Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries New Jersey Resources Reports Fiscal 2023 Third-Quarter Results By: New Jersey Resources Corporation via Business Wire August 03, 2023 at 07:00 AM EDT Today, New Jersey Resources Corporation (NYSE: NJR) reported results for the third quarter of fiscal 2023. Highlights include: Consolidated net income of $1.5 million, compared with net income of $13.1 million in the third quarter of fiscal 2022 Consolidated net financial earnings (NFE), a non-GAAP financial measure, of $9.7 million, or $0.10 per share, compared to a net financial loss of $(3.6) million, or $(0.04) per share, in the third quarter of fiscal 2022 Re-affirmed fiscal 2023 net financial earnings per share (NFEPS) guidance range of $2.62 to $2.72 Maintains long-term projected NFEPS growth rate of 7 to 9 percent(1) Third-quarter fiscal 2023 net income totaled $1.5 million, or $0.02 per share, compared with net income of $13.1 million, or $0.14 per share, during the same period in fiscal 2022. Fiscal 2023 year-to-date net income totaled $227.7 million, or $2.35 per share, compared with $220.4 million, or $2.29 per share, for the same period in fiscal 2022. Third-quarter fiscal 2023 NFE totaled $9.7 million, or $0.10 per share, compared to a net financial loss of $(3.6) million, or $(0.04) per share, during the same period in fiscal 2022. Fiscal 2023 year-to-date NFE totaled $232.3 million, or $2.40 per share, compared with $192.4 million, or $2.00 per share, for the same period in fiscal 2022. Steve Westhoven, President and CEO, stated, "We are on track to achieve net financial earnings within our fiscal 2023 guidance range, which was increased by $0.20 earlier this year, reflecting the strength of our diversified business model. We have continued our momentum at CEV, increasing our in-service capacity and growing our pipeline, with fiscal 2023 representing the largest year of capacity growth in CEV's history." Key Performance Metrics Three Months Ended Nine Months Ended June 30, June 30, ($ in Thousands) 2023 2022 2023 2022 Net income $ 1,532 $ 13,053 $ 227,700 $ 220,400 Basic EPS $ 0.02 $ 0.14 $ 2.35 $ 2.29 Net financial earnings (loss) $ 9,670 $ (3,551 ) $ 232,264 $ 192,425 Basic net financial earnings (loss) per share $ 0.10 $ (0.04 ) $ 2.40 $ 2.00 (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 A reconciliation of net income to NFE for the three and nine months ended June 30, 2023 and 2022, is provided below. Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2023 2022 2023 2022 Net income $ 1,532 $ 13,053 $ 227,700 $ 220,400 Add: Unrealized gain on derivative instruments and related transactions (12,970 ) (17,891 ) (30,502 ) (58,060 ) Tax effect 3,083 4,253 7,250 13,809 Effects of economic hedging related to natural gas inventory 24,116 428 36,885 25,160 Tax effect (5,731 ) (102 ) (8,766 ) (5,979 ) Gain on equity method investment (100 ) (4,021 ) (300 ) (4,021 ) Tax effect 24 1,003 74 1,003 NFE tax adjustment (284 ) (274 ) (77 ) 113 Net financial earnings (loss) $ 9,670 $ (3,551 ) $ 232,264 $ 192,425 Weighted Average Shares Outstanding Basic 97,168 96,154 96,849 96,055 Diluted 97,886 96,620 97,538 96,527 Basic earnings per share $ 0.02 $ 0.14 $ 2.35 $ 2.29 Add: Unrealized gain on derivative instruments and related transactions (0.14 ) (0.19 ) (0.31 ) (0.60 ) Tax effect 0.03 0.04 0.07 0.14 Effects of economic hedging related to natural gas inventory 0.25 — 0.38 0.26 Tax effect (0.06 ) — (0.09 ) (0.06 ) Gain on equity method investment — (0.04 ) — (0.04 ) Tax effect — 0.01 — 0.01 Basic net financial earnings (loss) per share $ 0.10 $ (0.04 ) $ 2.40 $ 2.00 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 for the three and nine months ended June 30, 2023 and 2022, is provided below. Net financial earnings (loss) by Business Unit Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2023 2022 2023 2022 New Jersey Natural Gas $ 891 $ 2,648 $ 156,252 $ 156,511 Clean Energy Ventures 7,267 (5,098 ) (5,694 ) (18,410 ) Storage and Transportation 2,358 3,526 11,051 11,113 Energy Services (1,604 ) (5,003 ) 72,054 42,504 Home Services and Other 523 215 1,307 1,113 Subtotal 9,435 (3,712 ) 234,970 192,831 Eliminations 235 161 (2,706 ) (406 ) Total $ 9,670 $ (3,551 ) $ 232,264 $ 192,425 Fiscal 2023 NFE Guidance: NJR re-affirmed its fiscal 2023 NFE guidance range of $2.62 to $2.72, which was increased by $0.20 per share in the first quarter of fiscal 2023, subject to the risks and uncertainties identified below under "Forward-Looking Statements." The following chart represents NJR’s current expected contributions from its business segments for fiscal 2023: Company Expected Fiscal 2023 Net Financial Earnings Contribution New Jersey Natural Gas 48 to 53 percent Clean Energy Ventures 18 to 20 percent Storage and Transportation 4 to 8 percent Energy Services 20 to 25 percent Home Services and Other 0 to 1 percent In providing fiscal 2023 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 reported third-quarter fiscal 2023 NFE of $0.9 million, compared to NFE of $2.6 million during the same period in fiscal 2022. The decrease in NFE for the quarter was due primarily to higher depreciation and operating expenses, partially offset by higher utility gross margin. Fiscal 2023 year-to-date NFE were $156.3 million, which was flat compared to NFE of $156.5 million during the same period in fiscal 2022. Customer Growth: NJNG added 5,892 new customers during the first nine months of fiscal 2023, compared with 5,274 during the same period in fiscal 2022. NJNG expects these new customers to contribute approximately $5.0 million of incremental utility gross margin on an annualized basis. 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 nine months of fiscal 2023, NJNG has spent $33.5 million under the program on various distribution system reinforcement projects. On March 30, 2023, NJNG submitted its annual IIP filing to the BPU requesting a rate increase for capital expenditures of $31.4 million through June 30, 2023, resulting in a $3.2 million revenue increase, with a proposed effective date of October 1, 2023. Basic Gas Supply Service (BGSS) Incentive Programs: BGSS incentive programs contributed $2.9 million to utility gross margin in the third quarter of fiscal 2023, compared with $1.9 million during the same period in fiscal 2022. Fiscal 2023 year-to-date, these programs contributed $17.4 million to utility gross margin, compared with $12.1 million during the same period in fiscal 2022. The increase in NFE for the fiscal 2023 quarter and year-to-date period was due primarily to an increase in storage incentive margin. For more information on utility gross margin, please see "Non-GAAP Financial Information" below. Energy-Efficiency Programs: SAVEGREEN invested $39.7 million during the first nine months of fiscal 2023 in energy-efficiency upgrades for customers' homes and businesses. NJNG recovered $15.9 million of its outstanding investments during the first nine months of fiscal 2023 through its energy efficiency rate. Clean Energy Ventures (CEV) CEV reported third-quarter fiscal 2023 net financial earnings of $7.3 million, compared with net financial loss of $(5.1) million during the same period in fiscal 2022. Fiscal 2023 year-to-date net financial loss was $(5.7) million, compared with net financial loss of $(18.4) million during the same period in fiscal 2022. The increase in NFE for the quarter was due primarily to a reversal of a valuation allowance on certain deferred tax assets during June 2023, which was determined to be no longer required. The increase in fiscal 2023 year-to-date NFE was due to the aforementioned reversal. Solar Investment Update: During the first nine months of fiscal 2023, CEV placed 6 commercial projects into service, adding approximately 51 MW to total installed capacity. As of June 30, 2023, CEV had approximately 441MW of solar capacity (including residential) in service in New Jersey, Rhode Island, New York and Connecticut. Subsequent to quarter end, CEV acquired two operational assets, adding approximately 21MW of installed capacity for a total of approximately 462MW (including residential) currently in service. Storage and Transportation Storage and Transportation reported third-quarter fiscal 2023 NFE of $2.4 million, compared with NFE of $3.5 million during the same period in fiscal 2022. Fiscal 2023 year-to-date NFE were $11.1 million, compared with NFE of $11.1 million during the same period in fiscal 2022. NFE for both periods decreased due to increased depreciation and interest expenses; partially offset by increased revenue. Energy Services Energy Services reported third-quarter fiscal 2023 net financial loss of $(1.6) million compared with net financial loss of $(5.0) million for the same period in fiscal 2022. Fiscal 2023 year-to-date NFE were $72.1 million, compared with NFE of $42.5 million during the same period in fiscal 2022. The improvement in NFE for the third quarter compared to the prior year period was due to higher financial margin and lower operating expenses. The increase in fiscal 2023 year-to-date NFE were due to higher natural gas price volatility during periods of colder than expected