WALL, N.J., May 05, 2025--(BUSINESS WIRE)--New Jersey Resources Corporation (NYSE: NJR) today reported financial and operating results for its fiscal 2025 second quarter ended March 31, 2025.

Highlights include:

Fiscal 2025 second-quarter consolidated net income of $204.3 million, or $2.04 per share, compared with net income of $120.8 million, or $1.23 per share, in the second quarter of fiscal 2024 Consolidated net financial earnings (NFE), a non-GAAP financial measure, of $178.3 million, or $1.78 per share, in the second-quarter of fiscal 2025, compared to NFE of $138.6 million, or $1.41 per share, in the second quarter of fiscal 2024 Fiscal 2025 year-to-date net income totaled $335.6 million, or $3.35 per share, compared with $210.2 million, or $2.14 per share, for the same period in fiscal 2024 Fiscal 2025 year-to-date NFE totaled $307.2 million, or $3.07 per share, compared with $211.0 million, or $2.15 per share, for the same period in fiscal 2024

Fiscal 2025 Outlook

Increases fiscal 2025 net financial earnings per share (NFEPS) guidance to a range of $3.15 to $3.30, from $3.05 to $3.20, a $0.10 increase, as a result of outperformance from Energy Services during the winter period Maintains 7 to 9 percent long-term NFEPS growth target, based off of a target of $2.83 per share for fiscal 2025

Management Commentary Steve Westhoven, President and CEO of New Jersey Resources, stated, "We continued to execute our strategy to deliver stable growth through our diversified business model. Our second-quarter performance exceeded expectations, largely driven by natural gas price volatility that benefited Energy Services during the winter period. Overall, we believe these results highlight the strength of our complementary portfolio and the value of our physical infrastructure."

Performance Metrics

Three Months Ended  Six Months Ended March 31,  March 31, ($ in Thousands)  2025    2024    2025    2024  Net income $ 204,287   $ 120,812   $ 335,606   $ 210,223  Basic EPS $ 2.04   $ 1.23   $ 3.35   $ 2.14  Net financial earnings* $ 178,296   $ 138,576   $ 307,190   $ 211,020  Basic net financial earnings per share* $ 1.78   $ 1.41   $ 3.07   $ 2.15  *A reconciliation of net income to NFE for the three and six months ended March 31, 2025 and 2024 is provided in the financial statements below.

Net financial earnings (loss) by business segment

Three Months Ended  Six Months Ended March 31,  March 31, (Thousands)  2025    2024    2025    2024  New Jersey Natural Gas $ 144,531   $ 107,095   $ 211,439   $ 158,539  Clean Energy Ventures  (3,958 )   (5,616 )   44,172    4,906  Storage and Transportation  2,343    1,981    8,007    5,621  Energy Services  35,301    37,644    43,134    45,475  Home Services and Other  (678 )   384    (63 )   (216 ) Subtotal  177,539    141,488    306,689    214,325  Eliminations  757    (2,912 )   501    (3,305 ) Total $ 178,296   $ 138,576   $ 307,190   $ 211,020

Fiscal 2025 NFEPS Guidance:

NJR is raising its fiscal 2025 NFEPS guidance range by $0.10 to a range of $3.15 to $3.30, subject to the risks and uncertainties identified below under "Forward-Looking Statements." Fiscal 2025 NFEPS guidance is higher than the range implied by our 7 to 9 percent long-term NFEPS growth target as a result of the gain from the sale of NJR's residential solar portfolio and strong performance from Energy Services.

Story Continues

The following chart represents NJR’s current expected NFE contributions from its business segments for fiscal 2025 (which takes into account the impact of the gain from the sale of NJR's residential solar portfolio in the first quarter of fiscal 2025):

Segment Expected fiscal 2025

net financial earnings contribution New Jersey Natural Gas 65 to 68 percent Clean Energy Ventures 19 to 22 percent Storage and Transportation 4 to 6 percent Energy Services 9 to 11 percent Home Services and Other 0 to 1 percent

In providing fiscal 2025 NFE guidance, management is aware there could be differences between reported GAAP net income 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 second-quarter fiscal 2025 NFE of $144.5 million, compared to NFE of $107.1 million during the same period in fiscal 2024. Fiscal 2025 year-to-date NFE totaled $211.4 million, compared with NFE of $158.5 million for the same period in fiscal 2024. The increase in NFE for both periods was due primarily to higher utility gross margin resulting from NJNG's recent base rate case settlement, partially offset by higher depreciation expense.

