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South Jersey Industries Inc (NYSE:SJI)
Q3 2020 Earnings Call
Nov 6, 2020, 11:00 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Thank you for standing by. Welcome to the South Jersey industries third quarter 2020 earnings conference call. [Operator Instructions]

At this time, I would like to turn the conference over to Mr. Dan Fidell. Sir, you may begin.

Dan Fidell -- Vice President-Investor Relations

Thank you. Morning, everyone, and welcome to sa eyes third quarter 2020 earnings conference call and webcast. I'm joined today by Mike Renna, our president and chief executive officer, Steve Cocchi, our Chief Financial Officer, as well as additional members of our senior management team. Our earnings release in the presentation slides that accompany the call were issued yesterday after the close of the market are also available on our website at www.sjindustries.com. The release and the associated 10 q provide an in depth review of earnings on both the gap and non gap basis using our non gap measure of economic earnings. Reconciliations of economic earnings to the comparable gap measures appear in both documents.

Throughout today's call, we will be making references to future expectations, plans and opportunities for STI. Actual results could differ materially from those projected in any forward looking statements, or discussion of factors that could cause actual results to differ. Please refer to our SEC filings.

And with that said, I'm pleased to introduce our CEO, Mike Renna, who will review our business operations and pandemic response. Our CFO, Steve Cocchi, will then review our third quarter financial performance and financial outlook. Michael will then review our key priorities for the remainder of the year and offer some closing remarks. After that, we'll be happy to take your questions.

With that. Let me now turn it over to Mike.

Michael J. Renna -- President and Chief Executive Officer

Thanks, Dan. And thanks to all of you for joining us today. I hope you and your families are safe, healthy, and well. I'd like to begin my remarks with an update on our operations and the significant progress we've made in executing our business priorities in 2020. Despite this terrible pandemic, our top priority remains the safety of our employees and assuring critical gas delivery to our 700,000 customers. Overall, our businesses continue to operate very effectively during the pandemic, thanks in large part to the dedication of our exceptional employees. You know throughout this pandemic, we have incurred incremental costs to keep our businesses running and maintain high levels of service. We've also experienced higher on collectibles as shut offs in New Jersey have been suspended since March with our full and voluntary support.

Thankfully, in July, our regulators unanimously approved an order authorizing the state's utilities to establish a regulatory asset, allowing the deferral of these incremental expenses for future recovery. We have also completed multiple steps in 2020. To strengthen our balance sheet and liquidity eliminated a majority of our debt maturities for the next five years, and ensure the ongoing funding of our capital program. Having taken these proactive steps, we feel competent our ability to continue to successfully navigate through the impacts of covid 19 going forward. Turning through our business results, successful execution of our priorities. Combined with a fourth consecutive quarter of solid improvement our financial results shows that our business transformation efforts over the past few years are paying off. Consistent with our goals.

Our utilities South Jersey gas and Elizabeth town gas represent the majority of our earnings. margins have increased significantly in 2020, reflecting above average customer growth, positive base rate case outcomes, decoupling and weather normalization riders, critical infrastructure modernization programs and trackers and effective management. With respect to customer growth, natural gas remains in strong demand across our territories and across New Jersey. With more than 14,000 New South Jersey gas and Elizabeth town gas customers adding service in the last 12 months alone. The bulk of our new customers continue to come from conversions, with roughly two thirds converting from alternative fuels, such as heating oil and propane to cleaner burning and lower cost natural gas.

Our regulatory relationships remain constructive and strong, resulting in amicable settlements in record time with desired results of both our utilities. Our utility infrastructure modernization programs critical to assuring safe and reliable service to our customers have the added benefit of significantly reducing that emissions. Over the last 12 months, we've invested more than 100 and 50 million to replace aging cast iron and bare steel main across our system. And on October 1, we adjusted our rates. With regulatory approval to begin recovering these important investments are non utility operations have also experienced significant improvement this year as well, largely as a result of a right sizing and a refocusing of business priorities.

