New Jersey Resources Reports Fourth-Quarter and Fiscal 2021 Results

Rhea-AI Summary

New Jersey Resources Corporation (NJR) reported a net income of $117.9 million for fiscal 2021, down from $163.0 million in 2020. However, net financial earnings reached $207.7 million, or $2.16 per share, compared to $165.3 million, or $1.74 per share, from the prior year.

The company affirmed its fiscal 2022 earnings guidance of $2.20 to $2.30 per share and narrowed its long-term growth rate to 7-9%. NJR increased its annual dividend by 9% to $1.45 per share and received regulatory approval for a $79 million rate increase.

Positive

• Affirmed fiscal 2022 net financial earnings per share guidance of $2.20 to $2.30.
• Increased annual dividend by 9% to $1.45 per share.
• Narrowed long-term projected net financial earnings per share growth rate to 7-9%.

Negative

• Fourth-quarter net loss of $(1.1) million compared to income of $32.7 million in Q4 2020.
• 2021 net income decreased to $117.9 million from $163 million in 2020.
• Impairment of $92 million related to PennEast Project investment.

Affirms Fiscal 2022 Guidance and Updates Long-Term Projected Growth Rate

WALL, N.J.--(BUSINESS WIRE)-- Today, New Jersey Resources Corporation (NYSE: NJR) reported results for the fourth-quarter and fiscal 2021. Highlights include:

• Consolidated net income of $117.9 million for fiscal 2021 compared with $163.0 million in fiscal 2020
• Consolidated net financial earnings (NFE), a non-GAAP financial measure of $207.7 million for fiscal 2021, or $2.16 per share, compared with NFE of $165.3 million, or $1.74 per share, in fiscal 2020
• Affirmed fiscal 2022 net financial earnings per share (NFEPS) guidance range of $2.20 to $2.30 and narrowed long-term projected NFEPS growth rate to 7 to 9 percent, from previous range of 6 to 10 percent
• Increased annual dividend by nine percent to $1.45 per share
• New Jersey Natural Gas (NJNG) received approval from the BPU on the settlement of its rate case authorizing a $79.0 million increase to its base rates
• The Southern Reliability Link (SRL) was placed in service in fiscal 2021
• NJNG's Hydrogen project was completed and began producing green hydrogen in October 2021

Fourth-quarter fiscal 2021 net (loss)/income totaled $(1.1) million, or $(0.01) per share, compared with $32.7 million, or $0.34 per share, during the same period in fiscal 2020. Fiscal 2021 net income totaled $117.9 million, or $1.23 per share, compared with $163.0 million, or $1.72 per share, for fiscal 2020.

Fourth-quarter fiscal 2021 NFE totaled $6.6 million, or $0.07 per share, compared to NFE of $43.4 million, or $0.45 per share, during the same period in fiscal 2020. Fiscal 2021 NFE totaled $207.7 million, or $2.16 per share, compared with $165.3 million, or $1.74 per share, for fiscal 2020. The difference between GAAP earnings and NFE is due primarily to a $92.0 million impairment ($74.5 million after considering the related tax effects) of NJR's investment in the PennEast Project, which is excluded from NFE.

"Fiscal 2021 results exceeded the expectations we laid out at our Analyst Day last November, " said Steve Westhoven, President and CEO of NJR. "Strong execution against our plan positions our diversified portfolio of infrastructure assets for long-term growth, creating value for shareowners and meeting the needs of our customers." 

Key Performance Metrics
	Three Months Ended									Twelve Months Ended
	September 30,									September 30,
($ in Thousands)	2021					2020				2021				2020
Net income	$	(1,133	)			$	32,707			$	117,890			$	163,007
Basic EPS	$	(0.01	)			$	0.34			$	1.23			$	1.72
Net financial earnings	$	6,599				$	43,429			$	207,712			$	165,333
Basic net financial earnings per share	$	0.07				$	0.45			$	2.16			$	1.74

Effective October 1, 2020, NJR changed its method of accounting for Investment Tax Credits (ITCs) from the flow through method to the deferral method. Our historical financial reporting presented herein has been retrospectively revised to apply this change. For additional details, please refer to our Form 10-K.

