New Jersey Resources Reports Fiscal 2022 Fourth-Quarter and Year End Results

Rhea-AI Summary

New Jersey Resources Corporation (NJR) reported strong financial results for fiscal 2022, with consolidated net income of $274.9 million, a significant increase from $117.9 million in 2021. The company achieved net financial earnings (NFE) of $240.3 million, or $2.50 per share, up from $207.7 million in the prior year. NJR also announced a 7.6% increase in its dividend, now $1.56 per share. For fiscal 2023, NJR introduced NFE guidance of $2.42 to $2.52 per share, maintaining its long-term growth rate projection of 7-9%.

Positive

• Consolidated net income increased to $274.9 million in fiscal 2022 from $117.9 million in 2021.
• Net financial earnings rose to $240.3 million, or $2.50 per share, compared to $207.7 million and $2.16 per share in 2021.
• Dividend increased by 7.6% to $1.56 per share.
• Introduced NFE guidance of $2.42 to $2.52 per share for fiscal 2023, indicating potential growth.

Negative

• New Jersey Natural Gas reported a net financial loss of $16.4 million in Q4 fiscal 2022.

Introduces Fiscal 2023 Guidance and Maintains its Long-term Projected Growth Rate

WALL, N.J.--(BUSINESS WIRE)-- Today, New Jersey Resources Corporation (NYSE: NJR) reported results for the fourth quarter and year ended fiscal 2022. Highlights include:

• Consolidated net income of $274.9 million for fiscal 2022, compared with net income of $117.9 million in fiscal 2021
• Consolidated net financial earnings (NFE), a non-GAAP financial measure, of $240.3 million for fiscal 2022, or $2.50 per share, compared to NFE of $207.7 million, or $2.16 per share, in fiscal 2021
• Achieves highest end of previously provided $2.40 to $2.50 guidance range, which was raised twice during fiscal 2022 due to strong performance across its portfolio of energy infrastructure businesses, including New Jersey Natural Gas Company (NJNG)
• Increased fiscal 2023 annual dividend by 7.6 percent to $1.56 per share
• Completed construction and placed Adelphia Gateway pipeline into service

Outlook for Fiscal 2023

• Introduces fiscal 2023 net financial earnings per share (NFEPS) guidance range of $2.42 to $2.52
• Maintains long-term projected NFEPS growth rate of 7 to 9 percent⁽¹⁾

Fourth-quarter fiscal 2022 net income totaled $54.5 million, or $0.57 per share, compared with a net loss of $(1.1) million, or $(0.01) per share, during the same period in fiscal 2021. Fiscal 2022 net income totaled $274.9 million, or $2.86 per share, compared with $117.9 million, or $1.23 per share, in fiscal 2021.

Fourth-quarter fiscal 2022 NFE totaled $47.9 million, or $0.50 per share, compared to NFE of $6.6 million, or $0.07 per share, during the same period in fiscal 2021. Fiscal 2022 NFE totaled $240.3 million, or $2.50 per share, compared with $207.7 million, or $2.16 per share in fiscal 2021.

Steve Westhoven, President and CEO, stated, "Fiscal 2022 was an outstanding year for NJR. We took advantage of tightening energy markets across our complementary portfolio of businesses, allowing us to raise guidance two times during the fiscal year. We also made progress in executing our strategic growth objectives, highlighted by placing the Adelphia Gateway pipeline into service. This represented an important milestone for our company, and will help provide reliable energy to a capacity constrained region, which includes the Philadelphia metro area."

Key Performance Metrics

	Three Months Ended							Twelve Months Ended
	September 30,							September 30,
($ in Thousands)		2022			2021				2022			2021
Net income (loss)	$	54,522		$	(1,133	)		$	274,922		$	117,890
Basic EPS	$	0.57		$	(0.01	)		$	2.86		$	1.23
Net financial earnings	$	47,896		$	6,599			$	240,321		$	207,712
Basic net financial (loss) earnings per share	$	0.50		$	0.07			$	2.50		$	2.16

⁽¹⁾ NFEPS long-term annual growth projections are based on the midpoint of the $2.20 - $2.30 initial guidance range for fiscal 2022, provided on February 1, 2021

A reconciliation of net income to NFE for the three and twelve months ended September 30, 2022 and 2021, is provided below.