Our wholesale business has delivered solid year over year improvement, driven by strong performance related to our fuel management contracts, the roll off of legacy contracts, reshape portfolio and asset optimization opportunities. Finally, our energy services business has delivered on our commitment to align and advance the clean energy goals of our state and region. In August, we announced a new joint venture with our partner cap tuna to invest in renewable projects, and at the same time announced the acquisition of two fuel cell projects in New York City. These projects, along with targeted solar investments that our corporate facilities landfills and select other projects, fulfill our clean energy investment goals for 2020 and provided a solid 12 cent per share ITC benefit to third quarter results. Overall, we are very pleased with the execution of our business plan in 2020.

At this time, I'll now turn it over to Steve to review our third quarter results and guidance, after which I look forward to offering some closing remarks. Steve.

Steven R. Cocchi -- Senior Vice President, Chief Financial Officer

Thanks, Mike. Good morning, everyone. As Mike noted, despite the continuing pandemic, our business performed well in the third quarter and year to date, and we've experienced no material financial impact from the pandemic. as Dan noted earlier, both the earnings release and the slide deck we've made available will provide you with detailed information regarding gap earnings, and I would encourage you to review that information as well. For the purposes of this call as we normally do, we'll focus our discussion on our non GAAP measure of economic earnings, as management believes that this measure provides valuable insight into the performance of our business. Third quarter 2020 economic earnings were a loss of six cents per diluted share, compared with a loss of 30 cents per diluted share in third quarter of 2019. Reflecting improved profitability from both our utility and non utility businesses.

Our utilities contributed a third quarter loss and earnings of 18 cents per share, compared to a loss of 24 cents per share in 2019. Improved results primarily reflect the etg rate case that became effective last November. Positive customer growth and base rate Rowlands related to sggs infrastructure modernization programs, or non utility operations contributed 21 cents per share, compared to two cents per share in 2019. Improved results were driven by increased profitability at both energy group and energy services. Energy group contributed third quarter earnings of six cents per share, compared to a loss of one cent per share in 2019. Reflecting additional fuel management contracts became operational over the last 12 months, higher volumes and improved asset optimization opportunities resulting from efforts to reshape our portfolio.

Energy Services contributed third quarter earnings of 14 cents per share, compared to two cents per share in 2019, primarily reflecting the recognition of 12 cents per share in investment tax credits related to fuel cell and solar acquisitions that were announced or achieved operation during the latest period. Our other segment contributed a loss and economic earnings of nine cents per share, compared to a loss of eight cents per share in 2019, reflecting an increase in outstanding, partially offset by debt repayments, and refinancing activity. For 2020 year to date, economic earnings were $1. Four per diluted share, compared to 65 cents per diluted share for the comparable period a year ago. Again, reflecting improved profitability from both our utility and non utility businesses, and driven largely by the same factors as third quarter.

As Mike mentioned throughout 2020, we've completed steps to strengthen our balance sheet and liquidity and ensure the ongoing funding of our 2020 capital program. In July, we refinanced at SGI a $200 million 18 month term loan in two tranches with maturities of seven and 10 years respectively. And on July 31, we closed on our sale of Elkton gas to Chesapeake utilities for approximately $15 million in cash, with the proceeds fueling further debt reduction.

As of September 30, we have $1.1 billion in total credit facilities, and approximately $450 million of available capacity on our revolvers, and feel confident in our ability to manage through the impacts of covid 19. our balance sheet continues to strengthen in 2020. Equity to total capitalization was approximately 33% at September 30 2020, compared with approximately 30% at December 31 2019, reflecting debt and equity financing, and repayment of debt using proceeds from asset sales, including the conversion of mandatory convertible equity units due in 2021. And equity credit from rating agencies for long duration debt are adjusted equity to total capitalization ratio, a non gap measure was approximately 40 41% at September 30 2020, compared with approximately 38% at December 31 2019.

