Introduces Fiscal 2024 Guidance and Maintains its Long-term Projected Growth Rate

Today, New Jersey Resources Corporation (NYSE:NJR) reported results for the fourth quarter and year ended fiscal 2023. Highlights include:

Consolidated net income of $264.7 million for fiscal 2023, compared with net income of $274.9 million in fiscal 2022
Consolidated net financial earnings (NFE), a non-GAAP financial measure, of $261.8 million, or $2.70 per share, compared to NFE of $240.3 million, or $2.50 per share, in fiscal 2022
Increased fiscal 2024 dividend by 7.7% to $1.68 per share

Outlook for Fiscal 2024

Introduces fiscal 2024 net financial earnings per share (NFEPS) guidance range of $2.70 to $2.85
Maintains long-term projected NFEPS growth rate of 7 to 9 percent⁽¹⁾

Fourth-quarter fiscal 2023 net income totaled $37.0 million, or $0.38 per share, compared with net income of $54.5 million, or $0.57 per share, during the same period in fiscal 2022. Fiscal 2023 net income totaled $264.7 million, or $2.73 per share, compared with $274.9 million, or $2.86 per share, for the same period in fiscal 2022.

Fourth-quarter fiscal 2023 NFE totaled $29.6 million, or $0.30 per share, compared to NFE of $47.9 million, or $0.50 per share, during the same period in fiscal 2022. Fiscal 2023 NFE totaled $261.8 million, or $2.70 per share, compared with $240.3 million, or $2.50 per share, for the same period in fiscal 2022.

Management Commentary

Steve Westhoven, President and CEO, stated, "NJR reported an excellent year in fiscal 2023 supported by solid contributions from our complementary portfolio of businesses. We achieved NFEPS at the higher end of our guidance range, which was increased by $0.20 earlier this year as a result of the strong performance of our business units during Winter Storm Elliott, particularly Energy Services. Our performance this past year speaks to the strength of our diversified business model, and our ability to adapt to challenges in ways that benefit our customers and investors."

Key Performance Metrics

	Three Months Ended				Twelve Months Ended
	September 30,				September 30,
($ in Thousands)	2023		2022		2023		2022
Net income	$	37,024	$	54,522	$	264,724	$	274,922
Basic EPS	$	0.38	$	0.57	$	2.73	$	2.86
Net financial earnings	$	29,563	$	47,896	$	261,827	$	240,321
Basic net financial earnings per share	$	0.30	$	0.50	$	2.70	$	2.50
⁽¹⁾ NFEPS long-term annual growth projections are based on the midpoint of the $2.20 - $2.30 initial guidance range for fiscal 2022, provided on February 1, 2021

A reconciliation of net income to NFE for the three and twelve months ended September 30, 2023 and 2022, is provided below.

	Three Months Ended						Twelve Months Ended
	September 30,						September 30,
(Thousands)	2023			2022			2023			2022
Net income	$	37,024		$	54,522		$	264,724		$	274,922
Add:
Unrealized gain on derivative instruments and related transactions		(7,579	)		(1,846	)		(38,081	)		(59,906	)
Tax effect		1,800			439			9,050			14,248
Effects of economic hedging related to natural gas inventory		(2,186	)		(5,221	)		34,699			19,939
Tax effect		520			1,241			(8,246	)		(4,738	)
Gain on equity method investment		—			(1,500	)		(300	)		(5,521	)
Tax effect		(93	)		374			(19	)		1,377
NFE tax adjustment		77			(113	)		—			—
Net financial earnings	$	29,563		$	47,896		$	261,827		$	240,321

Weighted Average Shares Outstanding
Basic		97,568			96,235			97,028			96,100
Diluted		98,192			96,630			97,627			96,488

Basic earnings per share	$	0.38		$	0.57		$	2.73		$	2.86
Add:
Unrealized gain on derivative instruments and related transactions		(0.08	)		(0.02	)		(0.39	)		(0.62	)
Tax effect		0.02			0.01			0.09			0.15
Effects of economic hedging related to natural gas inventory		(0.02	)		(0.05	)		0.36			0.21
Tax effect		—			0.01			(0.09	)		(0.05	)
Gain on equity method investment		—			(0.02	)		—			(0.06	)
Tax effect		—			—			—			0.01
Basic net financial earnings per share	$	0.30		$	0.50		$	2.70		$	2.50