Customers:

At March 31, 2025, NJNG serviced approximately 588,000 customers in New Jersey’s Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington counties, compared to approximately 583,000 customers at September 30, 2024.

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. In the first six months of fiscal 2025, NJNG spent $16.1 million under the program on various distribution system reinforcement projects.

Basic Gas Supply Service (BGSS) Incentive Programs:

BGSS incentive programs contributed $10.6 million to utility gross margin during the first six months of fiscal 2025, compared with $13.3 million in the same period in fiscal 2024. This decline was largely due to decreased margins from storage incentives.

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

Energy-Efficiency Programs:

SAVEGREEN® invested $52.2 million year-to-date in fiscal 2025 in energy-efficiency upgrades for customers' homes and businesses. NJNG recovered $9.2 million of its outstanding investments during the first six months of fiscal 2025 through its energy efficiency rate.

Clean Energy Ventures (CEV)

CEV reported second-quarter fiscal 2025 net financial loss of $(4.0) million, compared with a net financial loss of $(5.6) million during the same period in fiscal 2024. The improvement from the prior year period was largely due to higher solar electricity sales as well as lower depreciation and amortization expenses during the period, offset by lower residential solar revenue during the period as a result of the sale of the residential solar business.

Fiscal 2025 year-to-date NFE totaled $44.2 million, compared with NFE of $4.9 million for the same period in fiscal 2024. The increase in fiscal 2025 year-to-date NFE was largely due to the gain on sale of its residential solar portfolio, partially offset by the timing of Solar Renewable Energy Certificate (SREC) sales for the period.

Solar Investment Update:

During the first six months of fiscal 2025, CEV placed 2 commercial projects into service, adding 10.5 megawatts (MW) to total installed capacity. As of March 31, 2025, CEV had approximately 399MW of commercial solar capacity in service in New Jersey, New York, Connecticut, Rhode Island, Indiana, and Michigan. Subsequent to quarter end, CEV placed an additional project into service in New Jersey, adding over 18MW of installed capacity for a total of approximately 417MW currently in service.

Storage and Transportation

Storage and Transportation reported second-quarter fiscal 2025 NFE of $2.3 million, compared with NFE of $2.0 million during the same period in fiscal 2024. Fiscal 2025 year-to-date NFE totaled $8.0 million, compared with NFE of $5.6 million for the same period in fiscal 2024. NFE increased during both periods due to an increase in operating revenues at Leaf River, as well as lower operating and maintenance expense.

On September 30, 2024, Adelphia Gateway, LLC (Adelphia) filed a general Section 4 rate case with the Federal Energy Regulatory Commission (FERC). Adelphia anticipates a resolution by the end of 2025.

Energy Services

Energy Services reported second-quarter fiscal 2025 NFE of $35.3 million, compared with $37.6 million for the same period in fiscal 2024. Fiscal 2025 year-to-date NFE totaled $43.1 million, compared with NFE of $45.5 million for the same period in fiscal 2024. Energy Services was able to take advantage of price volatility and capture additional financial margin over the past two winters. The decrease in NFE for both the fiscal 2025 second quarter and year-to-date periods was due to lower revenues from the Asset Management Agreements (AMAs) signed in December 2020.

Home Services and Other Operations

Home Services and Other Operations reported second-quarter fiscal 2025 net financial loss of $(0.7) million, compared to NFE of $0.4 million for the same period in fiscal 2024. Fiscal 2025 year-to-date net financial loss totaled $(0.1) million, compared with a net financial loss of $(0.2) million for the same period in fiscal 2024. Home Services reported higher installation and service contract revenue for both periods, offset by higher operating and maintenance expenses.

Capital Expenditures and Cash Flows:

NJR is committed to maintaining a strong financial profile:

During the first six months of fiscal 2025, capital expenditures were $287.1 million, including accruals, compared with $232.6 million during the same period of fiscal 2024. The increase in capital expenditures was primarily due to higher expenditures at NJNG and CEV. During the first six months of fiscal 2025, cash flows from operations were $414.1 million, compared to cash flows from operations of $338.6 million during the same period of fiscal 2024. The increase was due primarily to an increase in base rates at NJNG along with changes in the mix of working capital components.

