UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 7, 2024

NEW JERSEY RESOURCES CORPORATION
(Exact Name of registrant as specified in its charter)

New Jersey
001-08359
22-2376465
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)

1415 Wyckoff Road
   
Wall, New Jersey
 
07719
(Address of Principal Executive Offices)
 
(Zip Code)

(732) 938-1480
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock - $2.50 par value
NJR
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02
Results of Operations and Financial Condition.

On May 7, 2024, New Jersey Resources Corporation (“NJR”) issued a press release reporting financial results for the second fiscal quarter ended March 31, 2024 (the “Press Release”). A copy of the Press Release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The information in Item 2.02 of this Current Report on Form 8-K is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section and shall not be deemed to be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

Item 7.01
Regulation FD Disclosure.

NJR will deliver a presentation via live public webcast on May 7, 2024, at 10 a.m. ET. The slides to be used for the presentation are furnished herewith as Exhibit 99.2 and are incorporated by reference into Item 7.01 of this Current Report on Form 8-K.

The information in Item 7.01 of this Current Report on Form 8-K is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section and shall not be deemed to be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

Item 9.01
Financial Statements and Exhibits.

(d)
Exhibits.

Exhibit Number
 
Exhibit
 
Press Release dated May 7, 2024 (furnished, not filed)
 
Presentation dated May 7, 2024 (furnished, not filed)
104
 
Cover page in Inline XBRL format


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
NEW JERSEY RESOURCES CORPORATION
   
Date: May 7, 2024
By:
/s/ Roberto F. Bel
   
Roberto F. Bel
   
Senior Vice President and Chief Financial Officer




Exhibit 99.1


NEW JERSEY RESOURCES REPORTS FISCAL 2024 SECOND-QUARTER RESULTS

WALL, N.J., May 7, 2024 Today, New Jersey Resources Corporation (NYSE: NJR) reported results for the second quarter of fiscal 2024. Highlights include:

Consolidated net income of $120.8 million, compared with $110.2 million in the second quarter of fiscal 2023
Consolidated net financial earnings (NFE), a non-GAAP financial measure, of $138.6 million, or $1.41 per share, compared to $112.3 million, or $1.16 per share, in the second quarter of fiscal 2023
Re-affirmed fiscal 2024 net financial earnings per share (NFEPS) guidance range of $2.85 to $3.00, which was increased by $0.15 in February 2024 as a result of strong performance from Energy Services
Maintained long-term projected NFEPS growth rate of 7 to 9 percent(1)
On January 31, 2024, New Jersey Natural Gas (NJNG) filed a rate case with the New Jersey Board of Public Utilities (BPU), seeking a $222.6 million increase in delivery rates

Second-quarter fiscal 2024 net income totaled $120.8 million, or $1.23 per share, compared with $110.2 million, or $1.14 per share, for the same period in fiscal 2023. Fiscal 2024 year-to-date net income totaled $210.2 million, or $2.14 per share, compared with $226.2 million, or $2.34 per share, for the same period in fiscal 2023.

Second-quarter fiscal 2024 NFE totaled $138.6 million, or $1.41 per share, compared with $112.3 million, or $1.16 per share, for the same period in fiscal 2023. Fiscal 2024 year-to-date NFE totaled $211.0 million, or $2.15 per share, compared with $222.6 million, or $2.30 per share, for the same period in fiscal 2023.

Management Commentary
Steve Westhoven, President and CEO of New Jersey Resources, stated, "In February, we raised our fiscal 2024 NFEPS guidance range by $0.15 as a result of Energy Services capitalizing on natural gas price volatility at the beginning of our second quarter, and we continued to make solid progress on our organic growth initiatives. These accomplishments reflect the strength of our diversified business model as well as our commitment to delivering value for our shareholders."

Key Performance Metrics
 
   
Three Months Ended
   
Six Months Ended
 
   
March 31,
   
March 31,
 
($ in Thousands)
 
2024
   
2023
   
2024
   
2023
 
Net income
 
$
120,812
   
$
110,247
   
$
210,223
   
$
226,168
 
Basic EPS
 
$
1.23
   
$
1.14
   
$
2.14
   
$
2.34
 
Net financial earnings
 
$
138,576
   
$
112,310
   
$
211,020
   
$
222,594
 
Basic net financial earnings per share
 
$
1.41
   
$
1.16
   
$
2.15
   
$
2.30
 
 
(1) NFEPS long-term annual growth projections are based on the midpoint of the $2.20 - $2.30 initial guidance range for fiscal 2022, provided on February 1, 2021.
 

NJR Reports Second Quarter Fiscal 2024 Results
Page 2 of 13
A reconciliation of net income to NFE for the three and six months ended March 31, 2024 and 2023, is provided below.