	Three Months Ended						Twelve Months Ended
	September 30,						September 30,
(Thousands)		2022			2021			2022			2021
Net income	$	54,522		$	(1,133)		$	274,922		$	117,890
Add:
Unrealized (gain) loss on derivative instruments and related transactions		(1,846)			40,576			(59,906)			54,203
Tax effect		439			(9,647)			14,248			(12,887)
Effects of economic hedging related to natural gas inventory		(5,221)			(30,150)			19,939			(42,405)
Tax effect		1,241			7,166			(4,738)			10,078
(Gain on) impairment of equity method investment		(1,500)			—			(5,521)			92,000
Tax effect		374			767			1,377			(11,167)
NFE tax adjustment		(113)			(980)			—			—
Net financial earnings	$	47,896		$	6,599		$	240,321		$	207,712
Weighted Average Shares Outstanding
Basic		96,235			96,198			96,100			96,227
Diluted		96,630			96,198			96,488			96,560
Basic earnings (loss) per share	$	0.57		$	(0.01)		$	2.86		$	1.23
Add:
Unrealized (gain) loss on derivative instruments and related transactions		(0.02)			0.42			(0.62)			0.56
Tax effect		0.01			(0.10)			0.15			(0.13)
Effects of economic hedging related to natural gas inventory		(0.05)			(0.31)			0.21			(0.44)
Tax effect		0.01			0.07			(0.05)			0.10
(Gain on) impairment of equity method investment		(0.02)			—			(0.06)			0.96
Tax effect		—			0.01			0.01			(0.12)
NFE tax adjustment		—			(0.01)			—			—
Basic NFE per share	$	0.50		$	0.07		$	2.50		$	2.16

NFE is a measure of earnings based on the elimination of timing differences to effectively match the earnings effects of the economic hedges with the physical sale of natural gas, Solar Renewable Energy Certificates (SRECs) and foreign currency contracts. Consequently, to reconcile net income and NFE, current-period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item. Realized derivative gains and losses are also included in current-period net income. However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the derivatives with realized margins on physical natural gas flows. NFE also excludes certain transactions associated with equity method investments, including impairment charges, which are non-cash charges, and return of capital in excess of the carrying value of our investment. These are not indicative of the Company's performance for its ongoing operations. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE.

A table detailing NFE for the three and twelve months ended September 30, 2022 and 2021, is provided below.

Net financial earnings (loss) by Business Unit

	Three Months Ended						Twelve Months Ended
	September 30,						September 30,
(Thousands)		2022			2021			2022			2021
New Jersey Natural Gas	$	(16,387)		$	(24,214)		$	140,124		$	107,375
Clean Energy Ventures (CEV)		57,813			40,861			39,403			16,789
Storage and Transportation		11,341			2,440			22,454			13,046
Energy Services		(3,383)			(14,384)			39,121			71,117
Home Services and Other		(1,894)			(1,127)			(781)			(826)
Subtotal		47,490			3,576			240,321			207,501
Eliminations		406			3,023			—			211
Total	$	47,896		$	6,599		$	240,321		$	207,712

Fiscal 2023 NFE Guidance:

NJR is introducing fiscal 2023 NFE guidance of $2.42 to $2.52, which represents 9.8 percent year-over-year growth over the midpoint of the originally provided fiscal 2022 guidance range of $2.20 to $2.30, subject to the risks and uncertainties identified below under "Forward-Looking Statements." The following chart represents NJR’s current expected contributions from its business segments for fiscal 2023:

Company	Expected Fiscal 2023 Net Financial Earnings Contribution
New Jersey Natural Gas	55 to 60 percent
Clean Energy Ventures	20 to 25 percent
Storage and Transportation	4 to 8 percent
Energy Services	15 to 20 percent
Home Services and Other	0 to 1 percent

In providing fiscal 2023 NFE guidance, management is aware there could be differences between reported GAAP earnings and NFE due to matters such as, but not limited to, the positions of our energy-related derivatives. Management is not able to reasonably estimate the aggregate impact or significance of these items on reported earnings and, therefore, is not able to provide a reconciliation to the corresponding GAAP equivalent for its operating earnings guidance without unreasonable efforts.

New Jersey Natural Gas

NJNG reported Fiscal 2022 NFE of $140.1 million, compared to NFE of $107.4 million during fiscal 2021. Fourth-quarter fiscal 2022 net financial loss was $(16.4) million, compared to net financial loss of $(24.2) million during the same period in fiscal 2021. The improvement for both periods was due primarily to higher base rates, which became effective on December 1, 2021.

Customer Growth:

• NJNG added 7,808 new customers during fiscal 2022, compared with 7,854 new customers added in fiscal 2021. NJNG expects these new customers to contribute approximately $6.5 million of incremental utility gross margin on an annualized basis.

