EX-99.1 2 ex99_1.htm EXHIBIT 99.1 ex99_1.htm

Exhibit 99.1
 
Logo 1

Date: December 1, 2009
Media Contact:
Michael Kinney
732-938-1031
mkinney@njresources.com
Investor Contact:
Dennis Puma
732-938-1229
dpuma@njresources.com

NEW JERSEY RESOURCES REPORTS 7.1 PERCENT INCREASE
IN FISCAL 2009 NET FINANCIAL EARNINGS PER SHARE;
INCREASES DIVIDEND NEARLY 10 PERCENT
Fiscal 2010 net financial earnings guidance announced

WALL, NJ – New Jersey Resources (NYSE:NJR) today reported fiscal 2009 net financial earnings per share rose 7.1 percent over the same period last year, increased its annual dividend 9.7 percent and announced its net financial earnings guidance for fiscal 2010.

A reconciliation of net income to net financial earnings for the fourth quarter and fiscal years 2009 and 2008 is provided below.

   
Three Months Ended
   
Twelve Months Ended
 
   
September 30,
   
September 30,
 
(Thousands)
 
2009
   
2008
   
2009
   
2008
 
Net (loss) income
  $ (18,863 )   $ 86,348     $ 27,242     $ 109,168  
Add:
                               
Unrealized (gain) loss on derivative instruments, net of taxes
    (303 )     (103,810 )     39,254       (6,028 )
Effects of economic hedging related to natural gas inventory, net of taxes
    13,984       1,058       34,474       (9,325 )
Net financial (loss) earnings
  $ (5,182 )   $ (16,404 )   $ 100,970     $ 93,815  
                                 
Weighted Average Shares Outstanding
                               
Basic
    41,953       42,044       42,119       41,878  
Diluted
    41,953       42,369       42,465       42,176  
                                 
Basic earnings per share
  $ (0.45 )   $ 2.05     $ 0.65     $ 2.61  
Basic net financial earnings per share
  $ (0.12 )   $ (0.39 )   $ 2.40     $ 2.24  

Net financial earnings is a financial measure not calculated in accordance with generally accepted accounting principles (GAAP) of the United States as it excludes all unrealized, and certain realized, gains and losses associated with derivative instruments. For further discussion of this financial measure, as well as a reconciliation to the most comparable GAAP measure, please see the explanation below under “Additional Non-GAAP Financial Information.”

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NEW JERSEY RESOURCES REPORTS 7.1 PERCENT INCREASE IN FISCAL 2009 NET FINANCIAL
EARNINGS PER SHARE; INCREASES DIVIDEND NEARLY 10 PERCENT
Page 2 of 11

§
Net Financial Earnings Per Share Increase 7.1 Percent
For fiscal 2009, NJR reported net financial earnings of $101 million, or $2.40 per share, compared with $93.8 million, or $2.24 per share, in fiscal 2008. During the fourth quarter of fiscal 2009, the company’s net financial losses were $(5.2) million compared with a loss of $(16.4) million in the same period last year. The company’s growth was led by strong results at New Jersey Natural Gas (NJNG).

“Guided by our sound business strategy, conservative financial practices and a team of dedicated employees, we overcame economic challenges to achieve an 18th consecutive year of net financial earnings growth,” said Laurence M. Downes, chairman and CEO of NJR. “Our objective is to achieve improved financial results again in fiscal 2010 and deliver the consistent performance our shareowners have come to expect.”

§
9.7 Percent Dividend Increase Approved
NJR also announced that its board of directors approved a 9.7 percent increase in the quarterly dividend rate to $.34 per share from $.31 per share. The new quarterly rate will be effective with the dividend payable January 4, 2010 to shareowners of record on December 15, 2009. The new annual dividend rate will be $1.36 per share.

“We remain committed to a strong dividend and financial profile,” said Downes. “Over the past three years, our average annual dividend increase has been 10.3 percent with a payout ratio that is well below our industry and peer averages. It continues to be our objective to execute a dividend strategy that is sustainable over the long term.”

