Slide 1: Investor Presentation: FY 2023 Second Quarter Financial Results
May 2023 Investor Presentation FY 2023 Second Quarter Financial Results May 4, 2023
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 FY 2023 Second Quarter 3 Agenda 4 Fiscal 2023 Second Quarter and Year-to-Date Summary 5 Re-Affirming Fiscal 2023 NFEPS Guidance of $2.62 to $2.72 6 New Jersey Natural Gas 7 Clean Energy Ventures (CEV): Growing Capacity with a Robust Pipeline 8 Financial Review 9 NJR: Review of Fiscal 2023 Q
Slide 4: FY 2023 Second Quarter Conference Call Agenda
FY 2023 Second Quarter Conference Call Agenda 1 Second Quarter FY 2023 Highlights Steve Westhoven | President and CEO 2 Financial Highlights Roberto Bel | SVP and CFO 3 Q&A Session 33
Slide 5: Fiscal 2023 Second Quarter and Year-to-Date Summary
Fiscal 2023 Second Quarter and Year-to-Date Summary Consistent Performance throughout Winter Period Second Quarter Continued Execution Throughout Unique Period NFEPS1,2 of Historically Warm Weather Conditions $1.77 $1.36 $1.16 $0.88 NJNG CEV S&T Energy Services 2Q20 2Q21 2Q22 2Q23 Higher utility gro
Slide 6: Re-Affirming Fiscal 2023 NFEPS Guidance of $2.62 to $2.72
Re-Affirming Fiscal 2023 NFEPS Guidance of $2.62 to $2.72 Guidance Raised by $0.20 in Q1 FY2023; Represents 8.1% Increase from Midpoint of FY 2023 Initial Guidance Range Net Financial Earnings per Share Fiscal 2023 NFEPS Guidance by Segment $2.62 - $2.72 7-9% LONG-TERM CEV $2.50 ANNUAL GROWTH1 18% -
Slide 7: New Jersey Natural Gas
New Jersey Natural Gas Strong Trend of Favorable Customer Growth Added 4,064 new YTD Fiscal 2023 Capital Expenditures1,2 NJNG Customers customers YTD in fiscal (in thousands) 2023 compared to 3,579 ~37% of capital expenditures 580 in YTD fiscal 2022 earning a near real-time return 570 On March 30, 2
Slide 8: Clean Energy Ventures (CEV): Growing Capacity with a Robust Pipeline
Clean Energy Ventures (CEV): Growing Capacity with a Robust Pipeline CEV owns and operates solar projects in New Jersey, Rhode Island, New York and Connecticut with approximately 440MW of capacity MWs Total 1200 ~1.2 GW In Service Under Construction Under Contract or Exclusivity 268 1000 Pipeline of
Slide 9: Financial Review
Financial Review Roberto Bel SVP and Chief Financial Officer 8
Slide 10: NJR: Review of Fiscal 2023 Q2 and YTD NFE Changes
NJR: Review of Fiscal 2023 Q2 and YTD NFE Changes ($ in Millions) Fiscal 2023 Q2 Fiscal 2023 YTD Fiscal 2Q22 – Consolidated NFE ($ in millions) $ 130.2 Fiscal 2022 YTD – Consolidated NFE ($ in millions) $ 196.0 NJNG $ (2.1) NJNG $ 1.5 Utility Gross Margin1 $ 1.3 Utility Gross Margin1 $ 22.5 O&M $ (5
Slide 11: NJR: Capital Plan
NJR: Capital Plan1 ($ in Millions) Capital plan supports long-term NFEPS growth targets of 7 – 9% $529 $712 $622 $520 - $658 $542 - $728 $124 $2 - $8 $20 - $28 $89 $142 $43 $140 - $280 $100 - $200 $124 $145 $499 $400 - $430 $400 - $440 $362 $335 FY2020A FY2021A FY2022A FY2023E FY2024E NJNG CEV S&T 1
Slide 12: NJR: Aligned with New Jersey's Clean Energy Policy
NJR: Aligned with New Jersey’s Clean Energy Policy 2019 The Energy Master Plan (EMP) established priorities for the use, NJR Environmental Initiatives management and development of energy in New Jersey Maximize energy efficiency and conservation SAVEGREEN Accelerate the use of renewable CEV expansio
Slide 13: Key Takeaways: Fiscal 2023 Year-to-Date
Key Takeaways: Fiscal 2023 Year-to-Date Implementing Strategic Plan to Drive Continued Organic Growth Across Portfolio Highest Long-Term Reiterates Decarbonization Solid Balance Sheet Growth Rate Across FY 2023 NFE Strategy Aligned with in Inflationary LDC Peer Group Guidance Public Policy Environme