Turning down the guidance, our capital expenditures year to date were approximately 400 and 10 million, primarily reflecting investments for utility infrastructure upgrades, system maintenance, customer growth, and clean energy investments. We continue to expect capital spending of approximately $600 million in 2020 with approximately $500 million for safety and reliability investments that are utilities, and the remainder for non utility, clean energy and other investments. We're pleased to report solid third quarter and year to date results, excluding the recognition of 12 cents per share, and it sees related to our clean energy investments and the latest period. Our third quarter results still showed a sizable 12 cent gain per share improvement versus the comparable period a year ago, again driven by improved results of both our utility and non utility segments.

As we head into the fourth quarter, we now expect 2020 ongoing economic earnings at the upper end of our dollar $52 60 per diluted share range with approximately 75% of earnings from our utility operations, excluding interest costs. As a reminder, while we have thus far witnessed no material financial impact from the pandemic, we're continually monitoring all facets of our operations for potential future impacts to our financial projections. That concludes my remarks. And I'll now turn it back to Mike. Hey, Steve. Before we conclude, I want to say a few words about our continuing strategic priorities. Above all else, we remain committed to the safety of our employees, our families and our communities. We are functioning very effectively from a largely remote platform, and we'll continue to make decisions informed by directives from our leaders and health experts.

On the regulatory front, we have several important clean energy focused regulatory initiatives pending before the bpu. In June, the bpu issued an order directing the state's utilities to file expanded energy efficiency and demand response programs with a program effective date of July 1 2021. For three year term. These programs designed to reduce consumption and lower customer bills have the added benefit of being a significant job creator. Consistent with our existing energy efficiency programs, we would expect our cost to be recoverable through a surcharge.

In September, our utilities filed proposals to expand our energy efficiency programs representing 260 7 million in new investment. We are also proposing a decoupling mechanism for Elizabeth town similar to the one currently in place at Sadler's gas that will further encourage reductions in consumption. We expect a resolution of these requests in the second quarter of next year. We also expect to file a request to extend South Jersey gas companies accelerate infrastructure replacement program before your end. This program which expires in 2021 remains critical to assuring the safety and reliability of our system and is an important driver in reducing fugitive methane emissions. It's also provided hundreds of good paying jobs in New Jersey for more than a decade.

On the Clean Energy front, we continue to evaluate a large few projects for potential future investment. investments in renewable natural gas smart meters power to gas, other energy investments align with and have the potential to accelerate the clean energy goals of our state and region. We anticipate being able to discuss these new opportunities with you as we solidify our plans. The last topic I'd like to discuss with you today is the recent performance of our stock Over the past several months, we've heard a variety of opinions as to why the utility sector has underperformed the broad market despite historically low interest rates and economic uncertainty, and why gas ldcs like SGI have underperformed the utility sector. The chief among these concerns is a narrative that presupposes the immediacy of terminal value on ldcs. driven largely by a shift in sentiment toward renewables and away from fossil fuels, a challenge even more pronounced for STI given some of the aspects of the New Jersey energy master plan.

And while acknowledging these concerns, as Mark Twain famously said, upon reading his own mistaken obituary, we believe reports of our death are greatly exaggerated. Quite the contrary, we view ourselves to be the best partners with the state, working hand in hand toward achieving and again, even accelerating the goals of the energy master plan. The energy master plan as a blueprint holds great opportunity for us to grow through strategic clean energy and decarbonisation initiatives and investments. At our core, we are a 3 billion rate based infrastructure company. Our pipes in the ground are a valuable asset pay for and serving, serving customers safely, reliably and affordably for decades. In fact, natural gas continues to heat approximately 75% of homes and businesses in New Jersey, with thousands of new customers added every year. Safety, reliability and affordability are at the core of our mission.

