New Jersey Resources Announces Acquisition of Pennsylvania Pipeline and Fiscal 2017 Results


 
 
03:28 11/21/2017

New Jersey Resources NJR  recently announced its subsidiary, Adelphia Gateway, LLC, has entered into an agreement with Talen Generation, LLC, a subsidiary of Talen Energy Corporation, to purchase all of Talen Generation’s membership interests in Interstate Energy Company LLC, which owns and operates an existing 84-mile pipeline in southeastern Pennsylvania, for an estimated $166 million, plus additional contingent payments of up to $23 million based on certain specified conditions.

The transaction is expected to close following receipt of all necessary permits and regulatory actions, including those from the Federal Energy Regulatory Commission and the Pennsylvania Public Utility Commission.

NJR’s Adelphia Gateway project will repurpose the southern 50-mile portion of the pipeline to flow natural gas and provide customers in the greater Philadelphia region with a needed, new source of clean, safe, low-cost supply.

This innovative approach utilizes existing infrastructure to meet market demand with minimal new construction or impact to the environment. Once converted, the pipeline will be able to transport an incremental 250,000 dekatherms per day, approximately 91 million dekatherms per year, of natural gas to the greater Philadelphia market.

“With the growing demand for clean, low-cost natural gas, Adelphia Gateway will play a pivotal role in delivering much needed supply to customers in the Philadelphia market, as well as providing value for our company and shareowners,” said Steve Westhoven, senior vice president of NJR Midstream, a subsidiary of New Jersey Resources. “Today, the Philadelphia market is constrained with limited access to affordable energy sources. With the Adelphia Gateway project, we look forward to applying our market expertise to serve customers and support economic development opportunities in the region.”

New Jersey Resources NJR  also reported results for fiscal 2017.

Fiscal 2017 net income totaled $132.1 million, or $1.53 per share, compared with $131.7 million, or $1.53 per share, in fiscal 2016. Fiscal 2017 NFE totaled $149.4 million, or $1.73 per share, compared with $138.1 million, or $1.61 per share, in fiscal 2016.

Net losses for the fourth quarter of fiscal 2017 totaled $36.5 million, or $(.42) per share, compared with net income of $25.4 million, or $.30 per share, during the same period last year. Fourth-quarter fiscal 2017 net financial losses totaled $12.5 million, or $(.14) per share, compared with a net financial loss of $2.1 million, or $(.02) per share, during the same period last year.

“New Jersey Resources delivered strong results in fiscal 2017, thanks to the efforts of our talented employees,” said Laurence M. Downes, chairman and CEO of New Jersey Resources. “Our performance was primarily driven by higher utility gross margin and customer growth, as well as strong contributions from our clean energy and midstream segments.”


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