New Jersey Resources Reports Fiscal 2023 Third-Quarter Results

Rhea-AI Summary

NJR: Reports Q3 Fiscal 2023 Results, Consolidated net income of $1.5 million, Re-affirms fiscal 2023 net financial earnings per share (NFEPS) guidance range of $2.62 to $2.72.

Positive

• NJR reported a consolidated net income of $1.5 million, a decrease from $13.1 million in Q3 of fiscal 2022
• The net financial earnings (NFE) for Q3 fiscal 2023 was reported at $9.7 million, compared to a net financial loss of $(3.6) million in the same period of fiscal 2022
• The company has re-affirmed its fiscal 2023 net financial earnings per share (NFEPS) guidance range of $2.62 to $2.72, indicating a positive outlook for the company's performance

Negative

• None.

WALL, N.J.--(BUSINESS WIRE)-- Today, New Jersey Resources Corporation (NYSE: NJR) reported results for the third quarter of fiscal 2023. Highlights include:

• Consolidated net income of $1.5 million, compared with net income of $13.1 million in the third quarter of fiscal 2022
• Consolidated net financial earnings (NFE), a non-GAAP financial measure, of $9.7 million, or $0.10 per share, compared to a net financial loss of $(3.6) million, or $(0.04) per share, in the third quarter of fiscal 2022
• Re-affirmed fiscal 2023 net financial earnings per share (NFEPS) guidance range of $2.62 to $2.72
• Maintains long-term projected NFEPS growth rate of 7 to 9 percent⁽¹⁾

Third-quarter fiscal 2023 net income totaled $1.5 million, or $0.02 per share, compared with net income of $13.1 million, or $0.14 per share, during the same period in fiscal 2022. Fiscal 2023 year-to-date net income totaled $227.7 million, or $2.35 per share, compared with $220.4 million, or $2.29 per share, for the same period in fiscal 2022.

Third-quarter fiscal 2023 NFE totaled $9.7 million, or $0.10 per share, compared to a net financial loss of $(3.6) million, or $(0.04) per share, during the same period in fiscal 2022. Fiscal 2023 year-to-date NFE totaled $232.3 million, or $2.40 per share, compared with $192.4 million, or $2.00 per share, for the same period in fiscal 2022.

Steve Westhoven, President and CEO, stated, "We are on track to achieve net financial earnings within our fiscal 2023 guidance range, which was increased by $0.20 earlier this year, reflecting the strength of our diversified business model. We have continued our momentum at CEV, increasing our in-service capacity and growing our pipeline, with fiscal 2023 representing the largest year of capacity growth in CEV's history."

Key Performance Metrics

	Three Months Ended							Nine Months Ended
	June 30,							June 30,
($ in Thousands)	2023			2022				2023			2022
Net income	$	1,532		$	13,053			$	227,700		$	220,400
Basic EPS	$	0.02		$	0.14			$	2.35		$	2.29
Net financial earnings (loss)	$	9,670		$	(3,551	)		$	232,264		$	192,425
Basic net financial earnings (loss) per share	$	0.10		$	(0.04	)		$	2.40		$	2.00
(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 nine months ended June 30, 2023 and 2022, is provided below.

	Three Months Ended								Nine Months Ended
	June 30,								June 30,
(Thousands)	2023				2022				2023				2022
Net income	$	1,532			$	13,053			$	227,700			$	220,400
Add:
Unrealized gain on derivative instruments and related transactions		(12,970	)			(17,891	)			(30,502	)			(58,060	)
Tax effect		3,083				4,253				7,250				13,809
Effects of economic hedging related to natural gas inventory		24,116				428				36,885				25,160
Tax effect		(5,731	)			(102	)			(8,766	)			(5,979	)
Gain on equity method investment		(100	)			(4,021	)			(300	)			(4,021	)
Tax effect		24				1,003				74				1,003
NFE tax adjustment		(284	)			(274	)			(77	)			113
Net financial earnings (loss)	$	9,670			$	(3,551	)		$	232,264			$	192,425
Weighted Average Shares Outstanding
Basic		97,168				96,154				96,849				96,055
Diluted		97,886				96,620				97,538				96,527
Basic earnings per share	$	0.02			$	0.14			$	2.35			$	2.29
Add:
Unrealized gain on derivative instruments and related transactions		(0.14	)			(0.19	)			(0.31	)			(0.60	)
Tax effect		0.03				0.04				0.07				0.14
Effects of economic hedging related to natural gas inventory		0.25				—				0.38				0.26
Tax effect		(0.06	)			—				(0.09	)			(0.06	)
Gain on equity method investment		—				(0.04	)			—				(0.04	)
Tax effect		—				0.01				—				0.01
Basic net financial earnings (loss) per share	$	0.10			$	(0.04	)		$	2.40			$	2.00

