|
Large accelerated filer:
x
|
Accelerated filer:
o
|
Non-accelerated filer:
o
|
Smaller reporting company
:
o
|
|
|
(Do not check if a smaller reporting company)
|
|
|
|
|
|
Page
|
PART I. FINANCIAL INFORMATION
|
|
||
|
ITEM 1.
|
||
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ITEM 2.
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ITEM 3.
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||
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ITEM 4.
|
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PART II. OTHER INFORMATION
|
|
||
|
ITEM 1.
|
||
|
ITEM 1A.
|
||
|
ITEM 2.
|
||
|
ITEM 6.
|
||
|
|
AFUDC
|
Allowance for Funds Used During Construction
|
AIP
|
Accelerated Infrastructure Program
|
ASC
|
Accounting Standards Codification
|
ASU
|
Accounting Standards Update
|
Bcf
|
Billion Cubic Feet
|
BGSS
|
Basic Gas Supply Service
|
BPU
|
New Jersey Board of Public Utilities
|
CIP
|
Conservation Incentive Program
|
CME
|
Chicago Mercantile Exchange
|
CR&R
|
Commercial Realty & Resources Corp.
|
Dodd-Frank Act
|
Dodd-Frank Wall Street Reform and Consumer Protection Act
|
DRP
|
NJR Direct Stock Purchase and Dividend Reinvestment Plan
|
EDA
|
New Jersey Economic Development Authority
|
EDA Bonds
|
Collectively, Series 2011A, Series 2011B and Series 2011C Bonds issued by the EDA
|
EE
|
Energy Efficiency
|
FASB
|
Financial Accounting Standards Board
|
FCM
|
Futures Commission Merchant
|
FERC
|
Federal Energy Regulatory Commission
|
FMB
|
First Mortgage Bonds
|
FRM
|
Financial Risk Management
|
GAAP
|
Generally Accepted Accounting Principles of the United States
|
ICE
|
Intercontinental Exchange
|
Iroquois
|
Iroquois Gas Transmission L.P.
|
ISDA
|
The International Swaps and Derivatives Association
|
ITC
|
Investment Tax Credit
|
JPMC Facility
|
NJNG's $100 million, four-year credit facility with JPMorgan Chase Bank, N.A. expiring in August 2015
|
JPMC Term Loan
|
NJR's $100 million, one-year term loan credit agreement with JPMorgan Chase Bank, N.A. expiring in September 2014
|
LIBOR
|
London Inter-Bank Offered Rate
|
LNG
|
Liquefied Natural Gas
|
MetLife
|
Metropolitan Life Insurance Company
|
MetLife Facility
|
NJR's unsecured, uncommitted $100 million private placement shelf note agreement with MetLife, Inc. expiring in September 2016
|
MGP
|
Manufactured Gas Plant
|
MMBtu
|
Million Metric British Thermal Unit
|
Moody's
|
Moody's Investors Service, Inc.
|
MW
|
Megawatts
|
MWh
|
Megawatt Hour
|
NAESB
|
The North American Energy Standards Board
|
NJR Credit Facility
|
NJR's $425 million unsecured committed credit facility expiring in August 2017
|
NFE
|
Net Financial Earnings
|
NGV
|
Natural Gas Vehicles
|
NJ RISE
|
New Jersey Reinvestment in System Enhancement
|
NJCEP
|
New Jersey's Clean Energy Program
|
NJDEP
|
New Jersey Department of Environmental Protection
|
GLOSSARY OF KEY TERMS (cont.)
|
|
NJNG
|
New Jersey Natural Gas Company
|
NJNG Credit Facility
|
The $250 million unsecured committed credit facility expiring in May 2019
|
NPNS
|
Normal Purchase/Normal Sale
|
NJR or The Company
|
New Jersey Resources Corporation
|
NJR Energy
|
NJR Energy Corporation
|
NJR Midstream
|
NJR Midstream Holdings Corporation
|
NJR Service
|
NJR Service Corporation
|
NJRCEV
|
NJR Clean Energy Ventures Corporation
|
NJRES
|
NJR Energy Services Company
|
NJRHS
|
NJR Home Services Company
|
Non-GAAP
|
Not in accordance with Generally Accepted Accounting Principles of the United States
|
NYMEX
|
New York Mercantile Exchange
|
O&M
|
Operating and Maintenance
|
OCI
|
Other Comprehensive Income
|
OPEB
|
Other Postemployment Benefit Plans
|
PIM
|
Pipeline Integrity Management
|
Prudential
|
Prudential Investment Management, Inc.
|
Prudential Facility
|
NJR's unsecured, uncommitted $75 million private placement shelf note agreement with Prudential
|
PTC
|
Production Tax Credit
|
RA
|
Remediation Adjustment
|
Retail and Other
|
Retail and Other Operations
|
Retail Holdings
|
NJR Retail Holdings Corporation
|
S&P
|
Standard & Poor's Financial Services LLC
|
SAFE
|
Safety Acceleration and Facility Enhancement
|
Sarbanes-Oxley
|
Sarbanes-Oxley Act of 2002
|
SAVEGREEN
|
The SAVEGREEN Project®
|
SBC
|
Societal Benefits Clause
|
SEC
|
Securities and Exchange Commission
|
SREC
|
Solar Renewable Energy Certificate
|
Steckman Ridge
|
Collectively, Steckman Ridge GP, LLC and Steckman Ridge, LP
|
Superstorm Sandy
|
Post-Tropical Cyclone Sandy
|
The Exchange Act
|
The Securities Exchange Act of 1934, as amended
|
Tetco
|
Texas Eastern Transmission
|
U.S.
|
The United States of America
|
USF
|
Universal Service Fund
|
VRDN
|
Variable Rate Demand Notes
|
•
|
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 postemployment benefit plans as a result of potential downturns in the financial markets, lower discount rates or 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;
|
•
|
regulatory approval of NJNG's planned infrastructure programs:
|
•
|
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 investment in an onshore wind developer;
|
•
|
risks associated with our investments in distributed power projects,
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, 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;
|
•
|
the level and rate at which NJNG's costs and expenses (including those related to restoration efforts resulting from
Post Tropical Cyclone Sandy, commonly referred to as 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 impact of a disallowance of recovery of environmental-related expenditures and other regulatory changes;
|
•
|
environmental-related and other litigation and other uncertainties;
|
•
|
risks related to cyber-attack or failure of information technology systems;
and
|
•
|
the impact of natural disasters, terrorist activities, and other extreme events
could adversely affect our op
erations, financial conditions and results ofoperations.
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||
|
June 30,
|
June 30,
|
||||||||||||
(Thousands, except per share data)
|
2014
|
|
2013
|
2014
|
|
2013
|
||||||||
OPERATING REVENUES
|
|
|
|
|
|
|
||||||||
Utility
|
$
|
111,383
|
|
|
$
|
119,022
|
|
$
|
739,380
|
|
|
$
|
689,621
|
|
Nonutility
|
576,874
|
|
|
648,447
|
|
2,406,851
|
|
|
1,774,752
|
|
||||
Total operating revenues
|
688,257
|
|
|
767,469
|
|
3,146,231
|
|
|
2,464,373
|
|
||||
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 maintenance
|
45,995
|
|
|
43,630
|
|
149,291
|
|
|
126,767
|
|
||||
Regulatory rider expenses
|
9,337
|
|
|
6,258
|
|
67,380
|
|
|
44,014
|
|
||||
Depreciation and amortization
|
13,620
|
|
|
11,942
|
|
39,014
|
|
|
34,966
|
|
||||
Energy and other taxes
|
9,437
|
|
|
9,397
|
|
50,894
|
|
|
50,869
|
|
||||
Total operating expenses
|
717,465
|
|
|
720,469
|
|
2,916,203
|
|
|
2,273,213
|
|
||||
OPERATING (LOSS) INCOME
|
(29,208
|
)
|
|
47,000
|
|
230,028
|
|
|
191,160
|
|
||||
Other income
|
10,952
|
|
|
1,238
|
|
12,791
|
|
|
4,284
|
|
||||
Interest expense, net of capitalized interest
|
6,507
|
|
|
6,008
|
|
19,108
|
|
|
17,579
|
|
||||
(LOSS) INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES
|
(24,763
|
)
|
|
42,230
|
|
223,711
|
|
|
177,865
|
|
||||
Income tax (benefit) provision
|
(7,808
|
)
|
|
15,297
|
|
65,377
|
|
|
51,342
|
|
||||
Equity in earnings of affiliates
|
2,681
|
|
|
2,222
|
|
8,056
|
|
|
8,307
|
|
||||
NET (LOSS) INCOME
|
$
|
(14,274
|
)
|
|
$
|
29,155
|
|
$
|
166,390
|
|
|
$
|
134,830
|
|
|
|
|
|
|
|
|
||||||||
(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 COMMON SHARE
|
$0.42
|
|
$0.40
|
$1.26
|
|
$1.20
|
||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING
|
|
|
|
|
|
|
||||||||
BASIC
|
42,117
|
|
|
41,608
|
|
42,072
|
|
|
41,697
|
|
||||
DILUTED
|
42,117
|
|
|
41,732
|
|
42,456
|
|
|
41,820
|
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||
|
June 30,
|
June 30,
|
||||||||||||
(Thousands)
|
2014
|
|
2013
|
2014
|
|
2013
|
||||||||
Net (loss) income
|
$
|
(14,274
|
)
|
|
$
|
29,155
|
|
$
|
166,390
|
|
|
$
|
134,830
|
|
Other comprehensive income, net of tax
|
|
|
|
|
|
|
||||||||
Unrealized gain on available for sale securities, net of tax of $(353), $(9), $(150), and $(235), respectively
|
$
|
511
|
|
|
$
|
13
|
|
216
|
|
|
340
|
|
||
Net unrealized gain (loss) on derivatives, net of tax of $(95) $13, $14, and $23, respectively
|
162
|
|
|
(22
|
)
|
(24
|
)
|
|
(39
|
)
|
||||
Adjustment to postemployment benefit obligation, net of tax of $(111), $(203), $(334) and $(608), respectively
|
161
|
|
|
296
|
|
483
|
|
|
1,005
|
|
||||
Other comprehensive income
|
$
|
834
|
|
|
$
|
287
|
|
675
|
|
|
1,306
|
|
||
Comprehensive (loss) income
|
$
|
(13,440
|
)
|
|
$
|
29,442
|
|
$
|
167,065
|
|
|
$
|
136,136
|
|
|
Nine Months Ended
|
||||||
|
June 30,
|
||||||
(Thousands)
|
2014
|
|
2013
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
166,390
|
|
|
$
|
134,830
|
|
Adjustments to reconcile net income to cash flows from operating activities:
|
|
|
|
||||
Unrealized loss (gain) on derivative instruments
|
45,810
|
|
|
(23,683
|
)
|
||
Depreciation and amortization
|
39,014
|
|
|
34,966
|
|
||
Allowance for equity used during construction
|
(1,154
|
)
|
|
(1,926
|
)
|
||
Allowance for bad debt expense
|
1,685
|
|
|
1,829
|
|
||
Deferred income taxes
|
21,226
|
|
|
23,406
|
|
||
Manufactured gas plant remediation costs
|
(3,391
|
)
|
|
(5,326
|
)
|
||
Equity in earnings of equity investees, net of distributions received
|
1,364
|
|
|
(1,050
|
)
|
||
Cost of removal - asset retirement obligations
|
(257
|
)
|
|
(926
|
)
|
||
Contributions to postemployment benefit plans
|
(3,618
|
)
|
|
(24,538
|
)
|
||
Changes in:
|
|
|
|
||||
Components of working capital
|
83,223
|
|
|
(22,092
|
)
|
||
Other noncurrent assets
|
15,735
|
|
|
(2,607
|
)
|
||
Other noncurrent liabilities
|
10,434
|
|
|
12,256
|
|
||
Cash flows from operating activities
|
376,461
|
|
|
125,139
|
|
||
CASH FLOWS (USED IN) INVESTING ACTIVITIES
|
|
|
|
||||
Expenditures for
|
|
|
|
||||
Utility plant
|
(90,381
|
)
|
|
(73,654
|
)
|
||
Solar and wind equipment
|
(91,569
|
)
|
|
(39,756
|
)
|
||
Real estate properties and other
|
(636
|
)
|
|
(532
|
)
|
||
Cost of removal
|
(18,690
|
)
|
|
(21,186
|
)
|
||
Distribution from equity investees in excess of equity in earnings
|
1,344
|
|
|
2,107
|
|
||
Proceeds from sale of asset
|
6,010
|
|
|
—
|
|
||
Withdrawal from restricted cash construction fund
|
100
|
|
|
—
|
|
||
Proceeds from sale of available-for-sale securities
|
—
|
|
|
482
|
|
||
Cash flows (used in) investing activities
|
(193,822
|
)
|
|
(132,539
|
)
|
||
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES
|
|
|
|
||||
Proceeds from issuance of common stock
|
12,161
|
|
|
10,581
|
|
||
Tax benefit from stock options exercised
|
348
|
|
|
110
|
|
||
Proceeds from sale-leaseback transaction
|
7,576
|
|
|
7,076
|
|
||
Proceeds from long-term debt
|
125,000
|
|
|
50,000
|
|
||
Payments of long-term debt
|
(78,964
|
)
|
|
(5,808
|
)
|
||
Purchases of treasury stock
|
(4,387
|
)
|
|
(23,689
|
)
|
||
Payments of common stock dividends
|
(52,922
|
)
|
|
(50,619
|
)
|
||
Net (payments) proceeds from short-term debt
|
(191,100
|
)
|
|
17,100
|
|
||
Cash flows (used in) from financing activities
|
(182,288
|
)
|
|
4,751
|
|
||
Change in cash and cash equivalents
|
351
|
|
|
(2,649
|
)
|
||
Cash and cash equivalents at beginning of period
|
2,969
|
|
|
4,509
|
|
||
Cash and cash equivalents at end of period
|
$
|
3,320
|
|
|
$
|
1,860
|
|
CHANGES IN COMPONENTS OF WORKING CAPITAL
|
|
|
|
||||
Receivables
|
$
|
(37,575
|
)
|
|
$
|
(120,719
|
)
|
Inventories
|
100,021
|
|
|
(24,792
|
)
|
||
Recovery of gas costs
|
(5,725
|
)
|
|
4,994
|
|
||
Gas purchases payable
|
3,367
|
|
|
86,932
|
|
||
Prepaid and accrued taxes
|
28,404
|
|
|
20,059
|
|
||
Accounts payable and other
|
8,439
|
|
|
(6,385
|
)
|
||
Restricted broker margin accounts
|
(19,045
|
)
|
|
26,760
|
|
||
Customers' credit balances and deposits
|
(4,738
|
)
|
|
(30,899
|
)
|
||
Other current assets
|
10,075
|
|
|
21,958
|
|
||
Total
|
$
|
83,223
|
|
|
$
|
(22,092
|
)
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
|
|
|
|
||||
Cash paid for:
|
|
|
|
||||
Interest (net of amounts capitalized)
|
$
|
12,419
|
|
|
$
|
11,121
|
|
Income taxes
|
$
|
12,782
|
|
|
$
|
9,539
|
|
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING ACTIVITIES
|
|
|
|
||||
Accrued capital expenditures
|
$
|
14,317
|
|
|
$
|
(9,734
|
)
|
(Thousands)
|
June 30,
2014 |
September 30,
2013 |
||||
PROPERTY, PLANT AND EQUIPMENT
|
|
|
||||
Utility plant, at cost
|
$
|
1,774,424
|
|
$
|
1,681,585
|
|
Construction work in progress
|
119,012
|
|
114,961
|
|
||
Solar and wind equipment, real estate properties and other, at cost
|
321,591
|
|
249,516
|
|
||
Construction work in progress
|
41,123
|
|
9,093
|
|
||
Total property, plant and equipment
|
2,256,150
|
|
2,055,155
|
|
||
Accumulated depreciation and amortization, utility plant
|
(401,713
|
)
|
(383,895
|
)
|
||
Accumulated depreciation and amortization, solar and wind equipment, real estate properties and other
|
(36,738
|
)
|
(28,144
|
)
|
||
Property, plant and equipment, net
|
1,817,699
|
|
1,643,116
|
|
||
CURRENT ASSETS
|
|
|
||||
Cash and cash equivalents
|
3,320
|
|
2,969
|
|
||
Customer accounts receivable
|
|
|
||||
Billed
|
276,409
|
|
240,281
|
|
||
Unbilled revenues
|
7,464
|
|
7,429
|
|
||
Allowance for doubtful accounts
|
(5,603
|
)
|
(5,330
|
)
|
||
Regulatory assets
|
28,064
|
|
34,372
|
|
||
Gas in storage, at average cost
|
219,859
|
|
314,477
|
|
||
Materials and supplies, at average cost
|
8,931
|
|
14,334
|
|
||
Prepaid and accrued taxes
|
24,607
|
|
42,645
|
|
||
Derivatives, at fair value
|
52,619
|
|
53,327
|
|
||
Restricted broker margin accounts
|
27,904
|
|
6,581
|
|
||
Deferred taxes
|
21,983
|
|
8,432
|
|
||
Asset held for sale
|
—
|
|
5,428
|
|
||
Other
|
29,898
|
|
20,953
|
|
||
Total current assets
|
695,455
|
|
745,898
|
|
||
NONCURRENT ASSETS
|
|
|
||||
Investments in equity investees
|
160,403
|
|
161,591
|
|
||
Prepaid pension asset
|
6,045
|
|
6,287
|
|
||
Regulatory assets
|
369,517
|
|
402,202
|
|
||
Derivatives, at fair value
|
2,830
|
|
2,761
|
|
||
Other
|
53,958
|
|
42,928
|
|
||
Total noncurrent assets
|
592,753
|
|
615,769
|
|
||
Total assets
|
$
|
3,105,907
|
|
$
|
3,004,783
|
|
(Thousands)
|
June 30,
2014 |
September 30,
2013 |
||||
CAPITALIZATION
|
|
|
||||
Common stock, $2.50 par value; authorized 75,000,000 shares;
outstanding June 30, 2014-42,167,558; September 30, 2013-41,961,534 |
$
|
112,777
|
|
$
|
112,563
|
|
Premium on common stock
|
304,731
|
|
300,196
|
|
||
Accumulated other comprehensive (loss), net of tax
|
(946
|
)
|
(1,621
|
)
|
||
Treasury stock at cost and other;
shares June 30, 2014-2,943,373; September 30, 2013-3,060,356 |
(121,727
|
)
|
(128,638
|
)
|
||
Retained earnings
|
718,250
|
|
604,884
|
|
||
Common stock equity
|
1,013,085
|
|
887,384
|
|
||
Long-term debt
|
626,796
|
|
512,886
|
|
||
Total capitalization
|
1,639,881
|
|
1,400,270
|
|
||
CURRENT LIABILITIES
|
|
|
||||
Current maturities of long-term debt
|
9,455
|
|
68,643
|
|
||
Short-term debt
|
174,500
|
|
365,600
|
|
||
Gas purchases payable
|
258,180
|
|
254,813
|
|
||
Accounts payable and other
|
82,329
|
|
60,342
|
|
||
Dividends payable
|
17,709
|
|
17,624
|
|
||
Deferred and accrued taxes
|
12,330
|
|
4,040
|
|
||
Regulatory liabilities
|
11,710
|
|
1,456
|
|
||
New Jersey clean energy program
|
15,429
|
|
14,532
|
|
||
Derivatives, at fair value
|
78,549
|
|
40,390
|
|
||
Broker margin accounts
|
2,278
|
|
—
|
|
||
Customers' credit balances and deposits
|
19,655
|
|
24,393
|
|
||
Total current liabilities
|
682,124
|
|
851,833
|
|
||
NONCURRENT LIABILITIES
|
|
|
||||
Deferred income taxes
|
410,130
|
|
372,773
|
|
||
Deferred investment tax credits
|
5,342
|
|
5,584
|
|
||
Deferred revenue
|
4,222
|
|
4,763
|
|
||
Derivatives, at fair value
|
5,517
|
|
2,458
|
|
||
Manufactured gas plant remediation
|
183,600
|
|
183,600
|
|
||
Postemployment employee benefit liability
|
68,697
|
|
67,897
|
|
||
Regulatory liabilities
|
69,120
|
|
79,647
|
|
||
Asset retirement obligation
|
29,935
|
|
28,711
|
|
||
Other
|
7,339
|
|
7,247
|
|
||
Total noncurrent liabilities
|
783,902
|
|
752,680
|
|
||
Commitments and contingent liabilities (Note 12)
|
|
|
|
|||
Total capitalization and liabilities
|
$
|
3,105,907
|
|
$
|
3,004,783
|
|
1.