Infrastructure Update:

• NJNG's Infrastructure Investment Program (IIP) is a five-year, $150 million accelerated recovery program that began in fiscal 2021. IIP consists of a series of infrastructure projects designed to enhance the safety and reliability of NJNG's natural gas distribution system. During fiscal 2022 NJNG spent $32.3 million under the program on various distribution system reinforcement projects. On March 31, 2022, the Company filed its first rate recovery request with the BPU. On July 13, 2022, NJNG updated the filing with actual information through June 30, 2022, seeking recovery for $28.9 million of investments, including AFUDC, from November 30, 2020 through June 30, 2022. On September 7, 2022, the BPU issued an Order approving a stipulation of settlement effective October 1, 2022.

Basic Gas Supply Service (BGSS) Incentive Programs:

BGSS incentive programs contributed $7.5 million to utility gross margin in the fourth-quarter of fiscal 2022, compared with $3.5 million during the same period in fiscal 2021.

In fiscal 2022, these programs contributed $19.6 million to utility gross margin, compared with $13.4 million during fiscal 2021. The increase was due primarily to higher margins from off-system sales and storage incentive, partially offset by lower capacity release volumes.

For more information on utility gross margin, please see "Non-GAAP Financial Information" below.

Energy-Efficiency Programs:

SAVEGREEN invested $53.3 million in fiscal 2022 in energy-efficiency upgrades for their customers' homes and businesses, NJNG’s largest ever annual investment in the program. NJNG recovered $25.8 million of its outstanding investments during fiscal 2022 through its energy efficiency rate.

Clean Energy Ventures

CEV reported fiscal 2022 NFE of $39.4 million, compared with NFE of $16.8 million during fiscal 2021. Fourth-quarter fiscal 2022 NFE were $57.8 million, compared to NFE of $40.9 million during the same period in fiscal 2021.

The improvement for both periods was due primarily to higher SREC and electricity revenue, partially offset by higher operating expenses and income tax provision.

As of September 30, 2022, Clean Energy Ventures had approximately 386.6 megawatts (MW) of solar capacity in service in New Jersey, Rhode Island, New York and Connecticut. CEV has over 762 MW of potential capital projects under construction, under exclusivity or under contract.

Storage and Transportation

Storage and Transportation reported fiscal 2022 NFE of $22.5 million, compared with NFE of $13.0 million during fiscal 2021. Fourth-quarter fiscal 2022 NFE were $11.3 million, compared with NFE of $2.4 million during the same period in fiscal 2021.

The increase in both periods was due primarily to increased operating revenue at Leaf River and higher transportation revenue at Adelphia Gateway, partially offset by increased O&M and depreciation expenses.

• Adelphia Gateway Fully Placed into Service - Adelphia Gateway is an 84-mile pipeline running from Marcus Hook to Martins Creek, Pennsylvania, originally built as an oil pipeline, which has now been repurposed to deliver natural gas to the Philadelphia and New Jersey markets.

Energy Services

Energy Services reported fiscal 2022 NFE of $39.1 million, compared with NFE of $71.1 million during fiscal 2021. The decrease was due primarily to price volatility related to the extreme weather in the mid-continent and southern regions of the U.S. during February 2021, which did not reoccur to the same extent during 2022, partially offset by revenues from the Asset Management Agreements (AMAs) which commenced in November 2021.

Fourth-quarter fiscal 2022 net financial loss was $(3.4) million, compared with a net financial loss of $(14.4) million for the same period last fiscal year. The improvement for the fourth quarter of fiscal 2022 compared to the prior year period was due primarily to the recognition of revenues from the AMAs, which became effective during the first quarter of fiscal 2022, as well as higher financial margin generated from storage and transportation assets due to periods of volatility across the United States during the summer, partially offset by higher O&M expense.

Home Services and Other Operations

Home Services and Other Operations reported fiscal 2022 net financial loss of $(0.8) million, which was unchanged compared to the prior year. Fourth-quarter fiscal 2022 net financial loss was $(1.9) million compared to a net financial loss of $(1.1) million for the same period in fiscal 2021.

Capital Expenditures and Cash Flows:

NJR is committed to maintaining a strong financial profile.

• During fiscal 2022, capital expenditures were $569.2 million, including accruals, of which $282.2 million were related to NJNG, compared with $682.9 million, of which $468.3 million were related to NJNG, during fiscal 2021. The decrease in capital expenditures was primarily due to the completion of the Southern Reliability Link (SRL) project, which was placed into service in August 2021.

