NJR 8-K
New Jersey Resources Corp (NJR)
8-K
2024-11-25
For: 2024-11-25
View Original
Added on
April 08, 2026
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): November 25, 2024
(Exact Name of registrant as specified in its charter)
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(State or Other Jurisdiction of Incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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(Address of Principal Executive Offices)
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(Zip Code)
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(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:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on
which registered
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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 1.01 |
Entry into a Material Definitive Agreement.
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On November 25, 2024 (the “Closing Date”), New Jersey Resources Corporation, a New Jersey corporation (the “Company”), through NJR Clean Energy Ventures
II Corporation (“CEV II”), a subsidiary of the Company, completed the sale of its residential solar portfolio and related assets and liabilities (the “Solar Assets”) to an affiliate of Spruce Power Holding Corporation (the “Buyer”) pursuant to an
asset purchase agreement (the “Agreement”), for a total of approximately $132.5 million, subject to customary adjustments. The Company expects to record a gain on the sale in fiscal year 2025 and will use net proceeds of the sale (after tax,
transaction expenses and customary purchase price adjustments) to pay down corporate debt and for general working capital purposes.
Simultaneous with the sale, certain of the Solar Assets, including certain solar equipment leases and related equipment, were transferred to an affiliate
of Buyer, from which CEV II is leasing back those Solar Assets. The term of the lease will extend from the Closing Date through the quarter following sixty (60) months after such Solar Asset was first placed in service.
In addition, on the Closing Date, another of Buyer’s affiliates engaged CEV II to transition the servicing of the Solar Assets. CEV II contracted with
that affiliate to oversee the maintenance of the Solar Assets leased to CEV II, and the Company guaranteed certain of CEV II’s payment and performance obligations in connection with the sale and leaseback transactions.
The above summary of the terms of the Agreement does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the
Agreement, which will be attached as an exhibit to the Company’s Annual Report on Form 10-K for the year ended September 30, 2024.
| Item 2.02 |
Results of Operations and Financial Condition.
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On November 25, 2024, the Company issued a press release reporting financial results for the fourth fiscal quarter and fiscal year ended September 30,
2024 (the “Earnings Release”). A copy of the Earnings 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.
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Earnings Presentation
The Company will deliver a presentation via live public webcast on November 26, 2024, at 10:00 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.
Solar Assets Transaction
On November 25, 2024, CEV II issued a press release announcing the sale of its residential solar business in the State of New Jersey, as well as a
leaseback of certain of the sold assets, as described above in Item 1.01 of this Current Report on Form 8-K. The full text of the press release is attached as Exhibit 99.3 to this Current Report on Form 8-K and is incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information contained or incorporated in this Item 7.01, including the presentation furnished
herewith as Exhibit 99.2 and the press release furnished herewith as Exhibit 99.3, respectively, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise
subject to the liabilities of that section, nor shall such exhibits be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in
such filing, except as shall be set forth expressly by specific reference in such a filing.
Cautionary Statements Regarding Forward-Looking Statements
This filing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company cautions readers
that the assumptions forming the basis for forward-looking statements include many factors that are beyond the Company’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,” “intends,” “plans,” “believes,” “may,” “should” and similar expressions may identify forward-looking information and such forward-looking statements are made based upon
management’s current expectations and beliefs as of this date concerning future developments and their potential effect upon the Company. There can be no assurance that future developments will be in accordance with management’s expectations or
that the effect of future developments on the Company will be those anticipated by management. Forward-looking information in this filing includes, but is not limited to, certain statements regarding the use of proceeds.
Additional information and factors that could cause actual results to differ materially from the Company’s expectations are contained in the Company’s
filings with the U.S. Securities and Exchange Commission (“SEC”), including the Company’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 filing is representative as of today only and while the Company periodically reassesses material trends and uncertainties affecting the Company’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, the Company 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.
| Item 9.01. |
Financial Statements and Exhibits
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(d)
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Exhibits.
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Exhibit Number
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Exhibit
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Earnings Release dated November 25, 2024 (furnished, not filed)
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Presentation dated November 25, 2024 (furnished, not filed)
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Press Release, dated November 25, 2024 (furnished, not filed)
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104
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Cover page in Inline XBRL format
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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.
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NEW JERSEY RESOURCES CORPORATION
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Date: November 25, 2024
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By:
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/s/ Roberto F. Bel
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Roberto F. Bel
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Senior Vice President and Chief Financial Officer
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NEW JERSEY RESOURCES REPORTS FISCAL 2024
FOURTH-QUARTER AND YEAR-END
RESULTS
WALL, N.J., November 25, 2024 — Today, New Jersey Resources Corporation (NYSE: NJR) reported
results for the fiscal 2024 fourth quarter and year-ended September 30, 2024. Financial highlights include:
| • |
Fiscal 2024 consolidated net income of $289.8 million, or $2.94 per share, compared with net income of $264.7 million, or $2.73 per share, in fiscal
2023
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| • |
Consolidated net financial earnings (NFE), a non-GAAP financial measure, of $290.8 million, or $2.95 per share, in fiscal
2024, compared to NFE of $261.8 million, or $2.70
per share, in fiscal 2023
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Achieved higher end of fiscal 2024 net financial earnings per share (NFEPS) guidance range of $2.85 to $3.00, which was increased in February 2024
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| • |
Fiscal 2024 fourth-quarter net income totaled $91.1 million, or $0.92 per
share, compared with net income of $37.0 million, or $0.38 per share, for the same
period in fiscal 2023. The increase was largely due to higher operating revenue at Energy Services as a result of the Asset Management Agreements (AMAs) signed in
December 2020
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| • |
Fiscal 2024 fourth-quarter NFE totaled $88.7 million, or $0.89 per share,
compared with $29.6 million, or $0.30 per share, for the same period in fiscal 2023
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Regulatory and Operating Highlights
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New Jersey Natural Gas (NJNG) received approval from the New Jersey Board of Public Utilities (BPU) on the settlement of its base
rate case, authorizing a $157.0 million increase to its base rates
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NJNG received approval from the BPU for the next generation of SAVEGREEN®, a new $385.6 million energy efficiency program that begins on January 1, 2025 and continues through June 30, 2027
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In November 2024, Clean Energy Ventures (CEV) announced the sale of its 91 megawatt (MW) residential solar portfolio for a
total of $132.5 million
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On September 30, 2024, Adelphia Gateway, LLC (Adelphia) filed a general Section 4 rate case with the Federal Energy Regulatory Commission (FERC). Adelphia anticipates that FERC will allow it to
place the rates into effect during the second half of 2025, subject to refund and the outcome of a hearing to be established by FERC
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Fiscal 2025 Outlook
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Maintains 7 to 9 percent long-term NFEPS growth
target, and after multiple years of outperformance is rebasing this target off $2.83 per share for fiscal 2025, consistent with our previously communicated guidance1
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Introduces fiscal 2025 NFEPS guidance range of $3.05
to $3.20, which is higher than the range implied by our long-term NFEPS growth target as a result of the one-time gain from the sale of NJR’s residential solar
portfolio
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Increased fiscal 2025 dividend by 7.1 percent to $1.80
per share
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Management Commentary
Steve Westhoven, President and CEO of New Jersey Resources, stated, “Fiscal 2024 was an excellent year for NJR, with solid financial performance across all business
segments. We achieved NFEPS at the higher end of our guidance, which was raised in February. This marks the fourth consecutive year of exceeding our 7 to 9 percent stated NFEPS growth rate. We advanced our strategic objectives by settling our base rate case and the largest energy efficiency program in NJNG’s history, while making
key investments to position us for continued long-term success.”