A reconciliation of net income to NFE for the three and twelve months ended September 30, 2021, and 2020, is provided below.

	Three Months Ended										Twelve Months Ended
	September 30, 2021										September 30,
(Thousands)	2021					2020					2021					2020
Net income	$	(1,133	)			$	32,707				$	117,890				$	163,007
Add:
Unrealized loss (gain) on derivative instruments and related transactions	40,576					12,183					54,203					(9,644		)
Tax effect	(9,647		)			(2,893		)			(12,887		)			2,296
Effects of economic hedging related to natural gas inventory	(30,150		)			2,216					(42,405		)			12,690
Tax effect	7,166					(527		)			10,078					(3,016		)
Impairment of equity method investment	—					—					92,000					—
Tax effect	767					—					(11,167		)			—
Net income to NFE tax adjustment	(980		)			(257		)			—					—
Net financial earnings (loss)	$	6,599				$	43,429				$	207,712				$	165,333
Weighted Average Shares Outstanding
Basic	96,198					95,764					96,227					94,798
Diluted	96,198					95,764					96,560					95,103
Basic earnings (loss) per share	$	(0.01	)			$	0.34				$	1.23				$	1.72
Add:
Unrealized loss (gain) on derivative instruments and related transactions	0.42					0.13					0.56					(0.10		)
Tax effect	(0.10		)			(0.03		)			(0.13		)			0.02
Effects of economic hedging related to natural gas inventory	(0.31		)			0.02					(0.44		)			0.13
Tax effect	0.07					(0.01		)			0.10					(0.03		)
Impairment of equity method investment	—					—					0.96					—
Tax effect	0.01					—					(0.12		)			—
Net income to NFE tax adjustment	(0.01		)			—					—					—
Basic net financial earnings (loss) per share	$	0.07				$	0.45				$	2.16				$	1.74

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, 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 impairment charges associated with equity method investments, which are non-cash charges considered unusual in nature that occur infrequently and 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, 2021, and 2020, is provided below.

Net Financial Earnings (Loss) by Business Unit
	Three Months Ended										Twelve Months Ended
	September 30,										September 30,
(Thousands)	2021					2020					2021					2020
New Jersey Natural Gas	$	(24,214	)			$	(15,258	)			$	107,375				$	126,902
Clean Energy Ventures	40,861					44,805					16,789					22,111
Storage and Transportation	2,440					7,434					13,046					18,311
Energy Services	(14,384		)			1,381					71,117					(7,873		)
Home Services and Other	(1,127		)			5,109					(826		)			5,784
Subtotal	3,576					43,471					207,501					165,235
Eliminations	3,023					(42		)			211					98
Total	$	6,599				$	43,429				$	207,712				$	165,333

Fiscal 2022 NFE Guidance:

NJR reaffirmed fiscal 2022 NFE guidance of $2.20 to $2.30 per share and, as a result of the progress on our major infrastructure projects, narrowed the expected long-term NFEPS growth range to 7 to 9 percent, from the previous range of 6 to 10 percent, subject to the risk and uncertainties identified below under "Forward-Looking Statements." The following chart represents NJR’s current expected contributions from its subsidiaries for fiscal 2022:

Company	Expected Fiscal 2022 Net Financial Earnings Contribution
New Jersey Natural Gas	60 to 65 percent
Clean Energy Ventures	20 to 23 percent
Storage and Transportation	5 to 10 percent
Energy Services1	9 to 11 percent
Home Services and Other	0 to 1 percent
1. Assumes NFEPS contributions from Asset Management Agreements only

In providing fiscal 2022 NFE guidance and narrowing our expected long-term NFEPS growth range, 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 2021 NFE of $107.4 million, compared to NFE of $126.9 million during fiscal 2020. Fourth-quarter fiscal 2021 net financial loss was $24.2 million, compared to net financial loss of $15.3 million during the same period in fiscal 2020. The decrease for both periods was due to higher O&M expenses primarily related to increased bad debt.