We are prioritizing critical infrastructure investments, investments that will modernize our system, greatly reduce fugitive methane emissions, and ensure critical supply and system redundancy. And we are equally committed to sustainability and are encouraged by the potential offered by technologies that lower consumption and the carbon content of natural gas. Our regulators continue to demonstrate their solidarity with us by approving and in fact, mandating regulatory initiatives that support these priorities. As I've said many times, we remain agnostic in terms of the molecules flowing through our pipes. Whether it's clean burning natural gas, renewable natural gas or hydrogen, our pipes will remain a vital energy delivery system for New Jersey for decades to come. We are proud of your as a company, we are partnered with the state.

And it is never been more important for utilities across New Jersey to support our economic recovery efforts with the shovel ready jobs to get our state back to work. Let me conclude my remarks by once again thanking our 1100 employees, for your commitment to each other and to our customers. your tireless work ethic throughout this crisis is why we continue to deliver on our mission by continued admiration and deepest thanks to all of you.

Operator. That concludes our prepared remarks. And we are now ready to open the line for questions.

Questions and Answers:

Operator

Yes, sir. [Operator Instructions] Our first question or comment comes from the line of Richard Ciciarelli from JP Morgan, your line is open.

Richard Sunderland -- JP Morgan -- Analyst

Hi, good morning. Thanks for taking my questions.

Michael J. Renna -- President and Chief Executive Officer

Good morning Rich.

Richard Sunderland -- JP Morgan -- Analyst

Just want to start off on the LNG redundancy project. Could you provide an update of kind of where the regulatory process stands for that project and kind of any upcoming timeline or hurdles?

Dave Robbins -- South Jersey Industries Inc. -- Senior Vice President

Yeah, hi, rich. This is Dave Robbins. So as you know, we filed last December. It's been slow to move admittedly up at the bpu. There has been some communication with staffs. In the last month, we have received a few discovery questions. There were some technical aspects of the filing, which were minor that we were asked to do. So that has been reintroduced back to staff. So we expect another round of discovery, you know, relatively soon. Again, we don't have a definitive timeline for getting ultimate BPO approval. So it's moving but certainly been a little slower than than we would have liked. Got it understood. And then maybe switching gears a little bit, the you know, the financing done this year, that equity financing to be specific. You know, think about part that was originally tied to this LNG redundancy project, just kind of thinking longer term here about future equity needs, whether specifically for this project or other programmatic spending discussed, you can outline, you know, what kind of might be the timing and overall need for equity at this point?

Steven R. Cocchi -- Senior Vice President, Chief Financial Officer

Sure, hey, rich, this is Steve Koshi. So, I think, you know, as we've always said, we were we we intend to continue to finance the business and our growth through a mix of debt and equity. You know, I think we've got a tremendous amount of growth opportunities in front of us, and, and have demonstrated good regulatory outcomes and support from our regulators to continue to invest in our systems in New Jersey. So what we'll we'll likely do is, you know, as we've done in the past, we'll, we'll have some guidance that will, we'll speak to next year at some point, and we'll have more detail around specific equity plans at that point.

Richard Sunderland -- JP Morgan -- Analyst

Okay, great. And then if I could just fit in one more quick one, there's been a talk at times about local stimulus and how the GATT system, an associated investment player might be a way to put kind of jobs and money into the local economy. Could you speak to what you're hearing on this? And maybe, additionally, kind of thoughts on any incremental programmatic attract cap x? If that would be your attitude to your plan? Or if that would offset kind of current higher lags then?

Michael J. Renna -- President and Chief Executive Officer

Hey, Richie, it's my call. I'll take this one. Um, any kind of formal announcement from from the state with respect, specifically to, you know, utility kind of driven stimulus. Those conversations continue to happen, I think that there is there is certainly strong support in the front office, as well as that with our regulators around, you know, utility investment as a means with which to to get new jersey's economy.

