New Jersey Resources Increases Fiscal 2014 Net Financial Earnings Guidance

  New Jersey Resources Increases Fiscal 2014 Net Financial Earnings Guidance

          Issues Guidance for the Remaining Quarters of Fiscal 2014

Business Wire

WALL, N.J. -- July 16, 2014

New Jersey Resources (NYSE:NJR) today announced an increase in its fiscal 2014
net financial earnings (NFE) guidance to a range of $4.00 to $4.20 per basic
share, from the previously announced range of $3.90 to $4.10 per basic share,
subject to the risks and uncertainties identified below under “Forward-Looking
Statements.”

The increase in guidance is due primarily to continued better-than-anticipated
results at NJR Energy Services (NJRES), the company’s wholesale provider of
physical natural gas services and customized energy solutions, and strong
results at its regulated utility, New Jersey Natural Gas (NJNG).

“This year we’ve seen a significant increase in the demand for natural gas in
regions affected by extreme weather conditions across the United States,” said
Laurence M. Downes, chairman and CEO of New Jersey Resources. “In this
high-demand environment, NJR Energy Services has continued to successfully
meet the needs of its diverse customer base, which includes power generators,
distribution companies, pipeline companies and industrial customers.”

Fiscal 2014 results at NJNG have been driven by higher utility gross margin
from customer additions, incentive programs and regulatory initiatives, as
well as the continued impact of accelerated infrastructure investments.

  *Third and Fourth Quarter 2014 Net Financial Earnings Guidance

NJR expects NFE per share of between $0.05 and $0.15 in the third quarter of
fiscal 2014 and estimates a NFE loss of between $0.50 and $0.60 per share in
the fourth quarter of fiscal 2014. The forecasted loss in the fourth quarter
is due to the seasonal nature of NJRES and NJNG’s businesses and higher
discretionary expenses, including the estimated impact of a voluntary early
retirement program.

The following chart represents the NFE contributions NJR currently expects
from its businesses in fiscal 2014:

Company                     Expected Fiscal 2014
                              Net Financial Earnings Contribution
New Jersey Natural Gas      40 to 50 percent
NJR Midstream               3 to 10 percent
Total Regulated             43 to 60 percent
NJR Energy Services         35 to 45 percent
NJR Clean Energy Ventures   5 to 15 percent
NJR Home Services           2 to 5 percent
                           

The chart below represents NJR’s projected NFE contributions from its
businesses in fiscal 2015:

Company                     Expected Fiscal 2015
                              Net Financial Earnings Contribution
New Jersey Natural Gas      60 to 70 percent
NJR Midstream               5 to 10 percent
Total Regulated             65 to 80 percent
NJR Energy Services         5 to 15 percent
NJR Clean Energy Ventures   10 to 20 percent
NJR Home Services           2 to 5 percent
                           

NJR will host a live webcast to announce its fiscal 2014 third-quarter
earnings on Thursday, July 31, 2014 at 10 a.m. ET. A few minutes prior to the
webcast, go to njresources.com and select “Investor Relations.” Scroll down
and click “Investor Information” on the left side of the page and select
“Events & Presentations” then click on the webcast link.

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. Words such as “anticipates,” “estimates,” “expects,” “projects,”
“may,” “will,” “intends,” “plans,” “believes,” “should” and similar
expressions may identify forward-looking information and such forward-looking
statements are made based upon management’s current expectations and beliefs
as of this date concerning future developments and their potential effect upon
NJR. There can be no assurance that future developments will be in accordance
with management’s expectations or that the effect of future developments on
NJR will be those anticipated by management. Forward-looking information in
this release includes, but is not limited to, certain statements regarding
NJR's NFE for fiscal 2014, including the third and fourth fiscal quarters of
fiscal 2014, and the forecasted contribution of business segments to fiscal
2014 NFE and fiscal 2015 NFE.

