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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


EX-99.1 2 ef20027525_ex99-1.htm EXHIBIT 99.1
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
                                
Actual
    
2,135
      
1,937
      
3,543
      
3,480
  
Normal
    
2,436
      
2,457
      
3,970
      
4,004
  
Percent of Normal
    
87.6
%
    
78.8
%
    
89.2
%
    
86.9
%
                                 

NJR Reports Second Quarter Fiscal 2024 Results
Page 13 of 13
 
  
Three Months Ended
    
Six Months Ended
  
(Unaudited)
  
March 31,
    
March 31,
  
(Thousands, except customer, RECs and megawatt)
  
2024
    
2023
    
2024
    
2023
  
CLEAN ENERGY VENTURES
                        
Operating Revenues
                        
SREC sales
  
$
100
    
$
6,237
    
$
26,031
    
$
10,123
  
TREC sales
    
2,257
      
2,085
      
4,660
      
3,287
  
SREC II sales (1)
    
415
      
97
      
662
      
282
  
Solar electricity sales
    
3,696
      
3,067
      
7,350
      
7,649
  
Sunlight Advantage
    
2,857
      
2,920
      
5,917
      
5,857
  
Total Operating Revenues
  
$
9,325
    
$
14,406
    
$
44,620
    
$
27,198
  
Depreciation and Amortization
  
$
6,931
    
$
6,465
    
$
13,853
    
$
12,041
  
Operating (Loss) Income
  
$
(7,679
)
  
$
(5,002
)
  
$
10,644
    
$
(5,323
)
Income Tax (Benefit) Provision
  
$
(1,594
)
  
$
(3,005
)
  
$
1,537
    
$
(4,842
)
Net (Loss) Income
  
$
(5,616
)
  
$
(9,379
)
  
$
4,906
    
$
(12,961
)
Net Financial (Loss) Earnings
  
$
(5,616
)
  
$
(9,379
)
  
$
4,906
    
$
(12,961
)
Solar Renewable Energy Certificates Generated
    
57,635
      
63,313
      
151,205
      
161,775
  
Solar Renewable Energy Certificates Sold
    
714
      
30,745
      
123,153
      
47,557
  
Transition Renewable Energy Certificates Generated
    
15,847
      
12,524
      
32,552
      
20,869
  
Solar Renewable Energy Certificates II Generated
    
4,693
      
1,046
      
7,466
      
2,830
  
Solar Megawatts Under Construction
    
34.2
      
11.2
      
34.2
      
11.2
  
(1)  Prior year SREC II revenue was previously included in Solar electricity sales and other
                                
ENERGY SERVICES
                                
Operating Income
                                
Operating revenues
  
$
144,862
    
$
196,730
    
$
244,530
    
$
518,512
  
Less:
                                
Gas purchases
    
105,634
      
161,114
      
165,800
      
394,401
  
Operation and maintenance expense
    
13,639
      
8,322
      
18,747
      
9,445
  
Depreciation and amortization
    
56
      
62
      
113
      
119
  
Operating Income
  
$
25,533
    
$
27,232
    
$
59,870
    
$
114,547
  
Net Income
  
$
17,028
    
$
19,046
    
$
40,961
    
$
83,607
  
Financial Margin
  
$
65,581
    
$
38,208
    
$
84,589
    
$
110,789
  
Net Financial Earnings
  
$
37,644
    
$
21,125
    
$
45,475
    
$
73,658
  
Gas Sold and Managed (Bcf)
    
38.3
      
40.8
      
68.4
      
85.0
  
STORAGE AND TRANSPORTATION
                                
Operating Revenues
  
$
23,042
    
$
20,887
    
$
46,904
    
$
47,725
  
Equity in Earnings of Affiliates
  
$
85
    
$
977
    
$
1,078
    
$
1,886
  
Operation and Maintenance Expense
  
$
10,563
    
$
7,790
    
$
20,663
    
$
15,264
  
Other Income, Net
  
$
2,473
    
$
1,647
    
$
4,761
    
$
3,014
  
Interest Expense
  
$
5,868
    
$
6,128
    
$
11,801
    
$
12,835
  
Income Tax Provision
  
$
619
    
$
596
    
$
1,651
    
$
2,539
  
Net Income
  
$
1,981
    
$
2,600
    
$
5,621
    
$
8,843
  
Net Financial Earnings
  
$
1,981
    
$
2,450
    
$
5,621
    
$
8,693
  
HOME SERVICES AND OTHER
                                
Operating Revenues
  
$
14,905
    
$
13,448
    
$
29,739
    
$
27,714
  
Operating Income
  
$
778
    
$
1,137
    
$
570
    
$
1,188
  
Net Income (Loss)
  
$
384
    
$
813
    
$
(216
)
  
$
784
  
Net Financial Earnings (Loss)
  
$
384
    
$
813
    
$
(216
)
  
$
784
  
Total Service Contract Customers at Mar 31
    
100,341
      
102,057
      
100,341
      
102,057
  
                                 


