Newjersey Resources Corporation · NYSE:NJR
Newjersey Resources — Q3 2025 Earnings Presentation
35 slides from Newjersey Resources's earnings presentation, Aug 5, 2025
Slide 1: Investor Presentation: Fiscal 2025 Third Quarter and Year-to-Date Financial Results
August 2025 Investor Presentation Fiscal 2025 Third Quarter and Year-to-Date Financial Results
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 / NJR At a Glance
Contents NJR At a Glance Fiscal 2025 Third Quarter and Year-to-Date Conference Call Corporate Information 4 Fiscal 2025 Third Quarter and Year-to-Date Highlights 5 Raises Lower End of Fiscal 2025 NFEPS Guidance by $0.05 to $3.20 to $3.30 6 NFEPS Guidance by Segment Ticker NYSE: NJR 7 New Jersey Natu
Slide 4: Fiscal 2025 Third Quarter and Year-to-Date Highlights
Fiscal 2025 Third Quarter and Year-to-Date Highlights Executing on our Strategic Plan to Drive Growth Solid Execution Across all of NJR's Complementary Portfolio of Businesses Raised Lower End New Jersey Record Investment Under New SAVEGREEN® Program of FY 2025 NFEPS1 Natural Gas Guidance Range Clea
Slide 5: Raises Lower End of Fiscal 2025 NFEPS Guidance by $0.05 to $3.20 to $3.30
Raises Lower End of Fiscal 2025 NFEPS Guidance by $0.05 to $3.20 to $3.30 Guidance Range Above 7% - 9% Long-term Projected NFEPS Growth Net Financial Earnings per Share Actuals Estimates % $3.40 $3.20 Outperformance Above Long-Term Growth Rate Represents the midpoint of NJR's Long-Term Growth Rate G
Slide 6: NFEPS Guidance by Segment
NFEPS Guidance by Segment NJNG Remains the Largest Contributor to NFEPS Following the Conclusion of its Base Rate Case Fiscal 2025 NFEPS Guidance by Segment Q3 2025: Consistent New Jersey Performance From Natural Gas All Business Units 64% - 67% ~65% of Fiscal 2025 Energy Regulated NFEPS Expected No
Slide 7: New Jersey Natural Gas (NJNG): Customer Growth
New Jersey Natural Gas (NJNG): Customer Growth Strong Trend of Customer Growth Through a Mix of New Construction and Conversions Across New Jersey NJNG Total Customers • 93% Residential (in thousands) 590 • 97% Located in Monmouth / Ocean / Morris Counties 580 • Favorable Demographics 570 • Innovati
Slide 8: NJNG: Increasing Energy Efficiency
NJNG: Increasing Energy Efficiency Launched in 2009, SAVEGREEN® provides energy efficiency solutions that meet the unique needs and budgets of residential and commercial customers — including low- and moderate income, multifamily, hospitals and municipalities. Record Levels of Significant Runway for
Slide 9: NJNG: Year to Date CAPEX
NJNG: Year to Date CAPEX 47% of NJNG Capital Expenditures Earnings a Near Real-Time Return YTD Fiscal 2025 Capital Expenditures1,2,3 (Actuals, $ in M) IIP System Integrity $24 $122 ~47% SAVEGREEN $73 ~$383M Capital Expenditures Earning a Cost of Near Real-time Return Removal/Other $40 New Customer $
Slide 10: Clean Energy Ventures (CEV): Strong Investment Options
Clean Energy Ventures (CEV): Strong Investment Options CEV Owns and Operates Solar Projects with Approximately 449MW of Commercial Solar Capacity MWs ~38% of pipeline located in NJ ~62% of pipeline located outside of NJ 1500 1.0 GW "Big Beautiful Bill" Enacted: Proactive Positioning Preserved Pipeli
Slide 11: Storage and Transportation (S&T): Maximizing Existing Assets
Storage and Transportation (S&T): Maximizing Existing Assets Leaf River (storage) and Adelphia Gateway (transportation) Leaf River Energy Center: Maximizing Existing Asset Capacity Recovery Project Ongoing Adelphia Section 4 Base Rate Case • Salt cavern leaching is a process • Filed in Fiscal 2024 F
