NJ Resources Reports Q3 2024 Results

TL;DR

**NJR Q3 earnings out, fiscal year ends Sept 30. Check the 10-Q for details.**

AI Summary

New Jersey Resources Corp. reported its third-quarter results for the period ending June 30, 2024. The company's filing indicates its fiscal year ends on September 30th. Specific financial figures for the quarter and year-to-date are detailed within the 10-Q report.

Why It Matters

This filing provides investors and analysts with the latest financial performance data for New Jersey Resources Corp., crucial for understanding the company's operational health and future outlook.

Risk Assessment

Risk Level: low — This is a standard quarterly earnings report (10-Q) for a publicly traded company, providing routine financial disclosures.

Key Numbers

• 0930 — Fiscal Year End (Indicates when the company's financial year concludes.)

Key Players & Entities

• NEW JERSEY RESOURCES CORP (company) — Filer
• 0000356309-24-000043 (filing_id) — Accession Number
• 20240630 (date) — Conformed Period of Report
• 20240806 (date) — Filed as of Date
• 4924 (sic_code) — Standard Industrial Classification
• 7329381000 (phone_number) — Business Phone

FAQ

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-20240630.htm (10-Q) — 3300KB
• njrex311jun2024.htm (EX-31.1) — 12KB
• njrex312jun2024.htm (EX-31.2) — 12KB
• njrex321jun2024.htm (EX-32.1) — 6KB
• njrex322jun2024.htm (EX-32.2) — 6KB
• njr-20240630_g1.jpg (GRAPHIC) — 186KB
• njr-20240630_g2.jpg (GRAPHIC) — 128KB
• njr-20240630_g3.jpg (GRAPHIC) — 89KB
• 0000356309-24-000043.txt ( ) — 16320KB
• njr-20240630.xsd (EX-101.SCH) — 74KB
• njr-20240630_cal.xml (EX-101.CAL) — 115KB
• njr-20240630_def.xml (EX-101.DEF) — 475KB
• njr-20240630_lab.xml (EX-101.LAB) — 879KB
• njr-20240630_pre.xml (EX-101.PRE) — 656KB
• njr-20240630_htm.xml (XML) — 3417KB

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 10 Note 1. Nature of the Business 10 Note 2. Summary of Significant Accounting Policies 10 Note 3. Revenue 12 Note 4. Regulation 17 Note 5. Derivative Instruments 19 Note 6. Fair Value 23 Note 7. Investments in Equity Investees 25 Note 8. Earnings Per Share 25 Note 9. Debt 26 Note 10. Employee Benefit Plans 27 Note 11. Income Taxes 27 Note 12. Leases 28 Note 13. Commitments and Contingent Liabilities 30 Note 14. Reporting Segment and Other Operations Data 31 Note 15. Related Party Transactions 34

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 36 Natural Gas Distribution Segment 39 Clean Energy Ventures Segment 47 Energy Services Segment 49 Storage and Transportation Segment 54 Home Services and Other Business Operations 55 Liquidity and Capital Resources 56

Quantitative and Qualitative Disclosures About Market Risk

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk 62

Controls and Procedures

ITEM 4. Controls and Procedures 64

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

ITEM 1. Legal Proceedings 66

Risk Factors

ITEM 1A. Risk Factors 66

Unregistered Sale of Equity Securities and Use of Proceeds

ITEM 2. Unregistered Sale of Equity Securities and Use of Proceeds 66

Other Information

ITEM 5. Other Information 66

Exhibits

ITEM 6. Exhibits 67

Signatures

Signatures 68 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 Nine Months Ended June 30, June 30, (Thousands, except per share data) 2024 2023 2024 2023 OPERATING REVENUES Utility $ 157,773 $ 144,971 $ 913,729 $ 902,880 Nonutility 117,863 119,104 487,030 728,789 Total operating revenues 275,636 264,075 1,400,759 1,631,669 OPERATING EXPENSES Natural gas purchases: Utility 53,372 42,344 373,839 381,160 Nonutility 60,971 75,917 225,466 468,351 Related parties 1,729 1,870 5,407 5,467 Operation and maintenance 104,378 94,213 306,040 272,809 Regulatory rider expenses 8,343 6,120 56,761 47,525 Depreciation and amortization 40,907 38,877 121,269 113,650 Total operating expenses 269,700 259,341 1,088,782 1,288,962 OPERATING INCOME 5,936 4,734 311,977 342,707 Other income, net 9,555 5,711 31,316 15,145 Interest expense, net of capitalized interest 31,169 30,119 94,263 89,871 (LOSS) INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES ( 15,678 ) ( 19,674 ) 249,030 267,981 Income tax (benefit) provision ( 2,764 ) ( 20,505 ) 54,119 43,059 Equity in earnings of affiliates 1,340 701 3,738 2,778 NET (LOSS) INCOME $ ( 11,574 ) $ 1,532 $ 198,649 $ 227,700 (LOSS) EARNINGS PER COMMON SHARE Basic $( 0.12 ) $ 0.02 $ 2.02 $ 2.35 Diluted $( 0.12 ) $ 0.02 $ 2.00 $ 2.33 WEIGHTED AVERAGE SHARES OUTSTANDING Basic 98,983 97,168 98,409 96,849 Diluted 98,983 97,886 99,213 97,538 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2024 2023 2024 2023 Net (loss) income $ ( 11,574 ) $ 1,532 $ 198,649 $ 227,700 Other comprehensive (loss) income, net of tax Reclassifications of losses to net income on derivatives designated as hedging instruments, net of tax of $( 79 ), $( 79 ), $( 238 ) and $( 238 ), respectively 264 263 790 790 Adjustment to postemployment benefit obligation, net of tax of $ 112 , $( 12 ), $(