EX-99.2 3 ef20027525_ex99-2.htm EXHIBIT 99.2
Exhibit 99.2

 Fiscal 2024 Second Quarter and Year-to-Date Financial Results  May 2024   Investor Presentation 
 

 Forward-Looking Statements and Non-GAAP Measures  Forward-Looking Statements  This presentation 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 presentation include, but are not limited to, certain statements regarding NJR’s NFEPS guidance for fiscal 2024, including NFEPS guidance by Segment and EPS, long term growth targets and guidance range, long term annual growth projections and targets, Capital Plan expectations, projections of dividend and financing activities, customer growth at NJNG, future NJR and NJNG capital expenditures, potential CEV capital projects, project pipeline (under construction, contract or exclusivity) through Fiscal 2028, total expected shareholder return projections, dividend growth, CEV revenue and service projections, our debt repayment schedule, contributions from Leaf River, Steckman Ridge and Adelphia Gateway, SREC Hedging strategies and Asset Management Agreements, the outcome and timing of Base Rate Cases with the BPU, emissions reduction strategies and clean energy goals, environmental social and governance efforts, rising interest rates, 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 presentation 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 Measures  Non-GAAP Measures  This presentation includes the non-GAAP financial measures NFE/net financial loss, NFE per basic share, financial margin, utility gross margin, adjusted funds from operations and adjusted debt. 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.   Adjusted funds from operations is cash flows from operating activities, plus components of working capital, cash paid for interest (net of amounts capitalized), capitalized interest, the incremental change in SAVEGREEN loans, grants, rebates, and related investments, and operating lease expense.  Adjusted debt is total long-term and short-term debt, net of cash and cash equivalents, excluding solar asset financing obligations but including solar contractually committed payments for sale lease-backs, debt issuance costs, and other Fitch credit metric adjustments.  Management uses NFE/net financial loss, utility gross margin, financial margin, adjusted funds from operations and adjusted debt, as supplemental measures to other GAAP results to provide a more complete understanding of the Company’s performance. Management believes these non-GAAP measures are more reflective of the Company’s business model, provide transparency to investors and enable period-to-period comparability of financial performance. In providing NFE guidance, management is aware that there could be differences between reported GAAP earnings and NFE/net financial loss 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. In addition, in making forecasts relating to S&T’s Adjusted EBITDA and adjusted funds from operations and adjusted debt, management is aware that there could be differences between reported GAAP earnings, cash flows from operations and total long-term and short-term debt due to matters such as, but not limited to, the unpredictability and variability of future earnings, working capital and cash positions. Management is not able to reasonably estimate the aggregate impact or significance of these items on reported GAAP measures and therefore is not able to provide a reconciliation to the corresponding GAAP equivalent for such forecasts without unreasonable efforts. NFE/net financial loss, utility gross margin and financial margin are discussed more fully in Item 7 of our Report on Form 10-K and, we have provided presentations of the most directly comparable GAAP financial measure and a reconciliation of our non-GAAP financial measures, NFE/net financial loss, utility gross margin, financial margin, adjusted funds from operations and adjusted debt, to the most directly comparable GAAP financial measures, in the appendix to this presentation. This information has been provided pursuant to the requirements of SEC Regulation G. 
 

 Contents  Fiscal 2024 Second Quarter and Year-to-Date Conference Call  4  Agenda  5  Fiscal 2024 Second Quarter and Year-to-Date Highlights  6   Re-affirms Fiscal 2024 NFEPS Guidance of $2.85 to $3.00  7  NFEPS Guidance by Segment  8  New Jersey Natural Gas  9  NJNG Rate Case Update  10  Clean Energy Ventures (CEV): Pipeline of Investment Opportunities  11  Storage and Transportation (S&T): Organic Growth Initiatives  12  Financial Review  13  Review of Fiscal 2024 Second Quarter and Year-to-Date NFE Changes  14  Capital Plan  15  Projected Cash Flows  16  Investment Grade Profile  17  Debt Repayment Schedule  18  Growth Strategy and Key Highlights  Appendix: Financial Statements and Additional Information – 19  20  Reconciliation of NFE and NFEPS to Net Income  21  Other Reconciliation of Non-GAAP Measures  22  Reconciliation of Adjusted Funds from Operations to Cash Flow from Operations  23  Fiscal 2024 Second Quarter and Year-to-Date NFE and NFEPS by Business Unit  24  CEV: SREC Hedging Strategy Stabilizes Revenue  25  Capital Plan Table  26  NJR: Business Portfolio  27  NJNG: Supportive Regulatory Construct  28  CEV: Overview  29  Energy Services (ES): Overview  30  Dividend Growth: Committed to Building Shareholder Value  31  Environmental, Social and Governance Efforts  32  Shareholder and Contact Information 
 

 1  FY 2024 Q2 and YTD Highlights  Steve Westhoven | President and CEO  2  Financial Highlights  Roberto Bel | SVP and CFO  3  Q&A Session  FY 2024 Second Quarter  Conference Call Agenda  4 
 

