New Jersey Resources Announces Fiscal 2014 Third-Quarter Earnings; Reaffirms Increased Fiscal 2014 Net Financial Earnings

  New Jersey Resources Announces Fiscal 2014 Third-Quarter Earnings; Reaffirms
  Increased Fiscal 2014 Net Financial Earnings Guidance

       Strong Year-To-Date Results at NJR Energy Services Drives Growth

   New Jersey Natural Gas $102.5 Million Infrastructure Investment Approved

Business Wire

WALL, N.J. -- July 31, 2014

New Jersey Resources (NYSE:NJR) today reported results for the third quarter
of fiscal 2014 and reaffirmed increased net financial earnings (NFE) guidance
for fiscal 2014.

A reconciliation of net income to NFE for the third quarter and first nine
months of fiscal years 2014 and 2013 is provided below.

                                                                                         
                     Three Months Ended                       Nine Months Ended
                     June 30,                                 June 30,
(Thousands)          2014             2013                 2014             2013
Net (loss)           $  (14,274 )    $  29,155           $  166,390      $  134,830
income
Add:
Consolidated
unrealized
(gain) loss          (6,585      )       (44,148    )         45,811              (23,682     )
on
derivative
instruments
Effects of
economic
hedging              38,139              13,440               (3,409      )       (9,425      )
related to
natural gas
inventory
Tax                  (12,766     )       11,291              (12,497     )       12,172      
adjustments
Net
financial            $  4,514          $  9,738           $  196,295        $  113,895 
earnings
                                                                                                    
Weighted
Average
Shares
Outstanding
Basic                42,117              41,608               42,072              41,697
Diluted              42,117             41,732              42,456             41,820      
                                                                                                    
Basic (loss)
earnings per         $  (0.34   )       $  0.70            $  3.95           $  3.23    
share
Basic net
financial            $  0.11           $  0.23            $  4.67           $  2.73    
earnings per
share
                                                                                                    

NFE 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, net of applicable tax adjustments. For further discussion of this
financial measure, as well as reconciliation to the most comparable GAAP
measure, please see the explanation below under “Additional Non-GAAP Financial
Information.”

  *NJR Reports Net Financial Earnings

Fiscal 2014 year-to-date NFE at NJR totaled $196.3 million, or $4.67 per
share, compared with $113.9 million, or $2.73 per share, during the first nine
months of fiscal 2013. For the three-month period ended June 30, 2014, NFE
were $4.5 million, or $0.11 per share, compared with $9.7 million, or $0.23
per share, during the same period last year.

                                                                                      
                     Three Months Ended                    Nine Months Ended
                     June 30,                              June 30,
(Thousands)          2014           2013                2014             2013
Net
financial                                                               
earnings
(loss)
New Jersey           $  4,882         $  5,528           $  79,564          $  76,937
Natural Gas
NJR Energy           (8,628    )       2,097               90,153              21,479
Services
NJR Clean
Energy               3,865             (1,381    )         20,286              9,078
Ventures
NJR                  1,896             1,541               5,584               5,600
Midstream
NJR Home
Service and          2,485            1,944              708                813         
Other
Sub-total            4,500             9,729               196,295             113,907
Eliminations         14               9                  —                  (12         )
Total                $  4,514        $  9,738          $  196,295        $  113,895 
                                                             
                                                                                                 

Year-to-date NFE growth was driven by extremely strong results at NJR Energy
Services (NJRES), the company’s wholesale provider of physical natural gas
services and customized energy solutions, and NJR’s unregulated distributed
power subsidiary, NJR Clean Energy Ventures (NJRCEV), as well as continued
steady growth at New Jersey Natural Gas (NJNG), NJR’s regulated utility.
Strong third-quarter results at NJRCEV were primarily offset by the
anticipated loss at NJRES, which was due primarily to the seasonal use of
natural gas, and year-round transportation and storage portfolio expenses.

“We’re having an extraordinary year, led by the results at three of our key
subsidiaries,” said Laurence M. Downes, chairman and CEO of New Jersey
Resources. “On behalf of our board of directors, I would like to thank all our
employees for their passion and commitment, which remain the driving force
behind our ability to continually meet our customers’ expectations for safety,
reliability and affordable service every day and, at the same time, deliver
value to our shareowners.”

  *NJR Reaffirms Increased Fiscal 2014 Net Financial Earnings Guidance

Subject to the risks and uncertainties identified below under “Forward-Looking
Statements,” NJR is reaffirming previously announced increased fiscal 2014 NFE
guidance in a range of $4.00 to $4.20 per basic share.

The company is forecasting a net financial loss of between $0.47 and $0.67 per
share in the fourth quarter of fiscal 2014. The forecasted fourth-quarter loss
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.

