|
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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||
|
|
||
|
|
||
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||
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ITEM 2.
|
||
|
ITEM 3.
|
||
|
ITEM 4.
|
||
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
|
FASB
|
Financial Accounting Standards Board
|
FCM
|
Futures Commission Merchant
|
FERC
|
Federal Energy Regulatory Commission
|
Financial Margin
|
A non-GAAP financial measure, which represents revenues earned from the sale of natural gas less costs of natural gas sold including any transportation and storage costs, and excludes any accounting impact from the change in the fair value of certain derivative instruments
|
FMB
|
First Mortgage Bonds
|
FRM
|
Financial Risk Management
|
GAAP
|
Generally Accepted Accounting Principles of the United States
|
Home Services and Other
|
Home Services and Other Operations (formerly Retail and Other Operations)
|
ICE
|
Intercontinental Exchange
|
Iroquois
|
Iroquois Gas Transmission L.P.
|
ISDA
|
The International Swaps and Derivatives Association
|
ITC
|
Federal Investment Tax Credit
|
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
|
Moody's
|
Moody's Investors Service, Inc.
|
MW
|
Megawatts
|
MWh
|
Megawatt Hour
|
NAESB
|
The North American Energy Standards Board
|
Mortgage Indenture
|
The Amended and Restated Indenture of Mortgage, Deed of Trust and Security Agreement between NJNG and U.S. Bank National Association dated as of September 1, 2014
|
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
|
NJNG
|
New Jersey Natural Gas Company
|
NJNG Credit Facility
|
NJNG's $250 million unsecured committed credit facility expiring in May 2019
|
NJR Credit Facility
|
NJR's $425 million unsecured committed credit facility expiring in August 2017
|
NJR Energy
|
NJR Energy Corporation
|
GLOSSARY OF KEY TERMS (cont.)
|
|
|
|
NJR or The Company
|
New Jersey Resources 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
|
NPNS
|
Normal Purchase/Normal Sale
|
NYMEX
|
New York Mercantile Exchange
|
O&M
|
Operation and Maintenance
|
OCI
|
Other Comprehensive Income
|
OPEB
|
Other Postemployment Benefit Plans
|
PennEast
|
PennEast Pipeline Company, LLC
|
PIM
|
Pipeline Integrity Management
|
PPA
|
Power Purchase Agreement
|
Prudential
|
Prudential Investment Management, Inc.
|
Prudential Facility
|
NJR's unsecured, uncommitted private placement shelf note agreement with Prudential
|
PTC
|
Federal Production Tax Credit
|
RA
|
Remediation Adjustment
|
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 Charge
|
SREC
|
Solar Renewable Energy Certificate
|
Steckman Ridge
|
Collectively, Steckman Ridge GP, LLC and Steckman Ridge, LP
|
Superstorm Sandy
|
Post-Tropical Cyclone Sandy
|
Tetco
|
Texas Eastern Transmission
|
The Exchange Act
|
The Securities Exchange Act of 1934, as amended
|
U.S.
|
The United States of America
|
•
|
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, revised actuarial assumptions or impacts associated with the Patient Protection and Affordable Care Act;
|
•
|
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 and regulatory approvals, land-use rights, electric grid connection (in the case of distributed power projects) and/or financing for the construction, development and operation of NJR's unregulated energy investments and NJNG's infrastructure projects in a timely manner;
|
•
|
risks associated with the management of the Company's joint ventures and partnerships;
|
•
|
risks associated with NJR's investments in distributed power projects,
including the availability of regulatory and tax incentives, 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 and PTCs 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 are incurred and the extent to which they are allowed to be recovered from customers through the regulatory process;
|
•
|
the possible expiration of NJNG's BGSS incentive programs;
|
•
|
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;
|
•
|
the regulatory and pricing policies of federal and state regulatory agencies;
|
•
|
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 operations, financial conditions and results of operations.
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||
|
March 31,
|
March 31,
|
||||||||||||
(Thousands, except per share data)
|
2015
|
|
2014
|
2015
|
|
2014
|
||||||||
OPERATING REVENUES
|
|
|
|
|
|
|
||||||||
Utility
|
$
|
374,703
|
|
|
$
|
394,528
|
|
$
|
583,430
|
|
|
$
|
627,997
|
|
Nonutility
|
638,387
|
|
|
1,185,041
|
|
1,253,784
|
|
|
1,829,977
|
|
||||
Total operating revenues
|
1,013,090
|
|
|
1,579,569
|
|
1,837,214
|
|
|
2,457,974
|
|
||||
OPERATING EXPENSES
|
|
|
|
|
|
|
||||||||
Gas purchases:
|
|
|
|
|
|
|
||||||||
Utility
|
129,281
|
|
|
146,449
|
|
213,544
|
|
|
255,937
|
|
||||
Nonutility
|
662,573
|
|
|
1,046,328
|
|
1,135,544
|
|
|
1,708,272
|
|
||||
Related parties
|
3,124
|
|
|
3,039
|
|
6,388
|
|
|
6,339
|
|
||||
Operation and maintenance
