8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 3, 2006

NEW JERSEY RESOURCES CORPORATION

(Exact name of registrant as specified in its charter)

New Jersey	1-8359	22-2376465
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1415 Wyckoff Road
Wall, New Jersey	07719
(Address of principal executive offices)	(Zip Code)

(732) 938-1480
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 2.02 Results of Operations and Financial Condition
	Item 9.01. Financial Statements and Exhibits
SIGNATURE
EX-99.01: PRESS RELEASE

Section 2 — Results of Operations and Financial Condition

Item 2.02 Results of Operations and Financial Condition

On May 3, 2006, the Registrant issued a press release regarding its second quarter and fiscal-year-to-date 2006 results. The Registrant is filing this press release as Exhibit 99.

Section 9 — Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits

(a) (a) None.
(b) (b) None.
(c) (c) Exhibits:

Exhibit 99.01: Press Release dated May 3, 2006

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	NEW JERSEY RESOURCES CORPORATION
Date: May 3, 2006	By:	/s/Glenn C. Lockwood
		Glenn C. Lockwood Senior Vice President, Chief Financial Officer and Treasurer

EXHIBIT INDEX

Exhibit	Description
99.01:	NJR REPORTS FISCAL YEAR-TO-DATE AND SECOND-QUARTER EARNINGS PER SHARE; REAFFIRMS EARNINGS GUIDANCE

• NJR’s fiscal year-to-date earnings increase 15 percent over last year to $3.41 per basic share due to improved wholesale energy services results

• Earnings guidance for fiscal 2006 reaffirmed at $2.75 to $2.85 per basic share

• NJR on track for record 15th year of increased earnings per share

EX-99.01

Exhibit 99.01

Date: May 3, 2006 Media Contact:

Media Contact:
Michael Kinney
732-938-1031
mkinney@njresources.com
Investor Contact:
Dennis Puma
732-938-1229
dpuma@njresources.com

NJR REPORTS FISCAL YEAR-TO-DATE AND
SECOND-QUARTER EARNINGS PER SHARE; REAFFIRMS
EARNINGS GUIDANCE

• NJR’s fiscal year-to-date earnings increase 15 percent over last year to $3.41 per basic share due to improved wholesale energy services results

• Earnings guidance for fiscal 2006 reaffirmed at $2.75 to $2.85 per basic share

• NJR on track for record 15th year of increased earnings per share

WALL, N.J. – New Jersey Resources (NYSE: NJR) today reported a 15 percent increase in basic earnings per share for the six months ended March 31, 2006, to $3.41, compared with $2.96 last year. For the six months ended March 31, 2006, diluted earnings per share increased to $3.37, compared with $2.90 last year. Last year’s earnings for the six months ended March 31, 2005 included a $.22 per basic share gain on the sale of a commercial office building and a charge of $.05 per basic share associated with an early retirement program for officers. Net of these items, NJR’s earnings for the six months ended March 31, 2005 were $77.4 million, or $2.79 per basic share and $2.74 per diluted share.

For the three months ended March 31, 2006, basic earnings per share increased 16 percent to $2.16, compared with $1.87 last year. Diluted earnings per share increased 16 percent to $2.14, compared with $1.84 last year.

NJR’s fiscal 2006 earnings have been driven by NJR Energy Services (NJRES), the company’s wholesale energy services business unit, which saw earnings grow to $41.9 million, a 90 percent increase over $22 million for the same period last year. These strong results more than offset the impact of lower customer usage at New Jersey Natural Gas (NJNG), NJR’s largest subsidiary.

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NJR REPORTS FISCAL YEAR-TO-DATE AND SECOND-QUARTER EARNINGS
PER SHARE; REAFFIRMS EARNINGS GUIDANCE
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“Our excellent financial performance is a result of our focus on the fundamentals in everything we do. NJNG remains the core of our business strategy, complemented by our successful wholesale energy services business,” said Laurence M. Downes, chairman and CEO of NJR. “Through the hard work and creativity of our employees, we continue to demonstrate our commitment to providing exceptional value for our customers and shareowners.”

