Newjersey Resources Corporation · NYSE:NJR
Newjersey Resources — Shareholder Meeting (January 2020)
50 slides from Newjersey Resources's shareholder meeting presentation, Jan 22, 2020
Slide 1: Slide 1
Slide 2: 2020 Annual Meeting: Leading the Way to a Clean Energy Future
2020 Annual Meeting IM: Jersey (\ Resources Leading the Way to a Clean Energy Future
Slide 3: Forward Looking Statements
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 Litigation Reform Act of 1995. New Jersey Resource
Slide 4: 2020 Annual Meeting
2020 Annual Meeting IM: Jersey (\ Resources Leading the Way to a Clean Energy Future
Slide 5: Recognition
Recognition J. Terry Strange Laurence M. Downes
Slide 6: Local 1820
Local 1820 © = = c a 8 5 a (4 s oO o a a x
Slide 7: Performance Highlights
Performance Highlights IM: Jersey (\ Resources
Slide 8: Fiscal 2019 Highlights
Fiscal 2019 Highlights New Jersey Resources Net Income $169.5 million $1.90 per share $175 million $1.96 per share Net Financial Earnings
Slide 9: Annual Dividend Rate Per Share and Payout Ratio
$0.96 40%) 2016 2017 2018 2019 2020E (Annual Dividend Rate Per Share ~{§~Payout Ratio 6%-8% Expected long-term dividend growth rate; 6.8% dividend increase for fiscal 2020 Consecutive dividend increase over past 24 years (1) Includes outperformance of Energy Services and tax reform
Slide 10: Delivering Customer Satisfaction
Delivering Customer Satisfact in the East among large utilities J.D. Power Five Years in a Row; 14" time since 2002
Slide 11: New Jersey Natural Gas - Customer Growth
New Jersey Natural Gas —- Customer Growth IM 9,700 NJNG added customers in fiscal 2019 948,000 Total utility customers 28,000 — 30,000
Slide 12: Investing in Utility Infrastructure
Investing ity Infrastructure 4,000 3,500 3,000 2,500 2,000 Pending Leaks 1,500 1,000 500 Leaks/Mile & Pending Leaks Lowest number of leaks per mile of any natural gas utility in New Jersey (Pending Leaks —e=Leaks Per Mile 09 08 o7 06 05 04 03 02 0.4 Leaks Per Mile Metric tons of methane emissions re
Slide 13: Settled New Jersey Natural Gas Base Rate Case
Settle New Jersey Natural Gas Base Rate Case Overall Cost of Capital and Weighted Return Approved | Weighted Percent | “Return Cost Long-Term ah 46.0% 3.83% 1.76% Comment 54.0% 9.60% 5.19% Equity Total 100.0% 6.95% New Jersey Natural Gas Settlement ($000) Rate Base $1,764,650 Rate of Retum 6.95% Ope
Slide 14: NJNG Transmission Pipeline Approvals
Approvals NJNG ‘Transmission Purpose Construction began in fiscal 1Q19 20 miles completed; 10 miles remaining Received all necessary permits and approvals Joint Base McGuire-Dix-Lakehurst easement NJ Pinelands Commission, NJDEP, NJBPU Burlington County 30-mile pipeline designed to improve system int
Slide 15: Expanding Our Midstream Business
Expanding Our Midstream Business Leaf River Energy Center Tennessee Gas Leaf River Energy Center BH Leaf River Pipeline Interconnect IK Leat River Storage Site ‘fe — Leat River Pipeline \ Fal Leaf River Pipeline Facilities © LNG Operating/FID — 4 seine ich 7 | i= Connected Pipelines — Columbia Gut T
Slide 16: NJR Midstream - Adelphia Gateway
NJR Midstream — Adelphia Gatew. Recent Developments + Received FERC Certificate of Public Convenience and Necessity Next Steps * Convert 50-mile southern section to a natural-gas only pipeline Adding additional compression to facilitate natural gas transportation New laterals and interconnects will
Slide 17: PennEast Pipeline
PennEast Pipeline Teansioe Project Description = 20 percent ownership in 120-mile transmission pipeline to Northeast connecting Marcellus Shale region supply Penn East Pipelne Access to the lowest cost supply point in North America; expected to benefit customers and local economies = Approved by FER
Slide 18: Clean Energy Ventures
Clean Energy Ventures Placed 7 commercial solar projects in service Atotal of 42 commercial projects in service; over 8,000 residential solar customers Nearly 300 megawatts clean energy Enough to power 27,000 homes Investments reduced greenhouse gas emissions by over 200,000 tons \ : = annually
Slide 19: Delivering Results
Delivering Results Energy Services contributed $2.9 million to NFE Home Services completed over 95,000 jobs Named best HVAC in Monmouth County
Slide 20: Making a Difference in Our Communities
Making a Difference in Our Communities 5,400 volunteer service hours assisting 2,500 nonprofit and community organizations
Slide 21: Strategic Outlook
Aenewaste < ENERGY Strategic Outlook New Jersey (\ Resources
Slide 22: Strategic Priorities (2020-2022)
Strategic Priorities (2020-2022) Investing in utility infrastructure projects — $1.1 billion Developing renewable energy projects and solar investments — $386 million Expanding our midstream portfolio with high-quality assets — $556 million 2
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Slide 24: Changing Energy Landscape
Changing Energy Landscape
Slide 25: The Demand for Natural Gas
The Demand for Natural Gas 75% of families and businesses in New Jersey use natural gas of families and businesses in our service territory use natural gas
Slide 26: Customer Savings
Customer Savings - NJNG customer’s bills are 30% lower than 2008
Slide 27: Energy Industry Innovations
Energy Industry Innovations IM sustainability emissions reduction methane control renewable energy
Slide 28: What Does this Mean?