weather in December 2022 and February 2023, allowing Energy Services to capture additional margin. Home Services and Other Operations Home Services and Other Operations reported third-quarter fiscal 2023 NFE of $0.5 million compared with NFE of $0.2 million for the same period in fiscal 2022. Fiscal 2023 year-to-date NFE were $1.3 million, compared with NFE of $1.1 million during the same period in fiscal 2022. The increase in NFE for the quarter and year-to-date period was due primarily to increased installation and service contract revenue. Capital Expenditures and Cash Flows: NJR is committed to maintaining a strong financial profile: During the first nine months of fiscal 2023, capital expenditures were $370.0 million, including accruals, of which $274.9 million were related to NJNG, compared with $419.4 million, of which $194.8 million were related to NJNG, during the same period in fiscal 2022. The decrease in capital expenditures was primarily due to the completion of the Adelphia Gateway Pipeline project, which was placed into service in September 2022. During the first nine months of fiscal 2023, cash flows from operations were $387.9 million, compared with cash flows from operations of $235.9 million during the same period of fiscal 2022. The increase in operating cash flows was due to increased earnings and decreased working capital requirements as a result of a decline in gas prices during the period. 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 2023, projected NFEPS growth rates, forecasted contribution of business segments to NJR’s NFE for fiscal 2023, customer growth at NJNG and their expected contributions, infrastructure programs and investments future decarbonization opportunities including IIP, the outcome or timing of future Base Rate Cases 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 and certain transactions related to NJR's investments in the PennEast Project, 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 over 7,700 miles of natural gas transportation and distribution infrastructure to serve over 574,900 customers in New Jersey’s Monmouth, Ocean and parts of Morris, Middlesex, Sussex and Burlington counties. Clean Energy Ventures invests in, owns and operates solar projects with a total capacity of approximately 441 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 Twitter @NJNaturalGas. “Like” us on facebook.com/NewJerseyNaturalGas. NEW JERSEY RESOURCES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended June 30, June 30, (Thousands, except per share data) 2023 2022 2023 2022 OPERATING REVENUES Utility $ 144,971 $ 199,357 $ 902,880 $ 937,266 Nonutility 119,104 352,978 728,789 1,203,227 Total operating revenues 264,075 552,335 1,631,669 2,140,493 OPERATING EXPENSES Gas purchases Utility 42,344 100,277 381,160 435,438 Nonutility 75,917 290,806 468,351 980,135 Related parties 1,870 1,838 5,467 5,567 Operation and maintenance 94,213 88,373 272,809 243,143 Regulatory rider expenses 6,120 8,360 47,525 55,941 Depreciation and amortization 38,877 32,872 113,650 94,700 Total operating expenses 259,341 522,526 1,288,962 1,814,924 OPERATING INCOME 4,734 29,809 342,707 325,569 Other income, net 5,711 4,288 15,145 12,551 Interest expense, net of capitalized interest 30,119 21,411 89,871 59,814 (LOSS) INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES (19,674 ) 12,686 267,981 278,306 Income tax (benefit) provision (20,505 ) 4,434 43,059 64,051 Equity in earnings of affiliates 701 4,801 2,778 6,145 NET INCOME $ 1,532 $ 13,053 $ 227,700 $ 220,400 EARNINGS PER COMMON SHARE Basic $ 0.02 $ 0.14 $ 2.35 $ 2.29 Diluted $ 0.02 $ 0.14 $ 2.33 $ 2.28 WEIGHTED AVERAGE SHARES OUTSTANDING Basic 97,168 96,154 96,849 96,055 Diluted 97,886 96,620 97,538 96,527 RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (Unaudited) Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2023 2022 2023 2022 NEW JERSEY RESOURCES A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows: Net income $ 1,532 $ 13,053 $ 227,700 $ 220,400 Add: Unrealized gain on derivative instruments and related transactions (12,970 ) (17,891 ) (30,502 ) (58,060 ) Tax effect 3,083 4,253 7,250 13,809 Effects of economic hedging related to natural gas inventory 24,116 428 36,885 25,160 Tax effect (5,731 ) (102 ) (8,766 ) (5,979 ) Gain on equity method investment (100 ) (4,021 ) (300 ) (4,021 ) Tax effect 24 1,003 74 1,003 NFE tax adjustment (284 ) (274 ) (77 ) 113 Net financial earnings (loss) $ 9,670 $ (3,551 ) $ 232,264 $ 192,425 Weighted Average Shares Outstanding Basic 97,168 96,154 96,849 96,055 Diluted 97,886 96,620 97,538 96,527 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 $ 0.02 $ 0.14 $ 2.35 $ 2.29 Add: Unrealized gain on derivative instruments and related transactions $ (0.14 ) $ (0.19 ) $ (0.31 ) $ (0.60 ) Tax effect $ 0.03 $ 0.04 $ 0.07 $ 0.14 Effects of economic hedging related to natural gas inventory $ 0.25 $ — $ 0.38 $ 0.26 Tax effect $ (0.06 ) $ — $ (0.09 ) $ (0.06 ) Gain on equity method investment $ — $ (0.04 ) $ — $ (0.04 ) Tax effect $ — $ 0.01 $ — $ 0.01 Basic net financial earnings (loss) per share $ 0.10 $ (0.04 ) $ 2.40 $ 2.00 NATURAL GAS DISTRIBUTION A reconciliation of gross margin, the closest GAAP financial measure, to utility gross margin is as follows: Operating revenues $ 145,308 $ 199,695 $ 903,892 $ 938,279 Less: Natural gas purchases 44,669 102,624 388,134 442,441 Operating and maintenance (1) 31,436 25,034 88,441 64,924 Regulatory rider expense 6,120 8,360 47,525 55,941 Depreciation and amortization 25,825 �� 23,951 76,034 70,188 Gross margin 37,258 39,726 303,758 304,785 Add: Operating and maintenance (1) 31,436 25,034 88,441 64,924 Depreciation and amortization 25,825 23,951 76,034 70,188 Utility gross margin $ 94,519 $ 88,711 $ 468,233 $ 439,897 (1) Excludes selling, general and administrative expenses of $26.9 million and $26.5 million for the three months ended June 30, 2023 and 2022, respectively, and $78.1 million and $76.1 million for the nine months ended June 30, 2023 and 2022, respectively. RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (continued) (Unaudited) Three Months Ended Nine Months Ended (Unaudited) June 30, June 30, (Thousands) 2023 2022 2023 2022 ENERGY SERVICES A reconciliation of gross margin, the closest GAAP financial measure, to Energy Services' financial margin is as follows: Operating revenues $ 70,172 $ 307,815 $ 588,684 $ 1,089,704 Less: Natural Gas purchases 76,599 290,767 471,000 980,600 Operation and maintenance (1) 3,244 5,617 14,366 12,864 Depreciation and amortization 51 34 170 94 Gross margin (9,722 ) 11,397 103,148 96,146 Add: Operation and maintenance (1) 3,244 5,617 14,366 12,864 Depreciation and amortization 51 34 170 94 Unrealized gain on derivative instruments and related transactions (13,601 ) (16,470 ) (39,692 ) (61,671 ) Effects of economic hedging related to natural gas inventory 24,116 428 36,885 25,160 Financial margin $ 4,088 $ 1,006 $ 114,877 $ 72,593 (1) Excludes selling, general and administrative expenses of $0.5 million and $0.6 million for the three months ended June 30, 2023 and 2022, respectively, and $(1.2) million and $1.7 million for the nine months ended June 30, 2023 and 2022, respectively. A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows: Net (loss) income $ (9,336 ) $ 7,501 $ 74,271 $ 70,214 Add: Unrealized gain on derivative instruments and related transactions (13,601 ) (16,470 ) (39,692 ) (61,671 ) Tax effect 3,232 3,914 9,433 14,667 Effects of economic hedging related to natural gas 24,116 428 36,885 25,160 Tax effect (5,731 ) (102 ) (8,766 ) (5,979 ) NFE tax adjustment (284 ) (274 ) (77 ) 113 Net financial (loss) earnings $ (1,604 ) $ (5,003 ) $ 72,054 $ 42,504 FINANCIAL STATISTICS BY BUSINESS UNIT (Unaudited) Three Months Ended Nine Months Ended June 30, June 30, (Thousands, except per share data) 2023 2022 2023 2022 NEW JERSEY RESOURCES Operating Revenues Natural Gas Distribution $ 145,308 $ 199,695 $ 903,892 $ 938,279 Clean Energy Ventures 13,178 13,795 40,376 35,805 Energy Services 70,172 307,815 588,684 1,089,704 Storage and Transportation 22,201 16,390 69,926 41,875 Home Services and Other 14,955 14,220 42,669 41,393 Sub-total 265,814 551,915 1,645,547 2,147,056 Eliminations (1,739 ) 420 (13,878 ) (6,563 ) Total $ 264,075 $ 552,335 $ 1,631,669 $ 2,140,493 Operating Income (Loss) Natural Gas Distribution $ 10,391 $ 13,200 $ 225,700 $ 228,694 Clean Energy Ventures (3,344 ) (1,209 ) (8,667 ) (7,877 ) Energy Services (10,177 ) 10,833 104,370 94,479 Storage and Transportation 7,207 4,240 26,524 9,296 Home Services and Other 712 477 1,900 2,240 Sub-total 4,789 27,541 349,827 326,832 Eliminations (55 ) 2,268 (7,120 ) (1,263 ) Total $ 4,734 $ 29,809 $ 342,707 $ 325,569 Equity in Earnings of Affiliates Storage and Transportation $ 377 $ 5,274 $ 2,263 $ 7,586 Eliminations 324 (473 ) 515 (1,441 ) Total $ 701 $ 4,801 $ 2,778 $ 6,145 Net Income (Loss) Natural Gas Distribution $ 891 $ 2,648 $ 156,252 $ 156,511 Clean Energy Ventures 7,267 (5,098 ) (5,694 ) (18,410 ) Energy Services (9,336 ) 7,501 74,271 70,214 Storage and Transportation 2,434 6,544 11,277 14,131 Home Services and Other 523 215 1,307 1,113 Sub-total 1,779 11,810 237,413 