Customer Billing Credit Extended

After closely monitoring the natural gas market’s impact on purchased gas costs since implementing a temporary Basic Gas Supply Service (BGSS) bill credit in February, NJNG announced during the quarter that it had extended customers’ savings through April. The bill credit, originally announced in late January, brought immediate benefit to customers during the winter heating months when bills typically are the highest. Residential and small commercial customers continued to receive a credit of approximately 19 cents per therm through April 30, 2006. A typical residential customer using 103 therms in April saw a savings of approximately $19. Customers also received a bill credit totaling approximately $61 for the months of February and March.

Financial and operating highlights during the quarter included:

•	Higher Net Income and Basic Earnings per Share
	For the six months ended March 31, 2006, NJR earned $94.5 million, or $3.41 per basic share, compared with $81.9 million, or $2.96 per basic share, last year. Last year’s earnings for the 6-month period included a gain on the sale of a commercial office building of $.22 per basic share by NJR’s commercial real estate subsidiary, Commercial Realty and Resources (CR&R), and a charge of $.05 per basic share associated with a voluntary officer retirement program as part of an overall restructuring plan for the organization, which occurred in the first fiscal quarter ended December 31, 2004.
	NJR earned $60.2 million, or $2.16 per basic share, for the three months ended March 31, 2006, compared with $51.7 million, or $1.87 per share, for the same period last year.

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NJR REPORTS FISCAL YEAR-TO-DATE AND SECOND-QUARTER EARNINGS
PER SHARE; REAFFIRMS EARNINGS GUIDANCE
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	NJNG earned $52.2 million for the 6-month period ended March 31, 2006, compared with $53.1 million last year. For the three months ended March 31, 2006, NJNG earned $33.5 million, compared with $35.6 million last year. The lower earnings in both periods were due primarily to lower customer usage and higher operation and maintenance expenses, which more than offset the impact of higher gross margin from its incentive programs. NJNG believes that the lower usage was due primarily to the pass-through of higher wholesale natural gas prices, which offset continued strong customer growth.
	NJRES reported a 90 percent increase in earnings for the six months ended March 31, 2006 to $41.9 million, compared with $22 million last year. For the three months ended March 31, 2006, NJRES earned $27 million, compared with $15.4 million last year. The increase in earnings in both periods was due primarily to higher gross margin generated from the company’s portfolio of storage and transportation capacity contracts. Gross margin for NJRES is defined as natural gas revenues and management fees less natural gas costs.
•	Customer Growth Remains Strong
	During the first six months of fiscal 2006, NJNG added 5,804 new customers, 34 percent of which converted from other fuels. In addition, 151 existing customers added natural gas heat to their service. NJNG anticipates an annual customer growth rate of about 2.3 percent in fiscal 2006. About one-third of the anticipated new customers are expected to convert from other fuels.
	NJNG’s gross margin is defined as natural gas revenues less natural gas costs; sales tax; a Transitional Energy Facilities Assessment (TEFA), which is included in Energy and other taxes on the Consolidated Statements of Income; and regulatory rider expenses. Management believes that gross margin provides a more meaningful basis for evaluating utility operations than revenue since natural gas costs, sales tax, TEFA and regulatory rider expenses are passed through to customers, and therefore, have no effect on gross margin. Natural gas costs are charged to operating expenses on the basis of therm sales at the prices approved by the New Jersey Board of Public Utilities (BPU) through NJNG’s BGSS tariff. The BGSS allows NJNG to recover natural gas costs. Sales tax is calculated at 6 percent of revenue and excludes sales to cogeneration facilities, other utilities, off-system sales and federal accounts. TEFA is calculated on a per-therm basis and excludes sales to cogeneration facilities, other utilities and off-system sales. Regulatory rider expenses are calculated on a per-therm basis. NJNG’s gross margin also includes benefits received by shareowners under its BGSS incentive programs.

