(Thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
New Jersey Natural Gas
|
$
|
102,783
|
$
|
80,541
|
$
|
153,863
|
$
|
130,008
|
||||||||
Clean Energy Ventures
|
(6,491
|
)
|
(8,872
|
)
|
(13,312
|
)
|
(19,146
|
)
|
||||||||
Storage and Transportation
|
4,625
|
4,711
|
7,587
|
8,219
|
||||||||||||
Energy Services
|
29,940
|
96,528
|
47,507
|
98,028
|
||||||||||||
Home Services and Other
|
451
|
747
|
898
|
685
|
||||||||||||
Subtotal
|
131,308
|
173,655
|
196,543
|
217,794
|
||||||||||||
Eliminations
|
(1,102
|
)
|
(3,051
|
)
|
(567
|
)
|
(2,533
|
)
|
||||||||
Total
|
$
|
130,206
|
$
|
170,604
|
$
|
195,976
|
$
|
215,261
|
Company
|
Expected Fiscal 2022
Net Financial Earnings
Contribution
|
New Jersey Natural Gas
|
60 to 62 percent
|
Clean Energy Ventures
|
17 to 20 percent
|
Storage and Transportation
|
5 to 8 percent
|
Energy Services
|
13 to 15 percent
|
Home Services and Other
|
0 to 1 percent
|
• |
NJNG added 3,579 new customers during the first six months of fiscal 2022, compared with 3,694 during the same period in fiscal 2021. NJNG expects these new customers to contribute approximately $2.9 million of incremental utility gross
margin on an annualized basis.
|
• |
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 second quarter, NJNG spent $10.0 million under the program on various distribution system reinforcement projects. On March 31, 2022, the Company filed its first rate recovery request with the BPU for $25.6
million of estimated investments, including AFUDC, from November 30, 2020 through June 30, 2022.
|
• |
Adelphia Gateway - Adelphia Gateway is an 84-mile pipeline running from Marcus Hook to Martins Creek, Pennsylvania originally built as an oil pipeline, which is now being repurposed to deliver natural gas to the Philadelphia and New Jersey markets.
Adelphia Gateway is now flowing gas to its South Zone allowing for Kimberly Clark's mill in Chester, Pennsylvania to replace coal power generation with natural gas. Adelphia Gateway is now 90% complete and the project is expected to be
completed by the end of the year.
|
• |
During the first six months of fiscal 2022, capital expenditures were $285.7 million, including accruals, of which $119.3 million were related to NJNG, compared with $257.6 million, of which $188.4 million were related to NJNG, during
the same period in fiscal 2021.
|
• |
During the first six months of fiscal 2022, cash flows from operations were $330.5 million, compared
with cash flows from operations of $356.3 million during the same period of
fiscal 2021. The decrease in operating cash flows was due primarily to the reduction in net income due to the outperformance of Energy Services in fiscal 2021.
|
• |
New Jersey Natural Gas, NJR’s principal subsidiary, operates and maintains over 7,600 miles of natural gas transportation and distribution infrastructure to
serve over half a million customers in New Jersey’s Monmouth, Ocean and parts of Morris, Middlesex, Sussex and Burlington counties.
|
• |
Clean Energy Ventures invests in, owns and operates solar projects with a total capacity of more than 370 megawatts, providing residential and commercial 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 Project, 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.
