New Jersey Resources Corporation (NJR) Earnings

Management highlights

### Regulatory & Business Milestones - Received the required FERC certificate for the Leaf River S&T capacity expansion project ahead of schedule, marking a key regulatory milestone that keeps the development timeline on track. - New Jersey Natural Gas filed a cohesive base rate and gas supply adjustment package with the New Jersey Board of Public Utilities (BPU) on June 1, designed to deliver customer bill relief ahead of the 2026 winter while supporting long-term safety and reliability investments. The filing targets nearly flat overall customer bills after full implementation. Capital Deployment Strategy - Year-to-date capital deployment totaled $630 million, with two-thirds allocated to New Jersey Natural Gas for core infrastructure improvements focused on safety, reliability and system resiliency. - CEV maintains a deep, flexible pipeline of clean energy investment opportunities, including new development and optimization of existing sites, allowing disciplined capital deployment aligned with market conditions and return targets. CEV continues to add in-service capacity and scale its portfolio as planned, focused on maximizing value from existing interconnections. - The 5-year capital plan through fiscal 2030 is reaffirmed at $4.8 to $5.2 billion, supporting the company's long-term 7-9% net financial earnings per share growth target while maintaining strong credit metrics. Operational Performance - NJR successfully operated through recent extreme weather events (winter storms and summer extreme heat), demonstrating the reliability of its infrastructure and the commitment of its workforce to customer safety.

Guidance

- Management tightened the fiscal 2026 net financial earnings per share (NFPS) guidance range to $3.52 to $3.62 per share, narrowing the range and increasing the midpoint, reflecting stronger-than-expected year-to-date performance and greater full-year earnings visibility. - Fiscal 2026 total capital investment guidance was increased to a range of $815 million to $950 million, up from the prior range of $775 million to $930 million, driven by additional safety and reliability investment at the New Jersey Natural Gas utility segment. CEV's capital investment range remains unchanged. - Fiscal 2027 capital estimates are unchanged, and the 5-year capex outlook through fiscal 2030 is maintained at $4.8 to $5.2 billion. The long-term 7-9% annual NFPS growth target is also reaffirmed. - Full fiscal 2027 guidance and updated segment contribution outlooks will be released in November, in line with the company's annual scheduling practice.

Segment performance

Consolidated net financial earnings for Q3 fiscal 2026 were $11.3 million ($0.11 per share), up from $6.2 million ($0.06 per share) in Q3 fiscal 2025. Improved contributions were reported across all three business segments: 1) New Jersey Natural Gas: The utility business accounts for roughly two-thirds of total annual capital spend (approximately $420 to $633 million of the total $815 to $950 million 2026 capex plan) and is the core anchor of the company's long-term earnings growth. 2) Storage and Transportation (S&T): Reported continued earnings uplift driven by favorable recontracting activity, which provides strong near-term earnings visibility. Management expects S&T earnings to double from fiscal 2025 to fiscal 2027 as the Leaf River capacity expansion progresses. 3) Clean Energy Ventures (CEV): Higher earnings in Q3 2026 from newly placed-in-service projects. Year-to-date net losses at CEV reflect the absence of a prior-year one-time gain from the sale of the residential solar business, not underlying operational weakness. No changes were made to CEV's planned capital investment range for 2026.

Risks & headwinds

Management noted that forward-looking statements are inherently uncertain, and actual results could differ materially from expectations due to factors beyond the company's control, including regulatory outcomes, evolving energy policy and market conditions, and changes to clean energy market structures. No specific material operational failures or new unanticipated risks were disclosed during the call.

Analyst Q&A

• Q: How should investors contextualize NJR's recent rate filing against the backdrop of New Jersey's affordability focus and new climate-related energy legislation, and what should we expect from the process? /

  A: NJR intentionally structured its June 2025 filing as a combined package of base rate and gas supply adjustments to prioritize customer affordability, with a goal of nearly flat customer bills after implementation. To date, the regulatory process has proceeded normally, consistent with past rate cases, and management expects it to continue on a standard cycle. NJR emphasizes that natural gas remains the lowest-cost home heating option for New Jersey customers.

• Q: When will NJR update fiscal 2027 guidance, and what growth trajectory should we expect? /

  A: Full fiscal 2027 guidance will be released in November, in line with the company's annual process. The long-term 7-9% annual NFPS growth target, which is based on compounding from the prior year's starting base (fiscal 2025's base was $2.73 per share), remains unchanged, and this framework will continue to apply to the new guidance.

• Q: What is the outlook for further S&T expansion beyond the current Leaf River project, and what demand and pricing trends are you seeing for incremental capacity? /

  A: There is strong market demand for S&T midstream services, which is visible in current recontracting rate increases. While no further expansions are included in the current capital plan, management expects continued organic investment in S&T assets over time, including potential expansions at Delta Gateway and compression additions, given the high value of these assets in the current market. More detail on future plans will be provided in the November guidance update.

• Q: How will ongoing debates around capacity markets, interconnection reform and resource adequacy impact CEV's project pipeline and returns, and when will we see more clarity on potential opportunities? /

  A: CEV is well positioned to capitalize on growing demand for new clean energy capacity by leveraging excess capacity on its existing interconnections and infrastructure, which allows for lower-cost development than new greenfield builds. Management confirms strong market interest in these opportunities, and is actively evaluating potential projects to ensure they meet required return and risk thresholds. Additional details may be shared in the November guidance update, but management could not confirm a firm timeline for announcing new investments at this time.