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 nine months ended June 30, 2023 and 2022, is provided below.

Net financial earnings (loss) by Business Unit

	Three Months Ended								Nine Months Ended
	June 30,								June 30,
(Thousands)	2023				2022				2023				2022
New Jersey Natural Gas	$	891			$	2,648			$	156,252			$	156,511
Clean Energy Ventures		7,267				(5,098	)			(5,694	)			(18,410	)
Storage and Transportation		2,358				3,526				11,051				11,113
Energy Services		(1,604	)			(5,003	)			72,054				42,504
Home Services and Other		523				215				1,307				1,113
Subtotal		9,435				(3,712	)			234,970				192,831
Eliminations		235				161				(2,706	)			(406	)
Total	$	9,670			$	(3,551	)		$	232,264			$	192,425

Fiscal 2023 NFE Guidance:

NJR re-affirmed its fiscal 2023 NFE guidance range of $2.62 to $2.72, which was increased by $0.20 per share in the first quarter of fiscal 2023, 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	48 to 53 percent
Clean Energy Ventures	18 to 20 percent
Storage and Transportation	4 to 8 percent
Energy Services	20 to 25 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 third-quarter fiscal 2023 NFE of $0.9 million, compared to NFE of $2.6 million during the same period in fiscal 2022. The decrease in NFE for the quarter was due primarily to higher depreciation and operating expenses, partially offset by higher utility gross margin. Fiscal 2023 year-to-date NFE were $156.3 million, which was flat compared to NFE of $156.5 million during the same period in fiscal 2022.

Customer Growth:

• NJNG added 5,892 new customers during the first nine months of fiscal 2023, compared with 5,274 during the same period in fiscal 2022. NJNG expects these new customers to contribute approximately $5.0 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 the first nine months of fiscal 2023, NJNG has spent $33.5 million under the program on various distribution system reinforcement projects. On March 30, 2023, NJNG submitted its annual IIP filing to the BPU requesting a rate increase for capital expenditures of $31.4 million through June 30, 2023, resulting in a $3.2 million revenue increase, with a proposed effective date of October 1, 2023.

Basic Gas Supply Service (BGSS) Incentive Programs:

BGSS incentive programs contributed $2.9 million to utility gross margin in the third quarter of fiscal 2023, compared with $1.9 million during the same period in fiscal 2022. Fiscal 2023 year-to-date, these programs contributed $17.4 million to utility gross margin, compared with $12.1 million during the same period in fiscal 2022. The increase in NFE for the fiscal 2023 quarter and year-to-date period was due primarily to an increase in storage incentive margin.

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

Energy-Efficiency Programs:

SAVEGREEN invested $39.7 million during the first nine months of fiscal 2023 in energy-efficiency upgrades for customers' homes and businesses. NJNG recovered $15.9 million of its outstanding investments during the first nine months of fiscal 2023 through its energy efficiency rate.

Clean Energy Ventures (CEV)

CEV reported third-quarter fiscal 2023 net financial earnings of $7.3 million, compared with net financial loss of $(5.1) million during the same period in fiscal 2022. Fiscal 2023 year-to-date net financial loss was $(5.7) million, compared with net financial loss of $(18.4) million during the same period in fiscal 2022. The increase in NFE for the quarter was due primarily to a reversal of a valuation allowance on certain deferred tax assets during June 2023, which was determined to be no longer required. The increase in fiscal 2023 year-to-date NFE was due to the aforementioned reversal.