|
NATURE OF THE BUSINESS
|
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
|
June 30,
2014 |
September 30,
2013 |
||||||||||
($ in thousands)
|
Gas in Storage
|
|
Bcf
|
Gas in Storage
|
|
Bcf
|
||||||
NJNG
|
|
$
|
48,279
|
|
12.1
|
|
|
$
|
104,979
|
|
20.4
|
|
NJRES
|
|
171,580
|
|
41.8
|
|
|
209,498
|
|
62.3
|
|
||
Total
|
|
$
|
219,859
|
|
53.9
|
|
|
$
|
314,477
|
|
82.7
|
|
(Thousands)
|
June 30,
2014 |
|
September 30,
2013 |
||||||||
NJRES
|
$
|
186,014
|
|
67
|
%
|
|
$
|
194,263
|
|
81
|
%
|
NJNG
(1)
|
85,579
|
|
31
|
|
|
43,045
|
|
18
|
|
||
NJRCEV
|
480
|
|
—
|
|
|
293
|
|
—
|
|
||
NJRHS and other
|
4,336
|
|
2
|
|
|
2,680
|
|
1
|
|
||
Total
|
$
|
276,409
|
|
100
|
%
|
|
$
|
240,281
|
|
100
|
%
|
(1)
|
Does not include unbilled revenues of
$7.5 million
and
$7.4 million
as of
June 30, 2014
and
September 30, 2013
, respectively.
|
3.
|
REGULATION
|
(Thousands)
|
June 30,
2014 |
September 30,
2013 |
||||
Regulatory assets-current
|
|
|
||||
Conservation Incentive Program
|
$
|
—
|
|
$
|
18,887
|
|
Underrecovered gas costs
|
12,635
|
|
953
|
|
||
New Jersey Clean Energy Program
|
15,429
|
|
14,532
|
|
||
Total current
|
$
|
28,064
|
|
$
|
34,372
|
|
Regulatory assets-noncurrent
|
|
|
||||
Environmental remediation costs
|
|
|
||||
Expended, net of recoveries
|
$
|
31,284
|
|
$
|
46,968
|
|
Liability for future expenditures
|
183,600
|
|
183,600
|
|
||
Deferred income taxes
|
10,718
|
|
10,718
|
|
||
Derivatives at fair value, net
|
—
|
|
19
|
|
||
SAVEGREEN
|
26,054
|
|
30,004
|
|
||
Postemployment and other benefit costs
|
96,337
|
|
101,415
|
|
||
Deferred Superstorm Sandy costs
|
15,207
|
|
14,822
|
|
||
Other
|
6,317
|
|
14,656
|
|
||
Total noncurrent
|
$
|
369,517
|
|
$
|
402,202
|
|
Regulatory liability-current
|
|
|
||||
Conservation Incentive Program
|
$
|
5,958
|
|
$
|
—
|
|
Derivatives at fair value, net
|
5,752
|
|
1,456
|
|
||
Total current
|
$
|
11,710
|
|
$
|
1,456
|
|
Regulatory liabilities-noncurrent
|
|
|
||||
Cost of removal obligation
|
$
|
69,000
|
|
$
|
79,315
|
|
Derivatives at fair value, net
|
3
|
|
—
|
|
||
Other
|
117
|
|
332
|
|
||
Total noncurrent
|
$
|
69,120
|
|
$
|
79,647
|
|
•
|
On
September 18, 2013
, the BPU approved NJNG's filing to reduce the USF recovery rate resulting in a
.5 percent
decrease for the average residential heat customer's bill effective
October 1, 2013
.
|
•
|
On
October 16, 2013
, the BPU provisionally approved NJNG’s fiscal 2014 BGSS/CIP filing to maintain its current BGSS rate along with reductions to its CIP factors effective
November 1, 2013
, which resulted in a
1 percent
reduction to an average residential heat customer's bill. On
November 21, 2013
, NJNG notified the BPU of its intent to reduce its BGSS rate, effective
December 1, 2013
, resulting in a
6 percent
decrease to the average residential heat customer's bill. On
July 23, 2014
, the BPU approved these rates on a final basis.
|
•
|
On
November 22, 2013
, the BPU provisionally approved a Stipulation of Settlement for SBC factors that included recovery of MGP expenditures through
June 30, 2013
and a
.2 percent
reduction to the average residential heat customer's bill related to the SBC RA factor to recover
$18.7 million
annually, and a
1.9 percent
increase related to its NJCEP factor, effective
December 1, 2013
. On
July 23, 2014
, the BPU approved these rates on a final basis.
|
•
|
On
December 18, 2013
, the BPU approved a gas service agreement which will allow NJNG to provide transportation service to Red Oak Power, LLC, an electric generation facility, through
September 2022
.
|
•
|
On April 23, 2014, the BPU approved a petition filed by NJNG requesting authorization over a
three
-year period to issue up to
$300 million
of medium-term notes with a maturity of not more than
30 years
, renew its revolving credit facility expiring August 2014 for up to
five years
, enter into interest rate risk management transactions related to debt securities and redeem, refinance or defease any of NJNG’s outstanding long-term debt securities.
|
•
|
On
May 21, 2014
, the BPU approved the continuation of the CIP program with no expiration date; however, it will be subject to review in a rate filing in 2017.
|
•
|
On
June 2, 2014
, NJNG submitted its fiscal 2015 BGSS/CIP filing, which proposes a
4.3 percent
reduction to an average residential heat customer's bill related to the CIP factor for fiscal 2015.
|
•
|
On
June 2, 2014
, NJNG submitted an EE rate filing for the recovery of SAVEGREEN costs, which proposes to maintain the existing rate.
|
•
|
On
June 20, 2014
, NJNG submitted its annual USF compliance filing proposing to increase the statewide USF rate, resulting in a
.4 percent
increase to the average residential heat customer’s bill effective
October 1, 2014
.
|
•
|
On
July 23, 2014
, the BPU approved a Stipulation of Settlement related to the NJ RISE capital infrastructure program. 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. In May 2015, NJNG will submit a filing to recover costs through July 31, 2015, associated with NJ RISE, through an adjustment to base rates as of November 1, 2015. Additional cost recovery will be included in NJNG’s next base rate case scheduled to be filed no later than
November 15, 2015
.
|
4.
|
DERIVATIVE INSTRUMENTS
|
(Thousands)
|
Amounts Presented in Balance Sheets
(1)
|
Offsetting Derivative Instruments
(2)
|
Financial Collateral Received/Pledged
(3)
|
Net Amounts
(4)
|
||||||||||||
As of June 30, 2014:
|
|
|
|
|
|
|
|
|
||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
||||||||
NJRES
|
|
|
|
|
|
|
|
|
||||||||
Physical forward commodity contracts
|
|
$
|
12,304
|
|
|
$
|
(7,261
|
)
|
|
$
|
—
|
|
|
$
|
5,043
|
|
Financial commodity contracts
|
|
35,189
|
|
|
(35,189
|
)
|
|
—
|
|
|
—
|
|
||||
Foreign currency contracts
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
||||
Total NJRES
|
|
$
|
47,494
|
|
|
$
|
(42,451
|
)
|
|
$
|
—
|
|
|
$
|
5,043
|
|
NJNG
|
|
|
|
|
|
|
|
|
||||||||
Financial commodity contracts
|
|
$
|
7,955
|
|
|
$
|
(2,201
|
)
|
|
$
|
1,256
|
|
|
$
|
7,010
|
|
Derivative liabilities:
|
|
|
|
|
|
|
|
|
||||||||
NJRES
|
|
|
|
|
|
|
|
|
||||||||
Physical forward commodity contracts
|
|
$
|
37,344
|
|
|
$
|
(7,958
|
)
|
|
$
|
(500
|
)
|
|
$
|
28,886
|
|
Financial commodity contracts
|
|
44,492
|
|
|
(35,189
|
)
|
|
(9,301
|
)
|
|
2
|
|
||||
Foreign currency contracts
|
|
29
|
|
|
(1
|
)
|
|
—
|
|
|
28
|
|
||||
Total NJRES
|
|
$
|
81,865
|
|
|
$
|
(43,148
|
)
|
|
$
|
(9,801
|
)
|
|
$
|
28,916
|
|
NJNG
|
|
|
|
|
|
|
|
|
||||||||
Financial commodity contracts
|
|
$
|
2,201
|
|
|
$
|
(2,201
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
As of September 30, 2013:
|
|
|
|
|
|
|
|
|
||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
||||||||
NJRES
|
|
|
|
|
|
|
|
|
||||||||
Physical forward commodity contracts
|
|
$
|
11,823
|
|
|
$
|
(3,549
|
)
|
|
$
|
(100
|
)
|
|
$
|
8,174
|
|
Financial commodity contracts
|
|
40,626
|
|
|
(26,063
|
)
|
|
6,870
|
|
|
21,433
|
|
||||
Foreign currency contracts
|
|
16
|
|
|
(5
|
)
|
|
—
|
|
|
11
|
|
||||
Total NJRES
|
|
$
|
52,465
|
|
|
$
|
(29,617
|
)
|
|
$
|
6,770
|
|
|
$
|
29,618
|
|
NJNG
|
|
|
|
|
|
|
|
|
||||||||
Financial commodity contracts
|
|
$
|
3,623
|
|
|
$
|
(2,185
|
)
|
|
$
|
214
|
|
|
$
|
1,652
|
|
Derivative liabilities:
|
|
|
|
|
|
|
|
|
||||||||
NJRES
|
|
|
|
|
|
|
|
|
||||||||
Physical forward commodity contracts
|
|
$
|
14,595
|
|
|
$
|
(3,549
|
)
|
|
$
|
(500
|
)
|
|
$
|
10,546
|
|
Financial commodity contracts
|
|
26,063
|
|
|
(26,063
|
)
|
|
—
|
|
|
—
|
|
||||
Foreign currency contracts
|
|
5
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
||||
Total NJRES
|
|
$
|
40,663
|
|
|
$
|
(29,617
|
)
|
|
$
|
(500
|
)
|
|
$
|
10,546
|
|
NJNG
|
|
|
|
|
|
|
|
|
||||||||
Financial commodity contracts
|
|
$
|
2,185
|
|
|
$
|
(2,185
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
Derivative assets and liabilities are presented on a gross basis in the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20.
|
(2)
|
Offsetting derivative instruments include: transactions with NAESB netting election, transactions held by FCM's with net margining and transactions with ISDA netting.
|
(3)
|
Financial collateral includes cash balances at FCM's as well as cash received from or pledged to other counterparties.
|
(4)
|
Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.
|
(1)
|
The settlement of foreign currency transactions over the next twelve months is expected to result in the reclassification of
$(28,000)
from OCI into earnings. The maximum tenor is
April 2015
.
|
|
|
|
Volume (Bcf)
|
|||
|
|
|
June 30,
2014 |
September 30,
2013 |
||
NJNG
|
Futures
|
|
15.3
|
|
22.6
|
|
NJRES
|
Futures
|
|
(59.3
|
)
|
(64.2
|
)
|
|
Options
|
|
0.6
|
|
1.5
|
|
|
Physical
|
|
33.0
|
|
7.3
|
|
(Thousands)
|
Balance Sheet Location
|
June 30,
2014 |
September 30,
2013 |
||||
NJNG
|
Broker margin - Current assets
|
$
|
—
|
|
$
|
213
|
|
NJNG
|
Broker margin - Current (liabilities)
|
$
|
(2,278
|
)
|
$
|
—
|
|
NJRES
|
Broker margin - Current assets
|
$
|
27,904
|
|
$
|
6,368
|
|
(Thousands)
|
Gross Credit Exposure
|
||||
Investment grade
|
|
$
|
172,089
|
|
|
Noninvestment grade
|
|
8,977
|
|
|
|
Internally rated investment grade
|
|
16,072
|
|
|
|
Internally rated noninvestment grade
|
|
13,262
|
|
|
|
Total
|
|
$
|
210,400
|
|
|
5.
|
FAIR VALUE
|
(Thousands)
|
June 30,
2014 |
September 30,
2013 |
||||
Carrying value
|
$
|
582,845
|
|
$
|
529,845
|
|
Fair market value
|
$
|
616,071
|
|
$
|
556,518
|
|
Level 1
|
Unadjusted quoted prices for identical assets or liabilities in active markets. NJR's Level 1 assets and liabilities include exchange traded futures and options contracts, listed equities, and money market funds.
Exchange traded futures and options contracts include all energy contracts traded on the NYMEX/CME and ICE that NJR refers internally to as basis swaps, fixed swaps, futures and options that are cleared through a FCM.
|
Level 2
|
Other significant observable inputs such as interest rates or
price data, including both commodity and basis pricing that is observed either directly or indirectly from publications or pricing services. NJR's Level 2 assets and liabilities include over-the-counter physical forward commodity contracts and swap contracts or derivatives that are initially valued using observable quotes and are subsequently adjusted to include time value, credit risk or estimated transport pricing components for which no basis price is available.
