New Jersey Resources Corporation Case Study

New Jersey Resources Corporation (NYSE:NJR) is an energy services holding company whose principal business is the distribution of natural gas through a regulated utility, and which provides other retail and wholesale energy services to customers and invests in midstream assets. The company was founded in 1922 and is based in Wall, New Jersey. The company has approximately 970 employees, of which 25% are covered by collective bargaining agreements. The Company considers its relationship with employees, including those covered by collective bargaining agreements, to be in good standing.
The Company operates within four reportable business segments: Natural Gas Distribution (21.5% of sales in FY2014), Energy Services (77% of sales in FY2014), Clean Energy Ventures (0.4% of sales in FY2014) and Midstream (1.2% of sales in FY2014). The Natural Gas Distribution segment consists of regulated energy and off-system, capacity and storage management operations. The Energy Services segment consists of …show more content…
Competitors include privately and publicly held entities that range from regional to national companies. Main competitors are AGL Resources Inc. (NYSE:GAS), Atmos Energy Corporation (NYSE:ATO), Pepco Holdings, Inc. (NYSE:POM), Entergy Corporation (NYSE:ETR), ONEOK Partners, L.P. (NYSE:OKS).
Net sales were $2.25B, $3.20B, $3.74B in FY2012-14, with a compounded annual growth rate of 7.5% in the last 3 years. Geographic sales are USA (100%). EBITDA margins were 6.7%, 6.5%, and 6.8% in FY2012-14, having an overall growth of 4.7%. CAPEX growth was 19%, -12.5%, and 52% in FY2012-14.
NJR has common stock with 85.6M shares outstanding, has no preferred stock, and has paid dividends since 2010. Current annual dividend is $0.9 per share. Mr. Laurence M. Downes has been the CEO and President since July 1995, and an officer since