223,559 Eliminations (247 ) 1,243 (9,713 ) (3,159 ) Total $ 1,532 $ 13,053 $ 227,700 $ 220,400 Net Financial Earnings (Loss) Natural Gas Distribution $ 891 $ 2,648 $ 156,252 $ 156,511 Clean Energy Ventures 7,267 (5,098 ) (5,694 ) (18,410 ) Energy Services (1,604 ) (5,003 ) 72,054 42,504 Storage and Transportation 2,358 3,526 11,051 11,113 Home Services and Other 523 215 1,307 1,113 Sub-total 9,435 (3,712 ) 234,970 192,831 Eliminations 235 161 (2,706 ) (406 ) Total $ 9,670 $ (3,551 ) $ 232,264 $ 192,425 Throughput (Bcf) NJNG, Core Customers 19.5 20.0 75.3 78.6 NJNG, Off System/Capacity Management 13.8 20.3 52.4 69.4 Energy Services Fuel Mgmt. and Wholesale Sales 24.0 40.7 109.0 180.9 Total 57.3 81.0 236.7 328.9 Common Stock Data Yield at June 30, 3.3 % 3.3 % 3.3 % 3.3 % Market Price at June 30, $ 47.20 $ 44.53 $ 47.20 $ 44.53 Shares Out. at June 30, 97,496 96,160 97,496 96,160 Market Cap. at June 30, $ 4,601,825 $ 4,282,015 $ 4,601,825 $ 4,282,015 Three Months Ended Nine Months Ended (Unaudited) June 30, June 30, (Thousands, except customer and weather data) 2023 2022 2023 2022 NATURAL GAS DISTRIBUTION Utility Gross Margin Operating revenues $ 145,308 $ 199,695 $ 903,892 $ 938,279 Less: Natural gas purchases 44,669 102,624 388,134 442,441 Operating and maintenance (1) 31,436 25,034 88,441 64,924 Regulatory rider expense 6,120 8,360 47,525 55,941 Depreciation and amortization 25,825 23,951 76,034 70,188 Gross margin 37,258 39,726 303,758 304,785 Add: Operating and maintenance (1) 31,436 25,034 88,441 64,924 Depreciation and amortization 25,825 23,951 76,034 70,188 Total Utility Gross Margin $ 94,519 $ 88,711 $ 468,233 $ 439,897 (1) Excludes selling, general and administrative expenses of $26.9 million and $26.5 million for the three months ended June 30, 2023 and 2022, respectively, and $78.1 million and $76.1 million for the nine months ended June 30, 2023 and 2022, respectively. Utility Gross Margin, Operating Income and Net Income Residential $ 59,723 $ 55,597 $ 321,017 $ 303,716 Commercial, Industrial & Other 14,897 15,387 65,742 64,609 Firm Transportation 15,815 14,729 61,503 57,101 Total Firm Margin 90,435 85,713 448,262 425,426 Interruptible 1,149 1,060 2,572 2,420 Total System Margin 91,584 86,773 450,834 427,846 Off System/Capacity Management/FRM/Storage Incentive 2,935 1,938 17,399 12,051 Total Utility Gross Margin 94,519 88,711 468,233 439,897 Operation and maintenance expense 58,303 51,560 166,499 141,015 Depreciation and amortization 25,825 23,951 76,034 70,188 Operating Income $ 10,391 $ 13,200 $ 225,700 $ 228,694 Net Income $ 891 $ 2,648 $ 156,252 $ 156,511 Net Financial Earnings $ 891 $ 2,648 $ 156,252 $ 156,511 Throughput (Bcf) Residential 5.7 6.7 39.9 42.3 Commercial, Industrial & Other 1.2 1.3 7.7 7.9 Firm Transportation 2.2 2.3 10.7 11.5 Total Firm Throughput 9.1 10.3 58.3 61.7 Interruptible 10.4 9.7 17.0 16.9 Total System Throughput 19.5 20.0 75.3 78.6 Off System/Capacity Management 13.8 20.3 52.4 69.4 Total Throughput 33.3 40.3 127.7 148.0 Customers Residential 518,359 510,931 518,359 510,931 Commercial, Industrial & Other 32,084 31,469 32,084 31,469 Firm Transportation 24,360 26,152 24,360 26,152 Total Firm Customers 574,803 568,552 574,803 568,552 Interruptible 83 29 83 29 Total System Customers 574,886 568,581 574,886 568,581 Off System/Capacity Management* 14 19 14 19 Total Customers 574,900 568,600 574,900 568,600 *The number of customers represents those active during the last month of the period. Degree Days Actual 389 452 3,869 4,097 Normal 470 483 4,474 4,477 Percent of Normal 82.8 % 93.6 % 86.5 % 91.5 % Three Months Ended Nine Months Ended (Unaudited) June 30, June 30, (Thousands, except customer, RECs and megawatt) 2023 2022 2023 2022 CLEAN ENERGY VENTURES Operating Revenues SREC sales $ 184 $ 1,010 $ 10,307 $ 7,839 TREC sales 4,720 1,709 8,007 3,574 Solar electricity sales and other 5,243 8,128 13,174 15,839 Sunlight Advantage 3,031 2,948 8,888 8,553 Total Operating Revenues $ 13,178 $ 13,795 $ 40,376 $ 35,805 Depreciation and Amortization $ 6,672 $ 5,358 $ 18,713 $ 15,902 Operating Loss $ (3,344 ) $ (1,209 ) $ (8,667 ) $ (7,877 ) Income Tax Benefit $ (18,237 ) $ (1,526 ) $ (23,079 ) $ (5,524 ) Net Income (Loss) $ 7,267 $ (5,098 ) $ (5,694 ) $ (18,410 ) Net Financial Earnings (Loss) $ 7,267 $ (5,098 ) $ (5,694 ) $ (18,410 ) Solar Renewable Energy Certificates Generated 130,978 120,779 292,753 278,681 Solar Renewable Energy Certificates Sold 1,314 6,573 48,871 38,773 Transition Renewable Energy Certificates Generated 31,144 12,210 52,013 25,471 Solar Renewable Energy Certificates II Generated 2,973 — 5,803 — Solar Megawatts Under Construction 13.8 75.5 13.8 75.5 ENERGY SERVICES Operating Income Operating revenues $ 70,172 $ 307,815 $ 588,684 $ 1,089,704 Less: Gas purchases 76,599 290,767 471,000 980,600 Operation and maintenance expense 3,699 6,181 13,144 14,531 Depreciation and amortization 51 34 170 94 Operating (Loss) Income $ (10,177 ) $ 10,833 $ 104,370 $ 94,479 Net (Loss) Income $ (9,336 ) $ 7,501 $ 74,271 $ 70,214 Financial Margin $ 4,088 $ 1,006 $ 114,877 $ 72,593 Net Financial (Loss) Earnings $ (1,604 ) $ (5,003 ) $ 72,054 $ 42,504 Gas Sold and Managed (Bcf) 24.0 40.7 109.0 180.9 STORAGE AND TRANSPORTATION Operating Revenues $ 22,201 $ 16,390 $ 69,926 $ 41,875 Equity in Earnings of Affiliates $ 377 $ 5,274 $ 2,263 $ 7,586 Operation and Maintenance Expense $ 8,687 $ 7,840 $ 23,951 $ 22,524 Other Income, Net $ 1,815 $ 1,882 $ 4,829 $ 7,141 Interest Expense $ 6,430 $ 3,177 $ 19,265 $ 7,160 Income Tax Provision $ 535 $ 1,675 $ 3,074 $ 2,732 Net Income $ 2,434 $ 6,544 $ 11,277 $ 14,131 Net Financial Earnings $ 2,358 $ 3,526 $ 11,051 $ 11,113 HOME SERVICES AND OTHER Operating Revenues $ 14,955 $ 14,220 $ 42,669 $ 41,393 Operating Income $ 712 $ 477 $ 1,900 $ 2,240 Net Income $ 523 $ 215 $ 1,307 $ 1,113 Net Financial Earnings $ 523 $ 215 $ 1,307 $ 1,113 Total Service Contract Customers at Jun 30 101,748 105,022 101,748 105,022 View source version on businesswire.com: https://www.businesswire.com/news/home/20230802209783/en/Contacts Media Contact: Mike Kinney 732-938-1031 mkinney@njresources.com Investor Contact: Adam Prior 732-938-1145 aprior@njresources.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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New Jersey Resources Reports Fiscal 2023 Third-Quarter Results By: New Jersey Resources Corporation via Business Wire August 03, 2023 at 07:00 AM EDT Today, New Jersey Resources Corporation (NYSE: NJR) reported results for the third quarter of fiscal 2023. Highlights include: Consolidated net income of $1.5 million, compared with net income of $13.1 million in the third quarter of fiscal 2022 Consolidated net financial earnings (NFE), a non-GAAP financial measure, of $9.7 million, or $0.10 per share, compared to a net financial loss of $(3.6) million, or $(0.04) per share, in the third quarter of fiscal 2022 Re-affirmed fiscal 2023 net financial earnings per share (NFEPS) guidance range of $2.62 to $2.72 Maintains long-term projected NFEPS growth rate of 7 to 9 percent(1) Third-quarter fiscal 2023 net income totaled $1.5 million, or $0.02 per share, compared with net income of $13.1 million, or $0.14 per share, during the same period in fiscal 2022. Fiscal 2023 year-to-date net income totaled $227.7 million, or $2.35 per share, compared with $220.4 million, or $2.29 per share, for the same period in fiscal 2022. Third-quarter fiscal 2023 NFE totaled $9.7 million, or $0.10 per share, compared to a net financial loss of $(3.6) million, or $(0.04) per share, during the same period in fiscal 2022. Fiscal 2023 year-to-date NFE totaled $232.3 million, or $2.40 per share, compared with $192.4 million, or $2.00 per share, for the same period in fiscal 2022. Steve Westhoven, President and CEO, stated, "We are on track to achieve net financial earnings within our fiscal 2023 guidance range, which was increased by $0.20 earlier this year, reflecting the strength of our diversified business model. We have continued our momentum at CEV, increasing our in-service capacity and growing our pipeline, with fiscal 2023 representing the largest year of capacity growth in CEV's history." Key Performance Metrics Three Months Ended Nine Months Ended June 30, June 30, ($ in Thousands) 2023 2022 2023 2022 Net income $ 1,532 $ 13,053 $ 227,700 $ 220,400 Basic EPS $ 0.02 $ 0.14 $ 2.35 $ 2.29 Net financial earnings (loss) $ 9,670 $ (3,551 ) $ 232,264 $ 192,425 Basic net financial earnings (loss) per share $ 0.10 $ (0.04 ) $ 2.40 $ 2.00 (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 A reconciliation of net income to NFE for the three and nine months ended June 30, 2023 and 2022, is provided below. Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2023 2022 2023 2022 Net income $ 1,532 $ 13,053 $ 227,700 $ 220,400 Add: Unrealized gain on derivative instruments and related transactions (12,970 ) (17,891 ) (30,502 ) (58,060 ) Tax effect 3,083 4,253 7,250 13,809 Effects of economic hedging related to natural gas inventory 24,116 428 36,885 25,160 Tax effect (5,731 ) (102 ) (8,766 ) (5,979 ) Gain on equity method investment (100 ) (4,021 ) (300 ) (4,021 ) Tax effect 24 1,003 74 1,003 NFE tax adjustment (284 ) (274 ) (77 ) 113 Net financial earnings (loss) $ 9,670 $ (3,551 ) $ 232,264 $ 192,425 Weighted Average Shares Outstanding Basic 97,168 96,154 96,849 96,055 Diluted 97,886 96,620 97,538 96,527 Basic earnings per share $ 0.02 $ 0.14 $ 2.35 $ 2.29 Add: Unrealized gain on derivative instruments and related transactions (0.14 ) (0.19 ) (0.31 ) (0.60 ) Tax effect 0.03 0.04 0.07 0.14 Effects of economic hedging related to natural gas inventory 0.25 — 0.38 0.26 Tax effect (0.06 ) — (0.09 ) (0.06 ) Gain on equity method investment — (0.04 ) — (0.04 ) Tax effect — 0.01 — 0.01 Basic net financial earnings (loss) per share $ 0.10 $ (0.04 ) $ 2.40 $ 2.00 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 for the three and nine months ended June 30, 2023 and 2022, is provided below. Net financial earnings (loss) by Business Unit Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2023 2022 2023 2022 New Jersey Natural Gas $ 891 $ 2,648 $ 156,252 $ 156,511 Clean Energy Ventures 7,267 (5,098 ) (5,694 ) (18,410 ) Storage and Transportation 2,358 3,526 11,051 11,113 Energy Services (1,604 ) (5,003 ) 72,054 42,504 Home Services and Other 523 215 1,307 1,113 Subtotal 9,435 (3,712 ) 234,970 192,831 Eliminations 235 161 (2,706 ) (406 ) Total $ 9,670 $ (3,551 ) $ 232,264 $ 192,425 Fiscal 2023 NFE Guidance: NJR re-affirmed its fiscal 2023 NFE guidance range of $2.62 to $2.72, which was increased by $0.20 per share in the first quarter of fiscal 2023, subject to the risks and uncertainties identified below under "Forward-Looking Statements." The following chart represents NJR’s current expected contributions from its business segments for fiscal 2023: Company Expected Fiscal 2023 Net Financial Earnings Contribution New Jersey Natural Gas 48 to 53 percent Clean Energy Ventures 18 to 20 percent Storage and Transportation 4 to 8 percent Energy Services 20 to 25 percent Home Services and Other 0 to 1 percent In providing fiscal 2023 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 reported third-quarter fiscal 2023 NFE of $0.9 million, compared to NFE of $2.6 million during the same period in fiscal 2022. The decrease in NFE for the quarter was due primarily to higher depreciation and operating expenses, partially offset by higher utility gross margin. Fiscal 2023 year-to-date NFE were $156.3 million, which was flat compared to NFE of $156.5 million during the same period in fiscal 2022. Customer Growth: NJNG added 5,892 new customers during the first nine months of fiscal 2023, compared with 5,274 during the same period in fiscal 2022. NJNG expects these new customers to contribute approximately $5.0 million of incremental utility gross margin on an annualized basis. 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 nine months of fiscal 2023, NJNG has spent $33.5 million under the program on various distribution system reinforcement projects. On March 30, 2023, NJNG submitted its annual IIP filing to the BPU requesting a rate increase for capital expenditures of $31.4 million through June 30, 2023, resulting in a $3.2 million revenue increase, with a proposed effective date of October 1, 2023. Basic Gas Supply Service (BGSS) Incentive Programs: BGSS incentive programs contributed $2.9 million to utility gross margin in the third quarter of fiscal 2023, compared with $1.9 million during the same period in fiscal 2022. Fiscal 2023 year-to-date, these programs contributed $17.4 million to utility gross margin, compared with $12.1 million during the same period in fiscal 2022. The increase in NFE for the fiscal 2023 quarter and year-to-date period was due primarily to an increase in storage incentive margin. For more information on utility gross margin, please see "Non-GAAP Financial Information" below. Energy-Efficiency Programs: SAVEGREEN invested $39.7 million during the first nine months of fiscal 2023 in energy-efficiency upgrades for customers' homes and businesses. NJNG recovered $15.9 million of its outstanding investments during the first nine months of fiscal 2023 through its energy efficiency rate. Clean Energy Ventures (CEV) CEV reported third-quarter fiscal 2023 net financial earnings of $7.3 million, compared with net financial loss of $(5.1) million during the same period in fiscal 2022. Fiscal 2023 year-to-date net financial loss was $(5.7) million, compared with net financial loss of $(18.4) million during the same period in fiscal 2022. The increase in NFE for the quarter was due primarily to a reversal of a valuation allowance on certain deferred tax assets during June 2023, which was determined to be no longer required. The increase in fiscal 2023 year-to-date NFE was due to the aforementioned reversal. Solar Investment Update: During the first nine months of fiscal 2023, CEV placed 6 commercial projects into service, adding approximately 51 MW to total installed capacity. As of June 30, 2023, CEV had approximately 441MW of solar capacity (including residential) in service in New Jersey, Rhode Island, New York and Connecticut. Subsequent to quarter end, CEV acquired two operational assets, adding approximately 21MW of installed capacity for a total of approximately 462MW (including residential) currently in service. Storage and Transportation Storage and Transportation reported third-quarter fiscal 2023 NFE of $2.4 million, compared with NFE of $3.5 million during the same period in fiscal 2022. Fiscal 2023 year-to-date NFE were $11.1 million, compared with NFE of $11.1 million during the same period in fiscal 2022. NFE for both periods decreased due to increased depreciation and interest expenses; partially offset by increased revenue. Energy Services Energy Services reported third-quarter fiscal 2023 net financial loss of $(1.6) million compared with net financial loss of $(5.0) million for the same period in fiscal 2022. Fiscal 2023 year-to-date NFE were $72.1 million, compared with NFE of $42.5 million during the same period in fiscal 2022. The improvement in NFE for the third quarter compared to the prior year period was due to higher financial margin and lower operating expenses. The increase in fiscal 2023 year-to-date NFE were due to higher natural gas price volatility during periods of colder than expected weather in December 2022 and February 2023, allowing Energy Services to capture additional margin. Home Services and Other Operations Home Services and Other Operations reported third-quarter fiscal 2023 NFE of $0.5 million compared with NFE of $0.2 million for the same period in fiscal 2022. Fiscal 2023 year-to-date NFE were $1.3 million, compared with NFE of $1.1 million during the same period in fiscal 2022. The increase in NFE for the quarter and year-to-date period was due primarily to increased installation and service contract revenue. Capital Expenditures and Cash Flows: NJR is committed to maintaining a strong financial profile: During the first nine months of fiscal 2023, capital expenditures were $370.0 million, including accruals, of which $274.9 million were related to NJNG, compared with $419.4 million, of which $194.8 million were related to NJNG, during the same period in fiscal 2022. The decrease in capital expenditures was primarily due to the completion of the Adelphia Gateway Pipeline project, which was placed into service in September 2022. During the first nine months of fiscal 2023, cash flows from operations were $387.9 million, compared with cash flows from operations of $235.9 million during the same period of fiscal 2022. The increase in operating cash flows was due to increased earnings and decreased working capital requirements as a result of a decline in gas prices during the period. 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 2023, projected NFEPS growth rates, forecasted contribution of business segments to NJR’s NFE for fiscal 2023, customer growth at NJNG and their expected contributions, infrastructure programs and investments future decarbonization opportunities including IIP, the outcome or timing of future Base Rate Cases 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 and certain transactions related to NJR's investments in the PennEast Project, 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 over 7,700 miles of natural gas transportation and distribution infrastructure to serve over 574,900 customers in New Jersey’s Monmouth, Ocean and parts of Morris, Middlesex, Sussex and Burlington counties. Clean Energy Ventures invests in, owns and operates solar projects with a total capacity of approximately 441 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 Twitter @NJNaturalGas. “Like” us on facebook.com/NewJerseyNaturalGas. NEW JERSEY RESOURCES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended June 30, June 30, (Thousands, except per share data) 2023 2022 2023 2022 OPERATING REVENUES Utility $ 144,971 $ 199,357 $ 902,880 $ 937,266 Nonutility 119,104 352,978 728,789 1,203,227 Total operating revenues 264,075 552,335 1,631,669 2,140,493 OPERATING EXPENSES Gas purchases Utility 42,344 100,277 381,160 435,438 Nonutility 75,917 290,806 468,351 980,135 Related parties 1,870 1,838 5,467 5,567 Operation and maintenance 94,213 88,373 272,809 243,143 Regulatory