   
Three Months Ended
   
Six Months Ended
 
   
March 31,
   
March 31,
 
(Thousands)
 
2024
   
2023
   
2024
   
2023
 
Net income
 
$
120,812
   
$
110,247
   
$
210,223
   
$
226,168
 
Add:
                               
Unrealized loss (gain) on derivative instruments and related transactions
   
25,457
     
13,971
     
20,057
     
(17,532
)
Tax effect
   
(6,049
)
   
(3,320
)
   
(4,767
)
   
4,167
 
Effects of economic hedging related to natural gas inventory
   
(2,845
)
   
(11,203
)
   
(19,073
)
   
12,769
 
Tax effect
   
676
     
2,662
     
4,533
     
(3,035
)
Gain on equity method investment
   
     
(200
)
   
     
(200
)
Tax effect
   
     
50
     
     
50
 
NFE tax adjustment
   
525
     
103
     
47
     
207
 
Net financial earnings
 
$
138,576
   
$
112,310
   
$
211,020
   
$
222,594
 
                                 
Weighted Average Shares Outstanding
                               
Basic
   
98,377
     
96,893
     
98,123
     
96,689
 
Diluted
   
99,102
     
97,556
     
98,839
     
97,346
 
                                 
Basic earnings per share
 
$
1.23
   
$
1.14
   
$
2.14
   
$
2.34
 
Add:
                               
Unrealized loss (gain) on derivative instruments and related transactions
   
0.25
     
0.14
     
0.20
     
(0.18
)
Tax effect
   
(0.06
)
   
(0.03
)
   
(0.05
)
   
0.04
 
Effects of economic hedging related to natural gas inventory
   
(0.03
)
   
(0.12
)
   
(0.19
)
   
0.13
 
Tax effect
   
0.01
     
0.03
     
0.05
     
(0.03
)
NFE tax adjustment
   
0.01
     
     
     
 
Basic net financial earnings per share
 
$
1.41
   
$
1.16
   
$
2.15
   
$
2.30
 

NFE is a measure of earnings based on the elimination of timing differences to effectively match the earnings effects of the economic hedges with the physical sale of natural gas, Solar Renewable Energy Certificates (SRECs) and foreign currency contracts. Consequently, to reconcile net income and NFE, current-period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item. Realized derivative gains and losses are also included in current-period net income. However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the derivatives with realized margins on physical natural gas flows. NFE also excludes certain transactions associated with equity method investments, including impairment charges, which are non-cash charges, and return of capital in excess of the carrying value of our investment. These are not indicative of the Company's performance for its ongoing operations. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE.


NJR Reports Second Quarter Fiscal 2024 Results
Page 3 of 13
A table detailing NFE for the three and six months ended March 31, 2024 and 2023, is provided below.

Net financial earnings (loss) by business unit
 
   
Three Months Ended
   
Six Months Ended
 
   
March 31,
   
March 31,
 
(Thousands)
 
2024
   
2023
   
2024
   
2023
 
New Jersey Natural Gas
 
$
107,095
   
$
100,697
   
$
158,539
   
$
155,361
 
Clean Energy Ventures
   
(5,616
)
   
(9,379
)
   
4,906
     
(12,961
)
Storage and Transportation
   
1,981
     
2,450
     
5,621
     
8,693
 
Energy Services
   
37,644
     
21,125
     
45,475
     
73,658
 
Home Services and Other
   
384
     
813
     
(216
)
   
784
 
Subtotal
   
141,488
     
115,706
     
214,325
     
225,535
 
Eliminations
   
(2,912
)
   
(3,396
)
   
(3,305
)
   
(2,941
)
Total
 
$
138,576
   
$
112,310
   
$
211,020
   
$
222,594
 

Fiscal 2024 NFE Guidance:

NJR re-affirmed its fiscal 2024 NFEPS guidance range of $2.85 to $3.00, which was increased by $0.15 in February 2024, subject to the risks and uncertainties identified below under "Forward-Looking Statements."

In fiscal 2024, NJR expects Energy Services will represent a higher percentage of NFEPS than in prior years due to contributions from the Asset Management Agreements signed in 2020*. The following chart represents NJR’s current expected contributions from its business segments for fiscal 2024:
 
 
Company
Expected Fiscal 2024
Net Financial Earnings
Contribution
 
New Jersey Natural Gas
40 to 45 percent
 
Clean Energy Ventures
12 to 17 percent
 
Storage and Transportation
3 to 7 percent
 
Energy Services
38 to 43 percent*
 
Home Services and Other
0 to 1 percent
* NJR expects to recognize the majority of the fiscal 2024 AMA revenues in the fiscal fourth quarter
                                                                           
In providing fiscal 2024 NFE guidance, management is aware there could be differences between reported GAAP earnings and NFE due to matters such as, but not limited to, the positions of our energy-related derivatives. Management is not able to reasonably estimate the aggregate impact or significance of these items on reported earnings and, therefore, is not able to provide a reconciliation to the corresponding GAAP equivalent for its operating earnings guidance without unreasonable efforts.