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NJR REPORTS FISCAL YEAR-TO-DATE AND SECOND-QUARTER EARNINGS
PER SHARE; REAFFIRMS EARNINGS GUIDANCE
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•	Impact of Weather and Usage
	Weather during the six months ended March 31, 2006 was 7.4 percent warmer than normal and 9.5 percent warmer than last year. “Normal” weather is based on 20-year average temperatures. The impact of the weather is offset by NJNG’s weather-normalization clause (WNC), which is designed to smooth out year-to-year fluctuations on both NJNG’s gross margin and customers’ bills that may result from changing weather patterns. Included in the WNC is the assumption that usage per degree day is equal to the average over the last four years. As a result of the warmer-than-normal weather, NJNG accrued $7 million of gross margin for the six months ended March 31, 2006, to be collected from customers in the future. However, gross margin was negatively impacted by lower usage per degree day. NJNG believes that this resulted primarily from the impact of the pass-through of higher wholesale natural gas prices on customer usage.
	In December 2005, NJNG filed a proposal with the BPU, which would replace the existing WNC with a Conservation and Usage Adjustment (CUA) clause that would capture variations related to weather and customer usage. The proposal would establish a benchmark for customer usage. NJNG would compare actual results to the benchmark on an annual basis. Any adjustments, positive or negative, would be made in the following year. Discussions on the proposal are taking place with the BPU and the Ratepayer Advocate. If NJNG is not successful in receiving approval of the CUA proposal, it will consider other regulatory strategies to address this issue such as expanded incentive programs and/or the filing of a base rate case.
	Weather for the three months ended March 31 was 11.4 percent warmer than normal and 16.3 percent warmer than last year and included the second warmest January in NJNG’s history.
•	Incentive Programs Continue to Provide Value for Customers and Shareowners
	During the first six months of the fiscal year, NJNG’s gross margin-sharing incentive programs, which include off-system sales, capacity management, storage optimization and financial risk management programs, totaled 21.7 Bcf and $6 million of gross margin, compared with 28.5 Bcf and $4 million of gross margin for the same period last year. For the three months ended March 31, 2006, these programs totaled 11.5 Bcf and $2.9 million of gross margin, compared with 14.1 Bcf and $2.4 million of gross margin for the same period last year. The increase in gross margin in both periods was due primarily to the storage incentive and financial risk management programs, both of which benefited from the volatile wholesale natural gas commodity market. NJNG shares the gross margin earned from these incentive programs with customers and

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NJR REPORTS FISCAL YEAR-TO-DATE AND SECOND-QUARTER EARNINGS
PER SHARE; REAFFIRMS EARNINGS GUIDANCE

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	shareowners according to a gross margin-sharing formula. In April 2006, the BPU authorized a 1-year extension of the incentive programs through October 2007. This fiscal year, customers have saved approximately $28.5 million in natural gas costs through these programs. Since the establishment of these incentive programs in 1992, NJNG customers have saved over $294 million on their natural gas bills, or approximately 4 percent annually.
•	Wholesale Energy Services Growth Continues
	NJRES earned $41.9 million during the first six months of the fiscal year, versus $22 million last year, an increase of 90 percent. For the three months ended March 31, 2006, NJRES earned $27 million, compared with $15.4 million last year. The increase in both periods was due primarily to higher gross margin generated by its diverse portfolio of pipeline and storage capacity contracts. Specifically, in the first half of fiscal 2006, NJRES was able to take advantage of the increased volatility and pricing differentials between geographic regions. NJRES has developed a portfolio of storage and pipeline capacity contracts in the Gulf Coast, Mid-Continent, Appalachia and Eastern Canada, which becomes more valuable when there are changing prices between these regions. These capacity contracts become more valuable when prices change between time periods. Gross margin from this portfolio is also generally greater during the winter months, while the fixed costs of these assets are spread throughout the year. Therefore, the results for the six months are not expected to be indicative of the results for the fiscal year.
•	NJR Home Services (NJRHS) and Other
	This business segment consists of NJRHS, which provides service, sales and installation of appliances to over 143,000 customers; CR&R, which develops commercial real estate; and NJR Energy, which consists primarily of a 5.53 percent equity investment in Iroquois Gas Transmission System, L.P. Earnings for the six months ended March 31, 2006, were $377,000, compared with $6.8 million last year. For the three months ended March 31, 2006, this segment had a loss of $307,000, compared with earnings of $961,000 last year. Last year’s 6-month earnings included an after-tax gain on the sale of a commercial office building of $6 million.
•	Share Repurchase Plan Increased
	In January 2006, the NJR board of directors authorized an increase in the company’s share repurchase plan from 2.5 million to 3.5 million shares. NJR was one of the first companies in the utility industry to implement a repurchase plan. NJR purchased 305,100 shares under the share repurchase plan during the first six months of the fiscal year. The plan gives NJR the financial flexibility to purchase shares on the open market or in negotiated transactions, based on market and other conditions and is expected to create value for shareowners. Since the plan began in September 1996, NJR has invested $94 million to repurchase 2.5 million shares.