In fiscal 2014, NJR expects its regulated businesses, NJNG and NJR Midstream,
to contribute 43 to 60 percent to NFE and, as in the past, expects NJNG to be
the largest contributor to NFE. The following chart represents the
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
                                                                          

Assuming a return to more normal weather, NJR expects NJRES will generate
between 5 to 15 percent of total NFE in fiscal 2015 and beyond. The company
expects its regulated businesses will contribute 65 to 80 percent of total NFE
over the long term. Contributions from NJR’s various business segments are
expected to return to previously announced levels in fiscal 2015 as shown in
the chart below:

                                                                   
                             
Company                       Expected Fiscal 2015 and Beyond
                                  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 Clean Energy Ventures     10 to 20 percent
NJR Energy Services           5 to 15 percent
NJR Home Services             2 to 5 percent
                                                                          

  *Board of Directors Declares Dividend

On July 15, 2014, NJR announced its board of directors unanimously declared a
quarterly dividend of $0.42 per share on its common stock. The dividend will
be payable on October 1, 2014, to shareowners of record on September 15, 2014.
NJR has paid quarterly dividends continuously since its inception in 1952.

  *New Jersey Natural Gas

Fiscal 2014 year-to-date NFE at NJNG, the company’s regulated utility
subsidiary, totaled $79.6 million, compared with $76.9 million for the first
nine months of fiscal 2013. For the three-month period ended June 30, 2014,
NFE totaled $4.9 million, compared with $5.5 million during the same period
last year. The improved year-to-date results were driven by higher utility
gross margin from customer additions, incentive programs and regulatory
initiatives, as well as the continued impact of accelerated infrastructure
investments. The lower results in the third quarter were due primarily to
higher operations and maintenance expenses and a higher effective tax rate,
which more than offset higher gross margin from incentive programs. Lower
forecasted cost of removing assets placed in service before 1980 resulted in
an increased tax adjustment in the third fiscal quarter of 2014.

During the first nine months of fiscal 2014, NJNG added 5,151 new customers,
compared with 5,301 in the same period last year. Of these customers, 2,463
were related to new construction, compared with 2,493 in the same period last
year. Year-to-date, 3,125 customers, including 437 existing customers,
converted to natural gas heat. These new and conversion customers, along with
the addition of firm natural gas sales to existing customers, will contribute
approximately $3.1 million annually to utility gross margin, a 15 percent
increase over the same period last year.

“We continue to see positive signs in the residential new construction
market,” continued Downes. “Combined with favorable service territory
demographics and competitive natural gas pricing, we are well on our way to
meeting our projected new customer additions goal of between 14,000 to 16,000
during fiscal 2014 and 2015. This will represent a new customer annual growth
rate of about 1.5 percent.”

NJNG expects these new customers and conversions to contribute approximately
$4 million annually to utility gross margin. For more information on utility
gross margin, please see Non-GAAP Financial Information below.

  *$102.5 Million Infrastructure Investment Approved; Regulatory Update

On July 23, 2014, NJNG received approval from the New Jersey Board of Public
Utilities (BPU) for its New Jersey Reinvestment in System Enhancement (NJ
RISE) program. Through NJ RISE, NJNG will invest $102.5 million over a
five-year period in six capital projects designed to enhance the resiliency of
its natural gas distribution and transmission systems and help diminish the
impact of major weather events in the future.

“The NJ RISE program will enable us to pursue storm-hardening and mitigation
investments to best serve our customers in storm-prone areas surrounding the
barrier island communities and other coastal areas of New Jersey in our
service territory,” continued Downes.

These system enhancements, which align directly with the state’s appetite for
energy resiliency and preparedness, will help mitigate future outages, improve
NJNG’s service disruption response and strengthen the overall safety,
reliability and integrity of its natural gas delivery system. NJNG will
recover its capital investment costs through July 31, 2015 through an
adjustment to its base rates in November 2015. The NJ RISE investments will
earn a weighted average cost of capital of 6.74 percent, including a 9.75
percent return on equity (ROE) with a 53.5 percent common equity ratio.
Additional cost recovery will be addressed in NJNG’s next base rate case
scheduled to be filed no later than November 15, 2015.

In the first nine months of fiscal 2014, NJNG invested $33.7 million in its
Safety Acceleration and Facility Enhancement (SAFE) program, a planned $130
million, four-year infrastructure investment. Through SAFE, NJNG will replace
276 miles of its distribution main to further ensure the reliability and
integrity of its natural gas delivery system. The SAFE program includes the
replacement of NJNG’s entire cast iron distribution main and approximately 50
percent of its unprotected bare steel distribution main, along with the
associated services. SAFE investments will earn a weighted average cost of
capital of 6.9 percent, including a 9.75 percent ROE with a 53.5 percent
common equity ratio.

Equipment manufacturing is underway for NJNG’s Howell, New Jersey, Liquefied
Natural Gas (LNG) plant, which will give the company the ability to liquefy
pipeline natural gas for peak-day use and reduce LNG transportation costs. The
$35.7 million investment will benefit customers by reducing Basic Gas Supply
Service costs and will create additional value for shareowners.

The company is currently evaluating route options for its Southern Reliability
Link (SRL) project, an estimated $130 to $160 million investment, which will
connect an interstate pipeline to NJNG’s transmission system in Ocean County,
New Jersey, to support system reliability and redundancy.

  *Conservation Incentive Program Continuation Approved

In the third quarter of fiscal 2014, NJNG received approval from the BPU to
continue its Conservation Incentive Program (CIP). As a result of this action,
there is no future expiration date for the CIP; however, it is subject to
review in a future rate filing in 2017. Separately, the company has proposed a
reduction to its CIP rates that would result in a bill decrease for
residential and commercial customers, effective October 1, 2014.

