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Date: November 17, 2016
Media Contact: Investor Contacts:
Michael Kinney Joanne Fairechio
732-938-1031 732-378-4967
mkinney@njresources.com jfairechio@njresources.com
Dennis Puma
732-938-1229
dpuma@njresources.com
NEW JERSEY RESOURCES REPORTS FISCAL 2016 RESULTS AND
ANNOUNCES FISCAL 2017 NET FINANCIAL EARNINGS GUIDANCE
WALL, N.J. — New Jersey Resources (NYSE: NJR) today reported results for fiscal 2016 and announced
net financial earnings (NFE) guidance for fiscal 2017.
Fiscal 2016 net income totaled $131.7 million, or $1.53 per share, compared with $181 million, or $2.12 per
share, in fiscal 2015. For the three-month period ended September 30, 2016, net income was $25.4 million,
or $.30 per share, compared with a net income of $4.2 million, or $.05 per share, during the same period last
year.
Fiscal 2016 NFE totaled $138.1 million, or $1.61 per share, compared with $151.5 million, or $1.78 per
share, during fiscal 2015. For the three-month period ended September 30, 2016, net financial losses were
$2.1 million, or $(.02) per share, compared with a loss of $5.2 million, or $(.06) per share, during the same
period last year.
“New Jersey Resources delivered solid results in fiscal 2016. We continued to make infrastructure investments
at New Jersey Natural Gas to provide customers with safe, reliable and resilient service. Our solar and onshore
wind portfolio performed well and NJR Energy Services exceeded our expectations. We believe our
fundamentals remain strong and position us to deliver consistent results for our shareowners in fiscal 2017,”
said Laurence M. Downes, Chairman and CEO of New Jersey Resources. “On behalf of our board of directors,
I would like to thank the more than 1,000 women and men of New Jersey Resources for our continued
success.”
NEW JERSEY RESOURCES REPORTS FISCAL 2016 RESULTS AND
ANNOUNCES FISCAL 2017 NET FINANCIAL EARNINGS GUIDANCE
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A reconciliation of net income to NFE for the fourth quarter and fiscal years 2016 and 2015 is provided
below.
Three Months Ended Twelve Months Ended
September 30, September 30,
(Thousands) 2016 2015 2016 2015
Net income $ 25,400 $ 4,197 $ 131,672 $ 180,960
Add:
Unrealized (gain) loss on derivative instruments and related
transactions (11,027) (19,671) 46,883 (38,681)
Tax effect 4,003 7,259 (17,018) 14,391
Effects of economic hedging related to natural gas inventory (28,195) 7,526 (36,816) (8,225)
Tax effect 10,235 (2,850) 13,364 3,058
Net income to NFE tax adjustment (2,475) (1,687) — —
Net financial (loss) earnings $ (2,059) $ (5,226) $ 138,085 $ 151,503
Weighted Average Shares Outstanding
Basic 86,060 85,415 85,884 85,186
Diluted (GAAP basis) 86,940 86,494 86,731 86,265
Diluted 86,060 85,415 86,731 86,265
Basic earnings per share $ .30 $ .05 $ 1.53 $ 2.12
Add:
Unrealized (gain) loss on derivative instruments and related
transactions (.13) (.23) .55 (.45)
Tax effect .05 .08 (.20) .17
Effects of economic hedging related to natural gas inventory (.33) .09 (.43) (.10)
Tax effect .12 (.03) .16 .04
Net income to NFE tax adjustment (.03) (.02) — —
Basic NFE per share $ (.02) $ (.06) $ 1.61 $ 1.78
NFE is a financial measure not calculated in accordance with generally accepted accounting principles
(GAAP) of the United States as it excludes all unrealized, and certain realized, gains and losses associated
with derivative instruments, net of applicable tax adjustments. For further discussion of this financial
measure, please see the explanation below under “Non-GAAP Financial Information.”
A table detailing NFE for the three and twelve months ended September 30 of fiscal years 2016 and 2015
is provided below.
Three Months Ended Twelve Months Ended
September 30, September 30,
(Thousands) 2016 2015 2016 2015
Net Financial (Loss) Earnings
New Jersey Natural Gas $ (7,390) $ (7,665) $ 76,104 $ 76,287
NJR Clean Energy Ventures 6,495 1,875 28,393 20,101
NJR Energy Services (5,651) (5,360) 21,934 42,122
NJR Midstream 2,496 2,569 9,406 9,780
NJR Home Services and Other 2,220 3,462 2,882 3,420
Sub-total (1,830) (5,119) 138,719 151,710
Eliminations (229) (107) (634) (207)
Total $ (2,059) $ (5,226) $ 138,085 $ 151,503
NEW JERSEY RESOURCES REPORTS FISCAL 2016 RESULTS AND
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NJR Announces Fiscal 2017 NFE Guidance
NJR announced fiscal 2017 NFE guidance in the range of $1.65 to $1.75 per share, subject to the risks and
uncertainties identified below under “Forward-Looking Statements.” In providing fiscal 2017 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 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.