Slide 12: Financial Review
Financial Review 12 12
Slide 13: Review of Fiscal 2025 Third Quarter and Year-to-Date Results
Review of Fiscal 2025 Third Quarter and Year-to-Date Results1 ($ in Millions) Fiscal Third Quarter Fiscal Year-to-Date $1.8 $39.1 $4.1 $2.7 $313.4 $16.2 $69.1 $6.2 $(3.8) $(0.1) $(1.5) $202.1 $(1.2) $(8.9) YTD 2024 NJNG CEV S&T ES HS & YTD 2025 Q3 2024 NJNG CEV S&T ES HS & 3Q 2025 Other Other Fiscal
Slide 14: NJR Capital Plan
NJR Capital Plan1,2 ($ in Millions) Capital plan supports long-term NFEPS growth targets of 7-9% Actuals Estimates $596 $644 $529 $650 - $770 $655 - $835 YTD $20 - $35 $10 - $25 $46 $175 - $275 $165 - $220 ~$1.3B - $1.6B $31 $96 $16 $110 $130 Planned CAPEX Over the Next 2 Years $503 $470 - $535 $454
Slide 15: Superior Credit Metrics, Balance Sheet and Cash Flows
Superior Credit Metrics, Balance Sheet and Cash Flows Well Positioned to Achieve Higher than Peer Growth with No Need for Block Equity NJNG NJR (Secured Rating) (Unsecured Rating) NAIC NAIC-1.E NAIC-2.A • Superior Credit Metrics Moody's A1 (Stable) Fitch A+ (Stable) • No Block Equity Needs NJR Adjus
Slide 16: Investment Considerations
Investment Considerations Complementary Energy Infrastructure Platform with Predictable Net Financial Earnings and Incremental Growth Opportunities Industry Leading Clear Regulatory Strong Consistent Growth Rate Visibility Balance Sheet Outperformance • Stated 7-9% long-term annual NFEPS* • NJR’s la
Slide 17: Appendix: Financial Statements and Additional Information
Appendix: Financial Statements and Additional Information 18 Reconciliation of NFE and NFEPS to Net Income 19 Other Reconciliation of Non-GAAP Measures 20 Reconciliation of Adjusted Funds from Operations to Cash Flow from Operations 21 Fiscal 2025 Third Quarter and Year-to-Date NFE and NFEPS by Busi
Slide 18: Reconciliation of NFE and NFEPS to Net Income
Reconciliation of NFE and NFEPS to Net Income ($ in 000s) (Unaudited) Three Months Ended Nine Months Ended June 30, June 30, 2025 2024 2025 2024 NEW JERSEY RESOURCES • NFE is a measure of earnings based on the elimination of timing differences to effectively A reconciliation of net income, the close
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, 2025 2024 2025 2024 A reconciliation of gross margin, the closest GAAP financial measurement, to utility gross margin is as follows: Operating revenues $ 205,029 $ 158,110 $ 1,157
Slide 20: 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, YTD FY2025 (Millions) Cash Flow from Operations $385.2 • Adjusted funds from operations is cash Add back flows from operating activities, plus Components of working capital $50.2 components
Slide 21: Fiscal 2025 Third Quarter and Year-to-Date NFE and NFEPS by Business Unit
Fiscal 2025 Third Quarter and Year-to-Date NFE and NFEPS by Business Unit1 ($ in 000s) Net Financial Earnings (NFE) (Thousands) Three Months Ended June 30, Nine Months Ended June 30, 2025 2024 Change 2025 2024 Change New Jersey Natural Gas $10,079 $(6,139) $16,218 $221,518 $152,400 $69,118 Clean Ene
Slide 22: Capital Plan Table
Capital Plan Table1,2 ($ in Millions) Actuals Estimates YTD Near Real FY2024A FY2025A FY2025E FY2026E Time Return? New Jersey Natural Gas New Customer $100 $83 $110 - $115 $100 - $110 Yes IIP $42 $24 $25 - $35 $— - $— Yes SAVEGREEN $71 $73 $90 - $95 $70 - $80 Yes IT $60 $42 $45 - $55 $5 - $15 System
Slide 23: Debt Repayment Schedule
