The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Please note that a negative Earnings ESP reading is not indicative of an earn ...

New Jersey Resources (NJR) continues to benefit from its infrastructure upgrades that help serve the company's expanding customer base more efficiently. Given its earnings growth opportunities and strong return on equity (ROE), NJR makes for a solid investment option in the utility sector. NJR has been increasing the value of its shareholders by paying out dividends. Currently, its quarterly dividend is 42 cents per share, resulting in an annualized dividend of $1.68 per share, up 7.7% from the previous fig ...

strickke 1. It is reliable. By that, I mean it can't be steady for a while, only to plunge from dividend suspensions/cuts in any given year. 2. It is consistently growing enough to keep up with inflation. Even if a portfolio's passive income remains constant over the years, that's not enough by itself to sustain a viable retirement. Flat income year after year is itself a stealth dividend cut in my view. That is why I believe it is so critical for dividend growth investors to be laser-focused on quality wit ...

Core Viewpoint - New Jersey Resources (NJR) is positioned as a strong investment option in the utility sector due to its infrastructure upgrades, earnings growth opportunities, and robust return on equity (ROE) [1] Growth Projections & Surprise History - NJR has delivered an average earnings surprise of 107.4% over the last four quarters [2] Return on Equity - NJR's current ROE stands at 12.16%, surpassing the industry average of 9.7%, indicating more effective utilization of funds compared to peers in the utility gas distribution sector [3] Dividend Growth - NJR has increased its quarterly dividend to 42 cents per share, resulting in an annualized dividend of $1.68 per share, which is a 7.7% increase from the previous $1.56. The current dividend yield is 3.99%, significantly higher than the Zacks S&P 500 composite's 1.29% [4] Systematic Investments & Customer Growth - The company is making consistent investments to upgrade its infrastructure, with expected capital investments of $619-$754 million for fiscal 2024 and $578-$742 million for fiscal 2025 [5] - NJR added 4,058 new customers in the first six months of fiscal 2024, slightly down from 4,064 in the same period of fiscal 2023, which is expected to contribute approximately $3.4 million in incremental utility gross margin annually [12] Price Performance - Over the past three months, NJR shares have increased by 2%, outperforming the sector's growth of 1.4% [13]

Group 1: Rate Revision and Impact - New Jersey Natural Gas (NJNG) has filed for a rate revision with the New Jersey Board of Public Utilities (BPU), which, if approved, will increase the utility bill of a typical residential customer using 100 therms a month by 0.5% or 71 cents per month, effective from October 1, 2024 [1] - NJNG is seeking a reduction in its annual Basic Gas Supply Service (BGSS) rate, offset by an increase to its Balancing Charge, with a minimal decrease of 0.1% related to the Conservation Incentive Program (CIP) due to warmer-than-normal winter weather [2][3] - NJNG aims for a 0.6% increase in its energy-efficiency recovery filing to cover costs associated with its SAVEGREEN programs [2] Group 2: Capital Investments - New Jersey Resources plans capital investments between $619 million and $754 million for fiscal 2024 and between $578 million and $742 million for fiscal 2025, aimed at upgrading and maintaining infrastructure to support an expanding customer base [4] - Systematic capital expenditure is expected to support a long-term earnings growth target of 7-9% [4] Group 3: Industry Demand and Growth Opportunities - The demand for natural gas is increasing due to its clean-burning nature, wide availability, and rising awareness against emissions, with one residential customer signing up for natural gas service every minute and 80 businesses adding natural gas service each day [6] - The rising demand for natural gas presents growth opportunities for companies like Atmos Energy Corporation (ATO), MDU Resources (MDU), and UGI Corporation (UGI), each currently holding a Zacks Rank 2 (Buy) [7] - The current dividend yields for Atmos Energy, MDU Resources, and UGI are 2.78%, 1.98%, and 5.89%, respectively, outperforming the Zacks S&P 500 composite's yield of 1.57% [7] Group 4: Earnings Estimates - The Zacks Consensus Estimate for fiscal 2024 earnings per share has increased for ATO, MDU, and UGI by 0.9%, 1.3%, and 2.1%, respectively, over the past 60 days [8]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 NEW JERSEY RESOURCES CORPORATION (Exact name of registrant as specified in its charter) New Jersey 22-2376465 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) 1415 Wyckoff Road (732) 938‑1480 (Address of principal executive offices) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TR ...

New Jersey Resources (NJR) came out with quarterly earnings of $1.40 per share, beating the Zacks Consensus Estimate of $1.32 per share. This compares to earnings of $1.16 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.06%. A quarter ago, it was expected that this energy services holding company would post earnings of $0.82 per share when it actually produced earnings of $0.74, delivering a surprise of -9.76%.Over the last ...

Exhibit 99.1 NEW JERSEY RESOURCES REPORTS FISCAL 2024 SECOND-QUARTER RESULTS WALL, N.J., May 7, 2024 — Today, New Jersey Resources Corporation (NYSE: NJR) reported results for the second quarter of fiscal 2024. Highlights include: Second-quarter fiscal 2024 net income totaled $120.8 million, or $1.23 per share, compared with $110.2 million, or $1.14 per share, for the same period in fiscal 2023. Fiscal 2024 year-to-date net income totaled $210.2 million, or $2.14 per share, compared with $226.2 million, or ...

