EX-99.2 3 d634039dex992.htm EX-99.2 EX-99.2
Fiscal 2013 Year-End Review
November 25, 2013
Exhibit 99.2

Regarding Forward-Looking Statements
1
Certain
statements
contained
in
this
presentation
are
forward-looking
statements
within
the
meaning
of
the
Private
Securities
Litigation
Reform
Act
of
1995.
Words
such
as
“anticipates,”
“estimates,”
“expects,”
“projects,”
“may,”
"will,"
“intends,”
“expects,”
"believes,"
or
“should”
and
similar
expressions
may
identify
forward-looking
information
and
such
forward-looking
statements
are
made
based
upon
management’s
current
expectations
and
beliefs
as
of
this
date
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
NJR
will
be
those
anticipated
by
management.
NJR
cautions
persons
reading
or
hearing
this
presentation
that
the
assumptions
that
form
the
basis
for
forward-looking
statements
regarding
NJR’s
dividend
growth
goal,
NJR's
net
financial
earnings
(NFE)
for
fiscal
2014,
forecasted
contribution
of
business
segments
to
fiscal
2014,
long-term
financial
goals,
growth
initiatives
and
NFE
forecasts
of
NJR,
expected
contribution
by
new
customers
of
New
Jersey
Natural
Gas
Company
(NJNG)
to
utility
gross
margin,
expected
number
of
new
customers
of
NJNG,
new
sources
of
utility
gross
margin
at
NJNG
for
2014
through
2017,
Solar
Renewable
Energy
Certificate
(SREC)
prices,
NJR’s
effective
tax
rate,
estimated
capital
expenditures
in
fiscal
2014
and
beyond
by
NJNG
and
NJRCEV,
planned
natural
gas
vehicle
(NGV)
stations,
the
diversification
of
NJRCEV’s
strategy,
the
impact
of
the
Two
Dot
Wind
farm
on
earnings,
and
NJRES’
growth
opportunities
include
many
factors
that
are
beyond
the
Company’s
ability
to
control
or
estimate
precisely,
such
as
estimates
of
future
market
conditions
and
the
behavior
of
other
market
participants.
The
factors
that
could
cause
actual
results
to
differ
materially
from
NJR’s
expectations
include,
but
are
not
limited
to,
weather
and
economic
conditions;
demographic
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
Basic
Gas
Supply
Service
incentive
programs,
NJRES'
operations
and
on
the
Company's
risk
management
efforts;
changes
in
rating
agency
requirements
and/or
credit
ratings
and
their
effect
on
availability
and
cost
of
capital
to
the
Company;
the
impact
of
volatility
in
the
credit
markets;
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
postemployment
benefit
plans
as
a
result
of
downturns
in
the
financial
markets,
a
lower
discount
rate,
and
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
approvals
and/or
financing
for
the
construction,
development
and
operation
of
certain
non-regulated
energy
investments;
risks
associated
with
the
management
of
the
Company's
joint
ventures
and
partnerships;
risks
associated
with
our
investments
in
renewable
energy
projects
and
our
investment
in
an
on-shore
wind
developer,
including
the
availability
of
regulatory
and
tax
incentives,
logistical
risks
and
potential
delays
related
to
construction,
permitting,
regulatory
approvals
and
electric
grid
interconnection,
the
availability
of
viable
projects
and
NJR's
eligibility
for
federal
investment
tax
credits
(ITC),
and
production
tax
credits
(PTC),
the
future
market
for
SRECs
and
operational
risks
related
to
projects
in
service;
timing
of
qualifying
for
ITCs
due
to
delays
or
failures
to
complete
planned
solar
energy
projects
and
the
resulting
effect
on
our
effective
tax
rate
and
earnings;
the
level
and
rate
at
which
NJNG's
costs
and
expenses
(including
those
related
to
restoration
efforts
resulting
from
Superstorm
Sandy)
are
incurred
and
the
extent
to
which
they
are
allowed
to
be
recovered
from
customers
through
the
regulatory
process;
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,
including
a
work
stoppage;
the
regulatory
and
pricing
policies
of
federal
and
state
regulatory
agencies;
the
possible
expiration
of
the
NJNG
Conservation
Incentive
Program
(CIP);
the
costs
of
compliance
with
present
and
future
environmental
laws,
including
potential
climate
change-related
legislation;
risks
related
to
changes
in
accounting
standards;
the
disallowance
of
recovery
of
environmental-related
expenditures
and
other
regulatory
changes;
environmental-related
and
other
litigation
and
other
uncertainties;
risks
related
to
cyber-attack
of
failure
of
information
technology
systems;
and
the
impact
of
natural
disasters,
terrorist
activities,
and
other
extreme
events
on
our
operations
and
customers,
including
any
impacts
to
utility
gross
margin,
and
restoration
costs
resulting
from
Superstorm
Sandy.
The
aforementioned
factors
are
detailed
in
the
“Risk
Factors”
sections
of
our
Annual
Report
on
Form
10-K
filed
on
November
28,
2012,
as
filed
with
the
Securities
and
Exchange
Commission
(SEC),
our
Annual
Report
on
Form
10-K
to
be
filed
on
November
25,
2013,
and
our
Quarterly
Report
on
Form
10-Q,
filed
with
the
SEC
on
May
3,
2013,
each
of
which
is
available
on
the
SEC’s
website
at
sec.gov.
Information
included
in
this
presentation
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.
1