Debt Repayment Schedule No Significant Maturity Towers in Any Particular Year NJR Unsecured Senior Notes 3.54% FY Maturity 2026 Principal $100,000 4.38% 2027 $110,000 3.96% 2028 $100,000 Term Debt1 Maturity Schedule 3.29% 3.50% 2029 2030 $150,000 $130,000 as of June 30, 2025 / $ in Millions, unless
Slide 24: Projected Cash Flows
Projected Cash Flows1 ($ in Millions) Actuals Estimates (unchanged from prior disclosure) Operating cash flows are primarily FY YTD affected by variations in working FY2025E FY2026E 2024A FY2025A capital, which can be impacted by several factors, including: • seasonality of our business Cash Flows (
Slide 25: Business Overview
Business Overview 26 NJR: Business Portfolio 27 NJNG: High Quality Utility in Favorable Favorable Regulatory Environment 28 NJNG: Supportive Regulatory Construct 29 CEV: Overview 30 CEV: SREC Hedging Strategy Stabilizes Revenue 31 Storage and Transportation (S&T): Overview 32 Energy Services (ES): O
Slide 26: NJR: Business Portfolio
NJR: 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 approxi
Slide 27: NJNG: High Quality Utility in Favorable Regulatory Environment
NJNG: High Quality Utility in Favorable Regulatory Environment Operates and Maintains Natural Gas Transportation and Distribution Infrastructure Serving Approximately 588,300 Customers in New Jersey (predominately located in Monmouth, Ocean, Morris Counties, as well as Middlesex, Sussex and Burlingt
Slide 28: 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 29: CEV: Overview
CEV: Overview Largest Solar Owner-Operator in New Jersey; Diverse and Innovative Commercial Solar Projects Throughout Six States ~$1 billion invested in the solar ~77 commercial projects marketplace to date in service Orange County, NY East Hampton, CT Lansing, MI Howard, RI Kokomo, IN Mount Olive,
Slide 30: CEV: SREC Hedging Strategy Stabilizes Revenue
CEV: SREC Hedging Strategy Stabilizes Revenue Based on Energy Year1, as of June 30, 2025 Represents CEV Commercial Solar Business Hedged Unhedged Percent Hedged Average Price Current Price (EY) EY 2025 334 32 91% $191 $206 91% EY 2026 295 11 Thousands 97% $179 $181 Hedged EY 2027 214 93 70% $166 $16
Slide 31: Storage and Transportation (S&T): Overview
Storage and Transportation (S&T): Overview Leaf River (storage), Steckman Ridge (storage), and Adelphia Gateway (transportation) Maximizing capabilities at existing assets as pipeline and storage constraints continue to highlight the ▪ 0.9 mmdth/d interstate benefit of storage and transportation ass
Slide 32: Energy Services (ES): Overview
Energy Services (ES): 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 Long Option Strategy • De-risking transaction for Energ
Slide 33: 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 Record Date Payable Date Amount Per Share $1.80 6/10/2025 3/11/2025 7/01/2025 4/01/2025 $0.45 $0.45 FY 202
Slide 34: Industry Leading Long-Term Growth Rate of 7-9%
Industry Leading Long-Term Growth Rate of 7-9% Highly Visible 7-9% NFEPS Growth with Potential for Additional Upside, No Block Equity Needs, "Utility-like" Earnings Contribution Net Financial Earnings NJNG CEV S&T Energy per Share Guidance Range Services $3.20 - $3.30 $3.20 % $3.00 Potential Upside
Slide 35: Shareholder and Online Information
Shareholder and Online Information Stock Transfer Agent and Registrar Corporate Headquarters The Transfer Agent and Registrar for the company’s common stock is 1415 Wyckoff Road Broadridge Corporate Issuer Solutions, Inc. (Broadridge). Wall, NJ 07719 (732) 938-1000 Shareowners with questions about a