New Jersey Resources Corp. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>New Jersey Resources Corp. has filed its quarterly report (10-Q) for the period ending March 31, 2024.</b>

AI Summary

NEW JERSEY RESOURCES CORP (NJR) filed a Quarterly Report (10-Q) with the SEC on May 7, 2024. The filing is a 10-Q for New Jersey Resources Corp. for the period ending March 31, 2024. The company's Standard Industrial Classification is Natural Gas Distribution. The fiscal year end for the company is September 30. The filing was submitted on May 7, 2024. The business and mailing address is 1415 Wyckoff Rd, Wall, NJ 07719.

Why It Matters

For investors and stakeholders tracking NEW JERSEY RESOURCES CORP, this filing contains several important signals. This 10-Q filing provides investors and analysts with an update on the company's financial performance and position during the second quarter of its fiscal year. Understanding the details within this report is crucial for assessing the company's operational health, regulatory environment, and future prospects in the natural gas distribution sector.

Risk Assessment

Risk Level: low — NEW JERSEY RESOURCES CORP shows low risk based on this filing. The filing is a standard 10-Q, which is a routine periodic report required by the SEC for publicly traded companies, indicating no immediate or unusual risk.

Analyst Insight

Review the financial statements and management's discussion and analysis within the 10-Q to understand the company's performance and outlook.

Key Numbers

• 2024-03-31 — Period of Report (Conformed Period of Report)
• 2024-05-07 — Filed As Of Date (Conformed Filed As Of Date)
• 0930 — Fiscal Year End (Fiscal Year End)

Key Players & Entities

• NEW JERSEY RESOURCES CORP (company) — Filer
• 0000356309 (company) — Central Index Key
• 4924 (company) — Standard Industrial Classification
• NJ (company) — State of Incorporation
• 7329381000 (company) — Business Phone
• 07719 (company) — Business Zip Code
• 001-08359 (company) — SEC File Number

FAQ

Industry Context

New Jersey Resources Corp. operates in the natural gas distribution industry, a sector critical for energy supply and subject to significant regulatory oversight.

Regulatory Implications

As a natural gas distributor, the company is subject to regulations from state and federal bodies governing utility operations, pricing, and safety standards.

What Investors Should Do

1. Analyze the company's revenue and cost of goods and services sold for the reported periods.
2. Examine the company's assets and liabilities to understand its financial position.
3. Review any disclosures related to regulated and unregulated operations.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-05-07: Filing Date — Date the 10-Q was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing provided for analysis, so a comparison to a previous filing is not possible with the given data.

Key Financial Figures

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

Filing Documents

• njr-20240331.htm (10-Q) — 3319KB
• njrex311mar2024.htm (EX-31.1) — 12KB
• njrex312mar2024.htm (EX-31.2) — 12KB
• njrex321mar2024.htm (EX-32.1) — 6KB
• njrex322mar2024.htm (EX-32.2) — 6KB
• njr-20240331_g1.jpg (GRAPHIC) — 186KB
• njr-20240331_g2.jpg (GRAPHIC) — 110KB
• njr-20240331_g3.jpg (GRAPHIC) — 91KB
• 0000356309-24-000032.txt (&nbsp;) — 16690KB
• njr-20240331.xsd (EX-101.SCH) — 77KB
• njr-20240331_cal.xml (EX-101.CAL) — 122KB
• njr-20240331_def.xml (EX-101.DEF) — 515KB
• njr-20240331_lab.xml (EX-101.LAB) — 899KB
• njr-20240331_pre.xml (EX-101.PRE) — 692KB
• njr-20240331_htm.xml (XML) — 3543KB

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 11 Note 4. Regulation 16 Note 5. Derivative Instruments 18 Note 6. Fair Value 22 Note 7. Investments in Equity Investees 24 Note 8. Earnings Per Share 24 Note 9. Debt 25 Note 10. Employee Benefit Plans 26 Note 11. Income Taxes 28 Note 12. Leases 29 Note 13. Commitments and Contingent Liabilities 31 Note 14. Reporting Segment and Other Operations Data 32 Note 15. Related Party Transactions 35

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 37 Natural Gas Distribution Segment 40 Clean Energy Ventures Segment 48 Energy Services Segment 50 Storage and Transportation Segment 55 Home Services and Other Business Operations 56 Liquidity and Capital Resources 56

Quantitative and Qualitative Disclosures About Market Risk

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk 63

Controls and Procedures

ITEM 4. Controls and Procedures 65

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

ITEM 1. Legal Proceedings 67

Risk Factors

ITEM 1A. Risk Factors 67

Unregistered Sale of Equity Securities and Use of Proceeds

ITEM 2. Unregistered Sale of Equity Securities and Use of Proceeds 67

Other Information

ITEM 5. Other Information 67

Exhibits

ITEM 6. Exhibits 68

Signatures

Signatures 69 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 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 MWh Megawatt Hour NAE

