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New Jersey Resources' Asset Management Agreements Negate Need for Equity Issuance, Janney Says

· 02/05/2021 08:46

01:40 PM EST, 02/05/2021 (MT Newswires) -- New Jersey Resources (NJR) will not have to issue equity in the near term, thanks to the asset management agreements its energy services segment entered, Janney wrote in note to clients Friday.

The agreements should generate $500 million over the next 10 years for the company.

The southern reliability link project, which is about 90% complete, and the Adelphia Gateway project, slated to enter full service later this year, are some of the other positive developments the brokerage highlighted.

Janney said the company's fiscal Q1 results were above its forecast due to net financial earnings increase at New Jersey Natural Gas, driven by higher base rates. It reiterated the buy rating.

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