New Jersey Resources Corp. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>New Jersey Resources Corp. filed its quarterly report (10-Q) for the period ending December 31, 2023, detailing financial performance across regulated and unregulated operations.</b>

AI Summary

NEW JERSEY RESOURCES CORP (NJR) filed a Quarterly Report (10-Q) with the SEC on February 6, 2024. The filing is a 10-Q report for New Jersey Resources Corp. for the period ending December 31, 2023. The company's fiscal year ends on September 30. The filing includes data related to Regulated Operations and Unregulated Operations. Key financial statement items such as Assets, Liabilities, and Stockholders' Equity are referenced. Specific asset categories like Utility Plant, Solar Equipment, and Storage & Transportation are detailed.

Why It Matters

For investors and stakeholders tracking NEW JERSEY RESOURCES CORP, this filing contains several important signals. This 10-Q provides investors with an update on the company's financial health and operational performance during the first fiscal quarter of 2024. Understanding the breakdown between regulated and unregulated operations is crucial for assessing the company's revenue streams and risk profile.

Risk Assessment

Risk Level: low — NEW JERSEY RESOURCES CORP shows low risk based on this filing. The filing is a standard quarterly report (10-Q) which typically contains routine financial information and does not indicate any immediate or significant risks.

Analyst Insight

Review the detailed financial statements and segment performance within the 10-Q to understand revenue drivers and operational efficiency for Q1 2024.

Key Numbers

• 2023-12-31 — Period End Date (Conformed Period of Report)
• 2024-02-06 — Filing Date (Filed as of date)
• 0930 — Fiscal Year End (Company fiscal year end)
• 4924 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• NEW JERSEY RESOURCES CORP (company) — Filer name
• NJR (company) — Ticker symbol
• 2023-12-31 (date) — Period of report
• 2024-02-06 (date) — Filed as of date
• Natural Gas Distribution (industry) — Standard Industrial Classification
• 1415 WYCKOFF RD (address) — Business street address
• WALL (location) — Business city
• NJ (location) — Business state

Forward-Looking Statements

• NJR will continue to focus on growing its unregulated operations to offset potential stagnation or decline in regulated revenues. (New Jersey Resources Corp) — medium confidence, target: 2024-09-30

FAQ

Industry Context

New Jersey Resources Corp. operates within the natural gas distribution sector, providing essential energy services.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures.

What Investors Should Do

1. Analyze the revenue and cost of goods sold for both regulated and unregulated segments.
2. Examine the company's asset and liability structure, paying attention to property, plant, and equipment.
3. Review any disclosures related to debt and equity financing.

Key Dates

• 2023-12-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-02-06: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed for the period ending December 31, 2023. Comparative data from previous filings will be available in subsequent reports.

Key Financial Figures

• $2.50 — nge on which registered Common Stock - $2.50 Par Value NJR New York Stock Exchange
• $250M — ERMS (cont.) NJNG Credit Facility The $250M unsecured committed credit facility exp
• $650M — eptember 2027 NJR Credit Facility The $650M unsecured committed credit facility exp

Filing Documents

• njr-20231231.htm (10-Q) — 2457KB
• njrex311dec2023.htm (EX-31.1) — 12KB
• njrex312dec2023.htm (EX-31.2) — 12KB
• njrex321dec2023.htm (EX-32.1) — 6KB
• njrex322dec2023.htm (EX-32.2) — 6KB
• njr-20231231_g1.jpg (GRAPHIC) — 186KB
• njr-20231231_g2.jpg (GRAPHIC) — 112KB
• njr-20231231_g3.jpg (GRAPHIC) — 80KB
• 0000356309-24-000027.txt (&nbsp;) — 13671KB
• njr-20231231.xsd (EX-101.SCH) — 72KB
• njr-20231231_cal.xml (EX-101.CAL) — 112KB
• njr-20231231_def.xml (EX-101.DEF) — 472KB
• njr-20231231_lab.xml (EX-101.LAB) — 929KB
• njr-20231231_pre.xml (EX-101.PRE) — 642KB
• njr-20231231_htm.xml (XML) — 2533KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Unaudited Condensed Consolidated Financial Statements