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
|||||||||||||||
(Thousands, except per share data)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Utility
|
$
|
463,474
|
$
|
310,167
|
$
|
737,909
|
$
|
505,896
|
||||||||
Nonutility
|
448,842
|
492,020
|
850,249
|
750,596
|
||||||||||||
Total operating revenues
|
912,316
|
802,187
|
1,588,158
|
1,256,492
|
||||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Gas purchases
|
||||||||||||||||
Utility
|
212,892
|
113,235
|
335,161
|
169,380
|
||||||||||||
Nonutility
|
410,535
|
330,488
|
689,329
|
503,735
|
||||||||||||
Related parties
|
1,883
|
1,730
|
3,729
|
3,464
|
||||||||||||
Operation and maintenance
|
85,786
|
110,265
|
154,770
|
183,901
|
||||||||||||
Regulatory rider expenses
|
30,910
|
18,413
|
47,581
|
29,114
|
||||||||||||
Depreciation and amortization
|
31,435
|
26,848
|
61,828
|
54,210
|
||||||||||||
Total operating expenses
|
773,441
|
600,979
|
1,292,398
|
943,804
|
||||||||||||
OPERATING INCOME
|
138,875
|
201,208
|
295,760
|
312,688
|
||||||||||||
Other income, net
|
4,127
|
5,007
|
8,263
|
9,124
|
||||||||||||
Interest expense, net of capitalized interest
|
18,926
|
20,153
|
38,403
|
39,939
|
||||||||||||
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES
|
124,076
|
186,062
|
265,620
|
281,873
|
||||||||||||
Income tax provision
|
28,810
|
39,057
|
59,617
|
56,498
|
||||||||||||
Equity in earnings of affiliates
|
769
|
2,804
|
1,344
|
5,479
|
||||||||||||
NET INCOME
|
$
|
96,035
|
$
|
149,809
|
$
|
207,347
|
$
|
230,854
|
||||||||
EARNINGS PER COMMON SHARE
|
||||||||||||||||
Basic
|
$
|
1.00
|
$
|
1.56
|
$
|
2.16
|
$
|
2.40
|
||||||||
Diluted
|
$
|
1.00
|
$
|
1.55
|
$
|
2.15
|
$
|
2.39
|
||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING
|
||||||||||||||||
Basic
|
96,068
|
96,248
|
96,006
|
96,181
|
||||||||||||
Diluted
|
96,516
|
96,618
|
96,480
|
96,598
|
||||||||||||
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
|||||||||||||||
(Thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
NEW JERSEY RESOURCES
|
||||||||||||||||
A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:
|
||||||||||||||||
Net income
|
$
|
96,035
|
$
|
149,809
|
$
|
207,347
|
$
|
230,854
|
||||||||
Add:
|
||||||||||||||||
Unrealized loss (gain) on derivative instruments and related transactions
|
42,022
|
29,255
|
(40,169
|
)
|
(8,235
|
)
|
||||||||||
Tax effect
|
(9,980
|
)
|
(6,954
|
)
|
9,556
|
1,958
|
||||||||||
Effects of economic hedging related to natural gas inventory
|
1,155
|
(7,209
|
)
|
24,732
|
(14,741
|
)
|
||||||||||
Tax effect
|
(274
|
)
|
1,713
|
(5,877
|
)
|
3,503
|
||||||||||
Net income to NFE tax adjustment
|
1,248
|
3,990
|
387
|
1,922
|
||||||||||||
Net financial earnings
|
$
|
130,206
|
$
|
170,604
|
$
|
195,976
|
$
|
215,261
|
||||||||
Weighted Average Shares Outstanding
|
||||||||||||||||
Basic
|
96,068
|
96,248
|
96,006
|
96,181
|
||||||||||||
Diluted
|
96,516
|
96,618
|
96,480
|
96,598
|
||||||||||||
A reconciliation of basic earnings per share, the closest GAAP financial measure, to basic net financial earnings per share is as follows:
|
