8-K
New Jersey Resources Corp (NJR)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): June 20, 2023
NEW JERSEY RESOURCES CORPORATION
(Exact name of registrant as specified in its charter)
| New Jersey | 001-8359 | 22-2376465 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
| 1415 Wyckoff Road | ||
| --- | --- | |
| Wall, New Jersey | 07719 | |
| (Address of principal executive offices) | (Zip Code) |
(732) 938-1480
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock - $2.50 par value | NJR | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 7.01 | Regulation FD Disclosure |
|---|
On June 20, 2023, New Jersey Resources Corporation is presenting a corporate overview to its local shareholders in attendance as part of its inaugural Shareholder Appreciation Day in Farmingdale, New Jersey. The slides to be used at the meeting are furnished herewith as Exhibit 99.1 and are incorporated by reference into Item 7.01 of this Current Report on Form 8-K.
The information in Item 7.01 of this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section and shall not be deemed to be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.
| Item 9.01. | Financial Statements and Exhibits |
|---|---|
| Exhibit<br><br> <br>Number | Description |
| --- | --- |
| 99.1 | Presentation to its local shareholders in attendance at Shareholder Appreciation Day on June 20, 2023 (furnished, not filed) |
| 104 | Cover page in Inline XBRL format |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| NEW JERSEY RESOURCES CORPORATION | ||
|---|---|---|
| Date: June 20, 2023 | ||
| By: | /s/ Roberto F. Bel | |
| Roberto F. Bel<br><br> <br>Senior Vice President and<br><br> <br>Chief Financial Officer |
Exhibit 99.1
June 20, 2023 Shareholder Appreciation Day
Forward-Looking Statements and Non-GAAP Measures Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. NJR cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJR’s ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants. Words such as “anticipates,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “believes,” “should” and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management’s current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon NJR. There can be no assurance that future developments will be in accordance with management’s expectations, assumptions and beliefs or that the effect of future developments on NJR will be those anticipated by management. Forward-looking statements in this earnings release include, but are not limited to, certain statements regarding NJR’s NFEPS guidance for fiscal 2023, including NFEPS guidance by Segment, fiscal 2024 long term growth range, long term annual growth projections and targets, projections of dividend and financing activities, forecasted contribution of business segments to NJR’s NFE for fiscal 2023, NJR’s capital plan, customer growth at NJNG, future NJR and NJNG capital expenditures, potential CEV capital projects, announced charitable endowment, project pipeline through Fiscal 2027, total expected shareholder return projections, CEV revenue and service projections, Asset Management Agreements, emissions reduction strategies and clean energy goals, including New Jersey’s Clean Energy Policy Landscape, the SAVEGREEN program, Decarbonization efforts, including the Howell Green Hydrogen Project, our Storage and Transportation segment, environmental social and governance efforts, the Inflation Reduction Act and its application, rising interest rates, and other legal and regulatory expectations. Additional information and factors that could cause actual results to differ materially from NJR’s expectations are contained in NJR’s filings with the SEC, including NJR’s Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC’s web site, http://www.sec.gov. Information included in this presentation is representative as of today only and while NJR periodically reassesses material trends and uncertainties affecting NJR's results of operations and financial condition in connection with its preparation of management's discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, NJR does not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events. Non-GAAP Measures Non-GAAP Measures This presentation includes the non-GAAP financial measures NFE/net financial loss, NFE per basic share, financial margin, utility gross margin, adjusted funds from operations and adjusted debt. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. As an indicator of NJR’s operating performance, these measures should not be considered an alternative to, or more meaningful than, net income or operating revenues as determined in accordance with GAAP. This information has been provided pursuant to the requirements of SEC Regulation G. NFE and financial margin exclude unrealized gains or losses on derivative instruments related to NJR’s unregulated subsidiaries and certain realized gains and losses on derivative instruments related to natural gas that has been placed into storage at Energy Services 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 NFE/net financial loss, utility gross margin, financial margin, adjusted funds from operations and adjusted debt, as supplemental measures to other GAAP results to provide a more complete understanding of the Company’s performance. Management believes these non-GAAP measures are more reflective of the Company’s business model, provide transparency to investors and enable period-to-period comparability of financial performance. In providing NFE guidance, management is aware that there could be differences between reported GAAP earnings and NFE/net financial loss due to matters such as, but not limited to, the positions of our energy-related derivatives. Management is not able to reasonably estimate the aggregate impact or significance of these items on reported earnings and therefore is not able to provide a reconciliation to the corresponding GAAP equivalent for its operating earnings guidance without unreasonable efforts. In addition, in making forecasts relating to S&T’s Adjusted EBITDA and adjusted funds from operations and adjusted debt, management is aware that there could be differences between reported GAAP earnings, cash flows from operations and total long-term and short-term debt due to matters such as, but not limited to, the unpredictability and variability of future earnings, working capital and cash positions. Management is not able to reasonably estimate the aggregate impact or significance of these items on reported GAAP measures and therefore is not able to provide a reconciliation to the corresponding GAAP equivalent for such forecasts without unreasonable efforts. NFE/net financial loss, utility gross margin and financial margin are discussed more fully in Item 7 of our Report on Form 10-K and, we have provided presentations of the most directly comparable GAAP financial measure and a reconciliation of our non-GAAP financial measures, NFE/net financial loss, utility gross margin, financial margin, adjusted funds from operations and adjusted debt, to the most directly comparable GAAP financial measures, in the appendix to this presentation. This information has been provided pursuant to the requirements of SEC Regulation G.
3 1 Business Overview NJR’s Clean Energy StrategySteve Westhoven | President and CEO 2 New Jersey Natural Gas: Building for the Utility of the FuturePatrick Migliaccio | COO 3 Driving Growth And Adaptability Through Diversification Amy Cradic | COO 4 Planning for Growth Roberto Bel | CFO Conclusion and Q&A Agenda
Steve Westhoven President and CEO New Jersey Resources
2023 NJR Innovation Award Winner – Chris Chen Awarded to Individuals Fostering a Culture Built Around Innovation Christopher Chen Manager NJNG Business Development
The Shareholder Appreciation Day An Opportunity to Say “Thank You” What Led Us Here Today 1982 - 2019 2020 2023 NJR Welcomed Shareholders Regularly to its Annual Meeting Each January COVID-19 Restrictions Led to a Shift to Virtual Annual Meetings While Efficient, the Virtual Format Left a Void for Both our Shareholders and Management This Shareholder Day is an Opportunity to Meet with our Loyal Shareholders in a Format that is Informative and Direct
NJR: Share Price* NYSE:NJR $47.49 Stock Price 97.0M Shares Outstanding $4.6B Market Capitalization * Share Price and Market Capitalization at 6/16/2023 October 2022 November 2022 December 2022 January 2023 March 2023 February 2023 April 2023 May 2023 June 2023
NJR: Business Portfolio Natural Gas and Renewable Fuel Distribution; Solar Investments, Wholesale Energy Markets; Storage & Transportation Infrastructure; Retail Operations Operates and maintains approximately 7,700 miles of Natural Gas transportation and distribution infrastructure serving over 575,000 customers in New Jersey New Jersey Natural Gas (NJNG) Clean Energy Ventures (CEV) Storage and Transportation (S&T) Energy Services (ES) NJR Home Services (NJRHS) CEV develops, invests in, owns and operates energy projects that generate clean power, provide low carbon energy solutions and help our customers save energy and money in a sustainable way Invests in, owns and operates midstream assets including natural gas pipeline and storage