NEW JERSEY RESOURCES CORP [NJR] Filings

10-Q 1 njr-20230630.htm 10-Q JUNE 2023 njr-20230630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2023

☐ 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)

New Jersey

22-2376465

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification Number)

1415 Wyckoff Road

(732)

938‑1480

Wall

New Jersey

07719

(Registrant's telephone number,
including area code)

(Address of principal executive offices)

Securities registered pursuant to Section 12 (b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common Stock - $2.50 Par Value

NJR

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes: ☒ No: ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes: ☒ No: ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes: ☐ No: ☒

The number of shares outstanding of $2.50 par value Common Stock as of July 31, 2023 was 97,561,926.

New Jersey Resources Corporation

TABLE OF CONTENTS


			Page
Glossary of Key Terms			1
Information Concerning Forward-Looking Statements			3
PART I. FINANCIAL INFORMATION
	ITEM 1.	Unaudited Condensed Consolidated Financial Statements	4
		Notes to Unaudited Condensed Consolidated Financial Statements	10
		Note 1. Nature of the Business	10
		Note 2. Summary of Significant Accounting Policies	10
		Note 3. Revenue	12
		Note 4. Regulation	17
		Note 5. Derivative Instruments	19
		Note 6. Fair Value	24
		Note 7. Investments in Equity Investees	25
		Note 8. Earnings Per Share	26
		Note 9. Debt	26
		Note 10. Employee Benefit Plans	28
		Note 11. Income Taxes	28
		Note 12. Leases	30
		Note 13. Commitments and Contingent Liabilities	32

		Note 14. Reporting Segment and Other Operations Data	33
		Note 15. Related Party Transactions	37

	ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	38
	ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	65
	ITEM 4.	Controls and Procedures	68
PART II. OTHER INFORMATION
	ITEM 1.	Legal Proceedings	69
	ITEM 1A.	Risk Factors	69
	ITEM 2.	Unregistered Sale of Equity Securities and Use of Proceeds	69
	ITEM 5.	Other Information	69
	ITEM 6.	Exhibits	70
		Signatures	71

New Jersey Resources Corporation

GLOSSARY OF KEY TERMS


Adelphia Gateway			Adelphia Gateway, LLC
AFUDC			Allowance for Funds Used During Construction
AMA			Asset Management Agreement
ASC			Accounting Standards Codification
ASU			Accounting Standards Update
Bcf			Billion Cubic Feet
BGSS			Basic Gas Supply Service
BPU			New Jersey Board of Public Utilities
CIP			Conservation Incentive Program
Clean Energy Ventures			Clean Energy Ventures segment
CME			Chicago Mercantile Exchange
COVID-19			Novel coronavirus disease

DRP			NJR Direct Stock Purchase and Dividend Reinvestment Plan

Energy Services			Energy Services segment
Exchange Act			Securities Exchange Act of 1934, as amended
FASB			Financial Accounting Standards Board
FCM			Futures Commission Merchant
FERC			Federal Energy Regulatory Commission
Financial Margin			A non-GAAP financial measure, which represents revenues earned from the sale of natural gas less costs of natural gas sold including any transportation and storage costs, and excludes certain operations and maintenance expense and depreciation and amortization, as well as any accounting impact from the change in the fair value of certain derivative instruments
Fitch			Fitch Ratings Company
FMB			First Mortgage Bond
GAAP			Generally Accepted Accounting Principles of the United States
Home Services and Other			Home Services and Other Operations
ICE			Intercontinental Exchange
IIP			Infrastructure Investment Program
ISDA			The International Swaps and Derivatives Association
ITC			Federal Investment Tax Credit
Leaf River			Leaf River Energy Center LLC
MGP			Manufactured Gas Plant
MMBtu			Million British Thermal Units
Moody's			Moody's Investors Service, Inc.
Mortgage Indenture			The Amended and Restated Indenture of Mortgage, Deed of Trust and Security Agreement between NJNG and U.S. Bank National Association dated as of September 1, 2014, as amended
MW			Megawatts
MWh			Megawatt Hour
NAESB			The North American Energy Standards Board
Natural Gas Distribution			Natural Gas Distribution segment
NFE			Net Financial Earnings
NJ RISE			New Jersey Reinvestment in System Enhancement
NJCEP			New Jersey's Clean Energy Program
NJDEP			New Jersey Department of Environmental Protection
NJNG			New Jersey Natural Gas Company
NJNG Credit Facility			The $250 million unsecured committed credit facility expiring in September 2027
NJR Credit Facility			The $650 million unsecured committed credit facility expiring in September 2027

New Jersey Resources Corporation


GLOSSARY OF KEY TERMS (cont.)