Level 2 financial derivatives consist of transactions with
|
Level 3
|
Inputs derived from a significant amount of unobservable market data; these include NJR's best estimate of fair value and are derived primarily through the use of internal valuation methodologies.
|
|
Quoted Prices in Active Markets for Identical Assets
|
Significant Other Observable Inputs
|
Significant
Unobservable
Inputs
|
|
||||||||||||||
(Thousands)
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Total
|
||||||||||||||
As of June 30, 2014:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Physical forward commodity contracts
|
|
$
|
—
|
|
|
|
$
|
12,304
|
|
|
|
$
|
—
|
|
|
$
|
12,304
|
|
Financial derivative contracts - natural gas
|
|
43,144
|
|
|
|
—
|
|
|
|
—
|
|
|
43,144
|
|
||||
Financial derivative contracts - foreign exchange
|
|
—
|
|
|
|
1
|
|
|
|
—
|
|
|
1
|
|
||||
Available for sale equity securities - energy industry
(1)
|
|
12,082
|
|
|
|
—
|
|
|
|
—
|
|
|
12,082
|
|
||||
Other
(2)
|
|
1,373
|
|
|
|
—
|
|
|
|
—
|
|
|
1,373
|
|
||||
Total assets at fair value
|
|
$
|
56,599
|
|
|
|
$
|
12,305
|
|
|
|
$
|
—
|
|
|
$
|
68,904
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Physical forward commodity contracts
|
|
$
|
—
|
|
|
|
$
|
37,344
|
|
|
|
$
|
—
|
|
|
$
|
37,344
|
|
Financial derivative contracts - natural gas
|
|
46,693
|
|
|
|
—
|
|
|
|
—
|
|
|
46,693
|
|
||||
Financial derivative contracts - foreign exchange
|
|
—
|
|
|
|
29
|
|
|
|
—
|
|
|
29
|
|
||||
Total liabilities at fair value
|
|
$
|
46,693
|
|
|
|
$
|
37,373
|
|
|
|
$
|
—
|
|
|
$
|
84,066
|
|
As of September 30, 2013:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Physical forward commodity contracts
|
|
$
|
—
|
|
|
|
$
|
11,823
|
|
|
|
$
|
—
|
|
|
$
|
11,823
|
|
Financial derivative contracts - natural gas
|
|
44,249
|
|
|
|
—
|
|
|
|
—
|
|
|
44,249
|
|
||||
Financial derivative contracts - foreign exchange
|
|
—
|
|
|
|
16
|
|
|
|
—
|
|
|
16
|
|
||||
Available for sale equity securities - energy industry
(1)
|
|
11,716
|
|
|
|
—
|
|
|
|
—
|
|
|
11,716
|
|
||||
Other
(2)
|
|
1,129
|
|
|
|
—
|
|
|
|
—
|
|
|
1,129
|
|
||||
Total assets at fair value
|
|
$
|
57,094
|
|
|
|
$
|
11,839
|
|
|
|
$
|
—
|
|
|
$
|
68,933
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Physical forward commodity contracts
|
|
$
|
—
|
|
|
|
$
|
14,595
|
|
|
|
$
|
—
|
|
|
$
|
14,595
|
|
Financial derivative contracts - natural gas
|
|
28,248
|
|
|
|
—
|
|
|
|
—
|
|
|
28,248
|
|
||||
Financial derivative contracts - foreign exchange
|
|
—
|
|
|
|
5
|
|
|
|
—
|
|
|
5
|
|
||||
Total liabilities at fair value
|
|
$
|
28,248
|
|
|
|
$
|
14,600
|
|
|
|
$
|
—
|
|
|
$
|
42,848
|
|
(1)
|
Included in Other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets.
|
(2)
|
Includes various money market funds.
|
6.
|
INVESTMENTS IN EQUITY INVESTEES
|
(Thousands)
|
June 30,
2014 |
September 30,
2013 |
||||
Steckman Ridge
|
$
|
128,255
|
|
$
|
129,707
|
|
Iroquois
|
24,257
|
|
23,084
|
|
||
Total
|
$
|
152,512
|
|
$
|
152,791
|
|
7.
|
EARNINGS PER SHARE
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
June 30,
|
June 30,
|
||||||||||
(Thousands, except per share amounts)
|
2014
|
2013
|
2014
|
2013
|
||||||||
Net (loss) income
|
$
|
(14,274
|
)
|
$
|
29,155
|
|
$
|
166,390
|
|
$
|
134,830
|
|
Basic earnings per share
|
|
|
|
|
||||||||
Weighted average shares of common stock outstanding-basic
|
42,117
|
|
41,608
|
|
42,072
|
|
41,697
|
|
||||
Basic (loss) earnings per common share
|
$(0.34)
|
$0.70
|
$3.95
|
$3.23
|
||||||||
Diluted earnings per share
|
|
|
|
|
||||||||
Weighted average shares of common stock outstanding-basic
|
42,117
|
|
41,608
|
|
42,072
|
|
41,697
|
|
||||
Incremental shares
(1)
|
—
|
|
124
|
|
384
|
|
123
|
|
||||
Weighted average shares of common stock outstanding-diluted
|
42,117
|
|
41,732
|
|
42,456
|
|
41,820
|
|
||||
Diluted earnings per common share
(2)
|
$(0.34)
|
$0.70
|
$3.92
|
$3.22
|
(1)
|
Incremental shares consist of stock options, stock awards and performance shares.
|
(2)
|
Since there was a net loss for the three months ended
June 30, 2014
, incremental shares of
384
were not included in the computation of diluted loss per common share, as their effect would have been anti-dilutive.
There were
no
anti-dilutive shares excluded from the calculation of diluted earnings per share for the
nine months ended
June 30, 2014
, and for the t
hree and
nine months ended
June 30, 2013
.
|
8.
|
COMMON STOCK EQUITY
|
(Thousands)
|
Number of Shares
|
Common Stock
|
Premium on Common Stock
|
Accumulated Other Comprehensive (Loss) Income
|
Treasury Stock And Other
|
Retained Earnings
|
Total
|
|||||||||||||||
Balance as of September 30, 2013
|
41,962
|
|
$
|
112,563
|
|
$
|
300,196
|
|
|
$
|
(1,621
|
)
|
|
$
|
(128,638
|
)
|
$
|
604,884
|
|
$
|
887,384
|
|
Net income
|
|
|
|
|
|
|
|
166,390
|
|
166,390
|
|
|||||||||||
Other comprehensive income
|
|
|
|
|
675
|
|
|
|
|
675
|
|
|||||||||||
Common stock issued under stock plans
|
324
|
|
214
|
|
4,187
|
|
|
|
|
9,685
|
|
|
14,086
|
|
||||||||
Tax benefits from stock plans
|
|
|
348
|
|
|
|
|
|
|
348
|
|
|||||||||||
Cash dividend declared ($1.26 per share)
|
|
|
|
|
|
|
|
(53,024
|
)
|
(53,024
|
)
|
|||||||||||
Treasury stock and other
|
(118
|
)
|
|
|
|
|
|
(2,774
|
)
|
|
(2,774
|
)
|
||||||||||
Balance as of June 30, 2014
|
42,168
|
|
$
|
112,777
|
|
$
|
304,731
|
|
|
$
|
(946
|
)
|
|
$
|
(121,727
|
)
|
$
|
718,250
|
|
$
|
1,013,085
|
|
(Thousands)
|
Available for Sale Securities
|
Cash Flow Hedges
|
Postemployment Benefit Obligation
|
Total
|
|||||||||||
Balance as of September 30, 2013
|
$
|
5,400
|
|
|
$
|
12
|
|
|
$
|
(7,033
|
)
|
|
$
|
(1,621
|
)
|
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss), before reclassifications, net of tax of $(150), $91, $0, $(59)
|
216
|
|
|
(156
|
)
|
|
—
|
|
|
60
|
|
||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(77), $(334), $(411)
|
—
|
|
|
132
|
|
(1)
|
483
|
|
(2)
|
615
|
|
||||
Net current-period other comprehensive income (loss), net of tax of $(150), $14, $(334), $(470)
|
216
|
|
|
(24
|
)
|
|
483
|
|
|
675
|
|
||||
Balance as of June 30, 2014
|
$
|
5,616
|
|
|
$
|
(12
|
)
|
|
$
|
(6,550
|
)
|
|
$
|
(946
|
)
|
|
|
|
|
|
|
|
|
||||||||
Balance as of September 30, 2012
|
$
|
4,921
|
|
|
$
|
51
|
|
|
$
|
(15,743
|
)
|
|
$
|
(10,771
|
)
|
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss), before reclassifications, net of tax of $(390), $31, $0, $(359)
|
565
|
|
|
(54
|
)
|
|
—
|
|
|
511
|
|
||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $155, $(8) $(608), $(461)
|
(225
|
)
|
|
15
|
|
(1)
|
1,005
|
|
(2)
|
795
|
|
||||
Net current-period other comprehensive income (loss), net of tax of $(235), $23, $(608), $(820)
|
340
|
|
|
(39
|
)
|
|
1,005
|
|
|
1,306
|
|
||||
Balance as of June 30, 2013
|
$
|
5,261
|
|
|
$
|
12
|
|
|
$
|
(14,738
|
)
|
|
$
|
(9,465
|
)
|
(1)
|
Consists of realized losses related to foreign currency derivatives, which are reclassified to gas purchases in the Unaudited Condensed Consolidated Statements of Operations.
|
(2)
|
Included in the computation of net periodic pension cost, a component of operations and maintenance expense in the Unaudited Condensed Consolidated Statements of Operations.
|
9.
|
DEBT
|
(Thousands)
|
June 30,
2014 |
|
September 30,
2013 |
|
Expiration Dates
|
||||
NJR
|
|
|
|
|
|
||||
Bank revolving credit facility
(1)
|
$
|
425,000
|
|
|
$
|
325,000
|
|
|
August 2017
|
Notes outstanding at end of period
|
$
|
93,500
|
|
|
$
|
97,000
|
|
|
|
Weighted average interest rate at end of period
|
1.16
|
%
|
|
1.00
|
%
|
|
|
||
Amount available at end of period
(2)
|
$
|
304,830
|
|
|
$
|
210,110
|
|
|
|
Bank term loan
(3)
|
$
|
100,000
|
|
|
$
|
100,000
|
|
|
September 2014
|
Loan outstanding at end of period
|
$
|
—
|
|
|
$
|
100,000
|
|
|
|
Weighted average interest rate at end of period
|
—
|
%
|
|
0.74
|
%
|
|
|
||
Amount available at end of period
|
$
|
100,000
|
|
|
$
|
—
|
|
|
|
Bank letter of credit facility
(3) (4)
|
$
|
—
|
|
|
$
|
10,000
|
|
|
June 2014
|
NJNG
|
|
|
|
|
|
||||
Bank credit facility dedicated to EDA Bonds
(1) (4)
|
$
|
100,000
|
|
|
$
|
100,000
|
|
|
August 2015
|
Bank revolving credit facility
(1)
|
$
|
250,000
|
|
|
$
|
250,000
|
|
|
May 2019
|
Commercial paper outstanding at end of period
|
$
|
81,000
|
|
|
$
|
168,600
|
|
|
|
Weighted average interest rate at end of period
|
0.11
|
%
|
|
0.13
|
%
|
|
|
||
Amount available at end of period
(5)
|
$
|
168,269
|
|
|
$
|
81,400
|
|
|
|
(1)
|
Committed credit facilities, which require commitment fees on the unused amounts.
|
(2)
|
Letters of credit outstanding total
$26.7 million
and
$17.9 million
as of
June 30, 2014
and
September 30, 2013
, respectively, which reduces amount available by the same amount.
|
(3)
|
Uncommitted, expired on June 5, 2014.
|
(4)
|
There were no borrowings outstanding as of
June 30, 2014
and
September 30, 2013
, respectively.
|
(5)
|
Letters of credit outstanding total
$731,000
and
$266,000
as of
June 30, 2014
and
September 30, 2013
, respectively, which reduces the amount available by the same amount.
|
10.
|
EMPLOYEE BENEFIT PLANS
|
|
Pension
|
OPEB
|
||||||||||||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||||||||
|
June 30,
|
June 30,
|
June 30,
|
June 30,
|
||||||||||||||||||||
(Thousands)
|
2014
|
2013
|
2014
|
2013
|
2014
|
2013
|
2014
|
2013
|
||||||||||||||||
Service cost
|
$
|
1,536
|
|
$
|
1,718
|
|
$
|
4,608
|
|
$
|
5,154
|
|
$
|
980
|
|
$
|
1,171
|
|
$
|
2,942
|
|
$
|
3,513
|
|
Interest cost
|
2,517
|
|
2,235
|
|
7,550
|
|
6,705
|
|
1,434
|
|
1,287
|
|
4,300
|
|
3,861
|
|
||||||||
Expected return on plan assets
|
(3,869
|
)
|
(3,706
|
)
|
(11,607
|
)
|
(11,118
|
)
|
(1,043
|
)
|
(913
|
)
|
(3,130
|
)
|
(2,739
|
)
|
||||||||
Recognized actuarial loss
|
1,399
|
|
1,911
|
|
4,197
|
|
5,733
|
|
625
|
|
964
|
|
1,875
|
|
2,892
|
|
||||||||
Prior service cost amortization
|
27
|
|
27
|
|
83
|
|
81
|
|
(89
|
)
|
(281
|
)
|
(267
|
)
|
(267
|
)
|
||||||||
Recognized net initial obligation
|
—
|
|
—
|
|
—
|
|
—
|
|
3
|
|
199
|
|
8
|
|
21
|
|
||||||||
Net periodic benefit cost
|
$
|
1,610
|
|
$
|
2,185
|
|
$
|
4,831
|
|
$
|
6,555
|
|
$
|
1,910
|
|
$
|
2,427
|
|
$
|
5,728
|
|
$
|
7,281
|
|
11.
|
INCOME TAXES
|
12.
|
COMMITMENTS AND CONTINGENT LIABILITIES
|
(Thousands)
|
2014
|
2015
|
2016
|
2017
|
2018
|
Thereafter
|
||||||||||||
NJRES:
|
|
|
|
|
|
|
||||||||||||
Natural gas purchases
|
$
|
252,840
|
|
$
|
179,692
|
|
$
|
15,790
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Storage demand fees
|
8,812
|
|
26,813
|
|
10,363
|
|
5,608
|
|
3,500
|
|
4,381
|
|
||||||
Pipeline demand fees
|
19,061
|
|
45,117
|
|
34,142
|
|
18,221
|
|
12,541
|
|
7,173
|
|
||||||
Sub-total NJRES
|
$
|
280,713
|
|
$
|
251,622
|
|
$
|
60,295
|
|
$
|
23,829
|
|
$
|
16,041
|
|
$
|
11,554
|
|
NJNG:
|
|
|
|
|
|
|
||||||||||||
Natural gas purchases
|
$
|
27,690
|
|
$
|
106,985
|
|
$
|
5,937
|
|
$
|
113
|
|
$
|
—
|
|
$
|
—
|
|
Storage demand fees
|
6,498
|
|
24,045
|
|
17,865
|
|
10,883
|
|
9,299
|
|
13,948
|
|
||||||
Pipeline demand fees
|
16,001
|
|
75,169
|
|
45,683
|
|
40,330
|
|
58,287
|
|
531,205
|
|
||||||
Sub-total NJNG
|
$
|
50,189
|
|
$
|
206,199
|
|
$
|
69,485
|
|
$
|
51,326
|
|
$
|
67,586
|
|
$
|
545,153
|
|
Total
(1)
|
$
|
330,902
|
|
$
|
457,821
|
|
$
|
129,780
|
|
$
|
75,155
|
|
$
|
83,627
|
|
$
|
556,707
|
|
(1)
|
Does not include amounts related to intercompany asset management agreements between NJRES and NJNG.
|
13.
|
BUSINESS SEGMENT AND OTHER OPERATIONS DATA
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
June 30,
|
June 30,
|
||||||||||
(Thousands)
|
2014
|
2013
|
2014
|
2013
|
||||||||
Operating revenues
|
|
|
|
|
||||||||
Natural Gas Distribution
|
|
|
|
|
||||||||
External customers
|
$
|
111,383
|
|
$
|
119,022
|
|
$
|
739,380
|
|
$
|
689,621
|
|
Energy Services
|
|
|
|
|
||||||||
External customers
(1)
|
560,115
|
|
632,414
|
|
2,367,641
|
|
1,735,411
|
|
||||
Intercompany
|
518
|
|
1,119
|
|
72,285
|
|
5,670
|
|
||||
Clean Energy Ventures
|
|
|
|
|
||||||||
External customers
|
3,155
|
|
2,563
|
|
8,007
|
|
7,182
|
|
||||
Subtotal
|
675,171
|
|
755,118
|
|
3,187,313
|
|
2,437,884
|
|
||||
Retail and Other
|
|
|
|
|
||||||||
External customers
|
13,604
|
|
13,470
|
|
31,203
|
|
32,159
|
|
||||
Intercompany
|
194
|
|
234
|
|
693
|
|
683
|
|
||||
Eliminations
|
(712
|
)
|
(1,353
|
)
|
(72,978
|
)
|
(6,353
|
)
|
||||
Total
|
$
|
688,257
|
|
$
|
767,469
|
|
$
|
3,146,231
|
|
$
|
2,464,373
|
|
Depreciation and amortization
|
|
|
|
|
||||||||
Natural Gas Distribution
|
$
|
10,567
|
|
$
|
9,537
|
|
$
|
30,374
|
|
$
|
28,213
|
|
Energy Services
|
15
|
|
10
|
|
40
|
|
32
|
|
||||
Clean Energy Ventures
|
2,823
|
|
2,196
|
|
7,969
|
|
6,131
|
|
||||
Midstream
|
1
|
|
2
|
|
4
|
|
5
|
|
||||
Subtotal
|
13,406
|
|
11,745
|
|
38,387
|
|
34,381
|
|
||||
Retail and Other
|
212
|
|
196
|
|
627
|
|
586
|
|
||||
Eliminations
|
2
|
|
1
|
|
—
|
|
(1
|
)
|
||||
Total
|
$
|
13,620
|
|
$
|
11,942
|
|
$
|
39,014
|
|
$
|
34,966
|
|
Interest income
(2)
|
|
|
|
|
||||||||
Natural Gas Distribution
|
$
|
137
|
|
$
|
146
|
|
$
|
579
|
|
$
|
459
|
|
Energy Services
|
210
|
|
—
|
|
210
|
|
—
|
|
||||
Midstream
|
171
|
|
265
|
|
709
|
|
799
|
|
||||
Subtotal
|
518
|
|
411
|
|
1,498
|
|
1,258
|
|
||||
Retail and Other
|
1
|
|
(1
|
)
|
1
|
|
1
|
|
||||
Eliminations
|
(241
|
)
|
(217
|
)
|
(709
|
)
|
(667
|
)
|
||||
Total
|
$
|
278
|
|
$
|
193
|
|
$
|
790
|
|
$
|
592
|
|
(1)
|
Includes sales to Canada, which accounted for
3.6 percent
and
6.4 percent
of total operating revenues during the
nine months ended
June 30, 2014
and
2013
,
respectively
.
|
(2)
|
Included in other income on the Unaudited Condensed Consolidated Statements of Operations.