facilities. Our companies provide transportation and storage services to a broad range of customers in the natural gas market Provides unregulated, wholesale natural gas to consumers across the Gulf Coast, Eastern Seaboard, Southwest, Mid-continent and Canada. In addition to energy supply, NJRES provides a full-range of customized energy management services NJR Home Services offers customers home comfort solutions, including equipment sales and installations; solar lease and purchase plans; and a service contract product line, including heating, cooling, water heating, electric and standby generator contracts Demonstrated leadership as a premier energy infrastructure and sustainability-focused company
NJR: Major Accomplishments Over the Past 5 Years Increased Stability Driven by a Strategy Building Predictable, Fee Based Revenues NJR 5 Years Ago ~ 2018 New Jersey Natural Gas (NJNG) Southern Reliability Link (SRL) under Construction Clean Energy Ventures (CEV) 193 MW in Service All Projects in NJ Storage and Transportation (S&T) Seeking Attractive Investment Opportunities Energy Services (ES) Opportunity for Additional Earnings Due to Market Volatility; Undervalued by Market NJR Today SRL and Other Major Infrastructure Investments Completed 440 MW in Service; Expansion to 4 States (NJ/NY/RI/CT) Adelphia Pipeline Fully in Service; Acquired Leaf River Energy Center in 2019 Entered into Asset Management Agreements for $500 Million, Greatly Improving Earnings Visibility While Retaining Upside Opportunity
Our Clean Energy Strategy Utilizing Best-in-Class Distribution NJR at Present NJR in the Future Owner of Modern Infrastructure Positioned to Reliably Serve Customers Integrating Renewable Fuels Natural gas plays a vital role in supplying reliable energy Secure renewable opportunities Leverage renewable infrastructure knowledge Market Trends Natural gas demand continues to steadily increase and displace coal RNG and green hydrogen advance as viable low carbon fuels Public policy and ESG initiatives expected to accelerate decarbonization efforts
Decarbonization: Leading the Way Set an ambitious goal to achieve net-zero operational emissions in New Jersey by 2030 2050 Net-Zero NJ Operations by Embrace innovations across technologies and fuel types to advance decarbonization Reduce greenhouse gas emissions from operated assets and suppliers Expand energy efficiency, conservation and environmental opportunities Safely and reliably meet our customers’ energy needs
Shaping the Clean Energy Future: Federal Support Public policy will play a critical role in shaping the energy future Focused on reducing emissions, addressing climate change and encouraging clean energy solutions NJR will play an important role in achieving a clean energy future Legislation like the IRA will help to accelerate investment in innovation and new technologies to achieve the state’s climate goals The Inflation Reduction Act aligns with NJR’s “all of the above” approach to energy transition Promotes investment and innovation across clean energy technologies that can help reach 2050 climate goals in the fastest, most affordable and most reliable way possible
Aligned with New Jersey’s Clean Energy Policy Landscape NJR Environmental Initiatives Maximize energy efficiency and conservation SAVEGREEN Accelerate the use of renewable energy CEV expansion Decarbonize New Jersey’s energy system H2 & RNG 2019 The Energy Master Plan (EMP) established priorities for the use, management and development of energy in New Jersey 2023 EO 317 engages with stakeholders to develop plans that reduce emissions from the natural gas sector to levels that are consistent with achieving the State’s 50 percent reduction in greenhouse gas emissions
14 NJNG: Building the Utility of the Future Patrick Migliaccio SVP and Chief Operating Officer
New Jersey Natural Gas Largest stand-alone natural gas utility in New Jersey Keeps customers’ homes warm and businesses running throughout Monmouth, Ocean, Morris, Middlesex, Burlington, and Sussex counties Over 7,700 miles of distribution and transmission pipeline Net property, plant and equipment of more than $3 billion Represents NJR’s largest business unit New Jersey Natural Gas (NJNG) Safety Innovation Energy Efficiency Reliability
Population1 thousands NJNG: Attractive Service Territory with a Growing Customer Base Customer Base Advantageously Located between New York and Philadelphia Sources: US Census Bureau for 2000, 2010 and 2020 actuals. N.J. Department of Labor for 2029 projections. 1,600 1,700 1,790 1,835 Middlesex Morris Parsippany Monmouth Asbury Park Ocean Toms River Sussex NJNG Customers (in thousands)