 Fiscal 2024 Second Quarter and Year-to-Date Highlights  Executing on our Strategic Plan to Drive Continued, Organic Growth  NJNG  CEV  S&T  Energy  Services  $1.41  Q2 FY 2024 NFEPS1  On January 31st, NJNG filed a base rate case   Current SAVEGREEN energy efficiency programs extended for an additional 180 days.  Filed for next generation of SAVEGREEN energy efficiency offerings   Higher utility gross margin in Q2 2024 / YTD 2024  Increased capacity by ~5MW in fiscal 2024 YTD  Project pipeline of ~874MW   NFEPS contribution in line with expectations  Commenced open season at Leaf River on ~4BCF of additional working capacity to be added over the next year  Derived significant value from pipeline capacity during brief periods of strong demand in an otherwise warmer than historical winter period  A reconciliation from NFE to net income can be found in the Appendix.  $2.15  YTD FY 2024 NFEPS1  Second Quarter NFEPS  YTD NFEPS 
 

 Re-Affirming Fiscal 2024 NFEPS Guidance of $2.85 to $3.00  Net Financial Earnings per Share  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. Initial fiscal 2023 NFEPS guidance was $2.42 - $2.52; initial fiscal 2024 NFEPS guidance was $2.70 - $2.85   Guidance Raised by $0.15 in February 2024; Represents 18.4% Increase from Midpoint of FY 2023 Initial Guidance Range  Guidance Range  $2.85 - $3.00  7-9%  LONG-TERM  ANNUAL GROWTH1  $2.50  $2.70  Outperformance Above Long-Term Growth Rate and Initial Guidance Range1  $2.20 - $2.301  $2.42 - $2.521  Strong energy prices(NJNG, CEV, ES)  Winter Storm Elliot  Large contracted revenues from ES’ AMA and January 2024 weather event   Initial Guidance Range1  Represents the midpoint of NJR's Long-Term Growth Rate  $2.70 - $2.851 
 

 NFEPS Guidance by Segment  Energy Services to Represent a Larger Portion of NFEPS Guidance in 2024; Long-term NJNG Remains the Largest Contributor to NFEPS  Fiscal 2024 NFEPS Guidance  by Segment  New Jersey Natural Gas  40% - 45%  Energy Services  38% - 43%  Home Services  0% - 1%  S&T  3% - 7%  CEV  12% - 17%  Long-term Expected   NFEPS Composition  New Jersey Natural Gas  60% - 70%  Energy Services  6% - 10%  Home Services  0% - 1%  S&T  5% - 10%  CEV  20% - 25%  Energy Services will represent a higher than normal % of NFEPS due to contributions from the AMAs for fiscal year 2024 as well as outperformance in January 2024  NJNG and CEV projected to make up the predominate portion of NJR’s total business mix 
 

 New Jersey Natural Gas (NJNG)  Strong Trend of Favorable Customer Growth  Total change in PP&E (cash spent, capex accrued and AFUDC). Includes SAVEGREEN investments, which for GAAP purposes are included as part of cash flows from operations.   Facilities included in “Other”.   The sum of actual amounts may not equal due to rounding.  ~45% of capital expenditures earning a near real-time return  NJNG Customers  (in thousands)  Fiscal 2024 Capital Expenditures1,2,3  ~$211M  New Carbon Capture Units   NJR President & CEO Steve Westhoven, NJNG COO Pat Migliaccio and CEO & Founder of Clean02 Jaeson Cardiff standing in front of two operational CarbinX units in the mechanical room of NJNG’s Corporate Headquarters 
 

 NJNG: Rate Case Filing  Continued Progress  ($ millions)  Amount  Percent  Embedded Cost  Weighted Cost  Long-Term Debt  $1,573.2  44.6%  4.0%  1.8%  Common Equity  $1,955.7  55.4%  10.4%  5.8%  Total  $3,528.9  100%     7.6%  Link: White Paper with Additional Details on Rate Case Filing  Requested an increase to base rates of $222.6 million   (increase of $158.7 million in operating income)  Proposed rate base of $3.4 billion  Overall Cost of Capital and Rate of Return  As illustrated in the timeline, a rate case by statute in New Jersey is a nine-month process from the filing date to completion; however, 10-12 months is not uncommon.  Administrative Law Judge (ALJ) and New Jersey Board of Public Utilities (BPU).  Expected Base Rate Case Procedural Schedule  January  March  May  September - October  August  ALJ2 & Staff, Company, Rate Counsel Agree on Procedural Schedule  Filed Base Rate Case with the BPU2  Filing of 9+3 Update  Expected Filing of 12+0 Update  Settlement Discussions 
 

