Good day and welcome to the New Jersey Resources Corporation Quarter Two 2015 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 call over to Mr. Dennis Puma from Investor Relations. Please go ahead.

Thank you, Catherin, and good morning everyone. Welcome to New Jersey Resources’ second quarter fiscal 2015 conference call and webcast. I'm joined here 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 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 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 on our 10-Q to be filed with the SEC 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 also like to point out that there are slides accompanying today's discussions which are available on our website and were also filed on our Form 8-K with the SEC 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 think for those of you who follow our company have seen this morning's earnings release, you know that we are having a very strong fiscal 2015. After my presentation this morning, I will be discussing our future and I'll be making forward-looking statements. And, as Dennis pointed out, our actual results will be affected by many factors including those that are listed on Slide1. The complete list is included in our 10-K so I'd ask you to please take some time and to review them carefully. And also as we note on Slide 2, I'll be referring to certain non-GAAP measures such as net financial earnings or NFE, as I discuss our results. We believe that NFE provides more complete understanding of our financial performance. However, NFE 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'd ask you to please take some time to review that disclosure carefully as well. Turning to Slide 3, this morning we raised our fiscal 2015 NFE guidance to a range of $1.65 to $1.75 per share from our previous guidance range of $1.60 to $1.70 per share. This is the second time we've raised our NFE guidance this year. As you may recall, our initial guidance was a range of $1.45 to $1.55 per share. Better than expected results from NJR Energy Services are the primary reason for the increase in guidance. Fiscal 2015 has been colder than normal, which has created opportunities for NJRES particularly in the daily natural gas markets. Moving to Slide 4, this morning we announced net financial earnings of $99.1 million or $1.16 per share for the fiscal second quarter…

We will now begin the question-and-answer session. [Operator Instructions] Our first question comes from Mark Barnett with Morningstar Equity Research.

Hey, good morning everyone.

Hi, Mark.

Good morning, Mark.

I'm glad you guys scheduled for 9:30 since I had four at 9 am. A couple of quick questions. Just real quickly on the Reliability Link filing, when do you expect you might have a reply from the Commission? And, once that's done, at what point will you start spending the CapEx on that project?

Mark, we just filed those petitions recently so that will go through the normal process. So, it would be premature for me to speculate on when they would actually decide that. But, obviously, then your next question is once that is decided, we'll start on the construction immediately.

Okay. So there's nothing statutory in terms of the Commission's timeframe for a project? Okay.

Yes.

And probably another question you don't necessarily want to answer precisely. But, is there any chance that we'll see a rate case filing in this next quarter or do you think it's likely going to end up near the November guidance?

Well, you'll be happy to know that I will answer that question, Mark. As we said publicly, we will file that on or about November 15 of this year and that plan has not changed.

Okay, thanks. Last question. More broadly speaking, obviously the great outperformance at Energy Services; a lot of that's asset optimization. I'm curious what you're seeing on the producer services front over the past six months to a year given the challenges that a lot of drillers have been facing.

Sure. I'll ask Mike to take that one, Mark.

Mark, if anything, especially with some other companies, again, retreating from this line of business, we, if anything, see more opportunities and have seen some RFPs that we had not seen prior to this fiscal year. So, I think producers dealing with the issues they're dealing with continue to look for value from companies like us in helping them monetize their supply as much as possible.

So, I know you don't break out the numbers specific to producer services. But, would you say that in 2015 so far the financial results from that segment have grown?

No. The producer services business is mostly based on production of those producers. And we have disclosed publicly that, going into a normal year, we expect that revenue to be about 30% of the company's margin. But to the extent we're having a better than expected year, the producer services part of it is pretty much on plan. But, as a percentage of total, it would be actually lower because of the extra profits we're making from the daily markets.

Right. Great. Thanks for clarifying.

You’re welcome.

Thanks, Mark.

[Operator Instructions] Our next question comes from Spencer Joyce with Hilliard Lyons.

Good morning, guys. Congrats on another great quarter and another guidance rise. You're spoiling us.

Thank you, Spencer.

I had to jump on a little bit late. I had some 9 o’clock as well and I apologize if you touched on this. But, can you just talk a little bit qualitatively about how your wind business has gone so far and how pleased you are with the foray into that line? I guess we're coming up on a year or so of Two Dot and with Carroll Area being online; can you just give us some general sentiments with regard to that move?

We’ve actually been very pleased the way that business has rolled out and the way the team has executed the strategy. Remember, when we got into that, we did not want to get into the development part of the business. We didn't that that was a risk profile that was appropriate for us. But we were looking for mid-sized projects that were based upon more steady streams of cash flow, longer-term contracts, as well as the production tax credits. And we were doing that to try and balance the portfolio, which, as we entered that business was more heavily focused on solar and the ITCs, as you are well aware. So as we look at this now, since we actually got into and began to talk about why we were doing this and the type of projects we would pursue, we're actually quite pleased not only from the strategy point of view, but also from an operational point of view, the way our team has been able to work with our partners to complete these projects and to do that efficiently. But, I would ask – Stan Kosierowski is with us in the room today. If he wants to add anything to that.

Sure. Just the fact that all the projects that we have are operating. They are operating at or better than the capacity we expected. Construction-wise, they're built well and they're performing well. So on a qualified basis, we're pretty pleased with the investments.

And Spencer, as you said, when we first started talking about wind, the change in the ITC going from 30% to 10%, we laid out very clearly that our strategy was to position the company such that when that happens that we would not be affected by the so-called cliff. And so as we are much closer to that now, you can see the wind portfolio, 23% of the total portfolio, that we’ve positioned the company just as we had laid out from a strategy point of view to make sure that we wouldn’t be affected by the drop in the ITC. And that's exactly what's happening.

Fantastic. Great color there and really encouraging to hear that strategic move going according to plan.

Okay.

Also, on the wind side, I mean this could be a bit of a stretch, but given the geographic location of some of the facilities in Middle America, if you will; have you seen any either rise and fall or change in, perhaps, the project pipeline from recent malaise in kind of the oil and gas?

I’m going to ask Stan to take that as well, Spencer.

Well, are you talking about the wind pipeline for future projects?

Yes, yes.

I think what we see is we have a pretty robust pipeline of projects that people have safe-harbored under the PTC provisions. So, we see a pretty healthy amount. I think the question becomes one; after that pipeline goes away in 2016 or 2017 what's left and to what extent is the federal tax laws going to change or how the pipeline will develop after that? But, right now, we have a robust pipeline that will meet the financial targets we're looking at.

And, Spencer, I think, as part of that, it's important not only to focus on the PTC, but also the renewable portfolio standards which provide obviously the source of demand in a lot of those areas as well. So, we're taking advantage of that.

Yes. Fair enough, there. Thanks again. Good quarter. And safe travels out to California. We'll see you in a week or so.

Thanks, Spencer.

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

Okay. Thank you, Catherine. I want to just thank everyone for joining us again here this morning. As a reminder, a recording of the call is available for replay on our website. Again, we appreciate your interest and investment in New Jersey Resources and enjoy the rest of your day. Good-bye.