You know, I guess, you know, GM started, particularly on the jobs front. So, you know, we stand ready as do all of the utilities in the state with shovel ready jobs, to get our state back to work and our and our economy going again, I do think that there will be very specific stimulus based programs that come out of the utilities, I think, you know, a lot of reason for the delay is, is just, you know, it's the overall management of COVID, as you well know, you know, New Jersey got hit very hard. It took us, you know, probably a month, if not longer to begin the reopening process of our economy.

You know, we're just now getting through the summer and kind of, you know, heading into the fall and, and so, you know, things are not fully reopened here. We're still taking a very measured approach. And so I, I believe that as we've kind of gotten this health crisis, hopefully under control, the state and the and certainly the bpu are now turning their attention to to the economy and getting people back to work. And I've had conversations very directly with, with folks at the, you know, leadership at the bpu, who fully understand appreciate how critical utilities are to that.

Richard Sunderland -- JP Morgan -- Analyst

Great, appreciate the color. Thank you.

Michael J. Renna -- President and Chief Executive Officer

Thanks.

Operator

Thank you. Our next question or comment comes from the line of Gabe Moreen from Mizuho. The line is open.

Gabe Moreen -- Mizuho -- Analyst

Hey, good morning, everyone. Can I ask a little bit on bad debt expense? And I guess in the context of the moratorium on shut offs being extended, kind of how you're viewing bad debt, we're going into the winter heating season and maybe Can you also remind us just what the mechanisms will be ultimately for the recovery of that of that asset? When when the time comes?

Dave Robbins -- South Jersey Industries Inc. -- Senior Vice President

Yeah, Gabe, sure if this Dave Robbins. You know, we a lot of our customers are paying and as Mike mentioned, we do have a regulatory mechanism put in place for recovery. have bad debt in our regulatory asset, so, you know, we're we're really doing some some soft collections. Obviously, the moratorium for voluntary shut offs on residential has been in we've agreed to through March 15. We are continuing to pursue our commercial delinquents, we have not really seen really noticeably issues with our large volume customers. So we're still waiting for some guidance from staff as far as when recovery will be filed for, but we certainly have approval to defer those costs. And we are doing that today.

Gabe Moreen -- Mizuho -- Analyst

Great, thank you. And then maybe if I can switch to sort of the renewables opportunity in talking about the catamaran JV just how much I guess of your intended future investment will happen within that JV, is there anything that we should know in terms of capital contribution sharing, or tax credits and how it comes out of that JV? going forward? I guess, just also in the bigger picture, you know, in thinking about 20 100 million ish, how are you thinking about that number going into 21?

Michael J. Renna -- President and Chief Executive Officer

A game, but it's my goal, I'm going to ask Steve to jump in here and help me but let me all he can talk more specifically about how potential future deals might look between us and catamaran and, and the sharing of the cap x and any associated ITC that might come from that. But you know, as far as kind of thinking about our renewables investment, I, I would be remiss if I didn't kind of go back to when we first started discussing our kind of targeted re entry into insurance intervals. It was, as we've said, all along, it was designed to be very measured, very targeted, and to demonstrate support for the Clean Energy initiatives. In New Jersey, and in the broader region.

Clearly, you know, the energy master plan there, there is an emphasis on on clean energy type of investments, we felt that at that time, strategically, it was to our detriment to, to not, or to be the only utility in the state that was was not, you know, making any kind of investments in clean energy. So we committed to doing that in support of the state's priorities. But we've also said all along that, that our goal and our focus with these investments would be on on the type of clean energy and renewable investments that we're going to benefit our utility, and our utility customers. So our focus has been on the longer term potential of RNG smart meters, certainly a power to gas. So as we think, you know, longer term around our span, I mean, that's where our priorities would, would rest.