First enacted in 2006, the CIP enables NJNG to more actively encourage savings
for customers through conservation and energy-efficiency improvements, while
allowing NJNG to maintain sufficient operating revenues that might otherwise
be impacted by declines in usage patterns. By eliminating the link between
usage and margin recoveries, NJNG is in a stronger position to help customers
manage their energy bills. Additionally, rate impacts continue to be subject
to tariff requirements, which ensure protection for customers.

Since its inception, the CIP has helped customers reduce their natural gas
usage by 295 million therms, saving a total of $305 million. These
conservation actions reduce greenhouse gas emissions and help customers save
energy and money, supporting the state’s environmental goals without impacting
NJNG’s gross margin.

  *The SAVEGREEN Project^® Encourages Energy Savings

In the first nine months of fiscal 2014, The SAVEGREEN Project, NJNG’s
energy-efficiency program, invested $24.7 million on grants, incentives and
NJNG’s On-Bill Repayment Program (OBRP) to help make the investment in
high-efficiency natural gas equipment and energy-efficient upgrades more
affordable for NJNG customers. During the same period, SAVEGREEN performed
3,432 home energy audits to identify additional energy-efficiency
opportunities with an emphasis on whole-house improvements to further increase
energy savings for customers. Year-to-date, 1,690 NJNG customers have taken
advantage of the OBRP.

Since its inception in 2009, SAVEGREEN grants, incentives and OBRP loans,
totaling $85.2 million, have helped over 31,447 customers reduce energy
consumption and lower their bills, supporting the state’s environmental goals
and its mandate to reduce energy costs for residents. NJNG’s SAVEGREEN
energy-efficiency programs are in place through June 30, 2015.

In total, NJNG plans to invest approximately $138 million in SAVEGREEN grants,
financial incentives and the OBRP over the life of the program. The company is
authorized to earn an overall return on its SAVEGREEN investments, ranging
from 6.9 to 7.76 percent, with a ROE ranging from 9.75 to 10.3 percent. The
recovery period varies from two to 10 years, depending on the type of
energy-efficiency investment.

  *Compressed Natural Gas Refueling Stations on Track to Open This Year

NJNG is investing approximately $10 million in three compressed natural gas
(CNG) refueling stations throughout its service territory. Construction
contracts have been awarded for all three projects and the company expects to
break ground on all three stations this summer.

The host sites, located at Waste Management, Inc. of Toms River, Ocean County,
the Middletown Department of Public Works and Shore Point Distributing
Company, Inc. of Freehold Township, both in Monmouth County, will be the first
to open to the public in each of these counties.

NJNG will install, own and maintain the CNG infrastructure for all three
stations, and the host companies will be required to initially use at least 20
percent of the refueling capacity and open the stations to the public on a
24/7 basis. These new CNG fueling stations align with the state’s public
policy goal to encourage the use of natural gas vehicles and give New Jersey
residents and businesses easier access to cleaner, cost-effective fuel
options. NJNG expects all three CNG stations to be operational in calendar
year 2014. NJNG is authorized by the BPU to earn an overall return of 7.1
percent, including a 10.3 percent ROE on these investments.

  *New Jersey Natural Gas Supply Incentive Program

For the three-month period ended June 30, 2014, NJNG’s gross margin-sharing
incentive programs, which include off-system sales, capacity release, storage
optimization and financial risk management programs, contributed $5.9 million
to utility gross margin, compared with $1.9 million during the same period
last year. During the first nine months of fiscal 2014, these incentives
contributed $10.4 million to utility gross margin, compared with $6 million
for the same period last year. The higher results in both periods were due
primarily to increased margins in the storage incentive program, driven mainly
by lower natural gas prices as well as timing of storage injections. NJNG
capacity release margins were also higher during both periods, primarily due
to an increase in the amount of volumes released and the value of capacity as
a result of increased market area volatility.

NJNG shares the gross margin earned from these incentive programs with
customers and shareowners, according to a gross margin-sharing formula
authorized by the BPU that is in place through October 31, 2015. Since their
inception in 1992, these incentive programs have saved customers approximately
$685 million.

  *Strong Year-To-Date Results at NJR Energy Services

Year-to-date NFE at NJR Energy Services (NJRES), the company’s wholesale
provider of physical natural gas services and customized energy solutions,
were $90.2 million, compared with $21.5 million in the first nine months of
fiscal 2013. These exceptionally strong results were due primarily to
significantly increased demand for natural gas in regions affected by the
sustained extreme cold weather this past winter across the United States,
especially in the Midwest.

For the three-month period ended June 30, 2014, NJRES reported a net financial
loss of $8.6 million, compared with NFE of $2.1 million in the same period
last year. The seasonal nature of natural gas usage in addition to year-round
transportation and storage portfolio expenses combined with the cost of
unwinding hedges associated with natural gas sales in the second quarter of
fiscal 2014, contributed to the expected net financial loss in the third
fiscal quarter.

Over the course of the past several years, NJRES has restructured its
portfolio of storage and pipeline capacity assets to reflect the changing
dynamics in the natural gas industry and position the company to serve the
growing market for physical natural gas services. “During this past winter,
NJRES effectively utilized its strategically located assets across North
America, including the Marcellus region and Midwest, to meet the needs of its
diverse customer base and create significant value for our shareowners,”
continued Downes. NJRES’ asset portfolio currently consists of approximately
47 Bcf of firm storage contracts and 1.4 Bcf/day of firm transportation
contracts.

