Slide 1: Investor Presentation: Fiscal 2024 Financial Results
November 2024 Investor Presentation Fiscal 2024 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 and NJR At a Glance
Contents NJR At a Glance Fiscal 2024 Fourth Quarter and Year-End Conference Call 4 Fiscal 2024 Highlights: An Excellent Year Corporate Information 5 NJR Positioned for Future Growth 6 Fiscal 2025 NFEPS Guidance of $3.05 to $3.20 Ticker NYSE: NJR 7 Industry Leading Long-Term Growth Rate of 7-9% 8 NFE
Slide 4: Fiscal 2024 Highlights: An Excellent Year
Fiscal 2024 Highlights: An Excellent Year Contribution from All of NJR's Complementary Portfolio of Businesses Fiscal 2024 NFEPS of $2.951 Raised NFEPS Guidance by $0.15 During Fiscal 2024; Finished in the Higher End of Revised Range 4th Consecutive Year of Exceeding Initial Guidance and 7 - 9% Long
Slide 5: NJR Positioned for Future Growth
NJR Positioned for Future Growth Focus on Core Business Drivers Maximize the value of existing assets through organic growth opportunities to produce “utility-like” returns New Jersey Clean Energy Ventures Storage and Energy Services Natural Gas Transportation NJR Base Rate Case Record 1.1GWs solar
Slide 6: Fiscal 2025 NFEPS Guidance of $3.05 to $3.20
Fiscal 2025 NFEPS Guidance of $3.05 to $3.20 Guidance Range Above 7% - 9% Long-term Projected NFEPS Growth Due to One-time Gain from Sunlight Advantage Transaction Net Financial Earnings per Share Actuals Estimates Guidance Range Maintaining % 7-9 $3.20 Outperformance Above Long-Term Growth Rate and
Slide 7: 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 Net Financial Earnings NJNG CEV S&T Energy per Share Services Guidance Range $3.05 - $3.20 $3.20 Potential Upside Stronger than expected BGSS Upside from power demand Short-term ca
Slide 8: NFEPS Guidance by Segment
NFEPS Guidance by Segment NJNG Remains the Largest Contributor to NFEPS following the conclusion of its Base Rate Case ~70% Fiscal 2025 NFEPS Guidance by Segment New Jersey Natural Gas Fiscal 2025 NFEPS Expected from 65% - 75% Utility Operations ~75% Excluding the One-Time Gain from the Regulated 68
Slide 9: 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 Fiscal 2024 Capital Expenditures1,2,3 (in thousands) (Actuals) 580 570 System Integrity IIP $172 $42 560 ~42% of capital 550 expenditures earning a S
Slide 10: Clean Energy Ventures (CEV): Investment Opportunities
Clean Energy Ventures (CEV): Investment Opportunities CEV owns and operates solar projects with approximately 386MW of commercial solar capacity1 MWs 1750 ~41% of pipeline located in NJ ~59% of pipeline located outside of NJ Total 1500 ~1.4GW CEV to focus on commercial solar 278 Pipeline of 1250 ~1.
Slide 11: Storage and Transportation (S&T): Organic Growth Initiatives
Storage and Transportation (S&T): Organic Growth Initiatives Leaf River (storage) and Adelphia Gateway (transportation) Leaf River Energy Center: Maximizing Existing Asset S&T to expand leaching plant Adelphia Section 4 Base Rate Case facilities • Salt cavern leaching is a process • Filed in Fiscal
Slide 12: Financial Review
Financial Review New Jersey OW) Resources
Slide 13: Review of Fiscal 2024 Year-End Results
Review of Fiscal 2024 Year-End Results1 ($ in Millions) Fiscal 2023 – Consolidated NFE ($ in millions) $ 261.8 NJNG $ 2.0 Utility Gross Margin1 $ 8.2 Depreciation & Amortization (D&A) $ (10.2) $43.0 $290.8 Interest expense, O&M, AFUDC, Income Tax $ 4.0 $261.8 $2.0 $(4.6) Clean Energy Ventures $ (10.
