New Jersey Resources Reports Fiscal 2024 Fourth-Quarter and Year-End Results

New Jersey Resources Reports Fiscal 2024 Fourth-Quarter and Year-End Results

WALL, N.J.–(BUSINESS WIRE)–
Today, New Jersey Resources Corporation (NYSE: NJR) reported results for the fiscal 2024 fourth quarter and year-ended September 30, 2024. Financial highlights include:

Fiscal 2024 consolidated net income of $289.8 million, or $2.94 per share, compared with net income of $264.7 million, or $2.73 per share, in fiscal 2023
Consolidated net financial earnings (NFE), a non-GAAP financial measure, of $290.8 million, or $2.95 per share, in fiscal 2024, compared to NFE of $261.8 million, or $2.70 per share, in fiscal 2023
Achieved higher end of fiscal 2024 net financial earnings per share (NFEPS) guidance range of $2.85 to $3.00, which was increased in February 2024
Fiscal 2024 fourth-quarter net income totaled $91.1 million, or $0.92 per share, compared with net income of $37.0 million, or $0.38 per share, for the same period in fiscal 2023. The increase was largely due to higher operating revenue at Energy Services as a result of the Asset Management Agreements (AMAs) signed in December 2020
Fiscal 2024 fourth-quarter NFE totaled $88.7 million, or $0.89 per share, compared with $29.6 million, or $0.30 per share, for the same period in fiscal 2023

Regulatory and Operating Highlights

New Jersey Natural Gas (NJNG) received approval from the New Jersey Board of Public Utilities (BPU) on the settlement of its base rate case, authorizing a $157.0 million increase to its base rates
NJNG received approval from the BPU for the next generation of SAVEGREEN®, a new $385.6 million energy efficiency program that begins on January 1, 2025 and continues through June 30, 2027
In November 2024, Clean Energy Ventures (CEV) announced the sale of its 91 megawatt (MW) residential solar portfolio for a total of $132.5 million
On September 30, 2024, Adelphia Gateway, LLC (Adelphia) filed a general Section 4 rate case with the Federal Energy Regulatory Commission (FERC). Adelphia anticipates that FERC will allow it to place the rates into effect during the second half of 2025, subject to refund and the outcome of a hearing to be established by FERC

Fiscal 2025 Outlook

Maintains 7 to 9 percent long-term NFEPS growth target, and after multiple years of outperformance is rebasing this target off $2.83 per share for fiscal 2025, consistent with our previously communicated guidance¹
Introduces fiscal 2025 NFEPS guidance range of $3.05 to $3.20, which is higher than the range implied by our long-term NFEPS growth target as a result of the one-time gain from the sale of NJR’s residential solar portfolio
Increased fiscal 2025 dividend by 7.1 percent to $1.80 per share

Management Commentary

Steve Westhoven, President and CEO of New Jersey Resources, stated, “Fiscal 2024 was an excellent year for NJR, with solid financial performance across all business segments. We achieved NFEPS at the higher end of our guidance, which was raised in February. This marks the fourth consecutive year of exceeding our 7 to 9 percent stated NFEPS growth rate. We advanced our strategic objectives by settling our base rate case and the largest energy efficiency program in NJNG’s history, while making key investments to position us for continued long-term success.”

The starting point for our previously communicated long-term growth guidance was the midpoint of our FY 2022 initial NFEPS guidance of $2.20 – $2.30. This compounded for three years using the midpoint of our NFEPS 7 to 9 percent long-term annual growth projections is $2.83

Performance Metrics

	Three Months Ended				Twelve Months Ended
	September 30,				September 30,
($ in Thousands)		2024		2023		2024		2023
Net income	$	91,126	$	37,024	$	289,775	$	264,724
Basic EPS	$	0.92	$	0.38	$	2.94	$	2.73
Net financial earnings	$	88,707	$	29,563	$	290,828	$	261,827
Basic net financial earnings per share	$	0.89	$	0.30	$	2.95	$	2.70

A reconciliation of net income to NFE for the three and twelve months ended September 30, 2024 and 2023, is provided below.