NFE is a measure of earnings based on the elimination of timing differences to effectively match the earnings effects of the economic hedges with the physical sale of natural gas, Solar Renewable Energy Certificates (SRECs) and foreign currency contracts. Consequently, to reconcile net income and NFE, current-period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item. Realized derivative gains and losses are also included in current-period net income. However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the derivatives with realized margins on physical natural gas flows. NFE also excludes certain transactions associated with equity method investments, including impairment charges, which are non-cash charges, and return of capital in excess of the carrying value of our investment. These are not indicative of the Company's performance for its ongoing operations. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE.

A table detailing NFE for the three and twelve months ended September 30, 2023 and 2022, is provided below.

Net financial (loss) earnings by business unit

	Three Months Ended						Twelve Months Ended
	September 30,						September 30,
(Thousands)	2023			2022			2023			2022
New Jersey Natural Gas	$	(24,838	)	$	(16,387	)	$	131,414		$	140,124
Clean Energy Ventures		50,152			57,813			44,458			39,403
Storage and Transportation		1,784			11,341			12,835			22,454
Energy Services		(3,537	)		(3,383	)		68,517			39,121
Home Services and Other		3,451			(1,894	)		4,758			(781	)
Subtotal		27,012			47,490			261,982			240,321
Eliminations		2,551			406			(155	)		—
*Total*	$	29,563		$	47,896		$	261,827		$	240,321

Fiscal 2024 NFE Guidance:

NJR is introducing its fiscal 2024 NFEPS guidance range of $2.70 to $2.85, which represents 12.3% percent year-over-year growth over the midpoint of the originally provided fiscal 2023 guidance range of $2.42 - $2.52, subject to the risks and uncertainties identified below under "Forward-Looking Statements."

In fiscal 2024, NJR expects Energy Services will represent a higher percentage of NFEPS than in prior years due to contributions from the Asset Management Agreements signed in 2020. The following chart represents NJR's current expected contributions from its business segments for fiscal 2024:

Company	Expected Fiscal 2024 Net Financial Earnings Contribution
New Jersey Natural Gas	40 to 45 percent
Clean Energy Ventures	13 to 18 percent
Storage and Transportation	4 to 8 percent
Energy Services	35 to 40 percent
Home Services and Other	0 to 1 percent

In providing fiscal 2024 NFE guidance, management is aware there could be differences between reported GAAP earnings and NFE due to matters such as, but not limited to, the positions of our energy-related derivatives. Management is not able to reasonably estimate the aggregate impact or significance of these items on reported earnings and, therefore, is not able to provide a reconciliation to the corresponding GAAP equivalent for its operating earnings guidance without unreasonable efforts.

New Jersey Natural Gas ("NJNG")

NJNG reported fiscal 2023 NFE of $131.4 million, compared to NFE of $140.1 million during fiscal 2022. NJNG reported fourth-quarter fiscal 2023 net financial loss of $(24.8) million, compared to a net financial loss of $(16.4) million during the same period in fiscal 2022. The decrease in NFE for the year was due primarily to higher depreciation and operating expenses, including the deferral of bad debt costs in accordance with the July 2, 2020 BPU deferral order in fiscal 2022 that did not reoccur, partially offset by higher utility gross margin.

Customer Growth:

NJNG added 8,800 new customers during fiscal 2023, compared with 7,808 during fiscal 2022. NJNG expects these new customers to contribute approximately $7.4 million of incremental utility gross margin on an annualized basis.

Infrastructure Update:

NJNG's Infrastructure Investment Program (IIP) is a five-year, $150 million accelerated recovery program that began in fiscal 2021. IIP consists of a series of infrastructure projects designed to enhance the safety and reliability of NJNG's natural gas distribution system. During fiscal 2023, NJNG spent $43.1 million under the program on various distribution system reinforcement projects. On March 30, 2023, NJNG submitted its annual IIP filing to the BPU requesting a rate increase for capital expenditures of $31.4 million through June 30, 2023, resulting in a $3.2 million revenue increase, with an effective date of October 1, 2023.

