FOLSOM, NJ, April 6, 2020 – SJI (NYSE: SJI) today announced an update regarding the actions it is taking in response to COVID-19 and the related impacts on the company’s business.
“Our company has been busy executing our business continuity plans since the outbreak of COVID-19,” said Mike Renna, SJI President and Chief Executive Officer. “Our primary focus during this crisis has been the safety of our 1,100 employees, 700,000 customers, business partners and communities. Through proper planning and the innovative use of technology, all our employees are currently working, with essential employees in the field and non-essential employees working from home to assist in reducing the spread of the virus.”
“I want to express my deepest thanks and ongoing confidence in the entire SJI team for their round-the-clock efforts to ensure safe and reliable service to our customers and communities,” added Renna.
Our business operations continue to function and the delivery of natural gas to our customers has not been materially impacted. To date, SJI has not experienced significant reductions in sales volumes across our utility businesses and is closely monitoring potential impacts due to COVID-19 pandemic responses at the state and Federal level.
We continue to assess the impact of COVID-19 on our earnings. As expected, we have incurred incremental operating costs for emergency supplies, cleaning services, enabling technology and other specific needs during this crisis which have traditionally been recognized as prudent expenditures by our regulators. At present, we have not seen a significant impact to our accounts receivable. The impact to the collectability of accounts receivable has traditionally been included in rate recovery. Our infrastructure investment programs continue to move forward, but some construction activity has ceased in accordance with directives from the Governor of New Jersey. Looking forward, we expect an uptick in construction activity once we emerge from this crisis.
We have also taken steps to strengthen liquidity and ensure the ongoing funding of our 2020 capital program over the past few weeks:
- We have successfully addressed and eliminated all near-term SJI debt maturities through the execution of a $200mm 18-month term loan.
- We added additional liquidity at the SJI level through the close of a $150mm 364-day term loan.
- We priced a $525mm private placement at SJG on April 1st which we expect to close on April 16th. The private placement consists of $400mm drawn at closing to refinance a maturing term loan and $125mm drawn on a six-month delay which will assist in funding capital expenditures planned for 2020.
- We launched a $200mm At-The-Market (ATM) program to provide flexibility in addressing our previously announced 2020 equity needs.
With over $470 million of available capacity on our revolvers and the successful execution of our recent capital markets transactions, we feel confident in our liquidity position and ability to manage through the impacts of COVID-19.
Given the fluid nature of the pandemic, we are continually monitoring our business operations and will adjust as necessary to continue to provide safe and reliable service to our customers and communities while keeping employees safe.
About SJI
SJI (NYSE: SJI), an energy services holding company based in Folsom, NJ, delivers energy services to its customers through three primary subsidiaries. SJI Utilities, SJI’s regulated natural gas utility business, delivers safe, reliable, affordable natural gas to approximately 700,000 South Jersey Gas, Elizabethtown Gas and Elkton Gas customers in New Jersey and Maryland. SJI’s non-utility businesses within South Jersey Energy Solutions promote efficiency, clean technology and renewable energy by providing customized wholesale commodity marketing and fuel management services; and developing, owning and operating on-site energy production facilities. SJI Midstream houses the company’s interest in the PennEast Pipeline Project. Visit sjindustries.com for more information about SJI and its subsidiaries.