New Jersey Natural Gas (NJNG)

NJNG reported second-quarter fiscal 2024 NFE of $107.1 million, compared to NFE of $100.7 million during the same period in fiscal 2023. Fiscal 2024 year-to-date NFE were $158.5 million, compared to NFE of $155.4 million during the same period in fiscal 2023. NJNG reported higher utility gross margin for the second quarter of fiscal 2024, driven by higher contribution from BGSS incentive programs, partially offset by increased depreciation and operating expenses, while year-to-date utility gross margin improved as a result of continued customer growth.


NJR Reports Second Quarter Fiscal 2024 Results
Page 4 of 13
Customer Growth:

NJNG added 4,058 new customers during the first six months of fiscal 2024, compared with 4,064 during the same period of fiscal 2023. NJNG expects these new customers to contribute approximately $3.4 million of incremental utility gross margin on an annualized basis.

Base Rate Filing:

On January 31, 2024, NJNG filed a base rate case with the BPU, seeking a $222.6 million increase to its base
rates. The filing is based on an overall return of 7.57 percent with a return on equity of 10.42 percent. The
proposed increase reflects a 55.42 percent common equity component.

Infrastructure Update:

NJNG's Infrastructure Investment Program (IIP) is a five-year, $150 million accelerated recovery program that began in fiscal 2021. IIP consists of a series of infrastructure projects designed to enhance the safety and reliability of NJNG's natural gas distribution system. During the first six months of fiscal 2024, NJNG spent $13.7 million under the program on various distribution system reinforcement projects.

On March 28, 2024, NJNG submitted its annual IIP filing to the BPU requesting a rate increase for capital expenditures of $43.5 million through June 30, 2024, which will result in a $5.6 million revenue increase, with a proposed effective date of October 1, 2024.

Basic Gas Supply Service (BGSS) Incentive Programs:

BGSS incentive programs contributed $7.9 million to utility gross margin in the second quarter of fiscal 2024, compared with $5.8 million during the same period of fiscal 2023. This increase for the second quarter was due primarily to higher margins from off-system sales. During the first six months of fiscal 2024, these programs contributed $13.3 million to utility gross margin, compared with $14.5 million during the same period in fiscal 2023.

For more information on utility gross margin, please see "Non-GAAP Financial Information" below.

Energy-Efficiency Programs:

SAVEGREEN™ invested $33.4 million year-to-date in fiscal 2024 in energy-efficiency upgrades for customers' homes and businesses. NJNG recovered $15.1 million of its outstanding investments during the first six months of fiscal 2024 through its energy efficiency rate.


Clean Energy Ventures (CEV)

CEV reported second-quarter fiscal 2024 net financial loss of $(5.6) million, compared with a net financial loss of $(9.4) million during the same period in fiscal 2023. The decrease in net financial loss for the second quarter of fiscal 2024 was largely due to the recognition of Investment Tax Credits associated with solar sale leaseback financing transactions. Fiscal 2024 year-to-date NFE was $4.9 million, compared with a net financial loss of $(13.0) million during the same period in fiscal 2023. The increase in fiscal 2024 year-to-date NFE was due primarily to higher SREC and TREC revenue for the period.

Solar Investment Update:

As of March 31, 2024, CEV had approximately 474MW of solar capacity in service in New Jersey, New York, Connecticut, Rhode Island, Indiana, and Michigan.


NJR Reports Second Quarter Fiscal 2024 Results
Page 5 of 13
Storage and Transportation

Storage and Transportation reported second-quarter fiscal 2024 NFE of $2.0 million, compared with NFE of $2.4 million during the same period in fiscal 2023. Fiscal 2024 year-to-date NFE were $5.6 million, compared with NFE of $8.7 million during the same period in fiscal 2023. NFE for the second quarter of fiscal 2024 remained largely flat when compared to the prior year, while the year-to-date decrease in NFE was largely due to higher operating revenues in the prior year period.

Energy Services

Energy Services reported second-quarter fiscal 2024 NFE of $37.6 million compared with NFE of $21.1 million for the same period in fiscal 2023. The increase in the second quarter of fiscal 2024 was due to higher natural gas price volatility in January, allowing Energy Services to capture additional financial margin. Fiscal 2024 year-to-date NFE were $45.5 million, compared with NFE of $73.7 million during the same period in fiscal 2023. The decrease in fiscal 2024 year-to-date NFE was due primarily to higher natural gas price volatility in the prior year period, largely as a result of Winter Storm Elliott.

