QUARTERLY FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2024 AND 2023
(Unaudited)
New Jersey Natural Gas Company
|
CONDENSED STATEMENTS OF OPERATIONS (Unaudited) |
||||
|
Three Months Ended |
||||
|
December 31, |
||||
|
(Thousands) |
2024 |
2023 |
||
|
OPERATING REVENUES |
$ |
333,765 |
$ |
293,430 |
|
OPERATING EXPENSES |
130,005 |
|||
|
Natural gas purchases |
118,444 |
|||
|
Operation and maintenance |
52,094 |
54,705 |
||
|
Regulatory rider expense |
22,476 |
19,189 |
||
|
Depreciation and amortization |
32,084 |
26,917 |
||
|
Total operating expenses |
236,659 |
219,255 |
||
|
OPERATING INCOME |
97,106 |
74,175 |
||
|
Other income, net |
5,517 |
2,676 |
||
|
Interest expense, net of capitalized interest |
17,454 |
14,751 |
||
|
INCOME BEFORE INCOME TAXES |
85,169 |
62,100 |
||
|
Income tax provision |
18,261 |
10,656 |
||
|
NET INCOME |
$ |
66,908 |
$ |
51,444 |
See Note to Unaudited Condensed Financial Statements
1
New Jersey Natural Gas Company
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
|
Three Months Ended |
||||
|
December 31, |
||||
|
(Thousands) |
2024 |
2023 |
||
|
CASH FLOWS USED IN OPERATING ACTIVITIES |
$ |
66,908 |
||
|
Net income |
$ |
51,444 |
||
|
Adjustments to reconcile net income to cash flows from operating activities: |
32,084 |
|||
|
Depreciation and amortization |
26,917 |
|||
|
Allowance for equity used during construction |
(1,037) |
(1,456) |
||
|
Allowance for doubtful accounts |
72 |
(1,782) |
||
|
Deferred income taxes |
7,281 |
6,449 |
||
|
Manufactured gas plant remediation costs |
(1,126) |
(4,575) |
||
|
Cost of removal - asset retirement obligations |
(432) |
(382) |
||
|
Contributions to postemployment benefit plans |
(108) |
(1,877) |
||
|
Taxes related to stock-based compensation |
386 |
325 |
||
|
Changes in: |
(145,265) |
|||
|
Components of working capital |
(119,714) |
|||
|
Other noncurrent assets and liabilities |
6,896 |
1,953 |
||
|
Cash flows used in operating activities |
(34,341) |
(42,698) |
||
|
CASH FLOWS USED IN INVESTING ACTIVITIES |
||||
|
Expenditures for: |
(99,143) |
|||
|
Utility plant |
(71,166) |
|||
|
Cost of removal |
(10,761) |
(8,549) |
||
|
Cash flows used in investing activities |
(109,904) |
(79,715) |
||
|
CASH FLOWS FROM FINANCING ACTIVITIES |
- |
|||
|
Proceeds from long-term debt |
50,000 |
|||
|
Payments of long-term debt |
(3,900) |
(2,493) |
||
|
Proceeds from short-term debt, net |
88,800 |
68,700 |
||
|
Proceeds from sale-leaseback transactions |
11,714 |
8,814 |
||
|
Contribution from Parent |
50,000 |
- |
||
|
Tax withholding payments related to net settled stock compensation |
(1,173) |
(735) |
||
|
Cash flows from financing activities |
145,441 |
124,286 |
||
|
Change in cash, cash equivalents and restricted cash |
1,196 |
1,873 |
||
|
Cash, cash equivalents and restricted cash at beginning of period |
1,175 |
1,346 |
||
|
Cash, cash equivalents and restricted cash at end of period |
$ |
2,371 |
$ |
3,219 |
|
CHANGES IN COMPONENTS OF WORKING CAPITAL |
$ |
(187,798) |
||
|
Receivables |
$ |
(130,720) |
||
|
Inventories |
15,156 |
16,825 |
||
|
Recovery of natural gas costs |
(375) |
479 |
||
|
Natural gas purchases payable |
22,176 |
18,288 |
||
|
Accounts payable and other |
(25,852) |
(29,314) |
||
|
Prepaid expenses |
(5,467) |
(3,430) |
||
|
Prepaid taxes |
19,738 |
17,555 |
||
|
Restricted broker margin accounts |
2,268 |
(9,465) |
||
|
Customers' credit balances and deposits |
3,993 |
548 |
||
|
Other current assets and liabilities |
10,896 |
(480) |
||
|
Total |
$ |
(145,265) |
$ |
(119,714) |
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION |
||||
|
Cash paid for: |
$ |
22,888 |
||
|
Interest (net of amounts capitalized) |
$ |
16,975 |
||
|
Accrued capital expenditures |
$ |
8,943 |
$ |
503 |
See Note to Unaudited Condensed Financial Statements
2
New Jersey Natural Gas Company
|
CONDENSED BALANCE SHEETS |
||||
|
ASSETS |
||||
|
(Unaudited) |
||||
|
(Thousands) |
December 31, |
September 30, |
||
|
2024 |
2024 |
|||
|
PROPERTY, PLANT AND EQUIPMENT |
$ |
4,279,615 |
||
|
Utility plant, at cost |
$ |
4,220,895 |
||
|
Construction work in progress |
272,360 |
233,295 |
||
|
Nonutility plant and equipment, at cost |
500 |
500 |
||
|
Total property, plant and equipment |
4,552,475 |
4,454,690 |
||
|
Accumulated depreciation and amortization |