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, statements regarding NJR’s NFEPS guidance for fiscal 2025, projected NFEPS growth rates and our guidance range, forecasted contributions of business segments to NJR’s NFE for fiscal 2025, impact of the sale of NJR’s residential solar portfolio, infrastructure programs and investments, future decarbonization opportunities including IIP, Energy Efficiency programs, the outcome or timing of Adelphia’s rate case with FERC;and other legal and regulatory expectations, and statements that include other projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact.

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 website, 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 new information, future events or otherwise, except as required by law.

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, 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 customers in New Jersey’s Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington counties. Clean Energy Ventures invests in, owns and operates solar projects, providing 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 SAVEGREEN®.

For more information about NJR:
www.njresources.com.

Follow us on X.com (Twitter) @NJNaturalGas.
"Like" us on facebook.com/NewJerseyNaturalGas.

NEW JERSEY RESOURCES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)  Three Months Ended  Six Months Ended March 31,  March 31, (Thousands, except per share data)   2025    2024    2025    2024  OPERATING REVENUES  Utility  $ 618,341   $ 462,863   $ 951,768   $ 755,956  Nonutility   294,686    195,050    449,620    369,167  Total operating revenues   913,027    657,913    1,401,388    1,125,123  OPERATING EXPENSES  Gas purchases  Utility   272,974    204,347    400,654    320,467  Nonutility   151,617    105,018    219,425    164,495  Related parties   1,666    1,799    3,384    3,678  Operation and maintenance   111,041    107,223    199,673    201,662  Regulatory rider expenses   48,501    29,229    70,977    48,418  Depreciation and amortization   47,967    40,075    93,296    80,362  Gain on sale of assets   (688 )   —    (55,547 )   —  Total operating expenses   633,078    487,691    931,862    819,082  OPERATING INCOME   279,949    170,222    469,526    306,041  Other income, net   17,006    15,420    28,623    21,761  Interest expense, net of capitalized interest   32,527    31,621    66,418    63,094  INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES   264,428    154,021    431,731    264,708  Income tax provision   61,593    33,947    98,977    56,883  Equity in earnings of affiliates   1,452    738    2,852    2,398  NET INCOME  $ 204,287   $ 120,812   $ 335,606   $ 210,223   EARNINGS PER COMMON SHARE  Basic  $ 2.04   $ 1.23   $ 3.35   $ 2.14  Diluted  $ 2.02   $ 1.22   $ 3.33   $ 2.13   WEIGHTED AVERAGE SHARES OUTSTANDING  Basic   100,291    98,377    100,073    98,123  Diluted   100,933    99,102    100,705    98,839

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (Unaudited)  Three Months Ended  Six Months Ended March 31,  March 31, (Thousands)   2025    2024    2025    2024  NEW JERSEY RESOURCES   A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:  Net income  $ 204,287   $ 120,812   $ 335,606   $ 210,223  Add:  Unrealized (gain) loss on derivative instruments and related transactions   (27,206 )   25,457    (20,838 )   20,057  Tax effect   6,466    (6,049 )   4,953    (4,767 ) Effects of economic hedging related to natural gas inventory   (6,650 )   (2,845 )   (16,177 )   (19,073 ) Tax effect   1,580    676    3,844    4,533  NFE tax adjustment   (181 )   525    (198 )   47  Net financial earnings  $ 178,296   $ 138,576   $ 307,190   $ 211,020   Weighted Average Shares Outstanding  Basic   100,291    98,377    100,073    98,123  Diluted   100,933    99,102    100,705    98,839   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  $ 2.04   $ 1.23   $ 3.35   $ 2.14  Add:  Unrealized (gain) loss on derivative instruments and related transactions  $ (0.27 )  $ 0.25   $ (0.21 )  $ 0.20  Tax effect  $ 0.06   $ (0.06 )  $ 0.05   $ (0.05 ) Effects of economic hedging related to natural gas inventory  $ (0.06 )  $ (0.03 )  $ (0.16 )  $ (0.19 ) Tax effect  $ 0.0...1   $ 0.01   $ 0.04   $ 0.05  NFE tax adjustment  $ —   $ 0.01   $ —   $ —  Basic net financial earnings per share  $ 1.78   $ 1.41   $ 3.07   $ 2.15

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, 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.