NJR has increased its dividend in each of the past 15 years and has paid quarterly dividends continuously since its inception in 1952.

§
Share Repurchase Update
NJR purchased approximately 1.1 million shares of common stock under its share repurchase plan during fiscal 2009 and, as of September 30, 2009, had 324,771 shares remaining authorized to be repurchased. The plan authorizes NJR to purchase its shares on the open market or in negotiated transactions, based on market and other financial conditions. Since the plan began in September 1996, NJR has invested over $185 million to repurchase 6.4 million shares at a spilt-adjusted, average price of $28.83.

§
Fiscal 2010 Guidance Announced
Subject to the risks and uncertainties identified below under “Forward-Looking Statements,” NJR has established its fiscal 2010 net financial earnings guidance in a range of $2.45 to $2.60 per basic share. The company expects NJNG to be the major contributor to fiscal 2010 net financial earnings, accounting for 55 to 65 percent of the total. In addition, NJR estimates that the contribution from NJR Energy Services will be approximately 25 to 35 percent. Beginning in fiscal 2010, NJR will also report a new business segment, Midstream Assets, which will include the results of its Steckman Ridge and Iroquois equity investments. Midstream Assets are expected to contribute between 5 and 10 percent of total fiscal 2010 net financial earnings.

§
Strong Fiscal Year at New Jersey Natural Gas
Increased net income during fiscal 2009 at NJNG was due primarily to higher results from gas supply incentive programs, reduced interest costs as well as the impact of the base rate case, approved and implemented in October 2008, which helped enable the utility to meet its objective of providing safe, reliable service through system maintenance and enhancements. In fiscal 2009, net income at NJNG increased to $65.4 million, compared with $42.5 million in fiscal 2008.

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NEW JERSEY RESOURCES REPORTS 7.1 PERCENT INCREASE IN FISCAL 2009 NET FINANCIAL
EARNINGS PER SHARE; INCREASES DIVIDEND NEARLY 10 PERCENT
Page 3 of 11

Customer growth at NJNG in fiscal 2009 totaled 5,841 new customers representing a new customer growth rate of 1.2 percent. In addition, 709 existing customers converted to natural gas heat and other services in fiscal 2009. At September 30, 2009, NJNG served nearly 487,000 customers. In total, this growth is expected to contribute approximately $3.4 million annually to utility gross margin. (For information on utility gross margin, please see Non-GAAP Financial Information below.)

§
Fiscal 2010 Earnings Should Benefit from New Programs
Several regulatory milestones were achieved in fiscal 2009. NJNG filed and received approval for an Accelerated Infrastructure Program (AIP) as well as a series of energy-efficiency programs, collectively named The SAVEGREEN ProjectÔ, in response to the state’s request for energy programs to stimulate the state’s economy. Through AIP, NJNG will invest up to $70.8 million to expedite 14 previously planned capital improvement projects. The utility will be able to recognize a rate of return on its completed capital investment projects based on its currently authorized weighted average cost of capital of 7.76 percent. NJNG will spend approximately $40 million on AIP investments in fiscal 2010. The SAVEGREEN Project will offer special rebates and incentives to augment the energy-efficiency programs offered through New Jersey’s Clean Energy Program with an expected investment of approximately $15 million to be recovered over a 4-year period, including the previously mentioned weighted average cost of capital.

§
NJNG Conservation Incentive Program Continues
In accordance with the Conservation Incentive Program (CIP) Order issued by the New Jersey Board of Public Utilities (BPU) in October 2006, NJNG may continue its CIP for up to one additional year, through October 1, 2010, or until the issuance of a BPU order. The 3-year pilot program has eliminated the link between usage and gross margin recoveries, allowing NJNG to more aggressively and creatively encourage innovative efficiency and conservation efforts while maintaining its strong financial profile. Since the program’s inception, customers have saved approximately $135 million on their natural gas bills.