Basic Gas Supply Service (BGSS) Incentive Programs:

BGSS incentive programs contributed $20.0 million to utility gross margin in fiscal 2023, compared with $19.6 million during fiscal 2022. Increases in storage incentive margin and capacity release volumes in fiscal 2023, were partially offset by lower off-system sales.

For more information on utility gross margin, please see "Non-GAAP Financial Information" below.

Energy-Efficiency Programs:

SAVEGREEN invested $59.8 million in fiscal 2023 in energy-efficiency upgrades for customers' homes and businesses. NJNG recovered $26.3 million of its outstanding investments during fiscal 2023 through its energy efficiency rate.

Clean Energy Ventures (CEV)

CEV reported fiscal 2023 NFE of $44.5 million, compared with NFE of $39.4 million during fiscal 2022. Fourth-quarter fiscal 2023 NFE were $50.2 million, compared with NFE of $57.8 million during the same period in fiscal 2022. The increase in NFE for fiscal 2023 was due primarily to a reversal of a valuation allowance on certain deferred tax assets during June 2023, which was determined to be no longer required. The decrease in NFE for the fourth quarter of fiscal 2023 was largely due to lower SREC and electricity revenue for the period, partially offset by higher TREC revenue.

Solar Investment Update:

During fiscal 2023, CEV placed 10 commercial projects into service, adding approximately 78MW to total installed capacity, including two operational assets acquired in July 2023 totaling approximately 21MW.
As of September 30, 2023, CEV had approximately 469MW of solar capacity (including residential) in service in New Jersey, New York, Connecticut, Rhode Island, Indiana, and Michigan.

Storage and Transportation

Storage and Transportation reported fiscal 2023 NFE of $12.8 million, compared with NFE of $22.5 million during fiscal 2022. Fourth-quarter fiscal 2023 NFE were $1.8 million, compared with NFE of $11.3 million during the same period in fiscal 2022. NFE for both periods decreased due to increased depreciation and interest expense; resulting primarily from the southern portion of the Adelphia Gateway project, which was placed in service in September 2022.

Energy Services

Energy Services reported fiscal 2023 NFE of $68.5 million, compared with NFE of $39.1 million during fiscal 2022. Fourth-quarter fiscal 2023 net financial loss was $(3.5) million compared with net financial loss of $(3.4) million for the same period in fiscal 2022. The increase in fiscal 2023 NFE was due to higher natural gas price volatility during periods of colder than expected weather in December 2022 and February 2023 as compared to the prior year, allowing Energy Services to capture additional financial margin.

Home Services and Other Operations

Home Services and Other Operations reported fiscal 2023 NFE of $4.8 million, compared with a net financial loss of $(0.8) million during fiscal 2022. Fourth-quarter fiscal 2023 NFE were $3.5 million compared with a net financial loss of $(1.9) million for the same period in fiscal 2022. The increase in NFE for the quarter and year was due primarily to increased installation and service contract revenue.

Capital Expenditures and Cash Flows:

NJR is committed to maintaining a strong financial profile:

During fiscal 2023, capital expenditures were $537.3 million, including accruals, compared with $569.2 million, during fiscal 2022. The decrease in capital expenditures was primarily due to the completion of the southern portion of the Adelphia Gateway Pipeline project, which was placed into service in September 2022, as well as lower solar capital expenditures during the fiscal year. This was partially offset by an increase in capital expenditures at NJNG of $112.4 million, largely due to investments in customer growth and system integrity.
During fiscal 2023, cash flows from operations were $479.0 million, compared with cash flows from operations of $323.5 million during the same period of fiscal 2022. The increase in operating cash flows was due to increased earnings and decreased working capital requirements as a result of a lower gas prices when compared to the prior fiscal year.

Forward-Looking Statements:

This earnings release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. 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. Words such as "anticipates," "estimates," "expects," "projects," "may," "will," "intends," "plans," "believes," "should" and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management's current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon NJR. There can be no assurance that future developments will be in accordance with management's expectations, assumptions and beliefs or that the effect of future developments on NJR will be those anticipated by management. Forward-looking statements in this earnings release include, but are not limited to, certain statements regarding NJR's NFEPS guidance for fiscal 2024, projected NFEPS growth rates, NFEPS Contributions, forecasted contribution of business segments to NJR's NFE for fiscal 2024, customer growth at NJNG and their expected contributions, infrastructure programs and investments future decarbonization opportunities including IIP, the outcome or timing of future Base Rate Cases with the BPU, and other legal and regulatory expectations.