NJR expects its regulated businesses to generate between 60 to 75 percent of total NFE, with New Jersey
Natural Gas (NJNG) continuing to be the largest contributor. The following chart represents NJR’s current
expected contributions from its subsidiaries for fiscal 2017:
Company
Expected Fiscal 2017
Net Financial Earnings Contribution
New Jersey Natural Gas 55 to 65 percent
NJR Midstream 5 to 10 percent
Total Regulated 60 to 75 percent
NJR Clean Energy Ventures 15 to 25 percent
NJR Energy Services 5 to 15 percent
NJR Home Services 1 to 3 percent
New Jersey Natural Gas Reports Steady Performance
Fiscal 2016 NFE at NJNG, the company’s regulated utility subsidiary, were $76.1 million, compared with
$76.3 million during the same period last year. Steady results for the fiscal year were driven by utility gross
margin from new customer additions, Basic Gas Supply Service (BGSS) incentive programs and regulatory
initiatives, such as The SAVEGREEN Project® (SAVEGREEN) and the Safety Acceleration and Facility
Enhancement (SAFE) program, which offset lower BGSS incentive margin and higher operation and
maintenance and depreciation expenses.
In fiscal 2016, NJNG added 8,170 new customers — the most since fiscal 2007 — compared with 7,858
in fiscal 2015, representing an increase of 4 percent. Of these customers, 4,587 were related to new
construction compared with 3,966 in the same period last year, a 15.7 percent increase. The remaining
3,583 new customers converted from other fuel sources to natural gas. In addition, 644 existing residential
non-heating customers converted to natural gas heating systems. In all, NJNG expects both new and
conversion customers, as well as commercial customers who switched from interruptible to firm natural
gas service, will contribute approximately $5.4 million annually to utility gross margin, a 21 percent increase
over fiscal 2015.
NJNG expects to add a total of 24,000 to 27,000 new customers between fiscal 2017 and 2019, representing
an annual new customer growth rate of approximately 1.6 percent. For more information on utility gross
margin, please see “Non-GAAP Financial Information” below.
NEW JERSEY RESOURCES REPORTS FISCAL 2016 RESULTS AND
ANNOUNCES FISCAL 2017 NET FINANCIAL EARNINGS GUIDANCE
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Base Rate Case Settled
On September 23, 2016, NJNG received approval from the New Jersey Board of Public Utilities (BPU)
on its base rate case settlement agreement, as well as BGSS, Conservation Incentive Program and Universal
Service Fund rates. When combined with a $48 million bill credit to be issued this winter, the net impact
of these rate changes is an overall decrease of 0.2 percent to the typical residential heating customer’s
annual bills.
The new rates were effective on October 1, 2016, while the bill credit will be applied to residential and
small commercial customers’ bills from November 2016 through February 2017. Customers’ total savings
will vary based on individual usage and weather patterns.
Under the approved base rate agreement, NJNG’s total annual revenue is expected to increase by $45
million, effective October 1, 2016. It includes a return on equity (ROE) of 9.75 percent with a 52.5 percent
common equity ratio and reflects a rate base of $1.37 billion with an overall rate of return of 6.9 percent.
The Southern Reliability Link (SRL), approved by the BPU in Board Orders issued in January and March
2016, continues to progress through the permitting process. As construction has not yet commenced, rate
treatment for the project was not included in new base rates. NJNG expects to request rate treatment for
the SRL in a future rate proceeding.
Success Continues at The SAVEGREEN Project
In fiscal 2016, SAVEGREEN, NJNG’s energy-efficiency program invested $19.1 million in grants and
financing options to help customers make upgrading to high-efficiency natural gas equipment more
affordable. Since its inception in 2009, NJNG has invested approximately $137 million in SAVEGREEN,
helping nearly 45,000 NJNG customers reduce energy consumption and lower their energy bills. Recently
extended through December 31, 2018, this program directly supports New Jersey’s Energy Master Plan.
In addition, NJNG has helped generate more than $335 million in economic activity by working with the
more than 2,500 contractors who have participated in the project.
Over the life of the program, NJNG has approval to invest nearly $220 million in SAVEGREEN and is
authorized to earn an overall return on its investments, ranging from 6.69 percent to 7.76 percent with an
ROE that ranges from 9.75 percent to 10.3 percent. The recovery period varies from two to 10 years,
depending on the type of investment.
BGSS Incentive Programs Contribute to Earnings
In fiscal 2016, NJNG’s gross margin-sharing BGSS incentive programs, which include off-system sales,
capacity release and storage incentives, contributed $15 million to utility gross margin, compared with
$17.7 million during fiscal 2015. The lower results were due primarily to decreased utility gross margin in
the storage incentive program and a decrease in the value of capacity.
NJNG shares the utility gross margin earned from these incentive programs with customers and shareowners,
following utility gross margin-sharing formulas authorized by the BPU. Since their inception in 1992, these
NEW JERSEY RESOURCES REPORTS FISCAL 2016 RESULTS AND
ANNOUNCES FISCAL 2017 NET FINANCIAL EARNINGS GUIDANCE
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incentive programs have saved customers approximately $876 million and added an average of $.05 per
share annually.
