Slide 1: Investor Presentation: FY 2023 Fourth Quarter and Year End Financial Results
November 2023 Investor Presentation FY 2023 Fourth Quarter and Year End Financial Results November 21, 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 Fiscal 2023 Fourth Quarter and Year End Conference Call 4 Agenda 5 Fiscal 2023 Accomplishments 6 Fiscal 2024 NFEPS Guidance of $2.70 to $2.85 7 NFEPS Guidance by Segment 8 New Jersey Natural Gas 9 Clean Energy Ventures (CEV): Pipeline of Investment Opportunities 10 Storage and Transportatio
Slide 4: FY 2023 Fourth Quarter and Year End Conference Call Agenda
FY 2023 Fourth Quarter And Year End Conference Call Agenda 1 FY 2023 Highlights Steve Westhoven | President and CEO 2 Financial Highlights Roberto Bel | SVP and CFO 3 Q&A Session 4
Slide 5: Fiscal 2023 Accomplishments
Fiscal 2023 Accomplishments Executing on our Strategic Plan to Drive Continued, Organic Growth Raised NFEPS Guidance by $0.20 During Fiscal 2023; Finished Fiscal 2023 in the Higher End of Revised Range NJNG CEV S&T Energy Services $2.70 NJNG had a strong year driven by the addition of Increased capa
Slide 6: Fiscal 2024 NFEPS Guidance of $2.70 to $2.85
Fiscal 2024 NFEPS Guidance of $2.70 to $2.85 Represents 12.3% Increase from Midpoint of FY 2023 Initial Guidance Range; Maintains 7%-9% long-term annual growth % $3.00 Net Financial Earnings per Share Guidance Range 7-9 LONG-TERM $2.70 - $2.85 $2.70 ANNUAL GROWTH1 Winter Storm Elliot $2.50 $2.50 Ini
Slide 7: NFEPS Guidance by Segment
NFEPS Guidance by Segment Energy Services to Represent a Larger Portion of NFEPS Guidance in 2024 Due to AMA; Long-term NJNG Remains the Largest Component Fiscal 2024 NFEPS Guidance Long-term NFEPS by Segment Composition NJNG and CEV will make up the predominate portion CEV of NJR’s total Home Servi
Slide 8: New Jersey Natural Gas
New Jersey Natural Gas Strong Trend of Favorable Customer Growth Fiscal 2023 Capital Expenditures1,2,3 NJNG Customers Added 8,800 new (in thousands) customers in fiscal 2023, compared to 7,808 in fiscal 2022 580 System Integrity 570 IIP $126 560 $43 550 ~40% of 540 capital 576 569 530 564 expenditur
Slide 9: Clean Energy Ventures (CEV): Pipeline of Investment Opportunities
Clean Energy Ventures (CEV): Pipeline of Investment Opportunities CEV owns and operates solar projects with approximately 469MW of capacity MWs 1400 ~58% of pipeline located in NJ ~42% located outside of NJ Total ~1.2 GW ~82MW 1200 131 Pipeline of ~749MW 1000 New In-Service in Fiscal 2023 including
Slide 10: Storage and Transportation (S&T): Overview
Storage and Transportation (S&T): Overview Stable Contribution from Leaf River (storage), Steckman Ridge (storage), and Adelphia Gateway (transportation) What to Expect ▪ 0.9 mmdth/d interstate pipeline from NE PA in Fiscal 2024 to greater Philadelphia area ▪ Acquired January 2020 / Placed in-servic
Slide 11: Energy Services: Overview
Energy Services: Overview Managing a Diversified Portfolio of Physical Natural Gas Transportation and Storage Assets to Serve Customers Across North America; Fee-based Revenue through Asset Management Agreements Asset Management Agreements • De-risked Energy Services business by securing 10 years of
Slide 12: Financial Review
Financial Review Roberto Bel SVP and Chief Financial Officer 12 12
Slide 13: Review of Fiscal 2023 NFE Changes
Review of Fiscal 2023 NFE Changes ($ in Millions) Fiscal 2022 – Consolidated NFE ($ in millions) $ 240.3 NJNG $ (8.7) Utility Gross Margin1 $ 24.5 O&M $ (28.2) $5.4 $261.8 Depreciation & Amortization (D&A) $ (7.7) $29.4 $240.3 $5.1 Interest expense, AFUDC, Income Tax $ 2.7 $(8.7) $(9.6) Clean Energy
Slide 14: Capital Plan
Capital Plan1,2 ($ in Millions) Capital plan supports long-term NFEPS growth targets of 7 – 9% $622 $596 $608 - $743 $578 - $742 $33 - $47 $8 - $16 $31 $140 - $204 $160 - $264 $142 $110 $145 $435 - $492 $410 - $462 $454 $335 FY2022A FY2023A FY2024E FY2025E NJNG CEV S&T 14 1. Includes SAVEGREEN Inves
Slide 15: Projected Cash Flows
Projected Cash Flows ($ in Millions) FY 2023A FY 2024E FY 2025E Cash Flow from Operations $479 $450 - $490 $450 - $490 Uses of Funds Capital Expenditures1 $539 $490 - $580 $495 - $675 Dividends2 $151 $161 - $165 $174 - $178 Total Uses of Funds $690 $651 - $745 $669 - $853 Financing Activities Common
Slide 16: Investment Grade Profile
Investment Grade Profile Strong Credit Ratings Supported by Stable Cash Flows NJR Adjusted FFO / Adjusted Debt1 Current Credit Ratings NJNG NJR (Secured (Unsecured Rating) Rating) 20.0% 19.0% NAIC NAIC-1.E NAIC-2.A Moody's A1 (Stable) 18.1% 17.4% 17% - 18% Fitch A+ (Stable) 15.0% Strong Cash Flows 1