Disclaimer Regarding Non-GAAP Financial Measures
This
presentation
includes
the
non-GAAP
measures
net
financial
earnings
(losses),
financial
margin
and
utility
gross
margin.
As
an
indicator
of
the
Company’s
operating
performance,
these
measures
should
not
be
considered
an
alternative
to,
or
more
meaningful
than,
GAAP
measures,
such
as
cash
flow,
net
income,
operating
income
or
earnings
per
share.
Net
financial
earnings
(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.
Volatility
associated
with
the
change
in
value
of
these
financial
and
physical
commodity
contracts
is
reported
in
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
as
opposed
to
when
the
planned
transaction
ultimately
is
settled.
NJNG’s
utility
gross
margin
represents
the
results
of
revenues
less
natural
gas
costs,
sales
and
other
taxes
and
regulatory
rider
expenses,
which
are
key
components
of
the
Company’s
operations
that
move
in
relation
to
each
other.
Management
uses
net
financial
earnings
(NFE),
financial
margin
and
utility
gross
margin
as
supplemental
measures
to
other
GAAP
results
to
provide
a
more
complete
understanding
of
the
Company’s
performance.
Management
believes
these
non-GAAP
measures
are
more
reflective
of
the
Company’s
business
model,
provide
transparency
to
investors
and
enable
period-to-period
comparability
of
financial
performance.
For
a
full
discussion
of
our
non-GAAP
financial
measures,
please
see
Item
7
of
our
Annual
Report
on
Form
10-K
for
the
fiscal
year
ended
September
30,
2012,
filed
on
November
28,
2012.
This
information
has
been
provided
pursuant
to
the
requirements
of
SEC
Regulation
G.
2
2

Fiscal 2013 -
Highlights of a Challenging Year
Achieved our 22
nd
consecutive year of higher NFE; increased
dividend for the 18
th
consecutive year
Despite Superstorm Sandy,  added 11 percent more new utility
customers than fiscal 2012
Invested $60 million in solar and recently announced first wind
project
NJRES nearly doubled its NFE from fiscal 2012
Generator sales and equipment installations led to improved Home
Services results
Established a platform to support long-term growth
3

NJR Delivered Improved Performance in the Quarter and
Fiscal Year
4
Company
2013
2012
2013
2012
New Jersey Natural Gas
$(3.1)
$(5.2)
$73.8
$73.2
NJR Energy Services
(2.2)
(7.3)
19.3
10.8
NJR Clean Energy
1.0
(1.4)
10.1
19.5
NJR Midstream
1.6
1.3
7.2
6.8
NJR Home Services/Other
2.5
1.5
3.3
2.1
Total
$(0.2)
$(11.1)
$113.7
$112.4
Per basic share
$(.01)
$(.27)
$2.73
$2.71
September 30,
September 30,

Despite Superstorm Sandy, NJNG Delivered Improved
Results
5
Approximately 75 percent of Sandy customers back
$26.1 million invested in system restoration
Will seek recovery in November 2015 base rate case
$14.8 million in deferred O&M costs
(Thousands)
2013 vs. 2012
Customer Impact
$3,221
AIP
821
SAVEGREEN
1,018
Superstorm Sandy
(3,362)
Total
$1,698
Change in NJNG Gross Margin

Fiscal 2013 Segment Results
6
NJR Energy Services --
Benefited from pockets of cold winter and hot
summer weather
NJR Midstream --
Improvement from lower expenses and improved
performance at Iroquois Pipeline
NJR Clean Energy Ventures --
Lower capital spending due to grid-
connected approval process
NJR Home Services --
Higher results from increased generator sales
and equipment installations

$1.00
$1.20
$1.40
$1.60
$1.80
$2.00
$2.20
$2.40
$2.60
$2.80
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$1.61
$1.73
$1.80
$1.88
$2.11
$2.24
$2.40
$2.46
$2.58
$2.71
$2.73
Net Financial Earnings Per Share
7
Fiscal 2013 Net Financial Earnings
7