||||||||||||||||
Basic earnings per share
|
$
|
1.00
|
$
|
1.56
|
$
|
2.16
|
$
|
2.40
|
||||||||
Add:
|
||||||||||||||||
Unrealized loss (gain) on derivative instruments and related transactions
|
$
|
0.44
|
$
|
0.30
|
$
|
(0.42
|
)
|
$
|
(0.09
|
)
|
||||||
Tax effect
|
$
|
(0.10
|
)
|
$
|
(0.08
|
)
|
$
|
0.10
|
$
|
0.02
|
||||||
Effects of economic hedging related to natural gas inventory
|
$
|
0.01
|
$
|
(0.07
|
)
|
$
|
0.26
|
$
|
(0.15
|
)
|
||||||
Tax effect
|
$
|
—
|
$
|
0.02
|
$
|
(0.06
|
)
|
$
|
0.04
|
|||||||
Net income to NFE tax adjustment
|
$
|
0.01
|
$
|
0.04
|
$
|
—
|
$
|
0.02
|
||||||||
Basic NFE per share
|
$
|
1.36
|
$
|
1.77
|
$
|
2.04
|
$
|
2.24
|
||||||||
NATURAL GAS DISTRIBUTION
|
||||||||||||||||
A reconciliation of gross margin, the closest GAAP financial measure, to utility gross margin is as follows:
|
||||||||||||||||
Operating revenues
|
$
|
463,812
|
$
|
310,167
|
$
|
738,584
|
$
|
505,896
|
||||||||
Less:
|
||||||||||||||||
Natural gas purchases
|
215,223
|
118,452
|
339,817
|
177,761
|
||||||||||||
Operating and maintenance (1)
|
26,748
|
26,281
|
39,889
|
51,106
|
||||||||||||
Regulatory rider expense
|
30,910
|
18,413
|
47,581
|
29,114
|
||||||||||||
Depreciation and amortization
|
23,344
|
19,475
|
46,237
|
38,644
|
||||||||||||
Gross margin
|
167,587
|
127,546
|
265,060
|
209,271
|
||||||||||||
Add:
|
||||||||||||||||
Operating and maintenance (1)
|
26,748
|
26,281
|
39,889
|
51,106
|
||||||||||||
Depreciation and amortization
|
23,344
|
19,475
|
46,237
|
38,644
|
||||||||||||
Utility gross margin
|
$
|
217,679
|
$
|
173,302
|
$
|
351,186
|
$
|
299,021
|
(Unaudited)
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
||||||||||||||
(Thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
ENERGY SERVICES
|
||||||||||||||||
A reconciliation of gross margin, the closest GAAP financial measure, to Energy Services' financial margin is as follows:
|
||||||||||||||||
Operating revenues
|
$
|
412,645
|
$
|
462,569
|
$
|
781,889
|
$
|
692,046
|
||||||||
Less:
|
||||||||||||||||
Natural Gas purchases
|
411,146
|
330,280
|
689,833
|
504,117
|
||||||||||||
Operation and maintenance (1)
|
3,978
|
20,924
|
7,247
|
24,608
|
||||||||||||
Depreciation and amortization
|
32
|
13
|
60
|
55
|
||||||||||||
Gross margin
|
(2,511
|
)
|
111,352
|
84,749
|
163,266
|
|||||||||||
Add:
|
||||||||||||||||
Operation and maintenance (1)
|
3,978
|
20,924
|
7,247
|
24,608
|
||||||||||||
Depreciation and amortization
|
32
|
13
|
60
|
55
|
||||||||||||
Unrealized loss (gain) on derivative instruments and related transactions
|
40,446
|
29,348
|
(45,201
|
)
|
(9,433
|
)
|
||||||||||
Effects of economic hedging related to natural gas inventory
|
1,155
|
(7,209
|
)
|
24,732
|
(14,741
|
)
|
||||||||||
Financial margin
|
$
|
43,100
|
$
|
154,428
|
$
|
71,587
|
$
|
163,755
|
||||||||
(1) Excludes selling, general and administrative expenses of $0.6 million and $12.1 million for the three months ended March 31, 2022 and 2021, respectively, and approximately $1.1 million and $12.4 million for the six
months ended March 31, 2022 and 2021, respectively.
