UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported): August 3, 2023

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

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

1415 Wyckoff Road
  

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

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

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

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

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

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

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

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on
which registered
Common Stock - $2.50 par value
NJR
New York Stock Exchange

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

Emerging growth company ☐

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

Item 2.02
Results of Operations and Financial Condition.

On August 3, 2023, New Jersey Resources Corporation (“NJR”) issued a press release reporting financial results for the third fiscal quarter ended June 30, 2023 (the “Press Release”). A copy of the Press Release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

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

Item 7.01
Regulation FD Disclosure.

NJR will deliver a presentation via live public webcast on August 3, 2023, at 10 a.m. ET. The slides to be used for the presentation are furnished herewith as Exhibit 99.2 and are incorporated by reference into Item 7.01 of this Current Report on Form 8-K.

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

Item 9.01
Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number
  
Exhibit
     
 
Press Release dated August 3, 2023 (furnished, not filed)
 
Presentation dated August 3, 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: August 3, 2023
By:
/s/ Roberto F. Bel
   
Roberto F. Bel
   
Senior Vice President and Chief Financial
   
Officer


Exhibit 99.1

NEW JERSEY RESOURCES REPORTS FISCAL 2023 THIRD-QUARTER RESULTS

WALL, N.J., August 3, 2023 — 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
June 30,
    
Nine Months Ended
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

NJR Reports Third Quarter Fiscal 2023 Results
Page 2 of 13
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
June 30,
    
Nine Months Ended
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.

NJR Reports Third Quarter Fiscal 2023 Results
Page 3 of 13
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
June 30,
    
Nine Months Ended
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.

NJR Reports Third Quarter Fiscal 2023 Results
Page 4 of 13
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.

NJR Reports Third Quarter Fiscal 2023 Results
Page 5 of 13
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.

NJR Reports Third Quarter Fiscal 2023 Results
Page 6 of 13
Forward-Looking Statements:
This earnings release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. NJR cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJR’s ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants. Words such as “anticipates,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “believes,” “should” and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management’s current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon NJR. There can be no assurance that future developments will be in accordance with management’s expectations, assumptions and beliefs or that the effect of future developments on NJR will be those anticipated by management. Forward-looking statements in this earnings release include, but are not limited to, certain statements regarding NJR’s NFEPS guidance for fiscal 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.

NJR Reports Third Quarter Fiscal 2023 Results
Page 7 of 13
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.

NJR Reports Third Quarter Fiscal 2023 Results
Page 8 of 13
NEW JERSEY RESOURCES
 CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

   
Three Months Ended
June 30,
    
Nine Months Ended
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
  
                                 

NJR Reports Third Quarter Fiscal 2023 Results
Page 9 of 13
RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES
(Unaudited)

   
Three Months Ended
June 30,
    
Nine Months Ended
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.

NJR Reports Third Quarter Fiscal 2023 Results
Page 10 of 13
RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (continued)
(Unaudited)

(Unaudited)
  
Three Months Ended
June 30,
    
Nine Months Ended
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
  
                                 

NJR Reports Third Quarter Fiscal 2023 Results
Page 11 of 13
FINANCIAL STATISTICS BY BUSINESS UNIT
(Unaudited)

   
Three Months Ended
June 30,
    
Nine Months Ended
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
  
                                 

NJR Reports Third Quarter Fiscal 2023 Results
Page 12 of 13
(Unaudited)
  
Three Months Ended
June 30,
    
Nine Months Ended
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
%
                                 

NJR Reports Third Quarter Fiscal 2023 Results
Page 13 of 13
(Unaudited)
  
Three Months Ended
June 30,
    
Nine Months Ended
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
  
                                 


Exhibit 99.2

 FY 2023 Third Quarter and YTD Financial Results  August 3, 2023  August 2023   Investor Presentation 
 