|
52,778
|
|
|
61,273
|
|
97,537
|
|
|
103,296
|
|
||||
Regulatory rider expenses
|
42,692
|
|
|
38,211
|
|
64,155
|
|
|
58,043
|
|
||||
Depreciation and amortization
|
15,204
|
|
|
12,828
|
|
29,590
|
|
|
25,394
|
|
||||
Energy and other taxes
|
24,632
|
|
|
24,429
|
|
38,953
|
|
|
41,457
|
|
||||
Total operating expenses
|
930,284
|
|
|
1,332,557
|
|
1,585,711
|
|
|
2,198,738
|
|
||||
OPERATING INCOME
|
82,806
|
|
|
247,012
|
|
251,503
|
|
|
259,236
|
|
||||
Other income, net
|
1,137
|
|
|
712
|
|
1,027
|
|
|
1,839
|
|
||||
Interest expense, net of capitalized interest
|
6,483
|
|
|
6,306
|
|
13,678
|
|
|
12,601
|
|
||||
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES
|
77,460
|
|
|
241,418
|
|
238,852
|
|
|
248,474
|
|
||||
Income tax provision
|
20,144
|
|
|
71,680
|
|
61,011
|
|
|
73,185
|
|
||||
Equity in earnings of affiliates
|
3,587
|
|
|
3,233
|
|
6,382
|
|
|
5,375
|
|
||||
NET INCOME
|
$
|
60,903
|
|
|
$
|
172,971
|
|
$
|
184,223
|
|
|
$
|
180,664
|
|
|
|
|
|
|
|
|
||||||||
EARNINGS PER COMMON SHARE
|
|
|
|
|
|
|
||||||||
Basic
|
$0.71
|
|
$2.06
|
$2.17
|
|
$2.15
|
||||||||
Diluted
|
$0.71
|
|
$2.04
|
$2.14
|
|
$2.13
|
||||||||
DIVIDENDS DECLARED PER COMMON SHARE
|
$0.23
|
|
$0.21
|
$0.45
|
|
$0.42
|
||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING
|
|
|
|
|
|
|
||||||||
Basic
|
85,328
|
|
|
84,158
|
|
84,940
|
|
|
84,100
|
|
||||
Diluted
|
86,370
|
|
|
84,914
|
|
85,982
|
|
|
84,856
|
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||
|
March 31,
|
March 31,
|
||||||||||||
(Thousands)
|
2015
|
|
2014
|
2015
|
|
2014
|
||||||||
Net income
|
$
|
60,903
|
|
|
$
|
172,971
|
|
$
|
184,223
|
|
|
$
|
180,664
|
|
Other comprehensive income, net of tax
|
|
|
|
|
|
|
||||||||
Unrealized (loss) gain on available for sale securities, net of tax of $380, $(11), $(75) and $203, respectively
|
$
|
(550
|
)
|
|
$
|
15
|
|
109
|
|
|
(295
|
)
|
||
Net unrealized gain (loss) on derivatives, net of tax of $(68), $89, $(50) and $109, respectively
|
118
|
|
|
(152
|
)
|
87
|
|
|
(186
|
)
|
||||
Adjustment to postemployment benefit obligation, net of tax of $(168), $(112), $(337) and $(223), respectively
|
239
|
|
|
161
|
|
486
|
|
|
322
|
|
||||
Other comprehensive (loss) income
|
$
|
(193
|
)
|
|
$
|
24
|
|
682
|
|
|
(159
|
)
|
||
Comprehensive income
|
$
|
60,710
|
|
|
$
|
172,995
|
|
$
|
184,905
|
|
|
$
|
180,505
|
|
|
Six Months Ended
|
||||||
|
March 31,
|
||||||
(Thousands)
|
2015
|
|
2014
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
184,223
|
|
|
$
|
180,664
|
|
Adjustments to reconcile net income to cash flows from operating activities:
|
|
|
|
||||
Unrealized (gain) loss on derivative instruments
|
(20,198
|
)
|
|
52,394
|
|
||
Depreciation and amortization
|
29,590
|
|
|
25,394
|
|
||
Allowance for equity used during construction
|
(2,014
|
)
|
|
(603
|
)
|
||
Allowance for bad debt expense
|
1,696
|
|
|
1,205
|
|
||
Deferred income taxes
|
31,576
|
|
|
22,970
|
|
||
Manufactured gas plant remediation costs
|
(2,089
|
)
|
|
(1,845
|
)
|
||
Equity in earnings of equity investees, net of distributions received
|
4,089
|
|
|
1,626
|
|
||
Cost of removal - asset retirement obligations
|
(403
|
)
|
|
(164
|
)
|
||
Contributions to postemployment benefit plans
|
(2,434
|
)
|
|
(2,348
|
)
|
||
Changes in:
|
|
|
|
||||
Components of working capital
|
42,506
|
|
|
96,040
|
|
||
Other noncurrent assets
|
39,396
|
|
|
6,038
|
|
||
Other noncurrent liabilities
|
20,568
|
|
|
2,071
|
|
||
Cash flows from operating activities
|
326,506
|
|
|
383,442
|
|
||
CASH FLOWS (USED IN) INVESTING ACTIVITIES
|
|
|
|
||||
Expenditures for:
|
|
|
|
||||
Utility plant
|
(58,657
|
)
|
|
(59,971
|
)
|
||
Solar and wind equipment
|
(88,370
|
)
|
|
(45,403
|
)
|
||
Real estate properties and other
|
(61
|
)
|
|
(477
|
)
|
||
Cost of removal
|
(11,334
|
)
|
|
(10,914
|
)
|
||
Investments in equity investees
|
(1,264
|
)
|
|
—
|
|
||
Distribution from equity investees in excess of equity in earnings
|
957
|
|
|
464
|
|
||
Proceeds from sale of asset
|
—
|
|
|
6,000
|
|
||
(Payment to) withdrawal from restricted cash construction fund
|
(1,484
|
)
|
|
85
|
|
||
Cash flows (used in) investing activities
|
(160,213
|
)
|
|
(110,216
|
)
|
||
CASH FLOWS (USED IN) FINANCING ACTIVITIES
|
|
|
|
||||
Proceeds from issuance of common stock
|
28,310
|
|
|
7,757
|
|
||
Tax benefit from stock options exercised
|
839
|
|
|
94
|
|
||
Proceeds from sale-leaseback transaction
|
7,216
|
|
|
7,576
|
|
||
Proceeds from long-term debt
|
100,000
|
|
|
125,000
|
|
||
Payments of long-term debt
|
(4,510
|
)
|
|
(65,017
|
)
|
||
Purchases of treasury stock
|
(3,945
|
)
|
|
(4,387
|
)
|
||
Payments of common stock dividends
|
(38,010
|
)
|
|
(35,264
|
)
|
||
Net payments of short-term debt
|
(155,000
|
)
|
|
(302,400
|
)
|
||
Cash flows (used in) financing activities
|
(65,100
|
)
|
|
(266,641
|
)
|
||
Change in cash and cash equivalents
|
101,193
|
|
|
6,585
|
|
||
Cash and cash equivalents at beginning of period
|
2,151
|
|