|
||||||||||||||||
A reconciliation of net income to net financial earnings is as follows:
|
||||||||||||||||
Net (loss) income
|
$
|
(3,031
|
)
|
$
|
75,662
|
$
|
62,713
|
$
|
114,534
|
|||||||
Add:
|
||||||||||||||||
Unrealized loss (gain) on derivative instruments and related transactions
|
40,446
|
29,348
|
(45,201
|
)
|
(9,433
|
)
|
||||||||||
Tax effect
|
(9,604
|
)
|
(6,976
|
)
|
10,753
|
2,243
|
||||||||||
Effects of economic hedging related to natural gas
|
1,155
|
(7,209
|
)
|
24,732
|
(14,741
|
)
|
||||||||||
Tax effect
|
(274
|
)
|
1,713
|
(5,877
|
)
|
3,503
|
||||||||||
Net income to NFE tax adjustment
|
1,248
|
3,990
|
387
|
1,922
|
||||||||||||
Net financial earnings
|
$
|
29,940
|
$
|
96,528
|
$
|
47,507
|
$
|
98,028
|
||||||||
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
|||||||||||||||
(Thousands, except per share data)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
NEW JERSEY RESOURCES
|
||||||||||||||||
Operating Revenues
|
||||||||||||||||
Natural Gas Distribution
|
$
|
463,812
|
$
|
310,167
|
$
|
738,584
|
$
|
505,896
|
||||||||
Clean Energy Ventures
|
11,827
|
6,476
|
22,010
|
12,846
|
||||||||||||
Energy Services
|
412,645
|
462,569
|
781,889
|
692,046
|
||||||||||||
Storage and Transportation
|
13,342
|
13,926
|
25,485
|
27,030
|
||||||||||||
Home Services and Other
|
13,222
|
12,773
|
27,173
|
25,350
|
||||||||||||
Sub-total
|
914,848
|
805,911
|
1,595,141
|
1,263,168
|
||||||||||||
Eliminations
|
(2,532
|
)
|
(3,724
|
)
|
(6,983
|
)
|
(6,676
|
)
|
||||||||
Total
|
$
|
912,316
|
$
|
802,187
|
$
|
1,588,158
|
$
|
1,256,492
|
||||||||
Operating Income (Loss)
|
||||||||||||||||
Natural Gas Distribution
|
$
|
141,311
|
$
|
100,876
|
$
|
215,494
|
$
|
163,788
|
||||||||
Clean Energy Ventures
|
(2,696
|
)
|
(6,469
|
)
|
(6,668
|
)
|
(14,733
|
)
|
||||||||
Energy Services
|
(3,132
|
)
|
99,278
|
83,646
|
150,860
|
|||||||||||
Storage and Transportation
|
3,180
|
4,185
|
5,056
|
7,874
|
||||||||||||
Home Services and Other
|
901
|
3,292
|
1,763
|
5,288
|
||||||||||||
Sub-total
|
139,564
|
201,162
|
299,291
|
313,077
|
||||||||||||
Eliminations
|
(689
|
)
|
46
|
(3,531
|
)
|
(389
|
)
|
|||||||||
Total
|
$
|
138,875
|
$
|
201,208
|
$
|
295,760
|
$
|
312,688
|
||||||||
|
||||||||||||||||
Equity in Earnings of Affiliates
|
||||||||||||||||
Storage and Transportation
|
$
|
1,256
|
$
|
3,386
|
$
|
2,312
|
$
|
6,579
|
||||||||
Eliminations
|
(487
|
)
|
(582
|
)
|
(968
|
)
|
(1,100
|
)
|
||||||||
Total
|
$
|
769
|
$
|
2,804
|
$
|
1,344
|
$
|
5,479
|
||||||||
Net Income (Loss)
|
||||||||||||||||
Natural Gas Distribution
|
$
|
102,783
|
$
|
80,541
|
$
|
153,863
|
$
|
130,008
|
||||||||
Clean Energy Ventures
|
(6,491
|
)
|
(8,872
|
)
|
(13,312
|
)
|
(19,146
|
)
|
||||||||
Energy Services
|
(3,031
|
)
|
75,662
|
62,713
|
114,534
|
|||||||||||
Storage and Transportation
|
4,625
|
4,711
|
7,587
|
8,219
|
||||||||||||
Home Services and Other
|
451
|
747
|
898
|
685
|
||||||||||||
Sub-total
|
