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

November 29, 2012 | About:

10qk

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New Jersey Resources Corp. (NJR) filed Annual Report for the period ended 2012-09-30.

New Jersey Resources Corporation has a market cap of $1.63 billion; its shares were traded at around $41.57 with a P/E ratio of 13.1 and P/S ratio of 0.5. The dividend yield of New Jersey Resources Corporation stocks is 4.1%. New Jersey Resources Corporation had an annual average earning growth of 1.7% over the past 10 years.

Highlight of Business Operations:

a decrease in operating revenues and gas purchases related to firm sales in the amount of $140 million and $85.6 million, respectively, as a result of lower therm usage due primarily to weather being 21.1 percent warmer than the prior year, partially offset by an increase in operating revenue of $36.7 million, as a result of higher CIP accruals;

an increase in operating revenues and gas purchases in the amount of $110.4 million and $103.2 million, respectively, due to a combination of refunds and bill credits, inclusive of sales tax refunds of $7.2 million, during fiscal 2010, that did not recur during fiscal 2011;

an increase in operating revenues and gas purchases related to firm sales in the amount of $26.4 million and $9.8 million, respectively, as a result of higher therm usage due primarily to weather being 7.9 percent colder than the prior year, partially offset by a decrease in operating revenue of $7.6 million, as a result of lower CIP accruals;

Sales tax and TEFA, which are presented as both components of operating revenues and operating expenses on the Consolidated Statements of Operations, totaled $37.2 million, $58.5 million and $49 million during the fiscal years ended September 30, 2012, 2011 and 2010, respectively. The fluctuation in sales tax correlates directly to the changes in operating revenue from firm sales. The decrease during fiscal 2012 was due primarily to a decrease of $280.9 million in operating revenue subject to sales tax, compared with fiscal 2011. Sales tax increased in fiscal 2011 due primarily to an increase of $138.5 million in operating revenue from firm sales, compared with fiscal 2010.

In fiscal 2013 and 2014, NJNG's total capital expenditures are projected to be $119.3 million and $119.9 million, respectively, and include estimated SAFE construction costs of $34.6 million and $43.4 million, respectively. However, in October 2012, Superstorm Sandy caused significant damage to portions of NJNG's distribution infrastructure. We anticipate that Superstorm Sandy and its aftermath will influence our financial results but are still assessing the damages. NJR and NJNG are unable to estimate the possible loss or range of loss related to Superstorm Sandy, however, such costs could be material. The financial effects can include lower operating revenues, lower utility gross margin due to extended outages and inability to bill and collect revenues, and higher capital expenditures related to the restoration, repair or replacement of damaged equipment and assets. On November 19, 2012, NJNG filed a petition with the BPU requesting deferral accounting for actually incurred uninsured incremental operating and maintenance costs associated with Superstorm Sandy. In addition, NJNG requested the review of and the appropriate amortization period for such deferred expenses be addressed in the Company's next base rate case. However, there can be no

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