• During fiscal 2022, cash flows from operations were $323.5 million, compared with cash flows from operations of $391.0 million during fiscal 2021. The decrease in operating cash flows was due to higher working capital requirements as a result of rising energy prices and outsized performance at Energy Services during February 2021 that did not reoccur at similar levels during fiscal 2022.

Forward-Looking Statements:

This earnings release 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. NJR cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJR’s ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants. Words such as “anticipates,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “believes,” “should” and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management’s current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon NJR. There can be no assurance that future developments will be in accordance with management’s expectations, assumptions and beliefs or that the effect of future developments on NJR will be those anticipated by management. Forward-looking statements in this earnings release include, but are not limited to, certain statements regarding NJR’s NFEPS guidance for fiscal 2023, forecasted contribution of business segments to NJR’s NFE for fiscal 2023, customer growth at NJNG, potential CEV capital projects through 2027, infrastructure programs and investments future decarbonization opportunities including IIP, the outcome of future Base Rate Cases with the BPU, Asset Management Agreements, and other legal and regulatory expectations.

Additional information and factors that could cause actual results to differ materially from NJR’s expectations are contained in NJR’s filings with the SEC, including NJR’s Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC’s web site, http://www.sec.gov. Information included in this earnings release is representative as of today only and while NJR periodically reassesses material trends and uncertainties affecting NJR's results of operations and financial condition in connection with its preparation of management's discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, NJR does not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.

Non-GAAP Financial Information:

This earnings release includes the non-GAAP financial measures NFE/net financial loss, NFE per basic share, financial margin and utility gross margin. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. As an indicator of NJR’s operating performance, these measures should not be considered an alternative to, or more meaningful than, net income or operating revenues as determined in accordance with GAAP. This information has been provided pursuant to the requirements of SEC Regulation G.

NFE and financial margin exclude unrealized gains or losses on derivative instruments related to NJR’s unregulated subsidiaries and certain realized gains and losses on derivative instruments related to natural gas that has been placed into storage at Energy Services and certain transactions related to NJR's investments in the PennEast Project, net of applicable tax adjustments as described below. Financial margin also differs from gross margin as defined on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization as well as the effects of derivatives as discussed above. Volatility associated with the change in value of these financial instruments and physical commodity reported on the income statement in the current period. In order to manage its business, NJR views its results without the impacts of the unrealized gains and losses, and certain realized gains and losses, caused by changes in value of these financial instruments and physical commodity contracts prior to the completion of the planned transaction because it shows changes in value currently instead of when the planned transaction ultimately is settled. An annual estimated effective tax rate is calculated for NFE purposes and any necessary quarterly tax adjustment is applied to NJR Energy Services Company.

NJNG’s utility gross margin is defined as operating revenues less natural gas purchases, sales tax, and regulatory rider expense. This measure differs from gross margin as presented on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization. Utility gross margin may also not be comparable to the definition of gross margin used by others in the natural gas distribution business and other industries. Management believes that utility gross margin provides a meaningful basis for evaluating utility operations since natural gas costs, sales tax and regulatory rider expenses are included in operating revenues and passed through to customers and, therefore, have no effect on utility gross margin.

Management uses these non-GAAP financial measures as supplemental measures to other GAAP results to provide a more complete understanding of NJR’s performance. Management believes these non-GAAP financial measures are more reflective of NJR’s business model, provide transparency to investors and enable period-to-period comparability of financial performance. A reconciliation of all non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. For a full discussion of NJR’s non-GAAP financial measures, please see NJR’s most recent Report on Form 10-K, Item 7.

About New Jersey Resources

New Jersey Resources (NYSE: NJR) is a Fortune 1000 company that, through its subsidiaries, provides safe and reliable natural gas and clean energy services, including transportation, distribution, asset management and home services. NJR is composed of five primary businesses:

• New Jersey Natural Gas, NJR’s principal subsidiary, operates and maintains over 7,700 miles of natural gas transportation and distribution infrastructure to serve over 569,300 customers in New Jersey’s Monmouth, Ocean and parts of Morris, Middlesex, Sussex and Burlington counties.

• Clean Energy Ventures invests in, owns and operates solar projects with a total capacity of more than 386 megawatts, providing residential and commercial customers with low-carbon solutions.

• Energy Services manages a diversified portfolio of natural gas transportation and storage assets and provides physical natural gas services and customized energy solutions to its customers across North America.

• Storage and Transportation serves customers from local distributors and producers to electric generators and wholesale marketers through its ownership of Leaf River and the Adelphia Gateway Pipeline Project, as well as our 50% equity ownership in the Steckman Ridge natural gas storage facility.

• Home Services provides service contracts as well as heating, central air conditioning, water heaters, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey.