Additional information and factors that could cause actual results to differ materially from NJR's expectations are contained in NJR's filings with the SEC, including NJR's Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC's web site, http://www.sec.gov. Information included in this earnings release is representative as of today only and while NJR periodically reassesses material trends and uncertainties affecting NJR's results of operations and financial condition in connection with its preparation of management's discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, NJR does not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.

Non-GAAP Financial Information:

This earnings release includes the non-GAAP financial measures NFE/net financial loss, NFE per basic share, financial margin and utility gross margin. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. As an indicator of NJR's operating performance, these measures should not be considered an alternative to, or more meaningful than, net income or operating revenues as determined in accordance with GAAP. This information has been provided pursuant to the requirements of SEC Regulation G.

NFE and financial margin exclude unrealized gains or losses on derivative instruments related to NJR's unregulated subsidiaries and certain realized gains and losses on derivative instruments related to natural gas that has been placed into storage at Energy Services and certain transactions related to NJR's investments in the PennEast Project, net of applicable tax adjustments as described below. Financial margin also differs from gross margin as defined on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization as well as the effects of derivatives as discussed above. Volatility associated with the change in value of these financial instruments and physical commodity reported on the income statement in the current period. In order to manage its business, NJR views its results without the impacts of the unrealized gains and losses, and certain realized gains and losses, caused by changes in value of these financial instruments and physical commodity contracts prior to the completion of the planned transaction because it shows changes in value currently instead of when the planned transaction ultimately is settled. An annual estimated effective tax rate is calculated for NFE purposes and any necessary quarterly tax adjustment is applied to NJR Energy Services Company.

NJNG's utility gross margin is defined as operating revenues less natural gas purchases, sales tax, and regulatory rider expense. This measure differs from gross margin as presented on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization. Utility gross margin may also not be comparable to the definition of gross margin used by others in the natural gas distribution business and other industries. Management believes that utility gross margin provides a meaningful basis for evaluating utility operations since natural gas costs, sales tax and regulatory rider expenses are included in operating revenues and passed through to customers and, therefore, have no effect on utility gross margin.

Management uses these non-GAAP financial measures as supplemental measures to other GAAP results to provide a more complete understanding of NJR's performance. Management believes these non-GAAP financial measures are more reflective of NJR's business model, provide transparency to investors and enable period-to-period comparability of financial performance. A reconciliation of all non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. For a full discussion of NJR's non-GAAP financial measures, please see NJR's most recent Report on Form 10-K, Item 7.

About New Jersey Resources

New Jersey Resources (NYSE:NJR) is a Fortune 1000 company that, through its subsidiaries, provides safe and reliable natural gas and clean energy services, including transportation, distribution, asset management and home services. NJR is composed of five primary businesses:

New Jersey Natural Gas, NJR's principal subsidiary, operates and maintains natural gas transportation and distribution infrastructure to serve approximately 576,000 customers in New Jersey's Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington counties.
Clean Energy Ventures invests in, owns and operates solar projects with a total capacity of approximately 469 megawatts, providing residential and commercial customers with low-carbon solutions.
Energy Services manages a diversified portfolio of natural gas transportation and storage assets and provides physical natural gas services and customized energy solutions to its customers across North America.
Storage and Transportation serves customers from local distributors and producers to electric generators and wholesale marketers through its ownership of Leaf River and the Adelphia Gateway Pipeline, as well as our 50% equity ownership in the Steckman Ridge natural gas storage facility.
Home Services provides service contracts as well as heating, central air conditioning, water heaters, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey.

NJR and its over 1,300 employees are committed to helping customers save energy and money by promoting conservation and encouraging efficiency through Conserve to Preserve® and initiatives such as The SAVEGREEN Project® and The Sunlight Advantage®.

For more information about NJR:

www.njresources.com.

