Newjersey Resources Corporation · NYSE:NJR
Newjersey Resources — Q2 2025 Earnings Presentation
32 slides from Newjersey Resources's earnings presentation, May 6, 2025
Slide 1: Investor Presentation: Fiscal 2025 Second Quarter and Year-to-Date Financial Results
May 2025 Investor Presentation Fiscal 2025 Second 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 Second Quarter and Year-to-Date Conference Call Corporate Information 4 Fiscal 2025 Second Quarter and Year-to-Date Highlights 5 Increases Fiscal 2025 NFEPS Guidance by $0.10 to $3.15 to $3.30 Ticker NYSE: NJR 6 NFEPS Guidance by Segment 7 New Jersey Natural Gas
Slide 4: Fiscal 2025 Second Quarter and Year-to-Date Highlights
Fiscal 2025 Second Quarter and Year-to-Date Highlights Executing on our Strategic Plan to Drive Growth $2.04 $1.78 FY 2025 Q2 EPS FY 2025 Q2 NFEPS1 Solid Execution Across all of NJR's Complementary Portfolio of Businesses New Jersey Clean Energy Storage and Energy Services Natural Gas Ventures Trans
Slide 5: Increases Fiscal 2025 NFEPS Guidance by $0.10 to $3.15 to $3.30
Increases Fiscal 2025 NFEPS Guidance by $0.10 to $3.15 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 Guidance Ra
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 Q2 2025: Expansion New Jersey Natural Gas of Energy Services 65% - 68% Over 65% of Fiscal Contribution Due to 2025 NFEPS Outperformance in Ener
Slide 7: New Jersey Natural Gas (NJNG)
New Jersey Natural Gas (NJNG) Strong Trend of Customer Growth Through a Mix of New Construction and Conversions Across New Jersey NJNG Total Customers YTD Fiscal 2025 Capital Expenditures1,2,3 (in thousands) (Actuals) 590 580 IIP $16 System Integrity $87 570 Investments Under New Program ~46% of SAV
Slide 8: Clean Energy Ventures (CEV)
Clean Energy Ventures (CEV) CEV Owns and Operates Solar Projects with Approximately 417MW of Commercial Solar Capacity MWs 1750 ~41% of pipeline located in NJ ~59% of pipeline located outside of NJ Total 1500 ~1.4GW Placed 18+ MW Grid- Connected 227 Pipeline of 1250 Project into ~1.0GW Service in in
Slide 9: Storage and Transportation (S&T)
Storage and Transportation (S&T) Leaf River (storage) and Adelphia Gateway (transportation) Leaf River Energy Center: Maximizing Existing Asset Capacity Recovery Project Ongoing Adelphia Section 4 Base Rate Case • Salt cavern leaching is a process • Filed in Fiscal 2024 Fourth Quarter used to regain
Slide 10: Financial Review
Financial Review 10 10
Slide 11: Review of Fiscal 2025 Second Quarter and Year-to-Date Results
Review of Fiscal 2025 Second Quarter and Year-to-Date Results1 ($ in Millions) Fiscal Second Quarter Fiscal Year-to-Date $39.3 $2.4 $4.0 $307.2 $37.4 $1.7 $0.4 $2.6 $178.3 $52.9 $(2.3) $138.6 $(2.3) $211.0 YTD 2024 NJNG CEV S&T ES HS & YTD 2025 Q2 2024 NJNG CEV S&T ES HS & 2Q 2025 Other Other Fiscal
Slide 12: NJR Capital Plan
NJR Capital Plan1,2 ($ in Millions) Capital plan supports long-term NFEPS growth targets of 7-9% Actuals Estimates (unchanged from prior disclosure) $596 $644 $339 $610 - $790 $655 - $835 YTD $10 - $25 $20 - $35 $46 $175 - $275 ~$1.3B - $1.6B $31 $96 $160 - $265 $110 Planned CAPEX Over $12 the Next
Slide 13: 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 Adjusted
Slide 14: 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 $3.15 - $3.30 $3.20 % $3.00 Potential Upside
Slide 15: Appendix: Financial Statements and Additional Information