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
June 30,
|
June 30,
|
||||||||||
(Thousands)
|
2014
|
2013
|
2014
|
2013
|
||||||||
Interest expense, net of capitalized interest
|
|
|
|
|
||||||||
Natural Gas Distribution
|
$
|
4,540
|
|
$
|
3,796
|
|
$
|
12,412
|
|
$
|
10,929
|
|
Energy Services
|
166
|
|
615
|
|
1,443
|
|
1,823
|
|
||||
Clean Energy Ventures
|
1,382
|
|
870
|
|
3,817
|
|
2,475
|
|
||||
Midstream
|
333
|
|
466
|
|
1,108
|
|
1,533
|
|
||||
Subtotal
|
6,421
|
|
5,747
|
|
18,780
|
|
16,760
|
|
||||
Retail and Other
|
86
|
|
261
|
|
328
|
|
819
|
|
||||
Total
|
$
|
6,507
|
|
$
|
6,008
|
|
$
|
19,108
|
|
$
|
17,579
|
|
Income tax provision (benefit)
|
|
|
|
|
||||||||
Natural Gas Distribution
|
$
|
4,348
|
|
$
|
1,788
|
|
$
|
42,256
|
|
$
|
39,089
|
|
Energy Services
|
(16,256
|
)
|
12,945
|
|
36,816
|
|
23,906
|
|
||||
Clean Energy Ventures
|
1,286
|
|
(1,477
|
)
|
(18,146
|
)
|
(15,703
|
)
|
||||
Midstream
|
1,321
|
|
1,073
|
|
3,890
|
|
3,935
|
|
||||
Subtotal
|
(9,301
|
)
|
14,329
|
|
64,816
|
|
51,227
|
|
||||
Retail and Other
|
1,680
|
|
1,378
|
|
360
|
|
349
|
|
||||
Eliminations
|
(187
|
)
|
(410
|
)
|
201
|
|
(234
|
)
|
||||
Total
|
$
|
(7,808
|
)
|
$
|
15,297
|
|
$
|
65,377
|
|
$
|
51,342
|
|
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 financial earnings (loss)
|
|
|
|
|
||||||||
Natural Gas Distribution
|
$
|
4,882
|
|
$
|
5,528
|
|
$
|
79,564
|
|
$
|
76,937
|
|
Energy Services
|
(8,628
|
)
|
2,097
|
|
90,153
|
|
21,479
|
|
||||
Clean Energy Ventures
|
3,865
|
|
(1,381
|
)
|
20,286
|
|
9,078
|
|
||||
Midstream
|
1,896
|
|
1,541
|
|
5,584
|
|
5,600
|
|
||||
Subtotal
|
2,015
|
|
7,785
|
|
195,587
|
|
113,094
|
|
||||
Retail and Other
|
2,485
|
|
1,944
|
|
708
|
|
813
|
|
||||
Eliminations
|
14
|
|
9
|
|
—
|
|
(12
|
)
|
||||
Total
|
$
|
4,514
|
|
$
|
9,738
|
|
$
|
196,295
|
|
$
|
113,895
|
|
Capital expenditures
|
|
|
|
|
||||||||
Natural Gas Distribution
|
$
|
38,186
|
|
$
|
29,141
|
|
$
|
109,071
|
|
$
|
94,840
|
|
Clean Energy Ventures
|
46,166
|
|
14,891
|
|
91,569
|
|
39,756
|
|
||||
Subtotal
|
84,352
|
|
44,032
|
|
200,640
|
|
134,596
|
|
||||
Retail and Other
|
159
|
|
234
|
|
636
|
|
532
|
|
||||
Total
|
$
|
84,511
|
|
$
|
44,266
|
|
$
|
201,276
|
|
$
|
135,128
|
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
June 30,
|
June 30,
|
||||||||||
(Thousands)
|
2014
|
2013
|
2014
|
2013
|
||||||||
Consolidated net financial earnings
|
$
|
4,514
|
|
$
|
9,738
|
|
$
|
196,295
|
|
$
|
113,895
|
|
Less:
|
|
|
|
|
||||||||
Unrealized (gain) loss from derivative instruments and related transactions
(1)
|
(6,585
|
)
|
(44,148
|
)
|
45,811
|
|
(23,682
|
)
|
||||
Effects of economic hedging related to natural gas inventory
|
38,139
|
|
13,440
|
|
(3,409
|
)
|
(9,425
|
)
|
||||
Tax adjustments
|
(12,766
|
)
|
11,291
|
|
(12,497
|
)
|
12,172
|
|
||||
Consolidated net (loss) income
|
$
|
(14,274
|
)
|
$
|
29,155
|
|
$
|
166,390
|
|
$
|
134,830
|
|
(1)
|
Excludes unrealized (gains) losses related to an intercompany transaction between NJNG and NJRES that have been eliminated in consolidation of approximately
$(327,000)
and
$(708,000)
for the
three months ended
and
$345,000
and
$(398,000)
for the
nine months ended
June 30, 2014
and
2013
, respectively.
|
•
|
Unrealized gains and losses on derivatives are recognized in reported earnings in periods prior to physical gas inventory flows; and
|
•
|
Unrealized gains and losses of prior periods are reclassified as realized gains and losses when derivatives are settled in the same period as physical gas inventory movements occur.
|
(Thousands)
|
June 30,
2014 |
September 30,
2013 |
||||
Assets at end of period:
|
|
|
||||
Natural Gas Distribution
|
$
|
2,123,260
|
|
$
|
2,094,940
|
|
Energy Services
|
463,597
|
|
468,096
|
|
||
Clean Energy Ventures
|
362,240
|
|
253,663
|
|
||
Midstream
|
153,214
|
|
153,536
|
|
||
Subtotal
|
3,102,311
|
|
2,970,235
|
|
||
Retail and Other
|
85,148
|
|
85,293
|
|
||
Intercompany assets
(1)
|
(81,552
|
)
|
(50,745
|
)
|
||
Total
|
$
|
3,105,907
|
|
$
|
3,004,783
|
|
(1)
|
Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation.
|
14.
|
RELATED PARTY TRANSACTIONS
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
(Thousands)
|
2014
|
2013
|
% change
|
2014
|
2013
|
% change
|
||||||||||
Operating revenues
|
$
|
688,257
|
|
$
|
767,469
|
|
(10.3
|
)%
|
$
|
3,146,231
|
|
$
|
2,464,373
|
|
27.7
|
%
|
Gas purchases
|
$
|
639,076
|
|
$
|
649,242
|
|
(1.6
|
)%
|
$
|
2,609,624
|
|
$
|
2,016,597
|
|
29.4
|
%
|
•
|
a decrease
at NJRES due primarily to a decrease in overall sales volumes;
and
|
•
|
a decrease
at NJNG as a result of lower off-system sales and BGSS rates.
|
•
|
increased sales volumes
at NJRES
due to increased demand for natural gas in regions affected by the extreme cold weather, coupled with
higher
average commodity prices
; and
|
•
|
an increase in firm sales at NJNG as a result of colder weather, customer growth, coupled with higher off-system sales, partially offset by lower BGSS rates.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||||||||||
(Thousands)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Natural Gas Distribution
|
$
|
4,882
|
|
(34
|
)%
|
|
$
|
5,528
|
|
19
|
%
|
|
$
|
79,564
|
|
48
|
%
|
|
$
|
76,937
|
|
57
|
%
|
Energy Services
|
(28,254
|
)
|
198
|
|
|
22,222
|
|
76
|
|
|
62,996
|
|
38
|
|
|
42,812
|
|
32
|
|
||||
Clean Energy Ventures
|
5,029
|
|
(35
|
)
|
|
(1,381
|
)
|
(5
|
)
|
|
17,193
|
|
10
|
|
|
9,078
|
|
7
|
|
||||
Midstream
|
1,896
|
|
(13
|
)
|
|
1,541
|
|
5
|
|
|
5,584
|
|
3
|
|
|
5,600
|
|
4
|
|
||||
Retail and Other
|
2,485
|
|
(18
|
)
|
|
1,944
|
|
7
|
|
|
708
|
|
1
|
|
|
813
|
|
—
|
|
||||
Eliminations
(1)
|
(312
|
)
|
2
|
|
|
(699
|
)
|
(2
|
)
|
|
345
|
|
—
|
|
|
(410
|
)
|
—
|
|
||||
Total
|
$
|
(14,274
|
)
|
100
|
%
|
|
$
|
29,155
|
|
100
|
%
|
|
$
|
166,390
|
|
100
|
%
|
|
$
|
134,830
|
|
100
|
%
|
(1)
|
Consists
of transactions between subsidiaries that are eliminated in consolidation
.
|
•
|
a decrease
at NJRES due primarily
to greater losses on
derivative instruments as a result of timing differences in the settlement of certain economic hedges; and
|
•
|
a decrease
at NJNG due primarily to
an increase
in O&M,
interest expense and
income tax provision
, which is partially offset by
increased
utility gross margin; partially offset by
|
•
|
an increase
at NJRCEV due to 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.
|
•
|
an increase
at NJRES due primarily to higher gross margin
due to
increased demand caused by the extreme cold weather;
|
•
|
an increase
at NJNG due primarily to
higher gross margin related to customer growth and infrastructure investments
; and
|
•
|
an increase
at NJRCEV due to the receipt of a one-time credit support payment as discussed above.
|
(Thousands)
|
June 30,
2014 |
|
September 30,
2013 |
||||||||
Assets
|
|
|
|
|
|
||||||
Natural Gas Distribution
|
$
|
2,123,260
|
|
68
|
%
|
|
$
|
2,094,940
|
|
70
|
%
|
Energy Services
|
463,597
|
|
15
|
|
|
468,096
|
|
16
|
|
||
Clean Energy Ventures
|
362,240
|
|
12
|
|
|
253,663
|
|
8
|
|
||
Midstream
|
153,214
|
|
5
|
|
|
153,536
|
|
5
|
|
||
Retail and Other
|
85,148
|
|
3
|
|
|
85,293
|
|
3
|
|
||
Intercompany assets
(1)
|
(81,552
|
)
|
(3
|
)
|
|
(50,745
|
)
|
(2
|
)
|
||
Total
|
$
|
3,105,907
|
|
100
|
%
|
|
$
|
3,004,783
|
|
100
|
%
|
(1)
|
Consists of transactions between subsidiaries that are eliminated in consolidation.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
($ in Thousands)
|
2014
|
2013
|
2014
|
|
2013
|
||||||||||
Net (loss) income
|
$
|
(14,274
|
)
|
|
$
|
29,155
|
|
|
$
|
166,390
|
|
|
$
|
134,830
|
|
Add:
|
|
|
|
|
|
|
|
||||||||
Consolidated unrealized (gain) loss on derivative instruments
|
(6,585
|
)
|
|
(44,148
|
)
|
|
45,811
|
|
|
(23,682
|
)
|
||||
Effects of economic hedging related to natural gas inventory
|
38,139
|
|
|
13,440
|
|
|
(3,409
|
)
|
|
(9,425
|
)
|
||||
Tax adjustments
|
(12,766
|
)
|
|
11,291
|
|
|
(12,497
|
)
|
|
12,172
|
|
||||
Net financial earnings
|
$
|
4,514
|
|
|
$
|
9,738
|
|
|
$
|
196,295
|
|
|
$
|
113,895
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||||||||||
($ in Thousands)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||||||
Net financial earnings (loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Natural Gas Distribution
|
$
|
4,882
|
|
108
|
%
|
|
$
|
5,528
|
|
57
|
%
|
|
$
|
79,564
|
|
41
|
%
|
|
$
|
76,937
|
|
67
|
%
|
Energy Services
|
(8,628
|
)
|
(191
|
)
|
|
2,097
|
|
21
|
|
|
90,153
|
|
46
|
|
|
21,479
|
|
19
|
|
||||
Clean Energy Ventures
|
3,865
|
|
86
|
|
|
(1,381
|
)
|
(14
|
)
|
|
20,286
|
|
10
|
|
|
9,078
|
|
8
|
|
||||
Midstream
|
1,896
|
|
42
|
|
|
1,541
|
|
16
|
|
|
5,584
|
|
3
|
|
|
5,600
|
|
5
|
|
||||
Retail and Other
|
2,485
|
|
55
|
|
|
1,944
|
|
20
|
|
|
708
|
|
—
|
|
|
813
|
|
1
|
|
||||
Eliminations
(1)
|
14
|
|
—
|
|
|
9
|
|
—
|
|
|
—
|
|
—
|
|
|
(12
|
)
|
—
|
|
||||
Total
|
$
|
4,514
|
|
100
|
%
|
|
$
|
9,738
|
|
100
|
%
|
|
$
|
196,295
|
|
100
|
%
|
|
$
|
113,895
|
|
100
|
%
|
(1)
|
Consists
of transactions between subsidiaries that are eliminated in consolidation
.
|
•
|
a decrease
at NJRES due primarily to a decrease in overall sales volumes related to the seasonal nature of natural gas usage, year-round transportation and storage portfolio expenses, and an increase in costs associated with unwinding hedges relating to sales made in the second fiscal quarter; partially offset by
|
•
|
an increase
at NJRCEV due to 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.
|
•
|
an increase
at NJRES due primarily
to higher financial margin due to
increased demand caused by the extreme cold weather;
|
•
|
an increase
at NJNG due to
higher gross margin related to customer growth and infrastructure investments; and
|
•
|
an increase
at NJRCEV due to the receipt of a one-time credit support payment as discussed above
.
|
•
|
Earning a reasonable rate of return on the investments in its natural gas distribution
and transmission
systems, as well as timely recovery of all prudently incurred costs in order to provide safe and reliable service throughout NJNG's territory:
|
•
|
Continuing to invest in the safety and integrity of its infrastructure;
|
•
|
Managing its new customer growth rate, which NJNG expects to be approximately
1.5 percent
annually over the next two years;
|
•
|
Maintaining a collaborative relationship with the BPU on regulatory initiatives, including:
|
•
|
Managing the volatility of wholesale natural gas prices through a hedging program designed to keep customers' BGSS rates as stable as possible; and
|
•
|
Working to manage expectations related to its financial obligations associated with its MGP sites.
|
(Millions)
|
2014
|
2015
|
||||
Customer growth
|
$
|
28.0
|
|
$
|
25.6
|
|
System maintenance and other
|
67.6
|
|
55.7
|
|
||
AIP/SAFE
|
38.0
|
|
33.7
|
|
||
Superstorm Sandy
|
9.3
|
|
5.2
|
|
||
NGV Advantage
|
9.0
|
|
—
|
|
||
NJ RISE
|
—
|
|
7.5
|
|
||
Liquefaction/LNG
|
16.0
|
|
16.3
|
|
||
Southern Reliability
|
—
|
|
17.1
|
|
||
Total
|
$
|
167.9
|
|
$
|
161.1
|
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
June 30,
|
June 30,
|
||||||||||
(Thousands)
|
2014
|
2013
|
2014
|
2013
|
||||||||
Weather
(1)
|
$
|
1,316
|
|
$
|
841
|
|
$
|
(10,396
|
)
|
$
|
4,463
|
|
Usage
|
1,333
|
|
3,065
|
|
4,939
|
|
9,451
|
|
||||
Total
|
$
|
2,649
|
|
$
|
3,906
|
|
$
|
(5,457
|
)
|
$
|
13,914
|
|
(1)
|
Compared with the 20-year average, weather was
4.3 percent
and
3.2 percent
warmer
-than-normal during the
three months ended
June 30, 2014
and
2013
, respectively, and
9.8 percent
colder
-than-normal
and
.9 percent
warmer
-than-normal
during the
nine months ended
June 30, 2014
and
2013
, respectively.