| 1. |
The starting point for our previously communicated long-term growth guidance was the midpoint of our FY 2022 initial NFEPS guidance of $2.20 - $2.30. This
compounded for three years using the midpoint of our NFEPS 7 to 9 percent long-term annual growth projections is $2.83
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NJR Reports Fiscal 2024 Fourth Quarter
and Year-End Results
Page 2 of 13
Performance Metrics
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Three Months Ended
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Twelve Months Ended
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September 30,
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September 30,
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|||||||||||||||
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($ in Thousands)
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2024
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2023
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2024
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2023
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Net income
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$
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91,126
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$
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37,024
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$
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289,775
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$
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264,724
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Basic EPS
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$
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0.92
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$
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0.38
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$
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2.94
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$
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2.73
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Net financial earnings
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$
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88,707
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$
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29,563
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$
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290,828
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$
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261,827
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Basic net financial earnings per share
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$
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0.89
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$
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0.30
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$
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2.95
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$
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2.70
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A reconciliation of net income to NFE for the three and twelve months ended September 30, 2024 and 2023, is provided below.
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Three Months Ended
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Twelve Months Ended
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September 30,
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September 30,
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|||||||||||||||
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(Thousands)
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2024
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2023
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2024
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2023
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Net income
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$
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91,126
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$
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37,024
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$
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289,775
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$
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264,724
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Add:
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Unrealized (gain) loss on derivative instruments and related transactions
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(4,286
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)
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(7,579
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19,574
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(38,081
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)
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Tax effect
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1,018
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1,800
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(4,652
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)
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9,050
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Effects of economic hedging related to natural gas inventory
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1,266
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(2,186
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)
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(18,192
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)
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34,699
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Tax effect
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(301
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)
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520
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4,323
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(8,246
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)
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Gain on equity method investment
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—
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—
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—
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(300
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Tax effect
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—
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(93
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—
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(19
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NFE tax adjustment
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(116
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77
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—
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—
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Net financial earnings
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$
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88,707
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$
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29,563
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$
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290,828
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$
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261,827
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||||||||
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||||||||||||||||
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Weighted Average Shares Outstanding
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||||||||||||||||
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Basic
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99,308
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97,568
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98,634
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97,028
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Diluted
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99,964
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98,192
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99,289
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97,627
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Basic earnings per share
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$
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0.92
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$
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0.38
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$
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2.94
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$
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2.73
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||||||||
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Add:
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||||||||||||||||
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Unrealized (gain) loss on derivative instruments and related transactions
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(0.04
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)
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(0.08
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)
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0.20
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(0.39
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)
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Tax effect
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—
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0.02
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(0.05
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)
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0.09
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|||||||||||
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Effects of economic hedging related to natural gas inventory
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0.01
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(0.02
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)
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(0.18
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)
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0.36
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||||||||||
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Tax effect
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—
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—
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0.04
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(0.09
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)
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|||||||||||
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Basic net financial earnings per share
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$
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0.89
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$
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0.30
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$
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2.95
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$
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2.70
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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 Fiscal 2024 Fourth Quarter
and Year-End Results
Page 3 of 13
A table detailing NFE by business segment for the three and twelve months ended September 30, 2024 and 2023, is provided below.
Net financial (loss) earnings by business segment
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Three Months Ended
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Twelve Months Ended
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September 30,
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September 30,
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(Thousands)
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2024
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2023
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2024
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2023
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New Jersey Natural Gas
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$
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(19,000
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)
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$
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(24,838
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)
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$
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133,400
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$
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131,414
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Clean Energy Ventures
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35,470
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50,152
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33,662
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44,458
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Storage and Transportation
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2,468
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1,784
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12,229
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12,835
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Energy Services
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68,284
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(3,537
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)
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111,515
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68,517
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Home Services and Other
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(639
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)
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3,451
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26
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4,758
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Subtotal
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86,583
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27,012
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290,832
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261,982
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Eliminations
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2,124
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2,551
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(4
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)
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(155
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)
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Total
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$
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88,707
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$
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29,563
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$
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290,828
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$
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261,827
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Fiscal 2025 NFE Guidance:
NJR is introducing its fiscal 2025 NFEPS guidance range of $3.05 to $3.20, subject to the risks and uncertainties identified below under “Forward-Looking Statements.” Fiscal 2025 NFEPS
guidance is higher than the range implied by our 7 to 9 percent long-term NFEPS growth target as a
result of the one-time gain from the sale of NJR’s residential solar portfolio.
The following chart represents NJR’s current expected contributions from its business segments for fiscal
2025 (which takes into account the impact of the one-time gain from the sale of NJR’s residential solar portfolio):
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Segment
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Expected fiscal 2025
net financial earnings
contribution
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New Jersey Natural Gas
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65 to 75 percent
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Clean Energy Ventures
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20 to 25 percent
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Storage and Transportation
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3 to 7 percent
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Energy Services
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3 to 7 percent
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Home Services and Other
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0 to 1 percent
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In providing fiscal 2025 NFE
guidance, management is aware there could be differences between reported GAAP earnings and NFE due to matters such as, but not limited to, the positions of our energy-related derivatives. Management is not able to reasonably estimate the aggregate
impact or significance of these items on reported earnings and, therefore, is not able to provide a reconciliation to the corresponding GAAP equivalent for its operating earnings guidance without unreasonable efforts.
NJR Reports Fiscal 2024 Fourth Quarter
and Year-End Results
Page 4 of 13
NJNG reported fiscal 2024 NFE of $133.4 million, compared to NFE of $131.4 million during fiscal 2023. NJNG reported fiscal 2024 fourth-quarter net
financial loss of $(19.0) million, compared to a net financial loss of $(24.8) million during the same period in fiscal 2023. The increase in NFE for the year was due primarily to higher utility gross margin due to customer growth,
partially offset by higher depreciation expenses.
Customer Growth:
| • |
NJNG added 8,079 new customers during the year, finishing fiscal 2024 with a total of approximately 583,000 customers in New Jersey’s Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington counties. NJNG
expects new customers added during fiscal 2024 to contribute approximately $6.8 million of
incremental utility gross margin on an annualized basis.