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (continued) (Unaudited)  Three Months Ended  Six Months Ended March 31,  March 31, (Thousands)   2025    2024    2025    2024  NATURAL GAS DISTRIBUTION   A reconciliation of gross margin, the closest GAAP financial measure, to utility gross margin is as follows:  Operating revenues  $ 618,645   $ 463,201   $ 952,410   $ 756,631  Less:  Natural gas purchases   275,298    206,675    405,303    325,119  Operating and maintenance (1)   29,510    29,558    55,519    55,341  Regulatory rider expense   48,501    29,229    70,977    48,418  Depreciation and amortization   35,713    27,464    67,797    54,381  Gross margin   229,623    170,275    352,814    273,372  Add:  Operating and maintenance (1)   29,510    29,558    55,519    55,341  Depreciation and amortization   35,713    27,464    67,797    54,381  Utility gross margin  $ 294,846   $ 227,297   $ 476,130   $ 383,094  (1) Excludes selling, general and administrative expenses of $57.8 million and $58.9 million for the six months ended March 31, 2025 and 2024, respectively.  ENERGY SERVICES   A reconciliation of gross margin, the closest GAAP financial measure, to Energy Services' financial margin is as follows:  Operating revenues  $ 246,390   $ 144,862   $ 332,698   $ 244,530  Less:  Natural Gas purchases   151,847    105,634    219,715    165,800  Operation and maintenance (1)   10,866    13,102    12,463    17,791  Depreciation and amortization   62    56    109    113  Gross margin   83,615    26,070    100,411    60,826  Add:  Operation and maintenance (1)   10,866    13,102    12,463    17,791  Depreciation and amortization   62    56    109    113  Unrealized (gain) loss on derivative instruments and related transactions   (27,206 )   29,198    (20,838 )   24,932  Effects of economic hedging related to natural gas inventory   (6,650 )   (2,845 )   (16,177 )   (19,073 ) Financial margin  $ 60,687   $ 65,581   $ 75,968   $ 84,589  (1) Excludes selling, general and administrative expenses of $0.6 million and $1.0 million for the six months ended March 31, 2025 and 2024, respectively.  A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:   Net income  $ 61,292   $ 17,028   $ 71,550   $ 40,961  Add:  Unrealized (gain) loss on derivative instruments and related transactions   (27,206 )   29,198    (20,838 )   24,932  Tax effect   6,466    (6,938 )   4,953    (5,925 ) Effects of economic hedging related to natural gas   (6,650 )   (2,845 )   (16,177 )   (19,073 ) Tax effect   1,580    676    3,844    4,533  NFE tax adjustment   (181 )   525    (198 )   47  Net financial earnings  $ 35,301   $ 37,644   $ 43,134   $ 45,475