 Forward-Looking Statements and Non-GAAP Measures  Forward-Looking Statements  This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. NJR cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJR’s ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants. Words such as “anticipates,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “believes,” “should” and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management’s current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon NJR. There can be no assurance that future developments will be in accordance with management’s expectations, assumptions and beliefs or that the effect of future developments on NJR will be those anticipated by management. Forward-looking statements in this earnings presentation include, but are not limited to, certain statements regarding NJR’s NFEPS guidance for fiscal 2023, including NFEPS guidance by Segment, fiscal 2023 and 2024 long term growth targets and range, long term annual growth projections and targets, Capital Plan expectations for FY 2023 and 2024, projections of dividend and financing activities, customer growth at NJNG, future NJR and NJNG capital expenditures, the Monmouth County Reclamation Center, potential CEV capital projects, announced charitable endowment, project pipeline (under construction, contract or exclusivity) through Fiscal 2027, total expected shareholder return projections, dividend growth, CEV revenue and service projections, SREC Hedging strategies and Asset Management Agreements, the outcome and timing of future Base Rate Cases with the BPU, emissions reduction strategies and clean energy goals, environmental social and governance efforts, outcome of the Inflation Reduction Act, rising interest rates and ITCs, 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.   Adjusted funds from operations is cash flows from operating activities, plus components of working capital, cash paid for interest (net of amounts capitalized), capitalized interest, the incremental change in SAVEGREEN loans, grants, rebates, and related investments, and operating lease expense.  Adjusted debt is total long-term and short-term debt, net of cash and cash equivalents, excluding solar asset financing obligations but including solar contractually committed payments for sale lease-backs, debt issuance costs, and other Fitch credit metric adjustments.  Management uses NFE/net financial loss, utility gross margin, financial margin, adjusted funds from operations and adjusted debt, as supplemental measures to other GAAP results to provide a more complete understanding of the Company’s performance. Management believes these non-GAAP measures are more reflective of the Company’s business model, provide transparency to investors and enable period-to-period comparability of financial performance. In providing NFE guidance, management is aware that there could be differences between reported GAAP earnings and NFE/net financial loss due to matters such as, but not limited to, the positions of our energy-related derivatives. Management is not able to reasonably estimate the aggregate impact or significance of these items on reported earnings and therefore is not able to provide a reconciliation to the corresponding GAAP equivalent for its operating earnings guidance without unreasonable efforts. In addition, in making forecasts relating to S&T’s Adjusted EBITDA and adjusted funds from operations and adjusted debt, management is aware that there could be differences between reported GAAP earnings, cash flows from operations and total long-term and short-term debt due to matters such as, but not limited to, the unpredictability and variability of future earnings, working capital and cash positions. Management is not able to reasonably estimate the aggregate impact or significance of these items on reported GAAP measures and therefore is not able to provide a reconciliation to the corresponding GAAP equivalent for such forecasts without unreasonable efforts. NFE/net financial loss, utility gross margin and financial margin are discussed more fully in Item 7 of our Report on Form 10-K and, we have provided presentations of the most directly comparable GAAP financial measure and a reconciliation of our non-GAAP financial measures, NFE/net financial loss, utility gross margin, financial margin, adjusted funds from operations and adjusted debt, to the most directly comparable GAAP financial measures, in the appendix to this presentation. This information has been provided pursuant to the requirements of SEC Regulation G. 
 
 Contents  FY 2023 Third Quarter and YTD  3  Agenda  4  Fiscal 2023 Third Quarter and Year-to-Date Summary  5  Re-Affirming Fiscal 2023 NFEPS Guidance of $2.62 to $2.72  6  New Jersey Natural Gas  7  Clean Energy Ventures (CEV)  8  Financial Review  9  Review of Fiscal 2023 Q3 and YTD NFE Changes  10  Capital Plan  11  Projected Cash Flows  12  Investment Grade Profile  13  Aligned with New Jersey’s Clean Energy Policy Landscape   14  Key Takeaways: Fiscal 2023 Year-to-Date  Appendix: Financial Statements and Additional Information – 15  16  Reconciliation of NFE and NFEPS to Net Income  17  Other Reconciliation of Non-GAAP Measures  18  Reconciliation of Adjusted Funds from Operations to Cash Flow from Operations  19  Fiscal 2023 Third Quarter and YTD NFE by Business Unit  20  Clean Energy Ventures - SREC Hedging Strategy  21  Capital Plan Table  22  Dividend Growth: Committed to Building Shareholder Value  23  Debt Maturities  24  Total Expected Shareholder Return  25  Environmental, Social and Governance Efforts  26  Shareholder and Contact Information 
 
