Newjersey Resources Corporation · NYSE:NJR
Newjersey Resources — Investor Presentation (June 2025)
34 slides from Newjersey Resources's investor presentation, Jun 13, 2025
Slide 1: Investor Meetings June 2025 Investor Presentation
Investor Meetings June 2025 Investor Presentation
Slide 2: Forward-Looking Statements and Non-GAAP Measures
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 Li
Slide 3: Contents
Contents NJR At a Glance New Jersey Resources Overview 4 NJR: Investment Highlights 5 NJR: Business Portfolio 6 New Jersey Natural Gas (NJNG): Overview 7 NJNG: Supportive Regulatory Construct 8 NJNG: Customer Growth and Capital Expenditures 9 NJNG: New Base Rates and Energy Efficiency Settlement 10
Slide 4: NJR: Investment Thesis
NJR: Investment Thesis Complementary Energy Infrastructure Platform with Predictable Earnings and Incremental Growth Opportunities * Net Financial Earnings Per Share Consistent Execution Guidance Increases in Each of the Past 5 Years Industry Leading Growth Rate Stated 7-9% long-term annual NFEPS* g
Slide 5: NJR: Business Portfolio
NJR Home Services offers customers home comfort solutions, including equipment sales and installations; solar lease and purchase plans; and a service contract product line, including heating, cooling, water heating, electric and standby generator contracts Recognized as a Top 20 Ruud® National Pro P
Slide 6: New Jersey Natural Gas (NJNG): Overview
New Jersey Natural Gas (NJNG): Overview Operates and Maintains Natural Gas Transportation and Distribution Infrastructure Serving Approximately 588,000 Customers in New Jersey (predominately located in Monmouth, Ocean, Morris Counties, as well as Middlesex, Sussex and Burlington Counties) 588,000 To
Slide 7: NJNG: Supportive Regulatory Construct
Launched in 2009, SAVEGREEN™ provides energy efficiency solutions that meet the unique needs and budgets of residential and commercial customers — including low- and moderate income, multifamily, hospitals and municipalities. Investments in SAVEGREEN™ are incremental to our rate base and earn near-r
Slide 8: NJNG: Customer Growth and Capital Expenditures
Investments Under New Program Commenced in Fiscal Q2 2025, Helping Customers Optimize Energy Efficiency to Improve Affordability NJNG: Customer Growth and Capital Expenditures ~46% of capital expenditures earning a near real-time return NJNG Total Customers YTD Fiscal 2025 Capital Expenditures1,2,3
Slide 9: NJNG: New Base Rates and Energy Efficiency Settlement
NJNG: New Base Rates and Energy Efficiency Settlement NJNG announced the conclusion of its Base Rate Case in November 2024 and Energy Efficiency in October 2024 New SAVEGREEN™ Program Approved Settlement of Base Rate Case Filed with the New Jersey Board of Public Utilities in January 2024 Settlement
Slide 10: Clean Energy Ventures (CEV): Overview
Clean Energy Ventures (CEV): Overview Largest Solar Owner-Operator in New Jersey; Diverse and Innovative Commercial Solar Projects Throughout Six States CEV owns and operates commercial solar projects in New Jersey, Rhode Island, New York, Connecticut, Indiana, and Michigan with approximately 417MW
Slide 11: CEV: Diverse Portfolio of Investment Options
CEV: Diverse Portfolio of Investment Options CEV Owns and Operates Solar Projects with Approximately 417MW of Commercial Solar Capacity Total ~1.4GW MWs Pipeline of ~1.0GW including projects under construction, contract, or exclusivity ~417MW of commercial projects in-service ~41% of pipeline locate
Slide 12: Storage and Transportation (S&T): Overview
Storage and Transportation (S&T): Overview Leaf River (storage), Steckman Ridge (storage), and Adelphia Gateway (transportation) 32.2 mmdth high deliverability salt cavern storage facility in southeastern Mississippi Acquired October 2019 100% owner & operator Serving Gulf Coast/Southeast the fastes
Slide 13: S&T: Current Activities
S&T: Current Activities Leaf River (storage) and Adelphia Gateway (transportation) Adelphia Section 4 Base Rate Case Filed in Fiscal 2024 Fourth Quarter Considered numerous investments made in rate base, expenses of pipeline operations, and regulatory driven projects What's New: Base Rate Case conti
Slide 14: Energy Services (ES): Overview
14 Energy Services (ES): Overview Provides unregulated, wholesale natural gas to consumers across the Gulf Coast, Eastern Seaboard, Southwest, Mid-continent and Canada Proven track-record and risk management strategies Pursuing higher fee-based earnings Long option strategy provides significant upsi
Slide 15: ES: AMA and Long Option Strategy
ES: AMA and Long Option Strategy Managing a Diversified Portfolio of Physical Natural Gas Transportation and Storage Assets to Serve Customers Across North America; Fee-based Revenue through Asset Management Agreements Asset Management Agreements (“AMA”) De-risking transaction for Energy Services bu
Slide 16: Financial Review
16 16 Financial Review 17 Fiscal 2025 Second Quarter and Year-to-Date Highlights 18 Fiscal 2025 NFEPS Guidance of $3.15 to $3.30 19 NFEPS Guidance by Segment 20 NJR Capital Plan 21 Superior Credit Metrics, Balance Sheet and Cash Flows 22 Dividend Growth: Committed to Building Shareholder Value 23 In
