NEW JERSEY RESOURCES CORP [NJR] Filings

10-Q 1 njr-20240630.htm 10-Q JUNE 30, 2024 njr-20240630

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, 2024

☐ 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 August 2, 2024 was 99,167,564.

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	23
		Note 7. Investments in Equity Investees	25
		Note 8. Earnings Per Share	25
		Note 9. Debt	26
		Note 10. Employee Benefit Plans	27
		Note 11. Income Taxes	27
		Note 12. Leases	28
		Note 13. Commitments and Contingent Liabilities	30

		Note 14. Reporting Segment and Other Operations Data	31
		Note 15. Related Party Transactions	34

	ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	36
		Natural Gas Distribution Segment	39
		Clean Energy Ventures Segment	47
		Energy Services Segment	49
		Storage and Transportation Segment	54
		Home Services and Other Business Operations	55
		Liquidity and Capital Resources	56
	ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	62
	ITEM 4.	Controls and Procedures	64
PART II. OTHER INFORMATION
	ITEM 1.	Legal Proceedings	66
	ITEM 1A.	Risk Factors	66
	ITEM 2.	Unregistered Sale of Equity Securities and Use of Proceeds	66
	ITEM 5.	Other Information	66
	ITEM 6.	Exhibits	67
		Signatures	68

New Jersey Resources Corporation

GLOSSARY OF KEY TERMS


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

DRP			NJR Direct Stock Purchase and Dividend Reinvestment Plan

Energy Services or ES			NJR Energy Services Company, LLC or our 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 or HSO			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
M			Million
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
NFE			Net Financial Earnings
NJCEP			New Jersey's Clean Energy Program
NJDEP			New Jersey Department of Environmental Protection
NJNG			New Jersey Natural Gas Company or our Natural Gas Distribution segment
NJNG Credit Facility			The $250M unsecured committed credit facility expiring in September 2027

New Jersey Resources Corporation


GLOSSARY OF KEY TERMS (cont.)

NJR Credit Facility			The $650M unsecured committed credit facility expiring in September 2027
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 expenses
OPEB			Other Postemployment Benefit Plans

PPA			Power Purchase Agreement
RAC			Remediation Adjustment Clause
REC			Renewable Energy Certificate
SAVEGREEN			The SAVEGREEN Project®
SBC			Societal Benefits Charge
SG&A			Selling, General and Administrative expenses

SREC			Solar Renewable Energy Certificate
Steckman Ridge			Collectively, Steckman Ridge GP, LLC and Steckman Ridge, LP
Storage and Transportation or S&T			Storage and Transportation segment
TETCO			Texas Eastern Transmission

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,” “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 2024 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, 2023, as well as the following, which are neither presented in order of importance nor weighted:

•our ability to obtain governmental and regulatory approvals, permits, certificates, 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 S&T infrastructure projects, in a timely manner;

•our ability to address concerns over long-term climate change;

•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;

•risks associated with our pipeline of projects and timely completion of such projects;

•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, ES operations and our risk management efforts;

•the performance of our subsidiaries;

•access to adequate supplies of natural gas and dependence on third-party S&T 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 events causing volatility in the equity and credit markets on our access to capital, including natural disasters, pandemic illness and other extreme events and risks, political and economic disruption and uncertainty related to international conflicts, 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, including ransomware, terrorism, other malicious acts against, 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, including, but not limited to, inflationary pressures, recessionary pressures, or rising interest rates, 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, as well as future executive orders and the outcomes of regulatory proceedings concerning natural gas;

•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 of 2022;

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

•the delay or prevention of a favorable transaction due to changes 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, including, but not limited to, cloud computing and generative artificial intelligence.

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)	2024		2023		2024		2023
OPERATING REVENUES
Utility	$	157,773	$	144,971	$	913,729	$	902,880
Nonutility	117,863		119,104		487,030		728,789
Total operating revenues	275,636		264,075		1,400,759		1,631,669
OPERATING EXPENSES
Natural gas purchases:
Utility	53,372		42,344		373,839		381,160
Nonutility	60,971		75,917		225,466		468,351
Related parties	1,729		1,870		5,407		5,467
Operation and maintenance	104,378		94,213		306,040		272,809
Regulatory rider expenses	8,343		6,120		56,761		47,525
Depreciation and amortization	40,907		38,877		121,269		113,650
Total operating expenses	269,700		259,341		1,088,782		1,288,962
OPERATING INCOME	5,936		4,734		311,977		342,707
Other income, net	9,555		5,711		31,316		15,145
Interest expense, net of capitalized interest	31,169		30,119		94,263		89,871
(LOSS) INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES	(15,678)		(19,674)		249,030		267,981
Income tax (benefit) provision	(2,764)		(20,505)		54,119		43,059
Equity in earnings of affiliates	1,340		701		3,738		2,778
NET (LOSS) INCOME	$	(11,574)	$	1,532	$	198,649	$	227,700

