Slide 1: Fiscal First Quarter 2016 Update
We Fiscal First Quarter 2016 Update IM vescncee © f February 3, 2016
Slide 2: News Regarding Forward-Looking Statements
News Regarding Forward-Looking Statements Certain statements contained in tis presentation are forward-looking statements within the meaning ofthe Private Securities Litigation Reform Act of 1996. New Jersey Resources (NJR or the Company) cautions readers that the assumptions forming the basis for f
Slide 3: Disclaimer Regarding Non-GAAP Financial Measures
Disclaimer Regarding Non-GAAP Financial Measures New Jersey Resources. This presentation includes the non-GAAP measures net financial earnings (NFE), utility gross margin and financial margin. As indicators of the Company's operating performance, these measures should not be considered alternatives
Slide 4: Fiscal First Quarter 2016 Highlights
Mie Fiscal First Quarter 2016 Highlights Results = Net Financial Earnings (NFE) of $.58 per share compared with $.65 per share = NJR Energy Services (NJRES) continues to perform in line with expectations = NJNG added 2,046 new customers = Retired last section of cast iron main — only utility in NJ t
Slide 5: Net Financial Earnings (NFE)
Company Net Financial Earnings (NFE) Three Months Ended December 31, 2015 2014 New Jersey Natural Gas $30.6 $28.2 NJR Midstream 2.3 21 NJR Clean Energy Ventures 7.5 9.0 NJR Energy Services 10.0 16.4 NJR Home Services/Other (0.8) (0.6) Total $49.6 $55.1 Per basic share $.58 $.65 Fiscal First Quart Up
Slide 6: Long Term Average Annual NFE Goal Remains
\ on Long Term Average Annual NFE Goal ea Remains 5 to 9 Percent = Invest in utility infrastructure projects that support reliable and resilient service = Continue innovative customer growth programs = Invest in Midstream projects such as PennEast Pipeline = Provide customers with renewable, cost- e
Slide 7: PTC and ITC Extended By Congress
Mie PTC and ITC Extended By Congress What happened? = PTC extended for wind projects = 10 years of PTC at full level ($23 per MW) for projects under construction by December 2016 "Declines 20 percent per year for projects starting construction in 2017, 2018 and 2019 = ITC extended for solar projects
Slide 8: New $84 Million Ringer Hill Wind Project
Mie New $84 Million Ringer Hill Wind Project = Located about 60 miles southeast of Pittsburgh = 14 GE turbines with a total capacity of 39.9 megawatts Titusvine? / > ae 4 mn} : G eae = Expected to be in-service in the first | ene ee Pe ene TS % re hacen quarter of fiscal 2017 ‘evceat PENINSY = Major
Slide 9: Infrastructure Spending Continues
Mie Infrastructure Spending Continues Capital Expenditures $450.0 $400.0 $390.7 $350.0 $332.8 $300.0 5 $250.0 $217.1 S $200.0 $185 $1500 is1s1. $149 $100.0 | | | | $50.0 | $0.0 2015A 2016E 2017E a NJNG m Midstream Solar m Wind Regulated U: combined wi stream represents the greatest portion of ca h a
Slide 10: Increased New Jersey Natural Gas NFE
Increased New Jersey Natural Gas NFE Three Months Ended December 31, 2015 2014 Utility Gross Margin $89.8 $87.2 Operating Income $47.7 $45.6 Net Financial Earnings $30.6 $28.2 Total Customers 516,000 510,000 NING Margin Change 86 r r r r r ecauber31,2014 Customer Gromhh ‘GSS Incenver_-«SAVEGREEN Dec
Slide 11: Customer Growth Continues
fMxz’ \ Customer Growth Continues = 2,046 new customers oe added in FY1Q 2016 _ 8,000 1,056 new construction 7,000 customers 00 990 conversions 5,000 + 77 existing customer heat ~ conversions 2,000 «= Ontrack to add 8,150 new 41,000 customers this year a JOFYIS 10FYI6 FYMA FYISA FYISE FYITE FYIBE |
Slide 12: Collaborative Regulatory Relationships
[Mizxz Collaborative Regulatory Relationships Regulatory and Incentive Programs « BGSS: Basic Gas Supply Service Incentives (1992) = CIP: Conservation Incentive Program (2006) « The SAVEGREEN Project® (2009) " SAFE: Safety Acceleration and Facility Enhancement Program (2012) + NJ RISE: New Jersey Re
Slide 13: Base Rate Case Update
Mie Base Rate Case Update = November 2015 filing date established with the approval of SAFE in 2012 = Requested an increase of $147.6 million = Proposed rate base of nearly $1.6 billion = Overall cost of capital: Embedded Weighted’ ($ Millions) Amount Percent __Cost Long-term Debt $7432| 46.35%| 3.9
Slide 14: Midstream Results
Mie Midstream Results Three Months Ended December 31, 2015 2014 Net Financial Earnings $2.3 $2.1 Seshaen Ridge $127 million investment, 12 Bcf natural gas storage facility in southwest Pennsylvania = 50/50 joint venture with Spectra Energy = Direct access to Texas Eastern and Dominion Transmission p
Slide 15: NJRES Results Supported By Option Strategy
JRES Results Supported By L Option Strategy Three Months Ended December 31, 2015 2014 Financial Margin $19.9 Net Financial Earnings $10.0 Gas Sold and Managed (Bcf) 132.7 165.5 Average Firm Transportation (Bcf/d) 1.65 1.47 [Average Firm Storage (Bcf) 4 43 = Lower Financial margin and NFE in the quar
Slide 16: NJRCEV Results
Mie NJRCEV Results ($MM) Three Months Ended Solar Revenue Wind Revenue Sunlight Advantage Lease Revenue Total Operating Revenue ITC/PTC Impact Net Financial Earnings = Placed $2.8 million (0.7 MW) of residential solar-related capital into service = Completed 50.7 MW Alexander wind farm in Rush Count
Slide 17: NJRCEV Is Actively Hedging SRECs to Reduce Future Price Uncertainty
NJRCEV Is Actively Hedging SRECs to Reduce Future Price Uncertainty New Jersey Resources. 250 216 195 200 -———— +—_] a 172 i & 150 xo} 3 2 $ 100 3 3 2 E 50 0 - - Fy16 FYI7E FY18E G@dHedged Expected Generated == Current Generation Pct. Hedged: 92% 61% 39% Average Price: $211 $225 $230 As of January 3
Slide 18: Our Path To Future Growth
Our Path To Future Growth NING ¥ Customer Growth v CIP ¥ BGSS Incentives ¥ Infrastructure Programs v SAVEGREEN v NJRISE v SRL ¥ Rate case filing ¥ Liquefaction plant in service Midstream v PennEast continued progress Clean Energy v More SRECs; stable prices ¥ Alexander completed; Expanded wind inves
Slide 19: Fiscal First Quarter 2016 Update
We Fiscal First Quarter 2016 Update IM vescncee © f February 3, 2016