	Three Months Ended						Twelve Months Ended
	September 30,						September 30,
(Thousands)		2024			2023			2024			2023
Net income	$	91,126		$	37,024		$	289,775		$	264,724
Add:
Unrealized (gain) loss on derivative instruments and related transactions		(4,286	)		(7,579	)		19,574			(38,081	)
Tax effect		1,018			1,800			(4,652	)		9,050
Effects of economic hedging related to natural gas inventory		1,266			(2,186	)		(18,192	)		34,699
Tax effect		(301	)		520			4,323			(8,246	)
Gain on equity method investment		—			—			—			(300	)
Tax effect		—			(93	)		—			(19	)
NFE tax adjustment		(116	)		77			—			—
Net financial earnings	$	88,707		$	29,563		$	290,828		$	261,827

Weighted Average Shares Outstanding
Basic		99,308			97,568			98,634			97,028
Diluted		99,964			98,192			99,289			97,627

Basic earnings per share	$	0.92		$	0.38		$	2.94		$	2.73
Add:
Unrealized (gain) loss on derivative instruments and related transactions		(0.04	)		(0.08	)		0.20			(0.39	)
Tax effect		—			0.02			(0.05	)		0.09
Effects of economic hedging related to natural gas inventory		0.01			(0.02	)		(0.18	)		0.36
Tax effect		—			—			0.04			(0.09	)
Basic net financial earnings per share	$	0.89		$	0.30		$	2.95		$	2.70

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.

A table detailing NFE by business segment for the three and twelve months ended September 30, 2024 and 2023, is provided below.

Net financial (loss) earnings by business segment

	Three Months Ended						Twelve Months Ended
	September 30,						September 30,
(Thousands)		2024			2023			2024			2023
New Jersey Natural Gas	$	(19,000	)	$	(24,838	)	$	133,400		$	131,414
Clean Energy Ventures		35,470			50,152			33,662			44,458
Storage and Transportation		2,468			1,784			12,229			12,835
Energy Services		68,284			(3,537	)		111,515			68,517
Home Services and Other		(639	)		3,451			26			4,758
Subtotal		86,583			27,012			290,832			261,982
Eliminations		2,124			2,551			(4	)		(155	)
*Total*	$	88,707		$	29,563		$	290,828		$	261,827

Fiscal 2025 NFE Guidance:

NJR is introducing its fiscal 2025 NFEPS guidance range of $3.05 to $3.20, subject to the risks and uncertainties identified below under “Forward-Looking Statements.” Fiscal 2025 NFEPS guidance is higher than the range implied by our 7 to 9 percent long-term NFEPS growth target as a result of the one-time gain from the sale of NJR’s residential solar portfolio.

The following chart represents NJR’s current expected contributions from its business segments for fiscal 2025 (which takes into account the impact of the one-time gain from the sale of NJR’s residential solar portfolio):

Segment	Expected fiscal 2025 net financial earnings contribution
New Jersey Natural Gas	65 to 75 percent
Clean Energy Ventures	20 to 25 percent
Storage and Transportation	3 to 7 percent
Energy Services	3 to 7 percent
Home Services and Other	0 to 1 percent

In providing fiscal 2025 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 fiscal 2024 NFE of $133.4 million, compared to NFE of $131.4 million during fiscal 2023. NJNG reported fiscal 2024 fourth-quarter net financial loss of $(19.0) million, compared to a net financial loss of $(24.8) million during the same period in fiscal 2023. The increase in NFE for the year was due primarily to higher utility gross margin due to customer growth, partially offset by higher depreciation expenses.

Customer Growth:

NJNG added 8,079 new customers during the year, finishing fiscal 2024 with a total of approximately 583,000 customers in New Jersey’s Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington counties. NJNG expects new customers added during fiscal 2024 to contribute approximately $6.8 million of incremental utility gross margin on an annualized basis.

Base Rate Case Settlement:

On November 21, 2024, the BPU issued an order adopting a stipulation of settlement approving a $157.0M increase to base rates, effective November 21, 2024. The increase includes an overall rate of return on rate base of 7.08 percent, return on common equity of 9.60 percent, a common equity ratio of 54.0 percent and a depreciation rate of 3.21 percent.

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 fiscal 2024, NJNG spent $42.2 million under the program on various distribution system reinforcement projects. NJNG submitted its annual IIP filing to the BPU requesting a rate increase for capital expenditures during fiscal 2024. The BPU approved this filing, which will result in a $4.7 million revenue increase, with an effective date of October 1, 2024.