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
June 30,
|
June 30,
|
||||||||||
(Thousands)
|
2014
|
2013
|
2014
|
2013
|
||||||||
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 expense
|
9,337
|
|
6,258
|
|
67,380
|
|
44,014
|
|
||||
Total utility gross margin
|
55,269
|
|
49,353
|
|
254,688
|
|
238,342
|
|
||||
Operation and maintenance expenses
|
30,466
|
|
28,414
|
|
88,417
|
|
82,310
|
|
||||
Depreciation and amortization
|
10,567
|
|
9,537
|
|
30,374
|
|
28,213
|
|
||||
Other taxes not reflected in utility gross margin
|
1,191
|
|
1,063
|
|
3,497
|
|
3,381
|
|
||||
Operating income
|
13,045
|
|
10,339
|
|
132,400
|
|
124,438
|
|
||||
Other income
|
725
|
|
773
|
|
1,832
|
|
2,517
|
|
||||
Interest expense, net of capitalized interest
|
4,540
|
|
3,796
|
|
12,412
|
|
10,929
|
|
||||
Income tax provision
|
4,348
|
|
1,788
|
|
42,256
|
|
39,089
|
|
||||
Net income
|
$
|
4,882
|
|
$
|
5,528
|
|
$
|
79,564
|
|
$
|
76,937
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
|
June 30,
|
|
June 30,
|
||||||||||
|
2014 v. 2013
|
|
2014 v. 2013
|
||||||||||
(Millions)
|
Operating
revenue
|
Gas
purchases
|
|
Operating
revenue
|
Gas
purchases
|
||||||||
Firm sales
|
$
|
5.7
|
|
$
|
2.8
|
|
|
$
|
69.3
|
|
$
|
34.9
|
|
Average BGSS rates
(1)
|
(6.0
|
)
|
(5.6
|
)
|
|
(45.8
|
)
|
(42.8
|
)
|
||||
Off-system sales
|
(12.2
|
)
|
(12.2
|
)
|
|
22.9
|
|
22.3
|
|
||||
CIP adjustments
|
(1.3
|
)
|
—
|
|
|
(19.4
|
)
|
—
|
|
||||
SAVEGREEN
|
1.9
|
|
—
|
|
|
13.2
|
|
—
|
|
||||
AIP
|
0.9
|
|
—
|
|
|
6.5
|
|
—
|
|
||||
Other
|
3.4
|
|
(1.2
|
)
|
|
3.1
|
|
(4.1
|
)
|
||||
Total increase
|
$
|
(7.6
|
)
|
$
|
(16.2
|
)
|
|
$
|
49.8
|
|
$
|
10.3
|
|
(1)
|
Operating revenue includes changes in sales tax of
$(.4) million
during the
three months ended
June 30, 2014
, compared with the
three months ended
June 30, 2013
, and
$(3) million
during the
nine months ended
June 30, 2014
, compared with the
nine months ended
June 30, 2013
.
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||||||||
|
2014
|
|
2013
|
2014
|
|
2013
|
||||||||||||||||
($ in thousands)
|
Margin
|
Bcf
|
|
Margin
|
Bcf
|
Margin
|
Bcf
|
|
Margin
|
Bcf
|
||||||||||||
Utility gross margin/throughput
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
$
|
29,336
|
|
5.3
|
|
|
$
|
28,277
|
|
5.0
|
|
$
|
152,934
|
|
40.3
|
|
|
$
|
147,398
|
|
35.7
|
|
Commercial, industrial and other
|
8,532
|
|
1.0
|
|
|
8,460
|
|
1.0
|
|
38,960
|
|
7.6
|
|
|
38,112
|
|
6.9
|
|
||||
Firm transportation
|
11,356
|
|
2.6
|
|
|
10,555
|
|
2.3
|
|
52,029
|
|
16.2
|
|
|
46,450
|
|
13.7
|
|
||||
Total utility firm gross margin/throughput
|
49,224
|
|
8.9
|
|
|
47,292
|
|
8.3
|
|
243,923
|
|
64.1
|
|
|
231,960
|
|
56.3
|
|
||||
BGSS incentive programs
|
5,855
|
|
53.8
|
|
|
1,896
|
|
31.4
|
|
10,354
|
|
124.0
|
|
|
6,014
|
|
103.7
|
|
||||
Interruptible
|
190
|
|
2.7
|
|
|
165
|
|
2.4
|
|
411
|
|
6.0
|
|
|
368
|
|
7.3
|
|
||||
Total utility gross margin/throughput
|
$
|
55,269
|
|
65.4
|
|
|
$
|
49,353
|
|
42.1
|
|
$
|
254,688
|
|
194.1
|
|
|
$
|
238,342
|
|
167.3
|
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||
|
June 30,
|
June 30,
|
||||||||
(Thousands)
|
2014 v. 2013
|
2014 v. 2013
|
||||||||
AIP
|
|
$
|
830
|
|
|
|
$
|
6,069
|
|
|
Customer impact
|
|
604
|
|
|
|
4,442
|
|
|
||
SAVEGREEN
|
|
498
|
|
|
|
1,452
|
|
|
||
Total increase
|
|
$
|
1,932
|
|
|
|
$
|
11,963
|
|
|
|
June 30,
2014 |
June 30,
2013 |
||
Firm customers
|
|
|
||
Residential
|
418,792
|
|
408,903
|
|
Commercial, industrial & other
|
25,108
|
|
24,901
|
|
Residential transport
|
49,251
|
|
53,307
|
|
Commercial transport
|
10,545
|
|
10,214
|
|
Total firm customers
|
503,696
|
|
497,325
|
|
Other
|
65
|
|
70
|
|
Total customers
|
503,761
|
|
497,395
|
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||
|
June 30,
|
June 30,
|
||||||||
(Thousands)
|
2014 v. 2013
|
2014 v. 2013
|
||||||||
Storage
|
|
$
|
2,889
|
|
|
|
$
|
2,827
|
|
|
Capacity release
|
|
861
|
|
|
|
806
|
|
|
||
Off-system sales
|
|
10
|
|
|
|
639
|
|
|
||
FRM
|
|
199
|
|
|
|
68
|
|
|
||
Total increase
|
|
$
|
3,959
|
|
|
|
$
|
4,340
|
|
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||
|
June 30,
|
June 30,
|
||||||||
(Thousands)
|
2014 v. 2013
|
2014 v. 2013
|
||||||||
Compensation and benefits
|
|
$
|
209
|
|
|
|
$
|
3,660
|
|
|
Maintenance and repairs
|
|
1,020
|
|
|
|
904
|
|
|
||
Shared corporate costs
|
|
(13
|
)
|
|
|
773
|
|
|
||
Other
|
|
836
|
|
|
|
770
|
|
|
||
Total increase
|
|
$
|
2,052
|
|
|
|
$
|
6,107
|
|
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
June 30,
|
June 30,
|
||||||||||
(Thousands)
|
2014
|
2013
|
2014
|
2013
|
||||||||
Operating revenues
|
$
|
560,633
|
|
$
|
633,533
|
|
$
|
2,439,926
|
|
$
|
1,741,081
|
|
Gas purchases (including demand charges
(1)
)
|
599,773
|
|
593,730
|
|
2,311,718
|
|
1,661,362
|
|
||||
Gross margin
|
(39,140
|
)
|
39,803
|
|
128,208
|
|
79,719
|
|
||||
Operation and maintenance expenses
|
5,033
|
|
3,595
|
|
25,992
|
|
10,190
|
|
||||
Depreciation and amortization
|
15
|
|
10
|
|
40
|
|
32
|
|
||||
Other taxes
|
366
|
|
416
|
|
1,131
|
|
956
|
|
||||
Operating (loss) income
|
(44,554
|
)
|
35,782
|
|
101,045
|
|
68,541
|
|
||||
Other income
|
210
|
|
—
|
|
210
|
|
—
|
|
||||
Interest expense, net
|
166
|
|
615
|
|
1,443
|
|
1,823
|
|
||||
Income tax (benefit) provision
|
(16,256
|
)
|
12,945
|
|
36,816
|
|
23,906
|
|
||||
Net (loss) income
|
$
|
(28,254
|
)
|
$
|
22,222
|
|
$
|
62,996
|
|
$
|
42,812
|
|
(1)
|
Costs associated with pipeline and storage capacity that are expensed over the term of the related contracts, which generally varies from less than one year to ten years.
|
•
|
59.3
Bcf of net short futures contracts, inclusive of multiple market locations
|
•
|
50.2
Bcf of net short futures contracts, inclusive of multiple market locations
.
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
June 30,
|
June 30,
|
||||||||||
(Thousands)
|
2014
|
2013
|
2014
|
2013
|
||||||||
Operating revenues
|
$
|
560,633
|
|
$
|
633,533
|
|
$
|
2,439,926
|
|
$
|
1,741,081
|
|
Less: Gas purchases
|
599,773
|
|
593,730
|
|
2,311,718
|
|
1,661,362
|
|
||||
Add:
|
|
|
|
|
||||||||
Unrealized (gain) loss on derivative instruments and related transactions
|
(7,101
|
)
|
(45,267
|
)
|
46,357
|
|
(24,312
|
)
|
||||
Effects of economic hedging related to natural gas inventory
|
38,139
|
|
13,440
|
|
(3,409
|
)
|
(9,425
|
)
|
||||
Financial margin
|
$
|
(8,102
|
)
|
$
|
7,976
|
|
$
|
171,156
|
|
$
|
45,982
|
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
June 30,
|
June 30,
|
||||||||||
(Thousands)
|
2014
|
2013
|
2014
|
2013
|
||||||||
Operating (loss) income
|
$
|
(44,554
|
)
|
$
|
35,782
|
|
$
|
101,045
|
|
$
|
68,541
|
|
Add:
|
|
|
|
|
||||||||
Operation and maintenance expenses
|
5,033
|
|
3,595
|
|
25,992
|
|
10,190
|
|
||||
Depreciation and amortization
|
15
|
|
10
|
|
40
|
|
32
|
|
||||
Other taxes
|
366
|
|
416
|
|
1,131
|
|
956
|
|
||||
Subtotal - Gross margin
|
(39,140
|
)
|
39,803
|
|
128,208
|
|
79,719
|
|
||||
Add:
|
|
|
|
|
||||||||
Unrealized (gain) loss on derivative instruments and related transactions
|
(7,101
|
)
|
(45,267
|
)
|
46,357
|
|
(24,312
|
)
|
||||
Effects of economic hedging related to natural gas inventory
|
38,139
|
|
13,440
|
|
(3,409
|
)
|
(9,425
|
)
|
||||
Financial margin
|
$
|
(8,102
|
)
|
$
|
7,976
|
|
$
|
171,156
|
|
$
|
45,982
|
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
June 30,
|
June 30,
|
||||||||||
(Thousands)
|
2014
|
2013
|
2014
|
2013
|
||||||||
Net (loss) income
|
$
|
(28,254
|
)
|
$
|
22,222
|
|
$
|
62,996
|
|
$
|
42,812
|
|
Add:
|
|
|
|
|
||||||||
Unrealized (gain) loss on derivative instruments and related transactions
|
(7,101
|
)
|
(45,267
|
)
|
46,357
|
|
(24,312
|
)
|
||||
Effects of economic hedging related to natural gas inventory
|
38,139
|
|
13,440
|
|
(3,409
|
)
|
(9,425
|
)
|
||||
Tax adjustments
|
(11,412
|
)
|
11,702
|
|
(15,791
|
)
|
12,404
|
|
||||
Net financial (loss) earnings
|
$
|
(8,628
|
)
|
$
|
2,097
|
|
$
|
90,153
|
|
$
|
21,479
|
|
|
Three Months Ended
|
|||||||||||||||
|
June 30,
|
|||||||||||||||
($ in Thousands)
|
2014
|
2013
|
||||||||||||||
Placed in service
|
Projects
|
MW
|
ITC Eligible Costs
|
Projects
|
MW
|
ITC Eligible Costs
|
||||||||||
Net-metered:
|
|
|
|
|
|
|
|
|
||||||||
Commercial
|
—
|
|
—
|
|
$
|
1
|
|
(1)
|
—
|
|
—
|
|
$
|
11
|
|
(1)
|
Residential
|
272
|
|
2.1
|
|
8,501
|
|
|
304
|
|
2.7
|
|
9,580
|
|
|
||
Grid-connected
|
1
|
|
9.2
|
|
22,306
|
|
|
—
|
|
—
|
|
1
|
|
(1)
|
||
Total placed in service
|
273
|
|
11.3
|
|
$
|
30,808
|
|
|
304
|
|
2.7
|
|
$
|
9,592
|
|
|
(1)
|
During the
three months ended
June 30, 2014
and
2013
, ITC eligible costs include additional costs related to projects that were placed in service prior to the respective three month periods.