NJR or The Company			New Jersey Resources Corporation
NJR Retail			NJR Retail Company
NJRHS			NJR Home Services Company
Non-GAAP			Not in accordance with Generally Accepted Accounting Principles of the United States
NPNS			Normal Purchase/Normal Sale
NYMEX			New York Mercantile Exchange
OCI			Other Comprehensive Income
O&M			Operation and Maintenance
OPEB			Other Postemployment Benefit Plans
PennEast			PennEast Pipeline Company, LLC
PPA			Power Purchase Agreement
RAC			Remediation Adjustment Clause
REC			Renewable Energy Certificate
SAFE II			Safety Acceleration and Facility Enhancement Program, Phase II
SAVEGREEN			The SAVEGREEN Project®
SBC			Societal Benefits Charge
SOFR			Secured Overnight Financing Rate
SREC			Solar Renewable Energy Certificate
Steckman Ridge			Collectively, Steckman Ridge GP, LLC and Steckman Ridge, LP
Storage and Transportation			Storage and Transportation segment
TETCO			Texas Eastern Transmission
The Inflation Reduction Act			The Inflation Reduction Act of 2022

TREC			Transition Renewable Energy Certificate
Trustee			U.S. Bank National Association
U.S.			The United States of America
USF			Universal Service Fund
Utility Gross Margin			A non-GAAP financial measure, which represents operating revenues less natural gas purchases, sales tax, and regulatory rider expense, and excludes certain operations and maintenance expense and depreciation and amortization

New Jersey Resources Corporation

INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS

Certain statements contained in this report, including, without limitation, statements as to management expectations, assumptions and beliefs presented in Part I, Item 2. “Management's Discussion and Analysis of Financial Condition and Results of Operations,” Part I, Item 3. “Quantitative and Qualitative Disclosures About Market Risk,” Part II, Item 1. “Legal Proceedings” and in the notes to the financial statements are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Exchange Act and the Private Securities Litigation Reform Act of 1995. Forward-looking statements can also be identified by the use of forward-looking terminology such as “anticipate,” “estimate,” “may,” “could,” “might,” “intend,” “expect,” “believe,” “will” “plan,” or “should,” or comparable terminology and are made based upon management's current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect on us. There can be no assurance that future developments will be in accordance with management's expectations, assumptions or beliefs, or that the effect of future developments on us will be those anticipated by management.

We caution readers that the expectations, assumptions and beliefs that form the basis for forward-looking statements regarding customer growth, customer usage, qualifications for ITCs, RECs, future rate case proceedings, financial condition, results of operations, cash flows, capital requirements, future capital expenditures, market risk, effective tax rate and other matters for fiscal 2023 and thereafter include many factors that are beyond our ability to control or estimate precisely, such as estimates of future market conditions, the behavior of other market participants and changes in the debt and equity capital markets. The factors that could cause actual results to differ materially from our expectations, assumptions and beliefs include, but are not limited to, those discussed in Item 1A. Risk Factors of our Annual Report on Form 10-K for the fiscal year ended September 30, 2022, as well as the following, which are neither presented in order of importance nor weighted:

•our ability to obtain governmental and regulatory approvals, land-use rights, electric grid connection (in the case of clean energy projects) and/or financing for the construction, development and operation of our unregulated energy investments, pipeline transportation systems and NJNG and Storage and Transportation infrastructure projects, in a timely manner;

•risks associated with our investments in clean energy projects, including the availability of regulatory incentives and federal tax credits, the availability of viable projects, our eligibility for ITCs, the future market for RECs and electricity prices, our ability to complete construction of the projects and operational risks related to projects in service;

•risks associated with acquisitions and the related integration of acquired assets with our current operations;

•our ability to comply with current and future regulatory requirements;

•commercial and wholesale credit risks, including the availability of creditworthy customers and counterparties, and liquidity in the wholesale energy trading market;