Basic Gas Supply Service (BGSS) Incentive Programs:

BGSS incentive programs contributed $17.9 million to utility gross margin in fiscal 2024, compared with $20.0 million in fiscal 2023. This decline was largely due to decreased margins from storage incentive along with lower off-system sales margin due to less market volatility and lower capacity release volumes.

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

Energy-Efficiency Programs:

SAVEGREEN® invested $71.3 million in fiscal 2024 in energy-efficiency upgrades for customers’ homes and businesses. NJNG recovered $28.6 million of its outstanding investments during fiscal 2024 through its energy efficiency rate.

On October 30, 2024, NJNG received approval from the BPU for a new $385.6 million SAVEGREEN® program, the largest in NJNG’s history. The program is effective January 1, 2025 through June 30, 2027.

Clean Energy Ventures (CEV)

CEV reported fiscal 2024 NFE of $33.7 million, compared with NFE of $44.5 million during fiscal 2023. Fiscal 2024 fourth-quarter NFE were $35.5 million, compared with NFE of $50.2 million during the same period in fiscal 2023. The decrease in NFE for fiscal 2024 was largely due to a reversal of a valuation allowance on certain deferred tax assets in fiscal 2023 that did not reoccur in fiscal 2024. The decrease in NFE for the fiscal 2024 fourth quarter was largely due to lower SREC and Transition Renewable Energy Certificate (TREC) revenue for the period.

Solar Investment Update:

As of September 30, 2024, CEV had approximately 386MW of commercial solar capacity in service in New Jersey, New York, Connecticut, Rhode Island, Indiana, and Michigan.
In November 2024, CEV announced the sale of its 91MW residential solar portfolio for a total of $132.5 million. NJR expects to record a gain on sale in fiscal 2025 and intends to use the proceeds to pay down corporate debt and for general working capital purposes.

Storage and Transportation

Storage and Transportation reported fiscal 2024 NFE of $12.2 million, compared with NFE of $12.8 million in fiscal 2023. Fiscal 2024 fourth-quarter NFE were $2.5 million, compared with NFE of $1.8 million during the same period in fiscal 2023. Fiscal 2024 NFE decreased slightly due to higher operating and maintenance expenses, partially offset by higher revenues during the year.

Energy Services

Energy Services reported fiscal 2024 NFE of $111.5 million, compared with NFE of $68.5 million in fiscal 2023. Fiscal 2024 fourth-quarter NFE were $68.3 million compared with a net financial loss of $(3.5) million for the same period in fiscal 2023. The increase in NFE for both periods was due primarily to higher contributions from the AMAs signed in December 2020.

Home Services and Other Operations

Home Services and Other Operations reported fiscal 2024 NFE of $0.03 million, compared with NFE of $4.8 million in fiscal 2023. Fiscal 2024 fourth-quarter net financial loss was $(0.6) million, compared to NFE of $3.5 million for the same period in fiscal 2023. The decrease in NFE for both periods was largely due to higher operations and maintenance expenses.

Capital Expenditures and Cash Flows:

NJR is committed to maintaining a strong financial profile:

During fiscal 2024, capital expenditures were $575.1 million, including accruals, compared with $537.3 million during fiscal 2023. The increase in capital expenditures was primarily due to higher expenditures at NJNG.
During fiscal 2024, cash flows from operations were $427.4 million, compared to cash flows from operations of $479.0 million during fiscal 2023. The decrease was largely due to changes in the mix of working capital components.

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, statements regarding NJR’s NFEPS guidance for fiscal 2025, projected NFEPS growth rates and our guidance range, forecasted contributions of business segments to NJR’s NFE for fiscal 2025, forecasted increase in the fiscal 2025 dividend, customer growth at NJNG and their expected contributions, expected impact of the sale of NJR’s residential solar portfolio and expected use of proceeds from the sale, infrastructure programs and investments, future decarbonization opportunities including IIP, Energy Efficiency programs, including BGSS, the financial impact of the outcome of base rate cases with the BPU, the outcome or timing of Adelphia’s rate case with FERC, and other legal and regulatory expectations, and statements that include other projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact.

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 website, 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 new information, future events or otherwise, except as required by law.

