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Published: 2022-02-03 06:55:21 ET
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EX-99.1 2 brhc10033404_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1


NEW JERSEY RESOURCES REPORTS FIRST-QUARTER FISCAL 2022 RESULTS

WALL, N.J., February 3, 2022 — Today, New Jersey Resources Corporation (NYSE: NJR) reported results for the first-quarter of fiscal 2022. Highlights include:

•
Consolidated net income of $111.3 million for the three months ended December 31, 2021, compared with $81.0 million for the same period last year
•
Consolidated net financial earnings (NFE), a non-GAAP financial measure, of $65.8 million, or $0.69 per share for the three months ended December 31, 2021, compared with NFE of $44.7 million, or $0.46 per share, for the same period last year
•
Re-affirmed fiscal 2022 net financial earnings per share (NFEPS) guidance range of $2.20 to $2.30
•
New Jersey Natural Gas (NJNG) received approval from the New Jersey Board of Public Utilities (BPU) on the settlement of its rate case, authorizing a $79.3 million increase to its base rates with new rates effective on December 1, 2021
•
NJNG's Hydrogen project was completed and began producing green hydrogen in October 2021 and was included in the settlement of the base rate case
•
A new North Zone delivery point for Adelphia Gateway began operations in January 2022
•
Asset Management Agreements (AMAs)* at Energy Services became effective during the first-quarter

First-quarter fiscal 2022 net income totaled $111.3 million, or $1.16 per share, compared with $81.0 million, or $0.84 per share, during the same period in fiscal 2021. First-quarter fiscal 2022 NFE totaled $65.8 million, or $0.69 per share, compared to NFE of $44.7 million, or $0.46 per share, during the same period in fiscal 2021.

"NJR is off to good start in fiscal 2022 with new base rates at NJNG and more stable fee-based revenue at Energy Services,” said Steve Westhoven, President and CEO of NJR. “We are confident in our ability to achieve our fiscal 2022 net financial earnings guidance."

Key Performance Metrics
 
   
Three Months Ended
December 31,
  
($ in Thousands)
  
2021
    
2020
  
Net income
  
$
111,312
    
$
81,045
  
Basic EPS
  
$
1.16
    
$
0.84
  
Net financial earnings
  
$
65,770
    
$
44,657
  
Basic net financial earnings per share
  
$
0.69
    
$
0.46
  
 
*On December 16, 2020, Energy Services entered into a series of Asset Management Agreements (AMAs) with an investment grade public utility, under which the utility is obligated to purchase and Energy Services may deliver natural gas in exchange for aggregate contracted fees of approximately $500.0 million payable in cash to Energy Services over 10 years. The AMAs include a series of initial and permanent releases that commenced in November 2021.

 NJR Reports First Quarter Fiscal 2022 Results
 Page  2  of 13
A reconciliation of net income to NFE for the three months ended December 31, 2021 and 2020, is provided below.
   
Three Months Ended
December 31,
  
(Thousands)
  
2021
    
2020
  
Net income
  
$
111,312
    
$
81,045
  
Add:
                
Unrealized (gain) on derivative instruments and related transactions
    
(82,191
)
    
(37,491
)
Tax effect
    
19,536
      
8,913
  
Effects of economic hedging related to natural gas inventory
    
23,577
      
(7,532
)
Tax effect
    
(5,603
)
    
1,790
  
Net income to NFE tax adjustment
    
(861
)
    
(2,068
)
Net financial earnings
  
$
65,770
    
$
44,657
  
                 
Weighted Average Shares Outstanding
                
Basic
    
95,944
      
96,114
  
Diluted
    
96,356
      
96,415
  
                 
Basic earnings per share
  
$
1.16
    
$
0.84
  
Add:
                
Unrealized (gain) on derivative instruments and related transactions
    
(0.86
)
    
(0.39
)
Tax effect
    
0.21
      
0.09
  
Effects of economic hedging related to natural gas inventory
    
0.25
      
(0.08
)
Tax effect
    
(0.06
)
    
0.02
  
Net income to NFE tax adjustment
    
(0.01
)
    
(0.02
)
Basic net financial earnings per share
  
$
0.69
    
$
0.46
  

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 may exclude 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. For the three months ended December 31, 2021 and 2020, there were no impairments of equity method investments recorded to earnings. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE.