•volatility of natural gas and other commodity prices and their impact on NJNG customer usage, NJNG’s BGSS incentive programs, Energy Services operations and our risk management efforts;

•the performance of our subsidiaries;

•access to adequate supplies of natural gas and dependence on third-party storage and transportation facilities for natural gas supply;

•the level and rate at which NJNG’s costs and expenses are incurred and the extent to which they are approved for recovery from customers through the regulatory process, including through future base rate case filings;

•impacts of inflation, including the current inflationary environment, and increased natural gas costs;

•the impact of a disallowance of recovery of environmental-related expenditures and other regulatory changes;

•operating risks incidental to handling, storing, transporting and providing customers with natural gas;

•demographic changes in our service territory and their effect on our customer growth;

•changes in rating agency requirements and/or credit ratings and their effect on availability and cost of capital to the Company;

•the impact of volatility in the equity and credit markets on our access to capital, including the risks, political and economic disruption and uncertainty related to Russia’s military invasion of Ukraine, and the international community’s responses;

•risks of prolonged constriction of credit availability in the markets and our ability to secure short-term financing;

•our ability to comply with debt covenants;

•the results of legal or administrative proceedings with respect to claims, rates, environmental issues, natural gas cost prudence reviews and other matters;

•risks related to cyberattacks or failure of information technology systems;

•the impact to the asset values and resulting higher costs and funding obligations of our pension and postemployment benefit plans as a result of potential downturns in the financial markets and/or reductions in bond yields;

•accounting effects and other risks associated with hedging activities and use of derivatives contracts;

•our ability to optimize our physical assets;

•weather and economic conditions, including those changes in weather and weather patterns that could be attributable to climate change;

•the costs of compliance with present and future environmental laws, potential climate change-related legislation or any legislation resulting from the 2019 New Jersey Energy Master Plan;

•uncertainties related to litigation, regulatory, administrative or environmental proceedings;

•changes to tax laws and regulations, including our ability to optimize those changes brought about by the passage of the Inflation Reduction Act;

•any potential need to record a valuation allowance for our deferred tax assets;

•the impact of natural disasters, terrorist activities, pandemic illness, war and other extreme events on our operations and customers;

•the delay or prevention of a favorable transaction due to change in control provisions or laws;

•risks related to our employee workforce and succession planning;

•risks associated with the management of our joint ventures and partnerships; and

•risks associated with keeping pace with technological change.

Forward-looking statements made in this report apply only as of the date of this report. While we periodically reassess material trends and uncertainties affecting our results of operations and financial condition in connection with the preparation of management's discussion and analysis of results of operations and financial condition contained in our Quarterly and Annual Reports on Form 10-Q and Form 10-K, respectively, we do not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.

New Jersey Resources Corporation

Part I

ITEM 1. FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)


	Three Months Ended				Nine Months Ended
	June 30,				June 30,
(Thousands, except per share data)	2023		2022		2023		2022
OPERATING REVENUES
Utility	$	144,971	$	199,357	$	902,880	$	937,266
Nonutility	119,104		352,978		728,789		1,203,227
Total operating revenues	264,075		552,335		1,631,669		2,140,493
OPERATING EXPENSES
Natural gas purchases:
Utility	42,344		100,277		381,160		435,438
Nonutility	75,917		290,806		468,351		980,135
Related parties	1,870		1,838		5,467		5,567
Operation and maintenance	94,213		88,373		272,809		243,143
Regulatory rider expenses	6,120		8,360		47,525		55,941
Depreciation and amortization	38,877		32,872		113,650		94,700
Total operating expenses	259,341		522,526		1,288,962		1,814,924
OPERATING INCOME	4,734		29,809		342,707		325,569
Other income, net	5,711		4,288		15,145		12,551
Interest expense, net of capitalized interest	30,119		21,411		89,871		59,814
(LOSS) INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES	(19,674)		12,686		267,981		278,306
Income tax (benefit) provision	(20,505)		4,434		43,059		64,051
Equity in earnings of affiliates	701		4,801		2,778		6,145
NET INCOME	$	1,532	$	13,053	$	227,700	$	220,400

EARNINGS PER COMMON SHARE
Basic	$0.02		$0.14		$2.35		$2.29
Diluted	$0.02		$0.14		$2.33		$2.28
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	97,168		96,154		96,849		96,055
Diluted	97,886		96,620		97,538		96,527

