NJ Resources Files Q1 2025 10-Q

TL;DR

NJR Q1 2025 10-Q filed. Financials look solid.

AI Summary

New Jersey Resources Corp. reported its Q1 2025 results for the period ending December 31, 2024. The company's financial performance for this quarter is detailed in the 10-Q filing. Specific financial figures and operational updates are provided within the document.

Why It Matters

This filing provides investors with the latest financial performance and operational details for New Jersey Resources Corp., crucial for understanding the company's current standing and future prospects.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Players & Entities

• NEW JERSEY RESOURCES CORP (company) — Filer
• 0000356309 (company) — Central Index Key
• 20241231 (date) — Fiscal Period End
• 20250204 (date) — Filing Date

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
• $575M — TERMS (cont.) NJR Credit Facility The $575M unsecured committed credit facility exp

Filing Documents

• njr-20241231.htm (10-Q) — 2470KB
• njrex311dec2024.htm (EX-31.1) — 12KB
• njrex312dec2024.htm (EX-31.2) — 12KB
• njrex321dec2024.htm (EX-32.1) — 6KB
• njrex322dec2024.htm (EX-32.2) — 6KB
• njr-20241231_g1.jpg (GRAPHIC) — 46KB
• njr-20241231_g2.jpg (GRAPHIC) — 124KB
• njr-20241231_g3.jpg (GRAPHIC) — 78KB
• 0000356309-25-000024.txt ( ) — 13503KB
• njr-20241231.xsd (EX-101.SCH) — 74KB
• njr-20241231_cal.xml (EX-101.CAL) — 113KB
• njr-20241231_def.xml (EX-101.DEF) — 482KB
• njr-20241231_lab.xml (EX-101.LAB) — 880KB
• njr-20241231_pre.xml (EX-101.PRE) — 661KB
• njr-20241231_htm.xml (XML) — 2540KB

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 21 Note 8. Earnings Per Share 21 Note 9. Debt 22 Note 10. Employee Benefit Plans 23 Note 11. Income Taxes 23 Note 12. Leases 24 Note 13. Commitments and Contingent Liabilities 26 Note 14. Reporting Segment and Other Operations Data 28 Note 15. Related Party Transactions 29 Note 16. Dispositions 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 31 Natural Gas Distribution Segment 34 Clean Energy Ventures Segment 42 Energy Services Segment 44 Storage and Transportation Segment 47 Home Services and Other Business Operations 48 Liquidity and Capital Resources 49

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 58

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 ADI Administratively Determined Incentive 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 CSI Competitive Solar Incentive 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 in 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

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended December 31, (Thousands, except per share data) 2024 2023 OPERATING REVENUES Utility $ 333,427 $ 293,093 Nonutility 154,934 174,117 Total operating revenues 488,361 467,210 OPERATING EXPENSES Natural gas purchases: Utility 127,680 116,120 Nonutility 67,808 59,477 Related parties 1,718 1,879 Operation and maintenance 88,632 94,439 Regulatory rider expenses 22,476 19,189 Depreciation and amortization 45,329 40,287 Gain on sale of assets ( 54,859 ) — Total operating expenses 298,784 331,391 OPERATING INCOME 189,577 135,819 Other income, net 11,617 6,341 Interest expense, net of capitalized interest 33,891 31,473 INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES 167,303 110,687 Income tax provision 37,384 22,936 Equity in earnings of affiliates 1,400 1,660 NET INCOME $ 131,319 $ 89,411 EARNINGS PER COMMON SHARE Basic $ 1.32 $ 0.91 Diluted $ 1.31 $ 0.91 WEIGHTED AVERAGE SHARES OUTSTANDING Basic 99,855 97,869 Diluted 100,478 98,563 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended December 31, (Thousands) 2024 2023 Net income $ 131,319 $ 89,411 Other comprehensive income Reclassifications of losses to net income on derivatives designated as hedging instruments, net of tax of $( 79 ) and $( 79 ), respectively 263 264 Adjustment to postemployment benefit obligation, net of tax of $ 58 and $( 40 ), respectively ( 195 ) 131 Other comprehensive income $ 68 $ 395 Comprehensive income $ 131,387 $ 89,806 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) 2024 2023 CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES Net income $ 131,319 $ 89,411 Adjustments to reconcile net income to cash flows from operating activities Unrealized loss (gain) on derivative instruments 6,368 ( 5,400 ) Gain on sale of assets ( 54,859 ) — Depreciation and amortization 45,329 40,287 Amortization of acquired wholesale energy contracts — 111 Allowance for equity used during construction ( 1,086 ) ( 1,482 ) Allowance for doubtful accounts 194 ( 1,575 ) Non cash lease expense 1,071 1,152 Deferred income taxes 20,522 18,758 Equivalent value of ITCs recognized on equipment financing ( 4,352 ) ( 2,888 ) Manufactured gas plant remediation costs ( 1,126 ) ( 4,575 ) Cost of removal - asset retirement obligations ( 432 ) ( 382 ) Contributions to postemployment benefit plans ( 227 ) ( 1,996 ) Taxes related to stock-based compensation 1,805 1,185 Changes in: Components of working capital ( 187,879 ) ( 97,615 ) Other noncurrent assets and liabilities 34,398 11,424 Cash flows (used in) from operating activities ( 8,955 ) 46,415 CASH FLOWS USED IN INVESTING ACTIVITIES Expenditures for: Utility plant ( 99,143 ) ( 71,166 ) Solar equipment ( 33,476 ) ( 25,766 ) Storage and Transportation and other ( 8,476 ) ( 8,713 ) Cost of removal ( 10,775 ) ( 8,977 ) Distribution from equity investees in excess of equity in earnings 99 830 Proceeds from sale of assets 132,500 — Cash flows used in investing activities ( 19,271 ) ( 113,792 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from long-term debt 100,000 50,000 Payments of long-term debt ( 107,676 ) ( 6,188 ) Proceeds from short-term debt, net 45,200 16,550 Proceeds from sale leaseback transactions - solar 12,567 24,394 Proceeds from sale leaseback transactions - natural gas meters 11,714 8,814 Payments of common stock dividends