ITEM 1. Unaudited Condensed Consolidated Financial Statements 4 Notes to Unaudited Condensed Consolidated Financial Statements 9 Note 1. Nature of the Business 9 Note 2. Summary of Significant Accounting Policies 9 Note 3. Revenue 10 Note 4. Regulation 14 Note 5. Derivative Instruments 15 Note 6. Fair Value 19 Note 7. Investments in Equity Investees 22 Note 8. Earnings Per Share 22 Note 9. Debt 22 Note 10. Employee Benefit Plans 23 Note 11. Income Taxes 24 Note 12. Leases 25 Note 13. Commitments and Contingent Liabilities 27 Note 14. Reporting Segment and Other Operations Data 28 Note 15. Related Party Transactions 30

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 32

Quantitative and Qualitative Disclosures About Market Risk

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk 55

Controls and Procedures

ITEM 4. Controls and Procedures 57

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

ITEM 1. Legal Proceedings 59

Risk Factors

ITEM 1A. Risk Factors 59

Unregistered Sale of Equity Securities and Use of Proceeds

ITEM 2. Unregistered Sale of Equity Securities and Use of Proceeds 59

Other Information

ITEM 5. Other Information 59

Exhibits

ITEM 6. Exhibits 60

Signatures

Signatures 61 New Jersey Resources Corporation GLOSSARY OF KEY TERMS Adelphia Adelphia Gateway, LLC AFUDC Allowance for Funds Used During Construction AMA Asset Management Agreement ASC Accounting Standards Codification ASU Accounting Standards Update B Billion Bcf Billion Cubic Feet BGSS Basic Gas Supply Service BPU New Jersey Board of Public Utilities CIP Conservation Incentive Program Clean Energy Ventures or CEV NJR Clean Energy Ventures Corporation or our Clean Energy Ventures segment CME Chicago Mercantile Exchange DRP NJR Direct Stock Purchase and Dividend Reinvestment Plan EE Energy Efficiency Energy Services or ES NJR Energy Services Company, LLC or our Energy Services segment Exchange Act Securities Exchange Act of 1934, as amended FASB Financial Accounting Standards Board FCM Futures Commission Merchant FERC Federal Energy Regulatory Commission Financial Margin A non-GAAP financial measure, which represents revenues earned from the sale of natural gas less costs of natural gas sold including any transportation and storage costs, and excludes certain operations and maintenance expense and depreciation and amortization, as well as any accounting impact from the change in the fair value of certain derivative instruments Fitch Fitch Ratings Company FMB First Mortgage Bond GAAP Generally Accepted Accounting Principles of the United States Home Services and Other or HSO Home Services and Other Operations ICE Intercontinental Exchange IIP Infrastructure Investment Program ISDA The International Swaps and Derivatives Association ITC Federal Investment Tax Credit Leaf River Leaf River Energy Center LLC M Million MGP Manufactured Gas Plant MMBtu Million British Thermal Units Moody's Moody's Investors Service, Inc. Mortgage Indenture The Amended and Restated Indenture of Mortgage, Deed of Trust and Security Agreement between NJNG and U.S. Bank National Association dated as of September 1, 2014, as amended MW Megawatts M

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended December 31, (Thousands, except per share data) 2023 2022 OPERATING REVENUES Utility $ 293,093 $ 357,409 Nonutility 174,117 366,158 Total operating revenues 467,210 723,567 OPERATING EXPENSES Natural gas purchases: Utility 116,120 182,446 Nonutility 59,477 232,070 Related parties 1,879 1,827 Operation and maintenance 94,439 79,501 Regulatory rider expenses 19,189 18,251 Depreciation and amortization 40,287 36,683 Total operating expenses 331,391 550,778 OPERATING INCOME 135,819 172,789 Other income, net 6,341 4,655 Interest expense, net of capitalized interest 31,473 29,491 INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES 110,687 147,953 Income tax provision 22,936 32,978 Equity in earnings of affiliates 1,660 946 NET INCOME $ 89,411 $ 115,921 EARNINGS PER COMMON SHARE Basic $ 0.91 $ 1.20 Diluted $ 0.91 $ 1.19 WEIGHTED AVERAGE SHARES OUTSTANDING Basic 97,869 96,485 Diluted 98,563 97,083 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended December 31, (Thousands) 2023 2022 Net income $ 89,411 $ 115,921 Other comprehensive income, net of tax Reclassifications of losses to net income on derivatives designated as hedging instruments, net of tax of $( 79 ) and $( 79 ), respectively 264 263 Adjustment to postemployment benefit obligation, net of tax of $( 40 ) and $( 12 ), respectively 131 41 Other comprehensive income, net of tax $ 395 $ 304 Comprehensive income $ 89,806 $ 116,225 See Notes to Unaudited Condensed Consolidated Financial Statements 4 New Jersey Resources Corporation Part I