NEW JERSEY RESOURCES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended				Twelve Months Ended
	September 30,				September 30,
(Thousands, except per share data)	2023		2022		2023		2022
OPERATING REVENUES
Utility	$	108,404	$	190,151	$	1,011,284	$	1,127,417
Nonutility		222,921		575,335		951,710		1,778,562
Total operating revenues		331,325		765,486		1,962,994		2,905,979
OPERATING EXPENSES
Gas purchases
Utility		34,998		112,463		416,158		547,901
Nonutility		87,228		413,521		555,579		1,393,656
Related parties		1,739		1,828		7,206		7,395
Operation and maintenance		100,759		118,723		373,568		361,866
Regulatory rider expenses		3,017		3,496		50,542		59,437
Depreciation and amortization		39,291		34,549		152,941		129,249
Total operating expenses		267,032		684,580		1,555,994		2,499,504
OPERATING INCOME		64,293		80,906		407,000		406,475
Other income, net		10,938		9,744		26,083		22,295
Interest expense, net of capitalized interest		33,143		26,016		123,014		85,830
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES		42,088		64,634		310,069		342,940
Income tax provision		6,216		12,144		49,275		76,195
Equity in earnings of affiliates		1,152		2,032		3,930		8,177
NET INCOME	$	37,024	$	54,522	$	264,724	$	274,922

EARNINGS PER COMMON SHARE
Basic	$	0.38	$	0.57	$	2.73	$	2.86
Diluted	$	0.38	$	0.56	$	2.71	$	2.85

WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		97,568		96,235		97,028		96,100
Diluted		98,192		96,630		97,627		96,488

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES
(Unaudited)
	Three Months Ended						Twelve Months Ended
	September 30,						September 30,
(Thousands)	2023			2022			2023			2022
NEW JERSEY RESOURCES

A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:

Net income	$	37,024		$	54,522		$	264,724		$	274,922
Add:
Unrealized gain on derivative instruments and related transactions		(7,579	)		(1,846	)		(38,081	)		(59,906	)
Tax effect		1,800			439			9,050			14,248
Effects of economic hedging related to natural gas inventory		(2,186	)		(5,221	)		34,699			19,939
Tax effect		520			1,241			(8,246	)		(4,738	)
Gain on equity method investment		—			(1,500	)		(300	)		(5,521	)
Tax effect		(93	)		374			(19	)		1,377
NFE tax adjustment		77			(113	)		—			—
Net financial earnings	$	29,563		$	47,896		$	261,827		$	240,321

Weighted Average Shares Outstanding
Basic		97,568			96,235			97,028			96,100
Diluted		98,192			96,630			97,627			96,488

A reconciliation of basic earnings per share, the closest GAAP financial measure, to basic net financial earnings per share is as follows:

Basic earnings per share	$	0.38		$	0.57		$	2.73		$	2.86
Add:
Unrealized gain on derivative instruments and related transactions	$	(0.08	)	$	(0.02	)	$	(0.39	)	$	(0.62	)
Tax effect	$	0.02		$	0.01		$	0.09		$	0.15
Effects of economic hedging related to natural gas inventory	$	(0.02	)	$	(0.05	)	$	0.36		$	0.21
Tax effect	$	—		$	0.01		$	(0.09	)	$	(0.05	)
Gain on equity method investment	$	—		$	(0.02	)	$	—		$	(0.06	)
Tax effect	$	—		$	—		$	—		$	0.01
Basic net financial earnings per share	$	0.30		$	0.50		$	2.70		$	2.50

NATURAL GAS DISTRIBUTION

A reconciliation of gross margin, the closest GAAP financial measure, to utility gross margin is as follows:

Operating revenues	$	108,741		$	190,488		$	1,012,633		$	1,128,767
Less:
Natural gas purchases		37,323			114,791			425,457			557,232
Operating and maintenance ⁽¹⁾		31,605			30,805			115,292			93,164
Regulatory rider expense		3,017			3,496			50,542			59,437
Depreciation and amortization		26,292			24,391			102,326			94,579
Gross margin		10,504			17,005			319,016			324,355
Add:
Operating and maintenance ⁽¹⁾		31,605			30,805			115,292			93,164
Depreciation and amortization		26,292			24,391			102,326			94,579
Utility gross margin	$	68,401		$	72,201		$	536,634		$	512,098
(1) Excludes selling, general and administrative expenses of $28.7 million and $26.7 million for the three months ended September 30, 2023 and 2022, respectively, and $111.5 million and $102.8 million for the fiscal year ended September 30, 2023 and 2022, respectively.