Solar Investment Update:

• During the first nine months of fiscal 2023, CEV placed 6 commercial projects into service, adding approximately 51 MW to total installed capacity.
• As of June 30, 2023, CEV had approximately 441MW of solar capacity (including residential) in service in New Jersey, Rhode Island, New York and Connecticut.
• Subsequent to quarter end, CEV acquired two operational assets, adding approximately 21MW of installed capacity for a total of approximately 462MW (including residential) currently in service.

Storage and Transportation

Storage and Transportation reported third-quarter fiscal 2023 NFE of $2.4 million, compared with NFE of $3.5 million during the same period in fiscal 2022. Fiscal 2023 year-to-date NFE were $11.1 million, compared with NFE of $11.1 million during the same period in fiscal 2022. NFE for both periods decreased due to increased depreciation and interest expenses; partially offset by increased revenue.

Energy Services

Energy Services reported third-quarter fiscal 2023 net financial loss of $(1.6) million compared with net financial loss of $(5.0) million for the same period in fiscal 2022. Fiscal 2023 year-to-date NFE were $72.1 million, compared with NFE of $42.5 million during the same period in fiscal 2022. The improvement in NFE for the third quarter compared to the prior year period was due to higher financial margin and lower operating expenses. The increase in fiscal 2023 year-to-date NFE were due to higher natural gas price volatility during periods of colder than expected weather in December 2022 and February 2023, allowing Energy Services to capture additional margin.

Home Services and Other Operations

Home Services and Other Operations reported third-quarter fiscal 2023 NFE of $0.5 million compared with NFE of $0.2 million for the same period in fiscal 2022. Fiscal 2023 year-to-date NFE were $1.3 million, compared with NFE of $1.1 million during the same period in fiscal 2022. The increase in NFE for the quarter and year-to-date period was due primarily to increased installation and service contract revenue.

Capital Expenditures and Cash Flows:

NJR is committed to maintaining a strong financial profile:

• During the first nine months of fiscal 2023, capital expenditures were $370.0 million, including accruals, of which $274.9 million were related to NJNG, compared with $419.4 million, of which $194.8 million were related to NJNG, during the same period in fiscal 2022. The decrease in capital expenditures was primarily due to the completion of the Adelphia Gateway Pipeline project, which was placed into service in September 2022.

• During the first nine months of fiscal 2023, cash flows from operations were $387.9 million, compared with cash flows from operations of $235.9 million during the same period of fiscal 2022. The increase in operating cash flows was due to increased earnings and decreased working capital requirements as a result of a decline in gas prices during the period.

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, projected NFEPS growth rates, forecasted contribution of business segments to NJR’s NFE for fiscal 2023, customer growth at NJNG and their expected contributions, infrastructure programs and investments future decarbonization opportunities including IIP, the outcome or timing of future Base Rate Cases with the BPU, 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 574,900 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 approximately 441 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, 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 1,300 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							Nine Months Ended
		June 30,							June 30,
(Thousands, except per share data)		2023				2022			2023			2022
OPERATING REVENUES
Utility		$	144,971			$	199,357		$	902,880		$	937,266
Nonutility			119,104				352,978			728,789			1,203,227
Total operating revenues			264,075				552,335			1,631,669			2,140,493
OPERATING EXPENSES
Gas purchases
Utility			42,344				100,277			381,160			435,438
Nonutility			75,917				290,806			468,351			980,135
Related parties			1,870				1,838			5,467			5,567
Operation and maintenance			94,213				88,373			272,809			243,143
Regulatory rider expenses			6,120				8,360			47,525			55,941
Depreciation and amortization			38,877				32,872			113,650			94,700
Total operating expenses			259,341				522,526			1,288,962			1,814,924
OPERATING INCOME			4,734				29,809			342,707			325,569
Other income, net			5,711				4,288			15,145			12,551
Interest expense, net of capitalized interest			30,119				21,411			89,871			59,814
(LOSS) INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES			(19,674	)			12,686			267,981			278,306
Income tax (benefit) provision			(20,505	)			4,434			43,059			64,051
Equity in earnings of affiliates			701				4,801			2,778			6,145
NET INCOME		$	1,532			$	13,053		$	227,700		$	220,400
EARNINGS PER COMMON SHARE
Basic		$	0.02			$	0.14		$	2.35		$	2.29
Diluted		$	0.02			$	0.14		$	2.33		$	2.28
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic			97,168				96,154			96,849			96,055
Diluted			97,886				96,620			97,538			96,527