§
NJR Energy Services Contributes 31 Percent to Net Financial Earnings
NJRES recorded its third best year of profitability in its history, contributing 31 percent to NJR’s overall net financial earnings. In fiscal 2009, net financial earnings at NJRES were $31.2 million, compared with $47 million in fiscal 2008. Recent economic conditions resulted in reduced demand in the wholesale natural gas market during fiscal 2009, due primarily to the natural gas requirements associated with electric generation. Net financial earnings were also impacted by narrower winter storage spreads and less contracted transportation capacity in the Northeast.

§
Steckman Ridge Accepts Injections
Customers began injecting natural gas into the Steckman Ridge storage field during the spring of 2009 in preparation for withdrawals during the 2009-2010 winter heating season. A joint venture with Spectra Energy, Steckman Ridge is expected to contribute between 2 and 6 percent to NJR’s net financial earnings in fiscal 2010.

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NEW JERSEY RESOURCES REPORTS 7.1 PERCENT INCREASE IN FISCAL 2009 NET FINANCIAL
EARNINGS PER SHARE; INCREASES DIVIDEND NEARLY 10 PERCENT
Page 4 of 11

§
NJR Earns External Recognition
NJR was recognized as the eighth best energy company in America by Public Utilities Fortnightly magazine, an increase of two places over last year’s ranking. The company was also named one of the Best Places to Work in New Jersey by NJBIZ. Additionally, NJNG ranked first in the Eastern U.S. on the J.D. Power and Associates 2009 Gas Utility Residential Customer Satisfaction Study.
 
 
Webcast Information
NJR will host a live webcast to discuss its financial results today at 9 a.m. ET. A few minutes prior to the webcast, go to www.njliving.com and select “New Jersey Resources” from the top navigation bar. Choose “Investor Relations,” then click just below the microphone under the heading “Latest Webcast” on the Investor Relations home page.

Forward-Looking Statements
This news release contains forward-looking statements within the meaning of 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. Other factors that could cause actual results to differ materially from the company’s expectations include, but are not limited to, weather, economic conditions and demographic changes in NJNG’s service territory, NJR’s dependence on operating subsidiaries, rate of customer growth, volatility of natural gas and other commodity prices and its impact on customer usage and NJR Energy Services operations, changes in rating agency requirements and/or credit ratings and their effect on availability and cost of capital to the company, conditions in the credit markets and their potential impact on the company’s access to capital and borrowing costs, the ability to comply with debt covenants, increased interest costs resulting from failures in the market for auction rate securities, the impact of the company’s risk management efforts, including commercial and wholesale credit risks, changes in the costs of providing pension and post-employment benefits to current and former employees, the ability to maintain effective internal controls, accounting effects and other risks associated with hedging activities,  the company’s ability to obtain governmental approvals, property rights and/or financing for the construction, development and operation of its non-regulated energy investments, risks associated with the management of the company’s joint ventures and partnerships, the impact of regulation (including the regulation of rates), dependence on third-party storage and transportation facilities, operating risks, access to adequate supplies of natural gas, the regulatory and pricing policies of federal and state regulatory agencies, an adequate number of appropriate counterparties and sufficient liquidity in the energy trading market, the disallowance of recovery of environmental-related expenditures, environmental and other litigation and other uncertainties, and the impact of NJR’s charter and bylaws on potential transactions. NJR does not, by including this paragraph, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events. More detailed information about these factors is set forth under the heading “Risk Factors” in NJR’s filings with the Securities and Exchange Commission (SEC) including its most recent Form 10-K filed on November 30, 2009.

Non-GAAP Financial Information
This press release includes the non-GAAP measures net financial earnings (losses), 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 the company’s operating performance, these measures should not be considered an alternative to, or more meaningful than, operating income as determined in accordance with GAAP.