98,337
|
152,789
|
211,749
|
234,300
|
||||||||||||
Eliminations
|
(2,302
|
)
|
(2,980
|
)
|
(4,402
|
)
|
(3,446
|
)
|
||||||||
Total
|
$
|
96,035
|
$
|
149,809
|
$
|
207,347
|
$
|
230,854
|
||||||||
Net Financial Earnings (Loss)
|
||||||||||||||||
Natural Gas Distribution
|
$
|
102,783
|
$
|
80,541
|
$
|
153,863
|
$
|
130,008
|
||||||||
Clean Energy Ventures
|
(6,491
|
)
|
(8,872
|
)
|
(13,312
|
)
|
(19,146
|
)
|
||||||||
Energy Services
|
29,940
|
96,528
|
47,507
|
98,028
|
||||||||||||
Storage and Transportation
|
4,625
|
4,711
|
7,587
|
8,219
|
||||||||||||
Home Services and Other
|
451
|
747
|
898
|
685
|
||||||||||||
Sub-total
|
131,308
|
173,655
|
196,543
|
217,794
|
||||||||||||
Eliminations
|
(1,102
|
)
|
(3,051
|
)
|
(567
|
)
|
(2,533
|
)
|
||||||||
Total
|
$
|
130,206
|
$
|
170,604
|
$
|
195,976
|
$
|
215,261
|
||||||||
Throughput (Bcf)
|
||||||||||||||||
NJNG, Core Customers
|
34.0
|
33.5
|
58.6
|
57.9
|
||||||||||||
NJNG, Off System/Capacity Management
|
24.0
|
23.6
|
49.1
|
49.5
|
||||||||||||
Energy Services Fuel Mgmt. and Wholesale Sales
|
76.7
|
112.7
|
140.2
|
217.5
|
||||||||||||
Total
|
134.7
|
169.8
|
247.9
|
324.9
|
||||||||||||
Common Stock Data
|
||||||||||||||||
Yield at March 31
|
3.1
|
%
|
3.3
|
%
|
3.1
|
%
|
3.3
|
%
|
||||||||
Market Price at March 31
|
$
|
46.66
|
$
|
39.87
|
$
|
46.66
|
$
|
39.87
|
||||||||
Shares Out. at March 31
|
96,082
|
96,262
|
96,082
|
96,262
|
||||||||||||
Market Cap. at March 31
|
$
|
4,482,696
|
$
|
3,837,967
|
$
|
4,482,696
|
$
|
3,837,967
|
||||||||
(Unaudited)
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
||||||||||||||
(Thousands, except customer and weather data)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
NATURAL GAS DISTRIBUTION
|
||||||||||||||||
Utility Gross Margin
|
||||||||||||||||
Operating revenues
|
$
|
463,812
|
$
|
310,167
|
$
|
738,584
|
$
|
505,896
|
||||||||
Less:
|
||||||||||||||||
Natural gas purchases
|
215,223
|
118,452
|
339,817
|
177,761
|
||||||||||||
Operating and maintenance (1)
|
26,748
|
26,281
|
39,889
|
51,106
|
||||||||||||
Regulatory rider expense
|
30,910
|
18,413
|
47,581
|
29,114
|
||||||||||||
Depreciation and amortization
|
23,344
|
19,475
|
46,237
|
38,644
|
||||||||||||
Gross margin
|
167,587
|
127,546
|
265,060
|
209,271
|
||||||||||||
Add:
|
||||||||||||||||
Operating and maintenance (1)
|
26,748
|
26,281
|
39,889
|
51,106
|
||||||||||||
Depreciation and amortization
|
23,344
|
19,475
|
46,237
|
38,644
|
||||||||||||
Total Utility Gross Margin
|
$
|
217,679
|
$
|
173,302
|
$
|
351,186
|
$
|
299,021
|
||||||||
(1) Excludes selling, general and administrative expenses of $26.3 million and $26.7 million for the three months ended March 31, 2022 and 2021, respectively, and approximately $49.6 million and $45.5 million for the six months ended
March 31, 2022 and 2021, respectively
|
||||||||||||||||
Utility Gross Margin, Operating Income and Net Income
|
||||||||||||||||
Residential
|
$
|
155,514