FINANCIAL STATISTICS BY BUSINESS UNIT (Unaudited)  Three Months Ended  Six Months Ended March 31,  March 31, (Thousands, except per share data)   2025    2024    2025    2024  NEW JERSEY RESOURCES   Operating Revenues  Natural Gas Distribution  $ 618,645   $ 463,201   $ 952,410   $ 756,631  Clean Energy Ventures   7,967    9,325    34,373    44,620  Energy Services   246,390    144,862    332,698    244,530  Storage and Transportation   25,307    23,042    51,935    46,904  Home Services and Other   15,118    14,905    30,912    29,739  Sub-total   913,427    655,335    1,402,328    1,122,424  Eliminations   (400 )   2,578    (940 )   2,699  Total  $ 913,027   $ 657,913   $ 1,401,388   $ 1,125,123    Operating Income (Loss)  Natural Gas Distribution  $ 197,876   $ 140,279   $ 294,982   $ 214,454  Clean Energy Ventures   (7,553 )   (7,679 )   56,721    10,644  Energy Services   83,273    25,533    99,801    59,870  Storage and Transportation   5,800    5,910    15,569    13,234  Home Services and Other   (393 )   778    602    570  Sub-total   279,003    164,821    467,675    298,772  Eliminations   946    5,401    1,851    7,269  Total  $ 279,949   $ 170,222   $ 469,526   $ 306,041    Equity in Earnings of Affiliates  Storage and Transportation  $ 1,161   $ 85   $ 2,122   $ 1,078  Eliminations   291    653    730    1,320  Total  $ 1,452   $ 738   $ 2,852   $ 2,398    Net Income (Loss)  Natural Gas Distribution  $ 144,531   $ 107,095   $ 211,439   $ 158,539  Clean Energy Ventures   (3,958 )   (5,616 )   44,172    4,906  Energy Services   61,292    17,028    71,550    40,961  Storage and Transportation   2,343    1,981    8,007    5,621  Home Services and Other   (678 )   384    (63 )   (216 ) Sub-total   203,530    120,872    335,105    209,811  Eliminations   757    (60 )   501    412  Total  $ 204,287   $ 120,812   $ 335,606   $ 210,223    Net Financial Earnings (Loss)  Natural Gas Distribution  $ 144,531   $ 107,095   $ 211,439   $ 158,539  Clean Energy Ventures   (3,958 )   (5,616 )   44,172    4,906  Energy Services   35,301    37,644    43,134    45,475  Storage and Transportation   2,343    1,981    8,007    5,621  Home Services and Other   (678 )   384    (63 )   (216 ) Sub-total   177,539    141,488    306,689    214,325  Eliminations   757    (2,912 )   501    (3,305 ) Total  $ 178,296   $ 138,576   $ 307,190   $ 211,020    Throughput (Bcf)  NJNG, Core Customers   35.7    32.9    62.9    56.3  NJNG, Off System/Capacity Management   22.1    37.1    36.5    64.3  Energy Services Fuel Mgmt. and Wholesale Sales   35.2    38.3    63.5    68.4  Total   93.0    108.3    162.9    189.0    Common Stock Data  Yield at March 31,   3.7 %   3.9 %   3.7 %   3.9 % Market Price at March 31,  $ 49.06   $ 42.91   $ 49.06   $ 42.91  Shares Out. at March 31,   100,303    98,745    100,303    98,745  Market Cap. at March 31,  $ 4,920,847   $ 4,237,144   $ 4,920,847   $ 4,237,144

Three Months Ended  Six Months Ended (Unaudited)  March 31,  March 31, (Thousands, except customer and weather data)   2025    2024    2025    2024  NATURAL GAS DISTRIBUTION   Utility Gross Margin  Operating revenues  $ 618,645   $ 463,201   $ 952,410   $ 756,631  Less:  Natural gas purchases   275,298    206,675    405,303    325,119  Operating and maintenance (1)   29,510    29,558    55,519    55,341  Regulatory rider expense   48,501    29,229    70,977    48,418  Depreciation and amortization   35,713    27,464    67,797    54,381  Gross margin   229,623    170,275    352,814    273,372  Add:  Operating and maintenance (1)   29,510    29,558    55,519    55,341  Depreciation and amortization   35,713    27,464    67,797    54,381  Total Utility Gross Margin  $ 294,846   $ 227,297   $ 476,130   $ 383,094  (1) Excludes selling, general and administrative expenses of $57.8 million and $58.9 million for the six months ended March 31, 2025 and 2024, respectively.  Utility Gross Margin, Operating Income and Net Income  Residential  $ 215,668   $ 163,495   $ 345,686   $ 271,532  Commercial, Industrial & Other   37,108    28,676    60,977    49,507  Firm Transportation   33,908    26,490    57,084    47,254  Total Firm Margin   286,684    218,661    463,747    368,293  Interruptible   800    750    1,774    1,534  Total System Margin   287,484    219,411    465,521    369,827  Basic Gas Supply Service Incentive   7,362    7,886    10,609    13,267  Total Utility Gross Margin   294,846    227,297    476,130    383,094  Operation and maintenance expense   61,257    59,554    113,351    114,259  Depreciation and amortization   35,713    27,464    67,797    54,381  Operating Income  $ 197,876   $ 140,279   $ 294,982   $ 214,454   Net Income  $ 144,531   $ 107,095   $ 211,439   $ 158,539   Net Financial Earnings  $ 144,531   $ 107,095   $ 211,439   $ 158,539   Throughput (Bcf)  Residential   24.0    21.0    38.1    34.9  Commercial, Industrial & Other   4.5    3.9    7.1    6.5  Firm Transportation   5.0    4.7    8.4    8.3  Total Firm Throughput   33.5    29.6    53.6    49.7  Interruptible   2.2    3.3    9.3    6.6  Total System Throughput   35.7    32.9    62.9    56.3  Off System/Capacity Management   22.1    37.1    36.5    64.3  Total Throughput   57.8    70.0    99.4    120.6   Customers  Residential   532,699    525,391    532,699    525,391  Commercial, Industrial & Other   33,291    33,108    33,291    33,108  Firm Transportation   22,060    22,992    22,060    22,992  Total Firm Customers   588,050    581,491    588,050    581,491  Interruptible   88    83    88    83  Total System Customers   588,138    581,574    588,138    581,574  Off System/Capacity Management*   26    26    26    26  Total Customers   588,164    581,600    588,164    581,600  *The number of customers represents those active during the last month of the period.  Degree Days  Actual   2,375    2,135    3,774    3,543  Normal   2,384    2,436    3,907    3,970  Percent of Normal   99.6 %   87.6 %   96.6 %   89.2 %

