New Jersey Resources Corporation (NYSE:NJR) Q1 2023 Earnings Call Transcript

Steve Westhoven: Yeah. I think just to add to that, I might — to describe it as a buffer, I think there’s seasonality to the number that’s here. And I’m not in agreement that there’s a buffer associated with our guidance or the way that you’ve put the numbers together.

Jamieson Ward: Okay. Fair enough. We can follow up off-line. Either way, it seems like you’re in a good place and it seems like a good thing to have to kick the year off with. So that’s why I was asking.

Steve Westhoven: That’s what we told you.

Jamieson Ward: Yeah. Absolutely. Just a final question on Clean Energy Ventures. You mentioned in the prepared remarks that you’re looking to tighten the range in the quarters ahead. There’s another question on it already. But just to hone in here as the final question, what are the gating items that you’re currently waiting on just so we have a better sense of timing? When do you expect to have the level of visibility that you require in order to be able to narrow the range for the next fiscal year and the year thereafter?

Steve Westhoven: So when Amy answered the question before, she talked about cube reform and PJM and certainly some of the programs in the state of New Jersey. But mentioned that for the project pipeline that we’ve shown there, they’re not solely dependent on those being, I guess, resolved. So we’ve got a capital program that we feel confident that we’ll be able to execute and certainly to be positive developments to get those other programs in the Q reform completed. But again, not solely dependent on at least new programs taking place at the state in order to get our capital invested. I hope that answers your question. If not, please clarify.

Jamieson Ward: Got you. Yeah. No, just was trying to get a sense of whether it’s sort of a next quarter or two quarters from now or that sort of thing. But I think that covers it, and I can follow up further off-line.

Steve Westhoven: Okay.

Jamieson Ward: Thank you very much and good start to the year, guys. Congrats.

Steve Westhoven: All right. Thank you.

Operator: Our next question is from Travis Miller from Morningstar. Travis, your line is now open. Please go ahead.

Travis Miller: Good morning, everyone. Thank you.

Steve Westhoven: Hey, Travis.

Travis Miller: I apologize if you touched on this earlier, but I wonder if you could talk about how the AMAs performed during the quarter. How much of that contributed to that Energy Services? Was there volatility in there like you expected or didn’t expect? Just wondering on the AMAs, how that performed in the quarter.

Roberto Bel: Hey, Travis. This is Roberto. So the AMA, we said before that for the year, the expected revenues are going to be similar to those of last year. And for Q1, those revenues were $20 million. And we received all the cash corresponding to the AMA already in Q1. That was about $73 million. So it — to answer your question in a nutshell, it performed exactly as we expected.

Travis Miller: Okay. Do you have in place during the year any kind of optionality around those where you could get any kind of either or detriment?

Roberto Bel: On this specific AMA, as we have discussed, this is basically pretty much a fixed price contract, so no.

Travis Miller: Okay. Thank you very much.

Roberto Bel: Sure.

Steve Westhoven: Thanks, Travis.

Operator: We currently have no further questions. I will now hand back to the management team.