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Base Rate Case Settlement:
| • |
On November 21, 2024, the BPU issued an order adopting a stipulation of settlement approving a $157.0M increase to base rates, effective November 21, 2024. The increase includes an overall rate of return on
rate base of 7.08 percent, return on common equity of 9.60 percent, a common equity ratio
of 54.0 percent and a depreciation rate of 3.21 percent.
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Infrastructure Update:
| • |
NJNG’s Infrastructure Investment Program (IIP) is a five-year, $150 million accelerated recovery
program that began in fiscal 2021. IIP consists of a series of infrastructure projects designed to enhance the safety and reliability of NJNG’s natural gas distribution system. During fiscal 2024, NJNG spent $42.2 million under the program on various distribution system
reinforcement projects. NJNG submitted its annual IIP filing to the BPU requesting a rate increase for capital expenditures during fiscal 2024. The BPU approved
this filing, which will result in a $4.7 million revenue increase, with an effective date of October
1, 2024.
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Basic Gas Supply Service (BGSS) Incentive Programs:
BGSS incentive programs contributed $17.9 million to utility gross margin in fiscal 2024, compared with $20.0 million in fiscal 2023. This decline was largely due to decreased margins from storage incentive along with lower off-system sales margin due to less market volatility and lower capacity release volumes.
For more information on utility gross margin, please see “Non-GAAP Financial Information” below.
Energy-Efficiency Programs:
SAVEGREEN® invested $71.3 million in fiscal 2024 in energy-efficiency upgrades for customers’ homes and businesses. NJNG recovered $28.6 million of its outstanding investments
during fiscal 2024 through its energy efficiency rate.
| • |
On October 30, 2024, NJNG received approval from the BPU for a new $385.6 million SAVEGREEN® program, the largest in NJNG’s history. The program is effective January 1, 2025 through June 30, 2027.
|
NJR Reports Fiscal 2024 Fourth Quarter
and Year-End Results
Page 5 of 13
Clean Energy Ventures (CEV)
CEV reported fiscal 2024 NFE of $33.7 million, compared with NFE of $44.5 million during fiscal 2023. Fiscal 2024 fourth-quarter NFE were $35.5
million, compared with NFE of $50.2 million during the same period in fiscal 2023. The
decrease in NFE for fiscal 2024 was largely due to a reversal of a valuation allowance on certain deferred tax assets in fiscal 2023 that did not reoccur in fiscal 2024. The decrease in NFE for the fiscal
2024 fourth quarter was largely due to lower SREC and Transition Renewable Energy Certificate (TREC) revenue for the period.
Solar Investment Update:
| • |
As of September 30, 2024, CEV had approximately 386MW
of commercial solar capacity in service in New Jersey, New York, Connecticut, Rhode Island, Indiana, and Michigan.
|
| • |
In November 2024, CEV announced the sale of its 91MW residential solar portfolio for a total of $132.5 million. NJR expects to record a gain on sale in fiscal 2025 and intends to use the proceeds to pay down corporate debt and for general working capital purposes.
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Storage and Transportation
Storage and Transportation reported fiscal 2024 NFE of $12.2 million, compared with NFE of $12.8 million in fiscal 2023.
Fiscal 2024 fourth-quarter NFE were $2.5 million, compared with NFE of $1.8 million during the same period in fiscal 2023.
Fiscal 2024 NFE decreased slightly due to higher operating and maintenance expenses, partially offset by higher revenues during the year.
Energy Services
Energy Services reported fiscal 2024 NFE of $111.5 million, compared with NFE of $68.5 million in fiscal 2023.
Fiscal 2024 fourth-quarter NFE were $68.3 million compared with a net financial loss of $(3.5) million for the same period in fiscal
2023. The increase in NFE for both periods was due primarily to higher contributions from the AMAs signed in December 2020.
Home Services and Other Operations
Home Services and Other Operations reported fiscal 2024 NFE of $0.03 million, compared with NFE of $4.8 million in fiscal
2023. Fiscal 2024 fourth-quarter net financial loss was $(0.6) million, compared to NFE of $3.5 million for the same period in fiscal 2023. The decrease in NFE for both periods was largely due to higher operations and maintenance expenses.
Capital Expenditures and Cash Flows:
NJR is committed to maintaining a strong financial profile:
| • |
During fiscal 2024, capital expenditures were $575.1
million, including accruals, compared with $537.3 million during fiscal 2023. The
increase in capital expenditures was primarily due to higher expenditures at NJNG.
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| • |
During fiscal 2024, cash flows from operations were $427.4
million, compared to cash flows from operations of $479.0 million during fiscal 2023. The decrease was largely due to changes in the mix of working capital components.
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NJR Reports Fiscal 2024 Fourth Quarter
and Year-End 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, statements regarding NJR’s NFEPS guidance for fiscal 2025, projected NFEPS growth rates and our guidance range, forecasted contributions of business segments to
NJR’s NFE for fiscal 2025, forecasted increase in the fiscal 2025 dividend, customer growth at NJNG and their expected contributions, expected impact of the sale of NJR’s residential solar portfolio and expected use of proceeds from the sale,
infrastructure programs and investments, future decarbonization opportunities including IIP, Energy Efficiency programs, including BGSS, the financial impact of the outcome of base rate cases with the BPU, the outcome or timing of Adelphia’s rate
case with FERC, and other legal and regulatory expectations, and statements that include other projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact.
Additional information and factors that could cause actual results to differ materially from NJR’s expectations are contained in NJR’s filings with
the SEC, including NJR’s Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC’s website, http://www.sec.gov. Information included in
this earnings release is representative as of today only and while NJR periodically reassesses material trends and uncertainties affecting NJR’s results of operations and financial condition in connection with its preparation of management’s
discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, NJR does not, by including this statement, assume any obligation to review or revise any particular
forward-looking statement referenced herein in light of new information, future events or otherwise, except as required by law.
Non-GAAP Financial Information:
This earnings release includes the non-GAAP financial measures NFE/net financial loss, NFE per basic share, financial margin and utility gross margin.
A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. As an indicator of NJR’s operating performance, these measures should not
be considered an alternative to, or more meaningful than, net income or operating revenues as determined in accordance with GAAP. This information has been provided pursuant to the requirements of SEC Regulation G.
NFE and financial margin exclude unrealized gains or losses on derivative instruments
related to NJR’s unregulated subsidiaries and certain realized gains and losses on derivative instruments related to natural gas that has been placed into storage at Energy Services, net of applicable tax adjustments as described below. Financial
margin also differs from gross margin as defined on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization as well as the effects of derivatives as discussed above. Volatility associated with the change in value of these financial instruments and physical commodity reported on the income statement in the current period. In order to manage its business,
NJR views its results without the impacts of the unrealized gains and losses, and certain realized gains and losses, caused by changes in value of these financial instruments and physical commodity contracts prior to the completion of the
planned transaction because it shows changes in value currently instead of when the planned transaction ultimately is settled. An annual estimated effective tax rate is calculated for NFE purposes and any necessary quarterly tax adjustment is
applied to NJR Energy Services Company.