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (continued)
(Unaudited)
	Three Months Ended						Twelve Months Ended
	September 30,						September 30,
(Thousands)	2023			2022			2023			2022
ENERGY SERVICES

A reconciliation of gross margin, the closest GAAP financial measure, to Energy Services' financial margin is as follows:

Operating revenues	$	102,932		$	439,568		$	691,616		$	1,529,272
Less:
Natural Gas purchases		87,932			413,805			558,932			1,394,405
Operation and maintenance ⁽¹⁾		5,833			10,281			20,199			23,709
Depreciation and amortization		51			54			221			148
Gross margin		9,116			15,428			112,264			111,010
Add:
Operation and maintenance ⁽¹⁾		5,833			10,281			20,199			23,709
Depreciation and amortization		51			54			221			148
Unrealized (gain) loss on derivative instruments and related transactions		(8,559	)		1,671			(48,251	)		(60,000	)
Effects of economic hedging related to natural gas inventory		(2,186	)		(5,221	)		34,699			19,939
Financial margin	$	4,255		$	22,213		$	119,132		$	94,806
(1) Excludes selling, general and administrative expenses of $0.4 million and $14.3 million for the three months ended September 30, 2023 and 2022, respectively, and $(0.8) million and $15.4 million for the fiscal year ended September 30, 2023 and 2022, respectively.

A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:

Net income (loss)	$	4,577		$	(564	)	$	78,848		$	69,650
Add:
Unrealized (gain) loss on derivative instruments and related transactions		(8,559	)		1,671			(48,251	)		(60,000	)
Tax effect		2,034			(397	)		11,467			14,270
Effects of economic hedging related to natural gas		(2,186	)		(5,221	)		34,699			19,939
Tax effect		520			1,241			(8,246	)		(4,738	)
NFE tax adjustment		77			(113	)		—			—
Net financial (loss) earnings	$	(3,537	)	$	(3,383	)	$	68,517		$	39,121

FINANCIAL STATISTICS BY BUSINESS UNIT
*(Unaudited)*

	Three Months Ended						Twelve Months Ended
	September 30,						September 30,
(Thousands, except per share data)	2023			2022			2023			2022
NEW JERSEY RESOURCES

Operating Revenues
Natural Gas Distribution	$	108,741		$	190,488		$	1,012,633		$	1,128,767
Clean Energy Ventures		83,755			92,475			124,131			128,280
Energy Services		102,932			439,568			691,616			1,529,272
Storage and Transportation		22,933			25,860			92,859			67,735
Home Services and Other		14,969			14,789			57,638			56,182
*Sub-total*		333,330			763,180			1,978,877			2,910,236
Eliminations		(2,005	)		2,306			(15,883	)		(4,257	)
*Total*	$	331,325		$	765,486		$	1,962,994		$	2,905,979


Operating (Loss) Income
Natural Gas Distribution	$	(18,172	)	$	(9,721	)	$	207,528		$	218,973
Clean Energy Ventures		67,389			74,055			58,722			66,178
Energy Services		8,742			1,160			113,112			95,639
Storage and Transportation		5,901			12,867			32,425			22,163
Home Services and Other		595			(1,562	)		2,495			678
*Sub-total*		64,455			76,799			414,282			403,631
Eliminations		(162	)		4,107			(7,282	)		2,844
*Total*	$	64,293		$	80,906		$	407,000		$	406,475


Equity in Earnings of Affiliates
Storage and Transportation	$	863		$	2,279		$	3,126		$	9,865
Eliminations		289			(247	)		804			(1,688	)
*Total*	$	1,152		$	2,032		$	3,930		$	8,177


Net (Loss) Income
Natural Gas Distribution	$	(24,838	)	$	(16,387	)	$	131,414		$	140,124
Clean Energy Ventures		50,152			57,813			44,458			39,403
Energy Services		4,577			(564	)		78,848			69,650
Storage and Transportation		1,877			12,467			13,154			26,598
Home Services and Other		3,451			(1,894	)		4,758			(781	)
*Sub-total*		35,219			51,435			272,632			274,994
Eliminations		1,805			3,087			(7,908	)		(72	)
*Total*	$	37,024		$	54,522		$	264,724		$	274,922


