Good day, and welcome to the New Jersey Resources Fiscal 2020 Second Quarter Earnings 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, Head of Investor Relations. Please go ahead.

Thank you, Cole. Good morning, everyone. Welcome to New Jersey Resources second 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 one.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'll also be referring to certain non-GAAP measures such as net financial earnings, or NFE. We believe that NFE provides a more complete understanding of our financial performance. However, it is not intended to be a substitute for GAAP. Our non-GAAP financial measures are discussed more fully in Item 7 of our 10-K.Our agenda is found on slide two. 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’ll turn the call over to our President and CEO, Steve Westhoven. Steve?

Thanks, Dennis, and good morning, everyone. Thank you for joining us today. The devastating impact of COVID-19 has been felt around the globe, across our state and in our communities. Our thoughts are with all those who've been affected. And while this is unlike anything we've ever experienced, every day our team rises to the occasion with professionalism and hard work. Without interruption, we've maintained our ability to deliver safe and reliable natural gas service to our customers.As we navigate these unprecedented times, one thing remains clear. The health and safety of our employees and our customers remains our top priority. In early March, we implemented our business continuity plan and now nearly half of our team is working remotely. Our essential employees such as our first responders, distribution mechanics, service technicians, continue to assist customers at their homes and businesses, all while following robust safety protocols.To protect employees and customers, we are limiting the potential for exposure by strictly following CDC and state guidelines, maintaining social distance and wearing appropriate personal protective equipment when entering a home or business. We suspended disconnections to ensure customers have continued natural gas service and we've waived late fees and for customers who experience hardships, we're providing energy assistance in the form of grants to help them with their energy bills.We also recognize the impact that COVID-19 is having on our communities, especially the most vulnerable. That's why we've donated $125,000 to community food banks that are delivering meals to thousands of residents in need. Additionally, through the United Way, we donated funds to support first responders, victims of domestic violence, as well as our local businesses.Given the critical services we provide, we have not experienced the fundamental change to our core operations. We continue to provide service to over 550,000 utility customers…

Thanks, Steve, and good morning, everyone. Turning to slide 11, we've taken two significant steps to improve our liquidity profile. In April, we priced an additional $385 million of long-term debt, mainly to provide financing for the Leaf River and Adelphia Gateway acquisitions and to other infrastructure projects. We expect to receive $260 million at NJR and $125 million at NJNG during fiscal year 2020 subject to customer assigning and closing conditions.Also in April, we entered into a new $250 million, 364 day credit facility. Once we account for the new facility and long-term financing, our liquidity position becomes even stronger.On slide 12, we show our debt maturity schedule. As you can see from the chart on the right, and assuming signing and closing of our recently priced notes, we effectively remove most of our near-term maturities.Slide 13, shows the main drivers behind our quarterly NFE changes. During the second fiscal quarter of 2020, NJR report and NFE of $107 million or $1.12 per share, compared to $112.4 million for $1.27 per share in 2019. New Jersey Natural Gas and Home Services and Others saw NFE improvements quarter-on-quarter. NJNG increased to $17.8 million during the quarter, mainly due to higher base rates and also lower O&M expenses. Home Services and Other increased $1.7 million due to lower O&M.Energy services phase continuing challenging market conditions through the unusually warm winter we experienced this fiscal year. CEV was down $5.7 million, mostly due the timing of SREC sales, which will occur in the second half of the year.Finally, our Midstream segment was essentially flat with the operating income generated by the acquisitions of Adelphia and Leaf River offset by increased interest expense from related to those acquisitions.Slide 14, outlines our capital spending for the first six months of fiscal 2020 in the…

Thanks, Pat. It's been a challenging time for all of us. But even under difficult circumstances, the fundamentals of our business remain strong. We have sufficient financial credit liquidity across our business lines. Our team of dedicated professionals continues to drive the value of our company. Witnessing our employees bravely carry out their mission through these uncertain times has been inspirational, and it still instills confidence that we will emerge stronger than ever.Thank you for joining us today. And now we'll open up the call to questions.

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

Good morning. Thank you.

Hey, Travis.

Good morning, Travis.

Hi. So, couple of quick questions here, the weather normalization or decoupling causes. How much did that give you back in terms of the weather impact that you had during the quarter?

Travis, this is Pat Migliaccio. It was, as you correctly said, we are decoupled and so insulated from the warmer than normal weather, the utility, the CFP mechanism, I believe added a few million dollars, this particular quarter and more than that for the six months ended March 31 to the tune of I think close to 10.

Okay, good. And on the solar side, I was wondering if you could talk about what you're seeing on supply? Are you getting supplies when you need it? What does the supply chain look like? Is there difference between the larger projects and the smaller residential? Just wonder if you could talk a little bit about what you're seeing on the solar supply chain and supply?

Hey, Travis. This is Steve. So in regards to the solar market you know, our construction, we have purchased believe all the solar panels that we need for this year. So our supply chain has been uninterrupted. So all the construction that we have, obviously has been planned for quite a while. And, you know, we're entering into building our, you know, remaining facilities for the fiscal year as we go through the summer that construction still continues. So from our perspective, uninterrupted and really business as usual.

Okay, one more if I may, if you see what's going on in the oil market, especially Texas, the other oil basins and potential decline in the associated gas, potential increase in gas prices. How does that affect the Marcellus area and the spreads that you see, when I think conceptually, if we get a rise in gas prices decline in associated gas down south, how that might affect you guys?

Well, I think as we alluded certainly, the disruption in the oil market and, what's happening to the producer community down there, where, production is either being halted or drilling programs are being reduced. It's just leading, causing volatility in those markets. So certainly spreads or wider, you've got a shifting of essentially gas moving, you know, from one area to another, gas production moving from one area to the other, driving value of storage to be able to balance all this out. And certainly, creating volatility in the marketplace, I think trying to predict exactly how this going to fold out is going to be very difficult at this point in time. But I think the bottom line story of all this is that, there's more volatility ahead and unpredictable future for essentially how this all plays out.

Okay. Great. Appreciate it. Have a good day.

Thank you, Travis.

Thank you, Travis. Stay health.

[Operator Instructions] And our next question comes from Richard Ciciarelli with Bank of America. Please go ahead.

Hey, good morning. Thanks for taking my questions.

Hey, Rich.

Hi, Rich.

Hey. Just a quick one back to the solar execution and I know most of the IPC recognition is in the back half of the year. But anything that you're seeing in terms of demand from customers or ability to execute on specific projects into 2H just given the COVID impacts and social distancing?

Well, Richard, our construction crews are basically maintaining the social distancing, certainly adhering to all the CDC and state guidelines for construction, as we said, before, certainly the safety of our employees and our customers is of utmost importance. And then as far as the construction goes, the BPU, reconfirm that, solar is a central service, and that constructions moving forward. So essentially, all the projects that we've had planned for quite some time are moving forward. And we're – we're hopeful that we'll be able to complete those by the end of the fiscal year.

And Richard, the only thing I'd add is, as I mentioned in my script, we did decrease slightly our expectations for Sunlight Advantage. It's really not a reflection of construction, more reflection of our channel partners, not being able to get into custom – some customers home to do the marketing associate with that as you might imagine?

[Operator Instructions] And this will conclude our question-and-answer session. I'd like to turn the conference back Mr. Dennis Puma for any closing words.

Okay, Paul. Thank you very much, everyone for joining us this morning. As a reminder, a replay of this call is available on our website. And as always, we appreciate your interest and investment in New Jersey Resources. Stay safe everyone. Good-bye.

The confidence is not included. Thank you for attending today's presentation. You may now disconnect your lines at this time.