 1  Third Quarter FY 2023 HighlightsSteve Westhoven | President and CEO  2  Financial HighlightsRoberto Bel | SVP and CFO  3  Q&A Session  FY 2023 Third QuarterConference Call Agenda  3 
 
 Fiscal 2023 Third Quarter and Year-to-Date Summary  Consistent Performance Throughout All Business Units  A reconciliation from NFE to net income can be found in the Appendix.  Third Quarter NFEPS1  YTD NFEPS  NJNG  Strong new customer growth  Named one of Cogent Syndicated 2023 Most   “Trusted Utility Brands”  CEV  Increased capacity by ~75MW in fiscal 2023 through July (a record for CEV in any FY)  Project pipeline of ~757MW through Fiscal 2027  S&T  Significant year-over-year revenue growth and NFEPS contribution in line with expectations  Energy  Services  Continued contribution from AMA  Solid performance from long-option strategy during the quarter 
 
 Fiscal 2023 NFEPS Guidance of $2.62 to $2.72 Re-Affirmed  Net Financial Earnings per Share  NFEPS long-term annual growth projections are based on the midpoint of the $2.20 - $2.30 initial guidance range for fiscal 2022, provided on February 1, 2021   7-9% LONG-TERM ANNUAL GROWTH1  Fiscal 2023 NFEPS Guidance by Segment  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  $2.40  (unchanged from prior conference call) 
 
 New Jersey Natural Gas  Strong Trend of Favorable Customer Growth  ~$315M  Total change in PP&E (cash spent, capex accrued and AFUDC). Includes SAVEGREEN investments, which for GAAP purposes are included as part of cash flows from operations  Facilities included in “Other”   ~40% of capital expenditures earning a near real-time return  NJNG Customers (in thousands)  Added 5,892 new customers YTD in fiscal 2023 compared to 5,274 in YTD fiscal 2022  Timing of Next Rate Case  Filing Expected in Fiscal 2024  YTD Fiscal 2023 Capital Expenditures1  The SAVEGREEN Project®, received the 2023 ENERGY STAR Partner of the Year Award from the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE). 
 
 Clean Energy Ventures (CEV)  CEV owns and operates solar projects with approximately 462MW of capacity  Total  ~1.2 GW  MWs  Pipeline of ~757MW including projects under construction, contract, or exclusivity (through July 2023)  ~462MW of projects in-service  ~58% of pipeline located in NJ  ~42% located outside of NJ  New In-Service in Fiscal 2023  ~75MW  Record in Any Given Fiscal Year (previously 60MW in 2020) 
 
 Financial Review  Roberto Bel  SVP and Chief Financial Officer  8  8 
 
 Fiscal 2023 YTD  Fiscal 2023 Q3  Review of Fiscal 2023 Q3 and YTD NFE Changes  ($ in Millions)  A reconciliation of these non-GAAP measures can be found in the Appendix  The sum of 3Q23 and YTD 2023 actual amounts may not equal to total due to rounding  Fiscal 3Q22 – Consolidated NFE ($ in millions)  $ (3.6)  NJNG  $ (1.8)  Utility Gross Margin1  $ 5.8   O&M  $ (6.7)  Depreciation & Amortization (D&A)  $ (1.9)  Interest expense, AFUDC, Income Tax  $ 1.0   Clean Energy Ventures  $ 12.4   Revenue  $ (0.6)  D&A and Interest Expense  $ (3.7)  Other  $ 16.7   Storage & Transportation  $ (1.2)  Revenue  $ 5.8   D&A and Interest Expense  $ (6.0)  AFUDC & Other  $ (1.0)  Energy Services  $ 3.4   Financial Margin1  $ 3.1   Interest Expense, Income Tax and Other  $ 0.3   Home Services and Other  $ 0.4   Fiscal 3Q23 – Consolidated NFE ($ in millions)2  $ 9.7   Fiscal 2022 YTD – Consolidated NFE ($ in millions)  $ 192.4   NJNG  $ (0.3)  Utility Gross Margin1  $ 28.3   O&M  $ (25.5)  Depreciation & Amortization (D&A)  $ (5.8)  Interest expense, AFUDC, Income Tax  $ 2.7   Clean Energy Ventures  $ 12.7   Revenue  $ 4.6   D&A and Interest Expense  $ (3.9)  Other  $ 12.0   Storage & Transportation  $ (0.1)  Revenue  $ 28.1   D&A and Interest Expense  $ (22.1)  AFUDC & Other  $ (6.1)  Energy Services  $ 29.6   Financial Margin1  $ 42.3   Interest Expense, Income Tax and Other  $ (12.7)  Home Services and Other  $ (2.1)  Fiscal 2023 YTD – Consolidated NFE ($ in millions)2  $ 232.3  
 