NJNG’s utility gross margin is defined as operating revenues less natural gas purchases, sales tax, and regulatory rider expense. This measure differs
from gross margin as presented on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization. Utility gross margin may also not be comparable to the definition of gross margin used by others in the
natural gas distribution business and other industries. Management believes that utility gross margin provides a meaningful basis for evaluating utility operations since natural gas costs, sales tax and regulatory rider expenses are included in
operating revenues and passed through to customers and, therefore, have no effect on utility gross margin.
NJR Reports Fiscal 2024 Fourth Quarter
and Year-End Results
Page 7 of 13
Management uses these non-GAAP financial measures as supplemental measures to other GAAP results to provide a more complete understanding of NJR’s
performance. Management believes these non-GAAP financial measures are more reflective of NJR’s business model, provide transparency to investors and enable period-to-period comparability of financial performance. A reconciliation of all non-GAAP
financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. For a full discussion of NJR’s non-GAAP financial measures, please see NJR’s most recent Report on Form 10-K,
Item 7.
About New Jersey Resources
New Jersey Resources (NYSE: NJR) is a Fortune 1000
company that, through its subsidiaries, provides safe and reliable natural gas and clean energy services, including transportation, distribution, asset management and home services. NJR is composed of five primary businesses:
| • |
New Jersey Natural Gas, NJR’s principal subsidiary, operates and maintains natural gas transportation and distribution infrastructure to serve customers in New Jersey’s Monmouth, Ocean, Morris, Middlesex, Sussex and
Burlington counties.
|
| • |
Clean Energy Ventures invests in, owns and operates solar
projects, providing customers with low-carbon solutions.
|
| • |
Energy Services manages a diversified portfolio of natural
gas transportation and storage assets and provides physical natural gas services and customized energy solutions to its customers across North America.
|
| • |
Storage and Transportation serves customers from local
distributors and producers to electric generators and wholesale marketers through its ownership of Leaf River and the Adelphia Gateway Pipeline, as well as our 50%
equity ownership in the Steckman Ridge natural gas storage facility.
|
| • |
Home Services provides service contracts as well as heating,
central air conditioning, water heaters, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey.
|
NJR and its over 1,300 employees are committed to helping customers save energy and money by promoting conservation and encouraging efficiency through Conserve to
Preserve® and initiatives such as SAVEGREEN®.
For more information about NJR:
www.njresources.com.
Follow us on X.com (Twitter) @NJNaturalGas.
“Like” us on facebook.com/NewJerseyNaturalGas.
NJR Reports Fiscal 2024 Fourth Quarter
and Year-End Results
Page 8 of 13
|
NEW JERSEY RESOURCES
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||||
|
(Thousands, except per share data)
|
2024
|
2023
|
2024
|
2023
|
||||||||||||
|
OPERATING REVENUES
|
||||||||||||||||
|
Utility
|
$
|
104,753
|
$
|
108,404
|
$
|
1,018,482
|
$
|
1,011,284
|
||||||||
|
Nonutility
|
291,027
|
222,921
|
778,057
|
951,710
|
||||||||||||
|
Total operating revenues
|
395,780
|
331,325
|
1,796,539
|
1,962,994
|
||||||||||||
|
OPERATING EXPENSES
|
||||||||||||||||
|
Gas purchases
|
||||||||||||||||
|
Utility
|
31,493
|
34,998
|
405,332
|
416,158
|
||||||||||||
|
Nonutility
|
78,960
|
87,228
|
304,426
|
555,579
|
||||||||||||
|
Related parties
|
1,740
|
1,739
|
7,147
|
7,206
|
||||||||||||
|
Operation and maintenance
|
88,596
|
100,759
|
394,636
|
373,568
|
||||||||||||
|
Regulatory rider expenses
|
3,566
|
3,017
|
60,327
|
50,542
|
||||||||||||
|
Depreciation and amortization
|
45,298
|
39,291
|
166,567
|
152,941
|
||||||||||||
|
Total operating expenses
|
249,653
|
267,032
|
1,338,435
|
1,555,994
|
||||||||||||
|
OPERATING INCOME
|
146,127
|
64,293
|
458,104
|
407,000
|
||||||||||||
|
Other income, net
|
10,237
|
10,938
|
41,553
|
26,083
|
||||||||||||
|
Interest expense, net of capitalized interest
|
36,012
|
33,143
|
130,275
|
123,014
|
||||||||||||
|
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES
|
120,352
|
42,088
|
369,382
|
310,069
|
||||||||||||
|
Income tax provision
|
30,787
|
6,216
|
84,906
|
49,275
|
||||||||||||
|
Equity in earnings of affiliates
|
1,561
|
1,152
|
5,299
|
3,930
|
||||||||||||
|
NET INCOME
|
$
|
91,126
|
$
|
37,024
|
$
|
289,775
|
$
|
264,724
|
||||||||
|
|
||||||||||||||||
|
EARNINGS PER COMMON SHARE
|
||||||||||||||||
|
Basic
|
$
|
0.92
|
$
|
0.38
|
$
|
2.94
|
$
|
2.73
|
||||||||
|
Diluted
|
$
|
0.91
|
$
|
0.38
|
$
|
2.92
|
$
|
2.71
|
||||||||
|
|
||||||||||||||||
|
WEIGHTED AVERAGE SHARES OUTSTANDING
|
||||||||||||||||
|
Basic
|
99,308
|
97,568
|
98,634
|
97,028
|
||||||||||||
|
Diluted
|
99,964
|
98,192
|
99,289
|
97,627
|
||||||||||||
|
|
||||||||||||||||
NJR Reports Fiscal 2024 Fourth Quarter