Slide 17: Fiscal 2025 Second Quarter and Year-to-Date Highlights
Fiscal 2025 Second Quarter and Year-to-Date Highlights Executing on our Strategic Plan to Drive Growth Energy Services New Jersey Natural Gas Clean Energy Ventures Storage and Transportation Adelphia Rate Case Progressing Assessing Potential New Cavern Expansion at Leaf River FY 2025 Q2 EPS FY 2025
Slide 18: Fiscal 2025 NFEPS Guidance of $3.15 to $3.30
Fiscal 2025 NFEPS Guidance of $3.15 to $3.30* Net Financial Earnings per Share Guidance Range Above 7% - 9% Long-term Projected NFEPS Growth Guidance Range $3.15 - $3.30 7-9% Long-Term Annual Growth $2.50 $2.70 Outperformance Above Long-Term Growth Rate $2.20 - $2.30 $2.42 - $2.52 Strong energy pric
Slide 19: NFEPS Guidance by Segment
NFEPS Guidance by Segment NJNG Remains the Largest Contributor to NFEPS Following the Conclusion of its Base Rate Case Fiscal 2025 NFEPS Guidance by Segment New Jersey Natural Gas 65% - 68% Energy Services 9% - 11% Home Services 0% - 1% S&T 4% - 6% CEV 19% - 22% 69% - 74% 28% - 34% Q2 2025: Expansio
Slide 20: NJR Capital Plan
NJR Capital Plan1,2 Includes SAVEGREEN Investments. 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. $596 $644 $610 - $790 $655 - $835 ($ i
Slide 21: Superior Credit Metrics, Balance Sheet and Cash Flows
Well Positioned to Achieve Higher than Peer Growth with No Need for Block Equity Superior Credit Metrics, Balance Sheet and Cash Flows 1. Internal estimates based on Fitch Ratings methodology. Ratio represents inverse of FFO-adjusted leverage ratio. A reconciliation from adjusted funds from operatio
Slide 22: Dividend Growth: Committed to Building Shareholder Value
Dividend Growth: Committed to Building Shareholder Value Strong Track Record of Dividend Growth $1.80 FY 2025 Dividend Dividend History Dividends per Share Record Date Payable Date Amount Per Share 3/11/2025 4/01/2025 $0.45 12/11/2024 1/02/2025 $0.45 9/23/2024 10/01/2024 $0.45* 6/12/2024 7/01/2024 $
Slide 23: Industry Leading Long-Term Growth Rate of 7-9%
Industry Leading Long-Term Growth Rate of 7-9% Net Financial Earnings per Share Highly Visible 7-9% NFEPS Growth with Potential for Additional Upside, No Block Equity Needs, "Utility-like" Earnings Contribution 7-9% LONG-TERM ANNUAL GROWTH NJNG CEV S&T Energy Services Improved Utility Gross Margin a
Slide 24: Appendix: Financial Statements and Additional Information
Appendix: Financial Statements and Additional Information 24 25 Review of Fiscal 2025 Second Quarter and Year-to-Date Results 26 Reconciliation of NFE and NFEPS to Net Income 27 Other Reconciliation of Non-GAAP Measures 28 Reconciliation of Adjusted Funds from Operations to Cash Flow from Operations
Slide 25: Review of Fiscal 2025 Second Quarter and Year-to-Date Results
Fiscal 2024 YTD – Consolidated NFE ($ in millions) $ 211.0 NJNG $ 52.9 Utility Gross Margin1 $ 93.0 Depreciation & Amortization (D&A) $ (13.4) Interest Expense, O&M, AFUDC and Income Tax $ (26.7) Clean Energy Ventures $ 39.3 Revenue $ (10.2) D&A and Interest Expense $ 4.2 Gain on Sale of Assets $ 55
Slide 26: Reconciliation of NFE and NFEPS to Net Income
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 curren
Slide 27: Other Reconciliation of Non-GAAP Measures
Other Reconciliation of Non-GAAP Measures 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
Slide 28: Reconciliation of Adjusted Funds from Operations to Cash Flow from Operations
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 loa
Slide 29: Fiscal 2025 Second Quarter and Year-to-Date NFE and NFEPS by Business Unit
Fiscal 2025 Second Quarter and Year-to-Date NFE and NFEPS by Business Unit1 ($ in 000s) (Thousands) Three Months Ended March 31, Six Months Ended March 31, 2025 2024 Change 2025 2024 Change New Jersey Natural Gas $144,531 $107,095 $37,436 $211,439 $158,539 $52,900 Clean Energy Ventures $(3,958) $(5,
Slide 30: Capital Plan Table
Capital Plan Table1,2 ($ 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. FY2024A FY2025A FY2025E FY2026E Near Real Time Retur
Slide 31: Debt Repayment Schedule
Debt Repayment Schedule No Significant Maturity Towers in Any Particular Year Term debt only (excludes short-term debt of $162.5 million, capital leases of $37.4 million and solar financing obligations of $289.7 million). Term Debt1 Maturity Schedule as of March 31, 2025 / $ in Millions, unless othe
Slide 32: Projected Cash Flows
FY 2024A YTD FY2025A FY2025E FY2026E Cash Flows (used in) from Operations $427 $414 $460 - $500 $510 - $550 Uses of Funds Capital Expenditures2 $569 $152 $600 - $700 $650 - $750 Dividends3 $165 $90 $174 - $178 $188 - $192 Total Uses of Funds $734 $242 $774 - $878 $838 - $942 Financing Activities Com
Slide 33: CEV: SREC Hedging Strategy Stabilizes Revenue
CEV: SREC Hedging Strategy Stabilizes Revenue Based on Energy Year1, as of March 31, 2025 Energy Years run from June 1 of the prior year to May 31 of the respective year; for example, Energy Year 2025 began on June 1, 2024 and ends on May 31, 2025. Based on Fiscal Year, as of March 31, 2025 98% Hedg
Slide 34: 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
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