Newjersey Resources Corporation · NYSE:NJR
Newjersey Resources — Non-Deal Roadshow (June 2016)
20 slides from Newjersey Resources's roadshow presentation, Jun 15, 2016
Slide 1: Safe, Reliable Natural Gas at Our Core ... and So Much More
SAFE, RELIABLE NATURAL GAS AT OUR CORE ... AND SO MUCH MORE = =F A Chat With The New York/Boston Investment Community NJR Clean Energy Ventures Stanley M. Kosierowski — President Christopher Savastano — Managing Director, Development June 15-16, 2016
Slide 2: Regarding Forward Looking Statements
Regarding Forward Looking Statements Certain statements contained inthis presentation are forwardlaokng statements within the meaning of Section 27A of tha Securities Act of 1993, as amended, Section 21E of the Seouries Exchange Act of 1934, as amended, and the Private Secures Litgation Reform Act o
Slide 3: Disclaimer Regarding Non-GAAP Financial Measures
Disclaimer Regarding Non-GAAP Financial Measures This presentation includes the non-GAAP measure, NFE. As an indicator of the Company's operating performance, this measure should not be considered an alternative to, or more meaningful than, GAAP measures, such as cash flow, net income, operating inc
Slide 4: Our Business Portfolio
Our Business Portfolio Expected Net Financial Earnings Contribution Fiscal 2016 New Jersey * Strong customer growth Natural « Infrastructure investments to ensure safety and reliability 60-70 percent Gas - Regulatory incentives NR * Steckman Ridge ~ 12 Bcf storage facility Midstream * 1.8 million Do
Slide 5: Our Long-Term Average Annual NFE Growth Strategy
Our Long-Term Average Annual NFE Growth Strategy Remains 5 to 9 Percent* How will we achieve this? Invest in Infrastructure to: = Expand and improve our distribution system to serve a growing customer base and ensure safe, reliable and resilient service = Develop Midstream projects like PennEast Pip
Slide 6: NJNG's Regulated Growth Model
NJNG’s Regulated Growth Model = Customer growth = Rate case IF = New inf 3 Months - $49.0 million ie aaa Current Operating Assets 6 Months - $79.5 million conn = 7,080 miles of = FY2Q16 NFE increase from transportation and FY2Q15 due to higher utility distribution infrastructure gross margin from cu
Slide 7: NJR Midstream
NJR Midstream = Steckman Ridge = Dominion Midstream 3 Months - $2.2 million 6 Months - $4.6 million = PennEast Pipeline * Received FERC Notice of Schedule for Environmental Steckman Ridge = Consistent FY2Q16 NFE Review in March 2016 = $127 million investment, 12 Bcf he eae itn natural gas storage fa
Slide 8: NJR Energy Services
NJR Energy Service = Earnings subject to volatility in natural gas markets = Factors impacting natural gas 3 Months - $17.0 million markets include: 6 Months - $27.0 million = Firm storage (40 Bcf in the cot = Lower FY2Q16 NFE compared + Record natural gas-fired Us and Canada’ ; a ) : with FY2Q15 du
Slide 9: NJR Clean Energy Ventures
NJR Clean Energy Ventures ‘The Sunlight Advantage Commercial Solar = Grid connected and net metered projects 3 Months - $11.8 million ii Residential solar leases ren rating A 6 Months - $19.3 million Commercial Solar Onshore wind farms = 22 projects in service = Lower FY2Q16 NFE Other potential = 82
Slide 10: NJR Clean Energy Ventures — Scope of our Business
NJR Clean Energy V. ures — Scope of our Business NJR’s Distributed Power Business Residential Solar Commercial Solar aes <= Ongoing review of other technologies and markets (battery storage, community energy, combined heat and power gas generation) a a0
Slide 11: NJ SREC Market — Signals of a Balanced Market
NJ SREC Market — Signals of a Balanced Market $350 j cute $300 $250 $290 = SREC prices reflect return to = $200 S 2 balanced market ny = ITC extension and high SREC prices stimulating pipeline = NJRCEV actively hedging portfolio i i i i i i i i fi i | | i $50 - $70 | i i Se Pt A PWT GWT GT WT GT ge
Slide 12: NJRCEV SREC Hedging — Preservation of Margins
NJRCEV SREC Hedging — Preservation of Margins 250 214 197 200 4 170 8 g eee % 150 5 z § 100 3 156 é 50 FY16E FY17E FY18E mHedged m™ Expected Generation == Current Generation Pct. Hedged: 96% 79% 65% Average Price: $212 $230 $226 Current Average Market Price: $294 $295 $261 As of June 4, 2016 Karbone
Slide 13: Legislative Initiatives Underway to Support New Jersey's Solar Industry
Legislative Initiatives Underway to Support New Jersey’s Solar Industry Solar Carve Out 4.1% aed a cn 3.5% 3.6% 3% faal 3.5% a2gaa% 22% 3.0% : 2.8% ; 2.5% 2.1% 1.0% 0.7% cm | [J oo, a 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Energy Year Source: N
Slide 14: PTC and ITC Extensions Provide Long-Term Support for Market Development
PTC and ITC Extensions Provide Long-Term Support for Market Development 2018 Solar ITC Rate 2016 2017 2019 2020 2021 2022 2023 2024 2025 Permanent 10% ITC > Wind PTC Rate 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: IHS Inc. 7 \.ccvchat ume at
Slide 15: NJRCEV Asset Performance is a Critical Value Driver
NJRCEV Asset Performance is a Critical Value Driver and Key Factor for Future Success Operational excellence drives returns from a growing, diversified base of assets 2016 Asset Base Operating Revenues (MM) MWs Installed = 212 6 Months March 31, 2016 Maintenance commercial Sotar (Residential Solar [
Slide 16: Proposed Net Metering Changes — Upcoming Challenges
Proposed Net Metering Changes — Upcoming Challenges Lietel TL} Active debates on net metering triggered by caps and utility pushback 7 vce chat ummm %
Slide 17: NJRCEV Continues to Capitalize on the Construction of New Assets
NJRCEV Continues to Capitalize on the Construction of New Assets Conditions are ripe for the continued “build out” of solar and wind assets Solar Drivers = Cost basis for solar projects continues to decline, although not as quickly as in the past = Continued technical advancement in the main compone
Slide 18: Future Opportunities
Future Opportunities Expand solar in new markets = Continue to grow wind portfolio = Battery storage = Distributed gas generation, e.g., CHP, residential generation = Microgrids = Smart Home 7 \.ccvchat ume 8
Slide 19: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Areconciliation of NFE for the three- and six- months of fiscal 2016 and 2015, to net income is provided belo ‘Three Months Ended ix Months Ended Mareh 31, Mareh 31, (Thousands) 2016 2015 2016 2015 Net income S 73687 $60,903 122,304 $184,203, |Add: ‘Unrealized los
Slide 20: NJR At A Glance
NJR At A Glance Our Financial Goals: 1. Average annual NFE growth of 5 to 9 percent 2. Dividend growth of 6 to 8 percent 3._ Maintain appropriate metrics to support our credit rating Ticker Symbol (NYSE): NIR Price Range (52 Weeks): $37.52 - $26.89* Total Capitalization Dennis Puma Director, Investo