|
2,969
|
|
||
Cash and cash equivalents at end of period
|
$
|
103,344
|
|
|
$
|
9,554
|
|
CHANGES IN COMPONENTS OF WORKING CAPITAL
|
|
|
|
||||
Receivables
|
$
|
(178,647
|
)
|
|
$
|
(294,939
|
)
|
Inventories
|
205,992
|
|
|
178,955
|
|
||
Recovery of gas costs
|
15,734
|
|
|
6,866
|
|
||
Gas purchases payable
|
24,827
|
|
|
137,947
|
|
||
Gas purchases payable - related parties
|
155
|
|
|
97
|
|
||
Prepaid and accrued taxes
|
39,169
|
|
|
67,164
|
|
||
Accounts payable and other
|
(35,456
|
)
|
|
3,992
|
|
||
Restricted broker margin accounts
|
(16,707
|
)
|
|
(21,329
|
)
|
||
Customers' credit balances and deposits
|
(5,821
|
)
|
|
(8,819
|
)
|
||
Other current assets
|
(6,740
|
)
|
|
26,106
|
|
||
Total
|
$
|
42,506
|
|
|
$
|
96,040
|
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
|
|
|
|
||||
Cash paid for:
|
|
|
|
||||
Interest (net of amounts capitalized)
|
$
|
12,946
|
|
|
$
|
11,221
|
|
Income taxes
|
$
|
14,719
|
|
|
$
|
8,648
|
|
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING ACTIVITIES
|
|
|
|
||||
Accrued capital expenditures
|
$
|
26,781
|
|
|
$
|
1,347
|
|
(Thousands)
|
March 31,
2015 |
September 30,
2014 |
||||
PROPERTY, PLANT AND EQUIPMENT
|
|
|
||||
Utility plant, at cost
|
$
|
1,831,757
|
|
$
|
1,791,009
|
|
Construction work in progress
|
157,715
|
|
139,624
|
|
||
Solar and wind equipment, real estate properties and other, at cost
|
437,360
|
|
347,285
|
|
||
Construction work in progress
|
61,206
|
|
55,625
|
|
||
Total property, plant and equipment
|
2,488,038
|
|
2,333,543
|
|
||
Accumulated depreciation and amortization, utility plant
|
(422,094
|
)
|
(409,135
|
)
|
||
Accumulated depreciation and amortization, solar and wind equipment, real estate properties and other
|
(48,686
|
)
|
(40,298
|
)
|
||
Property, plant and equipment, net
|
2,017,258
|
|
1,884,110
|
|
||
CURRENT ASSETS
|
|
|
||||
Cash and cash equivalents
|
103,344
|
|
2,151
|
|
||
Customer accounts receivable
|
|
|
||||
Billed
|
331,378
|
|
189,970
|
|
||
Unbilled revenues
|
42,864
|
|
7,231
|
|
||
Allowance for doubtful accounts
|
(5,447
|
)
|
(5,357
|
)
|
||
Regulatory assets
|
34,457
|
|
26,862
|
|
||
Gas in storage, at average cost
|
71,402
|
|
277,516
|
|
||
Materials and supplies, at average cost
|
8,287
|
|
8,165
|
|
||
Prepaid and accrued taxes
|
1,462
|
|
22,269
|
|
||
Derivatives, at fair value
|
60,013
|
|
64,223
|
|
||
Restricted broker margin accounts
|
44,046
|
|
27,339
|
|
||
Deferred taxes
|
19,348
|
|
36,451
|
|
||
Other
|
34,485
|
|
25,911
|
|
||
Total current assets
|
745,639
|
|
682,731
|
|
||
NONCURRENT ASSETS
|
|
|
||||
Investments in equity investees
|
151,136
|
|
153,010
|
|
||
Regulatory assets
|
351,218
|
|
377,575
|
|
||
Derivatives, at fair value
|
5,141
|
|
5,654
|
|
||
Other
|
62,989
|
|
55,724
|
|
||
Total noncurrent assets
|
570,484
|
|
591,963
|
|
||
Total assets
|
$
|
3,333,381
|
|
$
|
3,158,804
|
|
(Thousands)
|
March 31,
2015 |
September 30,
2014 |
||||
CAPITALIZATION
|
|
|
||||
Common stock, $2.50 par value; authorized 150,000,000 shares;
outstanding March 31, 2015-85,459,835; September 30, 2014-84,356,312 |
$
|
220,830
|
|
$
|
218,223
|
|
Premium on common stock
|
213,620
|
|
199,739
|
|
||
Accumulated other comprehensive (loss), net of tax
|
(4,912
|
)
|
(5,594
|
)
|
||
Treasury stock at cost and other;
shares March 31, 2015-2,872,212; September 30, 2014-2,932,775 |
(99,219
|
)
|
(121,031
|
)
|
||
Retained earnings
|
820,804
|
|
674,829
|
|
||
Common stock equity
|
1,151,123
|
|
966,166
|
|
||
Long-term debt
|
699,199
|
|
598,209
|
|
||
Total capitalization
|
1,850,322
|
|
1,564,375
|
|
||
CURRENT LIABILITIES
|
|
|
||||
Current maturities of long-term debt
|
36,279
|
|
34,505
|
|
||
Short-term debt
|
146,000
|
|
301,000
|
|
||
Gas purchases payable
|
230,720
|
|
205,901
|
|
||
Gas purchases payable to related parties
|
1,561
|
|
1,398
|
|
||
Accounts payable and other
|
77,948
|
|
104,005
|
|
||
Dividends payable
|
19,225
|
|
19,001
|
|
||
Deferred and accrued taxes
|
23,572
|
|
2,721
|
|
||
Regulatory liabilities
|
12,115
|
|
6,072
|
|
||
New Jersey clean energy program
|
6,492
|
|
14,285
|
|
||
Derivatives, at fair value
|
84,626
|
|
79,863
|
|
||
Customers' credit balances and deposits
|
16,514
|
|
22,335
|
|
||
Total current liabilities
|
655,052
|
|
791,086
|
|
||
NONCURRENT LIABILITIES
|
|
|
||||
Deferred income taxes
|
438,783
|
|
423,213
|
|
||
Deferred investment tax credits
|
5,101
|
|
5,262
|
|
||
Deferred revenue
|
5,140
|
|
4,042
|
|
||
Derivatives, at fair value
|
3,598
|
|
6,690
|
|
||
Manufactured gas plant remediation
|
177,000
|
|
177,000
|
|
||
Postemployment employee benefit liability
|
87,220
|
|
86,674
|
|
||
Regulatory liabilities
|
71,623
|
|
61,326
|
|
||
Asset retirement obligation
|
31,129
|
|
30,495
|
|
||
Other
|
8,413
|
|
8,641
|
|
||
Total noncurrent liabilities
|
828,007
|
|
803,343
|
|
||
Commitments and contingent liabilities (Note 12)
|
|
|
|
|||
Total capitalization and liabilities
|
$
|
3,333,381
|
|
$
|
3,158,804
|
|
1.