NJR and its over 1,200 employees are committed to helping customers save energy and money by promoting conservation and encouraging efficiency through Conserve to Preserve® and initiatives such as The SAVEGREEN Project® and The Sunlight Advantage®.

For more information about NJR:
www.njresources.com.

Follow us on Twitter @NJNaturalGas.
“Like” us on facebook.com/NewJerseyNaturalGas.

NEW JERSEY RESOURCES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
		Three Months Ended						Twelve Months Ended
		September 30,						September 30,
(Thousands, except per share data)			2022			2021			2022			2021
OPERATING REVENUES
Utility		$	190,151		$	97,937		$	1,127,417		$	731,459
Nonutility			575,335			434,591			1,778,562			1,425,154
Total operating revenues			765,486			532,528			2,905,979			2,156,613
OPERATING EXPENSES
Gas purchases
Utility			112,463			36,569			547,901			247,734
Nonutility			413,521			356,721			1,393,656			1,096,920
Related parties			1,828			1,850			7,395			7,013
Operation and maintenance			118,723			101,126			361,866			366,905
Regulatory rider expenses			3,496			3,734			59,437			38,304
Depreciation and amortization			34,549			29,410			129,249			111,387
Total operating expenses			684,580			529,410			2,499,504			1,868,263
OPERATING INCOME			80,906			3,118			406,475			288,350
Other income, net			9,744			10,656			22,295			24,597
Interest expense, net of capitalized interest			26,016			19,876			85,830			78,559
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES			64,634			(6,102)			342,940			234,388
Income tax provision (benefit)			12,144			(4,427)			76,195			33,286
Equity in earnings (loss) of affiliates			2,032			542			8,177			(83,212)
NET INCOME (LOSS)		$	54,522		$	(1,133)		$	274,922		$	117,890
EARNINGS (LOSS) PER COMMON SHARE
Basic		$	0.57		$	(0.01)		$	2.86		$	1.23
Diluted		$	0.56		$	(0.01)		$	2.85		$	1.22
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic			96,235			96,198			96,100			96,227
Diluted			96,630			96,198			96,488			96,560