and Year-End Results
Page 9 of 13
|
RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES
|
|
(Unaudited)
|
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||||
|
(Thousands)
|
2024
|
2023
|
2024
|
2023
|
||||||||||||
|
NEW JERSEY RESOURCES
|
||||||||||||||||
|
A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:
|
||||||||||||||||
|
Net income
|
$
|
91,126
|
$
|
37,024
|
$
|
289,775
|
$
|
264,724
|
||||||||
|
Add:
|
||||||||||||||||
|
Unrealized (gain) loss on derivative instruments and related transactions
|
(4,286
|
)
|
(7,579
|
)
|
19,574
|
(38,081
|
)
|
|||||||||
|
Tax effect
|
1,018
|
1,800
|
(4,652
|
)
|
9,050
|
|||||||||||
|
Effects of economic hedging related to natural gas inventory
|
1,266
|
(2,186
|
)
|
(18,192
|
)
|
34,699
|
||||||||||
|
Tax effect
|
(301
|
)
|
520
|
4,323
|
(8,246
|
)
|
||||||||||
|
Gain on equity method investment
|
—
|
—
|
—
|
(300
|
)
|
|||||||||||
|
Tax effect
|
—
|
(93
|
)
|
—
|
(19
|
)
|
||||||||||
|
NFE tax adjustment
|
(116
|
)
|
77
|
—
|
—
|
|||||||||||
|
Net financial earnings
|
$
|
88,707
|
$
|
29,563
|
$
|
290,828
|
$
|
261,827
|
||||||||
|
|
||||||||||||||||
|
Weighted Average Shares Outstanding
|
||||||||||||||||
|
Basic
|
99,308
|
97,568
|
98,634
|
97,028
|
||||||||||||
|
Diluted
|
99,964
|
98,192
|
99,289
|
97,627
|
||||||||||||
|
|
||||||||||||||||
|
A reconciliation of basic earnings per share, the closest GAAP financial measure, to basic net
financial earnings per share is as follows:
|
||||||||||||||||
|
|
||||||||||||||||
|
Basic earnings per share
|
$
|
0.92
|
$
|
0.38
|
$
|
2.94
|
$
|
2.73
|
||||||||
|
Add:
|
||||||||||||||||
|
Unrealized (gain) loss on derivative instruments and related transactions
|
$
|
(0.04
|
)
|
$
|
(0.08
|
)
|
$
|
0.20
|
$
|
(0.39
|
)
|
|||||
|
Tax effect
|
$
|
—
|
$
|
0.02
|
$
|
(0.05
|
)
|
$
|
0.09
|
|||||||
|
Effects of economic hedging related to natural gas inventory
|
$
|
0.01
|
$
|
(0.02
|
)
|
$
|
(0.18
|
)
|
$
|
0.36
|
||||||
|
Tax effect
|
$
|
—
|
$
|
—
|
$
|
0.04
|
$
|
(0.09
|
)
|
|||||||
|
Basic net financial earnings per share
|
$
|
0.89
|
$
|
0.30
|
$
|
2.95
|
$
|
2.70
|
||||||||
|
|
||||||||||||||||
|
NATURAL GAS DISTRIBUTION
|
||||||||||||||||
|
|
||||||||||||||||
|
A reconciliation of gross margin, the closest GAAP financial measure, to utility gross margin is as
follows:
|
||||||||||||||||
|
|
||||||||||||||||
|
Operating revenues
|
$
|
105,091
|
$
|
108,741
|
$
|
1,019,832
|
$
|
1,012,633
|
||||||||
|
Less:
|
||||||||||||||||
|
Natural gas purchases
|
33,817
|
37,323
|
414,635
|
425,457
|
||||||||||||
|
Operating and maintenance (1)
|
22,935
|
31,605
|
113,984
|
115,292
|
||||||||||||
|
Regulatory rider expense
|
3,566
|
3,017
|
60,327
|
50,542
|
||||||||||||
|
Depreciation and amortization
|
29,620
|
26,292
|
112,492
|
102,326
|
||||||||||||
|
Gross margin
|
15,153
|
10,504
|
318,394
|
319,016
|
||||||||||||
|
Add:
|
||||||||||||||||
|
Operating and maintenance (1)
|
22,935
|
31,605
|
113,984
|
115,292
|
||||||||||||
|
Depreciation and amortization
|
29,620
|
26,292
|
112,492
|
102,326
|
||||||||||||
|
Utility gross margin
|
$
|
67,708
|
$
|
68,401
|
$
|
544,870
|
$
|
536,634
|
||||||||
|
(1)
|
Excludes selling, general and administrative expenses of $23.6
million and $28.7 million for the three months ended September 30, 2024 and
2023, respectively, and $111.3 million and $111.5 million for the fiscal years ended September
30, 2024 and 2023, respectively.
|
NJR Reports Fiscal 2024 Fourth Quarter
and Year-End Results
Page 10 of 13
|
RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (continued)
|
|
(Unaudited)
|
|
|
Three Months Ended
|
Twelve Months Ended
|
||||||||||||||
|
|
September 30,
|
September 30,
|
||||||||||||||
|
(Thousands)
|
2024
|
2023
|
2024
|
2023
|
||||||||||||
|
ENERGY SERVICES
|
||||||||||||||||
|
|
||||||||||||||||
|
A reconciliation of gross margin, the closest GAAP financial measure, to Energy Services’ financial margin is as follows:
|
||||||||||||||||
|
|
||||||||||||||||
|
Operating revenues
|
$
|
178,420
|
$
|
102,932
|
$
|
485,391
|
$
|
691,616
|
||||||||
|
Less:
|
||||||||||||||||
|
Natural Gas purchases
|
79,097
|
87,932
|
305,938
|
558,932
|
||||||||||||
|
Operation and maintenance (1)
|
1,583
|
5,833
|
23,189
|
20,199
|
||||||||||||
|
Depreciation and amortization
|
47
|
51
|
205
|
221
|
||||||||||||
|
Gross margin
|
97,693
|
9,116
|
156,059
|
112,264
|
||||||||||||
|
Add:
|
||||||||||||||||
|
Operation and maintenance (1)
|
1,583
|
5,833
|
23,189
|
20,199
|
||||||||||||
|
Depreciation and amortization
|
47
|
51
|
205
|
221
|
||||||||||||
|
Unrealized (gain) loss on derivative instruments and related transactions
|
(4,287
|
)
|
(8,559
|
)
|
24,449
|
(48,251
|
)
|
|||||||||
|
Effects of economic hedging related to natural gas inventory
|
1,266
|
(2,186
|
)
|
(18,192
|
)
|
34,699
|
||||||||||
|
Financial margin
|
$
|
96,302
|
$
|
4,255
|
$
|
185,710
|
$
|
119,132
|
||||||||
|
(1)
|
Excludes selling, general and administrative expenses of $0.5
million and $0.4 million for the three months ended September 30, 2024 and 2023, respectively, and $1.8 million and $(0.8) million for the fiscal years
ended September 30, 2024 and 2023, respectively.