 NJR Reports First Quarter Fiscal 2022 Results
 Page  3  of 13
A table detailing NFE for the three months ended December 31, 2021 and 2020, is provided below.

Net Financial Earnings (Loss) by Business Unit
 
     
Three Months Ended
December 31,
   
(Thousands)
  
2021
    
2020
  
New Jersey Natural Gas
  
$
51,080
    
$
49,467
  
Clean Energy Ventures
    
(6,821
)
    
(10,274
)
Storage and Transportation
    
2,962
      
3,508
  
Energy Services
    
17,567
      
1,500
  
Home Services and Other
    
447
      
(62
)
Subtotal
    
65,235
      
44,139
  
Eliminations
    
535
      
518
  
Total
  
$
65,770
    
$
44,657
  

Fiscal 2022 NFE Guidance:

NJR reaffirmed fiscal 2022 NFE guidance of $2.20 to $2.30 per share, 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 Services
9 to 11 percent
Home Services and Other
0 to 1 percent
                                                                           
In providing fiscal 2022 NFE guidance, 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 first-quarter fiscal 2022 NFE of $51.1 million, compared to NFE of $49.5 million during the same period in fiscal 2021. The increase in the first-quarter was due primarily to the deferral of a portion of pandemic related bad debt costs incurred of $10.7 million through the July 2, 2020 BPU deferral order, and the base rate increase resulting from NJNG's recent rate case settlement, partially offset by lower other income, higher depreciation and interest expense.

 NJR Reports First Quarter Fiscal 2022 Results
 Page  4  of 13
Customer Growth:

•
NJNG added 1,730 new customers during the first-quarter of fiscal 2022, compared with 1,948 in fiscal 2021. The decrease in customer additions was due primarily to slower growth in the new construction market during the first quarter of fiscal 2022.

Base Rate Settlement:

•
On November 17, 2021, NJNG received approval from the BPU on its rate case settlement agreement and new rates were effective on December 1, 2021. Under the approved rate case agreement, NJNG's total annual revenue is expected to increase by $79.0 million and 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:

•
NJNG's Infrastructure Investment Program (IIP) is a five-year, $150 million accelerated recovery program that began in fiscal 2021. IIP consists of a series of infrastructure projects designed to enhance the safety and reliability of NJNG's natural gas distribution system. In the first quarter, NJNG spent $5.7 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 the investment in this project was included in the recently completed rate case.

BGSS Incentive Programs:

BGSS incentive programs contributed $3.8 million to utility gross margin in the first quarter, compared with $4.6 million during the same period last year. The decrease for the first-quarter was due primarily to timing differences in the storage incentive program and lower capacity release volumes, partially offset by increased margin from off-system sales.

For more information on utility gross margin, please see "Non-GAAP Financial Information" below.

Energy-Efficiency Programs:

SAVEGREEN invested $12.9 million during the first-quarter of fiscal 2022 to help customers with energy-efficiency upgrades for their homes and businesses. NJNG recovered $6.8 million of its outstanding investments during the first quarter.

Clean Energy Ventures (CEV)

CEV reported first-quarter fiscal 2022 net financial losses of $(6.8) million, compared with net financial loss of $(10.3) million during the same period in fiscal 2021. The improvement was due primarily to increased revenue from the sale of SRECs and higher electric prices in the first-quarter of fiscal 2022.

Solar Investment Update:

•
Placed a solar project into service, adding 1.0 megawatt (MW) to CEV's total installed capacity.

 NJR Reports First Quarter Fiscal 2022 Results
 Page  5  of 13
Storage and Transportation

Storage and Transportation reported first-quarter fiscal 2022 NFE of $3.0 million, compared with NFE of $3.5 million during the same period in fiscal 2021. The decrease in NFE was due primarily to lower earnings from equity affiliates.