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NEW JERSEY RESOURCES REPORTS 7.1 PERCENT INCREASE IN FISCAL 2009 NET FINANCIAL
EARNINGS PER SHARE; INCREASES DIVIDEND NEARLY 10 PERCENT
Page 5 of 11

Net financial earnings (losses) and financial margin exclude unrealized gains or losses on derivative instruments related to the company’s unregulated subsidiaries and the effects of economically hedging the value of natural gas in storage at NJRES. Volatility associated with the change in value of these financial and physical commodity contracts is reported in the consolidated statements of income 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 as opposed to when the planned transaction ultimately is settled. NJNG’s utility gross margin represents the results of revenues less natural gas costs, sales and other taxes and regulatory rider expenses, which are key components of the company’s operations that move in relation to each other. Management uses these non-GAAP financial measures as supplemental measures to other GAAP results to provide a more complete understanding of the company’s performance. Management believes these non-GAAP measures are more reflective of the company’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 Form 10-K, Item 7.

About New Jersey Resources
New Jersey Resources, a Fortune 1000 company, provides reliable energy and natural gas services including transportation, distribution, and asset management in states from the Gulf Coast to the New England regions, including the Mid-Continent region, the West Coast and Canada, while investing in and maintaining an extensive infrastructure to support future growth. With over $2.5 billion in annual revenues, NJR safely and reliably operates and maintains 6,700 miles of natural gas transportation and distribution infrastructure to serve nearly half a million customers; develops and manages a diverse portfolio of more than 777,000 dth/d of transportation capacity and 52 Bcf of storage capacity; and provides appliance installation, repair and contract service to approximately 150,000 homes and businesses. Additionally, NJR holds investments in midstream assets through equity partnerships including Steckman Ridge and Iroquois. Through Conserve to Preserve®, NJR is helping customers save energy and money by promoting conservation and encouraging efficiency. For more information about NJR, visit www.njliving.com.

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Page 6 of 11
 
 
Reconciliation of Non-GAAP Performance Measures


NEW JERSEY RESOURCES
 
 
A reconciliation of Net income at NJR to net financial earnings, is as follows:

   
Three Months Ended
   
Twelve Months Ended
 
   
September 30,
   
September 30,
 
(Thousands)
 
2009
   
2008
   
2009
   
2008
 
Net (loss) income
  $ (18,863 )   $ 86,348     $ 27,242     $ 109,168  
Add:
                               
Unrealized (gain) loss on derivative instruments, net of taxes
    (303 )     (103,810 )     39,254       (6,028 )
Effects of economic hedging related to natural gas inventory, net of taxes
    13,984       1,058       34,474       (9,325 )
Net financial (loss) earnings
  $ (5,182 )   $ (16,404 )   $ 100,970     $ 93,815  
                                 
WEIGHTED AVERAGE SHARES OUTSTANDING
                               
BASIC
    41,953       42,044       42,119       41,878  
DILUTED
    41,953       42,369       42,465       42,176  
                                 
Basic net financial (loss) earnings per share
  $ (0.12 )   $ (0.39 )   $ 2.40     $ 2.24  



NJR ENERGY SERVICES
 
 
The following table is a computation of financial margin at NJRES:

   
Three Months Ended
   
Twelve Months Ended
 
   
September 30,
   
September 30,
 
(Thousands)
 
2009
   
2008
   
2009
   
2008
 
Operating revenues
  $ 279,446     $ 704,982     $ 1,498,742     $ 2,714,733  
Gas purchases
    307,573       514,103       1,537,634       2,577,667  
Add:
                               
Unrealized (gain) loss on derivative instruments
    (146 )     (195,520 )     47,631       (18,449 )
Effects of economic hedging related to natural gas inventory, net of taxes
    23,086       2,330       55,940       (14,528 )
Financial margin
  $ (5,187 )   $ (2,311 )   $ 64,679     $ 104,089  


A reconciliation of Operating income at NJRES, the closest GAAP financial measurement, to the financial margin is as follows:
 
   
Three Months Ended
   
Twelve Months Ended
 
   
September 30,
   
September 30,
 
(Thousands)
 
2009
   
2008
   
2009
   
2008
 
Operating (loss) income
  $ (32,042 )   $ 177,547     $ (57,139 )   $ 108,342  
Add:
                               
Operation and maintenance expense
    3,537       12,707       16,468       27,384  
Depreciation and amortization
    52       50       205       206  
Other taxes
    326       575       1,574       1,134  
Subtotal – Gross margin
    (28,127 )     190,879       (38,892 )     137,066  
Add:
                               
