Good day, and welcome to the New Jersey Resources Fiscal 2020 First Quarter Earnings Conference call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be 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, Director of Investor Relations. Please go ahead.

Thank you, Sharon. And good morning, everybody. Welcome to New Jersey Resources first quarter fiscal 2020 Conference Call and webcast. I’m joined here today by Steve Westhoven, our President and CEO; Pat Migliaccio, our Senior Vice President and Chief Financial Officer; as well as other members of our senior management team.As you know, certain statements in today’s call contain estimates and other forward-looking statements within the meaning of the securities laws. We wish to caution listeners of this call that the current expectations, assumptions and beliefs forming the basis for our forward-looking statements include many factors that are beyond our ability to control or estimate precisely. This could cause results to materially differ from our expectations, as found on Slide 1. These items can also be found in our forward-looking statements section of today’s earnings release, first on Form 8-K and in our most recent Form 10-K and Q as filed with the SEC. We do not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.We will also be referring to certain non-GAAP financial measures such as net financial earnings or NFE. We believe that NFE provides a more complete understanding of our financial performance. However, NFE is not intended to be a substitute for GAAP. Our non-GAAP financial measures are discussed more fully in Item 7 of our Form 10-K.Our agenda is found on Slide 2. Steve will begin today’s call with highlights from the quarter, followed by Pat, who will review our financial results, then we’ll open the call up to your questions. The slides accompanying today’s presentation are available on our website and were furnished on our Form 8-K filed this morning.With that said, I’d like to turn the call over to our President and CEO, Steve Westhoven. Steve?

Thanks, Dennis, and good morning. Before we get to our fiscal 2020 first quarter results, I’d like to talk briefly about New Jersey’s Energy Master Plan, which was released by Governor Murphy last week.The plan is a policy document that outlines the use, management and development of energy in New Jersey. The goal of the plan is achieve 100% clean energy and to reduce emissions to 80% of 2006 levels by 2050. We support the state’s submission and reduction goal, and recognize the opportunities it creates for a diversified energy company like ours.In fact, at our Annual shareowners Meeting last month, I outlined a sustainability agenda that aligns with the state’s 2050 target, including a voluntary reduction of our operational emissions in New Jersey to 50% of 2006 levels by 2030.Importantly, the E&P recognizes the role our infrastructure plays in meeting 75% of the state’s home heating needs. It also recognizes the long-term value of this infrastructure in delivering decarbonized gas supply to our customers through technologies like renewable natural gas and green hydrogen.With the policies outlined in the Energy Master Plan, our planned capital expenditures and our long-term NFE growth rate of 6% to 8% remain unchanged. New Jersey Resources has the assets, expertise and team to capitalize on these opportunities and grow our business while helping meet the state’s climate goals.We have a world-class gas distribution system that can be leveraged to deliver clean decarbonized fuel to heat homes and businesses. We are a significant long-term investor in New Jersey solar market, and we manage one of the state’s most successful energy efficiency programs.These strengths, together with our own sustainability agenda, will be critical in helping the state reach its emission goals, and they will allow us to remain focused on growing the company and generating long-term results…

Thanks, Steve. And good morning, everyone. Slide 12 shows the main drivers behind our quarterly NFE changes. Reported NFE of $40.4 million or $0.44 per share compared to $54.1 million or $0.61 per share in 2019.On the regulated side, NJNG’s utility gross margin increased in the first quarter, due primarily to higher rates resulting from our rate case settlement. In addition, NFE and NJR midstream slightly decreased during the first quarter through the recognition of a gain in the first quarter of 2019, on equity investment in Dominion that did not recur this year because we sold the shares.This decrease was partially offset by contributions from Leaf River, which with operating revenue of approximately $9 million, performed in line with our expectations.At CEV, NFE decreased for three reasons. First, the timing of SREC sales. In fiscal 2019, a larger portion of our annual SREC sales occurred in the first quarter. Second, first quarter 2019 included contributions from the wind portfolio that was subsequently divested in February of 2019.Third, we recognized fewer ITC credits in the first quarter compared to last year. As Steve mentioned, NFE and energy services declined due to narrow pricing spreads as caused by milder weather in the Northeast.Slide 13 outlines our capital spending for the first quarter of the next 3 years. There are a few points I’d like to highlight. For the quarter, utility spend was up 28% year-over-year, primarily due to increases in SRL and the combined investment in SAFE II and NJ RISE. For fiscal 2020, over 70% of total capital spend will be at NJNG, helping to port a rate based CAGR of approximately 10%.With PennEast pursuing a phase-in approach to the project, we’re reducing our capital expenditure estimates for 2021 and 2022. We now expect to spend between $105 million to…

Thanks, Pat. Before I open the call to questions, I want to thank our employees for all their hard work and dedication that drives our performance, and I appreciate you taking the time to join us today.I’ll now open the call for questions.

We will now begin the question-and-answer session. [Operator Instructions] Our first question comes from Travis Miller with Morningstar. Please go ahead.

Good morning. Thank you.

Good morning, Travis.

I just want a technical question here. I saw that your earnings share from the Clean Energy Ventures segment went up a little bit for your projection this year. Anything there that’s notable that drove that increase?

Travis, this is Pat Migliaccio. It’s really the increase of approximately $10 million in our expected spend on commercial solar projects, we’d drive the good portion of that increase to the range of 25% to 30%.

Okay. Is that - are those from opportunities that you’re seeing now in the market that might not have been as economic before, or something else going on there?

No. Just a further change in the pipeline.

Okay. And then a higher-level question. Obviously, there’s been a lot of talk about the potential opposition in residential side and natural gas use. And I think AGA had come out with some statements.And I wonder if you’re seeing that either in any of your neighborhood, local towns, anything in the policy discussions? Usually, we went through its environmental policy, debates, anything along those lines in terms of cutting back residential gas use.

Travis, this is Steve. And no, we haven’t seen any of that to date. In fact, our customer growth, as we’ve just said, continues on pace. We expect, over the next 3 years, to add 27,000, 30,000 new customers to our customer base. And given the demographics of our service territory and certainly the price of natural gas compared to all other ways to heat your home, we expect that to continue.

Okay, great. Thanks. That’s all I had.

Thanks, Travis.

[Operator Instructions] At this time, there are no further questions. I would like - pardon me, I see we have Richard [indiscernible] from Bank of America. Please go ahead.

Hi, morning. Can you guys hear me?

Yes.

Hey, Richard.

Hi. I was just wondering, with your guidance range, you just reaffirmed it. It seems like a pretty big miss relative to expectations. Just how do you see yourself trending within that range?

Richard, this is Pat Migliaccio. I mean, we reaffirm the guidance range of $2.05 to $2.15 [ph]. At this point, it would be premature for us to give any more refined guidance than that.

Okay. So just reaffirming the guidance, but not necessarily trending higher or lower?

Yes, I think that’s a fair statement.

Okay. Thanks a lot.

This concludes our question-and-answer session. I would like to turn the conference back over to Dennis Puma for any closing remarks.

All right, Sarah. I want to thank everybody for joining us this morning. As a reminder, a recording of this call is available for replay on our website. As always, we appreciate your interest in investing in New Jersey Resources. Good-bye.

The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.