[GLOSSARY OF KEY TERMS](index=4&type=section&id=Glossary%20of%20Key%20Terms) This section defines key terms used throughout the report to ensure clarity and consistent understanding [INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS](index=6&type=section&id=Information%20Concerning%20Forward-Looking%20Statements) This section outlines the nature of forward-looking statements, emphasizing inherent risks and uncertainties that may cause actual results to differ materially - The report contains forward-looking statements based on management's current expectations, assumptions, and beliefs, which are subject to various risks and uncertainties beyond the company's control[13](index=13&type=chunk)[14](index=14&type=chunk) - Key factors that could cause actual results to differ materially include governmental and regulatory approvals, clean energy project risks (incentives, tax credits, market for RECs), commercial and wholesale credit risks, commodity price volatility, and impacts of inflation[14](index=14&type=chunk)[15](index=15&type=chunk) [PART I. FINANCIAL INFORMATION](index=7&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [ITEM 1. Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=ITEM%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for New Jersey Resources Corporation, including statements of operations, comprehensive income, cash flows, balance sheets, and common stock equity, along with detailed notes explaining the nature of business, significant accounting policies, revenue recognition, regulatory environment, derivative instruments, fair value measurements, equity investments, earnings per share, debt, employee benefits, income taxes, leases, commitments, segment data, and related party transactions [CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20(Unaudited)) This statement provides a summary of the company's revenues, expenses, and net income for the three months ended December 31, 2023 and 2022 Condensed Consolidated Statements of Operations (Unaudited) - Three Months Ended December 31 | (Thousands, except per share data) | 2023 | 2022 | | :--------------------------------- | :---------- | :---------- | | **OPERATING REVENUES** | | | | Utility | $293,093 | $357,409 | | Nonutility | 174,117 | 366,158 | | Total operating revenues | 467,210 | 723,567 | | **OPERATING EXPENSES** | | | | Natural gas purchases: | | | | Utility | 116,120 | 182,446 | | Nonutility | 59,477 | 232,070 | | Related parties | 1,879 | 1,827 | | Operation and maintenance | 94,439 | 79,501 | | Regulatory rider expenses | 19,189 | 18,251 | | Depreciation and amortization | 40,287 | 36,683 | | Total operating expenses | 331,391 | 550,778 | | **OPERATING INCOME** | 135,819 | 172,789 | | Other income, net | 6,341 | 4,655 | | Interest expense, net | 31,473 | 29,491 | | INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES | 110,687 | 147,953 | | Income tax provision | 22,936 | 32,978 | | Equity in earnings of affiliates | 1,660 | 946 | | **NET INCOME** | $89,411 | $115,921 | | **EARNINGS PER COMMON SHARE** | | | | Basic | $0.91 | $1.20 | | Diluted | $0.91 | $1.19 | | **WEIGHTED AVERAGE SHARES OUTSTANDING** | | | | Basic | 97,869 | 96,485 | | Diluted | 98,563 | 97,083 | - Total operating revenues decreased by **$256.357 million (35.4%)** from $723.567 million in Q1 2022 to $467.210 million in Q1 2023[17](index=17&type=chunk) - Net income decreased by **$26.510 million (22.9%)** from $115.921 million in Q1 2022 to $89.411 million in Q1 2023[17](index=17&type=chunk) - Diluted EPS decreased by **$0.28 (23.5%)** from $1.19 in Q1 2022 to $0.91 in Q1 2023[17](index=17&type=chunk) [CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME%20(Unaudited)) This statement details the components of comprehensive income, including net income and other comprehensive income, for the three months ended December 31, 2023 and 2022 Condensed Consolidated Statements of Comprehensive Income (Unaudited) - Three Months Ended December 31 | (Thousands) | 2023 | 2022 | | :-------------------------------- | :-------- | :-------- | | Net income | $89,411 | $115,921 | | Other comprehensive income, net of tax: | | | | Reclassifications of losses to net income on derivatives designated as hedging instruments, net of tax | 264 | 263 | | Adjustment to postemployment benefit obligation, net of tax | 131 | 41 | | Other comprehensive income, net of tax | $395 | $304 | | Comprehensive income | $89,806 | $116,225 | - Comprehensive income decreased by **$26.419 million (22.7%)** from $116.225 million in Q1 2022 to $89.806 million in Q1 2023[18](index=18&type=chunk) [CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS%20(Unaudited)) This statement presents the cash flows from operating, investing, and financing activities for the three months ended December 31, 2023 and 2022 Condensed Consolidated Statements of Cash Flows (Unaudited) - Three Months Ended December 31 | (Thousands) | 2023 | 2022 | | :---------------------------------------- | :---------- | :---------- | | **CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES** | | | | Net income | $89,411 | $115,921 | | Adjustments to reconcile net income to cash flows from operating activities | | | | Unrealized (gain) on derivative instruments | (5,400) | (31,503) | | Depreciation and amortization | 40,287 | 36,683 | | Deferred income taxes | 18,758 | 11,861 | | Changes in components of working capital | (97,615) | (335,025) | | Cash flows from (used in) operating activities | 46,415 | (88,947) | | **CASH FLOWS USED IN INVESTING ACTIVITIES** | | | | Expenditures for: | | | | Utility plant | (71,166) | (74,742) | | Solar equipment | (25,766) | (43,993) | | Storage and Transportation and other | (8,713) | (19,859) | | Cash flows used in investing activities | (113,792) | (145,562) | | **CASH FLOWS FROM FINANCING ACTIVITIES** | | | | Proceeds from long-term debt | 50,000 | 175,000 | | Proceeds from short-term debt, net | 16,550 | 40,500 | | Payments of common stock dividends | (40,981) | (34,508) | | Cash flows from financing activities | 69,289 | 235,925 | | Change in cash, cash equivalents and restricted cash | 1,912 | 1,416 | | Cash, cash equivalents and restricted cash at end of period | $3,429 | $2,868 | - Cash flows from operating activities significantly improved, moving from a net outflow of **$(88.947) million** in Q1 2022 to a net inflow of **$46.415 million** in Q1 2023, primarily due to decreased working capital requirements[21](index=21&type=chunk)[345](index=345&type=chunk) - Cash flows used in investing activities decreased by **$31.770 million**, mainly due to lower solar asset and Storage and Transportation expenditures[21](index=21&type=chunk)[346](index=346&type=chunk) - Cash flows from financing activities decreased by **$166.636 million**, driven by lower proceeds from long-term debt, net short-term debt, and solar sale leasebacks[21](index=21&type=chunk)[349](index=349&type=chunk) [CONDENSED CONSOLIDATED BALANCE SHEETS](index=10&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) This statement provides a snapshot of the company's assets, liabilities, and equity as of December 31, 2023, and September 30, 2023 Condensed Consolidated Balance Sheets - As of December 