  *Strong Earnings at NJR Clean Energy Ventures; The Sunlight Advantage^®
    Grows

Fiscal 2014 year-to-date NFE at NJR Clean Energy Ventures (NJRCEV), the
company’s unregulated distributed power subsidiary, were $20.3 million,
compared with $9.1 million in the first nine months of fiscal 2013. For the
three-month period ended June 30, 2014, NJRCEV reported NFE of $3.9 million,
compared with a net financial loss of $1.4 million in the same period last
year. The higher results in both periods were due primarily to increased
investment tax credits (ITCs) from higher capital expenditures to be placed
into service in fiscal 2014, compared with fiscal 2013, and the receipt of a
one-time credit support payment related to a change in ownership at the site
of one of NJRCEV’s commercial solar projects.

During the third quarter of fiscal 2014, NJRCEV placed into service a 9.2
megawatt (MW) ground-mounted, grid-connected commercial solar system in West
Pemberton, New Jersey. This project, in addition to two other ground-mounted
commercial solar systems placed in service in the first nine months of fiscal
2014, represent a total capacity of 10.9 MWs and $28.8 million.

Currently, NJRCEV has two commercial solar projects under construction. NJRCEV
expects to place into service a $15.9 million, 6.1 MW grid-connected system in
North Hanover, New Jersey in the fourth quarter of fiscal 2014. Additionally,
NJRCEV expects to place into service a $26.9 million, 10 MW grid-connected
system in Howell, New Jersey during the first quarter of fiscal 2015. In
fiscal 2014, NJRCEV expects to place into service a total of $44.7 million in
commercial solar systems, compared with $33.1 million in fiscal 2013.

The Sunlight Advantage, NJRCEV’s residential solar lease program, added 739
customers, totaling 7.2 MWs of capacity, during the first nine months of
fiscal 2014, bringing the total number of customers to 2,825 since the
program’s inception. The Sunlight Advantage provides savings to eligible
homeowners through both roof- and ground-mounted solar systems with no upfront
installation or maintenance costs. NJRCEV expects to invest approximately
$31.5 million in residential solar systems in fiscal 2014, compared with $29
million in fiscal 2013.

NJR’s effective tax rate is significantly impacted by the amount of tax
credits that are forecasted to be earned during the fiscal year. GAAP requires
NJR to estimate its annual effective tax rate and use this rate to calculate
its year-to-date tax provision. Based on projects completed in the first nine
months of fiscal 2014, and NJRCEV’s forecast of projects to be completed for
the balance of the fiscal year, NJR’s estimated annual effective tax rate is
28.2 percent. Accordingly, $17.8 million related to tax credits, net of
deferred taxes, were recognized in the first nine months of fiscal 2014,
compared with $13.1 million, net of deferred taxes, in the same period last
year. For NFE purposes, the effective tax rate for fiscal 2014 is estimated at
28.4 percent and $20.9 million of tax credits were recognized in the first
nine months of fiscal 2014, compared with $13.1 million last year. For further
discussion of this tax adjustment and reconciliation to the most comparable
GAAP measure, please see the explanation below under “Additional Non-GAAP
Financial Information.”

The estimated effective tax rate is based on information and assumptions that
are subject to change, and may have a material impact on quarterly and annual
net financial earnings. Factors considered by management in estimating
completion of projects during the fiscal year include, but are not limited to,
board of directors’ approval, regulatory approval, execution of various
contracts, including power purchase agreements, construction logistics,
permitting and interconnection completion. See the “Forward-Looking
Statements” section of this news release for further information regarding the
inherent risks associated with solar investments.

  *NJR Clean Energy Ventures Places First Onshore Wind Project into Service

In the third quarter of fiscal 2014, NJRCEV placed its first onshore wind
project into service. The Two Dot Wind Farm, located on 176 acres in Two Dot,
Montana, consists of six, General Electric 1.62 MW, 87-meter rotor diameter
wind turbines with a capacity of 9.7 MWs. The energy and clean energy credits
generated from Two Dot will be sold to a regional utility through a 25-year
power purchase agreement. This approximate $22 million investment, which is
owned and operated by NJRCEV, qualifies for federal production tax credits
(PTCs), that are based on kilowatt-hour output and are expected to provide
annuity-like returns.

“Wind energy offers us the opportunity to further diversify our distributed
power portfolio, and will play an increasingly important role in our renewable
investment strategy,” continued Downes.

Construction continues on NJRCEV’s second onshore wind farm, a 20 MW, $42
million investment in Carroll County, Iowa, which NJR expects to be
operational in the second quarter of fiscal 2015. Like Two Dot, NJRCEV will
construct, own and operate the wind farm and the energy and clean energy
credits it generates will be sold to a regional utility through a 25-year
power purchase agreement. This project will also qualify for federal PTCs.

Both the Two Dot and Carroll Area Wind Farms are shovel-ready projects
purchased from OwnEnergy, Inc., a developer of midsize and community wind
projects. In 2012, NJRCEV acquired an approximate 19 percent ownership
position in OwnEnergy, with an option, but not the obligation, to purchase
projects that fit NJR’s investment profile.