(LOSS) EARNINGS PER COMMON SHARE
Basic	$(0.12)		$0.02		$2.02		$2.35
Diluted	$(0.12)		$0.02		$2.00		$2.33
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	98,983		97,168		98,409		96,849
Diluted	98,983		97,886		99,213		97,538

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited)


	Three Months Ended				Nine Months Ended
	June 30,				June 30,
(Thousands)	2024		2023		2024		2023
Net (loss) income	$	(11,574)	$	1,532	$	198,649	$	227,700
Other comprehensive (loss) 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	264		263		790		790

Adjustment to postemployment benefit obligation, net of tax of $112, $(12), $(2,836) and $(37), respectively	(369)		41		9,386		123
Other comprehensive (loss) income, net of tax	$	(105)	$	304	$	10,176	$	913
Comprehensive (loss) income	$	(11,679)	$	1,836	$	208,825	$	228,613

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)	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	198,649	$	227,700
Adjustments to reconcile net income to cash flows from operating activities
Unrealized loss (gain) on derivative instruments	23,860		(30,502)



Depreciation and amortization	121,269		113,650
Amortization of acquired wholesale energy contracts	187		1,781
Allowance for equity used during construction	(5,368)		(5,054)
Allowance for doubtful accounts	1,849		1,397
Non cash lease expense	3,611		2,607
Deferred income taxes	49,598		11,026
Equivalent value of ITCs recognized on equipment financing	(12,600)		(1,232)
Manufactured gas plant remediation costs	(19,464)		(6,284)

Cost of removal - asset retirement obligations	(1,145)		(967)
Contributions to postemployment benefit plans	(2,438)		(1,133)
Taxes related to stock-based compensation	1,186		554
Changes in:
Components of working capital	21,519		22,229


Other noncurrent assets and liabilities	(17,819)		52,126
Cash flows from operating activities	362,894		387,898
CASH FLOWS USED IN INVESTING ACTIVITIES
Expenditures for:
Utility plant	(259,125)		(248,507)
Solar equipment	(74,096)		(68,604)
Storage and Transportation and other	(33,013)		(34,384)
Cost of removal	(29,552)		(28,719)

Distribution from equity investees in excess of equity in earnings	3,202		2,036




Cash flows used in investing activities	(392,584)		(378,178)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Proceeds from long-term debt	175,000		175,000
Payments of long-term debt	(89,555)		(15,698)

Payments of term loan	—		(150,000)
Proceeds from (payments of) short-term debt, net	2,700		(128,725)
Proceeds from sale leaseback transactions - solar	24,394		163,619
Proceeds from sale leaseback transactions - natural gas meters	8,814		8,441
Payments of common stock dividends	(123,446)		(112,991)


Proceeds from waiver discount issuance of common stock	47,286		42,807
Proceeds from issuance of common stock - DRP	11,141		11,419

Tax withholding payments related to net settled stock compensation	(5,027)		(4,024)
Cash flows from (used in) financing activities	51,307		(10,152)
Change in cash, cash equivalents and restricted cash	21,617		(432)
Cash, cash equivalents and restricted cash at beginning of period	1,517		1,452
Cash, cash equivalents and restricted cash at end of period	$	23,134	$	1,020
CHANGES IN COMPONENTS OF WORKING CAPITAL
Receivables	$	(34,335)	$	103,954
Inventories	62,644		108,107
Recovery of natural gas costs	(3,206)		(20,106)
Natural gas purchases payable	2,094		(188,617)
Natural gas purchases payable - related parties	16		5
Deferred revenue, current	38,162		2,687
Accounts payable and other	(1,683)		(20,153)
Prepaid expenses	(3,902)		(2,454)
Prepaid and accrued taxes	(13,310)		24,684
Restricted broker margin accounts	(220)		22,868
Customers' credit balances and deposits	(16,029)		(2,979)
Other current assets and liabilities	(8,712)		(5,767)
Total	$	21,519	$	22,229
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
Cash paid for:
Interest (net of amounts capitalized)	$	90,006	$	80,550
Income taxes	$	13,042	$	2,858
Accrued capital expenditures	$	21,122	$	21,008

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, 2024		September 30, 2023
PROPERTY, PLANT AND EQUIPMENT
Utility plant, at cost	$	4,132,835	$	3,843,037
Construction work in progress	203,460		237,428
Nonutility plant and equipment, at cost	1,804,670		1,767,306
Construction work in progress	205,979		142,768
Total property, plant and equipment	6,346,944		5,990,539
Accumulated depreciation and amortization, utility plant	(770,867)		(714,087)
Accumulated depreciation and amortization, nonutility plant and equipment	(291,143)		(254,397)
Property, plant and equipment, net	5,284,934		5,022,055
CURRENT ASSETS
Cash and cash equivalents	22,399		954
Customer accounts receivable
Billed	128,264		97,540
Unbilled revenues	20,564		19,100
Allowance for doubtful accounts	(10,738)		(11,036)
Regulatory assets	89,572		73,587
Natural gas in storage, at average cost	132,244		199,501
Materials and supplies, at average cost	31,635		27,022
Prepaid expenses	13,643		9,741
Prepaid taxes	54,880		43,046
Derivatives, at fair value	4,771		30,755
Restricted broker margin accounts	18,894		20,796