31, 2023 and September 30, 2023 | (Thousands) | December 31, 2023 | September 30, 2023 | | :-------------------------------- | :---------------- | :----------------- | | **ASSETS** | | | | Property, plant and equipment, net | $5,096,535 | $5,022,055 | | Current assets | 676,958 | 532,077 | | Noncurrent assets | 975,555 | 983,364 | | **Total assets** | $6,749,048 | $6,537,496 | | **CAPITALIZATION AND LIABILITIES** | | | | Common stock equity | $2,066,201 | $1,990,735 | | Long-term debt | 2,738,997 | 2,768,017 | | Total capitalization | 4,805,198 | 4,758,752 | | Current liabilities | 962,032 | 806,603 | | Noncurrent liabilities | 981,818 | 972,141 | | **Total capitalization and liabilities** | $6,749,048 | $6,537,496 | - Total assets increased by **$211.552 million (3.2%)** from September 30, 2023, to December 31, 2023, primarily due to increases in utility plant expenditures, accounts receivable, and unbilled revenue[23](index=23&type=chunk)[193](index=193&type=chunk) - Common stock equity increased by **$75.466 million (3.8%)** from September 30, 2023, to December 31, 2023[25](index=25&type=chunk) - Current liabilities increased by **$155.429 million (19.3%)** from September 30, 2023, to December 31, 2023[25](index=25&type=chunk) [CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY (Unaudited)](index=12&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMMON%20STOCK%20EQUITY%20(Unaudited)) This statement details changes in common stock equity, including net income, other comprehensive income, and stock transactions, for the three months ended December 31, 2023 Condensed Consolidated Statements of Common Stock Equity (Unaudited) - Three Months Ended December 31 | (Thousands) | Number of Shares | Common Stock | Premium on Common Stock | Accumulated Other Comprehensive (Loss) Income | Treasury Stock and Other | Retained Earnings | Total | | :-------------------------------- | :--------------- | :----------- | :---------------------- | :-------------------------------------------- | :----------------------- | :---------------- | :---------- | | **Balance as of September 30, 2023** | 97,584 | $243,458 | $558,654 | $(9,959) | $20,748 | $1,177,834 | $1,990,735 | | Net income | — | — | — | — | — | 89,411 | 89,411 | | Other comprehensive income | — | — | — | 395 | — | — | 395 | | Common stock issued: | | | | | | | | | Incentive compensation plan | 116 | 290 | 3,451 | — | — | — | 3,741 | | Dividend reinvestment plan | 94 | 236 | 3,552 | — | — | — | 3,788 | | Waiver discount | 410 | 1,025 | 16,894 | — | — | — | 17,919 | | Cash dividend declared ($.42 per share) | — | — | — | — | — | (41,176) | (41,176) | | Treasury stock and other | (2) | — | — | — | 1,388 | — | 1,388 | | **Balance as of December 31, 2023** | 98,202 | $245,009 | $582,551 | $(9,564) | $22,136 | $1,226,069 | $2,066,201 | - Total common stock equity increased by **$75.466 million** from September 30, 2023, to December 31, 2023, driven by net income and common stock issuances, partially offset by cash dividends[27](index=27&type=chunk) - Cash dividends declared were **$41.176 million ($.42 per share)** for the three months ended December 31, 2023[27](index=27&type=chunk) [NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=13&type=section&id=NOTES%20TO%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides detailed explanations and supplementary information for the unaudited condensed consolidated financial statements [Note 1. Nature of the Business](index=13&type=section&id=Note%201.%20Nature%20of%20the%20Business) This note describes the company's primary operating segments and their respective business activities - The Company operates through five main segments: Natural Gas Distribution (NJNG), Clean Energy Ventures (CEV), Energy Services (ES), Storage and Transportation (S&T), and Home Services and Other (HSO)[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) - NJNG provides natural gas utility service to approximately **579,600 customers** in New Jersey and is subject to BPU regulation[30](index=30&type=chunk) - CEV invests in, owns, and operates clean energy projects, including commercial and residential solar installations across multiple states[31](index=31&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=13&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the significant accounting principles and policies applied in the preparation of the financial statements - The financial statements are prepared in accordance with GAAP and SEC rules, reflecting all necessary adjustments for fair presentation, though interim results are not indicative of the full fiscal year due to seasonality[35](index=35&type=chunk)[36](index=36&type=chunk) - The Company makes estimates for various financial items, including derivative instruments, debt, equity method investments, and environmental contingencies, which are evaluated periodically[37](index=37&type=chunk)[38](index=38&type=chunk) - Recently adopted accounting updates for Business Combinations (ASU 2021-08), Derivatives and Hedging (ASU 2022-01), and Financial Instruments-Credit Losses (ASU 2022-02) had no material impact on the financial statements for the period ended December 31, 2023[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) - New accounting standards for Fair Value Measurement (ASU 2022-03), Leases (ASU 2023-01), Business Combinations (ASU 2023-05), Segment Reporting (ASU 2023-07), and Income Taxes (ASU 2023-09) are effective in future periods, with the Company currently evaluating their potential impacts[66](index=66&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk) [Note 3. Revenue](index=18&type=section&id=Note%203.%20Revenue) This note details the company's revenue recognition policies and disaggregated revenue by operating segment - Revenue is recognized when performance obligations are satisfied, with the Company using the invoice practical expedient and excluding sales taxes from transaction prices[71](index=71&type=chunk) - NJNG recognizes natural gas utility sales as gas is delivered, CEV recognizes revenue from commercial and residential solar electricity and renewable energy certificates (TRECs, SREC IIs) upon generation, ES recognizes revenue upon physical delivery of natural gas and changes in fair value of derivatives, and S&T recognizes revenue from firm storage and transportation contracts over time or as services are performed[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) Disaggregated Revenues from Contracts with Customers by Segment (Thousands) | (Thousands) | NJNG | CEV | ES | S&T | HSO | Total | | :-------------------------- | :-------- | :------ | :-------- | :------ | :------ | :-------- | | **2023** | | | | | | | | Revenues from contracts with customers | $257,538 | $9,364 | $16,268 | $23,187 | $14,834 | $321,191 | | Revenues out of scope | 35,555 | 25,931 | 84,533 | — | — | 146,019 | | **Total operating revenues** | $293,093 | $35,295 | $100,801 | $23,187 | $14,834 | $467,210 | | **2022** | | | | | | | | Revenues from contracts with customers | $287,830 | $8,906 | $27,848 | $25,714 | $14,253 | $364,551 | | Revenues out of scope | 69,579 | 3,886 | 285,551 | — | — | 359,016 | | **Total operating revenues** | $357,409 | $12,792 | $313,399 | $25,714 | $14,253 | $723,567 | - Total operating revenues decreased by **$256.357 million (35.4%)** year-over-year, with significant declines in ES and NJNG, while CEV saw a substantial increase[77](index=77&type=chunk) [Note 4. Regulation](index=22&type=section&id=Note%204.