Customer Growth:

• NJNG added 7,854 new customers during fiscal 2021, compared with 8,349 in fiscal 2020. The lower customer growth was due primarily to the effects of the COVID-19 pandemic. NJNG expects to return to a more typical customer growth rate of 1.7% in fiscal 2022.

Base Rate Filing:

• On November 17, 2021, NJNG received approval from the New Jersey Board of Public Utilities on its rate case settlement agreement and new rates will be effective on December 1, 2021. Under the approved rate case agreement, NJNG's total annual revenue is expected to increase by $79.0 million. The rate case agreement includes a return on equity of 9.60% with a 54.0% common equity ratio and reflects a rate base of$2.52 billion with an overall rate of return of 6.84%.

Infrastructure Update:

• The Southern Reliability Link diversifies supply to our customers by providing a new intrastate feed into the southern end of NJNG’s distribution system. Construction was completed and the project was placed in service in August 2021. The recovery of our investment in this project was included in the recently settled rate case.

• NJNG's Infrastructure Investment Program (IIP) is a five-year, $150 million accelerated recovery program that began in fiscal 2021 and consists of a series of infrastructure projects designed to enhance the safety and reliability of NJNG's natural gas distribution system. In fiscal 2021, NJNG spent $9.4 million under the program to begin work on various distribution system reinforcement projects.

• The Howell Green Hydrogen Project delivers hydrogen through NJNG's utility distribution pipeline to heat customers' homes and businesses and began commercial operation in October 2021. The recovery of investment in this project was included in the recently settled rate case.

BGSS Incentive Programs:

BGSS incentive programs contributed $13.4 million to utility gross margin, compared with $9.5 million during fiscal 2020. The higher results for fiscal 2021 were due to improved margins in off-system sales and storage incentives compared to fiscal 2020.

For more information on utility gross margin, please see "Non-GAAP Financial Information" at the end of the press release.

Energy-Efficiency Programs:

On July 1, 2021, NJNG's new three-year, $259 million SAVEGREEN program became effective. SAVEGREEN invested $31.0 million during fiscal 2021 to help customers with energy-efficiency upgrades for their homes and businesses. NJNG recovered $12.4 million of its outstanding investments during fiscal 2021.

Clean Energy Ventures (CEV)

CEV reported fiscal 2021 NFE of $16.8 million, compared with NFE of $22.1 million during fiscal 2020. Fourth-quarter fiscal 2021 NFE was $40.9 million, compared with NFE of $44.8 million during the same period in fiscal 2020. The decrease in NFE for both periods was due primarily to lower SREC revenue, partially offset by lower depreciation expense. The decrease in depreciation expense is due to an increase in the useful life of CEV's assets.

Storage and Transportation

Storage and Transportation, formerly known as our Midstream reporting segment, reported fiscal 2021 NFE of $13.0 million, compared with NFE of $18.3 million during fiscal 2020. Fourth-quarter fiscal 2021 NFE were $2.4 million, compared with NFE of $7.4 million during the same period in fiscal 2020. The decrease in NFE for both periods was due primarily to lower equity in earnings contributions from our investments in Steckman Ridge and PennEast, and higher O&M, which was partially offset by increased operating revenues at Leaf River and Adelphia Gateway.

The NFE results exclude a $74.5 million after-tax impairment charge related to NJR's investment in the PennEast Project.

Infrastructure Updates:

• Adelphia Gateway - During fiscal 2021, Adelphia Gateway received all necessary permits for the second phase of construction on the South Zone. The second phase includes construction of laterals and interconnects.