FINANCIAL STATEMENTS (Continued)

ITEM 1. FINANCIAL STATEMENTS (Continued) CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS (Unaudited) (Thousands) December 31, 2024 September 30, 2024 PROPERTY, PLANT AND EQUIPMENT Utility plant, at cost $ 4,280,115 $ 4,221,395 Construction work in progress 272,360 233,295 Nonutility plant and equipment, at cost 1,724,166 1,834,956 Construction work in progress 219,905 206,869 Total property, plant and equipment 6,496,546 6,496,515 Accumulated depreciation and amortization, utility plant ( 811,164 ) ( 786,594 ) Accumulated depreciation and amortization, nonutility plant and equipment ( 257,139 ) ( 306,698 ) Property, plant and equipment, net 5,428,243 5,403,223 CURRENT ASSETS Cash and cash equivalents 1,908 1,017 Customer accounts receivable Billed 211,036 105,531 Unbilled revenues 117,280 20,094 Allowance for doubtful accounts ( 8,297 ) ( 8,506 ) Regulatory assets 64,689 73,070 Natural gas in storage, at average cost 192,046 199,125 Materials and supplies, at average cost 40,316 38,484 Prepaid expenses 19,175 11,754 Prepaid taxes 31,862 67,066 Derivatives, at fair value 5,073 6,813 Restricted broker margin accounts 23,003 13,243 Other current assets 32,613 26,904 Total current assets 730,704 554,595 NONCURRENT ASSETS Investments in equity method investees 101,609 101,744 Regulatory assets 612,595 609,192 Operating lease assets 183,252 184,485 Derivatives, at fair value 1,872 806 Software costs 10,561 10,522 Deferred income taxes 23,303 20,751 Postemployment employee benefit assets 23,014 24,660 Other noncurrent assets 78,812 71,667 Total noncurrent assets 1,035,018 1,023,827 Total assets $ 7,193,965 $ 6,981,645 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, 2024 September 30, 2024 CAPITALIZATION Common stock, $ 2.50 par value; authorized 150,000,000 shares; outstanding shares December 31, 2024 — 100,191,159 ; September 30, 2024 — 99,461,448 $ 249,984 $ 248,159 Premium on common stock 663,882 633,811 Accumulated other comprehensive loss, net of tax ( 6,453 ) ( 6,521 ) Treasury stock at cost and other; shares December 31, 2024 — 16,658 ; September 30, 2024 — 16,302 20,188 26,220 Retained earnings 1,385,083 1,298,774 Common stock equity 2,312,684 2,200,443 Long-term debt 2,989,473 2,879,464 Total capitalization 5,302,157 5,079,907 CURRENT LIABILITIES Current maturities of long-term debt 91,558 189,006 Short-term debt 337,000 291,800 Natural gas purchases payable 88,513 57,515 Natural gas purchases payable to related parties 881 875 Deferred revenue 22,222 21,572 Accounts payable and other 112,529 169,232 Dividends payable 45,009 44,752 Accrued taxes 10,593 10,593 Regulatory liabilities 32,610 32,981 New Jersey Clean Energy Program 16,523 18,491 Derivatives, at fair value 13,463 6,271 Operating lease liabilities 5,177 4,945 Restricted broker margin accounts — 1,146 Customers' credit balances and deposits 42,587 38,595 Total current liabilities 818,665 887,774 NONCURRENT LIABILITIES Deferred income taxes 383,362 358,783 Deferred investment tax credits 2,086 2,156 Deferred revenue 32,451 3,095 Derivatives, at fair value 12,321 11,490 Manufactured gas plant remediation 161,024 161,650 Postemployment employee benefit liability 71,143 64,609 Regulatory liabilities 174,726 175,847 Operating lease liabilities 158,583 159,303 Asset retirement obligations 67,278 66,698 Other noncurrent liabilities 10,169 10,333 Total noncurrent liabilities 1,073,143 1,013,964 Commitments and contingent liabilities (Note 13) Total capitalization and liabilities $ 7,193,965 $ 6

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, 2024 99,461 $ 248,159 $ 633,811 $ ( 6,521 ) $ 26,220 $ 1,298,774 $ 2,200,443 Net income — — — — — 131,319 131,319 Other comprehensive income — — — 68 — — 68 Common stock issued: Incentive compensation plan 232 581 7,661 — — — 8,242 Dividend reinvestment plan 80 199 3,545 — — — 3,744 Waiver discount 418 1,045 18,865 — — — 19,910 Cash dividend declared ($ .45 per share) — — — — — ( 45,010 ) ( 45,010 ) Treasury stock and other — — — — ( 6,032 ) — ( 6,032 ) Balance as of December 31, 2024 100,191 $ 249,984 $ 663,882 $ ( 6,453 ) $ 20,188 $ 1,385,083 $ 2,312,684 (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 (1) 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 (1) Certain shares sold through the DRP issued from treasury stock are at average cost, which may differ from the actual market price paid. See Notes to Unaudited Condensed Consolidated Financial Statements 8 New Jersey Resources Corporation Part I NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. NATURE OF THE BUSINESS The

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