Infrastructure Updates:

•
Adelphia Gateway - In January 2022, Adelphia Gateway placed into service a new delivery point and the associated facilities in its North Zone.

Energy Services

Energy Services reported first-quarter fiscal 2022 NFE of $17.6 million, compared with NFE of $1.5 million for the same period last fiscal year. The improved performance was due primarily to the recognition of revenues from the Asset Management Agreements entered into during fiscal 2021 that became effective during the first-quarter.

Home Services and Other Operations

Home Services and Other Operations reported first-quarter fiscal 2022 NFE of $0.4 million compared with a net financial loss of $(0.1) million for the same period in fiscal 2021. The increase was due primarily to higher operating income related to an increase in installation revenue.

Expenditures and Cash Flows:

NJR is committed to maintaining a strong financial profile.

•
During the first-quarter of fiscal 2022, capital expenditures were $152.7 million, including accruals, of which $59.7 million were related to NJNG, compared with $119.3 million, of which $83.9 million were related to NJNG, during the same period in fiscal 2021.

•
During the first-quarter of fiscal 2022, cash flows used in operations were $37.4 million, compared with cash flows from operations of $31.7 million during the same period of fiscal 2021. The decrease in operating cash flows was due primarily to changes in working capital.

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, cash proceeds from the AMAs, projected NFEPS growth rate, results of future rate cases, forecasted contribution of business segments to NJR’s NFE for fiscal 2022, customer growth at NJNG, 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.

 NJR Reports First Quarter Fiscal 2022 Results
 Page  6  of 13
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.

 NJR Reports First Quarter Fiscal 2022 Results
 Page  7  of 13
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 over 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.

 NJR Reports First Quarter Fiscal 2022 Results
 Page  8  of 13
NEW JERSEY RESOURCES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
    
Three Months Ended
December 31,
  
(Thousands, except per share data)
  
2021
    
2020
  
OPERATING REVENUES
            
Utility
  
$
274,435
    
$
195,729
  
Nonutility
    
401,407
      
258,576
  
Total operating revenues
    
675,842
      
454,305
  
OPERATING EXPENSES
                
Gas purchases
                
Utility
    
122,269
      
56,145
  
Nonutility
    
278,794
      
173,247
  
Related parties
    
1,846
      
1,734
  
Operation and maintenance
    
68,984
      
73,636
  
Regulatory rider expenses
    
16,671
      
10,701
  
Depreciation and amortization
    
30,393
      
27,362
  
Total operating expenses
    
518,957
      
342,825
  
OPERATING INCOME
    
156,885
      
111,480
  
Other income, net
    
4,136
      
4,117
  
Interest expense, net of capitalized interest
    
19,477
      
19,786
  
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES
    
141,544
      
95,811
  
Income tax provision
    
30,807
      
17,441
  
Equity in earnings of affiliates
    
575
      
2,675
  
NET INCOME
  
$
111,312
    
$
81,045
  
                 
EARNINGS PER COMMON SHARE
                
Basic
  
$
1.16
    
$
0.84
  
Diluted
  
$
1.16
    
$
0.84
  
                 
WEIGHTED AVERAGE SHARES OUTSTANDING
                
Basic
    
95,944
      
96,114
  
Diluted
    
96,356
      
96,415
  
                 

 NJR Reports First Quarter Fiscal 2022 Results
 Page  9  of 13
RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES
(Unaudited)
   
   
Three Months Ended
December 31,
  
(Thousands)
  
2021
    
2020
  
NEW JERSEY RESOURCES
            
   
A reconciliation of net income, the closest GAAP financial measurement, to net financial earnings is as follows:
  
             
Net income
  
$
111,312
    
$
81,045
  
Add:
                
Unrealized (gain) on derivative instruments and related transactions
    
(82,191
)
    
(37,491
)
Tax effect
    
19,536
      
8,913
  
Effects of economic hedging related to natural gas inventory
    
23,577
      
(7,532
)
Tax effect
    
(5,603
)
    
1,790
  
Net income to NFE tax adjustment
    
(861
)
    
