As everyone knows by now, on Wednesday the NJDEP rejected PennEast’s 401/404 water quality and wetland permits as being incomplete, and through out their request for an extension for good measure.
The markets noticed, particular those trading around beleaguered New Jersey Resources. Here’s the Wednesday trading day graph for NJR:
The stock peaked intra-day at 41.95 as shown in the graph above.
Around 12:00pm, Politico reported that NJDEP had rejected the PennEast application. You can see the quick downward slide leading from exactly that point.
The close was at 40, by the end of the week it was down to 39.75.
That’s a loss of almost 5% of value in a few hours and nearly 6% for the week.
About $140 million in market cap was shaved off the company.
NJDEP rejecting the PennEast application is what they call a negative surprise and markets don’t like those. And it looks like the market doesn’t believe Pat Kornick “this was all expected” excuse.