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES
(Unaudited)
		Three Months Ended						Twelve Months Ended
		September 30,						September 30,
(Thousands)			2022			2021			2022			2021
NEW JERSEY RESOURCES
A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:
Net income (loss)		$	54,522		$	(1,133)		$	274,922		$	117,890
Add:
Unrealized (gain) loss on derivative instruments and related transactions			(1,846)			40,576			(59,906)			54,203
Tax effect			439			(9,647)			14,248			(12,887)
Effects of economic hedging related to natural gas inventory			(5,221)			(30,150)			19,939			(42,405)
Tax effect			1,241			7,166			(4,738)			10,078
(Gain on) impairment of equity method investment			(1,500)			—			(5,521)			92,000
Tax effect			374			767			1,377			(11,167)
NFE tax adjustment			(113)			(980)			—			—
Net financial earnings		$	47,896		$	6,599		$	240,321		$	207,712
Weighted Average Shares Outstanding
Basic			96,235			96,198			96,100			96,227
Diluted			96,630			96,198			96,488			96,560
A reconciliation of basic earnings per share, the closest GAAP financial measure, to basic net financial earnings per share is as follows:
Basic earnings (loss) per share		$	0.57		$	(0.01)		$	2.86		$	1.23
Add:
Unrealized (gain) loss on derivative instruments and related transactions		$	(0.02)		$	0.42		$	(0.62)		$	0.56
Tax effect		$	0.01		$	(0.10)		$	0.15		$	(0.13)
Effects of economic hedging related to natural gas inventory		$	(0.05)		$	(0.31)		$	0.21		$	(0.44)
Tax effect		$	0.01		$	0.07		$	(0.05)		$	0.10
(Gain on) impairment of equity method investment		$	(0.02)		$	—		$	(0.06)		$	0.96
Tax effect		$	—		$	0.01		$	0.01		$	(0.12)
NFE tax adjustment		$	—		$	(0.01)		$	—		$	—
Basic NFE per share		$	0.50		$	0.07		$	2.50		$	2.16
NATURAL GAS DISTRIBUTION
A reconciliation of gross margin, the closest GAAP financial measure, to utility gross margin is as follows:
Operating revenues		$	190,488		$	98,274		$	1,128,767		$	731,796
Less:
Natural gas purchases			114,791			38,842			557,232			260,714
Operating and maintenance (1)			30,805			26,156			93,164			110,364
Regulatory rider expense			3,496			3,734			59,437			38,304
Depreciation and amortization			24,391			21,507			94,579			80,045
Gross margin			17,005			8,035			324,355			242,369
Add:
Operating and maintenance (1)			30,805			26,156			93,164			110,364
Depreciation and amortization			24,391			21,507			94,579			80,045
Utility gross margin		$	72,201		$	55,698		$	512,098		$	432,778
(1) Excludes selling, general and administrative expenses of $26.7 million and $29.3 million for the three months ended September 30, 2022 and 2021, respectively, and approximately $102.8 million and $97.0 million for the fiscal year ended September 30, 2022 and 2021, respectively
RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (continued)
(Unaudited)
		Three Months Ended						Twelve Months Ended
(Unaudited)		September 30,						September 30,
(Thousands)			2022			2021			2022			2021
ENERGY SERVICES
A reconciliation of gross margin, the closest GAAP financial measure, to Energy Services' financial margin is as follows:
Operating revenues		$	439,568		$	334,780		$	1,529,272		$	1,228,420
Less:
Natural Gas purchases			413,805			357,133			1,394,405			1,098,261
Operation and maintenance (1)			10,281			4,588			23,709			33,263
Depreciation and amortization			54			28			148			111
Gross margin			15,428			(26,969)			111,010			96,785
Add:
Operation and maintenance (1)			10,281			4,588			23,709			33,263
Depreciation and amortization			54			28			148			111
Unrealized loss (gain) on derivative instruments and related transactions			1,671			45,011			(60,000)			58,362
Effects of economic hedging related to natural gas inventory			(5,221)			(30,150)			19,939			(42,405)