What Does this Mean? IM New Jersey Resources embraces a clean
Slide 29: Delivering Clean, Reliable Energy
Delivering Clean, Reliable Energy $1 -6 billion invested in our natural gas delivery system since 2008 4st natural gas utility in New Jersey to eliminate cast iron 4st natural gas utility in New Jersey to remove bare steel expected by 2021 Nearly $900 million invested in New Jersey’s solar market
Slide 30: Energy Efficiency
Energy Efficiency 12% reduction in average customers natural gas consumption since 2006
Slide 31: Emerging Technologies
Emerging Technologies
Slide 32: Innovation
Innovation s ‘ ery MONTCLAIR STATE YY UNIVERSITY + Voice activated energy savings tips + Renewable natural gas in New Jersey
Slide 33: Renewable Natural Gas
Renewable Natural Gas PT 02) @ ie Capture waste Convert into biogas Process the biogas Stored in Pipeline from dairies, Using anaerobic to make it pipeline System for farms digestion ready Later Use
Slide 34: The Green Team
The Green Team om ~- ™~,
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Slide 36: Power-to-Gas Technologies
Power-to-Gas Technologies Creates Stored in Renewable Pipeline System Hydrogen Gas for Later Surplus Renewable Power Electricity Electrolysis
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Slide 38: Our Vision
Our Vision Be a leading energy infrastructure company * Deliver clean, decarbonized fuel to heat homes and businesses * Operate high-integrity, environmentally responsible assets + Invest in solar to power homes and businesses + Leverage expertise to support emerging markets
Slide 39: Commitment to Sustainability
Commitment to Sustainability Support public policies that address climate impacts Embrace innovations across technologies and fuel types Reduce greenhouse gas emissions from operated assets and suppliers Increase transparency about sustainability progress f Expand energy efficiency, conservation oes
Slide 40: 2030 Sustainability Goal
2030 Sustainability Goal We will reduce our operational emissions in New Jersey 50% 0 of 2006 levels by 2030 Consistent with New Jersey’s Global Warming Response Act Document our emissions reduction progress Emissions strategies to fully realize this goal
Slide 41: Leading the Way...
$a a... |: Zz Leading the Way...
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Slide 43: Providing Value to Our Investors
Providing Value to Our Investors 6 2% - 3% 6% -8% Dividend Long-Term Yield 8% -11% NFE Growth Total Shareholder Return 1) As of January 16, 2020, dividend yield v
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Slide 45: Leading the Way to a Clean Energy Future
New Jersey (\ Resources Leading the Way to a Clean Energy Future
Slide 46: Alfred Koeppe Service Award
Alfred oeppe Service Award 45
Slide 47: Leading the Way to a Clean Energy Future
New Jersey (\ Resources Leading the Way to a Clean Energy Future
Slide 48: Thank You
Thank You New Jersey (\ Resources
Slide 49: Appendix
Appendix New Jersey (\ Resources
Slide 50: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 1" A reconciliation of NFE for the three and twelve months ended September 30, 2019 and 2018 to net income is provided below: ‘Three Months Ended Twelve Months Ended ‘September 30, ‘September 30, (thousands) 2019 2018 2019 2018 Net Income (Loss) $18,086 (816,255)
New Jersey Resources — Shareholder Meeting (January 2020) on 6ix