FINANCIAL STATEMENTS (Continued)

ITEM 1. FINANCIAL STATEMENTS (Continued) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended June 30, (Thousands) 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 198,649 $ 227,700 Adjustments to reconcile net income to cash flows from operating activities Unrealized loss (gain) on derivative instruments 23,860 ( 30,502 ) Depreciation and amortization 121,269 113,650 Amortization of acquired wholesale energy contracts 187 1,781 Allowance for equity used during construction ( 5,368 ) ( 5,054 ) Allowance for doubtful accounts 1,849 1,397 Non cash lease expense 3,611 2,607 Deferred income taxes 49,598 11,026 Equivalent value of ITCs recognized on equipment financing ( 12,600 ) ( 1,232 ) Manufactured gas plant remediation costs ( 19,464 ) ( 6,284 ) Cost of removal - asset retirement obligations ( 1,145 ) ( 967 ) Contributions to postemployment benefit plans ( 2,438 ) ( 1,133 ) Taxes related to stock-based compensation 1,186 554 Changes in: Components of working capital 21,519 22,229 Other noncurrent assets and liabilities ( 17,819 ) 52,126 Cash flows from operating activities 362,894 387,898 CASH FLOWS USED IN INVESTING ACTIVITIES Expenditures for: Utility plant ( 259,125 ) ( 248,507 ) Solar equipment ( 74,096 ) ( 68,604 ) Storage and Transportation and other ( 33,013 ) ( 34,384 ) Cost of removal ( 29,552 ) ( 28,719 ) Distribution from equity investees in excess of equity in earnings 3,202 2,036 Cash flows used in investing activities ( 392,584 ) ( 378,178 ) CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from long-term debt 175,000 175,000 Payments of long-term debt ( 89,555 ) ( 15,698 ) Payments of term loan — ( 150,000 ) Proceeds from (payments of) short-term debt, net 2,700 ( 128,725 ) Proceeds from sale leaseback transactions - solar 24,394 163,619 Proceeds from sale leaseback transactions - natural gas meters 8,814 8,441 Payments of common stock dividends ( 123,446 ) ( 112,9

FINANCIAL STATEMENTS (Continued)