|
|
A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:
|
||||||||||||||||
|
|
||||||||||||||||
|
Net income
|
$
|
70,703
|
$
|
4,577
|
$
|
106,745
|
$
|
78,848
|
||||||||
|
Add:
|
||||||||||||||||
|
Unrealized (gain) loss on derivative instruments and related transactions
|
(4,287
|
)
|
(8,559
|
)
|
24,449
|
(48,251
|
)
|
|||||||||
|
Tax effect
|
1,019
|
2,034
|
(5,810
|
)
|
11,467
|
|||||||||||
|
Effects of economic hedging related to natural gas
|
1,266
|
(2,186
|
)
|
(18,192
|
)
|
34,699
|
||||||||||
|
Tax effect
|
(301
|
)
|
520
|
4,323
|
(8,246
|
)
|
||||||||||
|
NFE tax adjustment
|
(116
|
)
|
77
|
—
|
—
|
|||||||||||
|
Net financial earnings (loss)
|
$
|
68,284
|
$
|
(3,537
|
)
|
$
|
111,515
|
$
|
68,517
|
|||||||
|
|
||||||||||||||||
NJR Reports Fiscal 2024 Fourth Quarter
and Year-End Results
Page 11 of 13
FINANCIAL STATISTICS BY BUSINESS UNIT
(Unaudited)
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||||
|
(Thousands, except per share data)
|
2024
|
2023
|
2024
|
2023
|
||||||||||||
|
NEW JERSEY RESOURCES
|
||||||||||||||||
|
|
||||||||||||||||
|
Operating Revenues
|
||||||||||||||||
|
Natural Gas Distribution
|
$
|
105,091
|
$
|
108,741
|
$
|
1,019,832
|
$
|
1,012,633
|
||||||||
|
Clean Energy Ventures
|
71,295
|
83,755
|
130,563
|
124,131
|
||||||||||||
|
Energy Services
|
178,420
|
102,932
|
485,391
|
691,616
|
||||||||||||
|
Storage and Transportation
|
24,830
|
22,933
|
96,209
|
92,859
|
||||||||||||
|
Home Services and Other
|
16,540
|
14,969
|
62,635
|
57,638
|
||||||||||||
|
Sub-total
|
396,176
|
333,330
|
1,794,630
|
1,978,877
|
||||||||||||
|
Eliminations
|
(396
|
)
|
(2,005
|
)
|
1,909
|
(15,883
|
)
|
|||||||||
|
Total
|
$
|
395,780
|
$
|
331,325
|
$
|
1,796,539
|
$
|
1,962,994
|
||||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
Operating (Loss) Income
|
||||||||||||||||
|
Natural Gas Distribution
|
$
|
(8,399
|
)
|
$
|
(18,172
|
)
|
$
|
207,118
|
$
|
207,528
|
||||||
|
Clean Energy Ventures
|
51,637
|
67,389
|
58,652
|
58,722
|
||||||||||||
|
Energy Services
|
97,241
|
8,742
|
154,279
|
113,112
|
||||||||||||
|
Storage and Transportation
|
6,027
|
5,901
|
27,198
|
32,425
|
||||||||||||
|
Home Services and Other
|
684
|
595
|
2,642
|
2,495
|
||||||||||||
|
Sub-total
|
147,190
|
64,455
|
449,889
|
414,282
|
||||||||||||
|
Eliminations
|
(1,063
|
)
|
(162
|
)
|
8,215
|
(7,282
|
)
|
|||||||||
|
Total
|
$
|
146,127
|
$
|
64,293
|
$
|
458,104
|
$
|
407,000
|
||||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
Equity in Earnings of Affiliates
|
||||||||||||||||
|
Storage and Transportation
|
$
|
956
|
$
|
863
|
$
|
2,816
|
$
|
3,126
|
||||||||
|
Eliminations
|
605
|
289
|
2,483
|
804
|
||||||||||||
|
Total
|
$
|
1,561
|
$
|
1,152
|
$
|
5,299
|
$
|
3,930
|
||||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
Net (Loss) Income
|
||||||||||||||||
|
Natural Gas Distribution
|
$
|
(19,000
|
)
|
$
|
(24,838
|
)
|
$
|
133,400
|
$
|
131,414
|
||||||
|
Clean Energy Ventures
|
35,470
|
50,152
|
33,662
|
44,458
|
||||||||||||
|
Energy Services
|
70,703
|
4,577
|
106,745
|
78,848
|
||||||||||||
|
Storage and Transportation
|
2,468
|
1,877
|
12,229
|
13,154
|
||||||||||||
|
Home Services and Other
|
(639
|
)
|
3,451
|
26
|
4,758
|
|||||||||||
|
Sub-total
|
89,002
|
35,219
|
286,062
|
272,632
|
||||||||||||
|
Eliminations
|
2,124
|
1,805
|
3,713
|
(7,908
|
)
|
|||||||||||
|
Total
|
$
|
91,126
|
$
|
37,024
|
$
|
289,775
|
$
|
264,724
|
||||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
Net Financial (Loss) Earnings
|
||||||||||||||||
|
Natural Gas Distribution
|
$
|
(19,000
|
)
|
$
|
(24,838
|
)
|
$
|
133,400
|
$
|
131,414
|
||||||
|
Clean Energy Ventures
|
35,470
|
50,152
|
33,662
|
44,458
|
||||||||||||
|
Energy Services
|
68,284
|
(3,537
|
)
|
111,515
|
68,517
|
|||||||||||
|
Storage and Transportation
|
2,468
|
1,784
|
12,229
|
12,835
|
||||||||||||
|
Home Services and Other
|
(639
|
)
|
3,451
|
26
|
4,758
|
|||||||||||
|
Sub-total
|
86,583
|
27,012
|
290,832
|
261,982
|
||||||||||||
|
Eliminations
|
2,124
|
2,551
|
(4
|
)
|
(155
|
)
|
||||||||||
|
Total
|
$
|
88,707
|
$
|
29,563
|
$
|
290,828
|
$
|
261,827
|
||||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
Throughput (Bcf)
|
||||||||||||||||
|
NJNG, Core Customers
|
15.1
|
17.4
|
90.5
|
93.4
|
||||||||||||
|
NJNG, Off System/Capacity Management
|
8.4
|
20.6
|
85.0
|
72.6
|
||||||||||||
|
Energy Services Fuel Mgmt. and Wholesale Sales
|
33.3
|
41.4
|
125.3
|
150.4
|
||||||||||||
|
Total
|
56.8
|
79.4
|
300.8
|
316.4
|
||||||||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
Common Stock Data
|
||||||||||||||||
|
Yield at September 30,
|
3.8
|
%
|
4.1
|
%
|
3.8
|
%
|
4.1
|
%
|
||||||||
|
Market Price at September 30,
|
$
|
47.20
|
$
|
40.63
|
$
|
47.20
|
$
|
40.63
|
||||||||
|
Shares Out. at September 30,
|
99,461
|
97,584
|
99,461
|
97,584
|
||||||||||||
|
Market Cap. at September 30,
|
$
|
4,694,580
|
$
|
3,964,856
|
$
|
4,694,580
|
$
|
3,964,856
|
||||||||
|
|
||||||||||||||||
NJR Reports Fiscal 2024 Fourth Quarter
and Year-End Results
Page 12 of 13
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
|
(Unaudited)
|
September 30,
|
September 30,
|
||||||||||||||
|
(Thousands, except customer and weather data)
|
2024
|
2023
|
2024
|
2023
|
||||||||||||
|
NATURAL GAS DISTRIBUTION
|
||||||||||||||||
|
Utility Gross Margin
|
||||||||||||||||
|
Operating revenues
|
$
|
105,091
|
$
|
108,741
|
$
|
1,019,832
|
$
|
1,012,633
|
||||||||
|
Less:
|
||||||||||||||||
|
Natural gas purchases
|
33,817
|
37,323
|
414,635
|
425,457
|
||||||||||||
|
Operating and maintenance (1)
|
22,935
|
31,605
|
113,984
|
115,292
|
||||||||||||
|
Regulatory rider expense
|
3,566
|
3,017
|
60,327
|
50,542
|
||||||||||||
|
Depreciation and amortization
|
29,620
|
26,292
|
112,492
|
102,326
|
||||||||||||
|
Gross margin
|
15,153
|
10,504
|
318,394
|
319,016
|
||||||||||||
|
Add:
|
||||||||||||||||
|
Operating and maintenance (1)
|
22,935
|
31,605
|
113,984
|
115,292
|
||||||||||||
|
Depreciation and amortization
|
29,620
|
26,292
|
112,492
|
102,326
|
||||||||||||
|
Total Utility Gross Margin
|
$
|
67,708
|
$
|
68,401
|
$
|
544,870
|
$
|
536,634
|
||||||||
|
(1)
|
Excludes selling, general and administrative expenses of $23.6
million and $28.7 million for the fiscal years ended September 30, 2024 and 2023, respectively, and $111.3 million and $111.5 million for the fiscal
years ended September 30, 2024 and 2023, respectively.