Home Services and Other Operations

Home Services and Other Operations reported second-quarter fiscal 2024 NFE of $0.4 million, compared to NFE of $0.8 million for the same period in fiscal 2023. Fiscal 2024 year-to-date net financial loss was $(0.2) million, compared with NFE of $0.8 million during the same period in fiscal 2023.

Capital Expenditures and Cash Flows:

NJR is committed to maintaining a strong financial profile:

During the first six months of fiscal 2024, capital expenditures were $232.6 million, including accruals, compared with $253.7 million during the same period of fiscal 2023. The decrease in capital expenditures was primarily due to lower solar capital expenditures during the period as a result of the timing of several projects being placed into service in the prior year.

During the first six months of fiscal 2024, cash flows from operations were $338.6 million, which was largely consistent with cash flows from operations of $343.1 million during the same period of fiscal 2023.


NJR Reports Second Quarter Fiscal 2024 Results
Page 6 of 13
Forward-Looking Statements:
This earnings release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. NJR cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJR’s ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants. Words such as “anticipates,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “believes,” “should” and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management’s current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon NJR. There can be no assurance that future developments will be in accordance with management’s expectations, assumptions and beliefs or that the effect of future developments on NJR will be those anticipated by management. Forward-looking statements in this earnings release include, but are not limited to, certain statements regarding NJR’s NFEPS guidance for fiscal 2024, projected NFEPS growth rates and our guidance range, NFEPS Contributions, forecasted contribution of business segments to NJR’s NFE for fiscal 2024, customer growth at NJNG and their expected contributions, expected contributions from Asset Management Agreements, infrastructure programs and investments, future decarbonization opportunities including IIP, Energy Efficiency programs, including BGSS, the outcome or timing of our Base Rate Case with the BPU, and other legal and regulatory expectations.

Additional information and factors that could cause actual results to differ materially from NJR’s expectations are contained in NJR’s filings with the SEC, including NJR’s Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC’s web site, http://www.sec.gov. Information included in this earnings release is representative as of today only and while NJR periodically reassesses material trends and uncertainties affecting NJR's results of operations and financial condition in connection with its preparation of management's discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, 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.

Non-GAAP Financial Information:

This earnings release includes the non-GAAP financial measures NFE/net financial loss, NFE per basic share, financial margin and utility gross margin. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. As an indicator of NJR’s operating performance, these measures should not be considered an alternative to, or more meaningful than, net income or operating revenues as determined in accordance with GAAP. This information has been provided pursuant to the requirements of SEC Regulation G.

NFE and financial margin exclude unrealized gains or losses on derivative instruments related to NJR’s unregulated subsidiaries and certain realized gains and losses on derivative instruments related to natural gas that has been placed into storage at Energy Services, net of applicable tax adjustments as described below. Financial margin also differs from gross margin as defined on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization as well as the effects of derivatives as discussed above. Volatility associated with the change in value of these financial instruments and physical commodity reported on the income statement in the current period. In order to manage its business, NJR views its results without the impacts of the unrealized gains and losses, and certain realized gains and losses, caused by changes in value of these financial instruments and physical commodity contracts prior to the completion of the planned transaction because it shows changes in value currently instead of when the planned transaction ultimately is settled. An annual estimated effective tax rate is calculated for NFE purposes and any necessary quarterly tax adjustment is applied to NJR Energy Services Company.

NJNG’s utility gross margin is defined as operating revenues less natural gas purchases, sales tax, and regulatory rider expense. This measure differs from gross margin as presented on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization. Utility gross margin may also not be comparable to the definition of gross margin used by others in the natural gas distribution business and other industries. Management believes that utility gross margin provides a meaningful basis for evaluating utility operations since natural gas costs, sales tax and regulatory rider expenses are included in operating revenues and passed through to customers and, therefore, have no effect on utility gross margin.


NJR Reports Second Quarter Fiscal 2024 Results
Page 7 of 13
Management uses these non-GAAP financial measures as supplemental measures to other GAAP results to provide a more complete understanding of NJR’s performance. Management believes these non-GAAP financial measures are more reflective of NJR’s business model, provide transparency to investors and enable period-to-period comparability of financial performance. A reconciliation of all non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. For a full discussion of NJR’s non-GAAP financial measures, please see NJR’s most recent Report on Form 10-K, Item 7.

About New Jersey Resources

New Jersey Resources (NYSE: NJR) is a Fortune 1000 company that, through its subsidiaries, provides safe and reliable natural gas and clean energy services, including transportation, distribution, asset management and home services. NJR is composed of five primary businesses:

New Jersey Natural Gas, NJR’s principal subsidiary, operates and maintains natural gas transportation and distribution infrastructure to serve approximately 582,000 customers in New Jersey’s Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington counties.