Safety Acceleration and Facilities Enhancement (SAFE) Program Extended
The BPU also approved a five-year extension of NJNG’s SAFE program. The project, SAFE II, is a $200
million program that will replace the remaining 276 miles of unprotected steel main and associated services
in NJNG’s distribution system. As part of this program, NJNG will earn an Allowance for Funds Used
During Construction rate on its invested capital during construction and request rate increases for $157.5
million of SAFE II spending in annual filings. As a condition of approval of this project, NJNG is required
to file a base rate case no later than November 2019.
This extension builds on the progress made during SAFE I, a $130 million, four-year infrastructure
investment. Originally approved by the BPU in 2012, NJNG recently completed phase one, which included
the replacement of 276 miles of unprotected steel and cast iron main and associated services in NJNG’s
distribution system. In fiscal 2016, NJNG invested $34.7 million, which earned a weighted average cost
of capital of 6.9 percent, including a 9.75 percent ROE.
New Jersey Reinvestment in System Enhancement (NJ RISE) Program
NJNG invested $2 million in the fourth quarter of fiscal 2016 in its NJ RISE program, bringing the total
fiscal 2016 investment to $11.4 million. NJ RISE, a five-year, $102.5 million investment, consists of six
capital projects, designed to improve NJNG’s service disruption response and strengthen the overall safety,
reliability and resiliency of its natural gas distribution and transmission systems. These system
enhancements are designed to help diminish the impact of future major weather events and align with New
Jersey’s directive for improved energy resiliency and preparedness.
To date, NJNG has installed more than 7,300 excess flow valves in storm-prone areas of its service territory.
These valves restrict the flow of natural gas when there is a change in pressure on the service line. In
addition, construction of a secondary feed into Sea Bright is expected to be completed in fiscal 2017. The
remaining four projects are in the design and/or permitting phases and all projects are scheduled to be
completed by fiscal 2019. These upgrades will help minimize the number and duration of outages, improve
NJNG’s ability to respond to and control service disruptions and enhance the safety, reliability and integrity
of its natural gas distribution system.
Liquefied Natural Gas Plant Operating; Supplements Peak-Day Supply and Reduces Emissions
NJNG's natural gas liquefaction plant, located in Howell, New Jersey is fully operational and provides the
utility with the ability to liquefy system natural gas for peak-day use and ensures system reliability and
integrity, as well as reduces liquefied natural gas (LNG) transportation and capacity costs. The plant and
other upgrades to the LNG facilities which were completed earlier this year, represent a $36.5 million
investment, benefiting customers by lowering BGSS costs and creating additional value for shareowners.
In addition, by liquefying natural gas on-site, NJNG expects to eliminate approximately 650 LNG trucks
from the road annually, each traveling approximately 515 miles round trip. This equates to an approximate
annual reduction of 550 metric tons of greenhouse gas (GHG) emissions. NJNG expects to reduce the
NEW JERSEY RESOURCES REPORTS FISCAL 2016 RESULTS AND
ANNOUNCES FISCAL 2017 NET FINANCIAL EARNINGS GUIDANCE
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average annual LNG transportation charges by approximately 80 percent and eliminate all associated LNG
contract costs.
NJR Clean Energy Ventures Places Five Commercial Solar Systems in Service; Adds Record
Number of Residential Customers
NJR Clean Energy Ventures (NJRCEV), the unregulated clean energy subsidiary of NJR, reported NFE of
$28.4 million in fiscal 2016 compared with $20.1 million in fiscal 2015. Fiscal 2016 results reflect the
contributions from its growing portfolio of operating assets. Currently, NJRCEV has total capacity of nearly
240 megawatts (MW), or enough to power more than 44,000 homes annually.
In fiscal 2016, NJRCEV constructed five commercial solar projects in New Jersey that qualify for
investment tax credits (ITC). The projects, located in the townships of East Amwell, Raritan, Upper
Freehold, Buena Vista and Bernards, added 21.8 MWs of capacity and represent an investment of
approximately $51.2 million.
Also, NJRCEV added 1,123 residential customers in fiscal 2016, totaling 10.4 MWs of capacity, compared
with 829 customers and 7.8 MWs of capacity in fiscal 2015. The Sunlight Advantage® currently provides
savings to nearly 5,100 eligible homeowners through both roof- and ground-mounted solar systems, with
no upfront installation or maintenance costs. NJRCEV invested approximately $34 million in residential
solar systems in fiscal 2016, compared with $25 million in fiscal 2015.
In December 2015, Congress passed the extension of the federal Production Tax Credit (PTC) for wind
and the ITC for solar. This extension is expected to help sustain long-term growth in the wind and solar
markets in the United States, providing NJRCEV additional flexibility and options to deploy capital.