$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
2007
2008
2009
2010
2011
2012
2013
2014*
$1.01
$1.12
$1.24
$1.36
$1.44
$1.54
$1.62
$1.68
Dividend Growth
Goal is to grow dividend 5 percent annually
Growing and Sustainable Dividend
* Current annual rate
** Based on NJR net financial earnings
*** Peer group average based on 2013 earnings estimates and indicated dividend from Bloomberg. Peer group:   ATO, GAS, LG,
NWN, PNY, SJI,  SWX, VVC and WGL
8
0%
16%
33%
49%
65%
2007
2008
2009
2010
2011
2012
2013
Peer Group***
48%
50%
52%
55%
56%
57%
59%
63%
Payout Ratio**

Fiscal 2014 NFE Per Share Guidance -
$2.75 to $2.95
9
New Jersey
Natural Gas
60-70%
NJR Midstream
5-10%
NJR Clean Energy
Ventures
10-20%
NJR Home
Services
2-5%
NJR Energy
Services
5-15%
Regulated businesses expected to contribute                    
65-80 percent of total NFE

4 to 7 Percent Average Long-Term Annual NFE
Growth Strategies
Regulated Businesses
Significant increase in NJNG
regulated infrastructure
investments
Diversified sources of NJNG
gross margin
November 2015 base
rate filing
Targeted growth from        
NJR Midstream
Non-Regulated Businesses
Diversify clean energy
portfolio
Expand onshore wind
investments
Steady contributions from   
NJR Energy Services
Expanded products and
markets at NJR Home Services
10

7,456 new customers in fiscal
2013,
up
11
percent
over
last
year; highest number since 2008
3,627 new construction
customers;
up 27 percent over
last year
3,829 conversions from other
fuels;
51
percent
of
total
11
NJNG Customer Growth Estimated to Add $3.9 Million
Annually of Utility Gross Margin
Over next two fiscal years, NJNG expects to add              
14,000-16,000 new customers
619 existing customer heat
conversions
in
fiscal
2013

12
Key Trends Support Future Customer Growth
Non Heat
6,900
On Main
37,749
Near Main
28,974
Off Main
47,840
Future Conversions
Sources for new construction: Arthur D. Little, Harte Hanks and NJNG
Source for Population change: US Census Bureau
0.0%
5.0%
10.0%
15.0%
NJ
Morris
Monmouth
Ocean
4.5%
4.7%
2.5%
12.8%
Population Change 2000-2010
Source for Fuel Pricing: US Energy Information Administration. *
Data as of November
2013. Based on 100,000 comparable BTUs
Demographics
Fuel Pricing
2014-
2017
17,350
2019-
Buildout
66,993
Future New Construction

Capital of Over $1 Billion Drives Long-Term Growth
NJNG Expects Base Rate Case Resolution by Fiscal 2017
13
NJNG Capital Expenditure Estimates
($mm)
2009-
2012
Actual
2013A
2014E
2015E
2016E
2017E
Total
Customer Growth
$79.4
$24.5
$24.7
$25.6
$25.5
$25.5
$205.2
Maintenance/Other
177.4
42.5
63.3
55.9
48.1
40.6
427.8
AIP/SAFE
136.7
45.3
31.6
33.7
39.1
-
286.4
Superstorm Sandy
-
26.1
5.3
5.2
-
-
36.6
NGV Advantage
-
1.0
9.0
-
-
-
10.0
NJ RISE
-
-
4.6
13.0
12.0
12.0
41.6
Liquefaction/LNG
-
-
16.0
16.3
3.4
-
35.7
Southern Reliability
-
-
2.3
12.3
80.6
34.8
130.0
SAVEGREEN
36.5
24.0
42.5
42.5
-
-
145.5
Total
$430.0
$163.4
$199.3
$204.5
$208.7
$112.9
$1,318.8

Current NJNG Infrastructure Investments
14
SAFE
(Safety Acceleration and Facility Enhancement Program)-
$130 million
over four years to replace 276 miles of cast iron and unprotected steel main
FISCAL
2014
GOAL:
Invest
$32
million,
complete
79
miles
of
replacement
pipe
Superstorm Sandy -
Range of $35 to $40 million over three years
FISCAL
2014
GOAL:
Deploy
$5
million
for
continuing
system
restoration
FISCAL
2014
GOAL:
Seek
to
commit
remaining
capital
of
$2
-
$4
million
of
capital before December 2013; Open CNG stations to public
FISCAL
2014
GOAL:
Implement
and
expand
program
offerings
to
residential and commercial customers
SAVEGREEN –
Promotes customer investment in high-efficiency heating
equipment; invest up to $85 million over the next two years
NGV Advantage -
Total investment up to $10 million; $6 -
$8 million already
committed to three refueling stations