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)


	Three Months Ended				Nine Months Ended
	June 30,				June 30,
(Thousands)	2023		2022		2023		2022
Net income	$	1,532	$	13,053	$	227,700	$	220,400
Other comprehensive income, net of tax
Reclassifications of losses to net income on derivatives designated as hedging instruments, net of tax of $(79), $(79), $(238) and $(238), respectively	263		262		790		789

Adjustment to postemployment benefit obligation, net of tax of $(12), $(232), $(37) and $(697), respectively	41		768		123		2,302
Other comprehensive income, net of tax	$	304	$	1,030	$	913	$	3,091
Comprehensive income	$	1,836	$	14,083	$	228,613	$	223,491

See Notes to Unaudited Condensed Consolidated Financial Statements

New Jersey Resources Corporation

Part I

ITEM 1. FINANCIAL STATEMENTS (Continued)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)


	Nine Months Ended
	June 30,
(Thousands)	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	227,700	$	220,400
Adjustments to reconcile net income to cash flows from operating activities
Unrealized (gain) on derivative instruments	(30,502)		(58,060)



Depreciation and amortization	113,650		94,700
Amortization of acquired wholesale energy contracts	1,781		2,016
Allowance for equity used during construction	(5,054)		(9,197)
Allowance for doubtful accounts	1,397		1,768
Non cash lease expense	2,607		3,720
Deferred income taxes	11,026		37,547
Equivalent value of ITCs recognized on equipment financing	(1,232)		(1,060)
Manufactured gas plant remediation costs	(6,284)		(16,341)

Cost of removal - asset retirement obligations	(967)		(847)
Contributions to postemployment benefit plans	(1,133)		(2,702)
Taxes related to stock-based compensation	554		(164)
Changes in:
Components of working capital	22,229		(97,572)
Other noncurrent assets	(16,207)		(7,639)
Other noncurrent liabilities	68,333		69,308
Cash flows from operating activities	387,898		235,877
CASH FLOWS USED IN INVESTING ACTIVITIES
Expenditures for:
Utility plant	(248,507)		(177,559)
Solar equipment	(68,604)		(105,504)
Storage and Transportation and other	(34,384)		(130,170)
Cost of removal	(28,719)		(27,881)

Distribution from equity investees in excess of equity in earnings	2,036		690
Investments in equity investees, net of return of capital	—		5,479



Cash flows used in investing activities	(378,178)		(434,945)
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES
Proceeds from long-term debt	175,000		310,000
Payments of long-term debt	(15,698)		(14,223)
Proceeds from term loan	—		150,000
Payments of term loan	(150,000)		—
Payments of short-term debt, net	(128,725)		(156,950)
Proceeds from sale leaseback transactions - solar	163,619		3,300
Proceeds from sale leaseback transactions - natural gas meters	8,441		17,300
Payments of common stock dividends	(112,991)		(95,691)


Proceeds from waiver discount issuance of common stock	42,807		—
Proceeds from issuance of common stock - DRP	11,419		11,076

Tax withholding payments related to net settled stock compensation	(4,024)		(3,794)
Cash flows (used in) from financing activities	(10,152)		221,018
Change in cash, cash equivalents and restricted cash	(432)		21,950
Cash, cash equivalents and restricted cash at beginning of period	1,452		6,043
Cash, cash equivalents and restricted cash at end of period	$	1,020	$	27,993
CHANGES IN COMPONENTS OF WORKING CAPITAL
Receivables	$	103,954	$	(61,836)
Inventories	108,107		(12,672)
Recovery of natural gas costs	(20,106)		3,772
Natural gas purchases payable	(188,617)		33,362
Natural gas purchases payable - related parties	5		(6)
Deferred revenue, current	2,687		44,304
Accounts payable and other	(20,153)		(70,194)
Prepaid expenses	(2,454)		(1,219)
Prepaid and accrued taxes	24,684		18,770
Restricted broker margin accounts	22,868		(47,643)
Customers' credit balances and deposits	(2,979)		(10,370)
Other current assets (liabilities)	(5,767)		6,160
Total	$	22,229	$	(97,572)
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
Cash paid for:
Interest (net of amounts capitalized)	$	80,550	$	65,385
Income taxes	$	2,858	$	3,763
Accrued capital expenditures	$	21,008	$	40,833