(2,068
)
Net financial earnings
  
$
65,770
    
$
44,657
  
                 
Weighted Average Shares Outstanding
                
Basic
    
95,944
      
96,114
  
Diluted
    
96,356
      
96,415
  
                 
A reconciliation of basic earnings per share, the closest GAAP financial measurement, to basic net financial earnings per share is as follows:
  
                 
Basic earnings per share
  
$
1.16
    
$
0.84
  
Add:
                
Unrealized (gain) on derivative instruments and related transactions
  
$
(0.86
)
  
$
(0.39
)
Tax effect
  
$
0.21
    
$
0.09
  
Effects of economic hedging related to natural gas inventory
  
$
0.25
    
$
(0.08
)
Tax effect
  
$
(0.06
)
  
$
0.02
  
Net income to NFE tax adjustment
  
$
(0.01
)
  
$
(0.02
)
Basic NFE per share
  
$
0.69
    
$
0.46
  
                 
NATURAL GAS DISTRIBUTION
                
                 
A reconciliation of operating revenue, the closest GAAP financial measurement, to utility gross margin is as follows:
  
                 
Operating revenues
  
$
274,772
    
$
195,729
  
Less:
                
Gas purchases
    
124,594
      
59,309
  
Regulatory rider expense
    
16,671
      
10,701
  
Utility gross margin
  
$
133,507
    
$
125,719
  
                 

 NJR Reports First Quarter Fiscal 2022 Results
 Page  10  of 13
   
Three Months Ended
  
(Unaudited)
  
December 31,
  
(Thousands)
  
2021
    
2020
  
ENERGY SERVICES
            
             
The following table is a computation of financial margin:
            
             
Operating revenues
  
$
369,244
    
$
229,477
  
Less: Gas purchases
    
278,687
      
173,837
  
Add:
                
Unrealized (gain) on derivative instruments and related transactions
    
(85,647
)
    
(38,781
)
Effects of economic hedging related to natural gas inventory
    
23,577
      
(7,532
)
Financial margin
  
$
28,487
    
$
9,327
  
                 
A reconciliation of operating income, the closest GAAP financial measurement, to financial margin is as follows:
  
                 
Operating income
  
$
86,778
    
$
51,582
  
Add:
                
Operation and maintenance expense
    
3,751
      
4,016
  
Depreciation and amortization
    
28
      
42
  
Subtotal
    
90,557
      
55,640
  
Add:
                
Unrealized (gain) on derivative instruments and related transactions
    
(85,647
)
    
(38,781
)
Effects of economic hedging related to natural gas inventory
    
23,577
      
(7,532
)
Financial margin
  
$
28,487
    
$
9,327
  
                 
A reconciliation of net income to net financial earnings is as follows:
                
                 
Net income
  
$
65,744
    
$
38,872
  
Add:
                
Unrealized (gain) on derivative instruments and related transactions
    
(85,647
)
    
(38,781
)
Tax effect
    
20,357
      
9,219
  
Effects of economic hedging related to natural gas
    
23,577
      
(7,532
)
Tax effect
    
(5,603
)
    
1,790
  
Net income to NFE tax adjustment
    
(861
)
    
(2,068
)
Net financial earnings
  
$
17,567
    
$
1,500
  
                 

 NJR Reports First Quarter Fiscal 2022 Results
 Page  11  of 13
FINANCIAL STATISTICS BY BUSINESS UNIT
(Unaudited)
 
   
Three Months Ended
  
   
December 31,
  
(Thousands, except per share data)
  
2021
    
2020
  
NEW JERSEY RESOURCES
            
             
Operating Revenues
            
Natural Gas Distribution
  
$
274,772
    
$
195,729
  
Clean Energy Ventures
    
10,183
      
6,370
  
Energy Services
    
369,244
      
229,477
  
Storage and Transportation
    
12,143
      
13,104
  
Home Services and Other
    
13,951
      
12,577
  
Sub-total
    
680,293
      
457,257
  
Eliminations
    
(4,451
)
    
(2,952
)
Total
  
$
675,842
    
$
454,305
  
                 
                 
Operating Income (Loss)
                
