Good morning, and welcome to the New Jersey Resources First Quarter 2012 Earnings Call. [Operator Instructions] Please note this event is being recorded. I’d now like to turn the conference over to Dennis Puma, Director of Investor Relations. Please go ahead.

Thank you, Amy. Good morning, everyone. Welcome to New Jersey Resources first quarter fiscal 2012 conference call and webcast. I’m joined today by Larry Downes, our Chairman and CEO; Glenn Lockwood, our CFO, as well as other members of our senior management team. As you know, certain statements in our news release and in today’s call contain estimates and other forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We wish to caution readers of our news release and listeners to this call that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJR’s ability to estimate precisely or control, which could cause results to materially differ from the company’s expectations. A list of these items can be found but is not limited to items in the forward-looking statements section of today’s news release filed on Form 8-K and on our Form 10-Q to be filed on or about February 7, 2012. All these items can be found at SEC.gov. NJR does not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events. I’d also like to point out that there are slides accompanying today’s discussion which are available on our website. With that being said, I’d like to turn the call over to our Chairman and CEO, Larry Downes. Larry?

Thanks, Dennis. Good morning, everyone, and thank you for joining us. This morning, I will be giving you an overview of our first quarter results. We will announce our guidance for fiscal 2012 and I will also review some of the key drivers of our performance. But just to start out with the number of the key highlights, our financial results are strong. New Jersey Natural Gas is performing well. We continue to make very good progress on our Clean Energy strategy. Our other non-utility investments are performing in line with our expectations. And as you will see from our guidance we expect that fiscal 2012 will be another year of improved financial report -- results. As Dennis mentioned, I will be using a PowerPoint today, hopefully you’ve been able to access that. So starting on Slide 2, during the presentation, I will be making forward-looking statements. Our actual results will be affected by many factors, including those that are listed on the slide. The complete list is included in our 10-K and I would ask you as always to please review them carefully. On Slide 3, we will also be referring certain non-GAAP measures such as net financial earnings, which I will refer to you as NFE as I discuss our results. We believe that NFE provides a better measure of our performance. However, these non-GAAP measures are not intended to be substitute for GAAP and they are also discussed more fully in item 7 of our 10-K. Once again, I’d strongly encourage you to please take a look at that disclosure for more discussion of those non-GAAP measures. So moving to Slide 4, just to give some additional insight on our performance for the first fiscal quarter of this year, our net financial earnings for the quarter increased…

[Operator Instructions] And our first question comes from Mark Barnett at Morningstar.

A couple of quick questions here. So I guess just looking at the guidance for new capital on a solar side, I think maybe guidance was around $104 million and now your slides are at about $86.5. Is there any impact there from projects coming out or is that all total cost of your activity already this year?

Mark, let me have Glenn explain those differences for you.

Yes, Mark, the only difference is timing. Several projects started construction in fiscal ’11 and had capital spend last year, but not finished yet. And some of that capital then spilled into 2012 as far as capital placing service. So from a cash flow perspective, last year was in the $70 million range and this is year it’s going to be around $87 million or about $150 million plus or so in total. The placement service will be skewed more towards ’12 versus ’11.

Okay. And also are you anticipating, with Steckman Ridge -- it’s a pretty good quarter. Are you anticipating kind of higher earnings over the balance of 2012 as well or do you think maybe there is going to be some impact from just maybe some declining drilling activity, the warmer temps so far this year?

Mark, it’s Glenn again. I think if you look at the numbers, Steckman Ridge was pretty -- just slightly better than last year. And if you looked at our guidance for the year, I think we are guiding towards pretty flat year-over-year in the old mid-stream segment basically for both Iroquois and Steckman Ridge.

Okay, I appreciate that. Just last thing, I know this is a small part of business at the moment, but with announcements of kind of declining drilling activity that a lot of producers maybe are sitting a lot of gas and not sure what to do with, do you think this might be about opportunity on the services side?

Mark, you are referring to NJRES?

Yes, I’m sorry, NJ...

What we’ve been trying to do is just that, in addition to our base activities is to focus more on providing producer services in the area. So the answer to your question is, yes we continue to see that as an opportunity.

Okay. I guess -- I mean with the announcements that lot of -- there is a lot of gas that producers don’t really know what to do with. I guess in general, I was wondering it maybe the low gas cost today actually are kind of an opportunity for that business or how I should think about that?

Let me ask Steve Westhoven to give you some inside on that. Steve?

Mark, yes, we think there is opportunity just because there has been a lot of changes going on relative to a lot of the infrastructure in and around all the new natural gas that’s being produced in the shale plays. And we’re pursuing that, as we speak, putting together producer [ph] services-type transactions and trying to grow that side of the business because obviously -- because there has been a decline in the value of some of our assets, it’s a good place to place our efforts.