Energy Services

Energy Services reported fiscal 2021 NFE of $71.1 million, compared with a net financial loss of $7.9 million in fiscal 2020. The increase was due primarily to higher natural gas price volatility in February 2021, as a result of cold weather in regions where Energy Services had contracted rights to storage assets. Fourth-quarter fiscal 2021 net financial loss was $14.4 million, compared with NFE of $1.4 million for the same period last fiscal year. The decrease was due primarily to increased compensation expense and higher O&M expenses related to charitable contributions compared to the same period a year ago.

Home Services and Other Operations

Home Services and Other Operations reported fiscal 2021 net financial loss of $0.8 million, compared with NFE of $5.8 million during fiscal 2020. Fourth-quarter fiscal 2021 net financial loss was $(1.1) million compared with NFE of $5.1 million for the same period in fiscal 2020. The decrease in both periods was due primarily to higher O&M related to increased compensation and technology expenses and one-time income tax benefits that occurred in the fourth quarter of fiscal 2020 that did not reoccur in fiscal 2021.

Capital Expenditures and Cash Flows:

NJR is committed to maintaining a strong financial profile.

• During fiscal 2021, capital expenditures were $682.9 million, including accruals, of which $468.3 million were related to NJNG, compared with $499.1 million ($1.0 billion including the acquisition of assets), of which $333.9 million were related to NJNG, during fiscal 2020.

• During fiscal 2021, cash flows from operations were $391.0 million, compared with $213.5 million during the same period of fiscal 2020. The increase was due primarily to increased NFE at Energy Services.

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 2022, projected NFEPS growth rate, results of future rate cases, forecasted contribution of business segments to NJR’s NFE for fiscal 2022, future NJR and NJNG capital expenditures, infrastructure programs and investments such as SRL, IIP, the Howell Green Hydrogen Project and energy efficiency programs, the ability to operate the Adelphia Gateway Pipeline project, 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 the impairment on NJR's investments in the PennEast Project, net of applicable tax adjustments as described below. 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 represents the results of revenues less natural gas costs, sales, expenses and other taxes and regulatory rider expenses, which are key components of NJR’s operations. Natural gas costs, sales, expenses and other taxes and regulatory rider expenses are 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 7,500 miles of natural gas transportation and distribution infrastructure to serve over half a million customers in New Jersey’s Monmouth, Ocean and parts of Morris, Middlesex and Burlington counties.

• Clean Energy Ventures invests in, owns and operates solar projects with a total capacity of more than 365 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 nearly 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)		2021					2020				2021					2020
OPERATING REVENUES
Utility		$	97,937				$	84,548			$	731,459				$	729,923
Nonutility		434,591					315,496				1,425,154					1,223,745
Total operating revenues		532,528					400,044				2,156,613					1,953,668
OPERATING EXPENSES
Gas purchases
Utility		36,569					26,789				247,734					275,831
Nonutility		356,721					220,304				1,096,920					1,022,805
Related parties		1,850					1,535				7,013					6,083
Operation and maintenance		101,126					79,425				366,905					278,143
Regulatory rider expenses		3,734					1,993				38,304					34,529
Depreciation and amortization		29,410					27,343				111,387					107,368
Total operating expenses		529,410					357,389				1,868,263					1,724,759
OPERATING (LOSS) INCOME		3,118					42,655				288,350					228,909
Other income, net		10,656					13,618				24,597					23,878
Interest expense, net of capitalized interest		19,876					17,180				78,559					67,597
(LOSS) INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES		(6,102		)			39,093				234,388					185,190
Income tax (benefit) provision		(4,427		)			10,506				33,286					36,494
Equity in earnings of affiliates		542					4,120				(83,212		)			14,311
NET (LOSS) INCOME		$	(1,133	)			$	32,707			$	117,890				$	163,007
(LOSS) EARNINGS PER COMMON SHARE
Basic		$	(0.01	)			$	0.34			$	1.23				$	1.72
Diluted		$	(0.01	)			$	0.34			$	1.22				$	1.71
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		96,198					95,933				96,227					94,798
Diluted		96,198					95,933				96,560					95,103