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NJR REPORTS FISCAL YEAR-TO-DATE AND SECOND-QUARTER EARNINGS
PER SHARE; REAFFIRMS EARNINGS GUIDANCE
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Fiscal 2006 Earnings Guidance

Assuming a continuation of lower customer usage, stable economic conditions, continued customer growth at NJNG, continued volatility in the wholesale natural gas markets at NJRES, the impact of seasonality on the company’s businesses and subject to the factors discussed below under “Forward-Looking Statements,” NJR continues to estimate that earnings for fiscal 2006 will be in the $2.75–$2.85 per basic share range.

Forward-Looking Statements

This news release contains estimates, earnings guidance and other forward-looking statements within the meaning of 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. Other factors that could cause actual results, including gross margin, earnings and customer growth, to differ materially from the company’s expectations include, but are not limited to, weather, economic conditions and demographic changes in NJNG’s service territory, rate of customer growth, volatility of natural gas commodity prices and its impact on customer usage, and NJRES operations, the impact of the company’s risk management efforts, including commercial and wholesale credit risks, 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, 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 and other uncertainties. More detailed information about these factors is set forth in NJR’s filings with the Securities and Exchange Commission (SEC), including NJR’s annual report on Form 10-K filed on November 29, 2005 and on NJR’s quarterly report filed on Form 10-Q filed on February 7, 2006. NJR’s SEC documents are available at www.sec.gov. NJR does not, by including this paragraph, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.

Webcast Information

NJR will host a live webcast to discuss its financial results today at 2 p.m. ET. To listen to the call, logon to NJR’s Web site, njliving.com, and select “Investor Relations,” then click just below the microphone on the right side of the Investor Relations home page.

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About New Jersey Resources

New Jersey Resources (NYSE:NJR), a Fortune 1000 company and a member of the Forbes Platinum 400, provides reliable retail and wholesale energy services to customers in New Jersey and in states from the Gulf Coast to New England, and Canada. Its principal subsidiary, New Jersey Natural Gas, is one of the fastest-growing local distribution companies in the United States, serving more than 468,000 customers in central and northern New Jersey. Other major NJR subsidiaries include NJR Energy Services and NJR Home Services. NJR Energy Services provides customer service and management of natural gas storage and capacity assets in the unregulated energy services market. NJR Home Services offers retail customers heating, air conditioning and appliance services. NJR’s progress is a tribute to the more than 5,000 dedicated employees who have shared their expertise and focus on quality through more than 50 years of serving customers and the community to make NJR a leader in the competitive energy marketplace. For more information, visit NJR’s Web site at njliving.com.

NEW JERSEY RESOURCES CORPORATION
CONSOLIDATED FINANCIAL RESULTS

(Unaudited)	Three Months Ended				Six Months Ended
Thousands, except per share data	March 31,				March 31,
	2006		2005		2006		2005
Operating Revenues	$	1,064,422	$	1,065,057	$	2,228,998	$	1,919,045
Net Income	$	60,201	$	51,665	$	94,465	$	81,867
Earnings Per Common Share
Basic	$	2.16	$	1.87	$	3.41	$	2.96
Diluted	$	2.14	$	1.84	$	3.37	$	2.90
Average Shares Outstanding
Basic		27,822		27,581		27,686		27,689
Diluted		28,145		28,140		28,000		28,236

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NEW JERSEY RESOURCES
CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)
(Thousands, except per share data)

