Slide 1: Fiscal 2015 Second Quarter Update
FISCAL 2015 SECOND QUARTER UPDATE May 7, 2015
Slide 2: Regarding Forward-Looking Statements
Regarding Forward - Looking Statements 1 Certain statements contained in this presentation are forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 . New Jersey Resources (NJR or the Company) cautions readers that the assumptions forming the basis f
Slide 3: Disclaimer Regarding Non-GAAP Financial Measures
Disclaimer Regarding Non - GAAP Financial Measures 2 This presentation includes the non - GAAP measures net financial earnings (NFE), and utility gross margin . As indicators of the Company’s operating performance, these measures should not be considered alternatives to, or more meaningful than, GAA
Slide 4: NJR Business Segment NFEPS Contributions; Updated Fiscal 2015 NFEPS Guidance
NJR Business Segment NFEPS Contributions; Updated Fiscal 2015 NFEPS Guidance to $1.65 - $1.75 from $1.60 - $1.70 3 New Jersey Natural Gas NJR Clean Energy Ventures NJR Energy Services NJR Midstream NJR Home Services » NJRES exceeding fiscal 2015 expectations » Colder - than - normal weather created
Slide 5: Net Financial Earnings (NFE) ($MM)
Net Financial Earnings (NFE) 4 ($MM) Company 2015 2014 2015 2014 New Jersey Natural Gas $48.6 $47.0 $76.8 $74.7 NJR Energy Services 36.3 91.4 52.8 98.8 NJR Clean Energy Ventures 13.0 12.8 22.0 16.4 NJR Midstream 2.6 2.3 4.7 3.7 NJR Home Services/Other (1.4) (1.6) (2.0) (1.8) Total $99.1 $151.9 $154.
Slide 6: Fiscal Second Quarter NFE Drivers
Fiscal Second Quarter NFE Drivers » New Jersey Natural Gas x NFE of $48.6 million vs. $47 million in Q2 last year • Strong utility gross margin growth due to customer additions, incentive programs and The SAVEGREEN Project® » NJR Energy Services x NFE of $36.3 million vs. $91.4 million in Q2 last ye
Slide 7: NJNG Capital Investment – Mid Year Review
NJNG Capital Investment – Mid Year Review 6 CAPITAL INVESTMENTS ($MM) 2015E YEAR TO DATE STATUS NJNG Customer Growth $33.9 $18.5 Added 4,079 customers in 1H15; on target to add 15,000-17,000 over the next two years Maintenance/Other 66.9 31.7 Capital spending on track to enhance system safety and re
Slide 8: CEV Capital Investment – Mid Year Review
CEV Capital Investment – Mid Year Review 7 * Fiscal year to date spending for CEV represents projects placed in service CAPITAL INVESTMENTS ($MM) 2015E YEAR TO DATE * STATUS NJRCEV Commercial Solar $69.7 $41.6 Two grid-connected projects totaling 16 MW completed 1H15; another 10.3 MW to be completed
Slide 9: Our Growth and Earnings Strategy
Our Growth and Earnings Strategy » Increased regulated infrastructure investments drive safe, reliable service and anchors our business portfolio x NJNG drives our long - term growth x PennEast Pipeline » Provide customers with cost - efficient renewable electricity, while reducing ITC reliance x Po
Slide 10: Our Path to Continued Growth
Our Path to Continued Growth 9 Fiscal 2015 NJNG x Customer growth x CIP x BGSS incentives x SAVEGREEN x SAFE x NJ RISE x SRL Energy Services x Physical natural gas services x Producer services Clean Energy x Portfolio diversification x More SRECs; higher prices x Expanded wind investments Midstream
Slide 11: Fiscal 2015 Second Quarter Update
FISCAL 2015 SECOND QUARTER UPDATE May 7, 2015
Slide 12: Appendix
APPENDIX 11 New Jersey (OW) Resources
Slide 13: Key Trends Support Future Customer Growth
Key Trends Support Future Customer Growth 12 0.0% 5.0% 10.0% 15.0% N.J. Morris Monmouth Ocean 1.2% 6.2% 2.3% 14.1% Population Change 2000 - 2013 1 2014 - 2016 10,200 Beyond 2017 - 78,206 New Construction 3 3 . Source: A.D. Little $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 NJNG Fuel Oil Propane Electricity
Slide 14: NJNG: Diversified Sources of Utility Growth
NJNG: Diversified Sources of Utility Growth 13 NJNG expects incremental utility gross margin to grow about 37 percent by 2017 Incremental Utility Gross Margin $0 $5 $10 $15 $20 $25 $30 $35 $40 FY14A FY15E FY16E FY17E $29.1 $35.4 $36.7 $38.5 Millions Customer Growth Red Oak SAVEGREEN NGV BGSS Incenti
Slide 15: Capital Investment Plan
C apital Investment Plan 14 * Solar investment for residential and commercial projects in Q1Fiscal 2017 estimated at $33.2 million. Plan assumes $25.6 million beyond December 31, 2016, assuming appropriate economics allow. ** CEV fiscal year to date spending represents projects placed in service ($M