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES
(Unaudited)
		Three Months Ended										Twelve Months Ended
		September 30,										September 30,
(Thousands)		2021					2020					2021					2020
NEW JERSEY RESOURCES
A reconciliation of net (loss) income, the closest GAAP financial measurement, to net financial earnings is as follows:
Net (loss) income		$	(1,133	)			$	32,707				$	117,890				$	163,007
Add:
Unrealized loss (gain) on derivative instruments and related transactions		40,576					12,183					54,203					(9,644		)
Tax effect		(9,647		)			(2,893		)			(12,887		)			2,296
Effects of economic hedging related to natural gas inventory		(30,150		)			2,216					(42,405		)			12,690
Tax effect		7,166					(527		)			10,078					(3,016		)
Impairment of equity method investment		—					—					92,000					—
Tax effect		767					—					(11,167		)			—
Net income to NFE tax adjustment		(980		)			(257		)			—					—
Net financial (loss) earnings		$	6,599				$	43,429				$	207,712				$	165,333
Weighted Average Shares Outstanding
Basic		96,198					95,933					96,227					94,798
Diluted		96,198					95,933					96,560					95,103
A reconciliation of basic earnings per share, the closest GAAP financial measurement, to basic net financial earnings per share is as follows:
Basic (loss) earnings per share		$	(0.01	)			$	0.34				$	1.23				$	1.72
Add:
Unrealized loss (gain) on derivative instruments and related transactions		$	0.42				$	0.13				$	0.56				$	(0.10	)
Tax effect		$	(0.10	)			$	(0.03	)			$	(0.13	)			$	0.02
Effects of economic hedging related to natural gas inventory		$	(0.31	)			$	0.02				$	(0.44	)			$	0.13
Tax effect		$	0.07				$	(0.01	)			$	0.10				$	(0.03	)
Impairment of equity method investment		$	—				$	—				$	0.96				$	—
Tax effect		$	0.01				$	—				$	(0.12	)			$	—
Net income to NFE tax adjustment		$	(0.01	)			$	—				$	—				$	—
Basic NFE per share		$	0.07				$	0.45				$	2.16				$	1.74
NATURAL GAS DISTRIBUTION
A reconciliation of operating revenue, the closest GAAP financial measurement, to utility gross margin is as follows:
Operating revenues		$	98,274				$	84,548				$	731,796				$	729,923
Less:
Gas purchases		38,842					29,113					260,714					287,307
Regulatory rider expense		3,734					1,993					38,304					34,529
Utility gross margin		$	55,698				$	53,442				$	432,778				$	408,087
		Three Months Ended										Twelve Months Ended
(Unaudited)		September 30,										September 30,
(Thousands)		2021					2020					2021					2020
ENERGY SERVICES
The following table is a computation of financial margin:
Operating revenues		$	334,780				$	212,760				$	1,228,420				$	1,030,419
Less: Gas purchases		357,133					220,882					1,098,261					1,024,579
Add:
Unrealized loss (gain) on derivative instruments and related transactions		45,011					12,723					58,362					(8,583		)
Effects of economic hedging related to natural gas inventory		(30,150		)			2,216					(42,405		)			12,690
Financial margin		$	(7,492	)			$	6,817				$	146,116				$	9,947
A reconciliation of operating income, the closest GAAP financial measurement, to financial margin is as follows:
Operating (loss) income		$	(32,186	)			$	(12,216	)			$	79,163				$	(11,651	)
Add:
Operation and maintenance expense		9,805					4,055					50,885					17,368
Depreciation and amortization		28					39					111					123
Subtotal		(22,353		)			(8,122		)			130,159					5,840
Add:
Unrealized loss (gain) on derivative instruments and related transactions		45,011					12,723					58,362					(8,583		)
Effects of economic hedging related to natural gas inventory		(30,150		)			2,216					(42,405		)			12,690
Financial margin		$	(7,492	)			$	6,817				$	146,116				$	9,947
A reconciliation of net income to net financial earnings is as follows:
Net (loss) income		$	(24,731	)			$	(9,753	)			$	58,957				$	(11,008	)
Add:
Unrealized loss (gain) on derivative instruments and related transactions		45,011					12,723					58,362					(8,583		)
Tax effect		(10,700		)			(3,021		)			(13,875		)			2,044
Effects of economic hedging related to natural gas		(30,150		)			2,216					(42,405		)			12,690
Tax effect		7,166					(527		)			10,078					(3,016		)
Net income to NFE tax adjustment		(980		)			(257		)			—					—
Net financial (loss) earnings		$	(14,384	)			$	1,381				$	71,117				$	(7,873	)
STORAGE AND TRANSPORTATION
A reconciliation of net income to net financial earnings is as follows:
Net (loss) income		$	1,673				$	7,434				$	(67,787	)			$	18,311
Add:
Impairment of equity method investment		—					—					92,000					—
Tax effect		767					—					(11,167		)			—
Net financial earnings		$	2,440				$	7,434				$	13,046				$	18,311