|
NATURE OF THE BUSINESS
|
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
|
March 31,
2015 |
September 30,
2014 |
||||||||||
($ in thousands)
|
Gas in Storage
|
|
Bcf
|
Gas in Storage
|
|
Bcf
|
||||||
NJRES
|
|
$
|
65,030
|
|
22.0
|
|
|
$
|
191,250
|
|
56.5
|
|
NJNG
|
|
6,372
|
|
1.5
|
|
|
86,266
|
|
21.3
|
|
||
Total
|
|
$
|
71,402
|
|
23.5
|
|
|
$
|
277,516
|
|
77.8
|
|
(Thousands)
|
March 31,
2015 |
|
September 30,
2014 |
||||||||
NJRES
|
$
|
171,563
|
|
52
|
%
|
|
$
|
142,566
|
|
75
|
%
|
NJNG
(1)
|
153,642
|
|
46
|
|
|
41,281
|
|
22
|
|
||
NJRCEV
|
1,127
|
|
—
|
|
|
594
|
|
—
|
|
||
NJRHS and other
|
5,046
|
|
2
|
|
|
5,529
|
|
3
|
|
||
Total
|
$
|
331,378
|
|
100
|
%
|
|
$
|
189,970
|
|
100
|
%
|
(1)
|
Does not include unbilled revenues of
$42.9 million
and
$7.2 million
as of
March 31, 2015
and
September 30, 2014
, respectively.
|
3.
|
REGULATION
|
(Thousands)
|
March 31,
2015 |
September 30,
2014 |
||||
Regulatory assets-current
|
|
|
||||
New Jersey Clean Energy Program
|
$
|
6,492
|
|
$
|
14,285
|
|
Derivatives at fair value, net
|
24,759
|
|
—
|
|
||
Underrecovered gas costs
|
3,206
|
|
12,577
|
|
||
Total current regulatory assets
|
$
|
34,457
|
|
$
|
26,862
|
|
Regulatory assets-noncurrent
|
|
|
||||
Environmental remediation costs
|
|
|
||||
Expended, net of recoveries
|
$
|
17,985
|
|
$
|
30,916
|
|
Liability for future expenditures
|
177,000
|
|
177,000
|
|
||
Deferred income taxes
|
9,968
|
|
9,968
|
|
||
SAVEGREEN
|
21,517
|
|
29,180
|
|
||
Postemployment and other benefit costs
|
104,500
|
|
108,507
|
|
||
Deferred Superstorm Sandy costs
|
15,207
|
|
15,207
|
|
||
Other noncurrent regulatory assets
|
5,041
|
|
6,797
|
|
||
Total noncurrent regulatory assets
|
$
|
351,218
|
|
$
|
377,575
|
|
Regulatory liability-current
|
|
|
||||
Conservation Incentive Program
|
$
|
12,115
|
|
$
|
5,752
|
|
Derivatives at fair value, net
|
—
|
|
320
|
|
||
Total current regulatory liabilities
|
$
|
12,115
|
|
$
|
6,072
|
|
Regulatory liabilities-noncurrent
|
|
|
||||
Cost of removal obligation
|
$
|
55,372
|
|
$
|
61,163
|
|
Derivatives at fair value, net
|
—
|
|
57
|
|
||
Conservation programs
|
14,781
|
|
—
|
|
||
Other noncurrent regulatory liabilities
|
1,470
|
|
106
|
|
||
Total noncurrent regulatory liabilities
|
$
|
71,623
|
|
$
|
61,326
|
|
•
|
On
October 1, 2014
, NJNG implemented a decrease to its BGSS rate for residential sales and general service small sales customers resulting in a
5 percent
decrease to the average residential heat customer's bill. In addition, NJNG reduced its CIP rates resulting in a
4.3 percent
decrease to the average residential heat customer's bill. On
April 15, 2015
, the BPU approved the BGSS and CIP rates on a final basis.
|
•
|
On
October 22, 2014
, the BPU approved, as prudent and reasonable, the deferred O&M storm costs associated with Superstorm Sandy to be recovered in NJNG's next base rate case to be filed no later than
November 15, 2015
.
|
•
|
On
December 16, 2014
, NJNG filed a petition with the BPU to extend SAVEGREEN through
June 30, 2018
, with minor modifications.
|
•
|
On
March 18, 2015
, the BPU approved the
June 2014
compliance filing associated with SAVEGREEN to maintain the existing rate.
|
•
|
On
March 27, 2015
, NJNG filed a letter petition with the BPU to continue its existing BGSS Incentive Programs, which currently expire
October 31, 2015
.
|
•
|
On
April 2, 2015
, NJNG filed two petitions with the BPU to construct, operate and finalize the route for its Southern Reliability Link project.
|
4.
