Good morning and welcome to the New Jersey Resources Fiscal 2014 Second Quarter Results Conference Call. All participants will be in listen-only mode. (Operator Instructions). After today's presentation, there will an opportunity to ask questions. (Operator Instructions). Please note this event is being recorded. I would now like to turn the conference over to Dennis Puma. Please go ahead.

Thank you, Amy, and good morning, everybody. Welcome to New Jersey Resources' fiscal 2014 second quarter conference call and webcast. I'm joined today by Larry Downes, our Chairman and CEO; Glenn Lockwood, our Chief Financial Officer, as well as other members of our senior management team. As you know, certain statements in our news release and on today's call contain estimates and other forward-looking statements within 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 control or estimate precisely 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 in our Form 10-Q to be filed later today. Both of 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 like to also point out that there are slides accompanying today's discussion that are available on our Website and that was also filed on our Form 8-K this morning. With that 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 today. I want to start by reminding everyone that during my presentation, I will be making forward-looking statements, our actual results will be affected by many factors including those that are listed on Slide 1. The complete list is included in our 10-K and I would encourage you to please review them carefully. Also as we note on Slide 2, I will be referring to certain non-GAAP measures such as net financial earnings, which I'll also refer to as NFE, as I'm discussing our results. We believe that NFE provides a better measure of our performance; however, it is not intended to be a substitute for GAAP. Our non-GAAP measures are discussed more fully in Item 7 of our 10-K and again I would strongly encourage you to please review that disclosure as well. Moving to Slide 3. You can see that we continue to record strong performance as the major components of our portfolio are turning in very solid results. We announced our second quarter results this morning with net financial earnings of $4.56 per share for the six months ended March 31 compared with $2.50 per share for the same period last year. That represented an increase of 82%. For the quarter, our NFE were $3.61 per share that compared with $1.64 per share last year and that was 120% higher than last year. We are also reaffirming our fiscal 2014 NFE guidance in a range of $3.90 a share to $4.10 per share. Our strong performance was primarily attributable to results from NJR Energy Services which benefited from the extreme cold weather this winter and successfully meeting the needs of its diverse customer base. As you can also see, New Jersey Natural Gas and NJR Clean…

Thanks, Larry, and good morning, everyone. I'll review our results for each segment. On Slide 14, you can see that we had approximately 5% increases in utility gross margin in both the three and six months ended March 31, 2014 compared with last year. This was due primarily to increases in revenue related to our infrastructure investments, the impact of customer growth, the return of Sandy affected customers and returns on our SAVEGREEN project. We added a total of 3,658 new customers so far this fiscal year. As Larry mentioned, we are on track to achieve our goal of adding 14,000 to 16,000 new customers over the next two years. We also remain on track to open our public refueling stations this summer. As we turn to Slide 15, you can see that the impact of these programs will have on NJNG's gross margin through fiscal 2017. NJNG's incremental gross margin is expected to more than double with customer growth remaining the largest component. We will also see important contributions from the SAVEGREEN project, the NGV Advantage and our BGSS incentive programs. Turning to Slide 16. That summarizes our two investments in NJR midstream which recorded three-month NFE of $2.3 million which was flat with last year and six-month NFE of $3.7 million compared with $4.1 million last year. The year-to-date decrease was due primarily to lower revenues at both Iroquois and Steckman Ridge, partially offset by lower interest expense. Turning to NJRES. As Larry mentioned in his remarks, on the March 12 call, we announced that this business was having an extremely strong quarter. On Slide 17 you can see their extraordinary results. For the three-month period ended March 31, 2014, NFE were $91.4 million compared with $16.4 million in the same period last year. Year-to-date, NFE were $98.8…

Thanks, Glenn. So as we close our presentation this morning, I think you can see that our portfolio of energy-related businesses which is anchored by New Jersey Natural Gas is generating excellent results this year. Our fundamentals remain strong in all of our businesses and we position New Jersey Resources for continued growth in earnings and dividends in the future. We have a growing LDC franchise that offers the opportunity for consistent long-term investment and comprises the majority of our earnings. Our regulatory strategy is balanced and constructive and recognizes the importance of generating value for our customers, our shareowners and supporting public policy. Our energy-related non-regulated activities provide a source of incremental growth and we have a strong and efficient financial profile that will provide access to capital as needed. Bringing all of this together we expect that these fundamentals will support long-term earnings and dividend growth and we believe will exceed our peers. But as I close, I need to point out that none of our results would been achieved without the hard work and dedication of our employees and on behalf of our Board of Directors and our entire leadership team, I want to thank them. Their efforts drive our performance every day. We are a strong company with a bright future because of everything they do. So with that, we would be happy to take your questions.