Clean Energy Ventures invests in, owns and operates solar projects with a total capacity of approximately 474 megawatts, providing residential and commercial customers with low-carbon solutions.

Energy Services manages a diversified portfolio of natural gas transportation and storage assets and provides physical natural gas services and customized energy solutions to its customers across North America.

Storage and Transportation serves customers from local distributors and producers to electric generators and wholesale marketers through its ownership of Leaf River and the Adelphia Gateway Pipeline, as well as our 50% equity ownership in the Steckman Ridge natural gas storage facility.

Home Services provides service contracts as well as heating, central air conditioning, water heaters, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey.

NJR and its over 1,300 employees are committed to helping customers save energy and money by promoting conservation and encouraging efficiency through Conserve to Preserve® and initiatives such as The SAVEGREEN Project® and The Sunlight Advantage®.

For more information about NJR:
www.njresources.com.

Follow us on X.com (Twitter) @NJNaturalGas.
“Like” us on facebook.com/NewJerseyNaturalGas.


NJR Reports Second Quarter Fiscal 2024 Results
Page 8 of 13
NEW JERSEY RESOURCES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

   
Three Months Ended
   
Six Months Ended
 
   
March 31,
   
March 31,
 
(Thousands, except per share data)
 
2024
   
2023
   
2024
   
2023
 
OPERATING REVENUES
                       
Utility
 
$
462,863
   
$
400,500
   
$
755,956
   
$
757,909
 
Nonutility
   
195,050
     
243,527
     
369,167
     
609,685
 
Total operating revenues
   
657,913
     
644,027
     
1,125,123
     
1,367,594
 
OPERATING EXPENSES
                               
Gas purchases
                               
Utility
   
204,347
     
156,370
     
320,467
     
338,816
 
Nonutility
   
105,018
     
160,364
     
164,495
     
392,434
 
Related parties
   
1,799
     
1,770
     
3,678
     
3,597
 
Operation and maintenance
   
107,223
     
99,095
     
201,662
     
178,596
 
Regulatory rider expenses
   
29,229
     
23,154
     
48,418
     
41,405
 
Depreciation and amortization
   
40,075
     
38,090
     
80,362
     
74,773
 
Total operating expenses
   
487,691
     
478,843
     
819,082
     
1,029,621
 
OPERATING INCOME
   
170,222
     
165,184
     
306,041
     
337,973
 
Other income, net
   
15,420
     
4,779
     
21,761
     
9,434
 
Interest expense, net of capitalized interest
   
31,621
     
30,261
     
63,094
     
59,752
 
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES
   
154,021
     
139,702
     
264,708
     
287,655
 
Income tax provision
   
33,947
     
30,586
     
56,883
     
63,564
 
Equity in earnings of affiliates
   
738
     
1,131
     
2,398
     
2,077
 
NET INCOME
 
$
120,812
   
$
110,247
   
$
210,223
   
$
226,168
 
                                 
EARNINGS PER COMMON SHARE
                               
Basic
 
$
1.23
   
$
1.14
   
$
2.14
   
$
2.34
 
Diluted
 
$
1.22
   
$
1.13
   
$
2.13
   
$
2.32
 
                                 
WEIGHTED AVERAGE SHARES OUTSTANDING
                               
Basic
   
98,377
     
96,893
     
98,123
     
96,689
 
Diluted
   
99,102
     
97,556
     
98,839
     
97,346
 


NJR Reports Second Quarter Fiscal 2024 Results
Page 9 of 13
RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES
(Unaudited)

   
Three Months Ended
   
Six Months Ended
 
   
March 31,
   
March 31,
 
(Thousands)
 
2024
   
2023
   
2024
   
2023
 
NEW JERSEY RESOURCES
             
   
A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:
 
                         
Net income
 
$
120,812
   
$
110,247
   
$
210,223
   
$
226,168
 
Add:
                               
Unrealized (gain) loss on derivative instruments and related transactions
   
25,457
     
13,971
     
20,057
     
(17,532
)
Tax effect
   
(6,049
)
   
(3,320
)
   
(4,767
)
   
4,167
 
Effects of economic hedging related to natural gas inventory
   
(2,845
)
   
(11,203
)
   
(19,073
)
   
12,769
 
Tax effect
   
676
     
2,662
     
4,533
     
(3,035
)
Gain on equity method investment
   
     
(200
)
   