|
DERIVATIVE INSTRUMENTS
|
(Thousands)
|
Amounts Presented in Balance Sheets
(1)
|
Offsetting Derivative Instruments
(2)
|
Financial Collateral Received/Pledged
(3)
|
Net Amounts
(4)
|
||||||||||||
As of March 31, 2015:
|
|
|
|
|
|
|
|
|
||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
||||||||
NJRES
|
|
|
|
|
|
|
|
|
||||||||
Physical forward commodity contracts
|
|
$
|
11,076
|
|
|
$
|
(2,961
|
)
|
|
$
|
—
|
|
|
$
|
8,115
|
|
Financial commodity contracts
|
|
53,171
|
|
|
(51,040
|
)
|
|
—
|
|
|
2,131
|
|
||||
Total NJRES
|
|
$
|
64,247
|
|
|
$
|
(54,001
|
)
|
|
$
|
—
|
|
|
$
|
10,246
|
|
NJNG
|
|
|
|
|
|
|
|
|
||||||||
Financial commodity contracts
|
|
$
|
907
|
|
|
$
|
(907
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative liabilities:
|
|
|
|
|
|
|
|
|
||||||||
NJRES
|
|
|
|
|
|
|
|
|
||||||||
Physical forward commodity contracts
|
|
$
|
11,521
|
|
|
$
|
(2,961
|
)
|
|
$
|
(1,200
|
)
|
|
$
|
7,360
|
|
Financial commodity contracts
|
|
51,040
|
|
|
(51,040
|
)
|
|
—
|
|
|
—
|
|
||||
Foreign currency contracts
|
|
18
|
|
|
—
|
|
|
—
|
|
|
18
|
|
||||
Total NJRES
|
|
$
|
62,579
|
|
|
$
|
(54,001
|
)
|
|
$
|
(1,200
|
)
|
|
$
|
7,378
|
|
NJNG
|
|
|
|
|
|
|
|
|
||||||||
Financial commodity contracts
|
|
$
|
25,645
|
|
|
$
|
(907
|
)
|
|
$
|
(24,738
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
As of September 30, 2014:
|
|
|
|
|
|
|
|
|
||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
||||||||
NJRES
|
|
|
|
|
|
|
|
|
||||||||
Physical forward commodity contracts
|
|
$
|
15,426
|
|
|
$
|
(11,531
|
)
|
|
$
|
—
|
|
|
$
|
3,895
|
|
Financial commodity contracts
|
|
51,844
|
|
|
(51,844
|
)
|
|
—
|
|
|
—
|
|
||||
Total NJRES
|
|
$
|
67,270
|
|
|
$
|
(63,375
|
)
|
|
$
|
—
|
|
|
$
|
3,895
|
|
NJNG
|
|
|
|
|
|
|
|
|
||||||||
Financial commodity contracts
|
|
$
|
2,607
|
|
|
$
|
(2,230
|
)
|
|
$
|
(377
|
)
|
|
$
|
—
|
|
Derivative liabilities:
|
|
|
|
|
|
|
|
|
||||||||
NJRES
|
|
|
|
|
|
|
|
|
||||||||
Physical forward commodity contracts
|
|
$
|
30,910
|
|
|
$
|
(12,058
|
)
|
|
$
|
(1,200
|
)
|
|
$
|
17,652
|
|
Financial commodity contracts
|
|
53,258
|
|
|
(51,844
|
)
|
|
(1,414
|
)
|
|
—
|
|
||||
Foreign currency contracts
|
|
155
|
|
|
—
|
|
|
—
|
|
|
155
|
|
||||
Total NJRES
|
|
$
|
84,323
|
|
|
$
|
(63,902
|
)
|
|
$
|
(2,614
|
)
|
|
$
|
17,807
|
|
NJNG
|
|
|
|
|
|
|
|
|
||||||||
Financial commodity contracts
|
|
$
|
2,230
|
|
|
$
|
(2,230
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
(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 FCMs 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.
|
(Thousands)
|
Location of gain (loss) recognized in income on derivatives
|
Amount of gain (loss) recognized
in income on derivatives
|
|||||||||||||
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||
|
|
March 31,
|
March 31,
|
||||||||||||
Derivatives not designated as hedging instruments:
|
2015
|
|
2014
|
2015
|
|
2014
|
|||||||||
NJRES:
|
|
|
|
|
|
|
|
||||||||
Physical commodity contracts
|
Operating revenues
|
$
|
(1,144
|
)
|
|
$
|
(57,916
|
)
|
$
|
14,947
|
|
|
$
|
(57,998
|
)
|
Physical commodity contracts
|
Gas purchases
|
10,063
|
|
|
(54,481
|
)
|
(9,793
|
)
|
|
(79,474
|
)
|
||||
Financial commodity contracts
|
Gas purchases
|
(27,204
|
)
|
|
(101,629
|
)
|
90,517
|
|
|
(141,699
|
)
|
||||
Total unrealized and realized (losses) gains
|
$
|
(18,285
|
)
|
|
$
|
(214,026
|
)
|
$
|
95,671
|
|
|
$
|
(279,171
|
)
|
(1)
|
The settlement of foreign currency transactions over the next 12 months is expected to result in the reclassification of
$(18,000)
from OCI into earnings. The maximum tenor is
April 2015
.
|
|
|
|
Volume (Bcf)
|
|||
|
|
|
March 31,
2015 |
September 30,
2014 |
||
NJNG
|
Futures
|
|
27.2
|
|
17.3
|
|
NJRES
|
Futures
|
|
(37.9
|
)
|
(62.1
|
)
|
|
Options
|
|
1.2
|
|
1.2
|
|
|
Physical
|
|
74.7
|
|
28.6
|
|
(Thousands)
|
Balance Sheet Location
|
March 31,
2015 |
September 30,
2014 |
||||
NJNG
|
NJNG Broker margin - Current assets
|
$
|
29,471
|
|
$
|
1,057
|
|
NJRES
|
NJRES Broker margin - Current assets
|
$
|
14,575
|
|
$
|
26,282
|
|
(Thousands)
|
Gross Credit Exposure
|
||||
Investment grade
|
|
$
|
144,536
|
|
|
Noninvestment grade
|
|
23,734
|
|
|
|
Internally rated investment grade
|
|
26,404
|
|
|
|
Internally rated noninvestment grade
|
|
14,813
|
|
|
|
Total
|
|
$
|
209,487
|
|
|
5.
|
FAIR VALUE
|
(Thousands)
|
March 31,
2015 |
September 30,
2014 |
||||
Carrying value
(1)
|
$
|
682,845
|
|
$
|
557,845
|
|
Fair market value
|
$
|
728,283
|
|
$
|
586,909
|
|
(1)
|
Excludes
capital leases of
$52.6 million
and
$49.9 million
as of
March 31, 2015
and
September 30, 2014
, respectively.