Natural Gas Distribution
  
$
74,183
    
$
62,912
  
Clean Energy Ventures
    
(3,972
)
    
(8,264
)
Energy Services
    
86,778
      
51,582
  
Storage and Transportation
    
1,876
      
3,689
  
Home Services and Other
    
862
      
1,996
  
Sub-total
    
159,727
      
111,915
  
Eliminations
    
(2,842
)
    
(435
)
Total
  
$
156,885
    
$
111,480
  
                 
                 
Equity in Earnings of Affiliates
                
Storage and Transportation
  
$
1,056
    
$
3,193
  
Eliminations
    
(481
)
    
(518
)
Total
  
$
575
    
$
2,675
  
                 
                 
Net Income (Loss)
                
Natural Gas Distribution
  
$
51,080
    
$
49,467
  
Clean Energy Ventures
    
(6,821
)
    
(10,274
)
Energy Services
    
65,744
      
38,872
  
Storage and Transportation
    
2,962
      
3,508
  
Home Services and Other
    
447
      
(62
)
Sub-total
    
113,412
      
81,511
  
Eliminations
    
(2,100
)
    
(466
)
Total
  
$
111,312
    
$
81,045
  
                 
                 
Net Financial Earnings (Loss)
                
Natural Gas Distribution
  
$
51,080
    
$
49,467
  
Clean Energy Ventures
    
(6,821
)
    
(10,274
)
Energy Services
    
17,567
      
1,500
  
Storage and Transportation
    
2,962
      
3,508
  
Home Services and Other
    
447
      
(62
)
Sub-total
    
65,235
      
44,139
  
Eliminations
    
535
      
518
  
Total
  
$
65,770
    
$
44,657
  
                 
                 
Throughput (Bcf)
                
NJNG, Core Customers
    
24.6
      
24.4
  
NJNG, Off System/Capacity Management
    
25.1
      
25.9
  
Energy Services Fuel Mgmt. and Wholesale Sales
    
63.5
      
104.8
  
Total
    
113.2
      
155.1
  
                 
                 
Common Stock Data
                
Yield at December 31
    
3.5
%
    
3.7
%
Market Price at December 31
  
$
41.06
    
$
35.55
  
Shares Out. at December 31
    
95,962
      
96,139
  
Market Cap. at December 31
  
$
3,940,188
    
$
3,417,741
  
                 

 NJR Reports First Quarter Fiscal 2022 Results
 Page  12  of 13
   
Three Months Ended
  
(Unaudited)
  
December 31,
  
(Thousands, except customer and weather data)
  
2021
    
2020
  
NATURAL GAS DISTRIBUTION
            
             
Utility Gross Margin
            
Operating revenues
  
$
274,772
    
$
195,729
  
Less:
                
Gas purchases
    
124,594
      
59,309
  
Regulatory rider expense
    
16,671
      
10,701
  
Total Utility Gross Margin
  
$
133,507
    
$
125,719
  
                 
Utility Gross Margin, Operating Income and Net Income
                
Residential
  
$
92,605
    
$
85,975
  
Commercial, Industrial & Other
    
19,102
      
17,040
  
Firm Transportation
    
17,282
      
17,288
  
Total Firm Margin
    
128,989
      
120,303
  
Interruptible
    
754
      
838
  
Total System Margin
    
129,743
      
121,141
  
Off System/Capacity Management/FRM/Storage Incentive
    
3,764
      
4,578
  
Total Utility Gross Margin
    
133,507
      
125,719
  
Operation and maintenance expense
    
36,431
      
43,638
  
Depreciation and amortization
    
22,893
      
19,169
  
Operating Income
  
$
74,183
    
$
62,912
  
                 
Net Income
  
$
51,080
    
$
49,467
  
                 
Net Financial Earnings
  
$
51,080
    
$
49,467
  
                 
Throughput (Bcf)
                