Three Months Ended  Six Months Ended (Unaudited)  March 31,  March 31, (Thousands, except customer, RECs and megawatt)   2025    2024    2025    2024  CLEAN ENERGY VENTURES   Operating Revenues  SREC sales  $ 134   $ 100   $ 17,818   $ 26,031  TREC sales   2,554    2,257    5,059    4,660  SREC II sales   312    415    703    662  Solar electricity sales   4,968    3,696    8,923    7,350  Sunlight Advantage   (1 )   2,857    1,870    5,917  Total Operating Revenues  $ 7,967   $ 9,325   $ 34,373   $ 44,620  Depreciation and Amortization  $ 5,504   $ 6,931   $ 11,929   $ 13,853   Operating (Loss) Income  $ (7,553 )  $ (7,679 )  $ 56,721   $ 10,644   Income Tax (Benefit) Provision  $ (1,079 )  $ (1,594 )  $ 13,062   $ 1,537   Net (Loss) Income  $ (3,958 )  $ (5,616 )  $ 44,172   $ 4,906   Net Financial (Loss) Earnings  $ (3,958 )  $ (5,616 )  $ 44,172   $ 4,906   Solar Renewable Energy Certificates Generated   50,662    57,635    139,369    151,205   Solar Renewable Energy Certificates Sold   809    714    86,502    123,153   Transition Renewable Energy Certificates Generated   17,244    15,847    34,688    32,552   Solar Renewable Energy Certificates II Generated   3,372    4,693    7,776    7,466   Commercial Solar Megawatts Under Construction   54.8    33.9    54.8    33.9   ENERGY SERVICES   Operating Income  Operating revenues  $ 246,390   $ 144,862   $ 332,698   $ 244,530  Less:  Gas purchases   151,847    105,634    219,715    165,800  Operation and maintenance expense   11,208    13,639    13,073    18,747  Depreciation and amortization   62    56    109    113  Operating Income  $ 83,273   $ 25,533   $ 99,801   $ 59,870   Net Income  $ 61,292   $ 17,028   $ 71,550   $ 40,961   Financial Margin  $ 60,687   $ 65,581   $ 75,968   $ 84,589   Net Financial Earnings  $ 35,301   $ 37,644   $ 43,134   $ 45,475   Gas Sold and Managed (Bcf)   35.2    38.3    63.5    68.4   STORAGE AND TRANSPORTATION   Operating Revenues  $ 25,307   $ 23,042   $ 51,935   $ 46,904   Equity in Earnings of Affiliates  $ 1,161   $ 85   $ 2,122   $ 1,078   Operation and Maintenance Expense  $ 12,910   $ 10,563   $ 22,993   $ 20,663   Other Income, Net  $ 1,933   $ 2,473   $ 4,325   $ 4,761   Interest Expense  $ 5,817   $ 5,868   $ 11,786   $ 11,801   Income Tax Provision  $ 734   $ 619   $ 2,223   $ 1,651   Net Income  $ 2,343   $ 1,981   $ 8,007   $ 5,621   Net Financial Earnings  $ 2,343   $ 1,981   $ 8,007   $ 5,621   HOME SERVICES AND OTHER   Operating Revenues  $ 15,118   $ 14,905   $ 30,912   $ 29,739   Operating (Loss) Income  $ (393 )  $ 778   $ 602   $ 570   Net (Loss) Income  $ (678 )  $ 384   $ (63 )  $ (216 )  Net Financial (Loss) Earnings  $ (678 )  $ 384   $ (63 )  $ (216 )  Total Service Contract Customers at March 31   99,121    100,341    99,121    100,341

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