|
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 financial 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 non-FCM counterparties (basis swaps, fixed swaps and/or options). For some physical commodity contracts the Company utilizes transportation tariff rates that are publicly available and that it considers to be observable inputs that are equivalent to market data received from an independent source. There are no significant judgments or adjustments applied to the transportation tariff inputs and no market perspective is required. Even if the transportation tariff input was considered to be a “model”, it would still be considered to be a Level 2 input as:
|
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 March 31, 2015:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Physical forward commodity contracts
|
|
$
|
—
|
|
|
|
$
|
11,076
|
|
|
|
$
|
—
|
|
|
$
|
11,076
|
|
Financial derivative contracts - natural gas
|
|
54,078
|
|
|
|
—
|
|
|
|
—
|
|
|
54,078
|
|
||||
Available for sale equity securities - energy industry
(1)
|
|
10,856
|
|
|
|
—
|
|
|
|
—
|
|
|
10,856
|
|
||||
Other
(2)
|
|
1,678
|
|
|
|
—
|
|
|
|
—
|
|
|
1,678
|
|
||||
Total assets at fair value
|
|
$
|
66,612
|
|
|
|
$
|
11,076
|
|
|
|
$
|
—
|
|
|
$
|
77,688
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Physical forward commodity contracts
|
|
$
|
—
|
|
|
|
$
|
11,521
|
|
|
|
$
|
—
|
|
|
$
|
11,521
|
|
Financial commodity contracts - natural gas
|
|
76,685
|
|
|
|
—
|
|
|
|
—
|
|
|
76,685
|
|
||||
Financial commodity contracts - foreign exchange
|
|
—
|
|
|
|
18
|
|
|
|
—
|
|
|
18
|
|
||||
Total liabilities at fair value
|
|
$
|
76,685
|
|
|
|
$
|
11,539
|
|
|
|
$
|
—
|
|
|
$
|
88,224
|
|
As of September 30, 2014:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Physical forward commodity contracts
|
|
$
|
—
|
|
|
|
$
|
15,426
|
|
|
|
$
|
—
|
|
|
$
|
15,426
|
|
Financial derivative contracts - natural gas
|
|
54,451
|
|
|
|
—
|
|
|
|
—
|
|
|
54,451
|
|
||||
Available for sale equity securities - energy industry
(1)
|
|
10,672
|
|
|
|
—
|
|
|
|
—
|
|
|
10,672
|
|
||||
Other
(2)
|
|
1,299
|
|
|
|
—
|
|
|
|
—
|
|
|
1,299
|
|
||||
Total assets at fair value
|
|
$
|
66,422
|
|
|
|
$
|
15,426
|
|
|
|
$
|
—
|
|
|
$
|
81,848
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Physical forward commodity contracts
|
|
$
|
—
|
|
|
|
$
|
30,910
|
|
|
|
$
|
—
|
|
|
$
|
30,910
|
|
Financial commodity contracts - natural gas
|
|
55,488
|
|
|
|
—
|
|
|
|
—
|
|
|
55,488
|
|
||||
Financial commodity contracts - foreign exchange
|
|
—
|
|
|
|
155
|
|
|
|
—
|
|
|
155
|
|
||||
Total liabilities at fair value
|
|
$
|
55,488
|
|
|
|
$
|
31,065
|
|
|
|
$
|
—
|
|
|
$
|
86,553
|
|
(1)
|
Included in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets.
|
(2)
|
Includes various money market funds in Level 1.
|
6.
|
INVESTMENTS IN EQUITY INVESTEES
|
(Thousands)
|
March 31,
2015 |
September 30,
2014 |
||||
Steckman Ridge
(1)
|
$
|
127,384
|
|
$
|
128,413
|
|
Iroquois
|
21,928
|
|
24,042
|
|
||
PennEast
|
1,824
|
|
555
|
|
||
Total
|
$
|
151,136
|
|
$
|
153,010
|
|
(1)
|
Includes loans with a total outstanding principal balance of
$70.4 million
for both
March 31, 2015
and
September 30, 2014
. The loans accrue interest at a variable rate that resets quarterly and are due October 1, 2023.
|
7.
|
EARNINGS PER SHARE
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||
|
March 31,
|
March 31,
|
||||||||||
(Thousands, except per share amounts)
|
2015
|
2014
|
2015
|
2014
|
||||||||
Net income, as reported
|
$
|
60,903
|
|
$
|
172,971
|
|
$
|
184,223
|
|
$
|
180,664
|
|
Basic earnings per share
|
|
|
|
|
||||||||
Weighted average shares of common stock outstanding-basic
|
85,328
|
|
84,158
|
|
84,940
|
|
84,100
|
|
||||
Basic earnings per common share
|
$0.71
|
$2.06
|
$2.17
|
$2.15
|
||||||||
Diluted earnings per share
|
|
|
|
|
||||||||
Weighted average shares of common stock outstanding-basic
|
85,328
|
|
84,158
|
|
84,940
|
|
84,100
|
|
||||
Incremental shares
(1)
|
1,042
|
|
756
|
|
1,042
|
|
756
|
|
||||
Weighted average shares of common stock outstanding-diluted
|
86,370
|
|
84,914
|
|
85,982
|
|
84,856
|
|
||||
Diluted earnings per common share
(2)
|
$0.71
|
$2.04
|
$2.14
|
$2.13
|
(1)
|
Incremental shares consist primarily of stock awards and performance shares.
|
(2)
|
There were
no
anti-dilutive shares excluded from the calculation of diluted earnings per share for the three and
six months ended
March 31, 2015
, and
2014
.