rider expenses 6,120 8,360 47,525 55,941 Depreciation and amortization 38,877 32,872 113,650 94,700 Total operating expenses 259,341 522,526 1,288,962 1,814,924 OPERATING INCOME 4,734 29,809 342,707 325,569 Other income, net 5,711 4,288 15,145 12,551 Interest expense, net of capitalized interest 30,119 21,411 89,871 59,814 (LOSS) INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES (19,674 ) 12,686 267,981 278,306 Income tax (benefit) provision (20,505 ) 4,434 43,059 64,051 Equity in earnings of affiliates 701 4,801 2,778 6,145 NET INCOME $ 1,532 $ 13,053 $ 227,700 $ 220,400 EARNINGS PER COMMON SHARE Basic $ 0.02 $ 0.14 $ 2.35 $ 2.29 Diluted $ 0.02 $ 0.14 $ 2.33 $ 2.28 WEIGHTED AVERAGE SHARES OUTSTANDING Basic 97,168 96,154 96,849 96,055 Diluted 97,886 96,620 97,538 96,527 RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (Unaudited) Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2023 2022 2023 2022 NEW JERSEY RESOURCES A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows: Net income $ 1,532 $ 13,053 $ 227,700 $ 220,400 Add: Unrealized gain on derivative instruments and related transactions (12,970 ) (17,891 ) (30,502 ) (58,060 ) Tax effect 3,083 4,253 7,250 13,809 Effects of economic hedging related to natural gas inventory 24,116 428 36,885 25,160 Tax effect (5,731 ) (102 ) (8,766 ) (5,979 ) Gain on equity method investment (100 ) (4,021 ) (300 ) (4,021 ) Tax effect 24 1,003 74 1,003 NFE tax adjustment (284 ) (274 ) (77 ) 113 Net financial earnings (loss) $ 9,670 $ (3,551 ) $ 232,264 $ 192,425 Weighted Average Shares Outstanding Basic 97,168 96,154 96,849 96,055 Diluted 97,886 96,620 97,538 96,527 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 $ 0.02 $ 0.14 $ 2.35 $ 2.29 Add: Unrealized gain on derivative instruments and related transactions $ (0.14 ) $ (0.19 ) $ (0.31 ) $ (0.60 ) Tax effect $ 0.03 $ 0.04 $ 0.07 $ 0.14 Effects of economic hedging related to natural gas inventory $ 0.25 $ — $ 0.38 $ 0.26 Tax effect $ (0.06 ) $ — $ (0.09 ) $ (0.06 ) Gain on equity method investment $ — $ (0.04 ) $ — $ (0.04 ) Tax effect $ — $ 0.01 $ — $ 0.01 Basic net financial earnings (loss) per share $ 0.10 $ (0.04 ) $ 2.40 $ 2.00 NATURAL GAS DISTRIBUTION A reconciliation of gross margin, the closest GAAP financial measure, to utility gross margin is as follows: Operating revenues $ 145,308 $ 199,695 $ 903,892 $ 938,279 Less: Natural gas purchases 44,669 102,624 388,134 442,441 Operating and maintenance (1) 31,436 25,034 88,441 64,924 Regulatory rider expense 6,120 8,360 47,525 55,941 Depreciation and amortization 25,825 �� 23,951 76,034 70,188 Gross margin 37,258 39,726 303,758 304,785 Add: Operating and maintenance (1) 31,436 25,034 88,441 64,924 Depreciation and amortization 25,825 23,951 76,034 70,188 Utility gross margin $ 94,519 $ 88,711 $ 468,233 $ 439,897 (1) Excludes selling, general and administrative expenses of $26.9 million and $26.5 million for the three months ended June 30, 2023 and 2022, respectively, and $78.1 million and $76.1 million for the nine months ended June 30, 2023 and 2022, respectively. RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (continued) (Unaudited) Three Months Ended Nine Months Ended (Unaudited) June 30, June 30, (Thousands) 2023 2022 2023 2022 ENERGY SERVICES A reconciliation of gross margin, the closest GAAP financial measure, to Energy Services' financial margin is as follows: Operating revenues $ 70,172 $ 307,815 $ 588,684 $ 1,089,704 Less: Natural Gas purchases 76,599 290,767 471,000 980,600 Operation and maintenance (1) 3,244 5,617 14,366 12,864 Depreciation and amortization 51 34 170 94 Gross margin (9,722 ) 11,397 103,148 96,146 Add: Operation and maintenance (1) 3,244 5,617 14,366 12,864 Depreciation and amortization 51 34 170 94 Unrealized gain on derivative instruments and related transactions (13,601 ) (16,470 ) (39,692 ) (61,671 ) Effects of economic hedging related to natural gas inventory 24,116 428 36,885 25,160 Financial margin $ 4,088 $ 1,006 $ 114,877 $ 72,593 (1) Excludes selling, general and administrative expenses of $0.5 million and $0.6 million for the three months ended June 30, 2023 and 2022, respectively, and $(1.2) million and $1.7 million for the nine months ended June 30, 2023 and 2022, respectively. A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows: Net (loss) income $ (9,336 ) $ 7,501 $ 74,271 $ 70,214 Add: Unrealized gain on derivative instruments and related transactions (13,601 ) (16,470 ) (39,692 ) (61,671 ) Tax effect 3,232 3,914 9,433 14,667 Effects of economic hedging related to natural gas 24,116 428 36,885 25,160 Tax effect (5,731 ) (102 ) (8,766 ) (5,979 ) NFE tax adjustment (284 ) (274 ) (77 ) 113 Net financial (loss) earnings $ (1,604 ) $ (5,003 ) $ 72,054 $ 42,504 FINANCIAL STATISTICS BY BUSINESS UNIT (Unaudited) Three Months Ended Nine Months Ended June 30, June 30, (Thousands, except per share data) 2023 2022 2023 2022 NEW JERSEY RESOURCES Operating Revenues Natural Gas Distribution $ 145,308 $ 199,695 $ 903,892 $ 938,279 Clean Energy Ventures 13,178 13,795 40,376 35,805 Energy Services 70,172 307,815 588,684 1,089,704 Storage and Transportation 22,201 16,390 69,926 41,875 Home Services and Other 14,955 14,220 42,669 41,393 Sub-total 265,814 551,915 1,645,547 2,147,056 Eliminations (1,739 ) 420 (13,878 ) (6,563 ) Total $ 264,075 $ 552,335 $ 1,631,669 $ 2,140,493 Operating Income (Loss) Natural Gas Distribution $ 10,391 $ 13,200 $ 225,700 $ 228,694 Clean Energy Ventures (3,344 ) (1,209 ) (8,667 ) (7,877 ) Energy Services (10,177 ) 10,833 104,370 94,479 Storage and Transportation 7,207 4,240 26,524 9,296 Home Services and Other 712 477 1,900 2,240 Sub-total 4,789 27,541 349,827 326,832 Eliminations (55 ) 2,268 (7,120 ) (1,263 ) Total $ 4,734 $ 29,809 $ 342,707 $ 325,569 Equity in Earnings of Affiliates Storage and Transportation $ 377 $ 5,274 $ 2,263 $ 7,586 Eliminations 324 (473 ) 515 (1,441 ) Total $ 701 $ 4,801 $ 2,778 $ 6,145 Net Income (Loss) Natural Gas Distribution $ 891 $ 2,648 $ 156,252 $ 156,511 Clean Energy Ventures 7,267 (5,098 ) (5,694 ) (18,410 ) Energy Services (9,336 ) 7,501 74,271 70,214 Storage and Transportation 2,434 6,544 11,277 14,131 Home Services and Other 523 215 1,307 1,113 Sub-total 1,779 11,810 237,413 223,559 Eliminations (247 ) 1,243 (9,713 ) (3,159 ) Total $ 1,532 $ 13,053 $ 227,700 $ 220,400 Net Financial Earnings (Loss) Natural Gas Distribution $ 891 $ 2,648 $ 156,252 $ 156,511 Clean Energy Ventures 7,267 (5,098 ) (5,694 ) (18,410 ) Energy Services (1,604 ) (5,003 ) 72,054 42,504 Storage and Transportation 2,358 3,526 11,051 11,113 Home Services and Other 523 215 1,307 1,113 Sub-total 9,435 (3,712 ) 234,970 192,831 Eliminations 235 161 (2,706 ) (406 ) Total $ 9,670 $ (3,551 ) $ 232,264 $ 192,425 Throughput (Bcf) NJNG, Core Customers 19.5 20.0 75.3 78.6 NJNG, Off System/Capacity Management 13.8 20.3 52.4 69.4 Energy Services Fuel Mgmt. and Wholesale Sales 24.0 40.7 109.0 180.9 Total 57.3 81.0 236.7 328.9 Common Stock Data Yield at June 30, 3.3 % 3.3 % 3.3 % 3.3 % Market Price at June 30, $ 47.20 $ 44.53 $ 47.20 $ 44.53 Shares Out. at June 30, 97,496 96,160 97,496 96,160 Market Cap. at June 30, $ 4,601,825 $ 4,282,015 $ 4,601,825 $ 4,282,015 Three Months Ended Nine Months Ended (Unaudited) June 30, June 30, (Thousands, except customer and weather data) 2023 2022 2023 2022 NATURAL GAS DISTRIBUTION Utility Gross Margin Operating revenues $ 145,308 $ 199,695 $ 903,892 $ 938,279 Less: Natural gas purchases 44,669 102,624 388,134 442,441 Operating and maintenance (1) 31,436 25,034 88,441 64,924 Regulatory rider expense 6,120 8,360 47,525 55,941 Depreciation and amortization 25,825 23,951 76,034 70,188 Gross margin 37,258 39,726 303,758 304,785 Add: Operating and maintenance (1) 31,436 25,034 88,441 64,924 Depreciation and amortization 25,825 23,951 76,034 70,188 Total Utility Gross Margin $ 94,519 $ 88,711 $ 468,233 $ 439,897 (1) Excludes selling, general and administrative expenses of $26.9 million and $26.5 million for the three months ended June 30, 2023 and 2022, respectively, and $78.1 million and $76.1 million for the nine months ended June 30, 2023 and 2022, respectively. Utility Gross Margin, Operating Income and Net Income Residential $ 59,723 $ 55,597 $ 321,017 $ 303,716 Commercial, Industrial & Other 14,897 15,387 65,742 64,609 Firm Transportation 15,815 14,729 61,503 57,101 Total Firm Margin 90,435 85,713 448,262 425,426 Interruptible 1,149 1,060 2,572 2,420 Total System Margin 91,584 86,773 450,834 427,846 Off System/Capacity Management/FRM/Storage Incentive 2,935 1,938 17,399 12,051 Total Utility Gross Margin 94,519 88,711 468,233 439,897 Operation and maintenance expense 58,303 51,560 166,499 141,015 Depreciation and amortization 25,825 23,951 76,034 70,188 Operating Income $ 10,391 $ 13,200 $ 225,700 $ 228,694 Net Income $ 891 $ 2,648 $ 156,252 $ 156,511 Net Financial Earnings $ 891 $ 2,648 $ 156,252 $ 156,511 Throughput (Bcf) Residential 5.7 6.7 39.9 42.3 Commercial, Industrial & Other 1.2 1.3 7.7 7.9 Firm Transportation 2.2 2.3 10.7 11.5 Total Firm Throughput 9.1 10.3 58.3 61.7 Interruptible 10.4 9.7 17.0 16.9 Total System Throughput 19.5 20.0 75.3 78.6 Off System/Capacity Management 13.8 20.3 52.4 