  *Long-Term Outlook for NJR Clean Energy Ventures

Over the next several years, NJRCEV expects a declining percentage of its NFE
to come from ITCs associated with solar investments. Looking out through
fiscal 2017, NJRCEV anticipates its existing projects will benefit from Solar
Renewable Energy Certificate (SREC) prices the company expects will continue
to improve based on a decline in solar construction, higher renewable
portfolio standards (RPS) and an increased likelihood of a return to a market
where RPS requirements will exceed installed capacity by 2017.

NJRCEV continues to focus on diversifying its distributed power portfolio to
include small- to mid-sized onshore wind projects, supported by long-term
power purchase agreements, such as the Two Dot and Carroll Area Wind Farms and
investments in combined heat and power, thereby reducing its reliance on ITCs.

In fiscal 2015, NJRCEV expects to generate between 10 to 20 percent of total
NFE.

  *Midstream Investments

NJR’s natural gas midstream asset segment, NJR Midstream, reported
year-to-date NFE of $5.6 million, the same as in the first nine months of
fiscal 2013. For the three-month period ended June 30, 2014, NFE was $1.9
million, compared with $1.5 million in the third fiscal quarter of 2013.

NJR Midstream consists of two Federal Energy Regulatory Commission
(FERC)-regulated investments, NJR’s 50 percent equity ownership in Steckman
Ridge, a 12 Bcf natural gas storage facility in southwestern Pennsylvania
jointly owned with Spectra Energy, and NJR’s 5.53 percent equity investment in
Iroquois Pipeline, which delivers natural gas to the New England and New York
markets.

  *NJR Home Services Update

In the third quarter of fiscal 2014, NFE at NJR Home Services (NJRHS), the
company’s unregulated retail and appliance service subsidiary, were $2
million, compared with $1.8 million in the third quarter of fiscal 2013. NJRHS
generated NFE of $283,000 in the first nine months of fiscal 2014, compared
with $688,000 in the same period last year when NJRHS experienced
higher-than-expected generator and plumbing installation sales as a result of
Superstorm Sandy.

NJRHS offers home energy solutions for customer comfort, including equipment
sales and installations, solar lease and purchase plans and a recently
expanded service contract product line that now includes electric, plumbing
and standby generator contracts. NJRHS’ expanded service territory now
includes Monmouth, Ocean, Middlesex, Morris, Sussex, Warren and Hunterdon
counties in New Jersey. Currently, NJRHS serves approximately 119,000 service
contract customers.

Webcast Information

NJR will host a live webcast to discuss its financial results today 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,”
“forecasts,” “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 guidance for fiscal 2014, forecasted
contribution of business segments to fiscal 2014 and 2015 NFE, expected
contribution by NJNG’s new customers to utility gross margin, expected number
of new customers of NJNG, SREC prices, estimated capital expenditures and
planned investments in fiscal 2014 and beyond by NJNG, including those related
to SAVEGREEN, SAFE and NJ RISE, planned compressed natural gas fueling
stations, the long-term outlook for NJRCEV, diversification of NJRCEV’s
strategy, NJRCEV’s future investments in solar projects and the Two Dot and
Carroll Area wind farms.

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 solar 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 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 (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. This information has been provided pursuant to the
requirements of SEC Regulation G.

NFE (losses) and financial margin exclude 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 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 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 primary 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 over half a million customers in New Jersey’s
    Monmouth, Ocean and parts of Morris and Middlesex counties.
  *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 Clean Energy Ventures invests in, owns and operates solar and onshore
    wind projects with a total capacity in excess of 85 megawatts, providing
    residential and commercial customers with low-carbon solutions.
  *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 119,000 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.

                                                                                                     
                                                                                                
RECONCILIATION
OF NON-GAAP                                                                                      
PERFORMANCE
MEASURES
NEW JERSEY                                                                                 
RESOURCES
                                                           
                         Three Months Ended                          Nine Months Ended
                         June 30,                                    June 30,
(Thousands)         2014              2013              2014                2013
A
reconciliation
of Net income
at NJR to Net
financial
earnings, is
as follows:
                                                                                                               
Net (loss)               $  (14,274 )         $  29,155            $  166,390             $  134,830
income
Add:
Consolidated
unrealized
(gain) loss on           (6,585      )         (44,148     )         45,811                  (23,682       )
derivative
instruments
Effects of
economic
hedging                  38,139                13,440                (3,409        )         (9,425        )
related to
natural gas
inventory
Tax                      (12,766     )         11,291               (12,497       )         12,172        
adjustments
Net financial            $  4,514            $  9,738            $  196,295            $  113,895   
earnings
                                                                                                               
Weighted
Average Shares
Outstanding
Basic                    42,117                41,608                42,072                  41,697
Diluted                  42,117               41,732               42,456                 41,820        
                                                                                                               
Basic net
financial                $  0.11             $  0.23             $  4.67               $  2.73      
earnings per
share
                                                                                  
NJR ENERGY                                                                         
SERVICES
                                                                                                               
The following
table is a
computation of
Financial
margin at
Energy
Services:
                                                                                                               