%20Regulation) This note describes the regulatory environment affecting NJNG and details its regulatory assets and liabilities - NJNG is subject to cost-based regulation by the BPU, allowing recovery of authorized operating expenses and a reasonable return on utility capital investments, with costs recovered through base rates, BGSS, and other tariff riders[83](index=83&type=chunk)[84](index=84&type=chunk) NJNG Regulatory Assets and Liabilities (Thousands) | (Thousands) | December 31, 2023 | September 30, 2023 | | :------------------------------ | :---------------- | :----------------- | | **Regulatory assets-current** | | | | New Jersey Clean Energy Program | $14,382 | $15,804 | | Conservation Incentive Program | 47,819 | 50,356 | | Derivatives at fair value, net | 13,215 | 6,017 | | Other current regulatory assets | 1,312 | 1,410 | | Total current regulatory assets | $76,728 | $73,587 | | **Regulatory assets-noncurrent** | | | | Environmental remediation costs | $232,380 | $235,688 | | Deferred income taxes | 42,028 | 41,667 | | SAVEGREEN | 83,486 | 83,589 | | Postemployment and other benefit costs | 54,904 | 55,274 | | Cost of removal | 115,202 | 112,362 | | Other noncurrent regulatory assets | 48,710 | 51,019 | | Total noncurrent regulatory assets | $576,710 | $579,599 | | **Regulatory liability-current** | | | | Overrecovered natural gas costs | $28,579 | $30,637 | | Total current regulatory liabilities | $28,579 | $30,637 | | **Regulatory liabilities-noncurrent** | | | | Tax Act impact | $179,093 | $180,347 | | Other noncurrent regulatory liabilities | 545 | 111 | | Total noncurrent regulatory liabilities | $179,638 | $180,458 | - NJNG filed a base rate case on January 31, 2024, requesting a **$222.6 million** natural gas revenue increase and a change in the overall rate of return on rate base to **7.57%**[91](index=91&type=chunk) - NJNG also filed petitions to extend its current SAVEGREEN program through December 31, 2024, with an additional **$76.9 million**, and for approval of its 2024 SAVEGREEN program totaling **$482.4 million** for 2.5 years starting January 1, 2025[91](index=91&type=chunk) [Note 5. Derivative Instruments](index=23&type=section&id=Note%205.%20Derivative%20Instruments) This note explains the company's use of derivative instruments for hedging and their fair value measurements - The Company uses various derivative instruments (futures, physical forward contracts, financial options, swaps) to economically hedge commodity price risk related to natural gas, SRECs, and electricity, and may use foreign currency derivatives for Canadian dollar transactions[88](index=88&type=chunk)[90](index=90&type=chunk) - ES does not designate its financial commodity and physical forward commodity derivatives as accounting hedges, recording changes in fair value as unrealized gains/losses in operating revenues or natural gas purchases[89](index=89&type=chunk) - NJNG's derivative fair value changes are deferred as regulatory assets or liabilities, with no impact on earnings, as these amounts are recoverable from or payable to utility customers through BGSS rates[94](index=94&type=chunk)[105](index=105&type=chunk) Fair Value of Derivatives (Thousands) | (Thousands) | December 31, 2023 | September 30, 2023 | | :---------------------------------------- | :---------------- | :----------------- | | **Derivatives at Fair Value - Assets** | | | | NJNG: Physical commodity contracts | $109 | $43 | | NJNG: Financial commodity contracts | 8,872 | 6,110 | | ES: Physical commodity contracts | 9,784 | 7,011 | | ES: Financial commodity contracts | 20,184 | 19,155 | | **Total fair value of derivatives - Assets** | $38,949 | $32,319 | | **Derivatives at Fair Value - Liabilities** | | | | NJNG: Physical commodity contracts | $749 | $488 | | NJNG: Financial commodity contracts | 421 | 20 | | ES: Physical commodity contracts | 16,015 | 20,627 | | ES: Financial commodity contracts | 3,475 | 2,977 | | **Total fair value of derivatives - Liabilities** | $20,660 | $24,112 | [Note 6. Fair Value](index=28&type=section&id=Note%206.%20Fair%20Value) This note provides information on the fair value measurements of financial instruments and other assets and liabilities - The fair value of short-term financial instruments approximates their carrying amounts due to short maturities. Long-term debt fair value is determined using a discounted cash flow method with observable market inputs (Level 2)[117](index=117&type=chunk)[121](index=121&type=chunk) - Sale leaseback transactions for commercial solar assets and natural gas meters are recorded as financing obligations, with carrying values of **$296.3 million** and **$38.2 million**, respectively, as of December 31, 2023[120](index=120&type=chunk) Assets and Liabilities Measured at Fair Value on a Recurring Basis (Thousands) | (Thousands) | Level 1 | Level 2 | Level 3 | Total | | :------------------------------ | :-------- | :-------- | :------ | :-------- | | **As of December 31, 2023** | | | | | | **Assets:** | | | | | | Physical commodity contracts | $— | $9,893 | $— | $9,893 | | Financial commodity contracts | 29,056 | — | — | 29,056 | | Money market funds | 86 | — | — | 86 | | Other | 3,111 | — | — | 3,111 | | **Total assets at fair value** | $32,253 | $9,893 | $— | $42,146 | | **Liabilities:** | | | | | | Physical commodity contracts | $— | $16,764 | $— | $16,764 | | Financial commodity contracts | 3,896 | — | — | 3,896 | | **Total liabilities at fair value** | $3,896 | $16,764 | $— | $20,660 | [Note 7. Investments in Equity Investees](index=30&type=section&id=Note%207.%20Investments%20in%20Equity%20Investees) This note details the company's equity method investments, including its interest in Steckman Ridge - The Company holds a **50% equity method investment** in Steckman Ridge, a natural gas storage facility, with an investment value of **$103.3 million** as of December 31, 2023[128](index=128&type=chunk) - An Amended and Restated Loan Agreement with Steckman Ridge extended the existing loan for five years, with a variable interest rate tied to SOFR, due October 1, 2027[128](index=128&type=chunk) [Note 8. Earnings Per Share](index=30&type=section&id=Note%208.%20Earnings%20Per%20Share) This note presents the calculation of basic and diluted earnings per common share Earnings Per Share Calculation (Thousands, except per share amounts) | (Thousands, except per share amounts) | 2023 | 2022 | | :------------------------------------ | :-------- | :-------- | | Net income, as reported | $89,411 | $115,921 | | Weighted average shares outstanding-basic | 97,869 | 96,485 | | Basic earnings per common share | $0.91 | $1.20 | | Weighted average shares outstanding-diluted | 98,563 | 97,083 | | Diluted earnings per common share | $0.91 | $1.19 | - Basic and diluted EPS decreased from **$1.20** and **$1.19** in Q1 2022 to **$0.91** in Q1 2023, respectively[130](index=130&type=chunk) [Note 9. Debt](index=31&type=section&id=Note%209.