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES
(Unaudited)
		Three Months Ended								Nine Months Ended
		June 30,								June 30,
(Thousands)		2023				2022				2023				2022
NEW JERSEY RESOURCES
A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:
Net income		$	1,532			$	13,053			$	227,700			$	220,400
Add:
Unrealized gain on derivative instruments and related transactions			(12,970	)			(17,891	)			(30,502	)			(58,060	)
Tax effect			3,083				4,253				7,250				13,809
Effects of economic hedging related to natural gas inventory			24,116				428				36,885				25,160
Tax effect			(5,731	)			(102	)			(8,766	)			(5,979	)
Gain on equity method investment			(100	)			(4,021	)			(300	)			(4,021	)
Tax effect			24				1,003				74				1,003
NFE tax adjustment			(284	)			(274	)			(77	)			113
Net financial earnings (loss)		$	9,670			$	(3,551	)		$	232,264			$	192,425
Weighted Average Shares Outstanding
Basic			97,168				96,154				96,849				96,055
Diluted			97,886				96,620				97,538				96,527
A reconciliation of basic earnings per share, the closest GAAP financial measure, to basic net financial earnings per share is as follows:
Basic earnings per share		$	0.02			$	0.14			$	2.35			$	2.29
Add:
Unrealized gain on derivative instruments and related transactions		$	(0.14	)		$	(0.19	)		$	(0.31	)		$	(0.60	)
Tax effect		$	0.03			$	0.04			$	0.07			$	0.14
Effects of economic hedging related to natural gas inventory		$	0.25			$	—			$	0.38			$	0.26
Tax effect		$	(0.06	)		$	—			$	(0.09	)		$	(0.06	)
Gain on equity method investment		$	—			$	(0.04	)		$	—			$	(0.04	)
Tax effect		$	—			$	0.01			$	—			$	0.01
Basic net financial earnings (loss) per share		$	0.10			$	(0.04	)		$	2.40			$	2.00
NATURAL GAS DISTRIBUTION
A reconciliation of gross margin, the closest GAAP financial measure, to utility gross margin is as follows:
Operating revenues		$	145,308			$	199,695			$	903,892			$	938,279
Less:
Natural gas purchases			44,669				102,624				388,134				442,441
Operating and maintenance (1)			31,436				25,034				88,441				64,924
Regulatory rider expense			6,120				8,360				47,525				55,941
Depreciation and amortization			25,825				23,951				76,034				70,188
Gross margin			37,258				39,726				303,758				304,785
Add:
Operating and maintenance (1)			31,436				25,034				88,441				64,924
Depreciation and amortization			25,825				23,951				76,034				70,188
Utility gross margin		$	94,519			$	88,711			$	468,233			$	439,897
(1) Excludes selling, general and administrative expenses of $26.9 million and $26.5 million for the three months ended June 30, 2023 and 2022, respectively, and $78.1 million and $76.1 million for the nine months ended June 30, 2023 and 2022, respectively.
RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (continued)
(Unaudited)
		Three Months Ended								Nine Months Ended
(Unaudited)		June 30,								June 30,
(Thousands)		2023				2022				2023				2022
ENERGY SERVICES
A reconciliation of gross margin, the closest GAAP financial measure, to Energy Services' financial margin is as follows:
Operating revenues		$	70,172			$	307,815			$	588,684			$	1,089,704
Less:
Natural Gas purchases			76,599				290,767				471,000				980,600
Operation and maintenance (1)			3,244				5,617				14,366				12,864
Depreciation and amortization			51				34				170				94
Gross margin			(9,722	)			11,397				103,148				96,146
Add:
Operation and maintenance (1)			3,244				5,617				14,366				12,864
Depreciation and amortization			51				34				170				94
Unrealized gain on derivative instruments and related transactions			(13,601	)			(16,470	)			(39,692	)			(61,671	)
Effects of economic hedging related to natural gas inventory			24,116				428				36,885				25,160
Financial margin		$	4,088			$	1,006			$	114,877			$	72,593
(1) Excludes selling, general and administrative expenses of $0.5 million and $0.6 million for the three months ended June 30, 2023 and 2022, respectively, and $(1.2) million and $1.7 million for the nine months ended June 30, 2023 and 2022, respectively.
A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:
Net (loss) income		$	(9,336	)		$	7,501			$	74,271			$	70,214
Add:
Unrealized gain on derivative instruments and related transactions			(13,601	)			(16,470	)			(39,692	)			(61,671	)
Tax effect			3,232				3,914				9,433				14,667
Effects of economic hedging related to natural gas			24,116				428				36,885				25,160
Tax effect			(5,731	)			(102	)			(8,766	)			(5,979	)
NFE tax adjustment			(284	)			(274	)			(77	)			113
Net financial (loss) earnings		$	(1,604	)		$	(5,003	)		$	72,054			$	42,504

