Slide 1: Third Quarter 2022 Financial Results
Third Quarter 2022 Financial Results August 4, 2022
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: Agenda
Agenda 1 Third-Quarter FY 2022 Highlights Steve Westhoven | President & CEO 2 Financial Highlights Roberto Bel | SVP and CFO 3 Q&A Session 2
Slide 4: Third Quarter 2022 Highlights
Third Quarter 2022 Highlights Quarterly Review Q3 Fiscal 2022 Financial Results and Updated Guidance NJR reported EPS of $0.14 and net financial loss per share of $(0.04)* for Q3 Fiscal 2022 Increases FY 2022 NFEPS guidance range to $2.40 - $2.50 from $2.30 - $2.40 New Jersey Natural Gas Clean Energ
Slide 5: Increasing Fiscal 2022 NFEPS Guidance by $0.10
Increasing Fiscal 2022 NFEPS Guidance by $0.10 Driven by a Combination of Strong Performance at New Jersey Natural Gas, Greater than Anticipated Financial Margin at Energy Services, and Increased Wholesale Electricity Revenue at Clean Energy Ventures Net Financial Earnings per Share Fiscal 2022 NFEP
Slide 6: New Jersey Natural Gas
New Jersey Natural Gas Solid Performance Due to Higher Base Rates and Incremental Off-systems Sales Fiscal YTD Capital Expenditures* NJNG Customers (in thousands) ~41% of capital 568.6 expenditures 570 Added earning a near 560 5,274 new real-time return customers Maintenance 550 YTD in $73 540 fisca
Slide 7: CEV: Robust and Diversified Pipeline in Solar
CEV: Robust and Diversified Pipeline in Solar Taking Advantage of a Considerable Decarbonization Opportunity MWs 1200 Break down of ~608MW Pipeline Total Under Contract or Exclusivity 1.1 GW* By Location 1000 Outside NJ 244MW 800 608MW 600 In NJ 364MW 67 400 Recent Developments • New Jersey market a
Slide 8: CEV: New Project – Holland Township, NJ
CEV: New Project – Holland Township, NJ ~8MW In Service in July 2022 This solar project was built on an existing Superfund site that required environmental cleanup, including the removal of fuel tanks, hazardous materials and more than 10,000 cubic yards of contaminated soil. Located in Hunterdon Co
Slide 9: S&T: Adelphia Gateway Near Completion
S&T: Adelphia Gateway Near Completion Conversion and Expansion Project Martin’s Creek Booster Compression Sherry Lane Lateral UGI Easton Road Interconnect Project Updates • Construction completed at Marcus Hook (lower Chichester North Mainline Township, PA), and Quakertown, PA compressor stations •
Slide 10: Financial Review
Financial Review Roberto Bel SVP & Chief Financial Officer 9
Slide 11: NJR Review of Fiscal 3Q22 NFE Changes
NJR Review of Fiscal 3Q22 NFE Changes ($ in Millions) Fiscal 3Q21 – Consolidated NFE ($ in millions) $ (14.1) NJNG $ 1.1 Utility Gross Margin* $ 10.7 O&M $ 0.1 Depreciation & Amortization (D&A) $ (4.1) Interest expense, AFUDC, Income Tax $ (5.6) Clean Energy Ventures $ (0.2) Revenue $ 0.4 O&M $ (0.2
Slide 12: NJR CEV – SREC Hedging Strategy Stabilizes Revenue
NJR CEV – SREC Hedging Strategy Stabilizes Revenue Based on Energy Year, as of July 11, 2022 Percent Hedged Average Price Current Price (EY) EY 2023 399 3 99% $203 $227 Percent Hedged Average Price Current Price (EY) EY 2024 380 21 95% $197 $215 Thousands Percent Hedged Average Price Current Price (
Slide 13: NJR Capital Plan
NJR Capital Plan1 ($ in Millions) YTD Near Real 1Q FY2022A 2Q FY2022A 3Q FY2022A FY2021A FY2022E FY2023E FY2022A Time Return? New Jersey Natural Gas New Customer $12 $11 $12 $35 $65 $52 - $56 $54 - $58 Yes Maintenance & Integrity $27 $16 $30 $73 $252 $125 - $140 $114 - $118 Cost of Removal / Other $