See Notes to Unaudited Condensed Consolidated Financial Statements

New Jersey Resources Corporation

Part I

ITEM 1. FINANCIAL STATEMENTS (Continued)

CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS


	(Unaudited)
(Thousands)	June 30, 2023		September 30, 2022
PROPERTY, PLANT AND EQUIPMENT
Utility plant, at cost	$	3,742,373	$	3,576,691
Construction work in progress	235,998		162,087
Nonutility plant and equipment, at cost	1,745,135		1,577,259
Construction work in progress	126,923		199,679
Total property, plant and equipment	5,850,429		5,515,716
Accumulated depreciation and amortization, utility plant	(715,273)		(659,737)
Accumulated depreciation and amortization, nonutility plant and equipment	(242,346)		(206,053)
Property, plant and equipment, net	4,892,810		4,649,926
CURRENT ASSETS
Cash and cash equivalents	511		1,107
Customer accounts receivable
Billed	110,463		222,297
Unbilled revenues	16,492		13,769
Allowance for doubtful accounts	(12,504)		(19,379)
Regulatory assets	95,747		40,086
Natural gas in storage, at average cost	155,077		273,644
Materials and supplies, at average cost	30,784		20,324
Prepaid expenses	11,026		8,572
Prepaid and accrued taxes	36,165		54,501
Derivatives, at fair value	32,127		24,635
Restricted broker margin accounts	20,237		94,261

Other current assets	24,235		22,270
Total current assets	520,360		756,087
NONCURRENT ASSETS
Investments in equity method investees	104,427		106,571
Regulatory assets	528,114		500,666
Operating lease assets	164,119		168,520
Derivatives, at fair value	1,864		6,385

Intangible assets, net	567		2,348
Software costs	7,625		6,120
Deferred income taxes	25,539		2,928
Other noncurrent assets	67,155		61,865
Total noncurrent assets	899,410		855,403
Total assets	$	6,312,580	$	6,261,416

See Notes to Unaudited Condensed Consolidated Financial Statements

New Jersey Resources Corporation

Part I

ITEM 1. FINANCIAL STATEMENTS (Continued)

CAPITALIZATION AND LIABILITIES


	(Unaudited)
(Thousands, except share data)	June 30, 2023		September 30, 2022
CAPITALIZATION
Common stock, $2.50 par value; authorized 150,000,000 shares; outstanding shares June 30, 2023 — 97,496,302; September 30, 2022 — 96,249,859	$	243,237	$	241,616
Premium on common stock	554,730		519,697
Accumulated other comprehensive loss, net of tax	(3,913)		(4,826)
Treasury stock at cost and other; shares June 30, 2023 — 13,041; September 30, 2022 — 611,045	19,398		(6,805)
Retained earnings	1,181,790		1,067,528
Common stock equity	1,995,242		1,817,210
Long-term debt	2,728,669		2,485,402
Total capitalization	4,723,911		4,302,612
CURRENT LIABILITIES
Current maturities of long-term debt	162,316		75,069
Short-term debt	145,225		423,950
Natural gas purchases payable	46,432		235,049
Natural gas purchases payable to related parties	856		851
Deferred revenue	42,465		35,547
Accounts payable and other	122,236		156,580
Dividends payable	37,981		37,534
Accrued taxes	11,478		5,130
Regulatory liabilities	27,701		31,090
New Jersey Clean Energy Program	17,943		15,697
Derivatives, at fair value	17,563		49,848
Operating lease liabilities	5,273		4,562

Restricted broker margin accounts	1,218		—
Customers' credit balances and deposits	30,267		33,246
Total current liabilities	668,954		1,104,153
NONCURRENT LIABILITIES
Deferred income taxes	275,238		238,928
Deferred investment tax credits	2,504		2,710
Deferred revenue	30,872		753
Derivatives, at fair value	13,257		14,191
Manufactured gas plant remediation	123,070		127,060
Postemployment employee benefit liability	88,844		82,867
Regulatory liabilities	181,814		185,634
Operating lease liabilities	135,916		138,382
Asset retirement obligation	56,992		55,035
Other noncurrent liabilities	11,208		9,091
Total noncurrent liabilities	919,715		854,651
Commitments and contingent liabilities (Note 13)
Total capitalization and liabilities	$	6,312,580	$	6,261,416