     
(200
)
Tax effect
   
     
50
     
     
50
 
NFE tax adjustment
   
525
     
103
     
47
     
207
 
Net financial earnings
 
$
138,576
   
$
112,310
   
$
211,020
   
$
222,594
 
                                 
Weighted Average Shares Outstanding
                               
Basic
   
98,377
     
96,893
     
98,123
     
96,689
 
Diluted
   
99,102
     
97,556
     
98,839
     
97,346
 
                                 
A reconciliation of basic earnings per share, the closest GAAP financial measure, to basic net financial earnings per share is as follows:
 
                                 
Basic earnings per share
 
$
1.23
   
$
1.14
   
$
2.14
   
$
2.34
 
Add:
                               
Unrealized (gain) loss on derivative instruments and related transactions
 
$
0.25
   
$
0.14
   
$
0.20
   
$
(0.18
)
Tax effect
 
$
(0.06
)
 
$
(0.03
)
 
$
(0.05
)
 
$
0.04
 
Effects of economic hedging related to natural gas inventory
 
$
(0.03
)
 
$
(0.12
)
 
$
(0.19
)
 
$
0.13
 
Tax effect
 
$
0.01
   
$
0.03
   
$
0.05
   
$
(0.03
)
NFE tax adjustment
 
$
0.01
   
$
   
$
   
$
 
Basic net financial earnings per share
 
$
1.41
   
$
1.16
   
$
2.15
   
$
2.30
 
                                 
NATURAL GAS DISTRIBUTION
                 
 
                               
A reconciliation of gross margin, the closest GAAP financial measure, to utility gross margin is as follows:
 
                                 
Operating revenues
 
$
463,201
   
$
400,838
   
$
756,631
   
$
758,584
 
Less:
                               
Natural gas purchases
   
206,675
     
158,694
     
325,119
     
343,465
 
Operating and maintenance (1)
   
29,558
     
30,711
     
55,341
     
57,005
 
Regulatory rider expense
   
29,229
     
23,154
     
48,418
     
41,405
 
Depreciation and amortization
   
27,464
     
25,319
     
54,381
     
50,209
 
Gross margin
   
170,275
     
162,960
     
273,372
     
266,500
 
Add:
                               
Operating and maintenance (1)
   
29,558
     
30,711
     
55,341
     
57,005
 
Depreciation and amortization
   
27,464
     
25,319
     
54,381
     
50,209
 
Utility gross margin
 
$
227,297
   
$
218,990
   
$
383,094
   
$
373,714
 
(1) Excludes selling, general and administrative expenses of $30.0 million and $27.8 million for the three months ended March 31, 2024 and 2023, respectively, and $58.9 million and $51.2 million for the six months ended March 31, 2024 and 2023, respectively.


NJR Reports Second Quarter Fiscal 2024 Results
Page 10 of 13
RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (continued)
(Unaudited)
   
Three Months Ended
   
Six Months Ended
 
   
March 31,
   
March 31,
 
(Thousands)
 
2024
   
2023
   
2024
   
2023
 
ENERGY SERVICES
                       
                         
A reconciliation of gross margin, the closest GAAP financial measure, to Energy Services' financial margin is as follows:
 
                         
Operating revenues
 
$
144,862
   
$
196,730
   
$
244,530
   
$
518,512
 
Less:
                               
Natural Gas purchases
   
105,634
     
161,114
     
165,800
     
394,401
 
Operation and maintenance (1)
   
13,102
     
7,668
     
17,791
     
11,123
 
Depreciation and amortization
   
56
     
62
     
113
     
119
 
Gross margin
   
26,070
     
27,886
     
60,826
     
112,869
 
Add:
                               
Operation and maintenance (1)
   
13,102
     
7,668
     
17,791
     
11,123
 
Depreciation and amortization
   
56
     
62
     
113
     
119
 
Unrealized (gain) loss on derivative instruments and related transactions
   
29,198
     
13,795
     
24,932
     
(26,091
)
Effects of economic hedging related to natural gas inventory
   
(2,845
)
   
(11,203
)
   
(19,073
)
   
12,769
 
Financial margin
 
$
65,581
   
$
38,208
   
$
84,589
   
$
110,789
 
(1) Excludes selling, general and administrative expenses of $0.5 million and $0.7 million for the three months ended March 31, 2024 and 2023, respectively, and $1.0 million and $(1.7) million for the six months ended March 31, 2024 and 2023, respectively.