69.4 Total Throughput 33.3 40.3 127.7 148.0 Customers Residential 518,359 510,931 518,359 510,931 Commercial, Industrial & Other 32,084 31,469 32,084 31,469 Firm Transportation 24,360 26,152 24,360 26,152 Total Firm Customers 574,803 568,552 574,803 568,552 Interruptible 83 29 83 29 Total System Customers 574,886 568,581 574,886 568,581 Off System/Capacity Management* 14 19 14 19 Total Customers 574,900 568,600 574,900 568,600 *The number of customers represents those active during the last month of the period. Degree Days Actual 389 452 3,869 4,097 Normal 470 483 4,474 4,477 Percent of Normal 82.8 % 93.6 % 86.5 % 91.5 % Three Months Ended Nine Months Ended (Unaudited) June 30, June 30, (Thousands, except customer, RECs and megawatt) 2023 2022 2023 2022 CLEAN ENERGY VENTURES Operating Revenues SREC sales $ 184 $ 1,010 $ 10,307 $ 7,839 TREC sales 4,720 1,709 8,007 3,574 Solar electricity sales and other 5,243 8,128 13,174 15,839 Sunlight Advantage 3,031 2,948 8,888 8,553 Total Operating Revenues $ 13,178 $ 13,795 $ 40,376 $ 35,805 Depreciation and Amortization $ 6,672 $ 5,358 $ 18,713 $ 15,902 Operating Loss $ (3,344 ) $ (1,209 ) $ (8,667 ) $ (7,877 ) Income Tax Benefit $ (18,237 ) $ (1,526 ) $ (23,079 ) $ (5,524 ) Net Income (Loss) $ 7,267 $ (5,098 ) $ (5,694 ) $ (18,410 ) Net Financial Earnings (Loss) $ 7,267 $ (5,098 ) $ (5,694 ) $ (18,410 ) Solar Renewable Energy Certificates Generated 130,978 120,779 292,753 278,681 Solar Renewable Energy Certificates Sold 1,314 6,573 48,871 38,773 Transition Renewable Energy Certificates Generated 31,144 12,210 52,013 25,471 Solar Renewable Energy Certificates II Generated 2,973 — 5,803 — Solar Megawatts Under Construction 13.8 75.5 13.8 75.5 ENERGY SERVICES Operating Income Operating revenues $ 70,172 $ 307,815 $ 588,684 $ 1,089,704 Less: Gas purchases 76,599 290,767 471,000 980,600 Operation and maintenance expense 3,699 6,181 13,144 14,531 Depreciation and amortization 51 34 170 94 Operating (Loss) Income $ (10,177 ) $ 10,833 $ 104,370 $ 94,479 Net (Loss) Income $ (9,336 ) $ 7,501 $ 74,271 $ 70,214 Financial Margin $ 4,088 $ 1,006 $ 114,877 $ 72,593 Net Financial (Loss) Earnings $ (1,604 ) $ (5,003 ) $ 72,054 $ 42,504 Gas Sold and Managed (Bcf) 24.0 40.7 109.0 180.9 STORAGE AND TRANSPORTATION Operating Revenues $ 22,201 $ 16,390 $ 69,926 $ 41,875 Equity in Earnings of Affiliates $ 377 $ 5,274 $ 2,263 $ 7,586 Operation and Maintenance Expense $ 8,687 $ 7,840 $ 23,951 $ 22,524 Other Income, Net $ 1,815 $ 1,882 $ 4,829 $ 7,141 Interest Expense $ 6,430 $ 3,177 $ 19,265 $ 7,160 Income Tax Provision $ 535 $ 1,675 $ 3,074 $ 2,732 Net Income $ 2,434 $ 6,544 $ 11,277 $ 14,131 Net Financial Earnings $ 2,358 $ 3,526 $ 11,051 $ 11,113 HOME SERVICES AND OTHER Operating Revenues $ 14,955 $ 14,220 $ 42,669 $ 41,393 Operating Income $ 712 $ 477 $ 1,900 $ 2,240 Net Income $ 523 $ 215 $ 1,307 $ 1,113 Net Financial Earnings $ 523 $ 215 $ 1,307 $ 1,113 Total Service Contract Customers at Jun 30 101,748 105,022 101,748 105,022 View source version on businesswire.com: https://www.businesswire.com/news/home/20230802209783/en/Contacts Media Contact: Mike Kinney 732-938-1031 mkinney@njresources.com Investor Contact: Adam Prior 732-938-1145 aprior@njresources.com
Today, New Jersey Resources Corporation (NYSE: NJR) reported results for the third quarter of fiscal 2023. Highlights include: Consolidated net income of $1.5 million, compared with net income of $13.1 million in the third quarter of fiscal 2022 Consolidated net financial earnings (NFE), a non-GAAP financial measure, of $9.7 million, or $0.10 per share, compared to a net financial loss of $(3.6) million, or $(0.04) per share, in the third quarter of fiscal 2022 Re-affirmed fiscal 2023 net financial earnings per share (NFEPS) guidance range of $2.62 to $2.72 Maintains long-term projected NFEPS growth rate of 7 to 9 percent(1) Third-quarter fiscal 2023 net income totaled $1.5 million, or $0.02 per share, compared with net income of $13.1 million, or $0.14 per share, during the same period in fiscal 2022. Fiscal 2023 year-to-date net income totaled $227.7 million, or $2.35 per share, compared with $220.4 million, or $2.29 per share, for the same period in fiscal 2022. Third-quarter fiscal 2023 NFE totaled $9.7 million, or $0.10 per share, compared to a net financial loss of $(3.6) million, or $(0.04) per share, during the same period in fiscal 2022. Fiscal 2023 year-to-date NFE totaled $232.3 million, or $2.40 per share, compared with $192.4 million, or $2.00 per share, for the same period in fiscal 2022. Steve Westhoven, President and CEO, stated, "We are on track to achieve net financial earnings within our fiscal 2023 guidance range, which was increased by $0.20 earlier this year, reflecting the strength of our diversified business model. We have continued our momentum at CEV, increasing our in-service capacity and growing our pipeline, with fiscal 2023 representing the largest year of capacity growth in CEV's history." Key Performance Metrics Three Months Ended Nine Months Ended June 30, June 30, ($ in Thousands) 2023 2022 2023 2022 Net income $ 1,532 $ 13,053 $ 227,700 $ 220,400 Basic EPS $ 0.02 $ 0.14 $ 2.35 $ 2.29 Net financial earnings (loss) $ 9,670 $ (3,551 ) $ 232,264 $ 192,425 Basic net financial earnings (loss) per share $ 0.10 $ (0.04 ) $ 2.40 $ 2.00 (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 A reconciliation of net income to NFE for the three and nine months ended June 30, 2023 and 2022, is provided below. Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2023 2022 2023 2022 Net income $ 1,532 $ 13,053 $ 227,700 $ 220,400 Add: Unrealized gain on derivative instruments and related transactions (12,970 ) (17,891 ) (30,502 ) (58,060 ) Tax effect 3,083 4,253 7,250 13,809 Effects of economic hedging related to natural gas inventory 24,116 428 36,885 25,160 Tax effect (5,731 ) (102 ) (8,766 ) (5,979 ) Gain on equity method investment (100 ) (4,021 ) (300 ) (4,021 ) Tax effect 24 1,003 74 1,003 NFE tax adjustment (284 ) (274 ) (77 ) 113 Net financial earnings (loss) $ 9,670 $ (3,551 ) $ 232,264 $ 192,425 Weighted Average Shares Outstanding Basic 97,168 96,154 96,849 96,055 Diluted 97,886 96,620 97,538 96,527 Basic earnings per share $ 0.02 $ 0.14 $ 2.35 $ 2.29 Add: Unrealized gain on derivative instruments and related transactions (0.14 ) (0.19 ) (0.31 ) (0.60 ) Tax effect 0.03 0.04 0.07 0.14 Effects of economic hedging related to natural gas inventory 0.25 — 0.38 0.26 Tax effect (0.06 ) — (0.09 ) (0.06 ) Gain on equity method investment — (0.04 ) — (0.04 ) Tax effect — 0.01 — 0.01 Basic net financial earnings (loss) per share $ 0.10 $ (0.04 ) $ 2.40 $ 2.00 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 for the three and nine months ended June 30, 2023 and 2022, is provided below. Net financial earnings (loss) by Business Unit Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2023 2022 2023 2022 New Jersey Natural Gas $ 891 $ 2,648 $ 156,252 $ 156,511 Clean Energy Ventures 7,267 (5,098 ) (5,694 ) (18,410 ) Storage and Transportation 2,358 3,526 11,051 11,113 Energy Services (1,604 ) (5,003 ) 72,054 42,504 Home Services and Other 523 215 1,307 1,113 Subtotal 9,435 (3,712 ) 234,970 192,831 Eliminations 235 161 (2,706 ) (406 ) Total $ 9,670 $ (3,551 ) $ 232,264 $ 192,425 Fiscal 2023 NFE Guidance: NJR re-affirmed its fiscal 2023 NFE guidance range of $2.62 to $2.72, which was increased by $0.20 per share in the first quarter of fiscal 2023, subject to the risks and uncertainties identified below under "Forward-Looking Statements." The following chart represents NJR’s current expected contributions from its business segments for fiscal 2023: Company Expected Fiscal 2023 Net Financial Earnings Contribution New Jersey Natural Gas 48 to 53 percent Clean Energy Ventures 18 to 20 percent Storage and Transportation 4 to 8 percent Energy Services 20 to 25 percent Home Services and Other 0 to 1 percent In providing fiscal 2023 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 reported third-quarter fiscal 2023 NFE of $0.9 million, compared to NFE of $2.6 million during the same period in fiscal 2022. The decrease in NFE for the quarter was due primarily to higher depreciation and operating expenses, partially offset by higher utility gross margin. Fiscal 2023 year-to-date NFE were $156.3 million, which was flat compared to NFE of $156.5 million during the same period in fiscal 2022. Customer Growth: NJNG added 5,892 new customers during the first nine months of fiscal 2023, compared with 5,274 during the same period in fiscal 2022. NJNG expects these new customers to contribute approximately $5.0 million of incremental utility gross margin on an annualized basis. 