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended March 31, March 31, (Thousands, except per share data) 2024 2023 2024 2023 OPERATING REVENUES Utility $ 462,863 $ 400,500 $ 755,956 $ 757,909 Nonutility 195,050 243,527 369,167 609,685 Total operating revenues 657,913 644,027 1,125,123 1,367,594 OPERATING EXPENSES Natural gas purchases: Utility 204,347 156,370 320,467 338,816 Nonutility 105,018 160,364 164,495 392,434 Related parties 1,799 1,770 3,678 3,597 Operation and maintenance 107,223 99,095 201,662 178,596 Regulatory rider expenses 29,229 23,154 48,418 41,405 Depreciation and amortization 40,075 38,090 80,362 74,773 Total operating expenses 487,691 478,843 819,082 1,029,621 OPERATING INCOME 170,222 165,184 306,041 337,973 Other income, net 15,420 4,779 21,761 9,434 Interest expense, net of capitalized interest 31,621 30,261 63,094 59,752 INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES 154,021 139,702 264,708 287,655 Income tax provision 33,947 30,586 56,883 63,564 Equity in earnings of affiliates 738 1,131 2,398 2,077 NET INCOME $ 120,812 $ 110,247 $ 210,223 $ 226,168 EARNINGS PER COMMON SHARE Basic $ 1.23 $ 1.14 $ 2.14 $ 2.34 Diluted $ 1.22 $ 1.13 $ 2.13 $ 2.32 WEIGHTED AVERAGE SHARES OUTSTANDING Basic 98,377 96,893 98,123 96,689 Diluted 99,102 97,556 98,839 97,346 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2024 2023 2024 2023 Net income $ 120,812 $ 110,247 $ 210,223 $ 226,168 Other comprehensive income, net of tax Reclassifications of losses to net income on derivatives designated as hedging instruments, net of tax of $( 80 ), $( 80 ), $( 159 ) and $( 159 ), respectively 262 264 526 527 Adjustment to postemployment benefit obligation, net of tax of $( 2,908 ), $( 13 ), $( 2,948 ) and $( 25 ), respectively 9,624 41 9,755 82 Other

FINANCIAL STATEMENTS (Continued)

ITEM 1. FINANCIAL STATEMENTS (Continued) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended March 31, (Thousands) 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 210,223 $ 226,168 Adjustments to reconcile net income to cash flows from operating activities Unrealized loss (gain) on derivative instruments 20,057 ( 17,532 ) Depreciation and amortization 80,362 74,773 Amortization of acquired wholesale energy contracts 260 1,283 Allowance for equity used during construction ( 3,572 ) ( 2,801 ) Allowance for doubtful accounts ( 24 ) ( 395 ) Non cash lease expense 2,130 1,848 Deferred income taxes 49,301 36,072 Equivalent value of ITCs recognized on equipment financing ( 10,605 ) ( 899 ) Manufactured gas plant remediation costs ( 12,577 ) ( 4,362 ) Cost of removal - asset retirement obligations ( 763 ) ( 644 ) Contributions to postemployment benefit plans ( 2,191 ) ( 634 ) Taxes related to stock-based compensation 1,186 554 Changes in: Components of working capital ( 3,021 ) ( 42,519 ) Other noncurrent assets and liabilities 7,836 72,209 Cash flows from operating activities 338,602 343,121 CASH FLOWS USED IN INVESTING ACTIVITIES Expenditures for: Utility plant ( 160,937 ) ( 157,914 ) Solar equipment ( 37,083 ) ( 57,699 ) Storage and Transportation and other ( 21,846 ) ( 30,741 ) Cost of removal ( 17,436 ) ( 16,757 ) Distribution from equity investees in excess of equity in earnings 2,284 1,374 Cash flows used in investing activities ( 235,018 ) ( 261,737 ) CASH FLOWS USED IN FINANCING ACTIVITIES Proceeds from long-term debt 50,000 175,000 Payments of long-term debt ( 82,790 ) ( 10,534 ) Payments of term loan — ( 150,000 ) Payments of short-term debt, net ( 55,950 ) ( 86,300 ) Proceeds from sale leaseback transactions - solar 24,394 61,808 Proceeds from sale leaseback transactions - natural gas meters 8,814 8,441 Payments of common stock dividends ( 82,156 ) ( 75,200 ) Proceeds from waive

FINANCIAL STATEMENTS (Continued)