Financial margin		$	22,213		$	(7,492)		$	94,806		$	146,116
(1) Excludes selling, general and administrative expenses of $14.3 million and $5.2 million for the three months ended September 30, 2022 and 2021, respectively, and approximately $15.4 million and $17.6 million for the fiscal year ended September 30, 2022 and 2021, respectively.
A reconciliation of net income (loss) to net financial (loss) earnings is as follows:
Net income (loss)		$	(564)		$	(24,731)		$	69,650		$	58,957
Add:
Unrealized loss (gain) on derivative instruments and related transactions			1,671			45,011			(60,000)			58,362
Tax effect			(397)			(10,700)			14,270			(13,875)
Effects of economic hedging related to natural gas			(5,221)			(30,150)			19,939			(42,405)
Tax effect			1,241			7,166			(4,738)			10,078
NFE tax adjustment			(113)			(980)			—			—
Net financial (loss) earnings		$	(3,383)		$	(14,384)		$	39,121		$	71,117

FINANCIAL STATISTICS BY BUSINESS UNIT
(Unaudited)
		Three Months Ended						Twelve Months Ended
		September 30,						September 30,
(Thousands, except per share data)			2022			2021			2022			2021
NEW JERSEY RESOURCES
Operating Revenues
Natural Gas Distribution		$	190,488		$	98,274		$	1,128,767		$	731,796
Clean Energy Ventures			92,475			69,048			128,280			95,275
Energy Services			439,568			334,780			1,529,272			1,228,420
Storage and Transportation			25,860			12,341			67,735			51,020
Home Services and Other			14,789			13,567			56,182			52,229
Sub-total			763,180			528,010			2,910,236			2,158,740
Eliminations			2,306			4,518			(4,257)			(2,127)
Total		$	765,486		$	532,528		$	2,905,979		$	2,156,613
Operating Income (Loss)
Natural Gas Distribution		$	(9,721)		$	(21,281)		$	218,973		$	148,993
Clean Energy Ventures			74,055			54,014			66,178			37,993
Energy Services			1,160			(32,186)			95,639			79,163
Storage and Transportation			12,867			595			22,163			10,659
Home Services and Other			(1,562)			(4,091)			678			4,033
Sub-total			76,799			(2,949)			403,631			280,841
Eliminations			4,107			6,067			2,844			7,509
Total		$	80,906		$	3,118		$	406,475		$	288,350
Equity in Earnings (Loss) of Affiliates
Storage and Transportation		$	2,279		$	964		$	9,865		$	(81,072)
Eliminations			(247)			(422)			(1,688)			(2,140)
Total		$	2,032		$	542		$	8,177		$	(83,212)
Net Income (Loss)
Natural Gas Distribution		$	(16,387)		$	(24,214)		$	140,124		$	107,375
Clean Energy Ventures			57,813			40,861			39,403			16,789
Energy Services			(564)			(24,731)			69,650			58,957
Storage and Transportation			12,467			1,673			26,598			(67,787)
Home Services and Other			(1,894)			(1,127)			(781)			(826)
Sub-total			51,435			(7,538)			274,994			114,508
Eliminations			3,087			6,405			(72)			3,382
Total		$	54,522		$	(1,133)		$	274,922		$	117,890
Net Financial Earnings (Loss)
Natural Gas Distribution		$	(16,387)		$	(24,214)		$	140,124		$	107,375
Clean Energy Ventures			57,813			40,861			39,403			16,789
Energy Services			(3,383)			(14,384)			39,121			71,117
Storage and Transportation			11,341			2,440			22,454			13,046
Home Services and Other			(1,894)			(1,127)			(781)			(826)
Sub-total			47,490			3,576			240,321			207,501
Eliminations			406			3,023			—			211
Total		$	47,896		$	6,599		$	240,321		$	207,712
Throughput (Bcf)
NJNG, Core Customers			21.0			17.8			99.6			91.4
NJNG, Off System/Capacity Management			25.8			26.9			95.2			101.3
Energy Services Fuel Mgmt. and Wholesale Sales			50.2			89.5			231.1			382.0
Total			97.0			134.2			425.9			574.7
Common Stock Data
Yield at September 30,			4.0 %			4.2 %			4.0 %			4.2 %
Market Price at September 30,		$	38.70		$	34.81		$	38.70		$	34.81
Shares Out. at September 30,			96,250			95,710			96,250			95,710
Market Cap. at September 30,		$	3,724,870		$	3,331,653		$	3,724,870		$	3,331,653