(811,164) |
(786,594) |
||
|
Property, plant and equipment, net |
3,741,311 |
3,668,096 |
||
|
CURRENT ASSETS |
1,716 |
|||
|
Cash and cash equivalents |
580 |
|||
|
Customer accounts receivable: |
138,967 |
|||
|
Billed |
51,613 |
|||
|
Unbilled |
112,000 |
11,839 |
||
|
Allowance for doubtful accounts |
(4,167) |
(4,378) |
||
|
Regulatory assets |
64,689 |
73,070 |
||
|
Natural gas in storage, at average cost |
161,613 |
177,655 |
||
|
Materials and supplies, at average cost |
34,291 |
33,405 |
||
|
Prepaid expenses |
8,205 |
2,738 |
||
|
Prepaid taxes |
8,276 |
28,014 |
||
|
Derivatives, at fair value |
169 |
21 |
||
|
Restricted broker margin account |
10,761 |
4,975 |
||
|
Other current assets |
47,965 |
58,631 |
||
|
Total current assets |
584,485 |
438,163 |
||
|
NONCURRENT ASSETS |
607,526 |
|||
|
Regulatory assets |
604,097 |
|||
|
Postemployment employee benefit assets |
60,653 |
59,645 |
||
|
Other noncurrent assets |
60,273 |
57,295 |
||
|
Total noncurrent assets |
728,452 |
721,037 |
||
|
Total assets |
$ |
5,054,248 |
$ |
4,827,296 |
See Note to Unaudited Condensed Financial Statements
3
New Jersey Natural Gas Company
|
CONDENSED BALANCE SHEETS (Continued) |
||||
|
CAPITALIZATION AND LIABILITIES |
||||
|
(Unaudited) |
||||
|
(Thousands) |
December 31, |
September 30, |
||
|
2024 |
2024 |
|||
|
CAPITALIZATION |
$ |
2,090,144 |
||
|
Common stock equity |
$ |
1,973,236 |
||
|
Long-term debt |
1,616,758 |
1,609,871 |
||
|
Total capitalization |
3,706,902 |
3,583,107 |
||
|
CURRENT LIABILITIES |
59,721 |
|||
|
Current maturities of long-term debt |
58,649 |
|||
|
Short-term debt |
143,900 |
55,100 |
||
|
Natural gas purchases payable |
52,272 |
30,096 |
||
|
Natural gas purchases payable related party |
775 |
775 |
||
|
Accounts payable and other |
77,044 |
105,471 |
||
|
Regulatory liabilities |
32,029 |
32,457 |
||
|
New Jersey Clean Energy Program |
16,523 |
18,491 |
||
|
Derivatives, at fair value |
3,055 |
581 |
||
|
Customers' credit balances and deposits |
42,565 |
38,572 |
||
|
Total current liabilities |
427,884 |
340,192 |
||
|
NONCURRENT LIABILITIES |
488,902 |
|||
|
Deferred income taxes |
480,116 |
|||
|
Deferred investment tax credits |
2,086 |
2,156 |
||
|
Manufactured gas plant remediation |
161,024 |
161,650 |
||
|
Postemployment employee benefit liability |
30,051 |
21,722 |
||
|
Regulatory liabilities |
174,726 |
175,847 |
||
|
Asset retirement obligations |
60,030 |
59,674 |
||
|
Other noncurrent liabilities |
2,643 |
2,832 |
||
|
Total noncurrent liabilities |
919,462 |
903,997 |
||
|
Total capitalization and liabilities |
$ |
5,054,248 |
$ |
4,827,296 |
See Note to Unaudited Condensed Financial Statements
4
New Jersey Natural Gas Company
Note to Unaudited Condensed Financial Statements
1. GENERAL
New Jersey Natural Gas (the Company) is a natural gas distribution company that provides regulated retail natural gas service to residential and commercial customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean and Sussex counties in New Jersey, and participates in the off-system sales and capacity release markets. The Company is a regulated public utility and wholly-owned subsidiary of New Jersey Resources Corporation. The Company maintains its accounts in accordance with the Federal Energy Regulatory Commission Uniform System of Accounts as prescribed by the New Jersey Board of Public Utilities (BPU) and in accordance with the Regulated Operations Topic of the Financial Accounting Standards Board Accounting Standards Codification. As a result of the impact of the ratemaking process and regulatory actions of the BPU, the Company is required to recognize the economic effects of rate regulation. Accordingly, the Company capitalizes or defers certain costs that are expected to be recovered from its customers as regulatory assets and recognizes certain obligations representing probable future expenditures as regulatory liabilities on its Balance Sheets.
Because of the seasonal nature of the Company's utility operations and other factors, the results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the entire fiscal year.
5
Attachments
Disclaimer
New Jersey Resources Corporation published this content on February 13, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 14, 2025 at 01:40:29.955.