Slide 14: NJR Projected Cash Flows
NJR Projected Cash Flows ($ in Millions) FY2021A FY2022E FY2023E Cash Flow from Operations $391 $225 - $245 $410 - $430 Uses of Funds Capital Expenditures1 $625 $534 - $610 $481 - $658 Dividends2 $117 $127 - $132 $135 - $140 Total Uses of Funds $742 $661 - $742 $616 - $798 Financing Activities Commo
Slide 15: Value Proposition for Stakeholders
Value Proposition for Stakeholders The Clean Energy Solid Long Term Attractive Total Future Starts at NJR Growing Dividend Growth Outlook Shareholder Return Net Zero by 2050 goal for Expect 7% - 9% Annualized dividend yield 10% - 12% New Jersey operations NFEPS Growth of 3.2%1 First utility on the E
Slide 16: Appendix
Appendix Slide 16 Third Quarter Fiscal 2022 NFE by Business Unit 17 Reconciliation of NFE and NFEPS to Net Income 18 Other Reconciliation of Non-GAAP Measures 19 Review of Fiscal YTD NFE Changes 20 Energy Services: AMAs De-Risks Business and Drives Value 21 NJR CEV – SREC Hedging by Fiscal Year 22 S
Slide 17: Third Quarter Fiscal 2022 NFE by Business Unit
Third Quarter Fiscal 2022 NFE by Business Unit ($ in 000s) Three Months Ended June 30, Nine Months Ended June 30, 2022 2021 Change 2022 2021 Change New Jersey Natural Gas $2,648 $1,581 $1,067 $156,511 $131,589 $24,922 Clean Energy Ventures $(5,098) $(4,926) $(172) $(18,410) $(24,072) $5,662 Storage
Slide 18: Reconciliation of NFE and NFEPS to Net Income
Reconciliation of NFE and NFEPS to Net Income ($ in 000s) (Unaudited) Three Months Ended Nine Months Ended June 30, June 30, 2022 2021 2022 2021 NEW JERSEY RESOURCES • NFE is a measure of earnings based on the A reconciliation of net income, the closest GAAP financial measure, to net financial earni
Slide 19: Other Reconciliation of Non-GAAP Measures
Other Reconciliation of Non-GAAP Measures ($ in 000s) (Unaudited) Three Months Ended Nine Months Ended June 30, June 30, 2022 2021 2022 2021 A reconciliation of gross margin, the closest GAAP financial measurement, to utility gross margin is as follows: NJNG Utility Gross Margin Operating revenues $
Slide 20: Review of Fiscal 2022 YTD NFE Changes
Review of Fiscal 2022 YTD NFE Changes ($ in Millions) Fiscal 2021 YTD – Consolidated NFE ($ in millions) $ 201.1 NJNG $ 24.9 Utility Gross Margin* $ 62.8 O&M $ 7.3 Depreciation & Amortization (D&A) $ (11.7) Interest expense, AFUDC, Income Tax $ (33.5) Clean Energy Ventures $ 5.7 Revenue $ 9.6 O&M $
Slide 21: Energy Services: AMAs De-Risks Business and Drives Value
Energy Services: AMAs De-Risks Business and Drives Value ($ in Millions) Revenue Recognition* 10-Year Asset Management Agreements (AMAs) with • Revenue recognition for FY2022 is expected to Investment Grade Utility be $53.1 million, of which $22.1 million was • Entered into AMAs to release certain n
Slide 22: NJR CEV – SREC Hedging by Fiscal Year
NJR CEV – SREC Hedging by Fiscal Year As of July 11, 2022 Percent Hedged Average Price Current Price (FY) FY 2022 465 100% $203 $235 Percent Hedged Average Price Current Price (FY) FY 2023 395 7 98% $201 $223 Thousands Percent Hedged Average Price Current Price (FY) FY 2024 365 36 91% $193 $208 Perc
Slide 23: Shareholder and Contact Information
Shareholder and Contact Information Stock Transfer Agent and Registrar Corporate Headquarters The Transfer Agent and Registrar for the company’s common stock is Broadridge Corporate Issuer Solutions, Inc. (Broadridge). 1415 Wyckoff Road Wall, NJ 07719 Shareowners with questions about account activit