 Clean Energy Ventures (CEV): Pipeline of Investment Opportunities  CEV owns and operates solar projects with approximately 474MW of capacity  Total  ~1.3 GW  MWs  Pipeline of ~874MW including projects under construction, contract, or exclusivity   ~474MW of projects in-service  ~49% of pipeline located in NJ  ~51% located outside of NJ  New In-Service in Fiscal 2024  ~5MW 
 

 Storage and Transportation (S&T): Organic Growth Initiatives  Leaf River (storage), Steckman Ridge (storage), and Adelphia Gateway (transportation)  32.2 mmdth high deliverability salt cavern storage facility in southeastern Mississippi  Acquired October 2019  100% owner & operator  Serving Gulf Coast/Southeast the fastest growing natural gas market in North America with a growing reliance on regional supply imports  12.6 mmdth reservoir storage facility in southern PA  Placed in service April 2009  50% ownership interest  Serving the Northeast Region with a high dependence on storage and increasingly constrained pipeline capacity  0.9 mmdth/d interstate pipeline from NE PA to greater Philadelphia area  Acquired January 2020 / Placed in-service September 2022  100% owner & operator  Serving the Northeast region, where the current pipeline grid is constrained  Maximizing capabilities at existing assets as pipeline and storage constraints continue to highlight the benefit of storage and transportation assets  Leaf River Energy Center Capacity Recovery Project     S&T to expand leaching plant facilities   Salt cavern leaching is a process used to regain capacity lost to salt buildup over time   Recently commenced open season on ~4BCF of additional working capacity as part of this expansion 
 

 12  12  Financial Review  Roberto Bel  SVP and Chief Financial Officer 
 

 Review of Fiscal 2024 Second Quarter and Year-to-Date Results  ($ in Millions)  A reconciliation of these non-GAAP measures can be found in the Appendix.  The sum of actual amounts may not equal to total due to rounding.  Fiscal 2Q23 – Consolidated NFE ($ in millions)  $ 112.3   NJNG  $ 6.4   Utility Gross Margin1  $ 8.3   O&M  $ (1.1)  Depreciation & Amortization (D&A)  $ (2.1)  Interest expense, AFUDC, Income Tax  $ 1.3   Clean Energy Ventures  $ 3.8   Revenue  $ (5.1)  D&A and Interest Expense  $ (0.3)  Other (including ITC recognition)  $ 9.2   Storage & Transportation  $ (0.5)  Revenue  $ 2.2   D&A and Interest Expense  $ 0.1   O&M, AFUDC & Other  $ (2.8)  Energy Services  $ 16.5   Financial Margin1  $ 27.4   Interest Expense, Income Tax and Other  $ (10.9)  Home Services and Other  $ 0.1   Fiscal 2Q24 – Consolidated NFE ($ in millions)2  $ 138.6   YTD Fiscal 2023 – Consolidated NFE ($ in millions)  $ 222.6   NJNG  $ 3.2   Utility Gross Margin1  $ 9.4   O&M  $ (6.1)  Depreciation & Amortization (D&A)  $ (4.2)  Interest expense, AFUDC, Income Tax  $ 4.1   Clean Energy Ventures  $ 17.9   Revenue  $ 17.4   D&A and Interest Expense  $ (3.2)  Other (including ITC recognition)  $ 3.7   Storage & Transportation  $ (3.1)  Revenue  $ (0.8)  D&A and Interest Expense  $ 0.6   O&M, AFUDC & Other  $ (2.9)  Energy Services  $ (28.2)  Financial Margin1  $ (26.2)  Interest Expense, Income Tax and Other  $ (2.0)  Home Services and Other  $ (1.4)  YTD Fiscal 2024 – Consolidated NFE ($ in millions)2  $ 211.0  
 

 Capital Plan1,2   Includes SAVEGREEN Investments. Total change in PP&E (cash spent, capex accrued and AFUDC). For GAAP purposes, SAVEGREEN investments are included as part of cash flows from operations.  The sum of actual amounts may not equal due to rounding.  $622  $596  $619 - $754  $578 - $742  ($ in Millions)  Capital plan supports long-term NFEPS growth targets of 7-9%  $435 - $492  $410 - $462  $140 - $204  $44 - $58  $8 - $16  $160 - $264 
 

 FY2023A  YTD FY2024A  FY2024E  FY2025E  Cash Flow from Operations  $479  $339  $450  -  $490  $450  -  $490  Uses of Funds  Capital Expenditures2  $539  $235  $490  -  $580  $495  -  $675  Dividends3  $151  $82  $161  -  $165  $174  -  $178  Total Uses of Funds  $690  $317  $651  -  $745  $669  -  $853  Financing Activities  Common Stock Proceeds – DRIP  $58  $43  $53  -  $55  $17  -  $19  Debt Proceeds /Other  $153  $(65)  $148  -  $200  $202  -  $344  Total Financing Activities  $211  $(21)  $201  -  $255  $219  -  $363  Projected Cash Flows1  ($ in Millions)  The sum of actual amounts may not equal due to rounding.  Excludes accrual for AFUDC and SAVEGREEN investments (for GAAP purposes, SAVEGREEN investments are included in Cash Flow from Operations).  Dividend growth for fiscal 2023 and fiscal 2024 are based upon the midpoint of forecasted 7-9% growth rate. 
 