Medicine Bow Wind Farm Added to Portfolio; Ringer Hill Wind Farm Nears Completion
On September 29, 2016, NJRCEV acquired the recently retrofitted Medicine Bow Wind Farm, its fifth
onshore wind project. Located in Carbon County, Wyoming, approximately 80 miles outside of Cheyenne,
the project consists of nine fully-operational Vestas turbines with a total capacity of 6.3 MWs. The energy
produced is sold to the Platte River Power Authority, where it is distributed to municipal utilities in Estes
Park, Fort Collins, Longmont and Loveland, Colorado. The project qualifies for PTCs, which are based on
kilowatt-hour output. All PTCs generated by the wind farm will be retained by NJR. With the acquisition
of Medicine Bow Wind Farm, onshore wind now accounts for 36 percent of its clean energy portfolio.
In addition, construction is nearing completion at the Ringer Hill Wind Farm, which is expected to be
operational during the first quarter of fiscal 2017. NJRCEV is investing approximately $84 million to
construct, own and operate the Somerset County, Pennsylvania wind farm, consisting of 14 General Electric
turbines, with a total capacity of 39.9 MWs. The majority of the energy produced will be hedged under a
15-year agreement with Iron Mountain, a provider of storage and information management services. When
this project is complete, NJRCEV’s onshore wind capacity will total approximately 127 MWs.
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NJR Energy Services Performs Above NJR’s Guidance Range
NJR Energy Services (NJRES), NJR’s wholesale energy services provider, reported NFE of $21.9 million
in fiscal 2016, compared with $42.1 million during the same period last year. NJRES’ disciplined approach
has allowed it to make positive contributions to earnings every year since its inception in 1995.
A leader in the wholesale natural gas marketplace, NJRES has storage and pipeline capacity strategically
located across North America. With its commitment to disciplined risk management, the NJRES team
identifies growth opportunities and creates customized energy solutions for a diverse customer base.
Currently, NJRES’ asset portfolio consists of approximately 43.7 billion cubic feet (Bcf) of firm storage
capacity and 1.7 Bcf/day of firm transportation.
Steady NJR Midstream Results
NJR Midstream, the company’s natural gas midstream asset segment, reported NFE of $9.4 million in fiscal
2016, compared with $9.8 million during the same period in fiscal 2015. These results were due primarily
to increased storage service demand and revenue at Steckman Ridge, a 12 Bcf natural gas storage facility
in southwestern Pennsylvania, which partially offset the loss of revenue due to the transfer of ownership
interest in the Iroquois Pipeline. In August 2015, NJR Midstream exchanged its 5.53 percent equity
ownership in the Iroquois Gas Transmission System, LP for 1.8 million common units of Dominion
Midstream Partners, LP (NYSE: DM), a master limited partnership that owns several Federal Energy
Regulatory Commission (FERC)-regulated assets.
NJR Midstream’s investments include its 50 percent equity ownership in Steckman Ridge, jointly owned
with Spectra Energy, as well as a 20 percent interest in the proposed PennEast Pipeline. This 118-mile
pipeline is designed to bring lower cost natural gas produced in the Marcellus Shale region to homes and
businesses in Pennsylvania and New Jersey, and provide greater system reliability for local utilities.
PennEast filed a formal application with FERC in the fourth quarter of fiscal 2015 and currently estimates
the system will be in-service by the first quarter of fiscal 2019. On March 29, 2016, FERC issued a Notice
of Availability of the Final Environmental Impact Statement by December 16, 2016, and the 90-day Federal
Authorization Decision Deadline is March 16, 2017.
NJR Home Services Reports Earnings
NJR Home Services (NJRHS), the company’s unregulated retail and appliance service subsidiary, reported
NFE of $2 million in fiscal 2016, compared with NFE of $2.4 million during the same period last year.
Webcast Information
NJR will host a live webcast to discuss its financial results today at 10 a.m. ET. A few minutes prior to the
webcast, go to njresources.com and select “Investor Relations,” then scroll down to the “Events &
Presentations” section and click on the webcast link.
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Forward-Looking Statements
This 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. New Jersey Resources (NJR or the Company) 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 release include, but are not limited to, certain statements
regarding NJR’s NFE guidance for fiscal 2017, forecasted contribution of business segments to fiscal 2017
NFE, future NJNG customer growth, future NJNG capital expenditures and infrastructure investments,
NJRCEV’s onshore wind and solar investments, the results of future base rate cases, the extension of the
PTC and ITC, and the PennEast Pipeline project.