FINANCIAL STATISTICS BY BUSINESS UNIT
(Unaudited)
		Three Months Ended										Twelve Months Ended
		September 30,										September 30,
(Thousands, except per share data)		2021					2020					2021					2020
NEW JERSEY RESOURCES
Operating Revenues
Natural Gas Distribution		$	98,274				$	84,548				$	731,796				$	729,923
Clean Energy Ventures		69,048					77,014					95,275					102,617
Energy Services		334,780					212,760					1,228,420					1,030,419
Storage and Transportation		12,341					12,717					51,020					44,728
Home Services and Other		13,567					13,376					52,229					51,017
Sub-total		528,010					400,415					2,158,740					1,958,704
Eliminations		4,518					(371		)			(2,127		)			(5,036		)
Total		$	532,528				$	400,044				$	2,156,613				$	1,953,668
Operating Income (Loss)
Natural Gas Distribution		$	(21,281	)			$	(12,703	)			$	148,993				$	173,412
Clean Energy Ventures		54,014					63,426					37,993					46,978
Energy Services		(32,186		)			(12,216		)			79,163					(11,651		)
Storage and Transportation		595					5,436					10,659					12,451
Home Services and Other		(4,091		)			(2,673		)			4,033					3,062
Sub-total		(2,949		)			41,270					280,841					224,252
Eliminations		6,067					1,385					7,509					4,656
Total		$	3,118				$	42,655				$	288,350				$	228,909
Equity in Earnings of Affiliates
Storage and Transportation		$	964				$	4,703				$	(81,072	)			$	15,903
Eliminations		(422		)			(583		)			(2,140		)			(1,592		)
Total		$	542				$	4,120				$	(83,212	)			$	14,311
Net Income (Loss)
Natural Gas Distribution		$	(24,214	)			$	(15,258	)			$	107,375				$	126,902
Clean Energy Ventures		40,861					44,805					16,789					22,111
Energy Services		(24,731		)			(9,753		)			58,957					(11,008		)
Storage and Transportation		1,673					7,434					(67,787		)			18,311
Home Services and Other		(1,127		)			5,109					(826		)			5,784
Sub-total		(7,538		)			32,337					114,508					162,100
Eliminations		6,405					370					3,382					907
Total		$	(1,133	)			$	32,707				$	117,890				$	163,007
Net Financial Earnings (Loss)
Natural Gas Distribution		$	(24,214	)			$	(15,258	)			$	107,375				$	126,902
Clean Energy Ventures		40,861					44,805					16,789					22,111
Energy Services		(14,384		)			1,381					71,117					(7,873		)
Storage and Transportation		2,440					7,434					13,046					18,311
Home Services and Other		(1,127		)			5,109					(826		)			5,784
Sub-total		3,576					43,471					207,501					165,235
Eliminations		3,023					(42		)			211					98
Total		$	6,599				$	43,429				$	207,712				$	165,333
Throughput (Bcf)
NJNG, Core Customers		17.8					17.6					91.4					97.0
NJNG, Off System/Capacity Management		26.9					34.1					101.3					118.4
Energy Services Fuel Mgmt. and Wholesale Sales		89.5					121.6					382.0					526.7
Total		134.2					173.3					574.7					742.1
Common Stock Data
Yield at September 30		4.2			%		4.9			%		4.2			%		4.9			%
Market Price at September 30		$	34.81				$	27.02				$	34.81				$	27.02
Shares Out. at September 30		95,710					95,949					95,710					95,949
Market Cap. at September 30		$	3,331,653				$	2,592,547				$	3,331,653				$	2,592,547