|
|
|
||||||||||||||||
|
Utility Gross Margin, Operating Income and Net Income
|
||||||||||||||||
|
Residential
|
$
|
38,954
|
$
|
39,121
|
$
|
369,522
|
$
|
360,138
|
||||||||
|
Commercial, Industrial & Other
|
13,058
|
10,808
|
78,033
|
76,550
|
||||||||||||
|
Firm Transportation
|
12,888
|
14,611
|
75,641
|
76,114
|
||||||||||||
|
Total Firm Margin
|
64,900
|
64,540
|
523,196
|
512,802
|
||||||||||||
|
Interruptible
|
1,118
|
1,240
|
3,798
|
3,812
|
||||||||||||
|
Total System Margin
|
66,018
|
65,780
|
526,994
|
516,614
|
||||||||||||
|
Basic Gas Supply Service Incentive
|
1,690
|
2,621
|
17,876
|
20,020
|
||||||||||||
|
Total Utility Gross Margin
|
67,708
|
68,401
|
544,870
|
536,634
|
||||||||||||
|
Operation and maintenance expense
|
46,487
|
60,281
|
225,260
|
226,780
|
||||||||||||
|
Depreciation and amortization
|
29,620
|
26,292
|
112,492
|
102,326
|
||||||||||||
|
Operating (Loss) Income
|
$
|
(8,399
|
)
|
$
|
(18,172
|
)
|
$
|
207,118
|
$
|
207,528
|
||||||
|
|
||||||||||||||||
|
Net (Loss) Income
|
$
|
(19,000
|
)
|
$
|
(24,838
|
)
|
$
|
133,400
|
$
|
131,414
|
||||||
|
|
||||||||||||||||
|
Net Financial (Loss) Earnings
|
$
|
(19,000
|
)
|
$
|
(24,838
|
)
|
$
|
133,400
|
$
|
131,414
|
||||||
|
|
||||||||||||||||
|
Throughput (Bcf)
|
||||||||||||||||
|
Residential
|
3.4
|
3.4
|
44.5
|
43.4
|
||||||||||||
|
Commercial, Industrial & Other
|
0.8
|
0.4
|
8.5
|
8.4
|
||||||||||||
|
Firm Transportation
|
1.4
|
1.1
|
11.7
|
12.1
|
||||||||||||
|
Total Firm Throughput
|
5.6
|
4.9
|
64.7
|
63.9
|
||||||||||||
|
Interruptible
|
9.5
|
12.5
|
25.8
|
29.5
|
||||||||||||
|
Total System Throughput
|
15.1
|
17.4
|
90.5
|
93.4
|
||||||||||||
|
Off System/Capacity Management
|
8.4
|
20.6
|
85.0
|
72.6
|
||||||||||||
|
Total Throughput
|
23.5
|
38.0
|
175.5
|
166.0
|
||||||||||||
|
|
||||||||||||||||
|
Customers
|
||||||||||||||||
|
Residential
|
528,502
|
520,682
|
528,502
|
520,682
|
||||||||||||
|
Commercial, Industrial & Other
|
31,927
|
31,725
|
31,927
|
31,725
|
||||||||||||
|
Firm Transportation
|
22,442
|
23,490
|
22,442
|
23,490
|
||||||||||||
|
Total Firm Customers
|
582,871
|
575,897
|
582,871
|
575,897
|
||||||||||||
|
Interruptible
|
31
|
83
|
31
|
83
|
||||||||||||
|
Total System Customers
|
582,902
|
575,980
|
582,902
|
575,980
|
||||||||||||
|
Off System/Capacity Management*
|
14
|
20
|
14
|
20
|
||||||||||||
|
Total Customers
|
582,916
|
576,000
|
582,916
|
576,000
|
||||||||||||
|
*The number of customers represents those active during the last month of the period.
|
||||||||||||||||
|
Degree Days
|
||||||||||||||||
|
Actual
|
8
|
28
|
3,960
|
3,897
|
||||||||||||
|
Normal
|
25
|
24
|
4,463
|
4,498
|
||||||||||||
|
Percent of Normal
|
32.0
|
%
|
116.7
|
%
|
88.7
|
%
|
86.6
|
%
|
||||||||
|
|
||||||||||||||||
NJR Reports Fiscal 2024 Fourth Quarter
and Year-End Results
Page 13 of 13
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
|
(Unaudited)
|
September 30,
|
September 30,
|
||||||||||||||
|
(Thousands, except customer, RECs and megawatt)
|
2024
|
2023
|
2024
|
2023
|
||||||||||||
|
CLEAN ENERGY VENTURES
|
||||||||||||||||
|
Operating Revenues
|
||||||||||||||||
|
SREC sales
|
$
|
56,307
|
$
|
69,455
|
$
|
82,539
|
$
|
79,762
|
||||||||
|
TREC sales
|
4,296
|
4,629
|
13,396
|
12,636
|
||||||||||||
|
SREC II sales (1)
|
621
|
398
|
1,715
|
951
|
||||||||||||
|
Solar electricity sales
|
7,012
|
6,210
|
20,934
|
18,831
|
||||||||||||
|
Sunlight Advantage
|
3,059
|
3,063
|
11,979
|
11,951
|
||||||||||||
|
Total Operating Revenues
|
$
|
71,295
|
$
|
83,755
|
$
|
130,563
|
$
|
124,131
|
||||||||
|
Depreciation and Amortization
|
$
|
7,035
|
$
|
6,607
|
$
|
27,869
|
$
|
25,320
|
||||||||
|
Operating Income
|
$
|
51,637
|
$
|
67,389
|
$
|
58,652
|
$
|
58,722
|
||||||||
|
Income Tax (Benefit) Provision
|
$
|
11,877
|
$
|
15,396
|
$
|
11,406
|
$
|
(7,683
|
)
|
|||||||
|
Net Income
|
$
|
35,470
|
$
|
50,152
|
$
|
33,662
|
$
|
44,458
|
||||||||
|
Net Financial Earnings
|
$
|
35,470
|
$
|
50,152
|
$
|
33,662
|
$
|
44,458
|
||||||||
|
Solar Renewable Energy Certificates Generated
|
134,901
|
129,286
|
402,056
|
422,039
|
||||||||||||
|
Solar Renewable Energy Certificates Sold
|
294,943
|
345,035
|
419,266
|
393,906
|
||||||||||||
|
Transition Renewable Energy Certificates Generated
|
30,114
|
28,507
|
93,913
|
80,520
|
||||||||||||
|
Solar Renewable Energy Certificates II Generated
|
6,828
|
4,457
|
19,087
|
10,260
|
||||||||||||
|
Solar Megawatts Under Construction
|
63.8
|
5.6
|
63.8
|
5.6
|
||||||||||||
|
(1)
|
Prior year SREC II revenue was previously included in Solar electricity sales and other
|
|
ENERGY SERVICES
|
||||||||||||||||
|
Operating Income
|
||||||||||||||||
|
Operating revenues
|
$
|
178,420
|
$
|
102,932
|
$
|
485,391
|
$
|
691,616
|
||||||||
|
Less:
|
||||||||||||||||
|
Gas purchases
|
79,097
|
87,932
|
305,938
|
558,932
|
||||||||||||
|
Operation and maintenance expense
|
2,035
|
6,207
|
24,969
|
19,351
|
||||||||||||
|