%20Debt) This note provides information on the company's short-term and long-term debt, including credit facilities and financing obligations - NJR and NJNG finance working capital and capital expenditures through short-term debt, commercial paper programs, and committed unsecured credit facilities[132](index=132&type=chunk) Credit Facilities and Short-term Debt (Thousands) | (Thousands) | Borrowing Capacity | Loans Outstanding | Weighted Average Interest Rate | Remaining Borrowing Capacity | Expiration Dates | | :------------------------------ | :----------------- | :---------------- | :----------------------------- | :--------------------------- | :--------------- | | **NJR bank revolving credit facilities** | | | | | | | December 31, 2023 | $650,000 | $165,150 | 6.56% | $476,002 | September 2027 | | September 30, 2023 | $650,000 | $217,300 | 6.53% | $426,967 | September 2027 | | **NJNG bank revolving credit facilities** | | | | | | | December 31, 2023 | $250,000 | $103,500 | 5.48% | $145,769 | September 2027 | | September 30, 2023 | $250,000 | $34,800 | 5.48% | $214,469 | September 2027 | - NJNG entered into a Note Purchase Agreement for **$100 million** in senior notes, with **$50 million** due September 28, 2033 (**5.56%**) and **$50 million** due October 30, 2053 (**5.85%**)[135](index=135&type=chunk) - CEV received **$24.4 million** and **$33.2 million** from sale leasebacks of commercial solar assets in Q1 2023 and Q1 2022, respectively, treated as financing obligations[137](index=137&type=chunk) [Note 10. Employee Benefit Plans](index=32&type=section&id=Note%2010.%20Employee%20Benefit%20Plans) This note details the net periodic benefit costs for pension and other postemployment benefit plans and recent plan changes Net Periodic Benefit Cost (Thousands) | (Thousands) | Pension (2023) | Pension (2022) | OPEB (2023) | OPEB (2022) | | :---------------------- | :------------- | :------------- | :---------- | :---------- | | Service cost | $1,244 | $1,350 | $642 | $618 | | Interest cost | 4,060 | 3,794 | 2,902 | 2,286 | | Expected return on plan assets | (5,087) | (4,993) | (1,858) | (1,680) | | Recognized actuarial loss | 29 | 75 | 496 | — | | Prior service cost amortization | 16 | 25 | — | — | | **Net periodic benefit cost** | $262 | $251 | $2,182 | $1,224 | - The Company announced changes to its postretirement medical benefits plan, effective January 1, 2025, replacing existing coverage for Medicare-eligible employees with an employer-funded Health Reimbursement Arrangement. This is expected to reduce the accumulated projected benefit obligation by approximately **$82 million** and net periodic postretirement benefit costs by **$11 million to $13 million** for the remainder of fiscal 2024[141](index=141&type=chunk)[142](index=142&type=chunk) [Note 11. Income Taxes](index=32&type=section&id=Note%2011.%20Income%20Taxes) This note provides information on the company's income tax provision, effective tax rates, and tax credit carryforwards - The estimated annual effective tax rates were **21.5%** for Q1 2023 and **22.5%** for Q1 2022. Actual reported effective tax rates were **20.4%** and **22.2%** respectively, after accounting for discrete tax items[147](index=147&type=chunk)[148](index=148&type=chunk) - The Company has tax credit carryforwards of approximately **$185.7 million** (20-year life, expiring after fiscal 2036) and state income tax net operating losses of approximately **$634.2 million** (7-20 year carry-forward periods, majority expiring after 2035)[149](index=149&type=chunk)[150](index=150&type=chunk) [Note 12. Leases](index=33&type=section&id=Note%2012.%20Leases) This note outlines the company's accounting for leases, including right-of-use assets and lease liabilities - The Company accounts for leases in accordance with ASC 842, recognizing right-of-use assets and lease liabilities based on the present value of lease payments, primarily for commercial solar land, storage, capacity, equipment, and real property[151](index=151&type=chunk)[152](index=152&type=chunk) Lease Costs (Thousands) | (Thousands) | 2023 | 2022 | | :------------------------------ | :------ | :------ | | Operating lease cost | $2,540 | $2,417 | | Finance lease cost: | | | | Amortization of right-of-use assets | 528 | 485 | | Interest on lease liabilities | 252 | 235 | | Total finance lease cost | 780 | 720 | | Variable lease cost | 200 | 223 | | **Total lease cost** | $3,520 | $3,360 | Right-of-Use Assets and Lease Liabilities (Thousands) | (Thousands) | December 31, 2023 | September 30, 2023 | | :------------------------------ | :---------------- | :----------------- | | **Assets** | | | | Operating lease assets | $175,864 | $175,740 | | Finance lease assets | 27,720 | 28,248 | | **Total lease assets** | $203,584 | $203,988 | | **Liabilities** | | | | Operating lease liabilities | $153,647 | $152,795 | | Finance lease liabilities | 29,397 | 31,352 | | **Total lease liabilities** | $183,044 | $184,147 | [Note 13. Commitments and Contingent Liabilities](index=35&type=section&id=Note%2013.%20Commitments%20and%20Contingent%20Liabilities) This note details the company's contractual commitments for natural gas and contingent liabilities, including environmental remediation - NJNG has long-term contracts for natural gas supply, transportation, and storage, with annual fixed charges of approximately **$208.1 million** for the remainder of the fiscal year, recoverable through BGSS[161](index=161&type=chunk) Commitments for Natural Gas Purchases and Future Demand Fees (Thousands) | (Thousands) | 2024 | 2025 | 2026 | 2027 | 2028 | Thereafter | | :---------------------- | :---------- | :---------- | :---------- | :---------- | :---------- | :------------ | | **ES:** | | | | | | | | Natural gas purchases | $41,616 | $1,826 | $— | $— | $— | $— | | Storage demand fees | 13,788 | 15,297 | 11,467 | 5,478 | 3,505 | 6,780 | | Pipeline demand fees | 35,249 | 46,316 | 31,762 | 24,383 | 13,894 | 14,648 | | Sub-total ES | $90,653 | $63,439 | $43,229 | $29,861 | $17,399 | $21,428 | | **NJNG:** | | | | | | | | Natural gas purchases | $20,156 | $— | $— | $— | $— | $— | | Storage demand fees | 31,211 | 30,645 | 14,971 | 10,163 | 5,084 | — | | Pipeline demand fees | 116,451 | 193,428 | 138,266 | 128,643 | 113,990 | 966,947 | | Sub-total NJNG | $167,818 | $224,073 | $153,237 | $138,806 | $119,074 | $966,947 | | **Total** | $258,471 | $287,512 | $196,466 | $168,667 | $136,473 | $988,375 | - NJNG is responsible for the remediation of former Manufactured Gas Plant (MGP) sites, with an estimated liability and corresponding regulatory asset of **$165.3 million** as of December 31, 2023, a decrease of **$4.1 million** from the prior fiscal period[166](index=166&type=chunk)[236](index=236&type=chunk) - NJNG recovers its MGP remediation expenditures through a BPU-approved Remediation Adjustment Clause (RAC) over rolling seven-year periods[167](index=167&type=chunk) [Note 14. Reporting Segment and Other Operations Data](index=38&type=section&id=Note%2014.