 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  $545 - $633  $542 - $728  ($ in Millions)  Capital plan supports long-term NFEPS growth targets of 7 – 9% 
 
 FY2022A  FY2023E  FY2024E  Cash Flow from Operations  $324  $400  -  $420  $450  -  $490  Uses of Funds  Capital Expenditures1  $590  $491  -  $575  $489  -  $671  Dividends2  $128  $132  -  $137  $143  -  $148  Total Uses of Funds  $718  $623  -  $712  $632  -  $819  Financing Activities  Common Stock Proceeds – DRIP  $15  $57  -  $61  $17  -  $19  Debt Proceeds/Other  $379  $166  -  $231  $165  -  $310  Total Financing Activities  $394  $223  -  $292  $182  -  $329  Projected Cash Flows  ($ in Millions)  Excludes accrual for AFUDC and SAVEGREEN investments (for GAAP purposes, SAVEGREEN investments are included in Cash Flow from Operations)  Dividend growth for fiscal 2023 and fiscal 2024 are based upon the midpoint of forecasted 7-9% growth rate  Increased from $320 - $360 in last quarterly conference call) 
 
 Investment Grade Profile  Internal estimates based on Fitch Ratings methodology. Ratio represents inverse of FFO-adjusted leverage ratio. A reconciliation from adjusted funds from operations to cash flows from operating activities and adjusted debt to long-term and short-term debt can be found in the Appendix. Adjusted funds from operations is cash flows from operating activities, plus components of working capital, cash paid for interest (net of amounts capitalized), capitalized interest, the incremental change in SAVEGREEN loans, grants, rebates, and related investments, and operating lease expense. Adjusted debt is total long-term and short-term debt, net of cash and cash equivalents, excluding solar asset financing obligations but including solar contractually committed payments for sale lease-backs, debt issuance costs, and other Fitch credit metric adjustments.  NJR Adjusted FFO / Adjusted Debt1  NJNG  (Secured Rating)  NJR  (Unsecured Rating)  NAIC  NAIC-1.E  NAIC-2.A  Moody's  A1 (Stable)  Fitch  A+ (Stable)  Current Credit Ratings  Strong Credit Ratings Supported by Stable Cash Flows  Increased from   17-18% in last quarterly conference call) 
 
 Alignment with New Jersey’s Clean Energy Policy Landscape   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  August 2 – 3, 2023  NJBPU Technical Conference discussing reduction of emissions in the Natural Gas sector  SAVEGREEN  Maximize energy efficiency and conservation   CEV expansion  Accelerate the use of renewable energy  H2 & RNG  Decarbonize New Jersey’s energy system  NJR Environmental Initiatives 
 
 Key Takeaways: Fiscal 2023 Year-to-Date  Implementing Strategic Plan to Drive Continued Organic Growth Across Portfolio  Highest Long-Term Growth Rate Across   LDC Peer Group  7 – 9%   Reiterates   FY 2023 NFE Guidance  $2.62 - $2.72  Raised by $0.20 in Q1 2023  Defined Capital Plan   $1.1 - $1.4 Billion  Expected for Fiscal Years 2023 and 2024  Organic Growth Opportunities  Maximizing Value of Existing Assets 
 