		Three Months Ended													Twelve Months Ended
(Unaudited)		September 30,													September 30,
(Thousands, except customer and weather data)					2022						2021								2022				2021
NATURAL GAS DISTRIBUTION
Utility Gross Margin
Operating revenues		$			190,488				$		98,274				$				1,128,767			$	731,796
Less:
Natural gas purchases					114,791						38,842								557,232				260,714
Operating and maintenance (1)					30,805						26,156								93,164				110,364
Regulatory rider expense					3,496						3,734								59,437				38,304
Depreciation and amortization					24,391						21,507								94,579				80,045
Gross margin					17,005						8,035								324,355				242,369
Add:
Operating and maintenance (1)					30,805						26,156								93,164				110,364
Depreciation and amortization					24,391						21,507								94,579				80,045
Total Utility Gross Margin		$			72,201				$		55,698				$				512,098			$	432,778
(1) Excludes selling, general and administrative expenses of $26.7 million and $29.3 million for the three months ended September 30, 2022 and 2021, respectively, and approximately $102.8 million and $97.0 million for the fiscal year ended September 30, 2022 and 2021, respectively
Utility Gross Margin, Operating Income and Net Income
Residential		$			37,451				$		29,947				$				341,167			$	288,723
Commercial, Industrial & Other					13,020						10,578								77,629				64,950
Firm Transportation					12,832						10,518								69,933				61,870
Total Firm Margin					63,303						51,043								488,729				415,543
Interruptible					1,362						1,192								3,782				3,820
Total System Margin					64,665						52,235								492,511				419,363
Off System/Capacity Management/FRM/Storage Incentive					7,536						3,463								19,587				13,415
Total Utility Gross Margin					72,201						55,698								512,098				432,778
Operation and maintenance expense					57,531						55,472								198,546				203,740
Depreciation and amortization					24,391						21,507								94,579				80,045
Operating (Loss) Income		$			(9,721)				$		(21,281)				$				218,973			$	148,993
Net (Loss) Income		$			(16,387)				$		(24,214)				$				140,124			$	107,375
Net Financial (Loss) Earnings		$			(16,387)				$		(24,214)				$				140,124			$	107,375
Throughput (Bcf)
Residential					3.2						3.3								45.5				46.2
Commercial, Industrial & Other					0.8						0.7								8.7				8.6
Firm Transportation					1.5						1.6								13.0				13.7
Total Firm Throughput					5.5						5.6								67.2				68.5
Interruptible					15.5						12.2								32.4				22.9
Total System Throughput					21.0						17.8								99.6				91.4
Off System/Capacity Management					25.8						26.9								95.2				101.3
Total Throughput					46.8						44.7								194.8				192.7
Customers
Residential					512,264						502,546								512,264				502,546
Commercial, Industrial & Other					31,227						30,615								31,227				30,615
Firm Transportation					25,713						30,697								25,713				30,697
Total Firm Customers					569,204						563,858								569,204				563,858
Interruptible					88						27								88				27
Total System Customers					569,292						563,885								569,292				563,885
Off System/Capacity Management*					8						20								8				20
Total Customers					569,300						563,905								569,300				563,905
*The number of customers represents those active during the last month of the period.
Degree Days
Actual					33						8								4,130				4,247
Normal					27						29								4,504				4,541
Percent of Normal					122.2 %						27.6 %								91.7 %				93.5 %
				Three Months Ended												Twelve Months Ended
(Unaudited)				September 30,												September 30,
(Thousands, except customer, SREC, TREC and megawatt)							2022						2021				2022						2021
CLEAN ENERGY VENTURES
Operating Revenues
SREC sales				$			76,637			$			58,898			$	84,476				$		65,434
TREC sales							1,913						1,496				5,487						4,571
Solar electricity sales and other							10,967						5,878				26,806						14,491
Sunlight Advantage							2,958						2,776				11,511						10,779
Total Operating Revenues				$			92,475			$			69,048			$	128,280				$		95,275
Depreciation and Amortization				$			5,494			$			5,249			$	21,396				$		20,567
Operating Income				$			74,055			$			54,014			$	66,178				$		37,993
Income Tax Provision				$			16,885			$			12,296			$	11,361				$		5,048
Net Income				$			57,813			$			40,861			$	39,403				$		16,789
Net Financial Earnings				$			57,813			$			40,861			$	39,403				$		16,789
Solar Renewable Energy Certificates Generated							146,772						130,847				425,453						406,118
Solar Renewable Energy Certificates Sold							378,532						300,530				417,305						333,025
Transition Renewable Energy Certificates Generated							13,443						10,561				38,914						31,767
Solar Megawatts Under Construction							63.1						59.3				63.1						59.3
ENERGY SERVICES
Operating Income
Operating revenues				$			439,568			$			334,780			$	1,529,272				$		1,228,420
Less:
Gas purchases							413,805						357,133				1,394,405						1,098,261
Operation and maintenance expense							24,549						9,805				39,080						50,885
Depreciation and amortization							54						28				148						111
Total Operating Income (Loss)				$			1,160			$			(32,186)			$	95,639				$		79,163
Net Income (Loss)				$			(564)			$			(24,731)			$	69,650				$		58,957
Financial Margin				$			22,213			$			(7,492)			$	94,806				$		146,116
Net Financial (Loss) Earnings				$			(3,383)			$			(14,384)			$	39,121				$		71,117
Gas Sold and Managed (Bcf)							50.2						89.5				231.1						382.0
STORAGE AND TRANSPORTATION
Operating Revenues				$			25,860			$			12,341			$	67,735				$		51,020
Equity in Earnings (Loss) of Affiliates				$			2,279			$			964			$	9,865				$		(81,072)
Operation and Maintenance Expense				$			8,044			$			8,765			$	30,568				$		29,135
Other Income, Net				$			1,405			$			1,796			$	8,546				$		5,931
Interest Expense				$			4,937			$			2,851			$	12,097				$		13,348
Income Tax Provision (Benefit)				$			(853)			$			(1,169)			$	1,879				$		(10,043)
Net Income (Loss)				$			12,467			$			1,673			$	26,598				$		(67,787)
Net Financial Earnings				$			11,341			$			2,440			$	22,454				$		13,046
HOME SERVICES AND OTHER
Operating Revenues				$			14,789			$			13,567			$	56,182				$		52,229
Operating (Loss) Income				$			(1,562)			$			(4,091)			$	678				$		4,033
Net (Loss)				$			(1,894)			$			(1,127)			$	(781)				$		(826)
Net Financial (Loss)				$			(1,894)			$			(1,127)			$	(781)				$		(826)
Total Service Contract Customers at Sept 30							103,123						105,720				103,123						105,720

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221116005672/en/

Media:

Mike Kinney

732-938-1031

mkinney@njresources.com



Investor:

Adam Prior

732-938-1145

aprior@njresources.com

Source: New Jersey Resources Corporation

FAQ

What were New Jersey Resources' earnings results for fiscal 2022?

New Jersey Resources reported a consolidated net income of $274.9 million for fiscal 2022, with net financial earnings of $240.3 million, or $2.50 per share.

What is the dividend increase for New Jersey Resources in 2023?

The dividend was increased by 7.6% to $1.56 per share for fiscal 2023.

What is the fiscal 2023 earnings guidance for NJR?

NJR introduced a net financial earnings per share guidance range of $2.42 to $2.52 for fiscal 2023.

What are the long-term growth projections for New Jersey Resources?

NJR maintains a long-term projected growth rate of 7 to 9 percent.