|
$
|
124,468
|
$
|
248,119
|
$
|
210,443
|
||||||||
Commercial, Industrial & Other
|
30,120
|
23,050
|
49,222
|
40,090
|
||||||||||||
Firm Transportation
|
25,090
|
22,878
|
42,372
|
40,166
|
||||||||||||
Total Firm Margin
|
210,724
|
170,396
|
339,713
|
290,699
|
||||||||||||
Interruptible
|
606
|
792
|
1,360
|
1,630
|
||||||||||||
Total System Margin
|
211,330
|
171,188
|
341,073
|
292,329
|
||||||||||||
Off System/Capacity Management/FRM/Storage Incentive
|
6,349
|
2,114
|
10,113
|
6,692
|
||||||||||||
Total Utility Gross Margin
|
217,679
|
173,302
|
351,186
|
299,021
|
||||||||||||
Operation and maintenance expense
|
53,024
|
52,951
|
89,455
|
96,589
|
||||||||||||
Depreciation and amortization
|
23,344
|
19,475
|
46,237
|
38,644
|
||||||||||||
Operating Income
|
$
|
141,311
|
$
|
100,876
|
$
|
215,494
|
$
|
163,788
|
||||||||
|
||||||||||||||||
Net Income
|
$
|
102,783
|
$
|
80,541
|
$
|
153,863
|
$
|
130,008
|
||||||||
|
||||||||||||||||
Net Financial Earnings
|
$
|
102,783
|
$
|
80,541
|
$
|
153,863
|
$
|
130,008
|
||||||||
Throughput (Bcf)
|
||||||||||||||||
Residential
|
23.0
|
22.7
|
35.6
|
36.3
|
||||||||||||
Commercial, Industrial & Other
|
4.3
|
4.3
|
6.6
|
6.7
|
||||||||||||
Firm Transportation
|
5.6
|
5.7
|
9.2
|
9.6
|
||||||||||||
Total Firm Throughput
|
32.9
|
32.7
|
51.4
|
52.6
|
||||||||||||
Interruptible
|
1.1
|
0.8
|
7.2
|
5.3
|
||||||||||||
Total System Throughput
|
34.0
|
33.5
|
58.6
|
57.9
|
||||||||||||
Off System/Capacity Management
|
24.0
|
23.6
|
49.1
|
49.5
|
||||||||||||
Total Throughput
|
58.0
|
57.1
|
107.7
|
107.4
|
||||||||||||
Customers
|
||||||||||||||||
Residential
|
508,729
|
498,583
|
508,729
|
498,583
|
||||||||||||
Commercial, Industrial & Other
|
32,116
|
31,313
|
32,116
|
31,313
|
||||||||||||
Firm Transportation
|
27,226
|
31,545
|
27,226
|
31,545
|
||||||||||||
Total Firm Customers
|
568,071
|
561,441
|
568,071
|
561,441
|
||||||||||||
Interruptible
|
31
|
28
|
31
|
28
|
||||||||||||
Total System Customers
|
568,102
|
561,469
|
568,102
|
561,469
|
||||||||||||
Off System/Capacity Management*
|
22
|
17
|
22
|
17
|
||||||||||||
Total Customers
|
568,124
|
561,486
|
568,124
|
561,486
|
||||||||||||
*The number of customers represents those active during the last month of the period.
|
||||||||||||||||
Degree Days
|
||||||||||||||||
Actual
|
2,371
|
2,355
|
3,645
|
3,773
|
||||||||||||
Normal
|
2,444
|
2,456
|
3,994
|
4,031
|
||||||||||||
Percent of Normal
|
97.0
|
%
|
95.9
|
%
|
91.3
|
%
|
93.6
|
%
|
||||||||
(Unaudited)
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
||||||||||||||
(Thousands, except customer, SREC, TREC and megawatt)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
CLEAN ENERGY VENTURES
|
||||||||||||||||
Operating Revenues
|
||||||||||||||||
SREC sales
|
$
|
3,962
|
$
|
777
|
$
|
6,829
|
$
|
2,069
|
||||||||
TREC sales
|
1,019
|
817
|
1,865
|
1,507
|
||||||||||||
Solar electricity sales and other
|
4,057
|
2,268
|
7,711
|
3,988
|
||||||||||||