 16  Reconciliation of NFE and NFEPS to Net Income  17  Other Reconciliation of Non-GAAP Measures  18  Reconciliation of Adjusted Funds from Operations to Cash Flow from Operations  19  Fiscal 2023 Third Quarter and YTD NFE by Business Unit  20  Clean Energy Ventures - SREC Hedging Strategy  21  Capital Plan Table  22  Dividend Growth: Committed to Building Shareholder Value  23  Debt Maturities  24  Total Expected Shareholder Return  25  Environmental, Social and Governance Efforts  26  Shareholder and Contact Information  Appendix:  Financial Statements and Additional Information  15 
 
 Reconciliation of NFE and NFEPS to Net Income  ($ in 000s)  NFE is a measure of earnings based on the elimination of timing differences to effectively match the earnings effects of the economic hedges with the physical sale of natural gas, Solar Renewable Energy Certificates (SRECs) and foreign currency contracts. Consequently, to reconcile net income and NFE, current-period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item. Realized derivative gains and losses are also included in current-period net income. However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the derivatives with realized margins on physical natural gas flows. NFE also excludes certain transactions associated with equity method investments, including impairment charges, which are non-cash charges, and return of capital in excess of the carrying value of our investment. These are not indicative of the Company's performance for its ongoing operations. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE.  NFE eliminates the impact of volatility to GAAP earnings associated with unrealized gains and losses on derivative instruments in the current period  (Unaudited)  Three Months Ended  June 30,  Nine Months Ended  June 30,  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  
 
 Other Reconciliation of Non-GAAP Measures  ($ in 000s)  NJNG Utility Gross Margin  NJNG's utility gross margin is defined as operating revenues less natural gas purchases, sales tax, and regulatory rider expenses. This measure differs from gross margin as presented on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization.  Energy Services Financial Margin  Financial margin removes the timing differences associated with certain derivative and hedging transactions. Financial margin differs from gross margin as defined on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization expenses as well as the effects of derivatives instruments on earnings.   (Unaudited)  Three Months Ended  Nine Months Ended  June 30,  June 30,  2023  2022  2023  2022  A reconciliation of gross margin, the closest GAAP financial measurement, 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   A reconciliation of gross margin, the closest GAAP financial measurement, to 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   Operating 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:  Operating 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 
 
 Reconciliation of Adjusted Funds from Operations to Cash Flow from Operations  Adjusted funds from operations is cash flows from operating activities, plus components of working capital, cash paid for interest (net of amounts capitalized), capitalized interest, the incremental change in SAVEGREEN loans, grants, rebates, and related investments, and operating lease expense  Adjusted debt is total long term and short-term debt, net of cash and cash equivalents, excluding solar asset financing obligations but including solar contractually committed payments for sale lease backs, debt issuance costs, and other Fitch credit metric adjustments  Cash Flow from Operations  $323.5   Add back  Components of working capital  $77.7   Cash paid for interest (net of amounts capitalized)  $84.4   Capitalized Interest  $6.1   SAVEGREEN loans, grants, rebates and related investments  $53.1   Operating cash flows from operating leases  $7.4   Adjusted FFO (Non-GAAP)  $552.2   Long-Term Debt (including current maturities)  $2,560.4   Short-Term Debt  $424.0   Exclude  Cash on Hand  ($1.1)  CEV Sale-Leaseback Debt  ($130.6)  Include  CEV Sale lease-back Contractual Commitments   $111.6   Debt Issuance Costs  $13.3   Operating Lease Debt estimate (8x lease expense)  $77.6   Adjusted Debt (Non-GAAP)  $3,055.2   Adjusted Debt, FY2022 (Millions)  Adjusted Funds from Operations, FY2022(Millions) 
 