A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:

Net income
 
$
17,028
   
$
19,046
   
$
40,961
   
$
83,607
 
Add:
                               
Unrealized (gain) loss on derivative instruments and related transactions
   
29,198
     
13,795
     
24,932
     
(26,091
)
Tax effect
   
(6,938
)
   
(3,278
)
   
(5,925
)
   
6,201
 
Effects of economic hedging related to natural gas
   
(2,845
)
   
(11,203
)
   
(19,073
)
   
12,769
 
Tax effect
   
676
     
2,662
     
4,533
     
(3,035
)
NFE tax adjustment
   
525
     
103
     
47
     
207
 
Net financial earnings
 
$
37,644
   
$
21,125
   
$
45,475
   
$
73,658
 
                                 


NJR Reports Second Quarter Fiscal 2024 Results
Page 11 of 13
FINANCIAL STATISTICS BY BUSINESS UNIT
(Unaudited)
   
Three Months Ended
   
Six Months Ended
 
   
March 31,
   
March 31,
 
(Thousands, except per share data)
 
2024
   
2023
   
2024
   
2023
 
NEW JERSEY RESOURCES
                       
                         
Operating Revenues
                       
Natural Gas Distribution
 
$
463,201
   
$
400,838
   
$
756,631
   
$
758,584
 
Clean Energy Ventures
   
9,325
     
14,406
     
44,620
     
27,198
 
Energy Services
   
144,862
     
196,730
     
244,530
     
518,512
 
Storage and Transportation
   
23,042
     
20,887
     
46,904
     
47,725
 
Home Services and Other
   
14,905
     
13,448
     
29,739
     
27,714
 
Sub-total
   
655,335
     
646,309
     
1,122,424
     
1,379,733
 
Eliminations
   
2,578
     
(2,282
)
   
2,699
     
(12,139
)
Total
 
$
657,913
   
$
644,027
   
$
1,125,123
   
$
1,367,594
 
                                 
                                 
Operating Income (Loss)
                               
Natural Gas Distribution
 
$
140,279
   
$
135,196
   
$
214,454
   
$
215,309
 
Clean Energy Ventures
   
(7,679
)
   
(5,002
)
   
10,644
     
(5,323
)
Energy Services
   
25,533
     
27,232
     
59,870
     
114,547
 
Storage and Transportation
   
5,910
     
6,700
     
13,234
     
19,317
 
Home Services and Other
   
778
     
1,137
     
570
     
1,188
 
Sub-total
   
164,821
     
165,263
     
298,772
     
345,038
 
Eliminations
   
5,401
     
(79
)
   
7,269
     
(7,065
)
Total
 
$
170,222
   
$
165,184
   
$
306,041
   
$
337,973
 
                                 
                                 
Equity in Earnings of Affiliates
                               
Storage and Transportation
 
$
85
   
$
977
   
$
1,078
   
$
1,886
 
Eliminations
   
653
     
154
     
1,320
     
191
 
Total
 
$
738
   
$
1,131
   
$
2,398
   
$
2,077
 
                                 
                                 
Net Income (Loss)
                               
Natural Gas Distribution
 
$
107,095
   
$
100,697
   
$
158,539
   
$
155,361
 
Clean Energy Ventures
   
(5,616
)
   
(9,379
)
   
4,906
     
(12,961
)
Energy Services
   
17,028
     
19,046
     
40,961
     
83,607
 
Storage and Transportation
   
1,981
     
2,600
     
5,621
     
8,843
 
Home Services and Other
   
384
     
813
     
(216
)
   
784
 
Sub-total
   
120,872
     
113,777
     
209,811
     
235,634
 
Eliminations
   
(60
)
   
(3,530
)
   
412
     
(9,466
)
Total
 
$
120,812
   
$
110,247
   
$
210,223
   
$
226,168
 
                                 
                                 
Net Financial Earnings (Loss)
                               
Natural Gas Distribution
 
$
107,095
   
$
100,697
   
$
158,539
   
$
155,361
 
Clean Energy Ventures
   
(5,616
)
   
(9,379
)
   
4,906
     
(12,961
)
Energy Services
   
37,644
     
21,125
     
45,475
     
73,658
 
Storage and Transportation
   
1,981
     
2,450
     
5,621
     
8,693
 
Home Services and Other
   
384
     
813
     
(216
)
   
784
 
Sub-total
   
141,488
     
115,706
     
214,325
     
225,535
 
Eliminations
   
(2,912
)
   
(3,396
)
   
(3,305
)
   
(2,941
)
Total
 
$
138,576
   
$
112,310
   
$
211,020
   
$
222,594
 
                                 
                                 
Throughput (Bcf)
                               
NJNG, Core Customers
   
32.9
     
30.8
     
56.3
     
55.8
 
NJNG, Off System/Capacity Management
   
37.1
     
20.7
     
64.3
     
38.6
 
Energy Services Fuel Mgmt. and Wholesale Sales
   
38.3
     
40.8
     
68.4
     
85.0
 
Total
   
108.3
     
92.3
     
189.0
     
179.4
 
                                 
                                 