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.

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 customers in New Jersey’s Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington counties.

Clean Energy Ventures invests in, owns and operates solar projects, providing 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 SAVEGREEN®.

For more information about NJR:

www.njresources.com.

Follow us on X.com (Twitter) @NJNaturalGas.

“Like” us on facebook.com/NewJerseyNaturalGas.

NEW JERSEY RESOURCES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended

Twelve Months Ended

September 30,

September 30,

(Thousands, except per share data)

2024

2023

2024

2023

OPERATING REVENUES

Utility

$

104,753

$

108,404

$

1,018,482

$

1,011,284

Nonutility

291,027

222,921

778,057

951,710

Total operating revenues

395,780

331,325

1,796,539

1,962,994

OPERATING EXPENSES

Gas purchases

Utility

31,493

34,998

405,332

416,158

Nonutility

78,960

87,228

304,426

555,579

Related parties

1,740

1,739

7,147

7,206

Operation and maintenance

88,596

100,759

394,636

373,568

Regulatory rider expenses

3,566

3,017

60,327

50,542

Depreciation and amortization

45,298

39,291

166,567

152,941

Total operating expenses

249,653

267,032

1,338,435

1,555,994

OPERATING INCOME

146,127

64,293

458,104

407,000

Other income, net

10,237

10,938

41,553

26,083

Interest expense, net of capitalized interest

36,012

33,143

130,275

123,014

INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES

120,352

42,088

369,382

310,069

Income tax provision

30,787

6,216

84,906

49,275

Equity in earnings of affiliates

1,561

1,152

5,299

3,930

NET INCOME

$

91,126

$

37,024

$

289,775

$

264,724

EARNINGS PER COMMON SHARE

Basic

$

0.92

$

0.38

$

2.94

$

2.73

Diluted

$

0.91

$

0.38

$

2.92

$

2.71

WEIGHTED AVERAGE SHARES OUTSTANDING

Basic

99,308

97,568

98,634

97,028

Diluted

99,964

98,192

99,289

97,627

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES

(Unaudited)

Three Months Ended

Twelve Months Ended

September 30,

September 30,

(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

$

91,126

$

37,024

$

289,775

$

264,724

Add:

Unrealized (gain) loss on derivative instruments and related transactions

(4,286

)

(7,579

)

19,574

(38,081

)

Tax effect

1,018

1,800

(4,652

)

9,050

Effects of economic hedging related to natural gas inventory

1,266

(2,186

)

(18,192

)

34,699

Tax effect

(301

)

520

4,323

(8,246

)

Gain on equity method investment

—

—

—

(300

)

Tax effect

—

(93

)

—

(19

)

NFE tax adjustment

(116

)

77

—

—

Net financial earnings

$

88,707

$

29,563

$

290,828

$

261,827

Weighted Average Shares Outstanding

Basic

99,308

97,568

98,634

97,028

Diluted

99,964

98,192

99,289

97,627

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

$

0.92

$

0.38

$

2.94

$

2.73

Add:

Unrealized (gain) loss on derivative instruments and related transactions

$

(0.04

)

$

(0.08

)

$

0.20

$

(0.39

)

Tax effect

$

—

$

0.02

$

(0.05

)

$

0.09

Effects of economic hedging related to natural gas inventory

$

0.01

$

(0.02

)

$

(0.18

)

$

0.36

Tax effect

$

—

$

—

$

0.04

$

(0.09

)

Basic net financial earnings per share

$

0.89

$

0.30

$

2.95

$

2.70

NATURAL GAS DISTRIBUTION

A reconciliation of gross margin, the closest GAAP financial measure, to utility gross margin is as follows:

Operating revenues

$

105,091

$

108,741

$

1,019,832

$

1,012,633

Less:

Natural gas purchases

33,817

37,323

414,635

425,457

Operating and maintenance ⁽¹⁾

22,935

31,605

113,984

115,292

Regulatory rider expense

3,566

3,017

60,327

50,542

Depreciation and amortization

29,620

26,292

112,492

102,326

Gross margin

15,153

10,504

318,394

319,016

Add:

Operating and maintenance ⁽¹⁾

22,935

31,605

113,984

115,292

Depreciation and amortization

29,620

26,292

112,492

102,326

Utility gross margin

$

67,708

$

68,401

$

544,870

$

536,634

(1) Excludes selling, general and administrative expenses of $23.6 million and $28.7 million for the three months ended September 30, 2024 and 2023, respectively, and $111.3 million and $111.5 million for the fiscal years ended September 30, 2024 and 2023, respectively.