Appendix: Financial Statements and Additional Information Appendix: Financial Statements and Additional Information – 15 16 Reconciliation of NFE and NFEPS to Net Income 17 Other Reconciliation of Non-GAAP Measures 18 Reconciliation of Adjusted Funds from Operations to Cash Flow from Operations 19 F
Slide 16: Reconciliation of NFE and NFEPS to Net Income
Reconciliation of NFE and NFEPS to Net Income ($ in 000s) (Unaudited) Three Months Ended Six Months Ended March 31, March 31, 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 clos
Slide 17: Other Reconciliation of Non-GAAP Measures
Other Reconciliation of Non-GAAP Measures ($ in 000s) (Unaudited) Three Months Ended Six Months Ended March 31, March 31, 2025 2024 2025 2024 A reconciliation of gross margin, the closest GAAP financial measurement, to utility gross margin is as follows: Operating revenues $ 618,645 $ 463,201 $ 952,
Slide 18: 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 $414.1 • Adjusted funds from operations is cash Add back flows from operating activities, plus Components of working capital ($2.8) components
Slide 19: Fiscal 2025 Second Quarter and Year-to-Date NFE and NFEPS by Business Unit
Fiscal 2025 Second Quarter and Year-to-Date NFE and NFEPS by Business Unit1 ($ in 000s) Net Financial Earnings (NFE) (Thousands) Three Months Ended March 31, Six Months Ended March 31, 2025 2024 Change 2025 2024 Change New Jersey Natural Gas $144,531 $107,095 $37,436 $211,439 $158,539 $52,900 Clean
Slide 20: Capital Plan Table
Capital Plan Table1,2 ($ in Millions) Actuals Estimates (unchanged from prior disclosure) YTD Near Real FY2024A FY2025A FY2025E FY2026E Time Return? New Jersey Natural Gas New Customer $100 $50 $100 - $110 $100 - $110 Yes IIP $42 $16 $25 - $35 $— - $— Yes SAVEGREEN $71 $52 $65 - $75 $70 - $80 Yes IT
Slide 21: Debt Repayment Schedule
Debt Repayment Schedule No Significant Maturity Towers in Any Particular Year NJR Unsecured Senior Notes FY Maturity Principal 3.54% 2026 $100,000 4.38% 2027 $110,000 Term Debt1 Maturity Schedule 3.96% 2028 $100,000 3.29% 2029 $150,000 3.50% 2030 $130,000 as of March 31, 2025 / $ in Millions, unless
Slide 22: 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 23: Business Overview
Business Overview Business Overview - 23 24 NJR: Business Portfolio 25 NJNG: High Quality Utility in Favorable Favorable Regulatory Environment 26 NJNG: Supportive Regulatory Construct 27 CEV: Overview 28 CEV: SREC Hedging Strategy Stabilizes Revenue 29 Storage and Transportation (S&T): Overview 30
Slide 24: 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 25: 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 588,000 Customers in New Jersey (predominately located in Monmouth, Ocean, Morris Counties, as well as Middlesex, Sussex and Burlingt
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: 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 A total of ~74 commercial projects marketplace to date in service as of April 30, 2025 Orange County, NY East Hampton, CT Lansing, MI How
Slide 28: CEV: SREC Hedging Strategy Stabilizes Revenue
CEV: SREC Hedging Strategy Stabilizes Revenue Based on Energy Year1, as of March 31, 2025 Represents CEV Commercial Solar Business Hedged Unhedged Percent Hedged Average Price Current Price (EY) EY 2025 334 35 91% $191 $206 91% EY 2026 295 16 Thousands 95% $179 $150 Hedged EY 2027 214 93 70% $166 $1
Slide 29: 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 30: 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 31: 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 3/11/2025 12/11/2024 4/01/2025 1/02/2025 $0.45 $0.45 FY 20
Slide 32: 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