 Investment Grade Profile  1. Internal estimates based on Fitch Ratings methodology. Ratio represents inverse of FFO-adjusted leverage ratio. A reconciliation from adjusted funds from operations to cash flows from operating activities and adjusted debt to long-term and short-term debt can be found in the Appendix. Adjusted funds from operations is cash flows from operating activities, plus components of working capital, cash paid for interest (net of amounts capitalized), capitalized interest, the incremental change in SAVEGREEN loans, grants, rebates, and related investments, and operating lease expense. Adjusted debt is total long-term and short-term debt, net of cash and cash equivalents, excluding solar asset financing obligations but including solar contractually committed payments for sale lease-backs, debt issuance costs, and other Fitch credit metric adjustments.  NJR Adjusted FFO / Adjusted Debt1  NJNG  (Secured Rating)  NJR  (Unsecured Rating)  NAIC  NAIC-1.E  NAIC-2.A  Moody's  A1 (Stable)  Fitch  A+ (Stable)  Current Credit Ratings  Strong Credit Ratings Supported by Stable Cash Flows  19.0%  17% - 18%  Strong Cash Flows with No Block Equity Needs 
 

 Debt Repayment Schedule  No significant maturity towers in any particular year  Term debt only (excludes short-term debt of $196.2 million, capital leases of $36.0 million and solar financing obligations of $284.2 million).   Term Debt1 Maturity Schedule   as of March 31, 2024 / $ in Millions, unless otherwise noted  No Debt Maturities Remaining in FY2024   Percent of NJR Holding Company Term Debt Maturing in the Next Three Years: <18%  $1.2B  NJR Unsecured Senior Notes  FY Maturity  Principal  3.48%  2025   $100,000   3.54%  2026   $100,000   4.38%  2027   $110,000   3.96%  2028   $100,000   3.29%  2029   $150,000   3.50%  2030   $130,000   3.13%  2031   $120,000   3.60%  2032   $130,000   3.25%  2033   $80,000   6.14%  2033   $50,000   3.64%  2034   $50,000   Total NJR LT Debt   $1,120,000   NJNG First Mortgage Bonds  FY Maturity  Principal  2.82%  2025   $50,000   3.15%  2028   $50,000   5.56%  2033   $50,000   4.37%  2037   $50,000   3.38%  2038   $10,500   2.75%  2039   $9,545   3.00%  2041   $46,500   3.50%  2042   $10,300   3.00%  2043   $41,000   4.61%  2044   $55,000   3.66%  2045   $100,000   3.63%  2046   $125,000   4.01%  2048   $125,000   3.76%  2049   $100,000   3.13%  2050   $50,000   3.13%  2050   $50,000   2.87%  2050   $25,000   2.97%  2052   $50,000   4.71%  2052   $50,000   5.47%  2053   $125,000   5.85%  2054   $50,000   2.45%  2059   $15,000   3.86%  2059   $85,000   3.33%  2060   $25,000   2.97%  2060   $50,000   3.07%  2062   $50,000   Total NJNG LT Debt   $1,447,845   Substantial liquidity at both NJNG and NJR - $900M of credit facilities available through FY2027 
 

 Growth Strategy and Key Highlights  7% - 9%  Long-term expected NFEPS and Dividend Growth  Highest in peer group1  Maximize the value of existing assets through organic growth opportunities to produce “Utility-like” Returns  Thoughtful capital allocation with a defined capital plan of between $1.2 - $1.5 Billion in the next 2 years   Use diversified strategy to deliver   outsized returns for shareholders  11 - 13%  Expected Shareholder Return2  Peer group includes: ATO, AVA, BKH, CMS, CNP, CPK, MDU, NFG, NI, NWE, NWN, OGS, SWX, UGI, UTL.  Expected shareholder return includes projected NFEPS long-term growth rate of 7 – 9% in addition to an annualized dividend yield of 3.8%, based on dividend per share of $1.68 and closing share price of $44.70 on May 3, 2024. 
 

 Appendix:  Financial Statements and Additional Information  19  20  Reconciliation of NFE and NFEPS to Net Income  21  Other Reconciliation of Non-GAAP Measures  22  Reconciliation of Adjusted Funds from Operations to Cash Flow from Operations  23  Fiscal 2024 Second Quarter and Year-to-Date NFE and NFEPS by Business Unit  24  CEV: SREC Hedging Strategy Stabilizes Revenue  25  Capital Plan Table  26  NJR: Business Portfolio  27  NJNG: Supportive Regulatory Construct  28  CEV: Overview  29  Energy Services (ES): Overview  30  Dividend Growth: Committed to Building Shareholder Value  31  Environmental, Social and Governance Efforts  32  Shareholder and Contact Information 
 