Residential
    
12.6
      
13.6
  
Commercial, Industrial & Other
    
2.3
      
2.4
  
Firm Transportation
    
3.6
      
3.9
  
Total Firm Throughput
    
18.5
      
19.9
  
Interruptible
    
6.1
      
4.5
  
Total System Throughput
    
24.6
      
24.4
  
Off System/Capacity Management
    
25.1
      
25.9
  
Total Throughput
    
49.7
      
50.3
  
                 
Customers
                
Residential
    
506,677
      
497,203
  
Commercial, Industrial & Other
    
31,756
      
30,912
  
Firm Transportation
    
28,073
      
31,398
  
Total Firm Customers
    
566,506
      
559,513
  
Interruptible
    
31
      
88
  
Total System Customers
    
566,537
      
559,601
  
Off System/Capacity Management*
    
24
      
30
  
Total Customers
    
566,561
      
559,631
  
*The number of customers represents those active during the last month of the period.
                
Degree Days
                
Actual
    
1,274
      
1,418
  
Normal
    
1,550
      
1,575
  
Percent of Normal
    
82.2
%
    
90.0
%
                 

 NJR Reports First Quarter Fiscal 2022 Results
 Page  13  of 13
   
Three Months Ended
  
(Unaudited)
  
December 31,
  
(Thousands, except customer, SREC, TREC and megawatt)
  
2021
    
2020
  
CLEAN ENERGY VENTURES
            
             
Operating Revenues
            
SREC sales
  
$
2,867
    
$
1,292
  
TREC sales
    
846
      
690
  
Solar electricity sales and other
    
3,654
      
1,720
  
Sunlight Advantage
    
2,816
      
2,668
  
Total Operating Revenues
  
$
10,183
    
$
6,370
  
                 
Depreciation and Amortization
  
$
5,233
    
$
5,433
  
                 
Operating (Loss)
  
$
(3,972
)
  
$
(8,264
)
                 
Income Tax (Benefit)
  
$
(2,046
)
  
$
(3,086
)
                 
Net (Loss)
  
$
(6,821
)
  
$
(10,274
)
                 
Net Financial (Loss)
  
$
(6,821
)
  
$
(10,274
)
                 
Solar Renewable Energy Certificates Generated
    
92,172
      
87,208
  
                 
Solar Renewable Energy Certificates Sold
    
12,200
       6,095
  
                 
Transition Renewable Energy Certificates Generated
    
6,085
      
4,683.0
  
                 
Solar Megawatts Under Construction
    
77.1
      
8.3
  
                 
ENERGY SERVICES
                
                 
Operating Income
                
Operating revenues
  
$
369,244
    
$
229,477
  
Less:
                
Gas purchases
    
278,687
      
173,837
  
Operation and maintenance expense
    
3,751
      
4,016
  
Depreciation and amortization
    
28
      
42
  
Operating Income
  
$
86,778
    
$
51,582
  
                 
Net Income
  
$
65,744
    
$
38,872
  
                 
Financial Margin
  
$
28,487
    
$
9,327
  
                 
Net Financial Earnings
  
$
17,567
    
$
1,500
  
                 
Gas Sold and Managed (Bcf)
    
63.5
      
104.8
  
                 
STORAGE AND TRANSPORTATION
                
                 
Operating Revenues
  
$
12,143
    
$
13,104
  
                 
Equity in Earnings of Affiliates
  
$
1,056
    
$
3,193
  
                 
Operation and Maintenance Expense
  
$
7,430
    
$
6,542
  
                 
Other Income, Net
  
$
2,509
    
$
1,254
  
                 
Interest Expense
  
$
2,136
    
$
3,982
  
                 
Income Tax Provision
  
$
343
    
$
646
  
                 
Net Income
  
$
2,962
    
$
3,508
  
                 
Net Financial Earnings
  
$
2,962
    
$
3,508
  
                 
HOME SERVICES AND OTHER
                
                 
Operating Revenues
  
$
13,951
    
$
12,577
  
                 
Operating Income
  
$
862
    
$
1,996
  
                 
Other Expense, Net
  
$
75
    
$
(824
)
                 
Net Income (Loss)
  
$
447
    
$
(62
)
                 
Net Financial Earnings (Loss)
  
$
447
    
$
(62
)
                 
Total Service Contract Customers at December 31
    
105,373
      
106,857