Operating                $   560,633           $   633,533           $   2,439,926           $   1,741,081
revenues
Less: Gas                599,773               593,730               2,311,718               1,661,362
purchases
Add:
Unrealized
(gain) loss on
derivative               (7,101      )         (45,267     )         46,357                  (24,312       )
instruments
and related
transactions
Effects of
economic
hedging                  38,139               13,440               (3,409        )         (9,425        )
related to
natural gas
inventory
Financial                $  (8,102  )         $  7,976            $  171,156            $  45,982    
margin
                                                                                                               
A reconciliation of Operating income at Energy Services, the closest GAAP financial measurement, to
Financial margin is as follows:
                                                                                                               
Operating                $   (44,554 )         $   35,782            $   101,045             $   68,541
(loss) income
Add:
Operation and
maintenance              5,033                 3,595                 25,992                  10,190
expense
Depreciation
and                      15                    10                    40                      32
amortization
Other taxes              366                  416                  1,131                  956           
Subtotal –               (39,140     )         39,803                128,208                 79,719
Gross margin
Add:
Unrealized
(gain) loss on
derivative               (7,101      )         (45,267     )         46,357                  (24,312       )
instruments
and related
transactions
Effects of
economic
hedging                  38,139               13,440               (3,409        )         (9,425        )
related to
natural gas
inventory
Financial                $  (8,102  )         $  7,976            $  171,156            $  45,982    
margin
                                                                                                               
A reconciliation of Energy Services Net income to Net financial earnings, is as follows:
                                                                                                               
Net (loss)               $   (28,254 )         $   22,222            $   62,996              $   42,812
income
Add:
Unrealized
(gain) loss on
derivative               (7,101      )         (45,267     )         46,357                  (24,312       )
instruments
and related
transactions
Effects of
economic
hedging                  38,139                13,440                (3,409        )         (9,425        )
related to
natural gas
Tax                      (11,412     )         11,702               (15,791       )         12,404        
adjustments
Net financial
(loss)                   $  (8,628  )         $  2,097            $  90,153             $  21,479    
earnings
                                                                                  
                                                                                                               
                         Three Months Ended                          Nine Months Ended
                         June 30,                                    June 30,
(Thousands)              2014                  2013                  2014                    2013
NJR CLEAN
ENERGY                                                                             
VENTURES
                                                                                                               
A reconciliation of Clean Energy Ventures Net income to Net financial earnings, is as follows:
                                                                                                               
Net income               $   5,029             $   (1,381  )         $   17,193              $   9,078
(loss)
Add:
Tax                      (1,164      )         —                    3,093                  —             
adjustments
Net financial
earnings                 $  3,865            $  (1,381  )         $  20,286             $  9,078     
(loss)
                                                                          
                                                                                                               

                                                                            
NEW JERSEY                                                       
RESOURCES
                                                                      
CONSOLIDATED STATEMENTS OF
OPERATIONS
                                                                                                       
                     Three Months Ended                          Nine Months Ended
                     June 30,                                    June 30,
(Thousands,
except per           2014                  2013                  2014                  2013
share data)
OPERATING
REVENUES
Utility              $  111,383           $  119,022           $  739,380           $  689,621
Nonutility           576,874              648,447              2,406,851            1,774,752
Total
operating            688,257              767,469              3,146,231            2,464,373
revenues
OPERATING
EXPENSES
Gas
purchases
Utility              39,546                55,708                298,694               356,069
Nonutility           599,530               593,534               2,310,930             1,660,528
Operation
and                  45,995                43,630                149,291               126,767
maintenance
Regulatory
rider                9,337                 6,258                 67,380                44,014
expenses
Depreciation
and                  13,620                11,942                39,014                34,966
amortization
Energy and           9,437                9,397                50,894               50,869
other taxes
Total
operating            717,465              720,469              2,916,203            2,273,213
expenses
OPERATING
(LOSS)               (29,208     )         47,000                230,028               191,160
INCOME
Other income         10,952                1,238                 12,791                4,284
Interest             6,507                6,008                19,108               17,579
expense, net
(LOSS)
INCOME
BEFORE
INCOME TAXES
AND EQUITY
IN EARNINGS
OF                   (24,763     )         42,230                223,711               177,865
AFFILIATES
Income tax
(benefit)            (7,808      )         15,297                65,377                51,342
provision
Equity in
earnings of          2,681                2,222                8,056                8,307
affiliates
NET (LOSS)           $  (14,274 )         $  29,155           $  166,390          $  134,830
INCOME
                                                                                                       
(LOSS)
EARNINGS PER
COMMON SHARE
BASIC                $   (0.34   )         $   0.70              $   3.95              $   3.23
DILUTED              $   (0.34   )         $   0.70              $   3.92              $   3.22
                                                                                                       
DIVIDENDS
DECLARED PER         $   .42               $   .40               $   1.26              $   1.20
COMMON SHARE
                                                                                                       
AVERAGE
SHARES
OUTSTANDING
BASIC                42,117                41,608                42,072                41,697
DILUTED              42,117                41,732                42,456                41,820
                                                                
                                                                                                       

                                                                                
NEW JERSEY                                                                     
RESOURCES
                                                                         
                        Three Months Ended                          Nine Months Ended
                        June 30,                                    June 30,
(Thousands,
except per              2014                  2013                  2014                  2013
share data)
Operating
Revenues
Natural Gas             $ 111,383             $ 119,022             $ 739,380             $ 689,621
Distribution
Energy Services         560,633               633,533               2,439,926             1,741,081
Clean Energy            3,155                 2,563                 8,007                 7,182
Ventures
Midstream               —                     —                     —                     —
Retail and              13,798               13,704               31,896               32,842      
Other
Sub-total               688,969               768,822               3,219,209             2,470,726
Eliminations            (712        )         (1,353      )         (72,978     )         (6,353      )
Total                   $ 688,257            $ 767,469            $ 3,146,231          $ 2,464,373 
                                                                              