 Reconciliation of NFE and NFEPS to Net Income  ($ in 000s)  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.  NFE eliminates the impact of volatility to GAAP earnings associated with unrealized gains and losses on derivative instruments in the current period  (Unaudited)  Three Months Ended  March 31,  Six Months Ended  March 31,  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 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   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  
 

 Other Reconciliation of Non-GAAP Measures  NJNG Utility Gross Margin  NJNG's utility gross margin is defined as operating revenues less natural gas purchases, sales tax, and regulatory rider expenses. This measure differs from gross margin as presented on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization.  Energy Services Financial Margin  Financial margin removes the timing differences associated with certain derivative and hedging transactions. Financial margin differs from gross margin as defined on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization expenses as well as the effects of derivatives instruments on earnings.   (Unaudited)  Three Months Ended  Six Months Ended  March 31,  March 31,  2024  2023  2024  2023  A reconciliation of gross margin, the closest GAAP financial measurement, 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 maintenance1   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 maintenance1   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   A reconciliation of gross margin, the closest GAAP financial measurement, to 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   Operating and maintenance1   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:  Operating and maintenance1   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    Excludes selling, general and administrative expenses  ($ in 000s) 
 

 Reconciliation of Adjusted Funds from Operations to Cash Flow from Operations  Adjusted funds from operations is cash flows from operating activities, plus components of working capital, cash paid for interest (net of amounts capitalized), capitalized interest, the incremental change in SAVEGREEN loans, grants, rebates, and related investments, and operating lease expense  Adjusted debt is total long term and short-term debt, net of cash and cash equivalents, excluding solar asset financing obligations but including solar contractually committed payments for sale lease backs, debt issuance costs, and other Fitch credit metric adjustments  Cash Flow from Operations   $338.6   Add back   Components of working capital   $3.0   Cash paid for interest (net of amounts capitalized)   $60.3   Capitalized Interest   $3.4   SAVEGREEN loans, grants, rebates and related investments   $33.4   Operating cash flows from operating leases   $4.2   Adjusted FFO (Non-GAAP)   $442.9   Long-Term Debt (including current maturities)   $2,874.6   Short-Term Debt   $196.2   Exclude  Cash on Hand   ($5.7)  CEV Sale-Leaseback Debt   ($284.2)  Include  CEV Sale lease-back Contractual Commitments    $215.8   Debt Issuance Costs   $13.4   Operating Lease Debt estimate (8x lease expense)   $40.5   Adjusted Debt (Non-GAAP)   $3,050.6   Adjusted Debt, FY2024   (Millions)  Adjusted Funds from Operations, YTD FY2024  (Millions) 
 

 Fiscal 2024 Q2 and Year-to-Date NFE and NFEPS by Business Unit1  ($ in 000s)   (Thousands)  Three Months Ended March 31,  Six Months Ended March 31,  2024  2023  Change  2024  2023  Change  New Jersey Natural Gas  $107,095  $100,697  $6,398  $158,539  $155,361  $3,178  Clean Energy Ventures  $(5,616)  $(9,379)  $3,763  $4,906  $(12,961)  $17,867  Storage and Transportation  $1,981  $2,450  $(469)  $5,621  $8,693  $(3,072)  Energy Services  $37,644  $21,125  $16,519  $45,475  $73,658  $(28,183)  Home Services and Other  $(2,528)  $(2,583)  $55  $(3,521)  $(2,157)  $(1,364)  Total  $138,576  $112,310  $26,266  $211,020  $222,594  $(11,574)   (Thousands)  Three Months Ended March 31,  Six Months Ended March 31,  2024  2023  Change  2024  2023  Change  New Jersey Natural Gas  $1.10  $1.03  $0.07  $1.62  $1.60  $0.02  Clean Energy Ventures  $(0.06)  $(0.09)  $0.03  $0.05  $(0.13)  $0.18  Storage and Transportation  $0.02  $0.02  $—  $0.06  $0.09  $(0.03)  Energy Services  $0.38  $0.22  $0.16  $0.46  $0.76  $(0.30)  Home Services and Other  $(0.03)  $(0.02)  $(0.01)  $(0.04)  $(0.02)  $(0.02)  Total  $1.41  $1.16  $0.25  $2.15  $2.30  $(0.15)  Net Financial Earnings (NFE)  Net Financial Earnings per Share (NFEPS)  The sum of actual amounts may not equal due to rounding 
 

 CEV: SREC Hedging Strategy Stabilizes Revenue  Based on Energy Year1, as of March 31, 2024  Energy Years run from June 1 of the prior year to May 31 of the respective year; for example, Energy Year 2025 begins on June 1, 2024 and ends on May 31, 2025.  Based on Fiscal Year, as of March 31, 2024  75% hedged through   Fiscal Year 2025  80% hedged through   Fiscal Year 2026  89% hedged through   Energy Year 2025  88% hedged through   Energy Year 2026  Percent Hedged  Average Price  Current Price (EY)  89%  $190  $202  88%  $179  $195  51%  $165  $184  27%  $149  $168  Percent Hedged  Average Price  Current Price (FY)  75%  $190  $199  80%  $178  $191  54%  $165  $179  27%  $149  $162 
 