ITEM 1. FINANCIAL STATEMENTS (Continued) CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS (Unaudited) (Thousands) June 30, 2024 September 30, 2023 PROPERTY, PLANT AND EQUIPMENT Utility plant, at cost $ 4,132,835 $ 3,843,037 Construction work in progress 203,460 237,428 Nonutility plant and equipment, at cost 1,804,670 1,767,306 Construction work in progress 205,979 142,768 Total property, plant and equipment 6,346,944 5,990,539 Accumulated depreciation and amortization, utility plant ( 770,867 ) ( 714,087 ) Accumulated depreciation and amortization, nonutility plant and equipment ( 291,143 ) ( 254,397 ) Property, plant and equipment, net 5,284,934 5,022,055 CURRENT ASSETS Cash and cash equivalents 22,399 954 Customer accounts receivable Billed 128,264 97,540 Unbilled revenues 20,564 19,100 Allowance for doubtful accounts ( 10,738 ) ( 11,036 ) Regulatory assets 89,572 73,587 Natural gas in storage, at average cost 132,244 199,501 Materials and supplies, at average cost 31,635 27,022 Prepaid expenses 13,643 9,741 Prepaid taxes 54,880 43,046 Derivatives, at fair value 4,771 30,755 Restricted broker margin accounts 18,894 20,796 Other current assets 28,266 21,071 Total current assets 534,394 532,077 NONCURRENT ASSETS Investments in equity method investees 100,824 104,134 Regulatory assets 557,280 584,830 Operating lease assets 185,506 175,740 Derivatives, at fair value 979 1,564 Software costs 10,254 8,375 Deferred income taxes 22,575 28,383 Postemployment employee benefit assets 18,585 18,684 Other noncurrent assets 68,790 61,654 Total noncurrent assets 964,793 983,364 Total assets $ 6,784,121 $ 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) June 30, 2024 September 30, 2023 CAPITALIZATION Common stock, $ 2.50 par value; authorized 150,000,000 shares; outstanding shares June 30, 2024 — 99,091,574 ; September 30, 2023 — 97,584,455 $ 247,234 $ 243,458 Premium on common stock 618,140 558,654 Accumulated other comprehensive income (loss), net of tax 217 ( 9,959 ) Treasury stock at cost and other; shares June 30, 2024 — 16,302 ; September 30, 2023 — 13,041 25,027 20,748 Retained earnings 1,252,400 1,177,834 Common stock equity 2,143,018 1,990,735 Long-term debt 2,793,672 2,768,017 Total capitalization 4,936,690 4,758,752 CURRENT LIABILITIES Current maturities of long-term debt 197,448 116,155 Short-term debt 254,800 252,100 Natural gas purchases payable 53,371 51,277 Natural gas purchases payable to related parties 875 859 Deferred revenue 99,566 61,404 Accounts payable and other 144,579 151,790 Dividends payable 41,618 40,981 Accrued taxes 8,614 10,090 Regulatory liabilities 31,573 32,287 New Jersey Clean Energy Program 20,265 15,804 Derivatives, at fair value 7,632 16,145 Operating lease liabilities 5,125 4,772 Restricted broker margin accounts — 8,029 Customers' credit balances and deposits 28,881 44,910 Total current liabilities 894,347 806,603 NONCURRENT LIABILITIES Deferred income taxes 331,829 285,427 Deferred investment tax credits 2,226 2,434 Deferred revenue 588 659 Derivatives, at fair value 11,962 7,967 Manufactured gas plant remediation 153,818 169,390 Postemployment employee benefit liability 42,308 102,528 Regulatory liabilities 176,720 180,458 Operating lease liabilities 159,988 148,023 Asset retirement obligations 63,245 61,993 Other noncurrent liabilities 10,400 13,262 Total noncurrent liabilities 953,084 972,141 Commitments and contingent liabilities (Note 13) Total capitalization and liabilities $ 6,784,121 $ 6,537,496 See Note

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 Net loss — — — — — ( 11,574 ) ( 11,574 ) Other comprehensive loss — — — ( 105 ) — — ( 105 ) Common stock issued: Dividend reinvestment plan (1) 85 212 3,338 — — — 3,550 Waiver discount 262 655 10,793 — — — 11,448 Cash dividend declared ($ .42 per share) — — — — — ( 41,617 ) ( 41,617 ) Treasury stock and other — — — — 2,091 — 2,091 Balance as of June 30, 2024 99,092 $ 247,234 $ 618,140 $ 217 $ 25,027 $ 1,252,400 $ 2,143,018 8 New Jersey Resources Corporation Part I

FINANCIAL STATEMENTS (Continued)

ITEM 1. FINANCIAL STATEMENTS (Continued) (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 Net income — — — — — 110,247 110,247 Other comprehensive income — — — 305 — — 305 Common stock issued: Incentive plan 29 74 1,096 — — — 1,170 Dividend reinvestment plan 77 — 877 — 2,794 — 3,671 Cash dividend declared ($ .39 per share) — — — — — ( 37,791 ) ( 37,791 ) Treasury stock and other ( 8 ) — — — 439 — 439 Balance as of March 31, 2023 96,901 $ 241,919 $ 529,819 $ ( 4,217 ) $ 15,075 $ 1,218,240 $ 2,000,836 Net income — — — — — 1,532 1,532 Other comprehensive income — — — 304 — — 304 Common stock issued: Incentive compensation plan 3 7 112 — — — 119 Dividend reinvestment plan 73 13 1,209 — 2,537 — 3,759 Waiver discount 519 1,298 23,590 — — — 24,888 Cash dividend declared ($ .39 per share) — — — — — ( 37,982 ) ( 37,982 ) Treasury stock and other — — — — 1,786 — 1,786 Balance as of June 30, 2023 97,496 $ 243,237 $ 554,730 $ ( 3,913 ) $ 19,398 $ 1,181,790 $ 1,995,242 (1) Certain shares sold through the DRP issued from treasury stock are at average cost, which may differ from the actual market price paid. 9 New Jersey Resources Corporation Part I NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. NATURE OF THE BUSINESS The Comp

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