The next question comes from Eric Beaumont at Copia Capital.

A couple of questions and obviously knowing there is still a lot of uncertainty out there. But you give the 260 to 280 and you give the breakdown for each segment, which gives the much wider range. I guess can you kind of just talk through some the key drivers obviously in solar, it would be -- when I think about $8 employed does it become the service in ’12 versus ’13 and are there any transmission constraints [indiscernible]. If you can just kind of point me towards the utility, I think, I guess is the main drivers, but you have a pretty wide range for both solar energy services and energy holding. If you could just walk through kind of where you’re thinking the -- what pushes you towards each end there, that would be helpful.

Yes. I think the widest range we gave was with energy services and I think the driver there again will be what, if any, volatility thus come about, for example with the summer and heat and things like that. So by its very nature, that business’ results are still somewhat -- it’s going to be driven by the amount of volatility. So clearly we placed the widest range on that business. And Solar is going to be on the ability to continue to find the appropriate investment and be successfully negotiated and completed with the goal again, of us spending about $70 million to $90 million a year on an annual basis from a capital budget perspective. So those are clearly the biggest drivers on those 2 businesses and then in Steckman Ridge and Iroquois, again they’re somewhat subject to the same issues that impact energy services as far as the value of those assets. As Larry mentioned, the good news with Steckman Ridge is about 30% of the capacity is under the long-term contracts which generated about 66% of the revenue at Steckman Ridge for the quarter. So that gave us confidence to guide as we did pretty flat with last year despite the challenge in the wholesale market.

Okay. And on Solar can you comment on just where we stand in the SREC market and additionally for the larger projects are you seeing any delays from transmission interconnect times, I know that, your peers down the road had seen some transmission interconnect delays, are you seeing the similar or no?

Well, I think, first of all I can't comment on South Jersey but the issue of interconnection is something that we factor into or a process when we’re making a decision to go forward, so you can avoid that to the best of our ability. I think the SREC market as you know there’s a lot going on with legislation in New Jersey right now. The good news from our perspective is, what has been expressed through all of the conversation is really the need to add stability to the SREC market. There has been no discussion in any way of reducing, for example, the renewable portfolio standard. So I think those issues have to work themselves out. I think from the perspective of the customer, I’ll go back to the slide which talks about what has happened to the cost of Solar particularly -- recently which I think goes to the value if you will that the incentives in the SRECs have provided, but I’ll ask Rick Gardner or Stan Kosierowski to comment on that further. This is Rick speaking now, go ahead.

Yes, Larry you’ve covered this all in. There had been interconnect issues, you hear that anecdotally our projects we put in place, and we really haven’t had any major issues because since Larry mentioned we’ve put it in the planning process. So right now we’re in good shape, and we’re out looking for profits every day.

Is there anything going on in the energy master plan that would help expedite the transmission interconnect or help facilitate them?

I think the way we look at it is the energy master plan is the overall level of support for solar, it does suggest certain changes. But through the -- if you look at the regulatory process and issues that the BPU is responsible for, they are aware of that issue, and from my understanding, considering different proposals to deal with that issue. But again Rich or Stan, you may want to add something to that?

Okay, and I guess one last question with regards to whether Steckman Ridge or storage you procure through these [indiscernible] given the moderate winter we’ve had -- on either side, are we bumping up against limits where there might be forced withdrawals and/or penalties?

At Steckman, this is Rich, at Steckman Ridge, inventory has been stifled to a point where there is no issues with having any forced withdrawals or penalties.

Okay. And the same from the utility side -- are you facing that, you maybe haven’t drawn down enough storage that there might be any forced withdrawals and/or penalties?

No, not at all.

[Operator Instructions] Our next question comes from Joanne Fairechio at Capstone Investments.

I actually found it interesting to see your customer addition numbers, and I was wondering if there is one area of our service area that had better customer growth over the others or has the growth been spread across all of your counties?

I’ll let Kathy Ellis to answer that question, Joanne.

The Ocean County has historically been our area of greatest growth and that continues, but also with hurricane Irene coming through northern divisions, we’ve seeing quite a lot of conversion activity around the flooded area of Morris County. So I’d say the aberration is the activity in Morris County.

Okay. Okay and you said that, I guess, was because of some of the flooding last fall, in last summer?

It is a result of the flooding, but we also have initiated a fairly aggressive marketing campaign in that area. In fact, we set up a mobile office Joanne and we’ve quite a bit of success in both neighborhoods.

At this time, we show no further questions. I would like to turn the conference back over to management for any closing remarks.

Okay, thank you Amy. We’d like to thank you all for joining us this morning. As a reminder, there is a recording of this call which will be available on our website. Again, we appreciate your interest and investment in NJR. Thank you very much. Have a good day. Bye.

The conference is now concluded. Thank you for attending today’s event. You may now disconnect.