A.G. Edwards Yield Conference 

May 15, 2007

Laurence M. Downes

Chairman and CEO

Certain statements contained in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 
Forward-looking statements can also be identified by the use of forward-looking terminology such as “may,” “intend,” “expect,” or “continue” or comparable
terminology and are made based upon management’s expectations and beliefs concerning future developments and their potential effect upon New Jersey
Resources (NJR or the Company). There can be no assurance that future developments will be in accordance with management’s expectations or that the
effect of future developments on the Company will be those anticipated by management. 

The Company cautions persons reading or hearing this presentation that the assumptions that form the basis for forward-looking statements regarding
customer growth, customer usage, financial condition, results of operations, cash flows, capital requirements, market risk and other matters for fiscal 2006
and thereafter include many factors that are beyond the Company’s ability to control or estimate precisely, such as estimates of future market conditions, the
behavior of other market participants and changes in the debt and equity capital markets. The factors that could cause actual results to differ materially
from NJR’s expectations include, but are not limited to, such things as weather, economic conditions and demographic changes in the New Jersey
Natural Gas (NJNG) service territory, rate of NJNG customer growth, volatility of natural gas commodity prices, its impact on customer usage and
NJR Energy Service's (NJRES) operations, the impact on the Company’s risk management efforts, including commercial and wholesale credit
risks, changes in rating agency requirements and/or credit ratings and their effect on availability and cost of capital to the Company,  the impact of
regulation (including the regulation of rates), fluctuations in energy-related commodity prices, conversion activity, other marketing efforts, actual
energy usage patterns of NJNG’s customers, the pace of deregulation of retail gas markets, access to adequate supplies of natural gas, the
regulatory and pricing policies of federal and state regulatory agencies, changes due to legislation at the federal and state level, the availability of
an adequate number of appropriate counterparties, sufficient liquidity in the energy trading market and continued access to the capital markets, the
disallowance of recovery of environmental-related expenditures and other regulatory changes, environmental and other litigation,  the effects and
impacts of inflation on NJR andits subsidiaries operations, change in accounting pronouncements issued by the appropriate standard setting
bodies,  terrorist attacks or threatened attacks on energy facilities or unrelated energy companies and other uncertainties. While the Company
periodically reassesses material trends and uncertainties affecting the Company’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, the
Company 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.

Regarding Forward-Looking Statements

Ticker Symbol (NYSE):	NJR
Price Range (52 Weeks)	$42.85 - $55.15
Common Shares Outstanding:	27.8 million
Market Capitalization:	$1.5 billion
Annual Dividend Rate:	$1.52
Dividend Yield:	2.9 percent
Total Assets:	$2.4 billion

NJR at a Glance

Distribution 

Wholesale

Energy Services

Retail and Other

Growing service 

area; close to 

NYC and Phila.

Decoupled rate 

structure

Successful incentive 

programs

Majority of  

Assets and cash flow

Growing transportation 

and storage portfolio

Disciplined Risk 

Management

No speculative trading

Appliance and 

service contracts

Iroquois Pipeline 

equity owner

Steckman Ridge 

Storage Project

NJR Today

Consistent Performance

•New Jersey Resources is a company with …   

–15 consecutive years of growth; an industry record

–A 5-year average annual return of 13.3 percent

–An above average dividend growth rate of 5.6 percent

–A strong financial profile (S+P: A+, Moody’s: Aa3)

–A realistic platform for continued growth

•On track for 16th consecutive year of earnings growth

•Raised earnings guidance for the second consecutive quarter

•Increased dividend 5.6 percent

•Announced Steckman Ridge Storage project

•Refunded customers over $71 million as a result of declining natural gas prices

•Recognized by AGA for our safety record

•Named to Forbes Platinum 400

Fiscal 2007 Highlights

•Implemented Conservation Incentive Program

NJNG Value Drivers

•Safe and reliable service

•Consistent customer growth

•Strong financial profile

•Regulatory collaboration

Our Service Area

•Largest independent LDC in New Jersey

•Growing customer base; over 477,000 customers

•Primarily residential and small commercial

•Consistent growth forecast

NYC

Phila.