The factors that could cause actual results to differ materially from NJR’s
expectations include, but are not limited to, weather and economic conditions;
demographic changes in the NJNG service territory and their effect on NJNG's
customer growth; volatility of natural gas and other commodity prices and
their impact on NJNG customer usage, NJNG's BGSS incentive programs, NJRES'
operations and on the Company's risk management efforts; 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 credit markets
on our access to capital; the ability to comply with debt covenants; the
impact to the asset values and resulting higher costs and funding obligations
of NJR's pension and post employment benefit plans as a result of downturns in
the financial markets, a lower discount rate, and impacts associated with the
Patient Protection and Affordable Care Act; accounting effects and other risks
associated with hedging activities and use of derivatives contracts;
commercial and wholesale credit risks, including the availability of
creditworthy customers and counterparties and liquidity in the wholesale
energy trading market; the ability to obtain governmental approvals and/or
financing for the construction, development and operation of certain
non-regulated energy investments; risks associated with the management of the
Company's joint ventures and partnerships; risks associated with our
investments in renewable energy projects and our investments in an onshore
wind developer, including the availability of regulatory and tax incentives,
logistical risks and potential delays related to construction, permitting,
regulatory approvals and electric grid interconnection, the availability of
viable projects and NJR's eligibility for ITCs and PTCs, the future market for
SRECs and operational risks related to projects in service; timing of
qualifying for ITCs due to delays or failures to complete planned renewable
energy projects and the resulting effect on our effective tax rate and
earnings; regulatory approval of NJNG’s planned infrastructure programs; the
level and rate at which NJNG's costs and expenses (including those related to
restoration efforts resulting from Superstorm Sandy) are incurred and the
extent to which they are allowed to be recovered from customers through the
regulatory process; access to adequate supplies of natural gas and dependence
on third-party storage and transportation facilities for natural gas supply;
operating risks incidental to handling, storing, transporting and providing
customers with natural gas; risks related to our employee workforce, including
a work stoppage; the regulatory and pricing policies of federal and state
regulatory agencies; the possible expiration of the NJNG CIP, the costs of
compliance with the proposed regulatory framework for over-the-counter
derivatives; the costs of compliance with present and future environmental
laws, including potential climate change-related legislation; risks related to
changes in accounting standards; the disallowance of recovery of
environmental-related expenditures and other regulatory changes;
environmental-related and other litigation and other uncertainties; risks
related to cyber-attack of failure of information technology systems; and the
impact of natural disasters, terrorist activities, and other extreme events on
our operations and customers, including any impacts to utility gross margin,
and restoration costs. The aforementioned factors are detailed in the “Risk
Factors” sections of our Annual Report on Form 10-Kfiled on November 26,
2013, as filed with the Securities and Exchange Commission (SEC), which is
available on the SEC’s website at sec.gov. Information included in this
release is representative as of today only and while NJR periodically
reassesses material trends and uncertainties affecting NJR's results of
operations and financial condition in connection with its preparation of
management's discussion and analysis of results of operations and financial
condition contained in its Quarterly and Annual Reports filed with the SEC,
NJR does not, by including this statement, assume any obligation to review or
revise any particular forward-looking statement referenced herein in light of
future events.

Non-GAAP Financial Information

This press release includes the non-GAAP measures NFE and utility gross
margin. As an indicator of the company’s operating performance, these measures
should not be considered alternatives to, or more meaningful than, operating
income or gross margin as determined in accordance with GAAP. This information
has been provided pursuant to the requirements of SEC Regulation G.

NFE excludes unrealized gains or losses on derivative instruments related to
the company’s unregulated subsidiaries and certain realized gains and losses
on derivative instruments related to natural gas that has been placed into
storage at NJRES. Volatility associated with the change in value of these
financial and physical commodity contracts is reported in the income statement
in the current period. In order to manage its business, NJR views its results
without the impacts of the unrealized gains and losses, and certain realized
gains and losses, caused by changes in value of these financial instruments
and physical commodity contracts prior to the completion of the planned
transaction because it shows changes in value currently instead of when the
planned transaction ultimately is settled. An annual estimated effective tax
rate is calculated for NFE purposes and any necessary quarterly tax adjustment
is applied to NJRCEV, as such adjustment is related to tax credits generated
by NJRCEV.

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.
Natural gas costs, sales and other taxes and regulatory rider expenses are
passed through to customers and, therefore, have no effect on gross margin.
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 uses 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. For a full discussion
of NJR’s non-GAAP financial measures, please see NJR’s most recent Form 10-K,
Item 7 and most recent Form 10-Q, Part I, Item 2.

About New Jersey Resources

New Jersey Resources (NYSE:NJR) is a Fortune 1000 company that provides safe
and reliable natural gas and clean energy services, including transportation,
distribution and asset management. With annual revenues in excess of $3
billion, NJR is comprised of five key businesses:

  *New Jersey Natural Gas is NJR’s principal subsidiary that  operates and
    maintains 7,000 miles of natural gas transportation and distribution
    infrastructure to serve half a million customers in New Jersey’s Monmouth,
    Ocean and parts of Morris and Middlesex counties.
  *NJR Clean Energy Ventures invests in, owns and operates solar and onshore
    wind projects with a total capacity in excess of 75 megawatts, providing
    residential and commercial customers with low-carbon solutions.
  *NJR Energy Services manages a diversified portfolio of natural gas
    transportation and storage assets and provides physical natural gas
    services and customized energy solutions to its customers across North
    America.
  *NJR Midstream serves customers from local distributors and producers to
    electric generators and wholesale marketers through its equity ownership
    in a natural gas storage facility and a transportation pipeline, both of
    which are Federal Energy Regulatory Commission, or FERC-regulated
    investments.
  *NJR Home Services provides heating, central air conditioning, standby
    generators, solar and other indoor and outdoor comfort products to
    residential homes and businesses throughout New Jersey and serves
    approximately 120,000 service contract customers.

NJR and its more than 900 employees are committed to helping customers save
energy and money by promoting conservation and encouraging efficiency through
Conserve to Preserve^® and initiatives such as The SAVEGREEN Project^® and The
Sunlight Advantage^®.

For more information about NJR:
Visit www.njresources.com.
Follow us on Twitter @NJNaturalGas.
“Like” us on facebook.com/NewJerseyNaturalGas.
Download our free NJR investor relations app for iPad and iPhone.

Contact:

New Jersey Resources
Media:
Michael Kinney, 732-938-1031
mkinney@njresources.com
or
Investors:
Joanne Fairechio, 732-378-4967
jfairechio@njresources.com
or
Dennis Puma, 732-938-1229
dpuma@njresources.com
 
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