FINANCIAL STATEMENTS (Continued)

ITEM 1. FINANCIAL STATEMENTS (Continued) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended December 31, (Thousands) 2023 2022 CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES Net income $ 89,411 $ 115,921 Adjustments to reconcile net income to cash flows from operating activities Unrealized (gain) on derivative instruments ( 5,400 ) ( 31,503 ) Depreciation and amortization 40,287 36,683 Amortization of acquired wholesale energy contracts 111 530 Allowance for equity used during construction ( 1,482 ) ( 1,054 ) Allowance for doubtful accounts ( 1,575 ) ( 2,459 ) Non cash lease expense 1,152 727 Deferred income taxes 18,758 11,861 Equivalent value of ITCs recognized on equipment financing ( 2,888 ) ( 899 ) Manufactured gas plant remediation costs ( 4,575 ) ( 2,627 ) Cost of removal - asset retirement obligations ( 382 ) ( 322 ) Contributions to postemployment benefit plans ( 1,996 ) ( 249 ) Taxes related to stock-based compensation 1,185 554 Changes in: Components of working capital ( 97,615 ) ( 335,025 ) Other noncurrent assets and liabilities 11,424 118,915 Cash flows from (used in) operating activities 46,415 ( 88,947 ) CASH FLOWS USED IN INVESTING ACTIVITIES Expenditures for: Utility plant ( 71,166 ) ( 74,742 ) Solar equipment ( 25,766 ) ( 43,993 ) Storage and Transportation and other ( 8,713 ) ( 19,859 ) Cost of removal ( 8,977 ) ( 7,329 ) Distribution from equity investees in excess of equity in earnings 830 361 Cash flows used in investing activities ( 113,792 ) ( 145,562 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from long-term debt 50,000 175,000 Payments of long-term debt ( 6,188 ) ( 4,782 ) Proceeds from short-term debt, net 16,550 40,500 Proceeds from sale leaseback transactions - solar 24,394 33,150 Proceeds from sale leaseback transactions - natural gas meters 8,814 8,441 Payments of common stock dividends ( 40,981 ) ( 34,508 ) Proceeds from waiver discount issuance of common

FINANCIAL STATEMENTS (Continued)

ITEM 1. FINANCIAL STATEMENTS (Continued) CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS (Unaudited) (Thousands) December 31, 2023 September 30, 2023 PROPERTY, PLANT AND EQUIPMENT Utility plant, at cost $ 3,927,578 $ 3,843,037 Construction work in progress 230,603 237,428 Nonutility plant and equipment, at cost 1,784,035 1,767,306 Construction work in progress 153,541 142,768 Total property, plant and equipment 6,095,757 5,990,539 Accumulated depreciation and amortization, utility plant ( 732,326 ) ( 714,087 ) Accumulated depreciation and amortization, nonutility plant and equipment ( 266,896 ) ( 254,397 ) Property, plant and equipment, net 5,096,535 5,022,055 CURRENT ASSETS Cash and cash equivalents 2,739 954 Customer accounts receivable Billed 170,472 97,540 Unbilled revenues 91,931 19,100 Allowance for doubtful accounts ( 8,847 ) ( 11,036 ) Regulatory assets 76,728 73,587 Natural gas in storage, at average cost 193,742 199,501 Materials and supplies, at average cost 30,833 27,022 Prepaid expenses 15,535 9,741 Prepaid and accrued taxes 22,860 43,046 Derivatives, at fair value 37,771 30,755 Restricted broker margin accounts 19,331 20,796 Other current assets 23,863 21,071 Total current assets 676,958 532,077 NONCURRENT ASSETS Investments in equity method investees 103,268 104,134 Regulatory assets 581,907 584,830 Operating lease assets 175,864 175,740 Derivatives, at fair value 1,178 1,564 Software costs 9,105 8,375 Deferred income taxes 22,903 28,383 Postemployment employee benefit assets 18,651 18,684 Other noncurrent assets 62,679 61,654 Total noncurrent assets 975,555 983,364 Total assets $ 6,749,048 $ 6,537,496 See Notes to Unaudited Condensed Consolidated Financial Statements 6 New Jersey Resources Corporation Part I

FINANCIAL STATEMENTS (Continued)