 Fiscal 2023 Q3 and YTD NFE by Business Unit  ($ in 000s)   (Thousands)  Three Months Ended June 30,  Nine Months Ended June 30,  2023  2022  Change  2023  2022  Change  New Jersey Natural Gas  $891  $2,648  $(1,757)  $156,252  $156,511  $(259)  Clean Energy Ventures  $7,267  $(5,098)  $12,365  $(5,694)  $(18,410)  $12,716  Storage and Transportation  $2,358  $3,526  $(1,168)  $11,051  $11,113  $(62)  Energy Services  $(1,604)  $(5,003)  $3,399  $72,054  $42,504  $29,550  Home Services and Other  $758  $376  $382  $(1,399)  $707  $(2,106)  Total  $9,670  $(3,551)  $13,221  $232,264  $192,425  $39,839  NFEPS  $0.10  $(0.04)  $0.14  $2.40  $2.00  $0.40 
 
 CEV: SREC Hedging Strategy Stabilizes Revenue  Based on Energy Year1, as of June 30, 2023  Percent Hedged  Average Price  Current Price (EY)  100%  $197  $214  89%  $190  $202  71%  $183  $188  Energy Years run from June 1 of the prior year to May 31 of the respective year; for example, Energy Year 2023 begins on June 1, 2022, and ends on May 31, 2023  17%  $154  $176  94%  $203  $219  Based on Fiscal Year, as of June 30, 2023  Percent Hedged  Average Price  Current Price (FY)  97%  $195  $210  75%  $190  $197  63%  $182  $184  18%  $154  $169  100%  $204  $217  Over 97% hedged through   Fiscal Year 2024  63% hedged through   Fiscal Year 2026  Over 94% hedged through   Energy Year 2024  71% hedged through   Energy Year 2026 
 
    1Q FY2023A  2Q FY2023A  3Q  FY2023A  YTD FY2023A  FY2022A  FY2023E  FY2024E  Near Real Time Return?  New Jersey Natural Gas  New Customer  $13  $18  $20  $51  $54  $64   -  $68   $56   -  $60   Yes  Maintenance & Integrity  $27  $28  $33  $88  $104  $126  -  $129   $161  -  $176   Cost of Removal / Other  $9  $10  $13  $31  $42  $36   -  $40   $36   -  $40   Facilities  $9  $12  $7  $27  $7  $31  -  $34  $2  -  $4  IT  $14  $14  $16  $44  $42  $65   -  $69   $46   -  $50   IIP  $9  $9  $16  $34  $32  $32   -  $36   $26   -  $30   Yes  RNG & P2G  -  -  -  -  $1  $8   -  $12   $25   -  $28   SAVEGREEN  $11  $13  $16  $40  $53  $48   -  $52   $48   -  $52   Yes  $91  $104  $120  $315  $335  $410   -  $440   $400   -  $440   Clean Energy Ventures  Sunlight Advantage  $2  $3  $3  $8  $13  $9  -  $13  $10  -  $14  Commercial Solar  $42  $16  $7  $65  $132  $91   -  $137   $130   -  $266   $44  $19  $10  $73  $145  $100   -  $150   $140   -  $280   Storage and Transportation  Adelphia Gateway  $12  $3  $1  $16  $124  $12   -  $16  $2   -  $6  Leaf River  $1  $3  $2  $6  $18  $23   -  $27   $0   -  $2   $13  $6  $3  $21  $142  $35   -  $43  $2   -  $8   Total  $148  $129  $132  $409  $622  $545  -  $633  $542  -  $728  Capital Plan Table1,2  ($ in Millions)  Total change in PP&E (cash spent, capex accrued and AFUDC). For GAAP purposes, SAVEGREEN investments are included as part of cash flows from operations  The sum of actual amounts may not equal due to rounding 
 