Unrealized (gain) loss on derivative instruments
    (146 )     (195,520 )     47,631       (18,449 )
Effects of economic hedging related to natural gas inventory, net of taxes
    23,086       2,330       55,940       (14,528 )
Financial margin
  $ (5,187 )   $ (2,311 )   $ 64,679     $ 104,089  

 
 

 
 
Page 7 of 11
 
 

NJR ENERGY SERVICES (continued)
 
 
A reconciliation of NJRES Net income to net financial earnings, is as follows:

   
Three Months Ended
   
Twelve Months Ended
 
   
September 30,
   
September 30,
 
(Thousands)
 
2009
   
2008
   
2009
   
2008
 
Net (loss) income
  $ (18,804 )   $ 107,812     $ (32,632 )   $ 67,166  
Add:
                               
Unrealized loss (gain) on derivative instruments, net of taxes
    22       (118,846 )     29,337       (10,838 )
Effects of economic hedging related to natural gas inventory, net of taxes
    13,984       1,058       34,474       (9,325 )
Net financial (loss) earnings
  $ (4,798 )   $ (9,976 )   $ 31,179     $ 47,003  



 
Retail and Other
 
 
A reconciliation of Retail and Other Net income to net financial earnings, is as follows:

   
Three Months Ended
   
Twelve Months Ended
 
   
September 30,
   
September 30,
 
(Thousands)
 
2009
   
2008
   
2009
   
2008
 
Net income (loss)
  $ 3,334     $ (12,956 )   $ (5,529 )   $ (477 )
Add:
                               
Unrealized (gain) loss on derivative instruments, net of taxes
    (325 )     15,036       9,917       4,810  
Net financial earnings
  $ 3,009     $ 2,080     $ 4,388     $ 4,333  

 
 

 

Page 8 of 11
 
 
NEW JERSEY RESOURCES
CONSOLIDATED STATEMENTS OF INCOME

   
Three Months Ended
   
Twelve Months Ended
 
   
September 30,
   
September 30,
 
(Thousands, except per share data)
 
2009
   
2008
   
2009
   
2008
 
OPERATING REVENUES
  $ 412,588     $ 827,088     $ 2,592,460     $ 3,816,210  
                                 
OPERATING EXPENSES
                               
Gas purchases
    385,674       613,995       2,245,169       3,330,756  
Operation and maintenance
    36,942       47,413       149,151       148,384  
Regulatory rider expenses
    4,407       3,787       44,992       39,666  
Depreciation and amortization
    7,579       9,864       30,328       38,464  
Energy and other taxes
    7,397       7,357       74,750       65,602  
Total operating expenses
    441,999       682,416       2,544,390       3,622,872  
OPERATING (LOSS) INCOME
    (29,411 )     144,672       48,070       193,338  
Other income
    1,314       1,063       4,409       4,368  
Interest expense, net of capitalized interest
    5,061       6,127       21,014       25,811  
(LOSS) INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES
    (33,158 )     139,608       31,465       171,895  
Income tax (benefit) provision
    (12,808 )     53,700       8,488       64,715  
Equity in earnings of affiliates, net of tax
    1,487       440       4,265       1,988  
NET (LOSS) INCOME
  $ (18,863 )   $ 86,348     $ 27,242     $ 109,168  
                                 
(LOSS) EARNINGS PER COMMON SHARE
                               
BASIC
  $ (0.45 )   $ 2.05     $ 0.65     $ 2.61  
DILUTED
  $ (0.45 )   $ 2.04     $ 0.64     $ 2.59  
                                 
DIVIDENDS PER COMMON SHARE
  $ 0.31     $ 0.28     $ 1.24     $ 1.11  
                                 
AVERAGE SHARES OUTSTANDING
                               
BASIC
    41,953       42,044       42,119       41,878  
DILUTED
    41,953       42,369       42,465       42,176  

 
 

 