		Three Months Ended								Twelve Months Ended
(Unaudited)		September 30,								September 30,
(Thousands, except customer and weather data)		2021				2020				2021				2020
NATURAL GAS DISTRIBUTION
Utility Gross Margin
Operating revenues		$	98,274			$	84,548			$	731,796			$	729,923
Less:
Gas purchases		38,842				29,113				260,714				287,307
Regulatory rider expense		3,734				1,993				38,304				34,529
Total Utility Gross Margin		$	55,698			$	53,442			$	432,778			$	408,087
Utility Gross Margin, Operating Income and Net Income
Residential		$	29,947			$	30,408			$	288,723			$	275,033
Commercial, Industrial & Other		10,578				8,190				64,950				57,929
Firm Transportation		10,518				10,416				61,870				60,199
Total Firm Margin		51,043				49,014				415,543				393,161
Interruptible		1,192				1,675				3,820				5,455
Total System Margin		52,235				50,689				419,363				398,616
Off System/Capacity Management/FRM/Storage Incentive		3,463				2,753				13,415				9,471
Total Utility Gross Margin		55,698				53,442				432,778				408,087
Operation and maintenance expense		55,472				47,448				203,740				162,792
Depreciation and amortization		21,507				18,697				80,045				71,883
Operating Income		$	(21,281)			$	(12,703)			$	148,993			$	173,412
Net Income		$	(24,214)			$	(15,258)			$	107,375			$	126,902
Net Financial Earnings		$	(24,214)			$	(15,258)			$	107,375			$	126,902
Throughput (Bcf)
Residential		3.3				3.4				46.2				44.6
Commercial, Industrial & Other		0.7				0.6				8.6				8.2
Firm Transportation		1.6				1.6				13.7				13.3
Total Firm Throughput		5.6				5.6				68.5				66.1
Interruptible		12.2				12.0				22.9				30.9
Total System Throughput		17.8				17.6				91.4				97.0
Off System/Capacity Management		26.9				34.1				101.3				118.4
Total Throughput		44.7				51.7				192.7				215.4
Customers
Residential		502,546				497,779				502,546				497,779
Commercial, Industrial & Other		30,615				28,735				30,615				28,735
Firm Transportation		30,697				31,604				30,697				31,604
Total Firm Customers		563,858				558,118				563,858				558,118
Interruptible		27				29				27				29
Total System Customers		563,885				558,147				563,885				558,147
Off System/Capacity Management*		20				19				20				19
Total Customers		563,905				558,166				563,905				558,166
*The number of customers represents those active during the last month of the period.
Degree Days
Actual		8				595				4,247				4,208
Normal		29				488				4,541				4,556
Percent of Normal		27.6		%		121.9		%		93.5		%		92.4		%