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 nine months of fiscal 2023, NJNG has spent $33.5 million under the program on various distribution system reinforcement projects. On March 30, 2023, NJNG submitted its annual IIP filing to the BPU requesting a rate increase for capital expenditures of $31.4 million through June 30, 2023, resulting in a $3.2 million revenue increase, with a proposed effective date of October 1, 2023. Basic Gas Supply Service (BGSS) Incentive Programs: BGSS incentive programs contributed $2.9 million to utility gross margin in the third quarter of fiscal 2023, compared with $1.9 million during the same period in fiscal 2022. Fiscal 2023 year-to-date, these programs contributed $17.4 million to utility gross margin, compared with $12.1 million during the same period in fiscal 2022. The increase in NFE for the fiscal 2023 quarter and year-to-date period was due primarily to an increase in storage incentive margin. For more information on utility gross margin, please see "Non-GAAP Financial Information" below. Energy-Efficiency Programs: SAVEGREEN invested $39.7 million during the first nine months of fiscal 2023 in energy-efficiency upgrades for customers' homes and businesses. NJNG recovered $15.9 million of its outstanding investments during the first nine months of fiscal 2023 through its energy efficiency rate. Clean Energy Ventures (CEV) CEV reported third-quarter fiscal 2023 net financial earnings of $7.3 million, compared with net financial loss of $(5.1) million during the same period in fiscal 2022. Fiscal 2023 year-to-date net financial loss was $(5.7) million, compared with net financial loss of $(18.4) million during the same period in fiscal 2022. The increase in NFE for the quarter was due primarily to a reversal of a valuation allowance on certain deferred tax assets during June 2023, which was determined to be no longer required. The increase in fiscal 2023 year-to-date NFE was due to the aforementioned reversal. Solar Investment Update: During the first nine months of fiscal 2023, CEV placed 6 commercial projects into service, adding approximately 51 MW to total installed capacity. As of June 30, 2023, CEV had approximately 441MW of solar capacity (including residential) in service in New Jersey, Rhode Island, New York and Connecticut. Subsequent to quarter end, CEV acquired two operational assets, adding approximately 21MW of installed capacity for a total of approximately 462MW (including residential) currently in service. Storage and Transportation Storage and Transportation reported third-quarter fiscal 2023 NFE of $2.4 million, compared with NFE of $3.5 million during the same period in fiscal 2022. Fiscal 2023 year-to-date NFE were $11.1 million, compared with NFE of $11.1 million during the same period in fiscal 2022. NFE for both periods decreased due to increased depreciation and interest expenses; partially offset by increased revenue. Energy Services Energy Services reported third-quarter fiscal 2023 net financial loss of $(1.6) million compared with net financial loss of $(5.0) million for the same period in fiscal 2022. Fiscal 2023 year-to-date NFE were $72.1 million, compared with NFE of $42.5 million during the same period in fiscal 2022. The improvement in NFE for the third quarter compared to the prior year period was due to higher financial margin and lower operating expenses. The increase in fiscal 2023 year-to-date NFE were due to higher natural gas price volatility during periods of colder than expected weather in December 2022 and February 2023, allowing Energy Services to capture additional margin. Home Services and Other Operations Home Services and Other Operations reported third-quarter fiscal 2023 NFE of $0.5 million compared with NFE of $0.2 million for the same period in fiscal 2022. Fiscal 2023 year-to-date NFE were $1.3 million, compared with NFE of $1.1 million during the same period in fiscal 2022. The increase in NFE for the quarter and year-to-date period was due primarily to increased installation and service contract revenue. Capital Expenditures and Cash Flows: NJR is committed to maintaining a strong financial profile: During the first nine months of fiscal 2023, capital expenditures were $370.0 million, including accruals, of which $274.9 million were related to NJNG, compared with $419.4 million, of which $194.8 million were related to NJNG, during the same period in fiscal 2022. The decrease in capital expenditures was primarily due to the completion of the Adelphia Gateway Pipeline project, which was placed into service in September 2022. During the first nine months of fiscal 2023, cash flows from operations were $387.9 million, compared with cash flows from operations of $235.9 million during the same period of fiscal 2022. The increase in operating cash flows was due to increased earnings and decreased working capital requirements as a result of a decline in gas prices during the period. 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 2023, projected NFEPS growth rates, forecasted contribution of business segments to NJR’s NFE for fiscal 2023, customer growth at NJNG and their expected contributions, infrastructure programs and investments future decarbonization opportunities including IIP, the outcome or timing of future Base Rate Cases 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 and certain transactions related to NJR's investments in the PennEast Project, 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 over 7,700 miles of natural gas transportation and distribution infrastructure to serve over 574,900 customers in New Jersey’s Monmouth, Ocean and parts of Morris, Middlesex, Sussex and Burlington counties. Clean Energy Ventures invests in, owns and operates solar projects with a total capacity of approximately 441 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 Twitter @NJNaturalGas. “Like” us on facebook.com/NewJerseyNaturalGas. NEW JERSEY RESOURCES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended June 30, June 30, (Thousands, except per share data) 2023 2022 2023 2022 OPERATING REVENUES Utility $ 144,971 $ 199,357 $ 902,880 $ 937,266 Nonutility 119,104 352,978 728,789 1,203,227 Total operating revenues 264,075 552,335 1,631,669 2,140,493 OPERATING EXPENSES Gas purchases Utility 42,344 100,277 381,160 435,438 Nonutility 75,917 290,806 468,351 980,135 Related parties 1,870 1,838 5,467 5,567 Operation and maintenance 94,213 88,373 272,809 243,143 Regulatory rider expenses 6,120 8,360 47,525 55,941 Depreciation and amortization 38,877 32,872 113,650 94,700 Total operating expenses 259,341 522,526 1,288,962 1,814,924 OPERATING INCOME 4,734 29,809 342,707 325,569 Other income, net 5,711 4,288 15,145 12,551 Interest expense, net of capitalized interest 30,119 21,411 89,871 59,814 (LOSS) INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES (19,674 ) 12,686 267,981 278,306 Income tax (benefit) provision (20,505 ) 4,434 43,059 64,051 Equity in earnings of affiliates 701 4,801 2,778 6,145 NET INCOME $ 1,532 $ 13,053 $ 227,700 $ 220,400 EARNINGS PER COMMON SHARE Basic $ 0.02 $ 0.14 $ 2.35 $ 2.29 Diluted $ 0.02 $ 0.14 $ 2.33 $ 2.28 WEIGHTED AVERAGE SHARES OUTSTANDING Basic 97,168 96,154 96,849 96,055 Diluted 97,886 96,620 97,538 96,527 RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (Unaudited) Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2023 2022 2023 2022 NEW JERSEY RESOURCES A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows: Net income $ 1,532 $ 13,053 $ 227,700 $ 220,400 Add: Unrealized gain on derivative instruments and related transactions (12,970 ) (17,891 ) (30,502 ) (58,060 ) Tax effect 3,083 4,253 7,250 13,809 Effects of economic hedging related to natural gas inventory 24,116 428 36,885 25,160 Tax effect (5,731 ) (102 ) (8,766 ) (5,979 ) Gain on equity method investment (100 ) (4,021 ) (300 ) (4,021 ) Tax effect 24 1,003 74 1,003 NFE tax adjustment (284 ) (274 ) (77 ) 113 Net financial earnings (loss) $ 9,670 $ (3,551 ) $ 232,264 $ 192,425 Weighted Average Shares Outstanding Basic 97,168 96,154 96,849 96,055 Diluted 97,886 96,620 97,538 96,527 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 $ 0.02 $ 0.14 $ 2.35 $ 2.29 Add: Unrealized gain on derivative instruments and related transactions $ (0.14 ) $ (0.19 ) $ (0.31 ) $ (0.60 ) Tax effect $ 0.03 $ 0.04 $ 0.07 $ 0.14 Effects of economic hedging related to natural gas inventory $ 0.25 $ — $ 0.38 $ 0.26 Tax effect $ (0.06 ) $ — $ (0.09 ) $ (0.06 ) Gain on equity method investment $ — $ (0.04 ) $ — $ (0.04 ) Tax effect $ — $ 0.01 $ — $ 0.01 Basic net financial earnings (loss) per share $ 0.10 $ (0.04 ) $ 2.40 $ 2.00 NATURAL GAS DISTRIBUTION A reconciliation of gross margin, the closest GAAP financial measure, to utility gross margin is as follows: Operating revenues $ 145,308 $ 199,695 $ 903,892 $ 938,279 Less: Natural gas purchases 44,669 102,624 388,134 442,441 Operating and maintenance (1) 31,436 25,034 88,441 64,924 Regulatory rider expense 6,120 8,360 47,525 55,941 Depreciation and amortization 25,825 �� 23,951 76,034 70,188 Gross margin 37,258 39,726 303,758 304,785 Add: Operating and maintenance (1) 31,436 25,034 88,441 64,924 Depreciation and amortization 25,825 23,951 76,034 70,188 Utility gross margin $ 94,519 $ 88,711 $ 468,233 $ 439,897 (1) Excludes selling, general and administrative expenses of $26.9 million and $26.5 million for the three months ended June 30, 2023 and 2022, respectively, and $78.1 million and $76.1 million for the nine months ended June 30, 2023 and 2022, respectively. RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (continued) (Unaudited) Three Months Ended Nine Months Ended (Unaudited) June 30, June 