                                                                                                            
Operating
Income (Loss)
Natural Gas             $ 13,045              $ 10,339              $ 132,400             $ 124,438
Distribution
Energy Services         (44,554     )         35,782                101,045               68,541
Clean Energy            (2,203      )         (1,988      )         (7,176      )         (5,338      )
Ventures
Midstream               (202        )         (190        )         (721        )         (611        )
Retail and              4,136                3,119                689                  1,402       
Other
Sub-total               (29,778     )         47,062                226,237               188,432
Eliminations            570                  (62         )         3,791                2,728       
Total                   $ (29,208   )         $ 47,000             $ 230,028            $ 191,160   
                                                                              
                                                                                                            
Equity in
Earnings of
Affiliates
Midstream               $ 3,511               $ 3,052               $ 10,594              $ 11,012
Eliminations            (830        )         (830        )         (2,538      )         (2,705      )
Total                   $ 2,681              $ 2,222              $ 8,056              $ 8,307     
                                                                              
                                                                                                            
Net income
(loss)
Natural Gas             $ 4,882               $ 5,528               $ 79,564              $ 76,937
Distribution
Energy Services         (28,254     )         22,222                62,996                42,812
Clean Energy            5,029                 (1,381      )         17,193                9,078
Ventures
Midstream               1,896                 1,541                 5,584                 5,600
Retail and              2,485                1,944                708                  813         
Other
Sub-total               (13,962     )         29,854                166,045               135,240
Eliminations            (312        )         (699        )         345                  (410        )
Total                   $ (14,274   )         $ 29,155             $ 166,390            $ 134,830   
                                                                              
                                                                                                            
Net financial
earnings (loss)
Natural Gas             $ 4,882               $ 5,528               $ 79,564              $ 76,937
Distribution
Energy Services         (8,628      )         2,097                 90,153                21,479
Clean Energy            3,865                 (1,381      )         20,286                9,078
Ventures
Midstream               1,896                 1,541                 5,584                 5,600
Retail and              2,485                1,944                708                  813         
Other
Sub-total               4,500                 9,729                 196,295               113,907
Eliminations            14                   9                    —                    (12         )
Total                   $ 4,514              $ 9,738              $ 196,295            $ 113,895   
                                                                              
                                                                                                            
Throughput
(Bcf)
NJNG, Core              11.6                  10.7                  70.1                  63.6
Customers
NJNG, Off
System/Capacity         53.8                  31.4                  124.0                 103.7
Management
NJRES Fuel
Mgmt. and               127.0                152.7                469.1                458.0       
Wholesale Sales
Total                   192.4                194.8                663.2                625.3       
                                                                              
                                                                                                            
Common Stock
Data
Yield at June           2.9         %         3.9         %         2.9         %         3.9         %
30
Market Price
High                    $ 57.68               $ 47.60               $ 57.68               $ 47.60
Low                     $ 47.70               $ 40.97               $ 42.54               $ 38.51
Close at June           $ 57.16               $ 41.53               $ 57.16               $ 41.53
30
Shares Out. at          42,168                41,380                42,168                41,380
June 30
Market Cap. at          $ 2,410,298          $ 1,718,511          $ 2,410,298          $ 1,718,511 
June 30
                                                                 
                                                                                                            

                                                                                         
NATURAL GAS                                                                            
DISTRIBUTION
                                                                                 
                                 Three Months Ended                          Nine Months Ended
(Unaudited)                      June 30,                                    June 30,
(Thousands, except
customer & weather               2014                  2013                  2014                  2013
data)
Utility Gross Margin
Operating revenues               $  111,383           $  119,022           $  739,380           $  689,621
Less:
Gas purchases                    40,373                56,559                373,982               363,646
Energy and other taxes           6,404                 6,852                 43,330                43,619
Regulatory rider                 9,337                6,258                67,380               44,014      
expense
Total Utility Gross              $  55,269           $  49,353           $  254,688          $  238,342 
Margin
                                                                                      
Utility Gross Margin,
Operating Income and
Net Income
Residential                      $   29,336            $   28,277            $   152,934           $   147,398
Commercial, Industrial           8,532                 8,460                 38,960                38,112
& Other
Firm Transportation              11,356               10,555               52,029               46,450      
Total Firm Margin                49,224                47,292                243,923               231,960
Interruptible                    190                  165                  411                  368         
Total System Margin              49,414                47,457                244,334               232,328
Off System/Capacity
Management/FRM/Storage           5,855                1,896                10,354               6,014       
Incentive
Total Utility Gross              55,269                49,353                254,688               238,342
Margin
Operation and                    30,466                28,414                88,417                82,310
maintenance expense
Depreciation and                 10,567                9,537                 30,374                28,213
amortization
Other taxes not
reflected in gross               1,191                1,063                3,497                3,381       
margin
Operating Income                 $  13,045           $  10,339           $  132,400          $  124,438 
                                                                                                                       