Slide 14: NJNG: New Base Rates
NJNG: New Base Rates NJNG announced the conclusion of its Base Rate Case in November 2024 Overall Cost of Capital and Weighted Return Approved Weighted Percent Return Cost • Rate base of $3.2 Billion as Long-Term Debt 46.0% 4.11% 1.89% of November 2024 Common Equity 54.0% 9.60% 5.18% ◦ 29% increase
Slide 15: NJR Capital Plan
NJR Capital Plan1,2 ($ in Millions) Capital plan supports long-term NFEPS growth targets of 7-9%; Increases in Fiscal 2025 / Introduction of Fiscal 2026 Range Actuals Estimates $622 $596 $644 $610 - $790 $655 - $835 $10 - $25 $20 - $35 $175 - $275 $46 $31 $160 - $265 $142 $96 $110 ~$1.3B - $1.6B $14
Slide 16: Superior Credit Metrics, Balance Sheet and Cash Flows
Superior Credit Metrics, Balance Sheet and Cash Flows Well Positioned to Achieve Higher than Peer Growth with No Need for Block Equity NJNG NJR (Secured Rating) (Unsecured Rating) Superior Credit Metrics NAIC NAIC-1.E NAIC-2.A Moody's A1 (Stable) Fitch A+ (Stable) No Block Equity Needs NJR Adjusted
Slide 17: Positioned for Future Growth and Value Creation
Positioned for Future Growth and Value Creation Implementing Strategic Plan to Drive Continued, Organic Growth Across Portfolio Disciplined Capital Opportunities to Invest Deliver Superior High Earnings Visibility Plan in Energy Transition Investment Returns Successful resolution of base NJR Capital
Slide 18: Appendix: Financial Statements and Additional Information
Appendix: Financial Statements and Additional Information Appendix: Financial Statements and Additional Information – 18 19 Reconciliation of NFE and NFEPS to Net Income 20 Other Reconciliation of Non-GAAP Measures 21 Reconciliation of Adjusted Funds from Operations to Cash Flow from Operations 22 F
Slide 19: Reconciliation of NFE and NFEPS to Net Income
Reconciliation of NFE and NFEPS to Net Income ($ in 000s) (Unaudited) Three Months Ended Twelve Months Ended September 30, September 30, 2024 2023 2024 2023 NEW JERSEY RESOURCES ◦ NFE is a measure of earnings based on the elimination of timing differences to effectively A reconciliation of net incom
Slide 20: 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, 2024 2023 2024 2023 A reconciliation of gross margin, the closest GAAP financial measurement, to utility gross margin is as follows: Operating revenues $ 105,091 $ 108
Slide 21: 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, FY2024 (Millions) Cash Flow from Operations $427.4 • Adjusted funds from operations is cash Add back flows from operating activities, plus Components of working capital $61.1 components of w
Slide 22: Fiscal 2024 Q4 and Year-End NFE and NFEPS by Business Unit
Fiscal 2024 Q4 and Year-End NFE and NFEPS by Business Unit1 ($ in 000s) Net Financial Earnings (NFE) (Thousands) Three Months Ended September 30, Twelve Months Ended September 30, 2024 2023 Change 2024 2023 Change New Jersey Natural Gas $(19,000) $(24,838) $5,838 $133,400 $131,414 $1,986 Clean Energ
Slide 23: Review of Fiscal 2024 Fourth Quarter Results
Review of Fiscal 2024 Fourth Quarter Results1 ($ in Millions) Fiscal 4Q23 – Consolidated NFE ($ in millions) $ 29.6 NJNG $ 5.8 Utility Gross Margin1 $ (0.7) $71.8 $88.7 Depreciation & Amortization (D&A) $ (3.3) $(4.5) Interest expense,O&M, AFUDC, Income Tax $ 9.8 Clean Energy Ventures $ (14.7) Reven
Slide 24: Capital Plan Table
Capital Plan Table1,2 ($ in Millions) Actuals Estimates Near Real FY2023A FY2024A FY2025E FY2026E Time Return? New Jersey Natural Gas New Customer $77 $100 $100 - $110 $100 - $110 Yes IIP $43 $42 $25 - $35 $— - $— Yes SAVEGREEN $60 $71 $65 - $75 $70 - $80 Yes IT $61 $60 $45 - $55 $5 - $15 System Int
Slide 25: Debt Repayment Schedule
Debt Repayment Schedule No significant maturity towers in any particular year NJR Unsecured Senior Notes FY Maturity Principal 3.48% 2025 $100,000 3.54% 2026 $100,000 Term Debt1 Maturity Schedule 4.38% 3.96% 2027 2028 $110,000 $100,000 as of September 30, 2024 / $ in Millions, unless otherwise noted
Slide 26: Projected Cash Flows
Projected Cash Flows1 ($ in Millions) Actuals Estimates FY FY FY 2025E FY 2026E Operating cash flows are primarily 2023A 2024A affected by variations in working capital, which can be impacted by several factors, including: Cash Flow from Operations $479 $427 $460 - $500 $510 - $550 • seasonality of
Slide 27: Business Overview
Business Overview Business Overview - 27 28 NJR: Business Portfolio 29 NJNG: High Quality Utility in Favorable Favorable Regulatory Environment 30 NJNG: Supportive Regulatory Construct 31 CEV: Overview 32 CEV: SREC Hedging Strategy Stabilizes Revenue 33 Storage and Transportation (S&T): Overview 34
Slide 28: 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 29: 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 583,000 Customers in Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington counties $ 583,000 6 3.2B Total Customers Counties Acr
Slide 30: 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 mitigated through the Conservation Incentive Program • Current ROE of 9.60% with a common equity ratio of 54% La
Slide 31: CEV: Overview
CEV: Overview Largest Solar Owner-Operator in New Jersey • Over $1.2 billion invested in the CEV owns and operates commercial solar projects in New Jersey, Rhode Island, New York, solar marketplace to date Connecticut, Indiana, and Michigan with approximately 386MW of installed capacity • A total of
Slide 32: CEV: SREC Hedging Strategy Stabilizes Revenue
CEV: SREC Hedging Strategy Stabilizes Revenue Based on Energy Year1, as of September 30, 2024 Hedged Unhedged Percent Hedged Average Price Current Price (EY) EY 2025 353 40 90% $190 $204 89% Hedged Thousands EY 2026 355 42 89% $179 $194 Through 199 191 EY 2027 51% $165 $183 Energy Year EY 2028 129 2
Slide 33: 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 34: 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 35: 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 $1.80 Record Date 9/23/2024 Payable Date 10/01/2024 Amount Per Share $0.45* FY 2025 Dividend 6/12/2024 7/0
Slide 36: 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 37: 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