Sunlight Advantage
|
2,789
|
2,614
|
5,605
|
5,282
|
||||||||||||
Total Operating Revenues
|
$
|
11,827
|
$
|
6,476
|
$
|
22,010
|
$
|
12,846
|
||||||||
Depreciation and Amortization
|
$
|
5,311
|
$
|
4,685
|
$
|
10,544
|
$
|
10,118
|
||||||||
Operating (Loss)
|
$
|
(2,696
|
)
|
$
|
(6,469
|
)
|
$
|
(6,668
|
)
|
$
|
(14,733
|
)
|
||||
Income Tax (Benefit)
|
$
|
(1,952
|
)
|
$
|
(2,714
|
)
|
$
|
(3,998
|
)
|
$
|
(5,800
|
)
|
||||
Net (Loss)
|
$
|
(6,491
|
)
|
$
|
(8,872
|
)
|
$
|
(13,312
|
)
|
$
|
(19,146
|
)
|
||||
Net Financial (Loss)
|
$
|
(6,491
|
)
|
$
|
(8,872
|
)
|
$
|
(13,312
|
)
|
$
|
(19,146
|
)
|
||||
Solar Renewable Energy Certificates Generated
|
65,730
|
53,863
|
157,902
|
141,071
|
||||||||||||
Solar Renewable Energy Certificates Sold
|
20,000
|
3,400
|
32,200
|
9,495
|
||||||||||||
Transition Renewable Energy Certificates Generated
|
7,176
|
5,627
|
13,261
|
10,310
|
||||||||||||
Solar Megawatts Under Construction
|
67.7
|
12.4
|
67.7
|
12.4
|
||||||||||||
ENERGY SERVICES
|
||||||||||||||||
Operating Income
|
||||||||||||||||
Operating revenues
|
$
|
412,645
|
$
|
462,569
|
$
|
781,889
|
$
|
692,046
|
||||||||
Less:
|
||||||||||||||||
Gas purchases
|
411,146
|
330,280
|
689,833
|
504,117
|
||||||||||||
Operation and maintenance expense
|
4,599
|
32,998
|
8,350
|
37,014
|
||||||||||||
Depreciation and amortization
|
32
|
13
|
60
|
55
|
||||||||||||
Total Operating (Loss) Income
|
$
|
(3,132
|
)
|
$
|
99,278
|
$
|
83,646
|
$
|
150,860
|
|||||||
|
||||||||||||||||
Net (Loss) Income
|
$
|
(3,031
|
)
|
$
|
75,662
|
$
|
62,713
|
$
|
114,534
|
|||||||
Financial Margin
|
$
|
43,100
|
$
|
154,428
|
$
|
71,587
|
$
|
163,755
|
||||||||
Net Financial Earnings
|
$
|
29,940
|
$
|
96,528
|
$
|
47,507
|
$
|
98,028
|
||||||||
Gas Sold and Managed (Bcf)
|
76.7
|
112.7
|
140.2
|
217.5
|
||||||||||||
STORAGE AND TRANSPORTATION
|
||||||||||||||||
Operating Revenues
|
$
|
13,342
|
$
|
13,926
|
$
|
25,485
|
$
|
27,030
|
||||||||
Equity in Earnings of Affiliates
|
$
|
1,256
|
$
|
3,386
|
$
|
2,312
|
$
|
6,579
|
||||||||
Operation and Maintenance Expense
|
$
|
7,254
|
$
|
7,139
|
$
|
14,684
|
$
|
13,681
|
||||||||
Other Income, Net
|
$
|
2,750
|
$
|
1,591
|
$
|
5,259
|
$
|
2,845
|
||||||||
Interest Expense
|
$
|
1,847
|
$
|
3,578
|
$
|
3,983
|
$
|
7,560
|
||||||||
Income Tax Provision
|
$
|
714
|
$
|
873
|
$
|
1,057
|
$
|
1,519
|
||||||||
Net Income
|
$
|
4,625
|
$
|
4,711
|
$
|
7,587
|
$
|
8,219
|
||||||||
Net Financial Earnings
|
$
|
4,625
|
$
|
4,711
|
$
|
7,587
|
$
|
8,219
|
||||||||
HOME SERVICES AND OTHER
|
||||||||||||||||
Operating Revenues
|
$
|
13,222
|
$
|
12,773
|
$
|
27,173
|
$
|
25,350
|
||||||||
Operating Income
|
$
|
901
|
$
|
3,292
|
$
|
1,763
|
$
|
5,288
|
||||||||
Net Income
|
$
|
451
|
$
|
747
|
$
|
898
|
$
|
685
|
||||||||
Net Financial Earnings
|
$
|
451
|
$
|
747
|
$
|
898
|
$
|
685
|
||||||||
Total Service Contract Customers at March 31
|
105,022
|
106,471
|
105,022
|
106,471
|
||||||||||||