Slide 17: Well Positioned in a Rising Interest Rate Environment
Well Positioned in a Rising Interest Rate Environment Manageable debt repayment schedule with no significant maturity towers in any particular year NJR Unsecured Senior Notes FY Maturity Principal 1 3.48% 2025 $100,000 Term Debt Maturity Schedule 3.54% 2026 $100,000 4.38% 2027 $110,000 as of Septemb
Slide 18: Growth Strategy and Key Highlights
Growth Strategy and Key Highlights 1 Maximize the value of existing assets to 7% - 9% produce “Utility-like” Returns Long-term expected NFEPS and 2 Thoughtful capital allocation with a defined capital plan of Dividend Growth Highest in peer group1 between $1.2 - $1.5 Billion in the next 2 years 3 Us
Slide 19: Appendix: Financial Statements and Additional Information
Appendix: Financial Statements and Additional Information 20 Reconciliation of NFE and NFEPS to Net Income 21 Other Reconciliation of Non-GAAP Measures Reconciliation of Adjusted Funds from Operations to Cash 22 Flow from Operations 23 Fiscal 2023 Fourth Quarter and Year NFE by Business Unit 24 Revi
Slide 20: Reconciliation of NFE and NFEPS to Net Income
Reconciliation of NFE and NFEPS to Net Income ($ in 000s) (Unaudited) Three Months Ended Twelve Months Ended September 30, September 30, 2023 2022 2023 2022 ◦ NFE is a measure of earnings based on the NEW JERSEY RESOURCES elimination of timing differences to effectively match the earnings effects of
Slide 21: Other Reconciliation of Non-GAAP Measures
Other Reconciliation of Non-GAAP Measures ($ in 000s) (Unaudited) Three Months Ended Twelve Months Ended September 30, September 30, 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 Operatin
Slide 22: 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, FY2023 Adjusted Debt, FY2023 • Adjusted funds from operations is cash flows (Millions) (Millions) from operating activities, plus components of working capital, cash paid for interest (net o
Slide 23: Fiscal 2023 Q4 and Fiscal Year NFE by Business Unit
Fiscal 2023 Q4 and Fiscal Year NFE by Business Unit ($ in 000s) (Thousands) Three Months Ended September 30, Twelve Months Ended September 30, 2023 2022 Change 2023 2022 Change New Jersey Natural Gas $(24,838) $(16,387) $(8,451) $131,414 $140,124 $(8,710) Clean Energy Ventures $50,152 $57,813 $(7,66
Slide 24: Review of Fiscal 2023 Q4
Review of Fiscal 2023 Q4 ($ in Millions) Fiscal 4Q22 – Consolidated NFE ($ in millions) $ 47.9 NJNG $ (8.5) Utility Gross Margin1 $ (3.8) O&M $ (2.8) Depreciation & Amortization (D&A) $ (1.9) $47.9 Interest expense, AFUDC, Income Tax $ — Clean Energy Ventures $ (7.7) Revenue $ (8.7) $(8.5) $7.5 $29.
Slide 25: NJR's Business Portfolio
NJR’s Business Portfolio Natural Gas and Renewable Fuel Distribution; Solar Investments, Wholesale Energy Markets; Storage & Transportation Infrastructure; Retail Operations New Jersey Natural Gas Operates and maintains Natural Gas transportation and distribution (NJNG) infrastructure serving approx
Slide 26: NJNG: Supportive Regulatory Construct
NJNG: Supportive Regulatory Construct Stable Rate Case Results Decoupled Rates for majority of customers • Rate case results are stable • Volume risk due to weather or energy conservation • Current ROE of 9.60% with a common equity ratio of 54% mitigated through the Conservation Incentive Program (C
Slide 27: CEV: SREC Hedging Strategy Stabilizes Revenue
CEV: SREC Hedging Strategy Stabilizes Revenue Based on Energy Year1, as of September 30, 2023 Hedged Unhedged Percent Hedged Average Price Current Price (EY) EY 2024 389 0 100% $200 $213 89% hedged through Energy Year 2025 Thousands EY 2025 353 46 89% $190 $202 80% hedged EY 2026 319 78 80% $181 $18
Slide 28: Capital Plan Table
Capital Plan Table1,2 ($ in Millions) Near Real Time FY2022A FY2023A FY2024E FY2025E Return? New Jersey Natural Gas New Customer $54 $77 $75 - $80 $85 - $90 Yes IIP $32 $43 $26 - $30 $26 - $30 Yes SAVEGREEN $53 $60 $48 - $52 $48 - $52 Yes Clean Fuels $1 $1 $40 - $50 $45 - $55 IT $42 $61 $60 - $65 $2
Slide 29: Dividend Growth: Committed to Building Shareholder Value
Dividend Growth: Committed to Building Shareholder Value Strong Track Record of Dividend Growth Dividends per Share Dividend History Highlighted Rows Reflect Changes in Quarterly Cash Dividends $1.68 Ex-Dividend Date 9/19/2023 Record Date 9/20/2023 Payable Date 10/02/2023 Amount Per Share $0.42* 7.4
Slide 30: Environmental, Social and Governance Efforts
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 over t
Slide 31: Shareholder and Online Information
Shareholder and Online Information Stock Transfer Agent and Registrar 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 representa