ITEM 1. FINANCIAL STATEMENTS (Continued) CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS (Unaudited) (Thousands) March 31, 2024 September 30, 2023 PROPERTY, PLANT AND EQUIPMENT Utility plant, at cost $ 4,012,235 $ 3,843,037 Construction work in progress 223,421 237,428 Nonutility plant and equipment, at cost 1,791,100 1,767,306 Construction work in progress 171,396 142,768 Total property, plant and equipment 6,198,152 5,990,539 Accumulated depreciation and amortization, utility plant ( 753,750 ) ( 714,087 ) Accumulated depreciation and amortization, nonutility plant and equipment ( 278,854 ) ( 254,397 ) Property, plant and equipment, net 5,165,548 5,022,055 CURRENT ASSETS Cash and cash equivalents 5,036 954 Customer accounts receivable Billed 185,069 97,540 Unbilled revenues 74,456 19,100 Allowance for doubtful accounts ( 9,576 ) ( 11,036 ) Regulatory assets 93,887 73,587 Natural gas in storage, at average cost 80,996 199,501 Materials and supplies, at average cost 30,361 27,022 Prepaid expenses 16,091 9,741 Prepaid taxes 18,299 43,046 Derivatives, at fair value 14,056 30,755 Restricted broker margin accounts 19,310 20,796 Other current assets 25,726 21,071 Total current assets 553,711 532,077 NONCURRENT ASSETS Investments in equity method investees 101,778 104,134 Regulatory assets 535,104 584,830 Operating lease assets 177,176 175,740 Derivatives, at fair value 910 1,564 Software costs 9,734 8,375 Deferred income taxes 22,848 28,383 Postemployment employee benefit assets 18,618 18,684 Other noncurrent assets 61,950 61,654 Total noncurrent assets 928,118 983,364 Total assets $ 6,647,377 $ 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) March 31, 2024 September 30, 2023 CAPITALIZATION Common stock, $ 2.50 par value; authorized 150,000,000 shares; outstanding shares March 31, 2024 — 98,744,915 ; September 30, 2023 — 97,584,455 $ 246,367 $ 243,458 Premium on common stock 604,009 558,654 Accumulated other comprehensive income (loss), net of tax 322 ( 9,959 ) Treasury stock at cost and other; shares March 31, 2024 — 16,302 ; September 30, 2023 — 13,041 22,936 20,748 Retained earnings 1,305,591 1,177,834 Common stock equity 2,179,225 1,990,735 Long-term debt 2,726,221 2,768,017 Total capitalization 4,905,446 4,758,752 CURRENT LIABILITIES Current maturities of long-term debt 148,375 116,155 Short-term debt 196,150 252,100 Natural gas purchases payable 64,455 51,277 Natural gas purchases payable to related parties 859 859 Deferred revenue 109,698 61,404 Accounts payable and other 127,159 151,790 Dividends payable 41,290 40,981 Accrued taxes 16,048 10,090 Regulatory liabilities 33,163 32,287 New Jersey Clean Energy Program 6,827 15,804 Derivatives, at fair value 10,725 16,145 Operating lease liabilities 4,780 4,772 Restricted broker margin accounts 4,689 8,029 Customers' credit balances and deposits 24,878 44,910 Total current liabilities 789,096 806,603 NONCURRENT LIABILITIES Deferred income taxes 330,805 285,427 Deferred investment tax credits 2,295 2,434 Deferred revenue 612 659 Derivatives, at fair value 13,791 7,967 Manufactured gas plant remediation 157,813 169,390 Postemployment employee benefit liability 42,333 102,528 Regulatory liabilities 178,276 180,458 Operating lease liabilities 150,971 148,023 Asset retirement obligations 62,817 61,993 Other noncurrent liabilities 13,122 13,262 Total noncurrent liabilities 952,835 972,141 Commitments and contingent liabilities (Note 13) Total capitalization and liabilities $ 6,647,377 $ 6,537,496

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 Net income — — — — — 120,812 120,812 Other comprehensive income — — — 9,886 — — 9,886 Common stock issued: Incentive compensation plan 25 64 1,178 — — — 1,242 Dividend reinvestment plan 84 209 3,446 — — — 3,655 Waiver discount 435 1,085 16,834 — — — 17,919 Cash dividend declared ($ .42 per share) — — — — — ( 41,290 ) ( 41,290 ) Treasury stock and other ( 1 ) — — — 800 — 800 Balance as of March 31, 2024 98,745 $ 246,367 $ 604,009 $ 322 $ 22,936 $ 1,305,591 $ 2,179,225 (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 — —

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View this 10-Q filing on SEC EDGAR