Depreciation and amortization
|
47
|
51
|
205
|
221
|
||||||||||||
|
Operating Income
|
$
|
97,241
|
$
|
8,742
|
$
|
154,279
|
$
|
113,112
|
||||||||
|
Net Income
|
$
|
70,703
|
$
|
4,577
|
$
|
106,745
|
$
|
78,848
|
||||||||
|
Financial Margin
|
$
|
96,302
|
$
|
4,255
|
$
|
185,710
|
$
|
119,132
|
||||||||
|
Net Financial Earnings (Loss)
|
$
|
68,284
|
$
|
(3,537
|
)
|
$
|
111,515
|
$
|
68,517
|
|||||||
|
Gas Sold and Managed (Bcf)
|
33.3
|
41.4
|
125.3
|
150.4
|
||||||||||||
|
STORAGE AND TRANSPORTATION
|
||||||||||||||||
|
Operating Revenues
|
$
|
24,830
|
$
|
22,933
|
$
|
96,209
|
$
|
92,859
|
||||||||
|
Equity in Earnings of Affiliates
|
$
|
956
|
$
|
863
|
$
|
2,816
|
$
|
3,126
|
||||||||
|
Operation and Maintenance Expense
|
$
|
12,341
|
$
|
10,697
|
$
|
43,083
|
$
|
34,648
|
||||||||
|
Other Income, Net
|
$
|
2,907
|
$
|
2,021
|
$
|
10,207
|
$
|
6,850
|
||||||||
|
Interest Expense
|
$
|
5,867
|
$
|
6,538
|
$
|
23,441
|
$
|
25,803
|
||||||||
|
Income Tax Provision
|
$
|
1,555
|
$
|
370
|
$
|
4,551
|
$
|
3,444
|
||||||||
|
Net Income
|
$
|
2,468
|
$
|
1,877
|
$
|
12,229
|
$
|
13,154
|
||||||||
|
Net Financial Earnings
|
$
|
2,468
|
$
|
1,784
|
$
|
12,229
|
$
|
12,835
|
||||||||
|
HOME SERVICES AND OTHER
|
||||||||||||||||
|
Operating Revenues
|
$
|
16,540
|
$
|
14,969
|
$
|
62,635
|
$
|
57,638
|
||||||||
|
Operating Income
|
$
|
684
|
$
|
595
|
$
|
2,642
|
$
|
2,495
|
||||||||
|
Net (Loss) Income
|
$
|
(639
|
)
|
$
|
3,451
|
$
|
26
|
$
|
4,758
|
|||||||
|
Net Financial (Loss) Earnings
|
$
|
(639
|
)
|
$
|
3,451
|
$
|
26
|
$
|
4,758
|
|||||||
|
Total Service Contract Customers at September 30
|
99,753
|
101,499
|
99,753
|
101,499
|
||||||||||||
Exhibit 99.2
Exhibit 99.3
NJR CLEAN ENERGY VENTURES ANNOUNCES SALE OF RESIDENTIAL SOLAR BUSINESS
WALL, N.J., November 25, 2024 — NJR Clean Energy Ventures (CEV), a clean energy subsidiary of
New Jersey Resources (NYSE: NJR), today announced the sale of its 91 megawatt (MW) residential solar portfolio, to Spruce Power Holding Corporation (NYSE: SPRU) for a total of $132.5 million.
NJR expects to record a gain on sale in fiscal 2025, and will use the proceeds to pay down corporate debt and for general working capital
purposes.
“Renewable energy investments are an integral part of our business and will continue to be a key driver of NJR’s long-term growth strategy,” said Steve Westhoven,
President and CEO of New Jersey Resources. “Following this transaction, Clean Energy Ventures will have a sharpened focus on the strong opportunities for growth within its commercial solar portfolio, driven by a nearly 1 gigawatt (GW) pipeline of
diverse investment options.”
CEV’s residential solar program, which operated under the brand of “The Sunlight Advantage®,” provides qualifying homeowners with the opportunity to have a solar system
installed at their home with no installation or maintenance expenses. The existing lease agreements will be assumed by Spruce in full for the approximately 9,800 participating homeowners.
Since 2009, CEV has invested over $1.2 billion in solar projects, becoming the largest owner-operator of commercial
solar in New Jersey. CEV has begun to diversify regionally and now has assets in New York, Connecticut, Rhode Island, Indiana, and Michigan.
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:
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New Jersey Natural Gas, NJR’s principal subsidiary, operates and maintains natural gas transportation and distribution infrastructure to serve customers in New Jersey’s Monmouth, Ocean, Morris, Middlesex, Sussex and
Burlington counties.
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Clean Energy Ventures invests in, owns and operates solar
projects, providing customers with low-carbon solutions.
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NJR Clean Energy Ventures Announces Sale of Residential Solar Business
Page 2
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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.
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Storage and Transportation serves customers from local
distributors and producers to electric generators and wholesale marketers through its ownership of Leaf River Storage and the Adelphia Gateway Pipeline, as well as its 50%
equity ownership in the Steckman Ridge natural gas storage facility.
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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 homeowners throughout New Jersey.
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NJR and its over 1,300 employees are committed to helping customers save energy and money by promoting conservation and encouraging efficiency through Conserve to
Preserve® and initiatives such as SAVEGREEN®.
For more information about NJR:
www.njresources.com.
Follow us on X.com (Twitter) @NJNaturalGas.
“Like” us on facebook.com/NewJerseyNaturalGas.
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