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (continued)

(Unaudited)

Three Months Ended

Twelve Months Ended

September 30,

September 30,

(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

$

178,420

$

102,932

$

485,391

$

691,616

Less:

Natural Gas purchases

79,097

87,932

305,938

558,932

Operation and maintenance ⁽¹⁾

1,583

5,833

23,189

20,199

Depreciation and amortization

47

51

205

221

Gross margin

97,693

9,116

156,059

112,264

Add:

Operation and maintenance ⁽¹⁾

1,583

5,833

23,189

20,199

Depreciation and amortization

47

51

205

221

Unrealized (gain) loss on derivative instruments and related transactions

(4,287

)

(8,559

)

24,449

(48,251

)

Effects of economic hedging related to natural gas inventory

1,266

(2,186

)

(18,192

)

34,699

Financial margin

$

96,302

$

4,255

$

185,710

$

119,132

(1) Excludes selling, general and administrative expenses of $0.5 million and $0.4 million for the threemonths ended September 30, 2024 and 2023, respectively, and $1.8 million and $(0.8) million for the fiscal years ended September 30, 2024 and 2023, respectively.

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

Net income

$

70,703

$

4,577

$

106,745

$

78,848

Add:

Unrealized (gain) loss on derivative instruments and related transactions

(4,287

)

(8,559

)

24,449

(48,251

)

Tax effect

1,019

2,034

(5,810

)

11,467

Effects of economic hedging related to natural gas

1,266

(2,186

)

(18,192

)

34,699

Tax effect

(301

)

520

4,323

(8,246

)

NFE tax adjustment

(116

)

77

—

—

Net financial earnings (loss)

$

68,284

$

(3,537

)

$

111,515

$

68,517

FINANCIAL STATISTICS BY BUSINESS UNIT

(Unaudited)

Three Months Ended

Twelve Months Ended

September 30,

September 30,

(Thousands, except per share data)

2024

2023

2024

2023

NEW JERSEY RESOURCES

Operating Revenues

Natural Gas Distribution

$

105,091

$

108,741

$

1,019,832

$

1,012,633

Clean Energy Ventures

71,295

83,755

130,563

124,131

Energy Services

178,420

102,932

485,391

691,616

Storage and Transportation

24,830

22,933

96,209

92,859

Home Services and Other

16,540

14,969

62,635

57,638

Sub-total

396,176

333,330

1,794,630

1,978,877

Eliminations

(396

)

(2,005

)

1,909

(15,883

)

Total

$

395,780

$

331,325

$

1,796,539

$

1,962,994

Operating (Loss) Income

Natural Gas Distribution

$

(8,399

)

$

(18,172

)

$

207,118

$

207,528

Clean Energy Ventures

51,637

67,389

58,652

58,722

Energy Services

97,241

8,742

154,279

113,112

Storage and Transportation

6,027

5,901

27,198

32,425

Home Services and Other

684

595

2,642

2,495

Sub-total

147,190

64,455

449,889

414,282

Eliminations

(1,063

)

(162

)

8,215

(7,282

)

Total

$

146,127

$

64,293

$

458,104

$

407,000

Equity in Earnings of Affiliates

Storage and Transportation

$

956

$

863

$

2,816

$

3,126

Eliminations

605

289

2,483

804

Total

$

1,561

$

1,152

$

5,299

$

3,930

Net (Loss) Income

Natural Gas Distribution

$

(19,000

)

$

(24,838

)

$

133,400

$

131,414

Clean Energy Ventures

35,470

50,152

33,662

44,458

Energy Services

70,703

4,577

106,745

78,848

Storage and Transportation

2,468

1,877

12,229

13,154

Home Services and Other

(639

)

3,451

26

4,758

Sub-total

89,002

35,219

286,062

272,632

Eliminations

2,124

1,805

3,713

(7,908

)