The factors that could cause actual results to differ materially from NJR’s expectations include, but are not
limited to, weather and economic conditions; changes in the NJNG service territory and their effect on
NJNG’s customer growth; volatility of natural gas and other commodity prices and their impact on NJNG
customer usage, NJNG’s BGSS incentive program, NJRES operations and on our risk management efforts;
changes in rating agency requirements and/or credit ratings and their effect on availability and cost of
capital to our Company; the impact of volatility in the credit markets on our access to capital; the ability
to comply with debt covenants; the impact to the asset values and resulting higher costs and funding
obligations of NJR’s pension and post-employment benefit plans as a result of potential downturns in the
financial markets, lower discount rates, revised actuarial assumptions or impacts associated with the Patient
Protection and Affordable Care Act; accounting effects and other risks associated with hedging activities
and use of derivatives contracts; commercial and wholesale credit risks, including the availability of
creditworthy customers and counterparties, and liquidity in the wholesale energy trading market; the ability
to obtain governmental and regulatory approvals, land-use rights, electrical grid connection and/or financing
for the construction, development and operation of NJR’s non-regulated energy investments and NJNG’s
planned infrastructure projects in a timely manner; risks associated with the management of the company’s
joint ventures, partnerships, and investment in a master limited partnership; risks associated with our
investments in distributed power projects, including the availability of regulatory and tax incentives, the
availability of viable projects, NJR’s eligibility for ITCs and PTCs, the future market for Solar Renewable
Energy Credits (SRECs) and operational risks related to projects in service; timing of qualifying for ITCs
and PTCs due to delays or failures to complete planned solar and wind energy projects and the resulting
effect on our effective tax rate and earnings; the level and rate at which NJNG’s costs and expenses are
incurred and the extent to which they are allowed to be recovered from customers through the regulatory
process, including through future base rate case filings; access to adequate supplies of natural gas and
dependence on third-party storage and transportation facilities for natural gas supply; operating risks
incidental to handling, storing, transporting and providing customers with natural gas; risks related to our
employee workforce; the regulatory and pricing policies of federal and state regulatory agencies; the costs
of compliance with present and future environmental laws, including potential climate change-related
NEW JERSEY RESOURCES REPORTS FISCAL 2016 RESULTS AND
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legislation; the impact of disallowance of recovery of environmental-related expenditures and other
regulatory changes; environmental-related and other litigation and other uncertainties; risks related to cyber-
attack or failure of information technology systems; and the impact of natural disasters, terrorist activities,
and other extreme events on our operations and customers. The aforementioned factors are detailed in the
“Risk Factors” sections of our Form 10-K that we expect to file with the Securities and Exchange
Commission (SEC) on or about November 22, 2016, which will be available on the SEC’s website at
sec.gov. Information included in this 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 news release includes the non-GAAP financial measures NFE (losses), 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 the 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 (losses) and financial margin exclude unrealized gains or losses on derivative instruments related to
the company’s unregulated subsidiaries and certain realized gains and losses on derivative instruments
related to natural gas that has been placed into storage at NJRES, net of applicable tax adjustments as
described below. Volatility associated with the change in value of these financial instruments and physical
commodity contracts is 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 NJRCEV, as such adjustment is
related to tax credits generated by NJRCEV.
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 that move in
relation to each other. Natural gas costs, sales, expenses and other taxes and regulatory rider expenses are
passed through to customers and, therefore, have no effect on 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 2016 Form 10-K,
Item 7 when it is filed with the SEC.
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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 comprised of five primary businesses:
• New Jersey Natural Gas, NJR’s principal subsidiary, operates and maintains over 7,300 miles of
natural gas transportation and distribution infrastructure to serve over half a million customers in
New Jersey’s Monmouth, Ocean and parts of Burlington, Morris and Middlesex counties.
• NJR 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.
• NJR Clean Energy Ventures invests in, owns and operates solar and onshore wind projects with
a total capacity of nearly 240 megawatts, providing residential and commercial customers with low-
carbon solutions.
• NJR Midstream serves customers from local distributors and producers to electric generators and
wholesale marketers through its 50 percent equity ownership in the Steckman Ridge natural gas
storage facility and its stake in Dominion Midstream Partners, L.P., as well as its 20 percent equity
interest in the PennEast Pipeline Project.
• NJR 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.
For more information about NJR:
Visit www.njresources.com.
Follow us on Twitter @NJNaturalGas.
“Like” us on facebook.com/NewJerseyNaturalGas.
Download our free NJR investor relations app for iPad, iPhone and Android.