Slide 14: Appendix: Financial Statements and Additional Information
Appendix: Financial Statements and Additional Information 14 Reconciliation of NFE and NFEPS to Net Income 15 Other Reconciliation of Non-GAAP Measures 16 Fiscal 2023 Second Quarter and YTD NFE by Business Unit 17 Clean Energy Ventures - SREC Hedging Strategy 18 Capital Plan Table 19 Projected Cash
Slide 15: Reconciliation of NFE and NFEPS to Net Income
Reconciliation of NFE and NFEPS to Net Income ($ in 000s) (Unaudited) Three Months Ended Six Months Ended March 31, March 31, • NFE is a measure of earnings based on the 2023 2022 2023 2022 elimination of timing differences to effectively NEW JERSEY RESOURCES match the earnings effects of the econom
Slide 16: Other Reconciliation of Non-GAAP Measures
Other Reconciliation of Non-GAAP Measures ($ in 000s) (Unaudited) Three Months Ended Six Months Ended March 31, March 31, 2023 2022 2023 2022 A reconciliation of gross margin, the closest GAAP financial measurement, to utility gross margin is as follows: NJNG Utility Gross Margin Operating revenues
Slide 17: Fiscal 2023 Q2 and YTD NFE by Business Unit
Fiscal 2023 Q2 and YTD NFE by Business Unit ($ in 000s) (Thousands) Three Months Ended March 31, Six Months Ended March 31, 2023 2022 Change 2023 2022 Change New Jersey Natural Gas $100,697 $102,783 $(2,086) $155,361 $153,863 $1,498 Clean Energy Ventures $(9,379) $(6,491) $(2,888) $(12,961) $(13,312
Slide 18: CEV: SREC Hedging Strategy Stabilizes Revenue
CEV: SREC Hedging Strategy Stabilizes Revenue Based on Energy Year1, as of March 31, 2023 Percent Average Current Price Hedged Unhedged Hedged Price (EY) EY 2023 400 22 95% $203 $228 Over 95% hedged EY 2024 395 6 98% $197 $215 through Thousands Energy Year 2024 EY 2025 353 46 89% $190 $205 71% hedge
Slide 19: Capital Plan
Capital Plan1,2 ($ in Millions) 1Q 2Q YTD Near Real Time FY2023A FY2023A FY2023A FY2022A FY2023E FY2024E Return? New Jersey Natural Gas New Customer $13 $18 $31 $54 $54 - $58 $56 - $60 Yes Maintenance & Integrity $27 $28 $55 $104 $109 - $113 $161 - $176 Cost of Removal / Other $9 $10 $19 $42 $36 - $
Slide 20: Projected Cash Flows
Projected Cash Flows ($ in Millions) FY2022A FY2023E FY2024E Cash Flow from Operations $324 $320 - $360 $450 - $490 Uses of Funds Capital Expenditures1 $590 $466 - $600 $489 - $671 Dividends2 $128 $132 - $137 $143 - $148 Total Uses of Funds $718 $598 - $737 $632 - $819 Financing Activities Common St
Slide 21: Well Positioned in a Rising Interest Rate Environment
Well Positioned in a Rising Interest Rate Environment ($ in Millions) Term Debt1 Maturity Schedule Impact of high interest rate as of March 31, 2023 environment included in FY2023 and $160 long-term NFEPS guidance $100 $100 $150 Weighted Average of Maturity ~15.8 $140 $130 $130 $130 • Interest rate
Slide 22: NJR: Total Expected Shareholder Return
NJR: Total Expected Shareholder Return Delivering Value to Shareholders Through Growth and Income NJR is a Premier Energy Infrastructure Company The Clean Energy Future Solid Long Term Growth Growing Dividend Starts at NJR Outlook Net Zero by 2050 goal for New Expect 7% - 9% Annualized dividend yiel
Slide 23: NJR: Environmental, Social and Governance Efforts
NJR: Environmental, Social and Governance Efforts Focus on Definable Accomplishments • Achieved NJ operational emissions reductions over 55% since 2006 with goal of 60% by 2030 and net zero by 2050 • One of the largest owner-operators of solar assets in New Jersey, we have invested over $1 billion o
Slide 24: 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