Investing in Safety Invested over $2.3 billion in our distribution system over the last decade Helps enhance safety and reliability and drive lower greenhouse gas emissions Safety First natural gas utility in the state to eliminate cast iron and unprotected bare steel 100% of our distribution system is high-integrity plastic or protected steel Infrastructure Investment Program (IIP) Approved by the New Jersey Board of Public Utilities in November 2020 Five-year, $150 million program to strengthen natural gas infrastructure
Most Environmentally Sound Natural Gas Delivery System in New Jersey1 As measured by leaks per mile $2.3 Billion Invested in natural gas delivery system infrastructure in last decade 1st NJ natural gas utility to completely remove 100% of all unprotected steel and cast iron from its system in December 2022 Continuous Improvement on Pending Leaks Lowest number of leaks-per-mile of any natural gas utility in the state Reliability
SAVEGREEN Provides Energy Efficiency and Earns a Return for NJNG Conducts home energy audits and provides various grants, incentives and financing alternatives designed to encourage installation of high-efficiency heating and cooling equipment ~80,000 customers reduced usage and saved money More than $545 million generated in economic activity SAVEGREEN 2020 During the current three-year SAVEGREEN program, NJNG expects to invest up to $259 million in energy efficiency alongside our customers, with projected usage reduction of up to 125 million therms of natural gas. This reduction equates to preventing the emissions of over 663,102 metric tons of CO2, the equivalent of taking 142,886 cars off the road for a year. Residential: Rebates and incentives for qualifying equipment replacement and comprehensive home energy measures and On-Bill Repayment Programs Multi-family: Assessments; installation of energy savings measures; equipment replacement; custom retrofits Commercial & Industrial: Energy-efficient equipment, whole-building energy improvements, retro-commissioning and energy management efforts Expanded Incentives: For low-to-moderate income customers NJNG’s The SAVEGREEN Project® is an ENERGY STAR® 2023 Partner of the Year! Energy Efficiency One of the most successful residential energy-efficiency programs in N.J.
Howell Green Hydrogen Project Placed in service in first quarter of fiscal 2022 First green hydrogen project on the east coast used to heat customers’ homes and businesses Located at NJNG’s Howell LNG facility Successfully blending green hydrogen into our distribution system Expected to offset ~180 tons of CO2 per year Evaluating renewable natural gas and other green hydrogen opportunities Renewable Electricity Blended into our DistributionPipeline and Deliveredto Customers Power ElectrolysisCreates RenewableHydrogen Gas Decarbonizing Our Fuel Stream Innovation
21 Amy Cradic SVP and Chief Operating Officer Driving Growth And Adaptability Through Diversification
NJR: A Diversified Energy Infrastructure Company Solar Investments, Wholesale Energy Markets; Storage & Transportation Infrastructure; Retail Operations Clean Energy Ventures (CEV) Develops, invests in, owns and operates energy projects that generate clean power, provide low carbon energy solutions and help our customers save energy and money in a sustainable way Storage and Transportation (S&T) Invests in, owns and operates midstream assets including natural gas pipeline and storage facilities. Our companies provide transportation and storage services to a broad range of customers in the natural gas market Energy Services (ES) Provides unregulated, wholesale natural gas to consumers across the Gulf Coast, Eastern Seaboard, Southwest, Mid-continent and Canada. In addition to energy supply, NJRES provides a full-range of customized energy management services New Jersey Resources Home Services (NJRHS) Offers customers home comfort solutions, including equipment sales and installations; solar lease and purchase plans; and a service contract product line. Diversified business model enables NJR to adapt to challenges in ways that benefit our customers and investors Leverages Core Expertise of Utility Aligned with Clean Energy Strategy Delivers Predictable “Utility Like” Returns NJR’s Non-utility Businesses ~ $2.4 Billion in Assets1 As of March 31, 2023
Clean Energy Ventures (CEV): A Leader in the Solar Marketplace Over $1.2 billion invested in the solar marketplace to date A total of 65 commercial projects in service Over 9,500 residential solar customers in NJ’s 21 counties More than 440 megawatts of installed capacity