%20Reporting%20Segment%20and%20Other%20Operations%20Data) This note provides disaggregated financial information by the company's operating segments - The Company manages its businesses through five reporting segments: Natural Gas Distribution (NJNG), Clean Energy Ventures (CEV), Energy Services (ES), Storage and Transportation (S&T), and Home Services and Other (HSO)[171](index=171&type=chunk) Net Financial Earnings (Loss) by Segment (Thousands) | (Thousands) | NJNG | CEV | ES | S&T | HSO | Elims | Total | | :-------------------------- | :-------- | :------ | :------ | :------ | :------ | :------ | :-------- | | **2023** | $51,444 | $10,522 | $7,831 | $3,640 | $(600) | $(393) | $72,444 | | **2022** | $54,664 | $(3,582)| $52,533 | $6,243 | $(29) | $455 | $110,284 | - Consolidated Net Financial Earnings (NFE) decreased by **$37.840 million (34.3%)** from $110.284 million in Q1 2022 to $72.444 million in Q1 2023, primarily due to a **$53.6 million** decrease in Financial Margin at ES, partially offset by a **$14.1 million** increase in earnings at CEV[172](index=172&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk) Assets by Reporting Segment (Thousands) | (Thousands) | NJNG | CEV | ES | S&T | HSO | Intercompany Assets | Total | | :-------------------------- | :---------- | :---------- | :-------- | :---------- | :-------- | :------------------ | :------------ | | **December 31, 2023** | $4,590,049 | $1,131,841 | $151,932 | $1,009,549 | $170,421 | $(304,744) | $6,749,048 | | **September 30, 2023** | $4,414,829 | $1,128,577 | $123,775 | $1,011,959 | $171,275 | $(312,919) | $6,537,496 | [Note 15. Related Party Transactions](index=39&type=section&id=Note%2015.%20Related%20Party%20Transactions) This note describes transactions with related parties, including agreements with Steckman Ridge, Adelphia, and Leaf River - NJNG has a 5-year firm storage capacity agreement with Steckman Ridge, incurring annual demand fees of approximately **$9.3 million**, recoverable through BGSS[177](index=177&type=chunk) Demand Fees Associated with Steckman Ridge (Thousands) | (Thousands) | 2023 | 2022 | | :---------- | :------ | :------ | | NJNG | $1,655 | $1,655 | | ES | 224 | 172 | | **Total** | $1,879 | $1,827 | - NJNG and ES engage in Asset Management Agreements (AMAs) for pipeline capacity, and NJNG has transportation agreements with Adelphia. ES also has a firm storage capacity agreement with Leaf River[180](index=180&type=chunk)[181](index=181&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and results of operations for the three months ended December 31, 2023, compared to the same period in 2022, covering consolidated performance, segment-specific results, and liquidity and capital resources [Management's Overview](index=41&type=section&id=Management's%20Overview) This overview introduces the company's diversified energy services segments and summarizes consolidated financial performance - NJR is a diversified energy services holding company with primary reporting segments: Natural Gas Distribution (NJNG), Clean Energy Ventures (CEV), Energy Services (ES), Storage and Transportation (S&T), and Home Services and Other (HSO)[188](index=188&type=chunk)[189](index=189&type=chunk) Net Income (Loss) by Reporting Segment (Thousands) | (Thousands) | 2023 | % | 2022 | % | | :---------- | :-------- | :-- | :-------- | :-- | | NJNG | $51,444 | 57% | $54,664 | 47% | | CEV | 10,522 | 12% | (3,582) | (3)%| | ES | 23,933 | 27% | 64,561 | 56% | | S&T | 3,640 | 4% | 6,243 | 5% | | HSO | (600) | (1)%| (29) | — | | Eliminations | 472 | 1% | (5,936) | (5)%| | **Total** | $89,411 | 100%| $115,921 | 100%| - Consolidated net income decreased by **$26.5 million**, primarily due to a **$40.6 million** decrease in earnings at ES (higher volatility in natural gas prices in prior year) partially offset by a **$14.1 million** increase in earnings at CEV (increased SREC sales)[192](index=192&type=chunk)[193](index=193&type=chunk) Net Financial Earnings (NFE) by Reporting Segment (Thousands) | (Thousands) | 2023 | % | 2022 | % | | :---------- | :-------- | :-- | :-------- | :-- | | NJNG | $51,444 | 71% | $54,664 | 50% | | CEV | 10,522 | 15% | (3,582) | (3)%| | ES | 7,831 | 11% | 52,533 | 47% | | S&T | 3,640 | 5% | 6,243 | 6% | | HSO | (600) | (1)%| (29) | — | | Eliminations | (393) | (1)%| 455 | — | | **Total** | $72,444 | 100%| $110,284 | 100%| - Consolidated NFE decreased by **$37.8 million**, primarily due to a **$53.6 million** decrease in Financial Margin at ES (higher volatility in natural gas prices in prior year) partially offset by a **$14.1 million** increase in earnings at CEV (increased SREC sales)[199](index=199&type=chunk) [Natural Gas Distribution](index=45&type=section&id=Natural%20Gas%20Distribution) This section discusses the operating results and regulatory environment of the Natural Gas Distribution segment (NJNG) - NJNG provides regulated natural gas service to approximately **579,600 customers** in New Jersey, with operations managed to ensure safe service, customer growth, diversified Utility Gross Margin, and clean energy promotion[201](index=201&type=chunk)[204](index=204&type=chunk) - NJNG filed a base rate case on January 31, 2024, requesting a **$222.6 million** natural gas revenue increase and a change in the overall rate of return on rate base to **7.57%**[205](index=205&type=chunk) - NJNG added **2,129 new customers** in Q1 2023, expecting an annual growth rate of approximately **1.9%**, contributing an estimated **$8.5 million** annually to Utility Gross Margin[212](index=212&type=chunk)[213](index=213&type=chunk) NJNG Operating Results (Thousands) | (Thousands) | 2023 | 2022 | | :-------------------------- | :-------- | :-------- | | Operating revenues | $293,430 | $357,746 | | Natural gas purchases | 118,444 | 184,771 | | Operation and maintenance | 54,705 | 49,721 | | Regulatory rider expense | 19,189 | 18,251 | | Depreciation and amortization | 26,917 | 24,890 | | Total operating expenses | 219,255 | 277,633 | | Operating income | 74,175 | 80,113 | | Net income | $51,444 | $54,664 | - NJNG's net income decreased by **$3.2 million**, primarily due to a **$5.0 million** increase in O&M and a **$2.0 million** increase in depreciation expense, partially offset by a **$1.1 million** increase in Utility Gross Margin and a **$3.7 million** decrease in income tax expense[250](index=250&type=chunk)[251](index=251&type=chunk) NJNG Utility Gross Margin (Thousands) | (Thousands) | 2023 | 2022 | | :-------------------------- | :-------- | :-------- | | Utility firm gross margin/throughput | $149,632 | $145,277 | | BGSS incentive programs | 5,381 | 8,686 | | Interruptible/off-tariff agreements | 784 | 761 | | **Total Utility Gross Margin/Throughput** | $155,797 | $154,724 | - Utility Gross Margin increased by approximately **$1.1 million**, driven by increased residential customers, but BGSS incentive programs decreased by **$3.3 million** due to lower natural gas price volatility and market opportunities[248](index=248&type=chunk)[249](index=249&type=chunk) [Clean Energy Ventures](index=53&type=section&id=Clean%20Energy%20Ventures) This section reviews the performance of the Clean Energy Ventures segment, focusing on solar investments and REC activity - CEV invests in renewable energy markets, installing solar net-metered systems for residential and commercial customers, and