Net Financial (Loss) Earnings
Natural Gas Distribution	$	(24,838	)	$	(16,387	)	$	131,414		$	140,124
Clean Energy Ventures		50,152			57,813			44,458			39,403
Energy Services		(3,537	)		(3,383	)		68,517			39,121
Storage and Transportation		1,784			11,341			12,835			22,454
Home Services and Other		3,451			(1,894	)		4,758			(781	)
*Sub-total*		27,012			47,490			261,982			240,321
Eliminations		2,551			406			(155	)		—
*Total*	$	29,563		$	47,896		$	261,827		$	240,321


Throughput (Bcf)
NJNG, Core Customers		17.4			21.0			93.4			99.6
NJNG, Off System/Capacity Management		20.6			25.8			72.6			95.2
Energy Services Fuel Mgmt. and Wholesale Sales		41.4			50.2			150.4			231.1
*Total*		79.4			97.0			316.4			425.9


Common Stock Data
Yield at September 30,		4.1	%		4.0	%		4.1	%		4.0	%
Market Price at September 30,	$	40.63		$	38.70		$	40.63		$	38.70
Shares Out. at September 30,		97,584			96,250			97,584			96,250
Market Cap. at September 30,	$	3,964,856		$	3,724,870		$	3,964,856		$	3,724,870

	Three Months Ended						Twelve Months Ended
(Unaudited)	September 30,						September 30,
(Thousands, except customer and weather data)	2023			2022			2023			2022
NATURAL GAS DISTRIBUTION

Utility Gross Margin
Operating revenues	$	108,741		$	190,488		$	1,012,633		$	1,128,767
Less:
Natural gas purchases		37,323			114,791			425,457			557,232
Operating and maintenance ⁽¹⁾		31,605			30,805			115,292			93,164
Regulatory rider expense		3,017			3,496			50,542			59,437
Depreciation and amortization		26,292			24,391			102,326			94,579
Gross margin		10,504			17,005			319,016			324,355
Add:
Operating and maintenance ⁽¹⁾		31,605			30,805			115,292			93,164
Depreciation and amortization		26,292			24,391			102,326			94,579
*Total Utility Gross Margin*	$	68,401		$	72,201		$	536,634		$	512,098
(1) Excludes selling, general and administrative expenses of $28.7 million and $26.7 million for the three months ended September 30, 2023 and 2022, respectively, and $111.5 million and $102.8 million for the fiscal year ended September 30, 2023 and 2022, respectively.

Utility Gross Margin, Operating Income and Net Income
Residential	$	39,121		$	37,451		$	360,138		$	341,167
Commercial, Industrial & Other		10,808			13,020			76,550			77,629
Firm Transportation		14,611			12,832			76,114			69,933
*Total Firm Margin*		64,540			63,303			512,802			488,729
Interruptible		1,240			1,362			3,812			3,782
*Total System Margin*		65,780			64,665			516,614			492,511
Off System/Capacity Management/FRM/Storage Incentive		2,621			7,536			20,020			19,587
*Total Utility Gross Margin*		68,401			72,201			536,634			512,098
Operation and maintenance expense		60,281			57,531			226,780			198,546
Depreciation and amortization		26,292			24,391			102,326			94,579
*Operating (Loss) Income*	$	(18,172	)	$	(9,721	)	$	207,528		$	218,973

*Net (Loss) Income*	$	(24,838	)	$	(16,387	)	$	131,414		$	140,124

*Net Financial (Loss) Earnings*	$	(24,838	)	$	(16,387	)	$	131,414		$	140,124

Throughput (Bcf)
Residential		3.4			3.2			43.4			45.5
Commercial, Industrial & Other		0.4			0.8			8.4			8.7
Firm Transportation		1.1			1.5			12.1			13.0
*Total Firm Throughput*		4.9			5.5			63.9			67.2
Interruptible		12.5			15.5			29.5			32.4
*Total System Throughput*		17.4			21.0			93.4			99.6
Off System/Capacity Management		20.6			25.8			72.6			95.2
*Total Throughput*		38.0			46.8			166.0			194.8