Common Stock Data
                               
Yield at March 31,
   
3.9
%
   
2.9
%
   
3.9
%
   
2.9
%
Market Price at March 31,
 
$
42.91
   
$
53.20
   
$
42.91
   
$
53.20
 
Shares Out. at March 31,
   
98,745
     
96,901
     
98,745
     
96,901
 
Market Cap. at March 31,
 
$
4,237,144
   
$
5,155,153
   
$
4,237,144
   
$
5,155,153
 
                                 


NJR Reports Second Quarter Fiscal 2024 Results
Page 12 of 13
   
Three Months Ended
   
Six Months Ended
 
(Unaudited)
 
March 31,
   
March 31,
 
(Thousands, except customer and weather data)
 
2024
   
2023
   
2024
   
2023
 
NATURAL GAS DISTRIBUTION
                       
                         
Utility Gross Margin
                       
Operating revenues
 
$
463,201
   
$
400,838
   
$
756,631
   
$
758,584
 
Less:
                               
Natural gas purchases
   
206,675
     
158,694
     
325,119
     
343,465
 
Operating and maintenance (1)
   
29,558
     
30,711
     
55,341
     
57,005
 
Regulatory rider expense
   
29,229
     
23,154
     
48,418
     
41,405
 
Depreciation and amortization
   
27,464
     
25,319
     
54,381
     
50,209
 
Gross margin
   
170,275
     
162,960
     
273,372
     
266,500
 
Add:
                               
Operating and maintenance (1)
   
29,558
     
30,711
     
55,341
     
57,005
 
Depreciation and amortization
   
27,464
     
25,319
     
54,381
     
50,209
 
Total Utility Gross Margin
 
$
227,297
   
$
218,990
   
$
383,094
   
$
373,714
 
(1) Excludes selling, general and administrative expenses of $30.0 million and $27.8 million for the six months ended March 31, 2024 and 2023, respectively, and $58.9 million and $51.2 million for the six months ended March 31, 2024 and 2023, respectively.

Utility Gross Margin, Operating Income and Net Income
                               
Residential
 
$
163,495
   
$
157,276
   
$
271,532
   
$
261,294
 
Commercial, Industrial & Other
   
28,676
     
30,066
     
49,507
     
50,845
 
Firm Transportation
   
26,490
     
25,208
     
47,254
     
45,688
 
Total Firm Margin
   
218,661
     
212,550
     
368,293
     
357,827
 
Interruptible
   
750
     
662
     
1,534
     
1,423
 
Total System Margin
   
219,411
     
213,212
     
369,827
     
359,250
 
Basic Gas Supply Service Incentive
   
7,886
     
5,778
     
13,267
     
14,464
 
Total Utility Gross Margin
   
227,297
     
218,990
     
383,094
     
373,714
 
Operation and maintenance expense
   
59,554
     
58,475
     
114,259
     
108,196
 
Depreciation and amortization
   
27,464
     
25,319
     
54,381
     
50,209
 
Operating Income
 
$
140,279
   
$
135,196
   
$
214,454
   
$
215,309
 
 
                               
Net Income
 
$
107,095
   
$
100,697
   
$
158,539
   
$
155,361
 
 
                               
Net Financial Earnings
 
$
107,095
   
$
100,697
   
$
158,539
   
$
155,361
 
                                 
Throughput (Bcf)
                               
Residential
   
21.0
     
19.5
     
34.9
     
34.2
 
Commercial, Industrial & Other
   
3.9
     
3.8
     
6.5
     
6.5
 
Firm Transportation
   
4.7
     
4.5
     
8.3
     
8.5
 
Total Firm Throughput
   
29.6
     
27.8
     
49.7
     
49.2
 
Interruptible
   
3.3
     
3.0
     
6.6
     
6.6
 
Total System Throughput
   
32.9
     
30.8
     
56.3
     
55.8
 
Off System/Capacity Management
   
37.1
     
20.7
     
64.3
     
38.6
 
Total Throughput
   
70.0
     
51.5
     
120.6
     
94.4
 
                                 
Customers
                               
Residential
   
525,391
     
516,453
     
525,391
     
516,453
 
Commercial, Industrial & Other
   
33,108
     
33,160
     
33,108
     
33,160
 
Firm Transportation
   
22,992
     
24,777
     
22,992
     
24,777
 
Total Firm Customers
   
581,491
     
574,390
     
581,491
     
574,390
 
Interruptible
   
83
     
87
     
83
     
87
 
Total System Customers
   
581,574
     
574,477
     
581,574
     
574,477
 
Off System/Capacity Management*
   
26
     
23
     
26
     
23
 
Total Customers
   
581,600
     
574,500
     
581,600
     
574,500
 
*The number of customers represents those active during the last month of the period.
                 
Degree Days