 Dividend Growth: Committed to Building Shareholder Value  Strong Track Record of Dividend Growth  $1.56  FY 2023 Dividend   (up 7.6%)  7.3% DPS CAGR  Dividend History  Dividends per Share  7.6 percent increase in the quarterly dividend rate to $0.39 per share from $0.3625 per share  Ex-Dividend Date  Record Date  Payable Date  Amount Per Share  06/13/2023  06/14/2023  07/03/2023  $0.39  03/14/2023  03/15/2023  04/03/2023  $0.39  12/13/2022  12/14/2022  01/03/2023  $0.39  09/23/2022  09/26/2022  10/03/2022  $0.391  06/14/2022  06/15/2022  07/01/2022  $0.3625  03/15/2022  03/16/2022  04/01/2022  $0.3625  12/14/2021  12/15/2021  01/03/2022  $0.3625  09/17/2021  09/20/2021  10/01/2021  $0.3625  06/15/2021  06/16/2021  07/01/2021  $0.3325  03/16/2021  03/17/2021  04/01/2021  $0.3325  12/15/2020  12/16/2020  01/04/2021  $0.3325  09/21/2020  09/22/2020  10/01/2020  $0.3325  06/15/2020  06/16/2020  07/01/2020  $0.3125  03/16/2020  03/17/2020  04/01/2020  $0.3125  12/18/2019  12/19/2019  01/02/2020  $0.3125  09/19/2019  09/20/2019  10/01/2019  $0.3125  Highlighted Rows Reflect Changes in Quarterly Cash Dividends 
 
 Well Positioned in a Rising Interest Rate Environment  ($ in Millions)  Term debt only (excludes short-term debt of $145.2 million, capital leases of $33.3 million and solar financing obligations of $283.4 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 Debt1 Maturity Schedule   as of June 30, 2023  No Refinancing Necessary 
 
 Expect 7% - 9%  NFEPS Growth   Annualized dividend yield   of 3.6%1  Dividend growth in line with long-term NFEPS growth expectations  Net Zero by 2050 goal for New Jersey operations  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 $43.88 on August 1, 2023  TOTAL EXPECTED SHAREHOLDER RETURN: ~10 - 13% 
 
 Environmental, Social and Governance Efforts  Focus on Definable Accomplishments   Social  Established $20 million endowment fund for NJR’s charities to support continued community giving long into the future  Robust structure and initiatives to promote DEI at NJR including Executive DEI Council to ensure accountability  Employee-led Business Resource Groups (BRGs) bring together employees with common background to promote engagement and inclusiveness – 21% of NJR workforce belongs to one or more BRGs  During the third quarter, NJR received the Monmouth County Diversity Alliance's Excellence in Diversity Award and the New Jersey Business and Industry Association's NJR Diversity, Equity and Inclusion Award  Achieved NJ operational emissions reductions over 55% since 2006 with goal of 60% by 2030 and net zero by 2050  One of the largest owner-operators of solar assets in New Jersey, we have invested over $1 billion over the last decade building clean, emissions-free power for homes and businesses  Plans to invest up to $2 million over the next five years through its Coastal Climate Initiative, which has expanded to a multi-faceted environmental stewardship program  Environmental  Continued progress on reporting and transparency as through publication of 14th consecutive sustainability report  Our board of directors (Board) has a broad range of skills and industry knowledge, as well as a diversity of perspectives that align with our company’s long-term strategy  The Board is responsible for oversight of NJR’s overall strategy, including all Environmental Social and Governance (ESG) issues  NJR includes sustainability considerations in the performance metrics of our Commitment to Stakeholders. Actual results of these goals and metrics directly impact the compensation of corporate officers year-to-year and ensure accountability  Governance  In June 2023, more than 200 employees supported the Natural Resources Education Foundation in Waretown over two days of giving back. Our team refurbished the facilities and landscaping, restored the bird viewing area, and planted salt marsh grass in the tidal wetland restoration area. Our effort helped to support this nonprofit’s mission – to educate visitors about the unique environment of the Jersey Shore. In addition to our volunteer efforts, we were pleased to donate $50,000 through our Coastal Climate Initiative to further NREF’s ongoing salt marsh restoration efforts. Salt marshes are a natural way to remove carbon dioxide from the air and support coastal ecosystems and resilience. To learn more, visit njng.com/climate.  Coastal Climate Initiative in Action 
 
 Contact Information  Adam Prior – Director, Investor Relations   732-938-1145  [email protected]  1415 Wyckoff Road  Wall, NJ 07719  (732) 938-1000  www.njresources.com  Corporate Headquarters  Online Information  Website: www.njresources.com  Investor Relations: LINK  Follow us:  Shareholder and Online Information  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