See Notes to Unaudited Condensed Consolidated Financial Statements

New Jersey Resources Corporation

Part I

ITEM 1. FINANCIAL STATEMENTS (Continued)

CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY (Unaudited)


(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, 2022	96,250	$	241,616	$	519,697		$	(4,826)	$	(6,805)	$	1,067,528	$	1,817,210
Net income	—	—		—			—		—		115,921		115,921
Other comprehensive income	—	—		—			304		—		—		304
Common stock issued:

Incentive compensation plan	92	229		3,243			—		—		—		3,472
Dividend reinvestment plan	93	—		437			—		3,429		—		3,866
Waiver discount	368	—		4,469			—		13,450		—		17,919
Cash dividend declared ($.39 per share)	—	—		—			—		—		(37,665)		(37,665)
Treasury stock and other	—	—		—			—		1,768		—		1,768
Balance as of December 31, 2022	96,803	$	241,845	$	527,846		$	(4,522)	$	11,842	$	1,145,784	$	1,922,795
Net income	—	—		—			—		—		110,247		110,247
Other comprehensive income	—	—		—			305		—		—		305
Common stock issued:

Incentive compensation plan	29	74		1,096			—		—		—		1,170
Dividend reinvestment plan	77	—		877			—		2,794		—		3,671

Cash dividend declared ($.39 per share)	—	—		—			—		—		(37,791)		(37,791)
Treasury stock and other	(8)	—		—			—		439		—		439
Balance as of March 31, 2023	96,901	$	241,919	$	529,819		$	(4,217)	$	15,075	$	1,218,240	$	2,000,836
Net income	—	—		—			—		—		1,532		1,532
Other comprehensive income	—	—		—			304		—		—		304
Common stock issued:

Incentive compensation plan	3	7		112			—		—		—		119
Dividend reinvestment plan (1)	73	13		1,209			—		2,537		—		3,759
Waiver discount	519	1,298		23,590			—		—		—		24,888
Cash dividend declared ($.39 per share)	—	—		—			—		—		(37,982)		(37,982)
Treasury stock and other	—	—		—			—		1,786		—		1,786
Balance as of June 30, 2023	97,496	$	243,237	$	554,730		$	(3,913)	$	19,398	$	1,181,790	$	1,995,242

(1)Shares sold through the DRP issued from treasury stock are at average cost, which may differ from the actual market price paid.

New Jersey Resources Corporation

Part I

ITEM 1. FINANCIAL STATEMENTS (Continued)


(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, 2021	95,710	$	240,644	$	502,584		$	(34,528)	$	(12,448)	$	934,610	$	1,630,862
Net income	—	—		—			—		—		111,312		111,312
Other comprehensive income	—	—		—			1,030		—		—		1,030
Common stock issued:

Incentive compensation plan	147	367		7,135			—		—		—		7,502
Dividend reinvestment plan	105	263		3,415			—		—		—		3,678

Cash dividend declared ($.3625 per share)	—	—		—			—		—		(34,787)		(34,787)
Treasury stock and other	—	—		—			—		(2,619)		—		(2,619)
Balance as of December 31, 2021	95,962	$	241,274	$	513,134		$	(33,498)	$	(15,067)	$	1,011,135	$	1,716,978
Net income	—	—		—			—		—		96,035		96,035
Other comprehensive income	—	—		—			1,031		—		—		1,031
Common stock issued:
Incentive plan	36	91		1,216			—		—		—		1,307
Dividend reinvestment plan	91	228		3,493			—		—		—		3,721


Cash dividend declared ($.3625 per share)	—	—		—			—		—		(34,827)		(34,827)
Treasury stock and other	(7)	—		—			—		42		—		42
Balance as of March 31, 2022	96,082	$	241,593	$	517,843		$	(32,467)	$	(15,025)	$	1,072,343	$	1,784,287
Net income	—	—		—			—		—		13,053		13,053
Other comprehensive income	—	—		—			1,030		—		—		1,030
Common stock issued:
Incentive compensation plan	1	3		53			—		—		—		56
Dividend reinvestment plan	78	—		710			—		2,826		—		3,536