ITEM 1. FINANCIAL STATEMENTS (Continued) CAPITALIZATION AND LIABILITIES (Unaudited) (Thousands, except share data) December 31, 2023 September 30, 2023 CAPITALIZATION Common stock, $ 2.50 par value; authorized 150,000,000 shares; outstanding shares December 31, 2023 — 98,202,255 ; September 30, 2023 — 97,584,455 $ 245,009 $ 243,458 Premium on common stock 582,551 558,654 Accumulated other comprehensive loss, net of tax ( 9,564 ) ( 9,959 ) Treasury stock at cost and other; shares December 31, 2023 — 15,710 ; September 30, 2023 — 13,041 22,136 20,748 Retained earnings 1,226,069 1,177,834 Common stock equity 2,066,201 1,990,735 Long-term debt 2,738,997 2,768,017 Total capitalization 4,805,198 4,758,752 CURRENT LIABILITIES Current maturities of long-term debt 219,627 116,155 Short-term debt 268,650 252,100 Natural gas purchases payable 76,178 51,277 Natural gas purchases payable to related parties 857 859 Deferred revenue 118,519 61,404 Accounts payable and other 105,627 151,790 Dividends payable 41,175 40,981 Accrued taxes 10,799 10,090 Regulatory liabilities 30,344 32,287 New Jersey Clean Energy Program 14,382 15,804 Derivatives, at fair value 13,196 16,145 Operating lease liabilities 4,798 4,772 Restricted broker margin accounts 12,419 8,029 Customers' credit balances and deposits 45,461 44,910 Total current liabilities 962,032 806,603 NONCURRENT LIABILITIES Deferred income taxes 299,454 285,427 Deferred investment tax credits 2,365 2,434 Deferred revenue 635 659 Derivatives, at fair value 7,464 7,967 Manufactured gas plant remediation 165,315 169,390 Postemployment employee benefit liability 102,482 102,528 Regulatory liabilities 179,638 180,458 Operating lease liabilities 148,849 148,023 Asset retirement obligation 62,435 61,993 Other noncurrent liabilities 13,181 13,262 Total noncurrent liabilities 981,818 972,141 Commitments and contingent liabilities (Note 13) Total capitalization and liabilities $ 6,749,048 $ 6,53

FINANCIAL STATEMENTS (Continued)

ITEM 1. FINANCIAL STATEMENTS (Continued) CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY (Unaudited) (Thousands) Number of Shares Common Stock Premium on Common Stock Accumulated Other Comprehensive (Loss) Income Treasury Stock and Other Retained Earnings Total Balance as of September 30, 2023 97,584 $ 243,458 $ 558,654 $ ( 9,959 ) $ 20,748 $ 1,177,834 $ 1,990,735 Net income — — — — — 89,411 89,411 Other comprehensive income — — — 395 — — 395 Common stock issued: Incentive compensation plan 116 290 3,451 — — — 3,741 Dividend reinvestment plan 94 236 3,552 — — — 3,788 Waiver discount 410 1,025 16,894 — — — 17,919 Cash dividend declared ($ .42 per share) — — — — — ( 41,176 ) ( 41,176 ) Treasury stock and other ( 2 ) — — — 1,388 — 1,388 Balance as of December 31, 2023 98,202 $ 245,009 $ 582,551 $ ( 9,564 ) $ 22,136 $ 1,226,069 $ 2,066,201 (Thousands) Number of Shares Common Stock Premium on Common Stock Accumulated Other Comprehensive (Loss) Income Treasury Stock and Other Retained Earnings Total Balance as of September 30, 2022 96,250 $ 241,616 $ 519,697 $ ( 4,826 ) $ ( 6,805 ) $ 1,067,528 $ 1,817,210 Net income — — — — — 115,921 115,921 Other comprehensive income — — — 304 — — 304 Common stock issued: Incentive compensation plan 92 229 3,243 — — — 3,472 Dividend reinvestment plan (1) 93 — 437 — 3,429 — 3,866 Waiver discount 368 — 4,469 — 13,450 — 17,919 Cash dividend declared ($ .39 per share) — — — — — ( 37,665 ) ( 37,665 ) Treasury stock and other — — — — 1,768 — 1,768 Balance as of December 31, 2022 96,803 $ 241,845 $ 527,846 $ ( 4,522 ) $ 11,842 $ 1,145,784 $ 1,922,795 (1) Certain shares sold through the DRP issued from treasury stock are at average cost, which may differ from the actual market price paid. 8 New Jersey Resources Corporation Part I NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. NATURE OF THE BUSINESS The Company provides regulated natural gas distribution services, transmissio

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