Total

$

91,126

$

37,024

$

289,775

$

264,724

Net Financial (Loss) Earnings

Natural Gas Distribution

$

(19,000

)

$

(24,838

)

$

133,400

$

131,414

Clean Energy Ventures

35,470

50,152

33,662

44,458

Energy Services

68,284

(3,537

)

111,515

68,517

Storage and Transportation

2,468

1,784

12,229

12,835

Home Services and Other

(639

)

3,451

26

4,758

Sub-total

86,583

27,012

290,832

261,982

Eliminations

2,124

2,551

(4

)

(155

)

Total

$

88,707

$

29,563

$

290,828

$

261,827

Throughput (Bcf)

NJNG, Core Customers

15.1

17.4

90.5

93.4

NJNG, Off System/Capacity Management

8.4

20.6

85.0

72.6

Energy Services Fuel Mgmt. and Wholesale Sales

33.3

41.4

125.3

150.4

Total

56.8

79.4

300.8

316.4

Common Stock Data

Yield at September 30,

3.8

%

4.1

%

3.8

%

4.1

%

Market Price at September 30,

$

47.20

$

40.63

$

47.20

$

40.63

Shares Out. at September 30,

99,461

97,584

99,461

97,584

Market Cap. at September 30,

$

4,694,580

$

3,964,856

$

4,694,580

$

3,964,856

Three Months Ended

Twelve Months Ended

(Unaudited)

September 30,

September 30,

(Thousands, except customer and weather data)

2024

2023

2024

2023

NATURAL GAS DISTRIBUTION

Utility Gross Margin

Operating revenues

$

105,091

$

108,741

$

1,019,832

$

1,012,633

Less:

Natural gas purchases

33,817

37,323

414,635

425,457

Operating and maintenance ⁽¹⁾

22,935

31,605

113,984

115,292

Regulatory rider expense

3,566

3,017

60,327

50,542

Depreciation and amortization

29,620

26,292

112,492

102,326

Gross margin

15,153

10,504

318,394

319,016

Add:

Operating and maintenance ⁽¹⁾

22,935

31,605

113,984

115,292

Depreciation and amortization

29,620

26,292

112,492

102,326

Total Utility Gross Margin

$

67,708

$

68,401

$

544,870

$

536,634

(1) Excludes selling, general and administrative expenses of $23.6 million and $28.7 million for the fiscal years ended September 30, 2024 and 2023, respectively, and $111.3 million and $111.5 million for the fiscal years ended September 30, 2024 and 2023, respectively.

Utility Gross Margin, Operating Income and Net Income

Residential

$

38,954

$

39,121

$

369,522

$

360,138

Commercial, Industrial & Other

13,058

10,808

78,033

76,550

Firm Transportation

12,888

14,611

75,641

76,114

Total Firm Margin

64,900

64,540

523,196

512,802

Interruptible

1,118

1,240

3,798

3,812

Total System Margin

66,018

65,780

526,994

516,614

Basic Gas Supply Service Incentive

1,690

2,621

17,876

20,020

Total Utility Gross Margin

67,708

68,401

544,870

536,634

Operation and maintenance expense

46,487

60,281

225,260

226,780

Depreciation and amortization

29,620

26,292

112,492

102,326

Operating (Loss) Income

$

(8,399

)

$

(18,172

)

$

207,118

$

207,528

Net (Loss) Income

$

(19,000

)

$

(24,838

)

$

133,400

$

131,414

Net Financial (Loss) Earnings

$

(19,000

)

$

(24,838

)

$

133,400

$

131,414

Throughput (Bcf)

Residential

3.4

3.4

44.5

43.4

Commercial, Industrial & Other

0.8

0.4

8.5

8.4

Firm Transportation

1.4

1.1

11.7

12.1

Total Firm Throughput

5.6

4.9

64.7

63.9

Interruptible

9.5

12.5

25.8

29.5

Total System Throughput

15.1

17.4

90.5

93.4

Off System/Capacity Management

8.4

20.6

85.0

72.6

Total Throughput

23.5

38.0

175.5

166.0

Customers

Residential

528,502

520,682

528,502

520,682

Commercial, Industrial & Other

31,927

31,725

31,927

31,725

Firm Transportation

22,442

23,490

22,442

23,490

Total Firm Customers

582,871

575,897

582,871

575,897

Interruptible

31

83

31

83

Total System Customers

582,902

575,980

582,902

575,980

Off System/Capacity Management*

14

20

14

20

Total Customers

582,916

576,000

582,916

576,000

*The number of customers represents those active during the last month of the period.