NJR-E
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NEW JERSEY RESOURCES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Twelve Months Ended
September 30, September 30,
(Thousands, except per share data) 2016 2015 2016 2015
OPERATING REVENUES
Utility $ 80,998 $ 82,233 $ 594,346 $ 781,970
Nonutility 388,243 356,073 1,286,559 1,952,017
Total operating revenues 469,241 438,306 1,880,905 2,733,987
OPERATING EXPENSES
Gas purchases
Utility 30,295 49,847 205,034 304,953
Nonutility 308,820 290,192 1,139,301 1,767,841
Related parties 2,092 3,361 8,351 12,851
Operation and maintenance 57,596 63,318 208,421 209,453
Regulatory rider expenses 2,097 3,108 39,300 75,779
Depreciation and amortization 19,851 16,235 72,748 61,399
Energy and other taxes 6,010 5,988 40,215 53,260
Total operating expenses 426,761 432,049 1,713,370 2,485,536
OPERATING INCOME 42,480 6,257 167,535 248,451
Other income, net 2,764 4,027 9,196 6,545
Interest expense, net 9,111 6,716 31,044 27,721
INCOME BEFORE INCOME TAXES AND EQUITY IN
EARNINGS OF AFFILIATES 36,133 3,568 145,687 227,275
Income tax provision 13,183 3,031 23,530 59,724
Equity in earnings of affiliates 2,450 3,660 9,515 13,409
NET INCOME $ 25,400 $ 4,197 $ 131,672 $ 180,960
EARNINGS PER COMMON SHARE
Basic $ .30 $ .05 $ 1.53 $ 2.12
Diluted $ .29 $ .05 $ 1.52 $ 2.10
DIVIDENDS DECLARED PER COMMON SHARE $ .255 $ .240 $ .975 $ .915
AVERAGE SHARES OUTSTANDING
Basic 86,060 85,415 85,884 85,186
Diluted 86,940 86,494 86,731 86,265
NEW JERSEY RESOURCES REPORTS FISCAL 2016 RESULTS AND
ANNOUNCES FISCAL 2017 NET FINANCIAL EARNINGS GUIDANCE
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RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES
Three Months Ended Twelve Months Ended
September 30, September 30,
(Thousands) 2016 2015 2016 2015
NEW JERSEY RESOURCES
A reconciliation of net income, the closest GAAP financial measurement, to net financial earnings, is as follows:
Net income $ 25,400 $ 4,197 $ 131,672 $ 180,960
Add:
Unrealized (gain) loss on derivative instruments and related
transactions (11,027) (19,671) 46,883 (38,681)
Tax effect 4,003 7,259 (17,018) 14,391
Effects of economic hedging related to natural gas inventory (28,195) 7,526 (36,816) (8,225)
Tax effect 10,235 (2,850) 13,364 3,058
Net income to NFE tax adjustment (2,475) (1,687) — —
Net financial (loss) earnings $ (2,059) $ (5,226) $ 138,085 $ 151,503
Weighted Average Shares Outstanding
Basic 86,060 85,415 85,884 85,186
Diluted 86,060 85,415 86,731 86,265
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 $ .30 $ .05 $ 1.53 $ 2.12
Add:
Unrealized (gain) loss on derivative instruments and related
transactions $ (.13) $ (.23) $ .55 $ (.45)
Tax effect $ .05 $ .08 $ (.20) $ .17
Effects of economic hedging related to natural gas inventory $ (.33) $ .09 $ (.43) $ (.10)
Tax effect $ .12 $ (.03) $ .16 $ .04
Net income to NFE tax adjustment $ (.03) $ (.02) $ — $ —
Basic NFE per share $ (.02) $ (.06) $ 1.61 $ 1.78
NATURAL GAS DISTRIBUTION
A reconciliation of operating revenue, the closest GAAP financial measurement, to utility gross margin is as follows:
Operating revenues $ 80,998 $ 82,233 $ 594,346 $ 781,970
Less:
Gas purchases 33,003 32,459 215,849 355,779
Energy and other taxes 3,566 3,722 29,832 42,929
Regulatory rider expense 2,097 3,108 39,300 75,779
Utility gross margin $ 42,332 $ 42,944 $ 309,365 $ 307,483
NEW JERSEY RESOURCES REPORTS FISCAL 2016 RESULTS AND
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Three Months Ended Twelve Months Ended
September 30, September 30,
(Thousands) 2016 2015 2016 2015
CLEAN ENERGY VENTURES
A reconciliation of net income to net financial earnings, is as follows:
Net income $ 8,970 $ 3,562 $ 28,393 $ 20,101
Add:
Net income to NFE tax adjustment (2,475) (1,687) — —
Net financial earnings $ 6,495 $ 1,875 $ 28,393 $ 20,101
NJR ENERGY SERVICES
The following table is a computation of financial margin:
Operating revenues $ 348,295 $ 326,640 $ 1,197,253 $ 1,934,307
Less: Gas purchases 309,975 312,394 1,153,911 1,795,719
Add:
Unrealized (gain) loss on derivative instruments and related
transactions (11,703) (20,420) 48,855 (39,408)