|
|
Nine Months Ended
|
|||||||||||||||
|
June 30,
|
|||||||||||||||
($ in Thousands)
|
2014
|
2013
|
||||||||||||||
Placed in service
|
Projects
|
MW
|
ITC Eligible Costs
|
Projects
|
MW
|
ITC Eligible Costs
|
||||||||||
Net-metered:
|
|
|
|
|
|
|
|
|
||||||||
Commercial
|
1
|
|
0.3
|
|
$
|
994
|
|
|
1
|
|
2.4
|
|
$
|
6,624
|
|
|
Residential
|
739
|
|
7.2
|
|
22,356
|
|
|
598
|
|
5.1
|
|
17,848
|
|
|
||
Grid-connected
|
2
|
|
10.6
|
|
27,055
|
|
|
1
|
|
6.7
|
|
19,297
|
|
|
||
Total placed in service
|
742
|
|
18.1
|
|
$
|
50,405
|
|
|
600
|
|
14.2
|
|
$
|
43,769
|
|
|
|
Three Months Ended
|
Nine Months Ended
|
||||||
|
June 30,
|
June 30,
|
||||||
|
2014
|
2013
|
2014
|
2013
|
||||
SRECs generated
|
23,845
|
|
19,070
|
|
50,000
|
|
37,153
|
|
SRECs sold
|
13,364
|
|
13,861
|
|
34,042
|
|
46,223
|
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
June 30,
|
June 30,
|
||||||||||
(Thousands)
|
2014
|
2013
|
2014
|
2013
|
||||||||
Operating revenues
|
$
|
3,155
|
|
$
|
2,563
|
|
$
|
8,007
|
|
$
|
7,182
|
|
Operation and maintenance expenses
|
2,462
|
|
2,302
|
|
6,993
|
|
6,276
|
|
||||
Depreciation and amortization
|
2,823
|
|
2,196
|
|
7,969
|
|
6,131
|
|
||||
Other taxes
|
73
|
|
53
|
|
221
|
|
113
|
|
||||
Operating (loss)
|
(2,203
|
)
|
(1,988
|
)
|
(7,176
|
)
|
(5,338
|
)
|
||||
Other income
|
9,900
|
|
—
|
|
10,040
|
|
1,188
|
|
||||
Interest expense, net
|
1,382
|
|
870
|
|
3,817
|
|
2,475
|
|
||||
Income tax provision (benefit)
|
1,286
|
|
(1,477
|
)
|
(18,146
|
)
|
(15,703
|
)
|
||||
Net income (loss)
|
$
|
5,029
|
|
$
|
(1,381
|
)
|
$
|
17,193
|
|
$
|
9,078
|
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
June 30,
|
June 30,
|
||||||||||
(Thousands)
|
2014
|
2013
|
2014
|
2013
|
||||||||
SREC sales
|
$
|
1,867
|
|
$
|
1,793
|
|
$
|
4,965
|
|
$
|
5,652
|
|
Electricity sales
|
618
|
|
462
|
|
1,319
|
|
831
|
|
||||
Sunlight Advantage
|
670
|
|
308
|
|
1,723
|
|
699
|
|
||||
Total operating revenues
|
$
|
3,155
|
|
$
|
2,563
|
|
$
|
8,007
|
|
$
|
7,182
|
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
June 30,
|
June 30,
|
||||||||||
(Thousands)
|
2014
|
2013
|
2014
|
2013
|
||||||||
Net income (loss)
|
$
|
5,029
|
|
$
|
(1,381
|
)
|
$
|
17,193
|
|
$
|
9,078
|
|
Add:
|
|
|
|
|
||||||||
Tax adjustments
|
(1,164
|
)
|
—
|
|
3,093
|
|
—
|
|
||||
Net financial earnings (loss)
|
$
|
3,865
|
|
$
|
(1,381
|
)
|
$
|
20,286
|
|
$
|
9,078
|
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
June 30,
|
June 30,
|
||||||||||
(Thousands)
|
2014
|
2013
|
2014
|
2013
|
||||||||
Equity in earnings of affiliates
|
$
|
3,511
|
|
$
|
3,052
|
|
$
|
10,594
|
|
$
|
11,012
|
|
Operation and maintenance expenses
|
$
|
161
|
|
$
|
143
|
|
$
|
675
|
|
$
|
561
|
|
Interest expense, net
|
$
|
162
|
|
$
|
201
|
|
$
|
399
|
|
$
|
734
|
|
Income tax provision
|
$
|
1,321
|
|
$
|
1,073
|
|
$
|
3,890
|
|
$
|
3,935
|
|
Net income
|
$
|
1,896
|
|
$
|
1,541
|
|
$
|
5,584
|
|
$
|
5,600
|
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
June 30,
|
June 30,
|
||||||||||
(Thousands)
|
2014
|
2013
|
2014
|
2013
|
||||||||
Steckman Ridge
|
$
|
2,420
|
|
$
|
2,041
|
|
$
|
6,656
|
|
$
|
6,643
|
|
Iroquois
|
1,091
|
|
1,011
|
|
3,938
|
|
4,369
|
|
||||
Total equity in earnings
|
$
|
3,511
|
|
$
|
3,052
|
|
$
|
10,594
|
|
$
|
11,012
|
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
June 30,
|
June 30,
|
||||||||||
(Thousands)
|
2014
|
2013
|
2014
|
2013
|
||||||||
Operating revenues
|
$
|
13,798
|
|
$
|
13,704
|
|
$
|
31,896
|
|
$
|
32,842
|
|
Operation and maintenance expenses
|
$
|
8,088
|
|
$
|
9,421
|
|
$
|
27,908
|
|
$
|
28,099
|
|
Net income
|
$
|
2,485
|
|
$
|
1,944
|
|
$
|
708
|
|
$
|
813
|
|
|
June 30,
2014 |
September 30,
2013 |
||
Common stock equity
|
56
|
%
|
48
|
%
|
Long-term debt
|
34
|
|
28
|
|
Short-term debt
|
10
|
|
24
|
|
Total
|
100
|
%
|
100
|
%
|
|
Balance
|
Increase
|
Less
|
Balance
|
||||||||||||
(Thousands)
|
September 30, 2013
|
(Decrease) in Fair
Market Value
|
Amounts
Settled
|
June 30, 2014
|
||||||||||||
NJNG
|
|
$
|
1,438
|
|
|
$
|
15,128
|
|
|
$
|
10,812
|
|
|
$
|
5,754
|
|
NJRES
|
|
14,563
|
|
|
(155,920
|
)
|
|
(132,054
|
)
|
|
(9,303
|
)
|
||||
Total
|
|
$
|
16,001
|
|
|
$
|
(140,792
|
)
|
|
$
|
(121,242
|
)
|
|
$
|
(3,549
|
)
|
(Thousands)
|
2014
|
2015
|
2016 - 2018
|
After 2018
|
Total
Fair Value
|
|||||||||||||
Price based on NYMEX/CME
|
$
|
5,039
|
|
$
|
(1,846
|
)
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
3,192
|
|
Price based on ICE
|
(543
|
)
|
(4,421
|
)
|
|
(1,777
|
)
|
|
—
|
|
|
(6,741
|
)
|
|||||
Total
|
$
|
4,496
|
|
$
|
(6,267
|
)
|
|
$
|
(1,778
|
)
|
|
$
|
—
|
|
|
$
|
(3,549
|
)
|
|
|
Volume Bcf
|
Price per MMBtu
|
Amounts included in Derivatives (Thousands)
|
||||
NJNG
|
Futures
|
15.3
|
|
$3.34 - $4.81
|
|
$
|
5,762
|
|
|
Options
|
0.2
|
|
$0.00 - $0.22
|
|
(8
|
)
|
|
NJRES
|
Futures
|
(59.3
|
)
|
$2.89 - $7.14
|
|
(9,272
|
)
|
|
|
Options
|
0.6
|
|
$0.07 - $0.07
|
|
(31
|
)
|
|
Total
|
|
|
|
|
$
|
(3,549
|
)
|
|
Balance
|
Increase
|
Less
|
Balance
|
||||||||||
(Thousands)
|
September 30, 2013
|
(Decrease) in Fair
Market Value
|
Amounts
Settled
|
June 30, 2014
|
||||||||||
NJRES - Prices based on other external data
|
|
$
|
(2,772
|
)
|
|
(94,255
|
)
|
|
(71,987
|
)
|
|
$
|
(25,040
|
)
|
Derivative Fair Value Sensitivity Analysis
|
|
||||||||||||||
(Thousands)
|
Henry Hub Futures and Fixed Price Swaps
|
||||||||||||||
Percent increase in NYMEX natural gas futures prices
|
0%
|
5%
|
10%
|
15%
|
20%
|
||||||||||
Estimated change in derivative fair value
|
$
|
—
|
|
$
|
(10,109
|
)
|
$
|
(20,218
|
)
|
$
|
(30,327
|
)
|
$
|
(40,437
|
)
|
Ending derivative fair value
|
$
|
(1,040
|
)
|
$
|
(11,149
|
)
|
$
|
(21,258
|
)
|
$
|
(31,367
|
)
|
$
|
(41,477
|
)
|
|
|
|
|
|
|
||||||||||
Percent decrease in NYMEX natural gas futures prices
|
0%
|
(5)%
|
(10)%
|
(15)%
|
(20)%
|
||||||||||
Estimated change in derivative fair value
|
$
|
—
|
|
$
|
10,109
|
|
$
|
20,218
|
|
$
|
30,327
|
|
$
|
40,437
|
|
Ending derivative fair value
|
$
|
(1,040
|
)
|
$
|
9,069
|
|
$
|
19,178
|
|
$
|
29,287
|
|
$
|
39,397
|
|
(Thousands)
|
Gross Credit Exposure
|
Net Credit Exposure
|
||||||
Investment grade
|
|
$
|
164,433
|
|
|
$
|
124,283
|
|
Noninvestment grade
|
|
8,131
|
|
|
1,466
|
|
||
Internally rated investment grade
|
|
15,691
|
|
|
5,420
|
|
||
Internally rated noninvestment grade
|
|
13,138
|
|
|
57
|
|
||
Total
|
|
$
|
201,393
|
|
|
$
|
131,226
|
|
(Thousands)
|
Gross Credit Exposure
|
Net Credit Exposure
|
||||||
Investment grade
|
|
$
|
7,656
|
|
|
$
|
6,513
|
|
Noninvestment grade
|
|
846
|
|
|
846
|
|
||
Internally rated investment grade
|
|
381
|
|
|
314
|
|
||
Internally rated noninvestment grade
|
|
124
|
|
|
—
|
|
||
Total
|
|
$
|
9,007
|
|
|
$
|
7,673
|
|
Period
|
Total Number of Shares
(or Units) Purchased
|
Average Price Paid per Share (or Unit)
|
Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs
|
Maximum Number (or Approximate Dollar Value) of Shares (or Units) That May Yet Be Purchased Under the Plans or Programs
|
||||||
4/01/14 - 4/30/14
|
—
|
|
$
|
—
|
|
—
|
|
|
1,552,127
|
|
5/01/14 - 5/31/14
|
—
|
|
$
|
—
|
|
—
|
|
|
1,552,127
|
|
6/01/14 - 6/30/14
|
—
|
|
$
|
—
|
|
—
|
|
|
1,552,127
|
|
Total
|
—
|
|
$
|
—
|
|
—
|
|
|
1,552,127
|
|
Exhibit
Number
|
Exhibit Description
|
4.3+
|
$250,000,000 Credit Agreement dated as of May 15, 2014, by and among New Jersey Natural Gas Company, the Lenders party thereto, PNC Bank, National Association, as Administrative Agent, Wells Fargo Bank, National Association, as Syndication Agent, U.S. Bank National Association, TD Bank, N.A., and Santander Bank, N.A., as Documentation Agents, and PNC Capital Markets LLC and Wells Fargo Securities, LLC, as Joint Lead Arrangers.
|
|
|
31.1+
|
Certification of the Chief Executive Officer pursuant to section 302 of the Sarbanes-Oxley Act
|
|
|
31.2+
|
Certification of the Chief Financial Officer pursuant to section 302 of the Sarbanes-Oxley Act
|
|
|
32.1+ †
|
Certification of the Chief Executive Officer pursuant to section 906 of the Sarbanes-Oxley Act
|
|
|
32.2+ †
|
Certification of the Chief Financial Officer pursuant to section 906 of the Sarbanes-Oxley Act
|
|
|
101+
|
Interactive Data File (Form 10-Q, for the fiscal period ended March 31, 2014, furnished in XBRL (eXtensible Business Reporting Language)).
|
+
|
Filed herewith.
|
|
|
NEW JERSEY RESOURCES CORPORATION
|
|
|
(Registrant)
|
Date:
|
August 4, 2014
|
|
|
|
By:/s/ Glenn C. Lockwood
|
|
|
Glenn C. Lockwood
|
|
|
Executive Vice President and
|
|
|
Chief Financial Officer
|
1.
|
CERTAIN DEFINITIONS
1
|
1.1
|
Certain Definitions. 1
|
1.2
|
Construction. 27
|
1.2.1
|
Number; Inclusion. 27
|
1.2.2
|
Determination. 27
|
1.2.3
|
Agent's Discretion and Consent. 28
|
1.2.4
|
Documents Taken as a Whole. 28
|
1.2.5
|
Headings. 28
|
1.2.6
|
Implied References to this Agreement. 28
|
1.2.7
|
Persons. 28
|
1.2.8
|
Modifications to Documents. 28
|
1.2.9
|
From, To and Through. 28
|
1.2.10
|
Shall; Will. 28
|
1.3
|
Accounting Principles; Changes in GAAP. 29
|
2.
|
REVOLVING CREDIT AND SWING LOAN FACILITIES
29
|
2.1
|
Commitments. 29
|
2.1.1
|
Revolving Credit Loans. 29
|
2.1.2
|
Swing Loan Commitment. 30
|
2.2
|
Nature of Lenders' Obligations with Respect to Revolving Credit Loans. 30
|
2.3
|
Commitment Fee. 30
|
2.4
|
Revolving Credit Loan Requests. 31
|
2.5
|
Swing Loan Requests. 32
|
2.6
|
Making Revolving Credit Loans and Swing Loans. 32
|
2.6.1
|
Making Revolving Credit Loans. 32
|
2.6.2
|
Presumptions by the Agent. 32
|
2.6.3
|
Making Swing Loans. 33
|
2.7
|
Swing Loan Note. 33
|
2.8
|
Use of Proceeds. 33
|
2.9
|
Letter of Credit Subfacility. 33
|
2.9.1
|
Issuance of Letters of Credit. 33
|
2.9.2
|
Letter of Credit Fees. 34
|
2.9.3
|
Disbursements, Reimbursement. 34
|
2.9.4
|
Repayment of Participation Advances. 35
|
2.9.5
|
Documentation. 36
|
2.9.6
|
Determinations to Honor Drawing Requests. 36
|
2.9.7
|
Nature of Participation and Reimbursement Obligations. 36
|
2.9.8
|
Indemnity. 38
|
2.9.9
|
Liability for Acts and Omissions. 38
|
2.10
|
Borrowings to Repay Swing Loans. 40
|
2.11
|
Right to Increase Commitments. 40
|
2.12
|
Defaulting Lenders. 41
|
2.13
|
Release of Cash Collateral. 43
|
3.
|
INTENTIONALLY OMITTED 43
|
4.
|
INTEREST RATES 43
|
4.1
|
Interest Rate Options. 43
|
4.1.1
|
Revolving Credit Interest Rate Options. 44
|
4.1.2
|
Rate Quotations. 44
|
4.1.3
|
Change in Fees or Interest Rates. 44
|
4.2
|
Interest Periods. 45
|
4.2.1
|
Amount of Borrowing Tranche. 45
|
4.2.2
|
Renewals. 45
|
4.3
|
Interest After Default. 45
|
4.3.1
|
Letter of Credit Fees, Interest Rate. 46
|
4.3.2
|
Other Obligations. 46
|
4.3.3
|
Acknowledgment. 46
|
4.4
|
LIBOR Rate Unascertainable; Illegality; Increased Costs; Deposits Not Available. 46
|
4.4.1
|
Unascertainable. 46
|
4.4.2
|
Illegality; Increased Costs; Deposits Not Available. 46
|
4.4.3
|
The Agent's and Lenders' Rights. 47
|
4.5
|
Selection of Interest Rate Options. 47
|
5.
|
PAYMENTS
48
|
5.1
|
Payments. 48
|
5.2
|
Pro Rata Treatment of Lenders; Sharing of Payments; Agent's Presumptions. 48
|
5.2.1
|
Pro Rata Treatment of Lenders. 48
|
5.2.2
|
Sharing of Payments by Lenders. 49
|
5.2.3
|
Presumptions by the Agent. 49
|
5.3
|
Interest Payment Dates. 50
|
5.4
|
Prepayments. 50
|
5.4.1
|
Voluntary Prepayments. 50
|
5.4.2
|
Replacement of a Lender. 51
|
5.4.3
|
Change of Lending Office. 52
|
5.5
|
Voluntary Commitment Reductions. 52
|
5.6
|
Additional Compensation in Certain Circumstances. 52
|
5.6.1
|
Increased Costs Generally. 52
|
5.6.2
|
Capital Requirements. 53
|
5.6.3
|
Certificates for Reimbursement; Repayment of Outstanding Loans; Borrowing of New Loans. 53
|
5.6.4
|
Delay in Requests. 54
|
5.6.5
|
Indemnity. 54
|
5.7
|
Interbank Market Presumption. 55
|
5.8
|
Taxes. 55
|
5.8.1
|
Issuing Lender. 55
|
5.8.2
|
Payments Free of Taxes. 55
|
5.8.3
|
Payment of Other Taxes by the Borrower. 55
|
5.8.4
|
Indemnification by the Borrower. 56
|
5.8.5
|
Indemnification by the Lenders. 56
|
5.8.6
|
Evidence of Payments. 56
|
5.8.7
|
Status of Lenders. 56
|
5.8.8
|
Treatment of Certain Refunds. 58
|
5.8.9
|
Survival. 59
|
5.9
|
Notes. 59
|
5.10
|
Settlement Date Procedures. 59
|
6.
|
REPRESENTATIONS AND WARRANTIES
60
|
6.1
|
Representations and Warranties. 60
|
6.1.1
|
Organization and Qualification. 60
|
6.1.2
|
Subsidiaries. 60
|
6.1.3
|
Power and Authority. 60
|
6.1.4
|
Validity and Binding Effect. 61
|
6.1.5
|
No Conflict. 61
|
6.1.6
|
Litigation. 61
|
6.1.7
|
Title to Properties. 61
|
6.1.8
|
Accuracy of Financial Statements. 62
|
6.1.9
|
Use of Proceeds; Margin Stock. 62
|
6.1.10
|
Full Disclosure. 63
|
6.1.11
|
Taxes. 63
|
6.1.12
|
Consents and Approvals. 63
|
6.1.13
|
No Event of Default; Compliance With Instruments. 63
|
6.1.14
|
Patents, Trademarks, Copyrights, Licenses, Etc. 64
|
6.1.15
|
Insurance. 64
|
6.1.16
|
Compliance With Laws. 64
|
6.1.17
|
Material Contracts; Burdensome Restrictions. 64
|
6.1.18
|
Investment Companies. 65
|
6.1.19
|
Plans and Benefit Arrangements. 65
|
6.1.20
|
Employment Matters. 66
|
6.1.21
|
Environmental Matters. 66
|
6.1.22
|
Senior Debt Status. 66
|
6.1.23
|
Hedging Contract Policies. 66
|
6.1.24
|
Permitted Related Business Opportunities. 67
|
6.1.25
|
Anti-Terrorism Laws. 67
|
6.2
|
Continuation of Representations. 67
|
7.
|
CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT
67
|
7.1
|
First Loans and Letters of Credit. 67
|
7.1.1
|
Officer's Certificate. 67
|
7.1.2
|
Secretary's Certificate. 68
|
7.1.3
|
Opinion of Counsel. 68
|
7.1.4
|
Legal Details. 68
|
7.1.5
|
Payment of Fees. 69
|
7.1.6
|
Consents. 69
|
7.1.7
|
Officer's Certificate Regarding MACs. 69
|
7.1.8
|
No Violation of Laws. 69
|
7.1.9
|
No Actions or Proceedings. 69
|
7.1.10
|
Hedging Contract Policies. 69
|
7.1.11
|
Termination of Commitments and Repayment of Outstanding Indebtedness. 70
|
7.2
|
Each Additional Loan or Letter of Credit. 70
|
8.
|
COVENANTS
70
|
8.1
|
Affirmative Covenants. 70
|
8.1.1
|
Preservation of Existence, Etc. 70
|
8.1.2
|
Payment of Liabilities, Including Taxes, Etc. 71
|
8.1.3
|
Maintenance of Insurance. 71
|
8.1.4
|
Maintenance of Properties and Leases. 71
|
8.1.5
|
Maintenance of Patents, Trademarks, Etc. 71
|
8.1.6
|
Visitation Rights. 72
|
8.1.7
|
Keeping of Records and Books of Account. 72
|
8.1.8
|
Plans and Benefit Arrangements. 72
|
8.1.9
|
Compliance With Laws. 72
|
8.1.10
|
Use of Proceeds. 73
|
8.1.11
|
Hedging Contract Policies. 73
|
8.2
|
Negative Covenants. 73
|
8.2.1
|
Indebtedness. 73
|
8.2.2
|
Liens. 74
|
8.2.3
|
[
Intentionally Omitted
]. 74
|
8.2.4
|
Loans and Investments. 74
|
8.2.5
|
Liquidations, Mergers, Consolidations, Acquisitions. 75
|
8.2.6
|
Dispositions of Assets or Subsidiaries. 76
|
8.2.7
|
Affiliate Transactions. 77
|
8.2.8
|
Subsidiaries as Guarantors. 77
|
8.2.9
|
Continuation of or Change in Business; Joint Ventures. 77
|
8.2.10
|
Plans and Benefit Arrangements. 78
|
8.2.11
|
Fiscal Year. 78
|
8.2.12
|
Maximum Leverage Ratio. 78
|
8.2.13
|
[
Intentionally Omitted
]. 78
|
8.2.14
|
No Limitation on Dividends and Distributions by Borrower or its Subsidiaries. 78
|
8.2.15
|
Payment of Dividends; Redemptions. 78
|
8.2.16
|
No Modification of Hedging Contract Policies. 79
|
8.2.17
|
Off-Balance Sheet Financing. 79
|
8.2.18
|
[Intentionally Omitted]. 79
|
8.2.19
|
Anti-Terrorism Laws. 79
|
8.3
|
Reporting Requirements. 80
|
8.3.1
|
Quarterly Financial Statements. 80
|
8.3.2
|
Annual Financial Statements. 80
|
8.3.3
|
Certificate of the Borrower. 81
|
8.3.4
|
Notice of Default. 81
|
8.3.5
|
Notice of Litigation. 81
|
8.3.6
|
Notice of Change in Debt Rating. 81
|
8.3.7
|
Sale of Assets. 81
|
8.3.8
|
Budgets, Forecasts, Other Reports and Information. 82
|
8.3.9
|
Notices Regarding Plans and Benefit Arrangements. 82
|
8.3.10
|
Other Information. 84
|
9.