(Operator Instructions). Our first question comes from Mark Barnett of Morningstar Equity.

Hi. Good morning, guys.

Hi, Mark.

Good morning, Mark.

Just a couple of items on the utility. I know it's going to be a small item, more of a full year, given NJRES results, but can you talk a little bit about what drove the increase in incentive margin of the utility? And is this like storage optimization type activity that's kind of driven by some of the same things that drove your exceptional profit so far in the year, NJRES?

Glenn, do you want to take…

Yes, that was a combination of some increased sales, again in part obviously associated with the cold weather. And we actually had some good opportunities with our storage incentive program.

Okay. And then second, just a minor note, what sort of timeline are we looking at for a decision on the RISE program later this year?

Mark, do you want to take that? I'll ask Mark Sperduto, our Regulatory Senior VP to take that.

As of last week we've been negotiating to try to resolve NJ RISE and we at this point in time have a term sheet circulating amongst the [party] (ph), so we anticipate that stage would be completed in the next one to two months.

Great, thanks for that.

Thanks, Mark.

Our next question comes from Spencer Joyce at Hilliard Lyons.

Good morning, guys, and congratulations on just a fantastic quarter.

Good morning, Spencer. Thanks.

I also have one kind of nuance question on the New Jersey Natural Gas side. You all noted that about 800,000 in margin on a year-over-year basis sort of through the first couple of fiscal quarters is due to some of the Sandy affected customers coming back on line and my question is how close are we to getting back to normal? Is there a couple of hundred thousand more in margin dollars there we could recoup or is it maybe another 1 million or 800,000 there?

Spencer, it's Glenn. I'll answer it this way. We have about 75% of the customers back on line. The majority of the customers were basically out those two months and then they came back on fairly quickly after that and have pretty much been fairly steady now at about that 75% level. So that's telling us that the remaining 25% are the very damaged buildings and houses that need to be rebuilt, so that's going to be a couple of year process before we get fully back to where we were. So in total we lost about $2.5 million to $3 million in total gross margin last year and it will be a couple of years before we get back to 100% of that.

Okay. So the 800 versus that 2.5 million to 3 million, is there still a pretty material chunk there or it's going to trickle in over the next couple of years? Is that the right way to think about it?

It will trickle in over the next couple of years.

Okay, got you. And then one just short follow-up. Glenn, do you have the CapEx number for the quarter?

Not handy, Spencer. We'll be filing our 10-Q later today and obviously it will be very clear in the 10-Q.

Okay, great. Thanks, guys.

Thanks, Spencer.

(Operator Instructions). Our next question comes from Gabe Moreen at Bank of America Merrill Lynch.

Hi, guys. This is actually Brian Brazinski from Gabe's team calling in. How are you?

Fine, Brian. How are you?

Good, good. Just two questions, first being, just give us an update on the liquefaction project Howell, like where we are on that?

Mark Sperduto, do you want to take that?

The liquefaction project is well underway. The materials have been ordered. The fabrication is a 12 to 15-month process, so we expect to begin putting the unit in place in 2015.

Okay.

Brian, you can see that when you look at the CapEx chart the way we've got the timing of that spending laid out there.

Right, perfect. And the other question I have is so you guys recognized NFEPS of $4.56 for the first six months and are still reiterating guidance for the top end of which is $4.10. So, are you being conservative there or are we [supposed] (ph) to think that there's a $0.56 NFEPS loss that you're implying for the back half of the year?

Brian, this is Glenn. It's a combination of factors. One in RES we typically do lose money over the last six months of the year due to the nuances of our capacity, obligations and what I'll call a normal summer assumption weather-wise. Obviously that would change if we had a very hot summer. The rest of the business is seasonal. The utility typically breaks even in the third quarter and moves some money in the fourth quarter, again because of seasonality. And we'll be looking for appropriate investments to make in the year we're having that would provide future benefits and we factor some of that into our forecast as well.

All right, great. Thank you very much.

Thanks, Brian.

(Operator Instructions). With no further questions, I would like to turn the conference back over to Dennis Puma for any closing remarks.

Okay. Thank you, Amy. Thank you, everyone, for joining us today. As a reminder, a recording of this call is available for replay on our Website. Again, we appreciate your interest and investment in New Jersey Resources. Thank you very much. Good-bye.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.