	Three Months Ended				Six Months Ended
	March 31,				March 31,
	2006		2005		2006		2005
OPERATING REVENUES	$	1,064,422	$	1,065,057	$	2,228,998	$	1,919,045
OPERATING EXPENSES
Gas purchases		882,688		902,924		1,921,163		1,641,350
Operation and maintenance		29,772		24,873		57,503		53,536
Regulatory rider expenses		12,405		14,786		21,863		23,914
Depreciation and amortization		8,612		8,352		17,188		16,711
Energy and other taxes		26,003		25,827		44,670		41,611
Total operating expenses		959,480		976,762		2,062,387		1,777,122
OPERATING INCOME		104,942		88,295		166,611		141,923
Other income and expense		620		1,480		2,262		3,164
Interest charges, net		6,173		4,721		12,656		10,071
INCOME BEFORE INCOME TAXES		99,389		85,054		156,217		135,016
Income tax provision		39,188		33,389		61,752		53,149
NET INCOME	$	60,201	$	51,665	$	94,465	$	81,867
EARNINGS PER COMMON SHARE
BASIC	$	2.16	$	1.87	$	3.41	$	2.96
DILUTED	$	2.14	$	1.84	$	3.37	$	2.90
DIVIDENDS PER COMMON SHARE	$	0.36	$	0.34	$	0.72	$	0.68
AVERAGE SHARES OUTSTANDING
BASIC		27,822		27,581		27,686		27,689
DILUTED		28,145		28,140		28,000		28,236

Page 9 of 12
NEW JERSEY RESOURCES

	Three Months Ended						Six Months Ended
(Unaudited)	March 31,						March 31,
(Thousands, except per share data)	2006			2005			2006			2005
Operating Revenues
New Jersey Natural Gas	$	471,406		$	462,576		$	865,752		$	783,046
NJR Energy Services		587,525			596,921			1,350,720			1,113,792
NJR Home Services and Other		5,560			5,585			12,663			22,256
Sub-total		1,064,491			1,065,082			2,229,135			1,919,094
Intercompany Eliminations		(69	)		(25	)		(137	)		(49	)
Total	$	1,064,422		$	1,065,057		$	2,228,998		$	1,919,045
Operating Income
New Jersey Natural Gas	$	57,493		$	60,353		$	90,940		$	92,149
NJR Energy Services		48,062			26,581			75,163			38,743
NJR Home Services and Other		(613	)		1,361			508			11,031
Total	$	104,942		$	88,295		$	166,611		$	141,923
Net Income (Loss)
New Jersey Natural Gas	$	33,509		$	35,258		$	52,192		$	53,091
NJR Energy Services		26,999			15,446			41,896			22,006
NJR Home Services and Other		(307	)		961			377			6,770
Total	$	60,201		$	51,665		$	94,465		$	81,867
Throughput (Bcf)
NJNG, Core Customers		27.0			32.3			47.8			53.2
NJNG, Incentive Programs		11.5			14.1			21.7			28.6
NJRES Fuel Mgmt. and Wholesale Sales		62.1			82.9			119.6			152.6
Total		100.6			129.3			189.1			234.4
Common Stock Data
Yield at March 31		3.2	%		3.1	%		3.2	%		3.1	%
Market Price
High	$	45.96		$	45.50		$	46.95		$	45.50
Low	$	41.49		$	41.20		$	40.68		$	40.54
Close at March 31	$	45.25		$	43.53		$	45.25		$	43.53
Shares Out. at March 31		27,951			27,435			27,951			27,435
Market Cap. at March 31	$	1,264,783		$	1,194,246		$	1,264,783		$	1,194,246