Degree Days

Actual

8

28

3,960

3,897

Normal

25

24

4,463

4,498

Percent of Normal

32.0

%

116.7

%

88.7

%

86.6

%

Three Months Ended

Twelve Months Ended

(Unaudited)

September 30,

September 30,

(Thousands, except customer, RECs and megawatt)

2024

2023

2024

2023

CLEAN ENERGY VENTURES

Operating Revenues

SREC sales

$

56,307

$

69,455

$

82,539

$

79,762

TREC sales

4,296

4,629

13,396

12,636

SREC II sales ⁽¹⁾

621

398

1,715

951

Solar electricity sales

7,012

6,210

20,934

18,831

Sunlight Advantage

3,059

3,063

11,979

11,951

Total Operating Revenues

$

71,295

$

83,755

$

130,563

$

124,131

Depreciation and Amortization

$

7,035

$

6,607

$

27,869

$

25,320

Operating Income

$

51,637

$

67,389

$

58,652

$

58,722

Income Tax (Benefit) Provision

$

11,877

$

15,396

$

11,406

$

(7,683

)

Net Income

$

35,470

$

50,152

$

33,662

$

44,458

Net Financial Earnings

$

35,470

$

50,152

$

33,662

$

44,458

Solar Renewable Energy Certificates Generated

134,901

129,286

402,056

422,039

Solar Renewable Energy Certificates Sold

294,943

345,035

419,266

393,906

Transition Renewable Energy Certificates Generated

30,114

28,507

93,913

80,520

Solar Renewable Energy Certificates II Generated

6,828

4,457

19,087

10,260

Solar Megawatts Under Construction

63.8

5.6

63.8

5.6

(1) Prior year SREC II revenue was previously included in Solar electricity sales and other

ENERGY SERVICES

Operating Income

Operating revenues

$

178,420

$

102,932

$

485,391

$

691,616

Less:

Gas purchases

79,097

87,932

305,938

558,932

Operation and maintenance expense

2,035

6,207

24,969

19,351

Depreciation and amortization

47

51

205

221

Operating Income

$

97,241

$

8,742

$

154,279

$

113,112

Net Income

$

70,703

$

4,577

$

106,745

$

78,848

Financial Margin

$

96,302

$

4,255

$

185,710

$

119,132

Net Financial Earnings (Loss)

$

68,284

$

(3,537

)

$

111,515

$

68,517

Gas Sold and Managed (Bcf)

33.3

41.4

125.3

150.4

STORAGE AND TRANSPORTATION

Operating Revenues

$

24,830

$

22,933

$

96,209

$

92,859

Equity in Earnings of Affiliates

$

956

$

863

$

2,816

$

3,126

Operation and Maintenance Expense

$

12,341

$

10,697

$

43,083

$

34,648

Other Income, Net

$

2,907

$

2,021

$

10,207

$

6,850

Interest Expense

$

5,867

$

6,538

$

23,441

$

25,803

Income Tax Provision

$

1,555

$

370

$

4,551

$

3,444

Net Income

$

2,468

$

1,877

$

12,229

$

13,154

Net Financial Earnings

$

2,468

$

1,784

$

12,229

$

12,835

HOME SERVICES AND OTHER

Operating Revenues

$

16,540

$

14,969

$

62,635

$

57,638

Operating Income

$

684

$

595

$

2,642

$

2,495

Net (Loss) Income

$

(639

)

$

3,451

$

26

$

4,758

Net Financial (Loss) Earnings

$

(639

)

$

3,451

$

26

$

4,758

Total Service Contract Customers at September 30

99,753

101,499

99,753

101,499

View source version on businesswire.com: https://www.businesswire.com/news/home/20241124831683/en/

Media:

Mike Kinney

732-938-1031

[email protected]

Investors:

Adam Prior

732-938-1145

[email protected]

KEYWORDS: United States North America New Jersey

INDUSTRY KEYWORDS: Oil/Gas Alternative Energy Energy Other Energy Utilities

MEDIA:

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