 Capital Plan Table1,2  ($ in Millions)  Total change in PP&E (cash spent, capex accrued and AFUDC). For GAAP purposes, SAVEGREEN investments are included as part of cash flows from operations.  The sum of actual amounts may not equal due to rounding.     FY2023A  YTD FY2024A  FY2024E  FY2025E  Near Real Time Return?  New Jersey Natural Gas  New Customer  $77  $48  $75  -  $80  $85  -  $90  Yes  IIP  $43  $14  $26  -  $30  $26  -  $30  Yes  SAVEGREEN  $60  $33  $48  -  $52  $48  -  $52  Yes  IT  $61  $30  $60  -  $65  $20  -  $25  System Integrity  $126  $64  $150  -  $170  $150  -  $165  Cost of Removal   $42  $17  $36  -  $40  $36  -  $40  Other  $45  $4  $40  -  $55  $45  -  $60  $454  $211  $435  -  $492  $410  -  $462  Clean Energy Ventures  $110  $35  $140  -  $204  $160  -  $264  Storage and Transportation  Adelphia Gateway  $19  $3  $8  -  $12  $4  -  $8  Leaf River  $12  $16  $36  -  $46  $4  -  $8  $31  $19  $44  -  $58  $8  -  $16  Total  $596  $264  $619  -  $754  $578  -  $742  Actuals  Estimates 
 

 NJR: Business Portfolio  Natural Gas and Renewable Fuel Distribution; Solar Investments, Wholesale Energy Markets; Storage & Transportation Infrastructure; Retail Operations  Operates and maintains Natural Gas transportation and distribution infrastructure serving approximately 582,000 customers in New Jersey  New Jersey Natural Gas  (NJNG)  Clean Energy Ventures  (CEV)  Storage and Transportation  (S&T)  Energy Services  (ES)  New Jersey Resources Home Services  (NJRHS)  CEV develops, invests in, owns and operates energy projects that generate clean power, provide low carbon energy solutions and help our customers save energy and money in a sustainable way  Invests in, owns and operates midstream assets including natural gas pipeline and storage facilities. Our companies provide transportation and storage services to a broad range of customers in the natural gas market  Provides unregulated, wholesale natural gas to consumers across the Gulf Coast, Eastern Seaboard, Southwest, Mid-continent and Canada. In addition to energy supply, NJRES provides a full-range of customized energy management services   NJR Home Services offers customers home comfort solutions, including equipment sales and installations; solar lease and purchase plans; and a service contract product line, including heating, cooling, water heating, electric and standby generator contracts  Demonstrated leadership as a premier energy infrastructure and environmentally-forward thinking company  Recognized as a Top 20 Ruud® National Pro Partner™ for 6 Consecutive Years 
 

 Launched in 2009, SAVEGREEN™ provides energy efficiency solutions that meet the unique needs and budgets of residential and commercial customers — including low- and moderate income, multifamily, hospitals and municipalities.   On December 1, 2023, NJNG filed with the Board of Public Utilities a proposed next generation of SAVEGREEN™ energy-efficiency offerings, its largest filing to date.  The proposal will strengthen NJNG’s existing energy-efficiency offerings and provide comprehensive solutions to help participating customers save energy and reduce carbon emissions, while supporting New Jersey’s ambitious climate goals.   NJNG: Supportive Regulatory Construct  27  Stable Rate Case Results  Rate case results are stable  Current ROE of 9.60% with a common equity ratio of 54%  Full recovery of plant investments to date  Rate cases are settled (generally not litigated)  Resolution of cases have been timely  Last completed case filed in March 2021 and rates effective on December 1, 2021  Decoupled Rates for majority of customers  Volume risk due to weather or energy conservation mitigated through the Conservation Incentive Program (CIP). This decoupling mechanism allows NJNG to earn a fix margin per customer1.  NJNG’s natural gas commodity price is a pass-through cost the Basic Gas Supply Service (BGSS) program  Minimization of Regulatory Lag  Investments in customer growth and Infrastructure Investment Program (IIP) earn real-time recovery or accelerated recovery through annual mechanisms  Through the SAVEGREEN program, energy efficiency investments also have an annual cost recovery mechanism that accelerate recovery of investments and returns  Margin Sharing Incentives  Like other utilities, NJNG contracts for supply and transportation to meet customer needs  NJNG’s BPU-approved “BGSS Incentive Programs” allow temporary release of capacity or supply when not needed  NJNG shares margin generated with customers (85% for customers/15% for NJNG)  BGSS Incentive margin is not counted in NJNG’s ROE calculation for overearning  For residential and small commercial customers, which make the vast majority of NJNG’s customers.  
 