large commercial grid-connected projects, with primary value drivers being tax incentives and Renewable Energy Certificates (RECs)[253](index=253&type=chunk)[255](index=255&type=chunk) - The federal Investment Tax Credit (ITC) was restored to **30%** through 2032, with additional opportunities to increase the credit for certain projects[257](index=257&type=chunk) - CEV received **$24.4 million** and **$33.2 million** from sale leasebacks of commercial solar assets in Q1 2023 and Q1 2022, respectively, which are treated as financing obligations[258](index=258&type=chunk) REC Activity (Thousands) | | Beginning Inventory Balance | Generated | Delivered | Ending Inventory Balance | Average Sale Price | | :---------------- | :-------------------------- | :-------- | :-------- | :----------------------- | :----------------- | | **December 31, 2023** | | | | | | | SRECs | 144,138 | 93,570 | (122,439) | 115,269 | $212 | | TRECs | 10,120 | 16,705 | (20,608) | 6,217 | $142 | | SREC IIs | 6,013 | 2,773 | (1,527) | 7,259 | $89 | | **December 31, 2022** | | | | | | | SRECs | 116,005 | 98,462 | (16,812) | 197,655 | $231 | | TRECs | 10,759 | 8,345 | (12,933) | 6,171 | $140 | | SREC IIs | 247 | 1,784 | (919) | 1,112 | $91 | CEV Operating Results (Thousands) | (Thousands) | 2023 | 2022 | | :-------------------------- | :-------- | :-------- | | Operating revenues | $35,295 | $12,792 | | Operation and maintenance | 10,050 | 7,537 | | Depreciation and amortization | 6,922 | 5,576 | | Total operating expenses | 16,972 | 13,113 | | Operating income (loss) | 18,323 | (321) | | Net income (loss) | $10,522 | $(3,582) | - Net income increased by **$14.104 million**, primarily due to a **$22.5 million** increase in operating revenues from higher SREC sales, partially offset by a **$2.5 million** increase in O&M and a **$5.0 million** increase in income tax expense[269](index=269&type=chunk) [Energy Services](index=55&type=section&id=Energy%20Services) This section analyzes the financial results of the Energy Services segment, including natural gas marketing and hedging activities - ES markets and sells natural gas to wholesale and retail customers, managing transportation and storage assets across North America to capture price differentials and provide asset management services[270](index=270&type=chunk)[271](index=271&type=chunk) - ES uses financial derivative contracts (futures, options, swaps) to economically hedge natural gas inventory and manage price volatility, with changes in fair value included in earnings[272](index=272&type=chunk)[274](index=274&type=chunk) - ES recognized operating revenue of **$9.5 million** and **$20.0 million** from Asset Management Agreements (AMAs) in Q1 2023 and Q1 2022, respectively, with **$116.8 million** in deferred revenue as of December 31, 2023[275](index=275&type=chunk)[344](index=344&type=chunk) ES Operating Results (Thousands) | (Thousands) | 2023 | 2022 | | :-------------------------- | :-------- | :-------- | | Operating revenues | $99,668 | $321,782 | | Natural gas purchases | 60,166 | 233,287 | | Operation and maintenance | 5,108 | 1,123 | | Depreciation and amortization | 57 | 57 | | Total operating expenses | 65,331 | 234,467 | | Operating income | 34,337 | 87,315 | | Net income | $23,933 | $64,561 | - Net income decreased by **$40.628 million**, primarily due to a **$222.1 million** decrease in operating revenues (driven by a **57.1%** decrease in natural gas prices and prior year volatility from Winter Storm Elliott) and a **$4.0 million** increase in O&M, partially offset by a **$173.1 million** decrease in natural gas purchases and a **$12.6 million** decrease in income tax expense[280](index=280&type=chunk)[282](index=282&type=chunk)[285](index=285&type=chunk) ES Financial Margin (Thousands) | (Thousands) | 2023 | 2022 | | :-------------------------- | :-------- | :-------- | | Operating revenues | $99,668 | $321,782 | | Less: Natural gas purchases | 60,166 | 233,287 | | O&M (excluding SG&A) | 4,689 | 3,455 | | Depreciation and amortization | 57 | 57 | | Gross margin | 34,756 | 84,983 | | Add: O&M (excluding SG&A) | 4,689 | 3,455 | | Depreciation and amortization | 57 | 57 | | Unrealized gain on derivative instruments and related transactions | (4,266) | (39,886) | | Effects of economic hedging related to natural gas inventory | (16,228) | 23,972 | | **Financial Margin** | $19,008 | $72,581 | - Financial Margin decreased by **$53.573 million**, primarily due to higher natural gas price volatility in December 2022 from Winter Storm Elliott[289](index=289&type=chunk) [Storage and Transportation](index=59&type=section&id=Storage%20and%20Transportation) This section examines the operating results of the Storage and Transportation segment, focusing on natural gas infrastructure assets - S&T invests in natural gas assets like transportation and storage facilities (Leaf River, Adelphia, and a **50% interest** in Steckman Ridge), operating under tariff structures with cost- or market-based rates[294](index=294&type=chunk)[295](index=295&type=chunk) S&T Operating Results (Thousands) | (Thousands) | 2023 | 2022 | | :-------------------------- | :-------- | :-------- | | Operating revenues | $23,862 | $26,838 | | Natural gas purchases | 276 | 805 | | Operation and maintenance | 10,100 | 7,474 | | Depreciation and amortization | 6,162 | 5,942 | | Total operating expenses | 16,538 | 14,221 | | Operating income | 7,324 | 12,617 | | Net income | $3,640 | $6,243 | - Net income decreased by **$2.603 million**, primarily due to a decrease in hub services revenue at Leaf River[297](index=297&type=chunk) [Home Services and Other](index=59&type=section&id=Home%20Services%20and%20Other) This section covers the financial performance of the Home Services and Other segment, including appliance services and organizational expenses - HSO's financial results primarily consist of NJRHS, which provides service, sales, and installation of appliances, and also includes organizational expenses and home warranty contract income[298](index=298&type=chunk) HSO Operating Results (Thousands) | (Thousands) | 2023 | 2022 | | :-------------------------- | :-------- | :-------- | | Operating revenues | $14,834 | $14,266 | | (Loss) income before income taxes | (652) | 188 | | Income tax (benefit) provision | (52) | 217 | | Net loss | $(600) | $(29) | - Net loss remained relatively consistent, increasing slightly from **$(29) thousand** in Q1 2022 to **$(600) thousand** in Q1 2023[300](index=300&type=chunk) [Liquidity and Capital Resources](index=60&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's financial flexibility, capital structure, debt, equity, and cash flow management - The Company aims to maintain an efficient consolidated capital structure and adequate financial flexibility, with common stock equity at **39%**, long-term debt at **52%**, and short-term debt at **9%** as of December 31, 2023[301](index=301&type=chunk) - NJR raised approximately **$3.8 million** through its Dividend Reinvestment Plan (DRP) and **$17.9 million** through the DRP's waiver discount feature in Q1 2023[302](index=302&type=chunk) - NJR had a **$650 million** revolving credit facility with **$476.0 million** available as