|
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, 2014
|
84,356
|
|
$
|
218,223
|
|
$
|
199,739
|
|
|
$
|
(5,594
|
)
|
|
$
|
(121,031
|
)
|
$
|
674,829
|
|
$
|
966,166
|
|
Net income
|
|
|
|
|
|
|
|
184,223
|
|
184,223
|
|
|||||||||||
Other comprehensive income
|
|
|
|
|
682
|
|
|
|
|
682
|
|
|||||||||||
Common stock issued under stock plans
|
1,196
|
|
2,607
|
|
15,267
|
|
|
|
|
6,329
|
|
|
24,203
|
|
||||||||
Tax benefits from stock plans
|
|
|
(1,386
|
)
|
|
|
|
|
|
(1,386
|
)
|
|||||||||||
Cash dividend declared ($.45 per share)
|
|
|
|
|
|
|
|
(38,248
|
)
|
(38,248
|
)
|
|||||||||||
Treasury stock and other
|
(92
|
)
|
|
|
|
|
|
15,483
|
|
|
15,483
|
|
||||||||||
Balance as of March 31, 2015
|
85,460
|
|
$
|
220,830
|
|
$
|
213,620
|
|
|
$
|
(4,912
|
)
|
|
$
|
(99,219
|
)
|
$
|
820,804
|
|
$
|
1,151,123
|
|
(Thousands)
|
Available for Sale Securities
|
Cash Flow Hedges
|
Postemployment Benefit Obligation
|
Total
|
|||||||||||
Balance as of September 30, 2014
|
$
|
4,782
|
|
|
$
|
(93
|
)
|
|
$
|
(10,283
|
)
|
|
$
|
(5,594
|
)
|
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss), before reclassifications, net of tax of $(75), $149, $0, $74
|
109
|
|
|
(256
|
)
|
|
—
|
|
|
(147
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(199), $(337), $(536)
|
—
|
|
|
343
|
|
(1)
|
486
|
|
(2)
|
829
|
|
||||
Net current-period other comprehensive income, net of tax of $(75), $(50), $(337), $(462)
|
109
|
|
|
87
|
|
|
486
|
|
|
682
|
|
||||
Balance as of March 31, 2015
|
$
|
4,891
|
|
|
$
|
(6
|
)
|
|
$
|
(9,797
|
)
|
|
$
|
(4,912
|
)
|
|
|
|
|
|
|
|
|
||||||||
Balance as of September 30, 2013
|
$
|
5,400
|
|
|
$
|
12
|
|
|
$
|
(7,033
|
)
|
|
$
|
(1,621
|
)
|
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
||||||||
Other comprehensive (loss), before reclassifications, net of tax of $203, $169, $0, $372
|
(295
|
)
|
|
(291
|
)
|
|
—
|
|
|
(586
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(60), $(223), $(283)
|
—
|
|
|
105
|
|
(1)
|
322
|
|
(2)
|
427
|
|
||||
Net current-period other comprehensive (loss) income, net of tax of $203, $109, $(223), $89
|
(295
|
)
|
|
(186
|
)
|
|
322
|
|
|
(159
|
)
|
||||
Balance as of March 31, 2014
|
$
|
5,105
|
|
|
$
|
(174
|
)
|
|
$
|
(6,711
|
)
|
|
$
|
(1,780
|
)
|
(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)
|
March 31,
2015 |
|
September 30,
2014 |
|
Expiration Dates
|
||||
NJR
|
|
|
|
|
|
||||
Bank revolving credit facilities
(1)
|
$
|
425,000
|
|
|
$
|
425,000
|
|
|
August 2017
|
Notes outstanding at end of period
|
$
|
—
|
|
|
$
|
148,000
|
|
|
|
Weighted average interest rate at end of period
|
—
|
%
|
|
1.08
|
%
|
|
|
||
Amount available at end of period
(2)
|
$
|
417,345
|
|
|
$
|
256,484
|
|
|
|
Bank revolving credit facilities
(3)
|
$
|
100,000
|
|
|
$
|
—
|
|
|
October 2015
|
Amount available at end of period
|
$
|
100,000
|
|
|
$
|
—
|
|
|
|
NJNG
|
|
|
|
|
|
||||
Bank revolving credit facilities
(1)
|
$
|
250,000
|
|
|
$
|
250,000
|
|
|
May 2019
|
Commercial paper outstanding at end of period
|
$
|
146,000
|
|
|
$
|
153,000
|
|
|
|
Weighted average interest rate at end of period
|
0.18
|
%
|
|
0.12
|
%
|
|
|
||
Amount available at end of period
(4)
|
$
|
103,269
|
|
|
$
|
96,269
|
|
|
|
(1)
|
Committed credit facilities, which require commitment fees on the unused amounts.
|
(2)
|
Letters of credit outstanding total
$7.7 million
and
$20.5 million
as of
March 31, 2015
and
September 30, 2014
, respectively, which reduces amount available by the same amount.
|
(3)
|
Uncommitted credit facilities, which require no commitment fees.
|
(4)
|
Letters of credit outstanding total
$731,000
and
$731,000
as of
March 31, 2015
and
September 30, 2014
, respectively, which reduces the amount available by the same amount.
|
10.
|
EMPLOYEE BENEFIT PLANS
|
|
Pension
|
OPEB
|
||||||||||||||||||||||
|
Three Months Ended
|
Six Months Ended
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||||
|
March 31,
|
March 31,
|
March 31,
|
March 31,
|
||||||||||||||||||||
(Thousands)
|
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
||||||||||||||||
Service cost
|
$
|
1,871
|
|
$
|
1,536
|
|
$
|
3,742
|
|
$
|
3,072
|
|
$
|
1,064
|
|
$
|
981
|
|
$
|
2,127
|
|
$
|
1,962
|
|
Interest cost
|
2,550
|
|
2,517
|
|
5,100
|
|
5,033
|
|
1,435
|
|
1,433
|
|
2,870
|
|
2,866
|
|
||||||||
Expected return on plan assets
|
(4,273
|
)
|
(3,869
|
)
|
(8,545
|
)
|
(7,738
|
)
|
(1,244
|
)
|
(1,043
|
)
|
(2,488
|
)
|
(2,087
|
)
|
||||||||
Recognized actuarial loss
|
1,747
|
|
1,399
|
|
3,492
|
|
2,798
|
|
735
|
|
625
|
|
1,471
|
|
1,250
|
|
||||||||
Prior service cost amortization
|
27
|
|
28
|
|
55
|
|
56
|
|
(91
|
)
|
(89
|
)
|
(182
|
)
|
(178
|
)
|
||||||||
Recognized net initial obligation
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2
|
|
—
|
|
5
|
|
||||||||
Net periodic benefit cost
|
$
|
1,922
|
|
$
|
1,611
|
|
$
|
3,844
|
|
$
|
3,221
|
|
$
|
1,899
|
|
$
|
1,909
|
|
$
|
3,798
|
|
$
|
3,818
|
|
11.
|
INCOME TAXES
|
12.