30, (Thousands) 2023 2022 2023 2022 ENERGY SERVICES A reconciliation of gross margin, the closest GAAP financial measure, to Energy Services' financial margin is as follows: Operating revenues $ 70,172 $ 307,815 $ 588,684 $ 1,089,704 Less: Natural Gas purchases 76,599 290,767 471,000 980,600 Operation and maintenance (1) 3,244 5,617 14,366 12,864 Depreciation and amortization 51 34 170 94 Gross margin (9,722 ) 11,397 103,148 96,146 Add: Operation and maintenance (1) 3,244 5,617 14,366 12,864 Depreciation and amortization 51 34 170 94 Unrealized gain on derivative instruments and related transactions (13,601 ) (16,470 ) (39,692 ) (61,671 ) Effects of economic hedging related to natural gas inventory 24,116 428 36,885 25,160 Financial margin $ 4,088 $ 1,006 $ 114,877 $ 72,593 (1) Excludes selling, general and administrative expenses of $0.5 million and $0.6 million for the three months ended June 30, 2023 and 2022, respectively, and $(1.2) million and $1.7 million for the nine months ended June 30, 2023 and 2022, respectively. A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows: Net (loss) income $ (9,336 ) $ 7,501 $ 74,271 $ 70,214 Add: Unrealized gain on derivative instruments and related transactions (13,601 ) (16,470 ) (39,692 ) (61,671 ) Tax effect 3,232 3,914 9,433 14,667 Effects of economic hedging related to natural gas 24,116 428 36,885 25,160 Tax effect (5,731 ) (102 ) (8,766 ) (5,979 ) NFE tax adjustment (284 ) (274 ) (77 ) 113 Net financial (loss) earnings $ (1,604 ) $ (5,003 ) $ 72,054 $ 42,504 FINANCIAL STATISTICS BY BUSINESS UNIT (Unaudited) Three Months Ended Nine Months Ended June 30, June 30, (Thousands, except per share data) 2023 2022 2023 2022 NEW JERSEY RESOURCES Operating Revenues Natural Gas Distribution $ 145,308 $ 199,695 $ 903,892 $ 938,279 Clean Energy Ventures 13,178 13,795 40,376 35,805 Energy Services 70,172 307,815 588,684 1,089,704 Storage and Transportation 22,201 16,390 69,926 41,875 Home Services and Other 14,955 14,220 42,669 41,393 Sub-total 265,814 551,915 1,645,547 2,147,056 Eliminations (1,739 ) 420 (13,878 ) (6,563 ) Total $ 264,075 $ 552,335 $ 1,631,669 $ 2,140,493 Operating Income (Loss) Natural Gas Distribution $ 10,391 $ 13,200 $ 225,700 $ 228,694 Clean Energy Ventures (3,344 ) (1,209 ) (8,667 ) (7,877 ) Energy Services (10,177 ) 10,833 104,370 94,479 Storage and Transportation 7,207 4,240 26,524 9,296 Home Services and Other 712 477 1,900 2,240 Sub-total 4,789 27,541 349,827 326,832 Eliminations (55 ) 2,268 (7,120 ) (1,263 ) Total $ 4,734 $ 29,809 $ 342,707 $ 325,569 Equity in Earnings of Affiliates Storage and Transportation $ 377 $ 5,274 $ 2,263 $ 7,586 Eliminations 324 (473 ) 515 (1,441 ) Total $ 701 $ 4,801 $ 2,778 $ 6,145 Net Income (Loss) Natural Gas Distribution $ 891 $ 2,648 $ 156,252 $ 156,511 Clean Energy Ventures 7,267 (5,098 ) (5,694 ) (18,410 ) Energy Services (9,336 ) 7,501 74,271 70,214 Storage and Transportation 2,434 6,544 11,277 14,131 Home Services and Other 523 215 1,307 1,113 Sub-total 1,779 11,810 237,413 223,559 Eliminations (247 ) 1,243 (9,713 ) (3,159 ) Total $ 1,532 $ 13,053 $ 227,700 $ 220,400 Net Financial Earnings (Loss) Natural Gas Distribution $ 891 $ 2,648 $ 156,252 $ 156,511 Clean Energy Ventures 7,267 (5,098 ) (5,694 ) (18,410 ) Energy Services (1,604 ) (5,003 ) 72,054 42,504 Storage and Transportation 2,358 3,526 11,051 11,113 Home Services and Other 523 215 1,307 1,113 Sub-total 9,435 (3,712 ) 234,970 192,831 Eliminations 235 161 (2,706 ) (406 ) Total $ 9,670 $ (3,551 ) $ 232,264 $ 192,425 Throughput (Bcf) NJNG, Core Customers 19.5 20.0 75.3 78.6 NJNG, Off System/Capacity Management 13.8 20.3 52.4 69.4 Energy Services Fuel Mgmt. and Wholesale Sales 24.0 40.7 109.0 180.9 Total 57.3 81.0 236.7 328.9 Common Stock Data Yield at June 30, 3.3 % 3.3 % 3.3 % 3.3 % Market Price at June 30, $ 47.20 $ 44.53 $ 47.20 $ 44.53 Shares Out. at June 30, 97,496 96,160 97,496 96,160 Market Cap. at June 30, $ 4,601,825 $ 4,282,015 $ 4,601,825 $ 4,282,015 Three Months Ended Nine Months Ended (Unaudited) June 30, June 30, (Thousands, except customer and weather data) 2023 2022 2023 2022 NATURAL GAS DISTRIBUTION Utility Gross Margin Operating revenues $ 145,308 $ 199,695 $ 903,892 $ 938,279 Less: Natural gas purchases 44,669 102,624 388,134 442,441 Operating and maintenance (1) 31,436 25,034 88,441 64,924 Regulatory rider expense 6,120 8,360 47,525 55,941 Depreciation and amortization 25,825 23,951 76,034 70,188 Gross margin 37,258 39,726 303,758 304,785 Add: Operating and maintenance (1) 31,436 25,034 88,441 64,924 Depreciation and amortization 25,825 23,951 76,034 70,188 Total Utility Gross Margin $ 94,519 $ 88,711 $ 468,233 $ 439,897 (1) Excludes selling, general and administrative expenses of $26.9 million and $26.5 million for the three months ended June 30, 2023 and 2022, respectively, and $78.1 million and $76.1 million for the nine months ended June 30, 2023 and 2022, respectively. Utility Gross Margin, Operating Income and Net Income Residential $ 59,723 $ 55,597 $ 321,017 $ 303,716 Commercial, Industrial & Other 14,897 15,387 65,742 64,609 Firm Transportation 15,815 14,729 61,503 57,101 Total Firm Margin 90,435 85,713 448,262 425,426 Interruptible 1,149 1,060 2,572 2,420 Total System Margin 91,584 86,773 450,834 427,846 Off System/Capacity Management/FRM/Storage Incentive 2,935 1,938 17,399 12,051 Total Utility Gross Margin 94,519 88,711 468,233 439,897 Operation and maintenance expense 58,303 51,560 166,499 141,015 Depreciation and amortization 25,825 23,951 76,034 70,188 Operating Income $ 10,391 $ 13,200 $ 225,700 $ 228,694 Net Income $ 891 $ 2,648 $ 156,252 $ 156,511 Net Financial Earnings $ 891 $ 2,648 $ 156,252 $ 156,511 Throughput (Bcf) Residential 5.7 6.7 39.9 42.3 Commercial, Industrial & Other 1.2 1.3 7.7 7.9 Firm Transportation 2.2 2.3 10.7 11.5 Total Firm Throughput 9.1 10.3 58.3 61.7 Interruptible 10.4 9.7 17.0 16.9 Total System Throughput 19.5 20.0 75.3 78.6 Off System/Capacity Management 13.8 20.3 52.4 69.4 Total Throughput 33.3 40.3 127.7 148.0 Customers Residential 518,359 510,931 518,359 510,931 Commercial, Industrial & Other 32,084 31,469 32,084 31,469 Firm Transportation 24,360 26,152 24,360 26,152 Total Firm Customers 574,803 568,552 574,803 568,552 Interruptible 83 29 83 29 Total System Customers 574,886 568,581 574,886 568,581 Off System/Capacity Management* 14 19 14 19 Total Customers 574,900 568,600 574,900 568,600 *The number of customers represents those active during the last month of the period. Degree Days Actual 389 452 3,869 4,097 Normal 470 483 4,474 4,477 Percent of Normal 82.8 % 93.6 % 86.5 % 91.5 % Three Months Ended Nine Months Ended (Unaudited) June 30, June 30, (Thousands, except customer, RECs and megawatt) 2023 2022 2023 2022 CLEAN ENERGY VENTURES Operating Revenues SREC sales $ 184 $ 1,010 $ 10,307 $ 7,839 TREC sales 4,720 1,709 8,007 3,574 Solar electricity sales and other 5,243 8,128 13,174 15,839 Sunlight Advantage 3,031 2,948 8,888 8,553 Total Operating Revenues $ 13,178 $ 13,795 $ 40,376 $ 35,805 Depreciation and Amortization $ 6,672 $ 5,358 $ 18,713 $ 15,902 Operating Loss $ (3,344 ) $ (1,209 ) $ (8,667 ) $ (7,877 ) Income Tax Benefit $ (18,237 ) $ (1,526 ) $ (23,079 ) $ (5,524 ) Net Income (Loss) $ 7,267 $ (5,098 ) $ (5,694 ) $ (18,410 ) Net Financial Earnings (Loss) $ 7,267 $ (5,098 ) $ (5,694 ) $ (18,410 ) Solar Renewable Energy Certificates Generated 130,978 120,779 292,753 278,681 Solar Renewable Energy Certificates Sold 1,314 6,573 48,871 38,773 Transition Renewable Energy Certificates Generated 31,144 12,210 52,013 25,471 Solar Renewable Energy Certificates II Generated 2,973 — 5,803 — Solar Megawatts Under Construction 13.8 75.5 13.8 75.5 ENERGY SERVICES Operating Income Operating revenues $ 70,172 $ 307,815 $ 588,684 $ 1,089,704 Less: Gas purchases 76,599 290,767 471,000 980,600 Operation and maintenance expense 3,699 6,181 13,144 14,531 Depreciation and amortization 51 34 170 94 Operating (Loss) Income $ (10,177 ) $ 10,833 $ 104,370 $ 94,479 Net (Loss) Income $ (9,336 ) $ 7,501 $ 74,271 $ 70,214 Financial Margin $ 4,088 $ 1,006 $ 114,877 $ 72,593 Net Financial (Loss) Earnings $ (1,604 ) $ (5,003 ) $ 72,054 $ 42,504 Gas Sold and Managed (Bcf) 24.0 40.7 109.0 180.9 STORAGE AND TRANSPORTATION Operating Revenues $ 22,201 $ 16,390 $ 69,926 $ 41,875 Equity in Earnings of Affiliates $ 377 $ 5,274 $ 2,263 $ 7,586 Operation and Maintenance Expense $ 8,687 $ 7,840 $ 23,951 $ 22,524 Other Income, Net $ 1,815 $ 1,882 $ 4,829 $ 7,141 Interest Expense $ 6,430 $ 3,177 $ 19,265 $ 7,160 Income Tax Provision $ 535 $ 1,675 $ 3,074 $ 2,732 Net Income $ 2,434 $ 6,544 $ 11,277 $ 14,131 Net Financial Earnings $ 2,358 $ 3,526 $ 11,051 $ 11,113 HOME SERVICES AND OTHER Operating Revenues $ 14,955 $ 14,220 $ 42,669 $ 41,393 Operating Income $ 712 $ 477 $ 1,900 $ 2,240 Net Income $ 523 $ 215 $ 1,307 $ 1,113 Net Financial Earnings $ 523 $ 215 $ 1,307 $ 1,113 Total Service Contract Customers at Jun 30 101,748 105,022 101,748 105,022 View source version on businesswire.com: https://www.businesswire.com/news/home/20230802209783/en/
Media Contact: Mike Kinney 732-938-1031 mkinney@njresources.com Investor Contact: Adam Prior 732-938-1145 aprior@njresources.com