		Three Months Ended										Twelve Months Ended
(Unaudited)		September 30,										September 30,
(Thousands, except customer, SREC, TREC and megawatt)		2021					2020					2021					2020
CLEAN ENERGY VENTURES
Operating Revenues
SREC sales		$	58,898				$	69,301				$	65,434				$	81,134
TREC sales		1,496					1,384					4,571					1,384
Solar electricity sales and other		5,878					3,676					14,491					9,930
Sunlight Advantage		2,776					2,653					10,779					10,169
Total Operating Revenues		$	69,048				$	77,014				$	95,275				$	102,617
Depreciation and Amortization		$	5,249				$	5,633				$	20,567				$	25,329
Operating (Loss)		$	54,014				$	63,426				$	37,993				$	46,978
Income Tax (Benefit)		$	12,296				$	19,386				$	5,048				$	11,034
Net (Loss)		$	40,861				$	44,805				$	16,789				$	22,111
Net Financial (Loss)		$	40,861				$	44,805				$	16,789				$	22,111
Solar Renewable Energy Certificates Generated		130,847					136,067					406,118					389,716
Solar Renewable Energy Certificates Sold		300,530					345,420					333,025					408,100
Transition Renewable Energy Certificates Generated		10,561					9,270.0					31,767					9,270.0
Solar Megawatts Under Construction		59.3					32.5					59.3					32.5
ENERGY SERVICES
Operating Income
Operating revenues		$	334,780				$	212,760				$	1,228,420				$	1,030,419
Less:
Gas purchases		357,133					220,882					1,098,261					1,024,579
Operation and maintenance expense		9,805					4,055					50,885					17,368
Depreciation and amortization		28					39					111					123
Operating (Loss) Income		$	(32,186	)			$	(12,216	)			$	79,163				$	(11,651	)
Net (Loss) Income		$	(24,731	)			$	(9,753	)			$	58,957				$	(11,008	)
Financial Margin		$	(7,492	)			$	6,817				$	146,116				$	9,947
Net Financial (Loss) Earnings		$	(14,384	)			$	1,381				$	71,117				$	(7,873	)
Gas Sold and Managed (Bcf)		89.5					121.6					382.0					526.7
STORAGE AND TRANSPORTATION
Operating Revenues		$	12,341				$	12,717				$	51,020				$	44,728
Equity in Earnings of Affiliates		$	964				$	4,703				$	(81,072	)			$	15,903
Operation and Maintenance Expense		$	8,765				$	4,460				$	29,135				$	21,862
Other Income, Net		$	1,796				$	927				$	5,931				$	7,328
Interest Expense		$	2,851				$	2,838				$	13,348				$	13,124
Income Tax (Benefit) Provision		$	(1,169	)			$	794				$	(10,043	)			$	4,247
Net (Loss) Income		$	1,673				$	7,434				$	(67,787	)			$	18,311
Net Financial Earnings		$	2,440				$	7,434				$	13,046				$	18,311
HOME SERVICES AND OTHER
Operating Revenues		$	13,567				$	13,376				$	52,229				$	51,017
Operating Income		$	(4,091	)			$	(2,673	)			$	4,033				$	3,062
Other Expense, Net		$	1,602				$	(15,203	)			$	(1,001	)			$	5,177
Net (Loss) Income		$	(1,127	)			$	5,109				$	(826	)			$	5,784
Net Financial (Loss) Earnings		$	(1,127	)			$	5,109				$	(826	)			$	5,784
Total Service Contract Customers at September 30		105,720					107,224					105,720					107,224

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211118005352/en/

Media:

Michael Kinney

732-938-1031

mkinney@njresources.com

Investors:

Dennis Puma

732-938-1229

dpuma@njresources.com

Source: New Jersey Resources Corporation

FAQ

What were the earnings results for NJR in fiscal 2021?

NJR reported a net income of $117.9 million and net financial earnings of $207.7 million for fiscal 2021.

What is NJR's guidance for fiscal 2022 net financial earnings per share?

NJR affirmed a guidance range of $2.20 to $2.30 for fiscal 2022 net financial earnings per share.

How has NJR's long-term growth rate changed?

NJR narrowed its long-term projected net financial earnings per share growth rate to 7-9% from a previous range of 6-10%.

What is the recent dividend announcement by NJR?

NJR increased its annual dividend by 9% to $1.45 per share.

What significant financial impacts did NJR report in Q4 2021?

In Q4 2021, NJR reported a net loss of $(1.1) million, a decline compared to net income of $32.7 million in Q4 2020.