CEV: Milestone Projects 25.6-MW solar project, located in Mount Olive, New Jersey, transforms the former Combe Fill North Landfill Superfund site, into an income-generating, clean energy producing asset. The Mount Olive Solar field will provide clean power for over 4,000 homes. Largest Floating Solar Array in the U.S. Largest Landfill Site in the State of New Jersey 8.9MW floating solar system in Milburn, New Jersey (Essex County), the largest in the United States
CEV: Growing Capacity with a Robust Pipeline CEV owns and operates solar projects in New Jersey, Rhode Island, New York and Connecticut with approximately 440MW of capacity Total ~1.2 GW MWs Pipeline of ~740MW including projects under construction, contract, or exclusivity ~440MW of projects in-service ~56% of pipeline located in NJ ~44% located outside of NJ New In-Service since FYE 2022 ~53MW
Storage and Transportation (S&T): Overview Stable Contribution from Leaf River (storage), Steckman Ridge (storage), and Adelphia Gateway (transportation) 32.2 mmdth high deliverability salt cavern storage facility in southeastern Mississippi Acquired October 2019 100% owner & operator Serving Gulf Coast/Southeast the fastest growing natural gas market in North America with a growing reliance on regional supply imports 12.6 mmdth reservoir storage facility in southern PA. Placed in service April 2009 50% ownership interest Serving the Northeast Region with a high dependence on storage and increasingly constrained pipeline capacity Portfolio of assets with “utility-like” stable net financial earnings contribution 0.9 mmdth/d interstate pipeline from NE PA to greater Philadelphia area Acquired January 2020 / Placed in-service September 2022 100% owner & operator Serving the Northeast region, where the current pipeline grid is constrained
S&T: Adelphia Gateway Placed Fully into Service in September 2022 0.9 mmdth/d interstate pipeline from NE PA to greater Philadelphia area Acquired January 2020 / Placed in service September 2022 100% owner & operator Serving the Northeast region, where the current pipeline grid is constrained
Energy Services: Overview Managing a Diversified Portfolio of Physical Natural Gas Transportation and Storage Assets to Serve Customers Across North America; Secured Fee-based Revenue through Asset Management Agreements Asset Management Agreements De-risked Energy Services business by securing 10 years of contracted cash payments with minimal counterparty credit risk Long Option Strategy Proven track record of success over 27 years of existence leveraging natural gas market volatility to drive value Minimal long-term capital commitments and significant cash generation during outperformance years has significantly reduced NJR equity needs Successfully delivered energy to customers during Winter Storm Elliott Exceptional performance with no supply interruptions at NJNG and S&T Significant uptick in natural gas price volatility throughout the event allowed the Energy Services team to generate additional value from our physical assets Winter Storm Elliott
Home Services: Meeting Customers Home Comfort Needs ¹ Rating determined by Shopper Approved. See njrhomeservices.com for more information. Spun out from NJNG in 2000 Provides home comfort solutions, including: Residential service contracts for heating, cooling, water heating, electrical and standby generators Equipment sales and installations, solar lease and purchase plans, plumbing and electrical services and repairs and indoor air quality products Service territory includes Monmouth, Ocean, Middlesex, Morris, Sussex, Warren and Hunterdon counties Last year alone, completed nearly 80,000 service requests and over 3,800 HVAC, plumbing and generator installations Recognized as a Ruud National Pro Partner for the seventh consecutive year. Five-star customer satisfaction rating1
Strategic Path Diversified business model enhances our ability to adapt to challenges in ways that benefit our customers and investors Our Company is Strong and Well Positioned for Growth Invest in the Clean Energy Future NJR’s long-term value focused on delivery of clean energy Leverage NJNG’s infrastructure to advance decarbonization Invest in and adopt emerging technologies Grow Our Core Businesses NJNG and CEV are NJR’s core growth drivers NJNG and CEV to make up the largest parts of NJR’s total business mix Achieve More Predictable and Stable Earnings S&T and Energy Services focused on stable fee-based revenue Prioritizing tax equity financing for solar projects
31 Planning for Growth Roberto Bel SVP and Chief Financial Officer