Other current assets	28,266		21,071
Total current assets	534,394		532,077
NONCURRENT ASSETS
Investments in equity method investees	100,824		104,134
Regulatory assets	557,280		584,830
Operating lease assets	185,506		175,740
Derivatives, at fair value	979		1,564

Software costs	10,254		8,375
Deferred income taxes	22,575		28,383
Postemployment employee benefit assets	18,585		18,684
Other noncurrent assets	68,790		61,654
Total noncurrent assets	964,793		983,364
Total assets	$	6,784,121	$	6,537,496

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, 2024		September 30, 2023
CAPITALIZATION
Common stock, $2.50 par value; authorized 150,000,000 shares; outstanding shares June 30, 2024 — 99,091,574; September 30, 2023 — 97,584,455	$	247,234	$	243,458
Premium on common stock	618,140		558,654
Accumulated other comprehensive income (loss), net of tax	217		(9,959)
Treasury stock at cost and other; shares June 30, 2024 — 16,302; September 30, 2023 — 13,041	25,027		20,748
Retained earnings	1,252,400		1,177,834
Common stock equity	2,143,018		1,990,735
Long-term debt	2,793,672		2,768,017
Total capitalization	4,936,690		4,758,752
CURRENT LIABILITIES
Current maturities of long-term debt	197,448		116,155
Short-term debt	254,800		252,100
Natural gas purchases payable	53,371		51,277
Natural gas purchases payable to related parties	875		859
Deferred revenue	99,566		61,404
Accounts payable and other	144,579		151,790
Dividends payable	41,618		40,981
Accrued taxes	8,614		10,090
Regulatory liabilities	31,573		32,287
New Jersey Clean Energy Program	20,265		15,804
Derivatives, at fair value	7,632		16,145
Operating lease liabilities	5,125		4,772

Restricted broker margin accounts	—		8,029
Customers' credit balances and deposits	28,881		44,910
Total current liabilities	894,347		806,603
NONCURRENT LIABILITIES
Deferred income taxes	331,829		285,427
Deferred investment tax credits	2,226		2,434
Deferred revenue	588		659
Derivatives, at fair value	11,962		7,967
Manufactured gas plant remediation	153,818		169,390
Postemployment employee benefit liability	42,308		102,528
Regulatory liabilities	176,720		180,458
Operating lease liabilities	159,988		148,023
Asset retirement obligations	63,245		61,993
Other noncurrent liabilities	10,400		13,262
Total noncurrent liabilities	953,084		972,141
Commitments and contingent liabilities (Note 13)
Total capitalization and liabilities	$	6,784,121	$	6,537,496

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, 2023	97,584	$	243,458	$	558,654		$	(9,959)	$	20,748	$	1,177,834	$	1,990,735
Net income	—	—		—			—		—		89,411		89,411
Other comprehensive income	—	—		—			395		—		—		395
Common stock issued:

Incentive compensation plan	116	290		3,451			—		—		—		3,741
Dividend reinvestment plan	94	236		3,552			—		—		—		3,788
Waiver discount	410	1,025		16,894			—		—		—		17,919
Cash dividend declared ($.42 per share)	—	—		—			—		—		(41,176)		(41,176)
Treasury stock and other	(2)	—		—			—		1,388		—		1,388
Balance as of December 31, 2023	98,202	$	245,009	$	582,551		$	(9,564)	$	22,136	$	1,226,069	$	2,066,201
Net income	—	—		—			—		—		120,812		120,812
Other comprehensive income	—	—		—			9,886		—		—		9,886
Common stock issued:

Incentive compensation plan	25	64		1,178			—		—		—		1,242
Dividend reinvestment plan	84	209		3,446			—		—		—		3,655
Waiver discount	435	1,085		16,834			—		—		—		17,919
Cash dividend declared ($.42 per share)	—	—		—			—		—		(41,290)		(41,290)
Treasury stock and other	(1)	—		—			—		800		—		800
Balance as of March 31, 2024	98,745	$	246,367	$	604,009		$	322	$	22,936	$	1,305,591	$	2,179,225
Net loss	—	—		—			—		—		(11,574)		(11,574)
Other comprehensive loss	—	—		—			(105)		—		—		(105)
Common stock issued:


Dividend reinvestment plan (1)	85	212		3,338			—		—		—		3,550
Waiver discount	262	655		10,793			—		—		—		11,448
Cash dividend declared ($.42 per share)	—	—		—			—		—		(41,617)		(41,617)
Treasury stock and other	—	—		—			—		2,091		—		2,091
Balance as of June 30, 2024	99,092	$	247,234	$	618,140		$	217	$	25,027	$	1,252,400	$	2,143,018

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, 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 (1)	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 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	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)Certain 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 Corpo