Effects of economic hedging related to natural gas inventory (28,195) 7,526 (36,816) (8,225)
Financial margin $ (1,578) $ 1,352 $ 55,381 $ 90,955
A reconciliation of operating income, the closest GAAP financial measurement, to financial margin is as follows:
Operating income $ 31,208 $ 2,079 $ 22,292 $ 111,858
Add:
Operation and maintenance expense 6,862 11,968 20,025 25,403
Depreciation and amortization 19 22 88 90
Other taxes 231 177 937 1,237
Subtotal – Gross margin 38,320 14,246 43,342 138,588
Add:
Unrealized (gain) loss on derivative instruments and related
transactions (11,703) (20,420) 48,855 (39,408)
Effects of economic hedging related to natural gas inventory (28,195) 7,526 (36,816) (8,225)
Financial margin $ (1,578) $ 1,352 $ 55,381 $ 90,955
A reconciliation of net income to net financial earnings, is as follows:
Net income $ 19,764 $ 2,853 $ 14,265 $ 72,044
Add:
Unrealized (gain) loss on derivative instruments and related
transactions (11,703) (20,420) 48,855 (39,408)
Tax effect 4,248 7,531 (17,734) 14,653
Effects of economic hedging related to natural gas, net of taxes (28,195) 7,526 (36,816) (8,225)
Tax effect 10,235 (2,850) 13,364 3,058
Net financial (loss) earnings $ (5,651) $ (5,360) $ 21,934 $ 42,122
NEW JERSEY RESOURCES REPORTS FISCAL 2016 RESULTS AND
ANNOUNCES FISCAL 2017 NET FINANCIAL EARNINGS GUIDANCE
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Three Months Ended Twelve Months Ended
September 30, September 30,
(Thousands, except per share data) 2016 2015 2016 2015
NEW JERSEY RESOURCES
Operating Revenues
Natural Gas Distribution $ 80,998 $ 82,233 $ 594,346 $ 781,970
Clean Energy Ventures 25,381 14,349 53,540 32,513
Energy Services 348,295 326,640 1,197,253 1,934,307
Midstream — — — —
Home Services and Other 16,585 16,513 48,497 48,703
Sub-total 471,259 439,735 1,893,636 2,797,493
Eliminations (2,018) (1,429) (12,731) (63,506)
Total $ 469,241 $ 438,306 $ 1,880,905 $ 2,733,987
Operating Income (Loss)
Natural Gas Distribution $ (5,937) $ (6,033) $ 126,233 $ 130,047
Clean Energy Ventures 12,656 4,819 9,772 (758)
Energy Services 31,208 2,079 22,292 111,858
Midstream (358) (651) (1,243) (1,118)
Home Services and Other 4,459 5,464 3,633 4,335
Sub-total 42,028 5,678 160,687 244,364
Eliminations 452 579 6,848 4,087
Total $ 42,480 $ 6,257 $ 167,535 $ 248,451
Equity in Earnings of Affiliates
Midstream $ 3,524 $ 4,865 $ 13,936 $ 17,487
Eliminations (1,074) (1,205) (4,421) (4,078)
Total $ 2,450 $ 3,660 $ 9,515 $ 13,409
Net Income (Loss)
Natural Gas Distribution $ (7,390) $ (7,665) $ 76,104 $ 76,287
Clean Energy Ventures 8,970 3,562 28,393 20,101
Energy Services 19,764 2,853 14,265 72,044
Midstream 2,496 2,569 9,406 9,780
Home Services and Other 2,220 3,462 2,882 3,420
Sub-total 26,060 4,781 131,050 181,632
Eliminations (660) (584) 622 (672)
Total $ 25,400 $ 4,197 $ 131,672 $ 180,960
Net Financial (Loss) Earnings
Natural Gas Distribution $ (7,390) $ (7,665) $ 76,104 $ 76,287
Clean Energy Ventures 6,495 1,875 28,393 20,101
Energy Services (5,651) (5,360) 21,934 42,122
Midstream 2,496 2,569 9,406 9,780
Home Services and Other 2,220 3,462 2,882 3,420
Sub-total (1,830) (5,119) 138,719 151,710
Eliminations (229) (107) (634) (207)
Total $ (2,059) $ (5,226) $ 138,085 $ 151,503
Throughput (Bcf)
NJNG, Core Customers 23.9 23.7 119.8 118.6
NJNG, Off System/Capacity Management 54.4 57.6 216.7 222.4
NJRES Fuel Mgmt. and Wholesale Sales 140.7 135.4 551.1 626.9
Total 219.0 216.7 887.6 967.9
Common Stock Data
Yield at September 30 3.1% 3.0% 3.1% 3.0%
Market Price
High $ 38.92 $ 30.07 $ 38.92 $ 33.73
Low $ 32.27 $ 26.89 $ 28.02 $ 24.65
Close at September 30 $ 32.86 $ 30.03 $ 32.86 $ 30.03
Shares Out. at September 30 86,086 85,531 86,086 85,531
Market Cap. at September 30 $ 2,828,798 $ 2,568,509 $ 2,828,798 $ 2,568,509
NEW JERSEY RESOURCES REPORTS FISCAL 2016 RESULTS AND
ANNOUNCES FISCAL 2017 NET FINANCIAL EARNINGS GUIDANCE
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Three Months Ended Twelve Months Ended
(Unaudited) September 30, September 30,
(Thousands, except customer & weather data) 2016 2015 2016 2015
NATURAL GAS DISTRIBUTION
Utility Gross Margin
Operating revenues $ 80,998 $ 82,233 $ 594,346 $ 781,970
Less:
Gas purchases 33,003 32,459 215,849 355,779
Energy and other taxes 3,566 3,722 29,832 42,929
Regulatory rider expense 2,097 3,108 39,300 75,779
Total Utility Gross Margin $ 42,332 $ 42,944 $ 309,365 $ 307,483
Utility Gross Margin, Operating Income and Net Income
Residential $ 22,271 $ 21,867 $ 187,762 $ 182,407
Commercial, Industrial & Other 6,839 6,622 46,878 47,162
Firm Transportation 8,737 8,630 54,841 55,614
Total Firm Margin 37,847 37,119 289,481 285,183
Interruptible 1,223 1,198 4,906 4,593
Total System Margin 39,070 38,317 294,387 289,776
Off System/Capacity Management/FRM/Storage Incentive 3,262 4,627 14,978 17,707
Total Utility Gross Margin 42,332 42,944 309,365 307,483
Operation and maintenance expense 34,453 36,833 130,575 129,774
Depreciation and amortization 12,695 11,083 47,828 43,085
Other taxes not reflected in gross margin 1,121 1,061 4,729 4,577
Operating (Loss) Income $ (5,937) $ (6,033) $ 126,233 $ 130,047
Net (Loss) Income $ (7,390) $ (7,665) $ 76,104 $ 76,287
Throughput (Bcf)
Residential 2.6 2.8 36.9 45.9
Commercial, Industrial & Other 0.6 0.6 7.3 9.6
Firm Transportation 1.7 1.6 14.1 16.0
Total Firm Throughput 4.9 5.0 58.3 71.5
Interruptible 19.0 18.7 61.5 47.1
Total System Throughput 23.9 23.7 119.8 118.6
Off System/Capacity Management 54.4 57.6 216.7 222.4
Total Throughput 78.3 81.3 336.5 341.0
Customers
Residential 448,273 437,979 448,273 437,979
Commercial, Industrial & Other 26,218 25,541 26,218 25,541
Firm Transportation 46,608 48,673 46,608 48,673
Total Firm Customers 521,099 512,193 521,099 512,193
Interruptible 34 35 34 35
Total System Customers 521,133 512,228 521,133 512,228
Off System/Capacity Management* 30 24 30 24
Total Customers 521,163 512,252 521,163 512,252
*The number of customers represents those active during the last month of the period.
Degree Days
Actual 17 2 3,867 5,015
Normal 35 35 4,689 4,632
Percent of Normal 48.6% 5.7% 82.5% 108.3%
NEW JERSEY RESOURCES REPORTS FISCAL 2016 RESULTS AND
ANNOUNCES FISCAL 2017 NET FINANCIAL EARNINGS GUIDANCE
Page 16 of 16
Three Months Ended Twelve Months Ended
(Unaudited) September 30, September 30,
(Thousands, except customer, SREC and megawatt) 2016 2015 2016 2015
CLEAN ENERGY VENTURES
Operating Revenues
SREC sales $ 20,216 $ 11,192 $ 36,243 $ 22,483
Electricity sales 3,798 2,141 12,614 6,329
Other 1,367 1,016 4,683 3,701
Total Operating Revenues $ 25,381 $ 14,349 $ 53,540 $ 32,513
Depreciation and Amortization $ 6,915 $ 4,905 $ 23,971 $ 17,297
Operating Income (Loss) $ 12,656 $ 4,819 $ 9,772 $ (758)
Income Tax (Provision) Benefit $ (1,841) $ (2,218) $ 26,592 $ 26,968
Net Income $ 8,970 $ 3,562 $ 28,393 $ 20,101
Net Financial Earnings $ 6,495 $ 1,875 $ 28,393 $ 20,101
Solar Renewable Energy Certificates Generated 59,011 46,223 160,009 126,133
Solar Renewable Energy Certificates Sold 92,708 57,317 169,077 122,900
Solar Megawatts Eligible for ITCs 15.8 9.0 32.2 34.3
Solar Megawatts Under Construction 0.7 0.04 0.7 0.04
Wind Megawatts Installed/Acquired 6.3 — 57.0 20.0
Wind Megawatts Under Construction 39.9 48.3 39.9 48.3
ENERGY SERVICES
Operating Income
Operating revenues $ 348,295 $ 326,640 $ 1,197,253 $ 1,934,307
Gas purchases 309,975 312,394 1,153,911 1,795,719
Gross Margin 38,320 14,246 43,342 138,588
Operation and maintenance expense 6,862 11,968 20,025 25,403
Depreciation and amortization 19 22 88 90
Energy and other taxes 231 177 937 1,237
Operating Income $ 31,208 $ 2,079 $ 22,292 $ 111,858
Net Income $ 19,764 $ 2,853 $ 14,265 $ 72,044
Financial Margin $ (1,578) $ 1,352 $ 55,381 $ 90,955
Net Financial (Loss) Earnings $ (5,651) $ (5,360) $ 21,934 $ 42,122
Gas Sold and Managed (Bcf) 140.7 135.4 551.1 626.9
MIDSTREAM
Equity in Earnings of Affiliates $ 3,524 $ 4,865 $ 13,936 $ 17,487
Operation and Maintenance Expense $ 350 $ 650 $ 1,197 $ 1,136
Other Income $ 848 $ 250 $ 3,130 $ 977
Interest Expense $ 59 $ 94 $ 287 $ 717
Net Income $ 2,496 $ 2,569 $ 9,406 $ 9,780
HOME SERVICES AND OTHER
Operating Revenues $ 16,585 $ 16,513 $ 48,497 $ 48,703
Operating Income $ 4,459 $ 5,464 $ 3,633 $ 4,335
Net Income $ 2,220 $ 3,462 $ 2,882 $ 3,420
Total Service Contract Customers at September 30 113,791 116,552 113,791 116,552