Planned NJNG Infrastructure Capital Projects
NJ
RISE
(Reinvestment
in
System
Enhancement)
-
$102
million
NJNG storm response plan filed with NJ BPU on September 3, 2013
Additional pipe to barrier islands and excess flow valves
FISCAL
2014
GOAL:
Develop
regulatory
review
process;
will
set
timetable
for NJ BPU decision this fiscal year
Liquefaction Facility/LNG Upgrades -
$35.7 million
Reduces LNG transportation costs and creates customer savings
FISCAL
2014
GOAL:
Invest
$16
million
in
equipment;
completion
by
fiscal
2016
Southern Reliability Link (SRL) -
$130 million
Adding high-pressure natural gas pipeline to support reliability, diversify
supplier base and support growth in Ocean County
FISCAL
2014
GOAL:
Finalize
route
selection
and
engineering
design;
submit engineering studies to NJ BPU
15

Diversified and Growing NJNG Gross Margin
Incremental utility gross margin expected to more than double  
by fiscal 2017
16

Targeted Growth from Regulated NJR Midstream
Current investments provide 5 to 10 percent of NFE
Strategic Marcellus location supports value
Leverage customer contacts to identify new opportunities
17
Iroquois Pipeline
5.53 percent interest in gas pipeline
to serve the Northeast market
Steckman Ridge
50/50 joint venture with Spectra Energy
12 Bcf natural gas storage facility in SW PA

Clean Energy Portfolio Strategy
Renewable Portfolio Standard (RPS) provides a growing source
of demand
62 MW inventory of grid-connected projects over next three years
Sunlight Advantage residential solar program
Eliminate reliance on solar ITC by January 2017
Currently estimate approximately 174,000 SRECs by fiscal 2017
Solar investments beyond 2017 depend on market conditions
FISCAL 2014 GOALS:
Solar spending of $60-$95 million
One or two onshore wind projects in the 20-70 MW range
18
Continue to diversify into onshore wind projects and other clean
energy investments

Clean Energy Portfolio Diversification: Onshore Wind
Why are we doing this?
Supports NJR’s electric strategy
Earnings growth opportunities supported by long-term Power Purchase
Agreements (PPAs) with annuity-like returns
29 states and the District of Columbia have RPS
Tax credits are production based
How will growth continue?
Increase SREC revenue; higher prices and volume
Invest in onshore wind projects and other clean energy investments
Regulated earnings growth
19

Clean Energy Portfolio Diversification:  Two Dot Wind Farm
Announced on October 23, 2013
9.7 MW utility scale wind farm project                         
located in Montana, east of Helena
Approximately $22 million investment;                   
PTC eligible
25-year PPA in place to sell power
to NorthWestern Energy to support their
RPS requirement
Strong partners -
GE, Mortenson                                                  
Construction, etc.
Current Status:
Construction work underway
All turbines to be on site in December
Commercial operations on track for
summer 2014
20
Two Dot
NJR expects Two Dot to contribute to earnings in
fiscal fourth quarter 2014

NJRES: Growth Opportunities in a Changing Market
Portfolio restructured to succeed in current market
Growth opportunities from physical natural gas and producer services
Providing energy solutions for diverse customers in the Marcellus Shale
and other natural gas regions
Producers, Utilities, Power Generators,                        
Pipelines and Industrials
Holds 1.1 Bcf/day of firm transportation
and more than 33 Bcf of storage
throughout the U.S. and Canada
5 to 15 percent of total NFE                                   
in fiscal 2014
21

NJR Home Services: Retail Solutions for Customer Comfort
Majority of earnings derived from service contracts
Approximately 121,000 service contract customers
Expanded array of services now offered
Whole-house electric and plumbing contracts
Standby generator contracts
Air conditioning
Generators
Brand recognition provides
customer confidence
2 to 5 percent of total NFE                                    
in fiscal 2014
22

NJR Affirms Long-Term Financial Goals
Achieve average long-term NFE growth of 4 to 7 percent
Significant capital investment in regulated business to support customer
growth and maintain safe, reliable and resilient service
New customers and regulatory initiatives generate significant NJNG utility
gross margin growth
Provide annual dividend growth of at least 5 percent
Targeted payout ratio of 60 to 65 percent
Expect at least 65 to 80 percent of earnings from Regulated Businesses
Supported by constructive and collaborative regulatory relationships
23

Delivering consistent net financial
earnings and dividend growth
Investing significantly in NJNG’s
infrastructure to enhance system
reliability
Diversifying and growing NJNG’s gross
margin
Committing capital to clean energy
portfolio
Growing other energy-related, non-utility
businesses
NJR Will Continue to Meet Customer and Investor
Expectations
24

Fiscal 2013 Year-End Review
November
25, 2013