Page 9 of 11
 
 
NEW JERSEY RESOURCES
 
   
Three Months Ended
   
Twelve Months Ended
 
   
September 30,
   
September 30,
 
(Thousands, except per share data)
 
2009
   
2008
   
2009
   
2008
 
Operating Revenues
                       
New Jersey Natural Gas
  $ 123,006     $ 138,135     $ 1,082,001     $ 1,078,824  
NJR Energy Services
    279,446       704,982       1,498,742       2,714,733  
Retail and Other
    10,180       (15,984 )     14,008       22,850  
Sub-total
    412,632       827,133       2,594,751       3,816,407  
Intercompany Eliminations
    (44 )     (45 )     (2,291 )     (197 )
Total
  $ 412,588     $ 827,088     $ 2,592,460     $ 3,816,210  
                                 
Operating (Loss) Income
                               
New Jersey Natural Gas
  $ (1,062 )   $ (10,229 )   $ 120,364     $ 88,136  
NJR Energy Services
    (32,042 )     177,547       (57,139 )     108,342  
Retail and Other
    3,592       (22,806 )     (15,440 )     (3,300 )
Sub-total
    (29,512 )     144,512       47,785       193,178  
Intercompany Eliminations
    101       160       285       160  
Total
  $ (29,411 )   $ 144,672     $ 48,070     $ 193,338  
                                 
Net (Loss) Income
                               
New Jersey Natural Gas
  $ (3,393 )   $ (8,508 )   $ 65,403     $ 42,479  
NJR Energy Services
    (18,804 )     107,812       (32,632 )     67,166  
Retail and Other
    3,334       (12,956 )     (5,529 )     (477 )
Total
  $ (18,863 )   $ 86,348     $ 27,242     $ 109,168  
                                 
Net Financial (Loss) Earnings
                               
New Jersey Natural Gas
  $ (3,393 )   $ (8,508 )   $ 65,403     $ 42,479  
NJR Energy Services
    (4,798 )     (9,976 )     31,179       47,003  
Retail and Other
    3,009       2,080       4,388       4,333  
Total
  $ (5,182 )   $ (16,404 )   $ 100,970     $ 93,815  
                                 
Throughput (Bcf)
                               
NJNG, Core Customers
    6.3       6.8       66.9       65.1  
NJNG, Off System/Capacity Management
    20.2       7.7       66.1       34.5  
NJRES Fuel Mgmt. and Wholesale Sales
    68.2       76.5       302.8       292.5  
Total
    94.7       91.0       435.8       392.1  
                                 
Common Stock Data
                               
Yield at September 30
    3.4 %     3.1 %     3.4 %     3.1 %
Market Price
                               
High
  $ 40.61     $ 41.13     $ 42.37     $ 41.13  
Low
  $ 35.64     $ 31.68     $ 21.90     $ 29.22  
Close at September 30
  $ 36.31     $ 35.89     $ 36.31     $ 35.89  
Shares Out. at September 30
    41,586       42,058       41,586       42,058  
Market Cap. at September 30
  $ 1,509,988     $ 1,509,462     $ 1,509,988     $ 1,509,462  

 
 

 

Page 10 of 11
 
 
NEW JERSEY NATURAL GAS
 
   
Three Months Ended
   
Twelve Months Ended
 
(Unaudited)
 
September 30,
   
September 30,
 
(Thousands, except customer & weather data)
 
2009
   
2008
   
2009
   
2008
 
Utility Gross Margin
                       
Operating revenues
  $ 123,006     $ 138,135     $ 1,082,001     $ 1,078,824  
Less:
                               
Gas purchases
    78,194       100,053       709,906       753,249  
Energy and other taxes
    5,560       5,402       66,768       58,539  
Regulatory rider expense
    4,407       3,787       44,992       39,666  
Total Utility Gross Margin
  $ 34,845     $ 28,893     $ 260,335     $ 227,370  
                                 