The fuel cell, we thought was a really unique opportunity for us to make an investment in clean energy, and, you know, and the clean, I guess, consumption, and use of natural gas, and we thought that was a great strategic fit. But, you know, beyond that, I think we would not be looking to, you know, to, you know, we've kind of said all along, or overall tax plan for this would be somewhere in the hundred and 50 to 200 million range over a three year period. Those would be for for non utility investments. And I think that that's a pretty safe, you know, sort of assumption. So I think we're somewhere right around 100 million for this year.

So, you know, we've got somewhere between 50 and I, I, you know, I think hundred, another hundred million would be at the very, very high end of our range. And I will say this to any investments that we make, they've got a clear, very rigorous internal hurdles. We're not doing this to, to simply, you know, chase after ITC, we want these investments to be strategic and aligned with our plan.

Gabe Moreen -- Mizuho -- Analyst

Thanks, Mike. No, that's helpful. Maybe if I can just follow with one more sort of an orangey. And just, you know, that 50 to 100 million, questioning just how much might be RNG and in, you know, your ability to do it within the utility outside of the utility and if you do you know how you're doing in terms of recovering I guess the gas costs From from Orange.

Michael J. Renna -- President and Chief Executive Officer

Yeah, great question. You know, RNG is a little bit of a longer term play, certainly not as long term as something like power to gas and hydrogen. But I think, you know, as, as a state, we're certainly well positioned. With all the plan offshore wind for something like power to gas. Again, I think that's, you know, that's a that's, you know, that's a longer term kind of play an opportunity, I think there is, there is a more immediate opportunity and RNG were encouraged by the conversations we're having within New Jersey. As you can imagine, you know, most of the opportunities in New Jersey would be around food waste landfills, wastewater treatment facilities, not an abundance of dairy farms in New Jersey.

But there are, you know, the the potential of dairy farms and the, the the ability for them to very quickly have a meaningful impact on carbon intensity, because of because of, you know, the, the positive nature of methane that is generated from, from really manure is, is something we're actively looking at, as well as how do we, you know, for us, it really becomes, you know, it gets back to this, this, this vision and this goal of being a clean energy company, and finding ways to decarbonize our, you know, the gas flowing through our pipes. So we as a company are committed to that. And we are looking at every and all opportunity to do that.

Gabe Moreen -- Mizuho -- Analyst

Gotcha. Thanks, Mike.

Operator

Thank you. [Operator Instructions] Our next question or comment comes from the line of Richard Ciciarelli from Bank of America, your line is open.

Richard Ciciarelli -- Bank of America -- Analyst

Hey, good morning. Thanks for taking my question here. I'm just curious on the on the updated guidance that you provided, you obviously had some nice tailwind in the quarter on on the non utility side with the turnaround there and wholesale marketing and also the the ITC recognition that you mentioned. I'm just curious if we can provide a little bit more color on what's driving the upper end of the range and maybe speak to the sustainability of that into next year.

Steven R. Cocchi -- Senior Vice President, Chief Financial Officer

Sure, hey, Richard. It's Steve. So look, it's it's really being driven by by the strong performance across the business this year, the utilities have had incredible performance for a variety of reasons, including, you know, kind of, you know, strong regulatory outcomes, and, you know, maintaining a strong focus on achieving efficiencies and, and cost controls. And then at the non utility, as you've seen, our wholesale business has has outperformed this year, as well, based on a lot of the things that we've talked about, you know, over the last couple of years, intentional efforts to reshape that portfolio to shed assets that are not performing up to our expectations.

So we expect the, you know, the that to carry through to the end of the year. And we expect to see the additional positives in the remainder of the year based on some of the regulatory outcomes and the performance of the business that we've seen thus far. And that's really what's driving us to to the upper end of the range. As far as next year, and going into the future. As I said earlier, we would we would expect to, to come out with guidance at some point as we normally do. And we'll be able to give a little more concrete ranges around our expectations for next year. At that time.