Customers
Residential		520,682			512,264			520,682			512,264
Commercial, Industrial & Other		31,725			31,227			31,725			31,227
Firm Transportation		23,490			25,713			23,490			25,713
*Total Firm Customers*		575,897			569,204			575,897			569,204
Interruptible		83			88			83			88
*Total System Customers*		575,980			569,292			575,980			569,292
Off System/Capacity Management*		20			8			20			8
*Total Customers*		576,000			569,300			576,000			569,300
*The number of customers represents those active during the last month of the period.
Degree Days
Actual		28			33			3,897			4,130
Normal		24			27			4,498			4,504
Percent of Normal		116.7	%		122.2	%		86.6	%		91.7	%

	Three Months Ended						Twelve Months Ended
(Unaudited)	September 30,						September 30,
(Thousands, except customer, RECs and megawatt)	2023			2022			2023			2022
CLEAN ENERGY VENTURES

Operating Revenues
SREC sales	$	69,455		$	76,637		$	79,762		$	84,476
TREC sales		4,629			1,913			12,636			5,487
Solar electricity sales and other		6,608			10,967			19,782			26,806
Sunlight Advantage		3,063			2,958			11,951			11,511
*Total Operating Revenues*	$	83,755		$	92,475		$	124,131		$	128,280

Depreciation and Amortization	$	6,607		$	5,494		$	25,320		$	21,396

Operating Income	$	67,389		$	74,055		$	58,722		$	66,178

Income Tax (Benefit) Provision	$	15,396		$	16,885		$	(7,683	)	$	11,361

Net Income	$	50,152		$	57,813		$	44,458		$	39,403

Net Financial Earnings	$	50,152		$	57,813		$	44,458		$	39,403

Solar Renewable Energy Certificates Generated		129,286			146,772			422,039			425,453

Solar Renewable Energy Certificates Sold		345,035			378,532			393,906			417,305

Transition Renewable Energy Certificates Generated		28,507			13,443			80,520			38,914

Solar Renewable Energy Certificates II Generated		4,457			—			10,260			—

Solar Megawatts Under Construction		5.6			63.1			5.6			63.1

ENERGY SERVICES

Operating Income
Operating revenues	$	102,932		$	439,568		$	691,616		$	1,529,272
Less:
Gas purchases		87,932			413,805			558,932			1,394,405
Operation and maintenance expense		6,207			24,549			19,351			39,080
Depreciation and amortization		51			54			221			148
*Operating Income*	$	8,742		$	1,160		$	113,112		$	95,639

Net Income (Loss)	$	4,577		$	(564	)	$	78,848		$	69,650

Financial Margin	$	4,255		$	22,213		$	119,132		$	94,806

Net Financial (Loss) Earnings	$	(3,537	)	$	(3,383	)	$	68,517		$	39,121

Gas Sold and Managed (Bcf)		41.4			50.2			150.4			231.1

STORAGE AND TRANSPORTATION

Operating Revenues	$	22,933		$	25,860		$	92,859		$	67,735

Equity in Earnings of Affiliates	$	863		$	2,279		$	3,126		$	9,865

Operation and Maintenance Expense	$	10,697		$	8,044		$	34,648		$	30,568

Other Income, Net	$	2,021		$	1,405		$	6,850		$	8,546

Interest Expense	$	6,538		$	4,937		$	25,803		$	12,097

Income Tax Provision (Benefit)	$	370		$	(853	)	$	3,444		$	1,879

Net Income	$	1,877		$	12,467		$	13,154		$	26,598

Net Financial Earnings	$	1,784		$	11,341		$	12,835		$	22,454

HOME SERVICES AND OTHER

Operating Revenues	$	14,969		$	14,789		$	57,638		$	56,182

Operating Income (Loss)	$	595		$	(1,562	)	$	2,495		$	678

Net Income (Loss)	$	3,451		$	(1,894	)	$	4,758		$	(781	)

Net Financial Earnings (Loss)	$	3,451		$	(1,894	)	$	4,758		$	(781	)

Total Service Contract Customers at Sep 30		101,499			103,123			101,499			103,123

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New Jersey Resources Reports Fiscal 2023 Fourth-Quarter and Year End Results