 CEV Overview   Largest Solar Owner-Operator in New Jersey  CEV owns and operates solar projects in New Jersey, Rhode Island, New York, Connecticut, Indiana, and Michigan with approximately 474MW of installed capacity  Over $1.2 billion invested in the solar marketplace to date   A total of ~70 commercial projects in service   Over 10,000 residential solar customers in all of NJ’s 21 counties 
 

 Energy Services (ES): Overview  Managing a Diversified Portfolio of Physical Natural Gas Transportation and Storage Assets to Serve Customers Across North America;  Fee-based Revenue through Asset Management Agreements   Asset Management Agreements  De-risked Energy Services business by securing 10 years of contracted cash payments with minimal counterparty credit risk  Long Option Strategy  Proven track record of success over 28 years, leveraging natural gas market volatility to drive value  Minimal long-term capital commitments and significant cash generation during outperformance years has significantly reduced NJR equity needs  NJR expects to recognize the majority of the fiscal 2024 AMA revenues in the fiscal fourth quarter 
 

 Dividend Growth: Committed to Building Shareholder Value  Strong Track Record of Dividend Growth  $1.68  FY 2024 Dividend   (up 7.7%)  7.4%   DPS CAGR  Dividend History  Dividends per Share  Ex-Dividend Date  Record Date  Payable Date  Amount Per Share  3/12/2024  3/13/2024  4/01/2024  $0.42  12/12/2023  12/13/2023  1/02/2024  $0.42  9/19/2023  9/20/2023  10/02/2023  $0.42*  6/13/2023  6/14/2023  7/03/2023  $0.39  3/14/2023  3/15/2023  4/03/2023  $0.39  12/13/2022  12/14/2022  1/03/2023  $0.39  9/23/2022  9/26/2022  10/03/2022  $0.39  6/14/2022  6/15/2022  7/01/2022  $0.3625  3/15/2022  3/16/2022  4/01/2022  $0.3625  12/14/2021  12/15/2021  1/03/2022  $0.3625  9/17/2021  9/20/2021  10/01/2021  $0.3625  6/15/2021  6/16/2021  7/01/2021  $0.3325  3/16/2021  3/17/2021  4/01/2021  $0.3325  12/15/2020  12/16/2020  1/04/2021  $0.3325  9/21/2020  9/22/2020  10/01/2020  $0.3325  Highlighted Rows Reflect Changes in Quarterly Cash Dividends  * 7.7% increase in the quarterly dividend rate to $1.68 per share from $1.56 per share 
 

 Environmental, Social and Governance Efforts  Focus on Definable Accomplishments   Social  Established $20 million endowment fund for NJR’s charities to support continued community giving long into the future  Robust structure and initiatives to promote DEI at NJR including Executive DEI Council to ensure accountability  Employee-led Business Resource Groups (BRGs) bring together employees with common background to promote engagement and inclusiveness – 25% of NJR workforce belongs to one or more BRGs  Achieved NJ operational emissions reductions over 55% since 2006 with goal of 60% by 2030 and net zero by 2050  One of the largest owner-operators of solar assets in New Jersey, we have invested over $1 billion over the last decade building clean, emissions-free power for homes and businesses  Plans to invest up to $2 million over the next five years through its Coastal Climate Initiative, which has expanded to a multi-faceted environmental stewardship program  Environmental  Our board of directors (Board) has a broad range of skills and industry knowledge, as well as a diversity of perspectives that align with our company’s long-term strategy  The Board is responsible for oversight of NJR’s overall strategy, including all Environmental Social and Governance (ESG) issues  NJR includes sustainability considerations in the performance metrics of our Commitment to Stakeholders. Actual results of these goals and metrics directly impact the compensation of corporate officers year-to-year and ensure accountability  Governance  Fiscal 2024 ESG Reports   January 2024  15th Consecutive Year of our Sustainability Report  FY 2024 Q2  February 2024  Diversity, Equity and Inclusion Report 
 

 The Transfer Agent and Registrar for the company’s common stock is Broadridge Corporate Issuer Solutions, Inc. (Broadridge).  Shareowners with questions about account activity should contact Broadridge investor relations representatives between 9 a.m. and 6 p.m. ET, Monday through Friday, by calling toll-free 800-817-3955.  General written inquiries and address changes may be sent to:  Broadridge Corporate Issuer Solutions  P.O. Box 1342, Brentwood, NY 11717  or  For certified and overnight delivery:  Broadridge Corporate Issuer Solutions, ATTN: IWS   1155 Long Island Avenue, Edgewood, NY 11717  Shareowners can view their account information online at  shareholder.broadridge.com/NJR.   Website: www.njresources.com  Investor Relations: New Jersey Resources Investor Relations  Contact Information  Adam Prior – Director, Investor Relations   732-938-1145  aprior@njresources.com  1415 Wyckoff Road  Wall, NJ 07719  (732) 938-1000  www.njresources.com  Corporate Headquarters  Online Information  Shareholder and Online Information  Stock Transfer Agent and Registrar