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New Jersey Resources Corp. Reports Operating Results (10-Q)

February 08, 2012 | About:
10qk

10qk

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New Jersey Resources Corp. (NJR) filed Quarterly Report for the period ended 2011-12-31.

New Jersey Resources Corp. has a market cap of $2.02 billion; its shares were traded at around $48.85 with a P/E ratio of 19.1 and P/S ratio of 0.7. The dividend yield of New Jersey Resources Corp. stocks is 3.1%. New Jersey Resources Corp. had an annual average earning growth of 2.6% over the past 10 years.

Highlight of Business Operations:

Amounts include intercompany eliminating entries in operating revenues of $374,000 and $16.4 million, and in gas purchases of $1.2 million and $17.3 million, for the three months ended December 31, 2011 and 2010, respectively.

an increase in operating revenues of $11.2 million and gas purchases of $22.6 million at NJRES stemming from higher average sales and gas purchase volumes partially offset by lower average prices, which correlate to the lower price levels on the NYMEX that averaged $3.55 per MMBtu during the three months ended December 31, 2011 compared with $3.80 per MMBtu during the three months ended December 31, 2010 . In addition, both operating revenue and gas purchases are impacted by changes in fair value of derivatives, which included a net gain during the three months ended December 31, 2011, compared with a net loss during the three months ended December 31, 2010.

a decrease in operating revenues and gas purchases related to firm sales in the amount of $52.2 million and $31.3 million, respectively, as a result of lower therm usage due primarily to weather being 24.8 percent warmer than the prior year, partially offset by an increase in operating revenue of $13.8 million, as a result of higher CIP accruals;

Sales tax and TEFA, which are presented as both components of operating revenues and energy and other taxes in the Unaudited Condensed Consolidated Statements of Operations, totaled $11.9 million and $18.5 million during the three months ended December 31, 2011, and 2010, respectively. The fluctuation in sales tax correlates directly to the changes in operating revenue from firm sales. The decrease of $5.9 million during the three months ended December 31, 2011 was due primarily to a decrease of $91.2 million in operating revenue subject to sales tax, compared with the three months ended December 31, 2010. TEFA, which is calculated on a per-therm basis, decreased $700,000 primarily due to lower usage during the three months ended December 31, 2011. TEFA will be phased out over a three-year period commencing January 1, 2012.

Income tax benefit during the three months ended December 31, 2011 and 2010, includes $11.3 million and $400,000 related to ITCs, respectively. GAAP requires that for interim reporting, companies forecast their earnings and income taxes, including ITC's, for the year and apply that estimated effective tax rate to the period-to-date pretax income. Total ITC-eligible capital expenditures in fiscal 2012 are forecasted to be $104 million, including $94 million associated with solar projects placed into service during the three months ended December 31, 2011.

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