Long Term Growth Rates: How does NJR Compare? Growth Rates: At the Top End of Our Peer Group 0-0% Nothing Defined 4-6% 5-7% 6-8% 7-9%
Fiscal 2023 NFEPS Guidance of $2.62 to $2.721 Net Financial Earnings per Share 7-9% LONG-TERM ANNUAL GROWTH1 Guidance Raised by $0.20 in Q1 FY2023; Represents 8.1% Increase from Midpoint of FY 2023 Initial Guidance Range FY2024 EXPECTED TO BE AT OR ABOVE THE TOP END OF THE LONG-TERM ANNUAL GROWTH RANGE DUE TO IMPACT OF THE AMA 15.3% NFEPS CAGR THROUGH FY2023E YTD 2023 NFEPS $2.30 NFEPS guidance was re-affirmed on May 4, 2023 and is not being updated at this time. NFEPS long-term annual growth projections are based on the midpoint of the $2.20 - $2.30 initial guidance range for fiscal 2022, provided on February 1, 2021
NJR: Capital Plan1 Total change in PP&E (cash spent, capex accrued and AFUDC). For GAAP purposes, SAVEGREEN investments are included as part of cash flows from operations $529 $712 $622 $520 - $658 $542 - $728 ($ in Millions) Capital plan supports long-term NFEPS growth targets of 7 – 9%
Well Positioned in a Rising Interest Rate Environment ($ in Millions) Term debt only (excludes short-term debt of$187.7 million, capital leases of $35 million and solar financing obligations of $185 million). Group by fiscal years. Impact of high interest rate environment included in FY2023 and long-term NFEPS guidance Interest rate impact mitigated by predominately fixed-rate debt Manageable debt repayment schedule with no significant maturity towers in any particular year Substantial liquidity at both NJNG and NJR - $900M of credit facilities available through FY2027 Term Debt Maturity Schedule as of March 31, 2023 We are Factoring in Higher Interest Rates and Intend to Fund our Growth through Debt with No Need for Block Equity
Conclusion Steve Westhoven President & Chief Executive Officer 36 36
Factors Contributing to Share Performance Performance and Execution Financial Position External Factors NJNG’s 2021 successful rate case S&T placed Adelphia fully into service ES AMA contribution All business units contributed favorably to FY 2022 and 1H 2023 performance NJR balance sheet well positioned in a rising interest rate environment Utilities generally seen as “Recession Resilient” NJR providing consistent and clear growth rate projections
How NJR Compares to Peers UTIL Index NJR ~23% NJR Peer Group ~4% September 2022 October 2022 November 2022 December 2022 January 2023 March 2023 February 2023 April 2023 Stock Price Appreciation September 30, 2022 to June 16, 2023 May 2023 June 2023
NJR Dividend Growth: Committed to Building Shareholder Value Strong Track Record of Dividend Growth $1.56 FY 2023 Dividend (up 7.6%) Dividends per Share 7.3% DPS CAGR
Expect 7% - 9% NFEPS Growth Annualized dividend yield of ~3.3%1 Dividend growth in line with long-term NFEPS growth expectations Net Zero by 2050 goal for New Jersey operations NJR: Total Expected Shareholder Return The Clean Energy Future Starts at NJR Solid Long Term Growth Outlook NJR is a Premier Energy Infrastructure Company Delivering Value to Shareholders Through Growth and Income Growing Dividend Based on dividend per share of $1.56 and closing share price of $47.49 on June 16, 2023 TOTAL EXPECTED SHAREHOLDER RETURN: ~10 - 12%
Questions? 41
Thank You! 42
Shareholder and Contact Information 1415 Wyckoff Road Wall, NJ 07719 (732) 938-1000 www.njresources.com Corporate Headquarters The Transfer Agent and Registrar for the company’s common stock is Broadridge Corporate Issuer Solutions, Inc. (Broadridge). Shareowners with questions about account activity should contact Broadridge investor relations representatives between 9 a.m. and 6 p.m. ET, Monday through Friday, by calling toll-free 800-817-3955. General written inquiries and address changes may be sent to: Broadridge Corporate Issuer Solutions P.O. Box 1342, Brentwood, NY 11717 or For certified and overnight delivery: Broadridge Corporate Issuer Solutions, ATTN: IWS 1155 Long Island Avenue, Edgewood, NY 11717 Shareowners can view their account information online at shareholder.broadridge.com/NJR. Stock Transfer Agent and Registrar Contact Information Adam Prior – Director, Investor Relations 732-938-1145 aprior@njresources.com Last Four Dividends Paid (Quarterly Frequency) Ex-Dividend Date Record Date Payable Date Amount per share 3/14/2023 3/15/2023 4/3/2023 $0.39 12/13/2022 12/14/2022 1/3/2023 $0.39 9/23/2022 9/26/2022 10/3/2022 $0.391 6/14/2022 6/15/2022 7/1/2022 $0.3625 Online Information Website: www.njresources.com Investor Relations: LINK Follow us: 7.6 percent increase in the quarterly dividend rate to $0.39 per share from $0.3625 per share