|
DEFAULT
84
|
9.1
|
Events of Default. 84
|
9.1.1
|
Payments Under Loan Documents. 84
|
9.1.2
|
Breach of Warranty. 84
|
9.1.3
|
Breach of Negative Covenants or Visitation Rights. 84
|
9.1.4
|
Breach of Other Covenants. 84
|
9.1.5
|
Defaults in Other Agreements or Indebtedness. 85
|
9.1.6
|
Final Judgments or Orders. 85
|
9.1.7
|
Loan Document Unenforceable. 85
|
9.1.8
|
Uninsured Losses; Proceedings Against Assets. 86
|
9.1.9
|
Notice of Lien or Assessment. 86
|
9.1.10
|
Insolvency. 86
|
9.1.11
|
Events Relating to Plans and Benefit Arrangements. 86
|
9.1.12
|
Cessation of Business. 87
|
9.1.13
|
Change of Control. 87
|
9.1.14
|
Involuntary Proceedings. 87
|
9.1.15
|
Voluntary Proceedings. 87
|
9.2
|
Consequences of Event of Default. 88
|
9.2.1
|
Events of Default Other Than Bankruptcy, Insolvency or Reorganization Proceedings. 88
|
9.2.2
|
Bankruptcy, Insolvency or Reorganization Proceedings. 88
|
9.2.3
|
Set-off. 88
|
9.2.4
|
Suits, Actions, Proceedings. 89
|
9.2.5
|
Application of Proceeds; Collateral Sharing. 89
|
9.2.6
|
Other Rights and Remedies. 90
|
10.
|
THE AGENT
90
|
10.1
|
Appointment and Authority. 90
|
10.2
|
Rights as a Lender. 90
|
10.3
|
Exculpatory Provisions. 91
|
10.4
|
Reliance by Agent. 91
|
10.5
|
Delegation of Duties. 92
|
10.6
|
Resignation of Agent. 92
|
10.7
|
Non-Reliance on Agent and Other Lenders. 93
|
10.8
|
No Other Duties, etc. 93
|
10.9
|
The Agent's Fees. 94
|
10.10
|
No Reliance on Agent's Customer Identification Program. 94
|
10.11
|
Calculations. 94
|
10.12
|
Beneficiaries. 94
|
11.
|
MISCELLANEOUS
95
|
11.1
|
Modifications, Amendments or Waivers. 95
|
11.1.1
|
Increase of Revolving Credit Commitments; Extension of Expiration Date. 95
|
11.1.2
|
Release of Collateral or Guarantor. 95
|
11.1.3
|
Miscellaneous. 96
|
11.2
|
No Implied Waivers; Cumulative Remedies; Writing Required. 96
|
11.3
|
Expenses; Indemnity; Damage Waiver. 96
|
11.3.1
|
Costs and Expenses. 96
|
11.3.2
|
Indemnification by the Borrower. 97
|
11.3.3
|
Reimbursement by Lenders. 98
|
11.3.4
|
Waiver of Consequential Damages, Etc. 98
|
11.3.5
|
Payments. 98
|
11.4
|
Holidays. 98
|
11.5
|
Funding by Branch, Subsidiary or Affiliate. 99
|
11.5.1
|
Notional Funding. 99
|
11.5.2
|
Actual Funding. 99
|
11.6
|
Notices; Lending Offices. 99
|
11.7
|
Severability. 100
|
11.8
|
Governing Law. 100
|
11.9
|
Prior Understanding. 101
|
11.10
|
Duration; Survival. 101
|
11.11
|
Successors and Assigns. 101
|
11.11.1
|
Successors and Assigns Generally. 101
|
11.11.2
|
Assignments by Lenders. 102
|
11.11.3
|
Register. 103
|
11.11.4
|
Participations. 104
|
11.11.5
|
Certain Pledges; Successors and Assigns Generally. 105
|
11.12
|
Confidentiality. 105
|
11.12.1
|
General. 105
|
11.12.2
|
Sharing Information With Affiliates of the Lenders. 106
|
11.13
|
Counterparts. 106
|
11.14
|
The Agent's or the Lenders' Consent. 106
|
11.15
|
Exceptions. 106
|
11.16
|
WAIVER OF JURY TRIAL. 106
|
11.17
|
JURISDICTION AND VENUE. 107
|
11.18
|
USA Patriot Act Notice. 107
|
SCHEDULE 1.1(A)
|
- PRICING GRID
|
SCHEDULE 1.1(B)
|
- COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES
|
SCHEDULE 1.1(P)
|
- PERMITTED LIENS
|
SCHEDULE 2.9.1
|
- EXISTING LETTERS OF CREDIT
|
SCHEDULE 6.1.2
|
- SUBSIDIARIES
|
SCHEDULE 6.1.12
|
- CONSENTS AND APPROVALS
|
SCHEDULE 6.1.23
|
- HEDGING CONTRACT POLICIES
|
SCHEDULE 6.1.24
|
PERMITTED RELATED BUSINESS OPPORTUNITIES
|
SCHEDULE 8.2.1
|
- EXISTING INDEBTEDNESS
|
EXHIBIT 1.1(A)
|
- ASSIGNMENT AND ASSUMPTION AGREEMENT
|
EXHIBIT 1.1(R)
|
- REVOLVING CREDIT NOTE
|
EXHIBIT 1.1(S)
|
- SWING LOAN NOTE
|
EXHIBIT 2.4
|
- LOAN REQUEST
|
EXHIBIT 2.5
|
- SWING LOAN REQUEST
|
EXHIBIT 5.5
|
- COMMITMENT REDUCTION NOTICE
|
EXHIBIT 5.8.7(A)
|
- U.S. TAX COMPLIANCE CERTIFICATE (For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)
|
EXHIBIT 5.8.7(B)
|
- U.S. TAX COMPLIANCE CERTIFICATE (For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)
|
EXHIBIT 5.8.7(C)
|
- U.S. TAX COMPLIANCE CERTIFICATE (For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)
|
EXHIBIT 5.8.7(D)
|
- U.S. TAX COMPLIANCE CERTIFICATE (For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)
|
EXHIBIT 7.1.3(A)
|
- OPINION OF COUNSEL
|
EXHIBIT 7.1.3(B)
|
- OPINION OF IN-HOUSE COUNSEL
|
EXHIBIT 8.2.5
|
- GUARANTOR JOINDER
|
EXHIBIT 8.2.8
|
- ACQUISITION COMPLIANCE CERTIFICATE
|
EXHIBIT 8.3.3
|
- COMPLIANCE CERTIFICATE
|
8.3.10
|
Other Information.
|
(i)
|
Minimum Amounts
.
|
ATTEST:
|
NEW JERSEY NATURAL GAS COMPANY
|
By:
|
/s/ Richard Reich
|
Name:
|
Richard Reich
|
Title:
|
Assistant General Counsel
|
By:
|
/s/ Patrick J. Migliaccio
|
Name:
|
Patrick J. Migliaccio
|
Title:
|
Treasurer and Corporate Controller
|
By:
|
/s/
Edward M. Tessalone
|
Name:
|
Edward M. Tessalone
|
Title:
|
Senior Vice President
|
By:
|
/s/ Frederick W. Price
|
Name:
|
Frederick W. Price
|
Title:
|
Managing Director
|
By:
|
/s/ Peter Loupoukhine
|
Name:
|
Peter Loupoukhine
|
Title:
|
|
By:
|
/s/ Steve Levi
|
Name:
|
Steve Levi
|
Title:
|
Senior Vice President
|
By:
|
/s/ Eric Cosgrove
|
Name:
|
Eric Cosgrove
|
Title:
|
Vice President
|
By:
|
/s/ Justin Martin
|
Name:
|
Justin Martin
|
Title:
|
Authorized Officer
|
By:
|
/s/ Andrew Holtz
|
Name:
|
Andrew Holtz
|
Title:
|
Senior Vice President
|
Level
|
Debt Rating
Standard & Poor's and Moody's |
Commitment
Fee |
Base Rate
Spread
|
LIBOR Rate
Spread
|
Letter of
Credit Fee
|
I
|
A or above
or A2 or above |
0.075%
|
0.00%
|
0.875%
|
0.875%
|
II
|
A- or above but less than A
or A3 or above but less than A2 |
0.10%
|
0.125%
|
1.125%
|
1.125%
|
III
|
BBB+ or above but less than A-
or Baa1 or above but less than A3 |
0.15%
|
0.375%
|
1.375%
|
1.375%
|
IV
|
BBB or less
or
Baa2 or less
or
unrated
|
0.20%
|
0.625%
|
1.625%
|
1.625%
|
LENDER
|
AMOUNT OF COMMITMENT FOR REVOLVING CREDIT LOANS
|
PERCENTAGE |
|||
PNC BANK, NATIONAL ASSOCIATION
Address for Notices:
Two Tower Center Boulevard
East Brunswick, NJ 08816
Attention: Edward M. Tessalone
Telephone No. (732) 448-2886
Telecopier No. (732) 220-3503
E-mail: edward.tessalone@pnc.com
Address of Lending Office:
PNC Firstside Center, 5th Floor
500 First Ave.
Pittsburgh, PA 15219
Attention: Rini Davis
Telephone No. (412) 762-7638
Telecopier No. (412) 762-8672
E-mail: rini.davis@pnc.com
|
$50,000,000.00
|
|
20,000000000%
|
|
|
WELLS FARGO BANK, NATIONAL
ASSOCIATION
Address for Notices:
301 S. College St., 14
th
Floor
MAC D1053-144
Charlotte, NC 28202
Attention: Frederick W. Price, Managing Director
Telephone No. (704) 374-4062
Telecopier No. (704) 715-1486
E-mail: rick.w.price@wellsfargo.com
Address of Lending Office:
301 S. College St., 15
th
Floor
MAC D1053-150
Charlotte, NC 28202
Telephone No. (704) 374-4062
Telecopier No. (704) 715-1486
E-mail: rick.w.price@wellsfargo.com
|
$50,000,000.00
|
|
20,000000000%
|
|
LENDER
|
AMOUNT OF COMMITMENT FOR REVOLVING CREDIT LOANS
|
PERCENTAGE |
|||
SANTANDER BANK, N.A.
Address for Notices:
601 Penn Street
8
th
Floor
Reading, PA 19601
Attention: Participations
Telephone No. (610) 378-6689
Telecopier No. (484) 338-2831
E-mail: participations@santander.us
Address of Lending Office:
75 State Street
Boston, MA 02109
Attention: Jennifer Heil
Telephone No.: (610) 378-6661
Telecopier No.: (484) 338-2831
E-mail: participations@santander.us
|
$38,000,000.00
|
|
15.200000000%
|
|
|
TD BANK, N.A.
Address for Notices:
6000 Atrium Way
Mt. Laurel, NJ 08054
Attention: Marcella Brattan
Telephone No.: (856) 533-4885
Telecopier No.: (856) 533-7128
E-mail: investorprocessing@yesbank.com
Address of Lending Office:
444 Madison Ave., 2 nd Floor
New York, NY 10022
Attention: Shannon Batchman
Telephone No.: (646) 652-1406
Telecopier No.: (212) 308-0486
E-mail: Shannon.Batchman@td.com
|
$38,000,000.00
|
|
15.200000000%
|
|
LENDER
|
AMOUNT OF COMMITMENT FOR REVOLVING CREDIT LOANS
|
PERCENTAGE |
|||
U.S. BANK NATIONAL ASSOCIATION
Address for Notices:
U.S. Bank Tower
425 Walnut Street, 8th Floor
ML CN-W-8
Cincinnati, OH 45202
Attention: Eric J. Cosgrove, VP,
National Corporate Banking
Telephone No. (513) 632-3033
Telecopier No. (513) 632-2068
E-mail: Eric.Cosgrove@USBank.com
Address of Lending Office
425 Walnut Street, 8th Floor
ML CN-OH-W8
Cincinnati, OH 45202
Attention: Eric J. Cosgrove, VP,
National Corporate Banking
Telephone No. (513) 632-3033
Telecopier No. (513) 632-2068
E-mail: Eric.Cosgrove@USBank.com
|
$38,000,000.00
|
|
15.200000000%
|
|
|
JPMORGAN CHASE BANK, N.A.
Address for Notices:
10 S. Dearborn St., Floor 9
Mail code: IL1-0090
Chicago, Illinois 60603
Attention: Justin Martin
Telephone No. (312) 732-4441
Telecopier No. (312) 732-1762
E-mail: justin.2.martin@jpmorgan.com
Address of Lending Office:
10 S. Dearborn St., Floor 9
Mail code: IL1-0090
Chicago, Illinois 60603
Attention: Non-Agent Servicing Team
Telephone No. (312) 385-7072
Telecopier No. (312) 256-2608
E-mail: cls.chicago.non.agented.servicing@chase.com
|
$18,000,000.00
|
|
7.200000000%
|
|
LENDER
|
AMOUNT OF COMMITMENT FOR REVOLVING CREDIT LOANS
|
PERCENTAGE |
|||
THE NORTHERN TRUST COMPANY
Address for Notices:
50 South LaSalle Street MB-27
Chicago, IL 60603
Attention: Andrew Holtz
Telephone No. (312) 444-4243
Telecopier No. (312) 444-4906
E-mail: adh11@ntrs.com
Address of Lending Office:
50 S. LaSalle Street
MB-27
Chicago, IL 60603
Attention: Sharon Jackson
Telephone No.: (312) 630-1609
Telecopier No.: (312) 630-1566
E-mail: smj@ntrs.com
|
$18,000,000.00
|
|
7.200000000%
|
|
|
Total
|
|
$250,000,000.00
|
|
100.000000000
|
%
|
Address:
|
Two Tower Center Boulevard
|
Attention:
|
Edward M. Tessalone
|
E-mail:
|
edward.tessalone@pnc.com
|
Secured Party
|
Filing Date
|
Filing Number
|
Filing Type
1
|
Collateral Summary
|
BNY Midwest Trust Company, as Trustee
|
5/31/2007
|
2418782-4
|
I
|
Transmitting Utility filing – covers property under Indenture and Mortgage and Deed of Trust dated April 1, 1952 (as supplemented and amended from time to time) between Debtor and Secured Party
|
|
4/24/2012
|
24187824
|
C
|
Continuation
|
Secured Party
|
Filing Date
|
Filing Number
|
Filing Type
|
Collateral Summary
|
Banc of America Leasing & Capital, LLC
|
11/23/2009
|
2544901-3
|
I
|
Leased equipment
|
Banc of America Leasing & Capital, LLC
|
11/23/2009
|
2544924-2
|
I
|
Leased equipment
|
Banc of America Leasing & Capital, LLC
|
12/26/2008
|
2508293-7
|
I
|
Leased equipment
|
|
11/15/2013
|
25082937
|
C
|
Continued
|
Banc of America Leasing & Capital, LLC
|
2/11/2010
|
2554011-6
|
I
|
Leased equipment
|
Banc of America Leasing & Capital, LLC
|
12/17/2007
|
2450743-1
|
I
|
Leased equipment
|
|
1/16/2008
|
2450743-1
|
A
|
Assignment to: Farm Credit Leasing Services Corporation
|
|
11/26/2012
|
24507431
|
C
|
Continuation
|
IBM Credit LLC
|
12/8/2008
(Lapsed)
|
25052435
|
I
|
IBM equipment – precautionary filing
|
Banc of America Leasing & Capital, LLC
|
1/6/2006
|
2337501-7
|
I
|
Leased equipment
|
|
1/5/2011
|
2337501-7
|
C
|
Continuation
|
Forsythe McArthur Associates, Inc.