Net Income                       $  4,882            $  5,528            $  79,564           $  76,937  
                                                                                      
Throughput (Bcf)
Residential                      5.3                   5.0                   40.3                  35.7
Commercial, Industrial           1.0                   1.0                   7.6                   6.9
& Other
Firm Transportation              2.6                  2.3                  16.2                 13.7        
Total Firm Throughput            8.9                   8.3                   64.1                  56.3
Interruptible                    2.7                  2.4                  6.0                  7.3         
Total System                     11.6                  10.7                  70.1                  63.6
Throughput
Off System/Capacity              53.8                 31.4                 124.0                103.7       
Management
Total Throughput                 65.4                 42.1                 194.1                167.3       
                                                                                      
Customers
Residential                      418,792               408,903               418,792               408,903
Commercial, Industrial           25,108                24,901                25,108                24,901
& Other
Firm Transportation              59,796               63,521               59,796               63,521      
Total Firm Customers             503,696               497,325               503,696               497,325
Interruptible                    37                   41                   37                   41          
Total System Customers           503,733               497,366               503,733               497,366
Off System/Capacity              28                   29                   28                   29          
Management*
Total Customers                  503,761              497,395              503,761              497,395     
                                                                                                                       
*The number of customers represents those active during the last                                   
month of the period.
Degree Days
Actual                           489                   513                   5,050                 4,593
Normal                           511                  530                  4,600                4,633       
Percent of Normal                95.7        %         96.8        %         109.8       %         99.1        %
                                                                                      
                                                                                                                       

                                                                                  
ENERGY                                                                           
SERVICES
                                                                         
                       Three Months Ended                          Nine Months Ended
(Unaudited)            June 30,                                    June 30,
(Thousands,
except
customer,              2014                  2013                  2014                    2013
SREC and
megawatt)
Operating
Income
Operating              $  560,633           $  633,533           $  2,439,926           $  1,741,081
revenues
Gas                    599,773              593,730              2,311,718              1,661,362     
purchases
Gross Margin           (39,140     )         39,803                128,208                 79,719
Operation
and                    5,033                 3,595                 25,992                  10,190
maintenance
expense
Depreciation
and                    15                    10                    40                      32
amortization
Energy and             366                  416                  1,131                  956           
other taxes
Operating
(Loss)                 $  (44,554 )         $  35,782           $  101,045            $  68,541    
Income
                                                                                                               
Net (Loss)             $  (28,254 )         $  22,222           $  62,996             $  42,812    
Income
                                                                                                               
Financial              $  (8,102  )         $  7,976            $  171,156            $  45,982    
Margin
                                                                                                               
Net
Financial              $  (8,628  )         $  2,097            $  90,153             $  21,479    
(Loss)
Earnings
                                                                                                               
Gas Sold and
Managed                127.0                152.7                469.1                  458.0         
(Bcf)
                                                                                
CLEAN ENERGY                                                                     
VENTURES
                                                                                                               
Operating
Revenues
SREC sales             $   1,867             $   1,793             $   4,965               $   5,652
Electricity            618                   462                   1,319                   831
sales
Other                  670                  308                  1,723                  699           
Total
Operating              $  3,155            $  2,563            $  8,007              $  7,182     
Revenues
                                                                                                               
Depreciation
and                    $  2,823            $  2,196            $  7,969              $  6,131     
Amortization
                                                                                                               
Operating              $  (2,203  )         $  (1,988  )         $  (7,176    )         $  (5,338    )
(Loss)
                                                                                                               
Income Tax
(Provision)            $  (1,286  )         $  1,477            $  18,146             $  15,703    
Benefit
                                                                                                               
Net Income             $  5,029            $  (1,381  )         $  17,193             $  9,078     
(Loss)
                                                                                                               
Net
Financial              $  3,865            $  (1,381  )         $  20,286             $   9,078     
Earnings
(Loss)
                                                                                                  
Solar
Renewable
Energy                 23,845               19,070               50,000                 37,153        
Certificates
Generated
                                                                                                               
Solar
Renewable
Energy                 13,364               13,861               34,042                 46,223        
Certificates
Sold
                                                                                                               
Megawatts              11.3                 2.7                  18.1                   14.2          
Installed
                                                                                                               
Megawatts
Under                  16.5                 2.8                  16.5                   2.8           
Construction
                                                                                
MIDSTREAM                                                                        
                                                                                                               
Equity in
Earnings of            $  3,511            $  3,052            $   10,594             $  11,012    
Affiliates
                                                                                                               
Operation
and                    $  161              $  143              $  675                $  561       
Maintenance
Expense
                                                                                                               
Interest               $  333              $  466              $  1,108              $  1,533     
Expense
                                                                                                               
Net Income             $  1,896            $  1,541            $  5,584              $  5,600     

RETAIL AND                                                                       
OTHER
                                                                                                               
Operating              $  13,798           $  13,704           $  31,896             $  32,842    
Revenues
                                                                                                               
Operating              $  4,136            $   3,119            $   689                $   1,402     
Income
                                                                                                               
Net income             $  2,485            $  1,944            $  708                $  813       
                                                                                                               
Total
Customers as           126,038              129,805              126,038                129,805       
of June 30,
                                                                                
                                                                                                               

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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