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NEW JERSEY NATURAL GAS

	Three Months Ended				Six Months Ended
(Unaudited)	March 31,				March 31,
(Thousands, except customer & weather data)	2006		2005		2006		2005
Operating Revenues
Residential	$	300,721	$	275,070	$	486,265	$	436,239
Commercial, Industrial & Other		68,911		69,572		135,887		110,733
Firm Transportation		8,316		10,963		16,671		19,724
Total Firm Revenues		377,948		355,605		638,823		566,696
Interruptible		1,838		1,975		4,647		6,111
Total System Revenues		379,786		357,580		643,470		572,807
Incentive Programs		91,620		104,996		222,282		210,239
TOTAL REVENUES	$	471,406	$	462,576	$	865,752	$	783,046
Gross Margin and Operating Income
Residential	$	65,719	$	65,259	$	109,961	$	109,322
Commercial, Industrial & Other		12,518		12,430		20,945		20,823
Firm Transportation		6,479		8,160		12,861		14,805
Total Firm Margin		84,716		85,849		143,767		144,950
Interruptible		222		260		528		567
Total System Margin		84,938		86,109		144,295		145,517
Incentive Programs		2,932		2,438		6,046		4,008
TOTAL GROSS MARGIN		87,870		88,547		150,341		149,525
Operation and maintenance expense		21,104		19,268		40,971		39,497
Depreciation and amortization		8,477		8,187		16,900		16,304
Other taxes not reflected in gross margin		796		739		1,530		1,575
OPERATING INCOME	$	57,493	$	60,353	$	90,940	$	92,149
Throughput (Bcf)
Residential		19.4		21.8		32.1		34.4
Commercial, Industrial & Other		4.3		5.6		8.0		8.9
Firm Transportation		2.3		3.4		4.9		5.8
Total Firm Throughput		26.0		30.8		45.0		49.1
Interruptible		1.0		1.5		2.8		4.1
Total System Throughput		27.0		32.3		47.8		53.2
Incentive Programs		11.5		14.1		21.7		28.6
TOTAL THROUGHPUT		38.5		46.4		69.5		81.8
Customers
Residential		425,225		414,558		425,225		414,558
Commercial, Industrial & Other		30,106		29,533		30,106		29,533
Firm Transportation		12,731		15,147		12,731		15,147
Total Firm Customers		468,062		459,238		468,062		459,238
Interruptible		48		51		48		51
Total System Customers		468,110		459,289		468,110		459,289
Incentive Programs		43		37		43		37
TOTAL CUSTOMERS		468,153		459,326		468,153		459,326

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NEW JERSEY NATURAL GAS

	Three Months Ended						Six Months Ended
(Unaudited)	March 31,						March 31,
(Thousands, except customer & weather data)	2006			2005			2006			2005
Degree Days
Actual		2,240			2,677			3,914			4,327
Normal		2,527			2,527			4,228			4,219
Percent of Normal		88.6	%		105.9	%		92.6	%		102.6	%
NJR ENERGY SERVICES
Operating Revenues	$	587,525		$	596,921		$	1,350,720		$	1,113,792
Gas Purchases		536,038			568,155			1,269,381			1,070,604
Gross Margin	$	51,487		$	28,766		$	81,339		$	43,188
Operating Income	$	48,062		$	26,581		$	75,163		$	38,743
Net Income	$	26,999		$	15,446		$	41,896		$	22,006
Gas Sold and Managed (Bcf)		62.1			82.9			119.6			152.6
NJR HOME SERVICES AND OTHER
Operating Revenues	$	5,560		$	5,585		$	12,663		$	22,256
Operating Income (Loss)		($613	)	$	1,361		$	508		$	11,031
Net Income (Loss)		($307	)	$	961		$	377		$	6,770
Total Customers at March 31		143,503			140,864			143,503			140,864

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NEW JERSEY RESOURCES
ADJUSTED NET INCOME AND EARNINGS PER SHARE RECONCILIATION

Provided below is a reconciliation of as reported and as adjusted information for Net Income and basic and diluted earnings per share for the six months ended March 31, 2005. This reconciliation reflects the impact of a gain on the impact of a gain on the sale of a commercial office building and a charge related to an early retirement program for officers.

Management believes that this reconciliation is needed due to the unusual nature of the two items described above and that they are not indicative of core results. It also provides for a more consistent comparison for year-over-year results.

(Unaudited)	Six Months Ended
(Thousands, except per share data)	March 31, 2005
	NJNG		NJRES		NJRHS and			Total
					Other
Net Income, as reported	$	53,091	$	22,006	$	6,770		$	81,867
Exclude:
Gain on sale of commercial office building						(5,972	)		(5,972	)
Charge for early retirement program		915		8		569			1,492
Net Income, as adjusted	$	54,006	$	22,014	$	1,367		$	77,387
Earnings per share basic, as reported								$	2.96
Exclude:
Gain on sale of commercial office building									(.22	)
Charge for early retirement program									.05
Earnings per share basic, as adjusted								$	2.79
Earnings per share diluted, as reported								$	2.90
Exclude:
Gain on sale of commercial office building									(.21	)
Charge for early retirement program									.05
Earnings per share diluted, as adjusted								$	2.74

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