FINANCIAL STATISTICS BY BUSINESS UNIT
(Unaudited)
		Three Months Ended								Nine Months Ended
		June 30,								June 30,
(Thousands, except per share data)		2023				2022				2023				2022
NEW JERSEY RESOURCES
Operating Revenues
Natural Gas Distribution		$	145,308			$	199,695			$	903,892			$	938,279
Clean Energy Ventures			13,178				13,795				40,376				35,805
Energy Services			70,172				307,815				588,684				1,089,704
Storage and Transportation			22,201				16,390				69,926				41,875
Home Services and Other			14,955				14,220				42,669				41,393
Sub-total			265,814				551,915				1,645,547				2,147,056
Eliminations			(1,739	)			420				(13,878	)			(6,563	)
Total		$	264,075			$	552,335			$	1,631,669			$	2,140,493
Operating Income (Loss)
Natural Gas Distribution		$	10,391			$	13,200			$	225,700			$	228,694
Clean Energy Ventures			(3,344	)			(1,209	)			(8,667	)			(7,877	)
Energy Services			(10,177	)			10,833				104,370				94,479
Storage and Transportation			7,207				4,240				26,524				9,296
Home Services and Other			712				477				1,900				2,240
Sub-total			4,789				27,541				349,827				326,832
Eliminations			(55	)			2,268				(7,120	)			(1,263	)
Total		$	4,734			$	29,809			$	342,707			$	325,569
Equity in Earnings of Affiliates
Storage and Transportation		$	377			$	5,274			$	2,263			$	7,586
Eliminations			324				(473	)			515				(1,441	)
Total		$	701			$	4,801			$	2,778			$	6,145
Net Income (Loss)
Natural Gas Distribution		$	891			$	2,648			$	156,252			$	156,511
Clean Energy Ventures			7,267				(5,098	)			(5,694	)			(18,410	)
Energy Services			(9,336	)			7,501				74,271				70,214
Storage and Transportation			2,434				6,544				11,277				14,131
Home Services and Other			523				215				1,307				1,113
Sub-total			1,779				11,810				237,413				223,559
Eliminations			(247	)			1,243				(9,713	)			(3,159	)
Total		$	1,532			$	13,053			$	227,700			$	220,400
Net Financial Earnings (Loss)
Natural Gas Distribution		$	891			$	2,648			$	156,252			$	156,511
Clean Energy Ventures			7,267				(5,098	)			(5,694	)			(18,410	)
Energy Services			(1,604	)			(5,003	)			72,054				42,504
Storage and Transportation			2,358				3,526				11,051				11,113
Home Services and Other			523				215				1,307				1,113
Sub-total			9,435				(3,712	)			234,970				192,831
Eliminations			235				161				(2,706	)			(406	)
Total		$	9,670			$	(3,551	)		$	232,264			$	192,425
Throughput (Bcf)
NJNG, Core Customers			19.5				20.0				75.3				78.6
NJNG, Off System/Capacity Management			13.8				20.3				52.4				69.4
Energy Services Fuel Mgmt. and Wholesale Sales			24.0				40.7				109.0				180.9
Total			57.3				81.0				236.7				328.9
Common Stock Data
Yield at June 30,			3.3	%			3.3	%			3.3	%			3.3	%
Market Price at June 30,		$	47.20			$	44.53			$	47.20			$	44.53
Shares Out. at June 30,			97,496				96,160				97,496				96,160
Market Cap. at June 30,		$	4,601,825			$	4,282,015			$	4,601,825			$	4,282,015