|
4/3/2001
|
2034417
|
I
|
Leased computer equipment – informational purposes only
|
|
1/19/2006
|
2034417
|
C
|
Continuation
|
|
1/26/2011
|
2034417
|
C
|
Continuation
|
|
5/18/2011
|
2034417
|
A
|
Amend Secured Party address
|
Assignor: Hannon Armstrong NJ Funding LLC
Secured Party: Hannon Armstrong Multi-Asset Infrastructure Trust
|
5/29/2009
|
2524135-8
|
I
|
All right, title and interest of Debtor in and to all moneys due and to become due in respect of Task Force Order No. JN-08, dated March 19, 2009 issued by the Naval Facilities Engineering Command pursuant to Area Wide Contract No. GS-OOP-99-BSD-0115
|
|
1/23/2014
|
25241358
|
C
|
Continuation
|
Fleet Capital Corporation
|
12/27/2004
|
2275156-0
|
I
|
Leased goods generally described as gas meters and related equipment
|
|
12/7/2009
|
22751560
|
C
|
Continuation
|
CIT Communications Finance Corporation
|
8/17/1009
|
2533081-6
|
I
|
Leased equipment
|
Banc of America Leasing & Capital, LLC
|
12/31/2009
|
25219640-6
|
I
|
Leased equipment
|
IBM Credit LLC
|
6/9/2008
(Lapsed)
|
24773331
|
I
|
Leased equipment – precautionary filing
|
Secured Party: State Street Bank and Trust Company of Connecticut, National Association as Owner Trustee
Assignee: Fleet National Bank of Connecticut as Indenture Trustee
|
1/10/1996
|
1676447
|
I
|
Precautionary filing in connection with leasing transaction – not to be construed as indicating that the transaction is other than a true lease
|
|
1/9/2001
|
1676447
|
A
|
Amend Secured Party address
|
|
1/9/2001
|
1676447
|
C
|
Continuation
|
|
10/24/2005
|
1676447
|
A
|
Assignment to: U.S. Bank National Association as Indenture Trustee
|
|
11/4/2005
|
1676447
|
C
|
Continuation
|
|
7/15/2010
|
1676447
|
C
|
Continuation
|
Banc of America Leasing & Capital, LLC
|
10/1/2009
|
25385373
|
I
|
Leased equipment
|
Banc of America Leasing & Capital, LLC
|
1/12/2007
|
2399117-0
|
I
|
Leased equipment
|
|
1/10/2012
|
2399117-0
|
C
|
Continuation
|
Banc of America Leasing & Capital, LLC
|
8/19/2009
|
2533223-0
|
I
|
Leased equipment
|
Banc of America Leasing & Capital, LLC
|
12/28/2012
|
50411942
|
I
|
Leased equipment
|
Assignor: Hannon Armstrong NJ Funding LLC
Secured Party: Hannon Armstrong Multi-Asset Infrastructure Trust
|
8/20/2009
|
25333619
|
I
|
All right, title and interest of Debtor in and to all moneys due and to become due in respect of Task Force Order No. JN-09, dated July 31, 2009 issued by the NAVFAC Mid-Atlantic dated August 16, 1999
|
Banc of America Leasing & Capital, LLC
|
12/27/2013
|
50709494
|
I
|
Leased equipment
|
Banc of America Leasing & Capital, LLC
|
2/7/2011
|
2593338-3
|
I
|
Leased equipment
|
Banc of America Leasing & Capital LLC
|
7/3/2010
|
2565672-5
|
I
|
Leased equipment
|
Assignor: Banc of America Leasing & Capital, LLC
Secured Party: The Fifth Third Leasing Company
|
12/21/2011
|
26124148
|
I
|
Leased equipment
|
CIT Communications Finance Corporation
|
12/21/2010
|
2587437-2
|
I
|
Leased equipment
|
CIT Finance LLC
|
3/6/2014
|
50763362
|
I
|
Leased equipment
|
CIT Communications Finance Corporation
|
4/1/2009
|
2518096-1
|
I
|
Leased equipment
|
|
5/11/2011
|
2518096-1
|
A
|
Amendment - Disclaimer of Interest Letter
|
Assignor: Banc of America Leasing & Capital, LLC
Secured Party: The Fifth Third Leasing Company
|
12/24/2009
|
2548926-2
|
I
|
Leased equipment
|
Canon Financial Services, Inc.
|
2/25/2013
|
504543231
|
I
|
Equipment subject to a lease, rental agreement or other instrument between Debtor and Secured Party and all attachments, replacements, etc; all insurance, warranty and claims against third parties with respect to the Equipment; all software and other intellectual property rights used in connection therewith; all proceeds of the foregoing; and all books and records regarding the foregoing
|
Secured Party
|
Filing Date
|
Filing Number
|
Filing Type
|
Collateral Summary
|
State Street Bank and Trust Company as Indenture Trustee
|
1/10/1996
|
77677
|
I
|
Precautionary Filing – True Lease, dated as of December 21, 1995, relating to a certain Wyckoff Road property and covering the right, title and interest in and to the building, land, fixtures, certain listed personalty and any proceeds thereof
|
|
11/16/2005
|
2005194252
|
A
|
Assignment to U. S. Bank National Association, as Indenture Trustee
|
|
12/22/2005
|
2005224411
|
C
|
Continuation
|
|
9/16/2010
|
2010085619
|
C
|
Continuation
|
1.
|
First Mortgage Bonds (Secured)
4
|
Series
|
Rate
|
Maturity Date
|
Principal Amt.
|
|
|
Series HH
5
|
5%
|
12/1/38
|
$
|
12,000
|
|
Series II
5
|
4.5%
|
8/1/23
|
10,300
|
|
|
Series JJ
5
|
4.6%
|
8/1/24
|
10,500
|
|
|
Series KK
5
|
4.9%
|
10/1/40
|
15,000
|
|
|
Series LL
6
|
5.6%
|
5/15/18
|
125,000
|
|
|
Series MM
5
|
Var.
|
9/1/27
|
9,545
|
|
|
Series NN
5
|
Var.
|
8/1/35
|
41,000
|
|
|
Series OO
5
|
Var.
|
8/1/41
|
46,500
|
|
|
Series PP7
|
3.15%
|
4/15/28
|
50,000
|
|
|
Series QQ
8
|
3.58%
|
3/13/24
|
70,000
|
|
|
Series RR
8
|
4.61%
|
3/13/44
|
55,000
|
|
4.
|
Agent: PNC Bank, National Association, as the administrative agent under the Credit Agreement
|
5.
|
Credit Agreement: Credit Agreement dated as of May 15, 2014 among New Jersey Natural Gas Company, the Lenders parties thereto, each syndication agent, each documentation agent and each other titled Lender that may be identified therein, and PNC Bank, National Association, as administrative agent for the Lenders
|
Facility Assigned 2 |
Aggregate Amount of Commitment for all Lenders
*
|
Amount of Commitment Assigned
*
|
Percentage Assigned of Commitment
3
|
|
$
|
$
|
%
|
|
$
|
$
|
%
|
|
$
|
$
|
%
|
RE:
|
Credit Agreement (as it may be amended, restated, modified or supplemented, the "Agreement") dated as of May 15, 2014 by and among the Borrower, the Lenders party thereto, each syndication agent, each documentation agent and each other titled Lender that may be identified therein, and PNC Bank, National Association, as administrative agent for the Lenders (the "Agent")
|
A.
|
Pursuant to Section 2.4 of the Agreement, the undersigned Borrower irrevocably requests
[check
one line under 1(a) below and fill in blank space next to the line as appropriate]:
|
RE:
|
Credit Agreement (as it may be amended, restated, modified or supplemented, the "Agreement") dated as of May 15, 2014 by and among the Borrower, the Lenders party thereto, each syndication agent, each documentation agent and each other titled Lender that may be identified therein, and PNC Bank, National Association, as administrative agent for the Lenders (the "Agent")
|
RE:
|
Credit Agreement (as amended, restated, supplemented or modified from time to time, the "Agreement"), dated as of May 15, 2014 by and among the Borrower, the Lenders party thereto, each syndication agent, each documentation agent and each other titled Lender that may be identified therein, and PNC Bank, National Association, as administrative agent for the Lenders (the "Agent")
|
[NAME OF BANK]
|
|
By:
___________________________________________
|
|
|
Name:
|
|
Title:
|
[NAME OF PARTICIPANT]
|
|
By:
__________________________________________
|
|
|
Name:
|
|
Title:
|
[NAME OF PARTICIPANT]
|
|
By:
__________________________________________
|
|
|
Name:
|
|
Title:
|
[NAME OF BANK]
|
|
By:
_______________________________________
|
|
|
Name:
|
|
Title:
|
1.
|
Organization and Qualification of Borrower and each Subsidiary of Borrower (Section 6.1.1)
|
2.
|
Power and Authority (Section 6.1.3)
|
3.
|
Validity and Binding Effect (Section 6.1.4)
|
4.
|
No Conflict (Section 6.1.5)
|
5.
|
Litigation (Section 6.1.6)
|
6.
|
Consents and Approvals (Section 6.1.12)
|
7.
|
Investment Companies; Regulated Entities (Section 6.1.18)
|
8.
|
Such other matters as Agent or the Banks may reasonably request
|
1.
|
No Conflict with applicable law (Section 6.1.5)
|
2.
|
Litigation (Section 6.1.6)
|
3.
|
Consents and Approvals (Section 6.1.12), all of which are in full force and effect, final and non-appealable and copies attached of each required order authorizing New Jersey Natural Gas to enter the transactions contemplated by the Credit Agreement
|
4.
|
Investment Companies; Regulated Entities and PUHCA applicability (Section 6.1.18)
|
5.
|
Banks will not as a result of the transaction or exercising any remedies available under the Loan Documents be regulated as a public utility
|
6.
|
Such other matters as Agent or the Banks may reasonably request
|
Credit Agreement
|
Consolidated for Borrower and
its Subsidiaries |
Target
|
Consolidated
Pro Forma 1 |
Maximum Leverage Ratio
(Section 8.2.12). The ratio of (A) Consolidated Total Indebtedness to (B) Consolidated Total Capitalization as of the Report Date is:
which is not more than the maximum permitted ratio of 0.65 to 1.0
|
_____ to 1.00
|
_____ to 1.00
|
_____ to 1.00
|
(A) Consolidated Total Indebtedness, as of the Report Date, is computed as follows:
(i) borrowed moneys
(ii) other transactions similar to borrowed money transactions
(iii) note purchase or acceptance credit facilities
(iv) reimbursement obligations (contingent or otherwise)
(v) Hedging Transactions
(vi) Guarantees of Hedging Transactions and of borrowed money transactions
(vii) Hybrid Securities described in clause (i) of the definition of "Hybrid Security" in the Credit Agreement
(viii) mandatory repayment obligations with respect to Hybrid Securities described in clause (ii) of the definition of "Hybrid Security" in the Credit Agreement
(ix) sum of items (i) through (viii) equals Consolidated Total Indebtedness
|
$__________
$__________
$__________
$__________
$__________
$__________ $__________ $__________ $__________ |
$__________
$__________
$__________
$__________
$__________
$__________ $__________ $__________ $__________ |
$__________
$__________
$__________
$__________
$__________
$__________ $__________ $__________
$__________
|
Credit Agreement
|
Consolidated for Borrower and
its Subsidiaries |
Target
|
Consolidated
Pro Forma 1 |
(B) Consolidated Total Capitalization, as of the Report Date, is computed as follows:
(i) Consolidated Total Indebtedness (see item (1)(A)(ix) above)
(ii) Common Shareholders' Equity
(iii) Preferred Shareholders' Equity
(iv) sum of items (i) through (iii) equals Consolidated Total Capitalization
|
$__________
$__________
$__________
$__________
|
$__________
$__________
$__________
$__________
|
$__________
$__________
$__________
$__________
|
(1)
|
Maximum Leverage Ratio
(Section 8.2.12). The ratio of (A) Consolidated Total Indebtedness to (B) Consolidated Total Capitalization of the Borrower and its Subsidiaries is __________ to 1.00 as of the Report Date, which is not more than the maximum permitted ratio of 0.65 to 1.00.
|
(A)
|
Consolidated Total Indebtedness, as of the Report Date, is computed as follows:
|
(i)
|
borrowed moneys
$______
|
(ii)
|
other transactions similar to borrowed money transactions
$______
|
(iii)
|
note purchase or acceptance credit facilities
$_____
|
(iv)
|
reimbursement obligations (contingent or otherwise) $
|
(v)
|
Hedging Transactions $
|
(vi)
|
Guarantees of Hedging Transactions and of borrowed money transactions $
|
(vii)
|
Hybrid Securities described in clause (i) of the definition of "Hybrid Security" in the Credit Agreement $
|
(viii)
|
mandatory repayment obligations with respect to Hybrid Securities described in clause (ii) of the definition of "Hybrid Security" in the Credit Agreement $
|
(ix)
|
sum of items (i) through (viii) equals Consolidated Total Indebtedness $
|
(B)
|
Consolidated Total Capitalization, as of the Report Date, is computed as follows:
|
(i)
|
Consolidated Total Indebtedness (see item (1)(A)(ix) above) $
|
(ii)
|
Common Shareholders' Equity
|
(iii)
|
Preferred Shareholders' Equity $
|
(iv)
|
sum of items (i) through (iii) equals Consolidated Total Capitalization $
|
(2)
|
Indebtedness issued by the Borrower in accordance with Article Two of the Mortgage Indenture during the fiscal
[
quarter/year
]
ended on the Report Date is $____________, as permitted by Section 8.2.1(c) of the Credit Agreement.
|
(3)
|
Unsecured Indebtedness incurred pursuant to Section 8.2.1(d) of the Credit Agreement is $__________, as permitted by Section 8.2.1(d) of the Credit Agreement.
|
(4)
|
Secured Indebtedness incurred pursuant to Section 8.2.1(d) and by the definition of Permitted Liens of the Credit Agreement other than clause (m) of the definition of Permitted Liens of the Credit Agreement, as of the Report Date is $_________.
|
(5)
|
Secured Indebtedness incurred pursuant to Section 8.2.1(d) and by clause (m) of the definition of Permitted Liens of the Credit Agreement and together with such Secured Indebtedness incurred under such provisions to date is $__________, which does not exceed the permitted amount pursuant to clause (m) of the definition of Permitted Liens of the Credit Agreement of $25,000,000.
|
(6)
|
Of the secured Indebtedness described in (4) above, as of the Report Date $____________ is secured by Purchase Money Security Interests.
|
(7)
|
Of the unsecured and secured Indebtedness described in clauses (3) and (4) above, as of the Report Date $____________ is Acquired Indebtedness.
|
(8)
|
Indebtedness under Hedging Transactions, as of the Report Date, is $________________.
|
(9)
|
The Borrower and its Subsidiaries have disposed of $__________ of assets, as permitted by Section 8.2.6(e), which amount does not exceed the permitted amount of $___________ (such permitted amount equal to 5% of consolidated total assets of the Borrower and its Subsidiaries for the applicable fiscal year of the Borrower).
|
(10)
|
During the fiscal
[
quarter/year
]
ended on the Report Date, the Borrower has declared or made dividend payments or other distribution or purchased or redeemed or otherwise acquired shares of stock, warrants, rights or options permitted by Section 8.2.15 as follows: [
Insert description of each action undertaken, including the date thereof, the dollar amount thereof and a description of the transaction
].
|
(11)
|
The Borrower and its Subsidiaries have engaged in off-balance sheet transactions that are functionally equivalent to borrowed money, as permitted by Section 8.2.17, with aggregate liabilities, as of the Report Date, of $______________.
|
(12)
|
The representations and warranties of the Borrower contained in Section 6 of the Credit Agreement (other than the representations and warranties of the Loan Parties contained in the first sentence of Section 6.1.6 [Litigation], the last sentence of Section 6.1.8(b) [Financial Statements], and Section 6.1.21 [Environmental Matters]) and in the other Loan Documents are true on and as of the Report Date with the same effect as though such representations and warranties had been made on and as of such date (except representations and warranties which expressly related solely to an earlier date or time) and the Borrower has performed and complied with all covenants and conditions of the Credit Agreement and the other Loan Documents. No event has occurred and is continuing which constitutes an Event of Default or Potential Event of Default.
|
1)
|
I have reviewed this quarterly report on Form 10-Q of New Jersey Resources Corporation;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5)
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
August 4, 2014
|
By:
|
/s/ Laurence M. Downes
|
|
|
|
Laurence M. Downes
|
|
|
|
Chairman, President & Chief Executive Officer
|
1)
|
I have reviewed this quarterly report on Form 10-Q of New Jersey Resources Corporation;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5)
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
August 4, 2014
|
By:
|
/s/ Glenn C. Lockwood
|
|
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Glenn C. Lockwood
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Executive Vice President and Chief Financial Officer
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(a)
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I am the Chief Executive Officer of New Jersey Resources Corporation;
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(b)
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To the best of my knowledge, this quarterly report on Form 10-Q for the period ended
June 30, 2014
, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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(c)
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To the best of my knowledge, based upon a review of this report, the information contained in this periodic report fairly presents, in all material respects, the financial condition and results of operations of the issuer.
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Date:
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August 4, 2014
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By:
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/s/ Laurence M. Downes
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Laurence M. Downes
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Chairman, President and Chief Executive Officer
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(a)
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I am the Chief
Financial
Officer of New Jersey Resources Corporation;
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(b)
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To the best of my knowledge, this quarterly report on Form 10-Q for the period ended
June 30, 2014
, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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(c)
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To the best of my knowledge, based upon a review of this report, the information contained in this periodic report fairly presents, in all material respects, the financial condition and results of operations of the issuer.
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Date:
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August 4, 2014
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By:
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/s/ Glenn C. Lockwood
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Glenn C. Lockwood
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Executive Vice President and Chief Financial Officer
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