Atlantic 

City

Excellent service area demographics

Customer growth rate exceeds the industry average

Strong Customer Growth

Pending

Final

Conceptual

New Customers = 54,838

Non-heat customers

Non-gas
off main

Non-gas 

on/near main

Conversions = 130,965

Future Growth Potential

Sources: Local Planning Boards and NJNG Harte Hanks & A.D. Little Studies

Healthy “inventory” for continued customer growth

Regulatory Collaboration

•Incentive programs

–Off-system sales

–Storage

–Financial Risk Management

•Conservation incentive program

–3-year pilot effective October 1, 2006

–Stabilizes NJNG margins

–Supported by BGSS savings

•Strong focus on customer satisfaction

–J.D. Power rating

–BPU Complaint Record

$29

$30

$24

$34

$37

$43

$23

Incentive Programs

•Customer bills reduced by about $321
million, or 4 percent, annually since
program inception

Conservation Incentive Program

•NJNG protected for all variations in customer usage

–Declining usage

•$8.4 million in margin accrued in FYTD 2007 from weather

–Weather

•$5.9 million in margin accrued in FYTD 2007 from CIP

•Initial customer level of savings of $10.6 million for each year of the pilot

•NJNG must file for rate review within program lifespan

•Customers receive aggressive promotion of energy conservation and efficiency - more ways to save

•Regulators

–Complementary program to NJ Clean Energy Program

–Utilities become a channel to the market

BPU Inquiries per 1,000 Customers

NJNG achieved its 14th consecutive year of having the best customer satisfaction rate
of any major utility in New Jersey

December 31, 2006

Customer Satisfaction

Key Wholesale Energy Services Drivers

•People working with physical assets

•Leveraging volatility

•Managing risk

•Access to capital

•Customer relationships

Wholesale energy services are expected to contribute
40-45 percent of total earnings

NJRES Net Income

NJRES Operating Statistics

NJRES Asset Base

Steckman Ridge LP

•50/50 JV with Spectra Energy

–Investment totals $250 million

•Field is located in Bedford County, PA

–Discovered in 2002

–Producing gas since 2003

–Acquired from Pennsylvania General Energy

•Convert to a 10+Bcf storage facility

•Multiple pipeline interconnect options

–Texas Eastern Transmission/Dominion Transmission

–Potential future expansion to Columbia Gas Transmission

•Projected in-service date of spring 2009 

Rockies

Supply

Gulf

Supply

LNG

LNG

Cove Point LNG

Project Location

NJNG Capital Expenditures

FY 2008 Estimate:

$69.1 million

FY 2007 Estimate: 

$69.7 million

millions

NJNG Net Plant in Service

Capital Structure

September 30, 2007 Estimate

Note: Equity excludes OCI

Corporate Ratings: S&P: A+;  Moody’s: Aa3

•Equity through Dividend reinvestment plan

•NJNG MTN Program

•NJR/NJNG bank facilities total $605 million

NJR estimates earnings of $2.95 to $3.05 per
basic share in fiscal 2007

* Net of certain items

*

September 30

March 31

Consistent Earnings Growth

Dividend Growth and Payout Ratio

Dividends per Share

Payout Ratio

   *  Effective January 2, 2007

1-year dividend growth rate of 5.6 percent

*

Shares Authorized (millions):	3.5
Shares Repurchased (millions):	3.2
Split-adjusted average cost:	$33.44

March 31, 2007

Plan expanded to 3.5 million shares in January 2006

Share Repurchase Program

NJR: Quality Performance

March 31, 2007

•Growing natural gas distribution business

•Disciplined wholesale energy services
strategy

•Strong regulatory relations

•Excellent financial profile

•Consistent financial performance

A.G. Edwards Yield Conference 

May 15, 2007

Laurence M. Downes

Chairman and CEO