		Three Months Ended								Nine Months Ended
(Unaudited)		June 30,								June 30,
(Thousands, except customer and weather data)		2023				2022				2023				2022
NATURAL GAS DISTRIBUTION
Utility Gross Margin
Operating revenues		$	145,308			$	199,695			$	903,892			$	938,279
Less:
Natural gas purchases			44,669				102,624				388,134				442,441
Operating and maintenance (1)			31,436				25,034				88,441				64,924
Regulatory rider expense			6,120				8,360				47,525				55,941
Depreciation and amortization			25,825				23,951				76,034				70,188
Gross margin			37,258				39,726				303,758				304,785
Add:
Operating and maintenance (1)			31,436				25,034				88,441				64,924
Depreciation and amortization			25,825				23,951				76,034				70,188
Total Utility Gross Margin		$	94,519			$	88,711			$	468,233			$	439,897
(1) Excludes selling, general and administrative expenses of $26.9 million and $26.5 million for the three months ended June 30, 2023 and 2022, respectively, and $78.1 million and $76.1 million for the nine months ended June 30, 2023 and 2022, respectively.
Utility Gross Margin, Operating Income and Net Income
Residential		$	59,723			$	55,597			$	321,017			$	303,716
Commercial, Industrial & Other			14,897				15,387				65,742				64,609
Firm Transportation			15,815				14,729				61,503				57,101
Total Firm Margin			90,435				85,713				448,262				425,426
Interruptible			1,149				1,060				2,572				2,420
Total System Margin			91,584				86,773				450,834				427,846
Off System/Capacity Management/FRM/Storage Incentive			2,935				1,938				17,399				12,051
Total Utility Gross Margin			94,519				88,711				468,233				439,897
Operation and maintenance expense			58,303				51,560				166,499				141,015
Depreciation and amortization			25,825				23,951				76,034				70,188
Operating Income		$	10,391			$	13,200			$	225,700			$	228,694
Net Income		$	891			$	2,648			$	156,252			$	156,511
Net Financial Earnings		$	891			$	2,648			$	156,252			$	156,511
Throughput (Bcf)
Residential			5.7				6.7				39.9				42.3
Commercial, Industrial & Other			1.2				1.3				7.7				7.9
Firm Transportation			2.2				2.3				10.7				11.5
Total Firm Throughput			9.1				10.3				58.3				61.7
Interruptible			10.4				9.7				17.0				16.9
Total System Throughput			19.5				20.0				75.3				78.6
Off System/Capacity Management			13.8				20.3				52.4				69.4
Total Throughput			33.3				40.3				127.7				148.0
Customers
Residential			518,359				510,931				518,359				510,931
Commercial, Industrial & Other			32,084				31,469				32,084				31,469
Firm Transportation			24,360				26,152				24,360				26,152
Total Firm Customers			574,803				568,552				574,803				568,552
Interruptible			83				29				83				29
Total System Customers			574,886				568,581				574,886				568,581
Off System/Capacity Management*			14				19				14				19
Total Customers			574,900				568,600				574,900				568,600
*The number of customers represents those active during the last month of the period.
Degree Days
Actual			389				452				3,869				4,097
Normal			470				483				4,474				4,477
Percent of Normal			82.8	%			93.6	%			86.5	%			91.5	%