Utility Gross Margin and Operating Income
                               
Residential
  $ 20,274     $ 16,640     $ 170,509     $ 154,307  
Commercial, Industrial & Other
    7,369       5,025       47,767       45,503  
Firm Transportation
    4,845       4,284       29,683       19,722  
Total Firm Margin
    32,488       25,949       247,959       219,532  
Interruptible
    83       124       319       482  
Total System Margin
    32,571       26,073       248,278       220,014  
Off System/Capacity Management/FRM/Storage Incentive
    2,274       2,820       12,057       7,656  
BPU Settlement
    -       -       -       (300 )
Total Utility Gross Margin
    34,845       28,893       260,335       227,370  
Operation and maintenance expense
    27,677       28,618       106,814       98,035  
Depreciation and amortization
    7,297       9,670       29,417       37,723  
Other taxes not reflected in gross margin
    933       834       3,740       3,476  
Operating (Loss) Income
  $ (1,062 )   $ (10,229 )   $ 120,364     $ 88,136  
                                 
Throughput (Bcf)
                               
Residential
    3.1       3.0       43.6       40.8  
Commercial, Industrial & Other
    0.7       0.7       9.8       9.0  
Firm Transportation
    1.0       0.9       9.4       8.9  
Total Firm Throughput
    4.8       4.6       62.8       58.7  
Interruptible
    1.5       2.2       4.1       6.4  
Total System Throughput
    6.3       6.8       66.9       65.1  
Off System/Capacity Management
    20.2       7.7       66.1       34.5  
Total Throughput
    26.5       14.5       133.0       99.6  
                                 
Customers
                               
Residential
    437,793       437,655       437,793       437,655  
Commercial, Industrial & Other
    27,771       29,002       27,771       29,002  
Firm Transportation
    20,965       16,830       20,965       16,830  
Total Firm Customers
    486,529       483,487       486,529       483,487  
Interruptible
    45       46       45       46  
Total System Customers
    486,574       483,533       486,574       483,533  
Off System/Capacity Management*
    36       27       36       27  
Total Customers
    486,610       483,560       486,610       483,560  
*The number of customers represents those active during the last month of the period.
                               
Degree Days
                               
Actual
    38       21       4,791       4,399  
Normal
    42       42       4,749       4,817  
Percent of Normal
    90.5 %     50.0 %     100.9 %     91.3 %
                                 

 
 

 

Page 11 of 11
 
 
NJR ENERGY SERVICES
 
   
Three Months Ended
   
Twelve Months Ended
 
(Unaudited)
 
September 30,
   
September 30,
 
(Thousands, except customer)
 
2009
   
2008
   
2009
   
2008
 
Operating Revenues
  $ 279,446     $ 704,982     $ 1,498,742     $ 2,714,733  
Gas Purchases
    307,573       514,103       1,537,634       2,577,667  
Gross Margin
    (28,127 )     190,879       (38,892 )     137,066  
Operation and maintenance expense
    3,537       12,707       16,468       27,384  
Depreciation and amortization
    52       50       205       206  
Energy and other taxes
    326       575       1,574       1,134  
Operating (Loss) Income
  $ (32,042 )   $ 177,547     $ (57,139 )   $ 108,342  
                                 
Net (Loss) Income
  $ (18,804 )   $ 107,812     $ (32,632 )   $ 67,166  
                                 
Financial Margin
  $ (5,187 )   $ (2,311 )   $ 64,679     $ 104,089  
                                 
Net Financial (Loss) Earnings
  $ (4,798 )   $ (9,976 )   $ 31,179     $ 47,003  
                                 
Gas Sold and Managed (Bcf)
    68.2       76.5       302.8       292.5  
                                 
                                 
RETAIL AND OTHER
                               
                                 
Operating Revenues
  $ 10,180     $ (15,984 )   $ 14,008     $ 22,850  
                                 
Operating Income (Loss)
  $ 3,592     $ (22,806 )   $ (15,440 )   $ (3,300 )
                                 
Net Income (Loss)
  $ 3,334     $ (12,956 )   $ (5,529 )   $ (477 )
                                 
Net Financial Earnings
  $ 3,009     $ 2,080     $ 4,388     $ 4,333  
                                 
Total Customers at September 30
    149,798       149,268       149,798       149,268  
                                 


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