of December 31, 2023. NJNG had a **$250 million** credit facility with **$145.8 million** available[309](index=309&type=chunk)[311](index=311&type=chunk) - NJR and NJNG were in compliance with all debt covenants as of December 31, 2023[306](index=306&type=chunk) - NJNG's credit ratings from Moody's (**A1 Senior Secured, P-2 Commercial Paper**) and Fitch (**A Corporate, F-2 Commercial Paper, A+ Senior Secured**) are investment-grade with a stable outlook[350](index=350&type=chunk) - Cash flows from operating activities increased by **$135.3 million**, moving from a net outflow of **$(88.9) million** in Q1 2022 to a net inflow of **$46.4 million** in Q1 2023, primarily due to decreased working capital requirements from lower natural gas prices[345](index=345&type=chunk) - Cash flows from financing activities decreased by **$166.6 million**, mainly due to a **$125.0 million** decrease in long-term debt proceeds, a **$24.0 million** decrease in net short-term debt proceeds, and an **$8.8 million** decrease in solar sale leaseback proceeds[349](index=349&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=67&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the Company's exposure to market risks, primarily commodity price risk, and its strategies for managing these risks through derivative instruments, including quantitative analysis of derivative fair values, wholesale credit risk, and the effects of interest rate and foreign currency fluctuations - The Company is exposed to commodity price risk from natural gas fluctuations, managed through forwards, futures, options, and swap agreements, with well-defined risk management policies[353](index=353&type=chunk)[354](index=354&type=chunk) Changes in Fair Market Value of Financial Derivatives Related to Natural Gas Purchases and Sales (Thousands) | (Thousands) | Balance September 30, 2023 | Increase in Fair Market Value | Less Amounts Settled | Balance December 31, 2023 | | :---------- | :------------------------- | :---------------------------- | :------------------- | :------------------------ | | NJNG | $6,090 | 8,246 | 5,885 | $8,451 | | ES | 16,178 | 20,871 | 20,340 | 16,709 | | **Total** | $22,268 | 29,117 | 26,225 | $25,160 | - A **10%** movement in the Henry Hub natural gas futures contract price would result in an estimated change in derivative fair value of approximately **$2.7 million**[357](index=357&type=chunk)[358](index=358&type=chunk) ES, CEV, and S&T Counterparty Credit Exposure (Thousands) | (Thousands) | Gross Credit Exposure | Net Credit Exposure | | :------------------------------ | :-------------------- | :------------------ | | Investment grade | $114,215 | $108,626 | | Noninvestment grade | 15,815 | 1,425 | | Internally rated investment grade | 23,064 | 21,935 | | Internally rated noninvestment grade | 24,826 | 15,966 | | **Total** | $177,920 | $147,952 | - The Company does not believe an immediate **10%** increase or decrease in interest rates or foreign currency rates would materially affect its operating results or cash flows[362](index=362&type=chunk) [ITEM 4. Controls and Procedures](index=70&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the principal executive and financial officers, evaluated the effectiveness of the Company's disclosure controls and procedures as of December 31, 2023, concluding they are effective, with no material changes in internal control over financial reporting during the quarter - The Company's disclosure controls and procedures were deemed effective as of December 31, 2023, ensuring timely and accurate reporting of information[367](index=367&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended December 31, 2023[368](index=368&type=chunk) [PART II. OTHER INFORMATION](index=71&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part includes additional information such as legal proceedings, risk factors, equity security sales, other disclosures, and exhibits [ITEM 1. Legal Proceedings](index=71&type=section&id=ITEM%201.%20Legal%20Proceedings) This section refers to the legal proceedings information detailed in the Annual Report on Form 10-K and Note 13 of the Condensed Consolidated Financial Statements, confirming no new reportable legal proceedings or material developments occurred during the quarter ended December 31, 2023 - No new reportable legal proceedings or material developments occurred during the quarter ended December 31, 2023[371](index=371&type=chunk) [ITEM 1A. Risk Factors](index=71&type=section&id=ITEM%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the Company's 2023 Annual Report on Form 10-K, which could materially affect its financial condition and results of operations - No material changes in risk factors from those previously disclosed in the 2023 Annual Report on Form 10-K[372](index=372&type=chunk) [ITEM 2. Unregistered Sale of Equity Securities and Use of Proceeds](index=71&type=section&id=ITEM%202.%20Unregistered%20Sale%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports on the Company's share repurchase activity and equity issuances, confirming no shares were repurchased during the quarter ended December 31, 2023, with approximately 1.7 million shares remaining available for repurchase Share Repurchase Activity for the Quarter Ended December 31, 2023 | Period | Total Number of Shares (or Units) Purchased | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares (or Units) That May Yet Be Purchased Under the Plans or Programs | | :------------------ | :------------------------------------------ | :------------------------------------- | :------------------------------------------------------------------------------------------ | :-------------------------------------------------------------------------------------------------------------------- | | 10/01/23 - 10/31/23 | — | — | — | 1,685,053 | | 11/01/23 - 11/30/23 | — | — | — | 1,685,053 | | 12/01/23 - 12/31/23 | — | — | — | 1,685,053 | | **Total** | — | — | — | 1,685,053 | - No shares were repurchased during the three months ended December 31, 2023, and approximately **1.7 million shares** remained available for repurchase under the program[303](index=303&type=chunk)[373](index=373&type=chunk) [ITEM 5. Other Information](index=71&type=section&id=ITEM%205.%20Other%20Information) This section confirms that no director or officer adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the quarter ended December 31, 2023 - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter[374](index=374&type=chunk) [ITEM 6. Exhibits](index=72&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications from the Chief Executive Officer and Chief Financial Officer under Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, and Interactive Data Files - The report includes certifications from the CEO and CFO under Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, along with Interactive Data Files[378](index=378&type=chunk)[379](index=379&type=chunk) [SIGNATURES](index=73&type=section&id=Signatures) This section contains the required signatures for the filing of the report

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-08359 NEW JERSEY RESOURCES CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or ...