Profile: New Jersey Resources Corp (NJR)
2 Dec 2016
New Jersey Resources Corporation is an energy services holding company. The Company's principal business is the distribution of natural gas through a regulated utility, and provides other retail and wholesale energy services to customers and invests in midstream assets. The Company operates within four business segments: Natural Gas Distribution, Energy Services, Clean Energy Ventures and Midstream. The Company's Natural Gas Distribution segment consists of regulated natural gas and off-system sales and capacity and storage management operations. Its Energy Services segment consists of unregulated wholesale energy operations. Its Clean Energy Ventures segment consists of capital investments in distributed power projects. Its Midstream segment consists of investments in the midstream natural gas market, such as natural gas transportation and storage facilities. In addition to the four business segments, the Company has non-utility operations, which comprise Home Services and Other, consisting of heating, cooling and water appliance sales, installations and services, commercial real estate development, other investments and general corporate activities.
Natural Gas Distribution
The Company's Natural Gas Distribution segment consists of New Jersey Natural Gas Company (NJNG), a natural gas utility that provides regulated retail natural gas service in central and northern New Jersey to approximately 512,300 residential and commercial customers in its service territory and also participates in the off-system sales and capacity release markets. NJNG's service territory includes New Jersey's Monmouth and Ocean counties and parts of Burlington, Morris, Middlesex and Sussex counties. As of September 30, 2015, NJNG has opened two natural gas vehicles (NGV) stations to the public and development of an additional NGV station continues in Middletown Township. NJNG is in the construction phase of its Liquefaction project, which when completed will allow NJNG to convert natural gas into liquefied natural gas (LNG) to fill NJNG's existing LNG storage tanks.
NJNG maintains agreements for firm transportation and storage capacity with several interstate pipeline companies to take delivery of firm natural gas supplies. NJNG receives natural gas at approximately 10 citygate stations located in Middlesex, Morris and Passaic counties in New Jersey. In addition, NJNG has storage contracts that provide additional maximum daily deliverability to NJNG's citygate stations of approximately 102,940 dekatherms (dhts) from storage fields in its Northeast market area. NJNG also has upstream storage contracts.
The Company's Energy Services segment consists of NJR Energy Services Company (NJRES), an unregulated wholesale provider of physical natural gas, producer and asset management services to a diverse customer base across North America. NJRES provides physical natural gas services and has acquired contractual rights to natural gas storage and transportation assets it utilizes to implement its strategic and opportunistic market strategies. NJRES operates in market areas, which include the United States and Canada. NJRES' portfolio of end-use customers includes regulated natural gas distribution companies, industrial companies, electric generators, retail aggregators, wholesale marketers and natural gas producers.
NJRES' activities consist of providing natural gas portfolio management services to nonaffiliated and affiliated natural gas utilities, electric generation facilities and natural gas producers; managing strategies for new and existing natural gas storage and transportation assets to capture value from changes in price due to location or timing differences as a means to generate financial margin; managing transactional logistics to minimize the cost of natural gas delivery to customers while maintaining security of supply, and managing economic hedging programs that are designed to mitigate the impact of changes in market prices on financial margin generated on its natural gas storage and transportation commitments. NJRES focuses on creating value from its physical assets, which are amassed through contractual rights to natural gas storage and transportation capacity. NJRES also engages in park-and-loan transactions with storage and pipeline operators, where NJRES will either borrow (receive a loan of) natural gas with an obligation to repay the storage or pipeline operator at a later date or park natural gas with an obligation to withdraw at a later date.
Clean Energy Ventures
The Company's Clean Energy Ventures segment consists of NJR Clean Energy Ventures Corporation (NJRCEV), an unregulated company that invests in, owns and operates distributed power projects, including commercial and residential solar installations located in New Jersey, and wind farms located in Montana, Iowa and Kansas. As of September 30, 2015, NJRCEV has placed solar assets with a capacity of approximately 120 megawatts into service, including a combination of residential and commercial net-metered and grid-connected solar systems. As part of its solar investment program, NJRCEV operates a residential lease program, The Sunlight Advantage, which provides qualifying homeowners with the opportunity to have a solar system installed at their home with no installation or maintenance expenses. NJRCEV owns, operates and maintains the system over the life of the lease in exchange for monthly payments. NJRCEV's commercial solar projects are sourced through various channels and include both net-metered and grid-connected systems. NJRCEV sells Solar Renewable Energy Certificates (SRECs) to a range of counterparties, including electric load serving entities that serve electric customers in New Jersey. In addition to its solar investments, NJRCEV acquires the development rights to small to mid-size onshore wind farms that fit its investment profile.
The Company's Midstream segment includes investments in Federal Energy Regulatory Commission (FERC)-regulated interstate natural gas transportation and storage assets. The Midstream segment consisted of NJR Steckman Ridge Storage Company, which holds the Company's equity investment in Steckman Ridge; NJR Pipeline Company, which consists of the Company's equity investment in PennEast, and NJR Midstream Holdings Corporation. Steckman Ridge has direct access to the Texas Eastern and Dominion Transmission pipelines and has access to the Northeast and Mid-Atlantic markets.
Other Business Operations
The Company's Home Services and Other operations consist primarily of unregulated affiliates. It consists of NJR Home Services Company (NJRHS), which provides heating, ventilation and cooling service, sales and installation of appliances to approximately 117,000 service contract customers, as well as installation of solar equipment; NJR Plumbing Services, Inc. (NJRPS), which provides plumbing repair and installation services; Commercial Realty & Resources Corp. (CR&R), which holds commercial real estate; NJR Investment Company, which held certain energy-related investments, primarily through equity instruments of public companies; NJR Energy Corporation, which invests in energy-related ventures, and NJR Service Corporation, which provides shared administrative and financial services to the Company and all its subsidiaries.
New Jersey Resources Corp
1415 Wyckoff Rd
PO Box 1468
BELMAR NJ 07719-1468
Company Web Links
- BRIEF-New Jersey Resources board raises quarterly dividend 6.3 pct to $0.255/share
- BRIEF-New Jersey Resources announces leadership changes
- BRIEF-New Jersey Resources says sold senior notes worth $150 mln
- BRIEF-New Jersey Resources Q3 loss per share $0.20
- BRIEF-New Jersey Resources unit enters into note purchase agreement - SEC filing