		Three Months Ended								Nine Months Ended
(Unaudited)		June 30,								June 30,
(Thousands, except customer, RECs and megawatt)		2023				2022				2023				2022
CLEAN ENERGY VENTURES
Operating Revenues
SREC sales		$	184			$	1,010			$	10,307			$	7,839
TREC sales			4,720				1,709				8,007				3,574
Solar electricity sales and other			5,243				8,128				13,174				15,839
Sunlight Advantage			3,031				2,948				8,888				8,553
Total Operating Revenues		$	13,178			$	13,795			$	40,376			$	35,805
Depreciation and Amortization		$	6,672			$	5,358			$	18,713			$	15,902
Operating Loss		$	(3,344	)		$	(1,209	)		$	(8,667	)		$	(7,877	)
Income Tax Benefit		$	(18,237	)		$	(1,526	)		$	(23,079	)		$	(5,524	)
Net Income (Loss)		$	7,267			$	(5,098	)		$	(5,694	)		$	(18,410	)
Net Financial Earnings (Loss)		$	7,267			$	(5,098	)		$	(5,694	)		$	(18,410	)
Solar Renewable Energy Certificates Generated			130,978				120,779				292,753				278,681
Solar Renewable Energy Certificates Sold			1,314				6,573				48,871				38,773
Transition Renewable Energy Certificates Generated			31,144				12,210				52,013				25,471
Solar Renewable Energy Certificates II Generated			2,973				—				5,803				—
Solar Megawatts Under Construction			13.8				75.5				13.8				75.5
ENERGY SERVICES
Operating Income
Operating revenues		$	70,172			$	307,815			$	588,684			$	1,089,704
Less:
Gas purchases			76,599				290,767				471,000				980,600
Operation and maintenance expense			3,699				6,181				13,144				14,531
Depreciation and amortization			51				34				170				94
Operating (Loss) Income		$	(10,177	)		$	10,833			$	104,370			$	94,479
Net (Loss) Income		$	(9,336	)		$	7,501			$	74,271			$	70,214
Financial Margin		$	4,088			$	1,006			$	114,877			$	72,593
Net Financial (Loss) Earnings		$	(1,604	)		$	(5,003	)		$	72,054			$	42,504
Gas Sold and Managed (Bcf)			24.0				40.7				109.0				180.9
STORAGE AND TRANSPORTATION
Operating Revenues		$	22,201			$	16,390			$	69,926			$	41,875
Equity in Earnings of Affiliates		$	377			$	5,274			$	2,263			$	7,586
Operation and Maintenance Expense		$	8,687			$	7,840			$	23,951			$	22,524
Other Income, Net		$	1,815			$	1,882			$	4,829			$	7,141
Interest Expense		$	6,430			$	3,177			$	19,265			$	7,160
Income Tax Provision		$	535			$	1,675			$	3,074			$	2,732
Net Income		$	2,434			$	6,544			$	11,277			$	14,131
Net Financial Earnings		$	2,358			$	3,526			$	11,051			$	11,113
HOME SERVICES AND OTHER
Operating Revenues		$	14,955			$	14,220			$	42,669			$	41,393
Operating Income		$	712			$	477			$	1,900			$	2,240
Net Income		$	523			$	215			$	1,307			$	1,113
Net Financial Earnings		$	523			$	215			$	1,307			$	1,113
Total Service Contract Customers at Jun 30			101,748				105,022				101,748				105,022

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230802209783/en/

Media Contact:

Mike Kinney

732-938-1031

mkinney@njresources.com

Investor Contact:

Adam Prior

732-938-1145

aprior@njresources.com

Source: New Jersey Resources Corporation

FAQ

What are the key highlights of NJR's Q3 fiscal 2023 results?

NJR reported a consolidated net income of $1.5 million and a net financial earnings (NFE) of $9.7 million.

What is NJR's fiscal 2023 net financial earnings per share (NFEPS) guidance range?

The company has re-affirmed its fiscal 2023 net financial earnings per share (NFEPS) guidance range of $2.62 to $2.72.

How does NJR's Q3 fiscal 2023 net income compare to the same period in fiscal 2022?

NJR's Q3 fiscal 2023 net income totaled $1.5 million, a decrease from $13.1 million in the same period of fiscal 2022.