Richard Ciciarelli -- Bank of America -- Analyst

All right, that's, that's very helpful. Appreciate the color there. And then just separately on on the pennies project, any expected updates on when we when we should have Burke rule on the the two phase approach. And just curious, I know in these the slides you you mentioned you're still committed to the project. Obviously, we've seen several of your peers either elect to divest or spin some of their midstream assets. Just curious how you're thinking about that project overall.

Michael J. Renna -- President and Chief Executive Officer

I'll take this one Richard. It's Mike. As far as you know, any updates with FARC is as I'm sure you you can imagine purchase very tight lipped with respect to when we might We might get the the final approval for the phasing of the project, we do have the EA in hand, and I would expect us to, to receive the the notice to proceed, I am not anticipating or have I heard that there's any kind of issues from, from a work perspective, you know, on a parallel path, the Solicitor General is reviewing the the case, and will make a recommendation to the Supreme Court. And again, I, you know, we're not getting a lot of direct, you know, kind of indication as to when that that might be. But, you know, we continue to view you know, things things very positively that that tends to be sort of a general kind of feel around things.

As far as our commitment to the project, I think, where, you know, where it differs from some of these other projects is, you know, this, this pipeline has a very and absolute impact on our on our customers, you know, as, as it's in its entirety, right. So phase one, phase two. So I think for, you know, for the utilities in New Jersey, Elizabethtown, New Jersey, natural gas and South Jersey gas, you're talking about being able to afford your customers access to the arguably the cheapest natural gas in the country. And so, more than anything, our commitment is rooted into constantly doing what is best for for our customers, and that is safe, reliable, affordable service.

Richard Ciciarelli -- Bank of America -- Analyst

You Yep, that that makes a ton of sense. That's helpful. Um, and then there's one more if I may just go on to the utility side, as you all begin to gear up for your your filing for the I or for the rider renewals. there any learn lessons from your inside pier with their filing? or How are you guys kind of just thinking about that overall.

Dave Robbins -- South Jersey Industries Inc. -- Senior Vice President

So rich, it's Dave Robin, so I'll take that one. So, you know, as you know, we have a great opportunity in front of us to continue to make investments in our infrastructure. And we all know the benefits of these programs being under riders, we do expect to file the next South Jersey gas accelerated program, probably within the next couple of weeks. You know, certainly, if you were referring to our peers, we certainly saw the New Jersey natural filing. And I think there were certain costs that were removed from that case, but we're talking about an opportunity to, in the name of safety and reliability, make some significant investments into our inventory of pre coated steel and adalet.

So we're still finalizing the number of the filing. You know, given the creation of jobs by these programs, we do expect the regulators to take a really good look, we've had some preliminary discussions. There's lots of support for these programs, particularly in these times as they generate jobs. But we have quite a bit of opportunity to make these safety and reliability investments both at S, jG and etg. But look for an SGI or sjj filing, like I said within the next couple of weeks.

Richard Ciciarelli -- Bank of America -- Analyst

All right, perfect. That's very helpful. That's all I had.

Operator

Thank you. I'm sure no additional questions in the queue. At this time, I'd like to turn the conference back over to Mr. Dan Fidell to close this call.

Dan Fidell -- Vice President-Investor Relations

Well, thank you all very much for joining us this morning. As a reminder, a recording of our call today is going to be available on our website. And as always, please feel free to contact me Dan Vidal for analysts and industry questions, or Marisa traveling for media inquiries. So again, thanks for joining us today and for your continued interest and investment in STI. operator. This concludes our call.

Operator

[Operator Closing Remarks]

Duration: 40 minutes

Call participants:

Dan Fidell -- Vice President-Investor Relations

Michael J. Renna -- President and Chief Executive Officer

Steven R. Cocchi -- Senior Vice President, Chief Financial Officer

Richard Sunderland -- JP Morgan -- Analyst

Dave Robbins -- South Jersey Industries Inc. -- Senior Vice President

Gabe Moreen -- Mizuho -- Analyst

Richard Ciciarelli -- Bank of America -- Analyst

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