|
COMMITMENTS AND CONTINGENT LIABILITIES
|
(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
|
Six Months Ended
|
||||||||||
|
March 31,
|
March 31,
|
||||||||||
(Thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||
Operating revenues
|
|
|
|
|
||||||||
Natural Gas Distribution
|
|
|
|
|
||||||||
External customers
|
$
|
374,703
|
|
$
|
394,528
|
|
$
|
583,430
|
|
$
|
627,997
|
|
Energy Services
|
|
|
|
|
||||||||
External customers
(1)
|
626,107
|
|
1,173,835
|
|
1,226,669
|
|
1,807,526
|
|
||||
Intercompany
|
56,097
|
|
67,749
|
|
59,223
|
|
71,767
|
|
||||
Clean Energy Ventures
|
|
|
|
|
||||||||
External customers
|
4,068
|
|
2,679
|
|
10,303
|
|
4,852
|
|
||||
Subtotal
|
1,060,975
|
|
1,638,791
|
|
1,879,625
|
|
2,512,142
|
|
||||
Home Services and Other
|
|
|
|
|
||||||||
External customers
|
8,212
|
|
8,527
|
|
16,812
|
|
17,599
|
|
||||
Intercompany
|
375
|
|
297
|
|
786
|
|
499
|
|
||||
Eliminations
|
(56,472
|
)
|
(68,046
|
)
|
(60,009
|
)
|
(72,266
|
)
|
||||
Total
|
$
|
1,013,090
|
|
$
|
1,579,569
|
|
$
|
1,837,214
|
|
$
|
2,457,974
|
|
Depreciation and amortization
|
|
|
|
|
||||||||
Natural Gas Distribution
|
$
|
10,647
|
|
$
|
9,972
|
|
$
|
21,192
|
|
$
|
19,807
|
|
Energy Services
|
23
|
|
13
|
|
45
|
|
25
|
|
||||
Clean Energy Ventures
|
4,297
|
|
2,635
|
|
7,888
|
|
5,146
|
|
||||
Midstream
|
1
|
|
2
|
|
3
|
|
3
|
|
||||
Subtotal
|
14,968
|
|
12,622
|
|
29,128
|
|
24,981
|
|
||||
Home Services and Other
|
238
|
|
208
|
|
476
|
|
415
|
|
||||
Eliminations
|
(2
|
)
|
(2
|
)
|
(14
|
)
|
(2
|
)
|
||||
Total
|
$
|
15,204
|
|
$
|
12,828
|
|
$
|
29,590
|
|
$
|
25,394
|
|
Interest income
(2)
|
|
|
|
|
||||||||
Natural Gas Distribution
|
$
|
10
|
|
$
|
181
|
|
$
|
100
|
|
$
|
442
|
|
Energy Services
|
13
|
|
—
|
|
13
|
|
—
|
|
||||
Clean Energy Ventures
|
22
|
|
—
|
|
22
|
|
—
|
|
||||
Midstream
|
242
|
|
270
|
|
481
|
|
538
|
|
||||
Subtotal
|
287
|
|
451
|
|
616
|
|
980
|
|
||||
Home Services and Other
|
201
|
|
—
|
|
201
|
|
—
|
|
||||
Eliminations
|
(242
|
)
|
(235
|
)
|
(481
|
)
|
(468
|
)
|
||||
Total
|
$
|
246
|
|
$
|
216
|
|
$
|
336
|
|
$
|
512
|
|
(1)
|
Includes sales to Canada, which accounted for
4.4 percent
and
4 percent
of total operating revenues during the
six months ended
March 31, 2015
and
2014
,
respectively
.
|
(2)
|
Included in other income on the Unaudited Condensed Consolidated Statements of Operations.
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||
|
March 31,
|
March 31,
|
||||||||||
(Thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||
Interest expense, net of capitalized interest
|
|
|
|
|
||||||||
Natural Gas Distribution
|
$
|
4,388
|
|
$
|
3,888
|
|
$
|
8,997
|
|
$
|
7,872
|
|
Energy Services
|
288
|
|
661
|
|
801
|
|
1,277
|
|
||||
Clean Energy Ventures
|
1,661
|
|
1,249
|
|
3,478
|
|
2,435
|
|
||||
Midstream
|
210
|
|
377
|
|
460
|
|
775
|
|
||||
Subtotal
|
6,547
|
|
6,175
|
|
13,736
|
|
12,359
|
|
||||
Home Services and Other
|
(64
|
)
|
131
|
|
(58
|
)
|
242
|
|
||||
Total
|
$
|
6,483
|
|
$
|
6,306
|
|
$
|
13,678
|
|
$
|
12,601
|
|
Income tax provision (benefit)
|
|
|
|
|
||||||||
Natural Gas Distribution
|
$
|
23,778
|
|
$
|
23,725
|
|
$
|
37,944
|
|
$
|
37,908
|
|
Energy Services
|
3,923
|
|
64,345
|
|
49,800
|
|
53,072
|
|
||||
Clean Energy Ventures
|
(9,042
|
)
|
(17,388
|
)
|
(28,763
|
)
|
(19,432
|
)
|
||||
Midstream
|
1,819
|
|
1,573
|
|
3,311
|
|
2,569
|
|
||||
Subtotal
|
20,478
|
|
72,255
|
|
62,292
|
|
74,117
|
|
||||
Home Services and Other
|
(972
|
)
|
(1,129
|
)
|
(1,424
|
)
|
(1,320
|
)
|
||||
Eliminations
|
638
|
|
554
|
|
143
|
|
388
|
|
||||
Total
|
$
|
20,144
|
|
$
|
71,680
|
|
$
|
61,011
|
|
$
|
73,185
|
|
Equity in earnings of affiliates
|
|
|
|
|
||||||||
Midstream
|
$
|
4,581
|
|
$
|
4,141
|
|
$
|
8,356
|
|
$
|
7,083
|
|
Eliminations
|
(994
|
)
|
(908
|
)
|
(1,974
|
)
|
(1,708
|
)
|
||||
Total
|
$
|
3,587
|
|
$
|
3,233
|
|
$
|
6,382
|
|
$
|
5,375
|
|
Net financial earnings (loss)
|
|
|
|
|
||||||||
Natural Gas Distribution
|
$
|
48,594
|
|
$
|
47,043
|
|
$
|
76,780
|
|
$
|
74,682
|
|
Energy Services
|
36,316
|
|
91,407
|
|
52,752
|
|
98,781
|
|
||||
Clean Energy Ventures
|
13,010
|
|
12,807
|
|
22,018
|
|
16,421
|
|
||||
Midstream
|
2,604
|
|
2,254
|
|
4,724
|
|
3,688
|
|
||||
Subtotal
|
100,524
|
|
153,511
|
|
156,274
|
|
193,572
|
|
||||
Home Services and Other
|
(1,359
|
)
|
(1,576
|
)
|
(1,951
|
)
|
(1,777
|
)
|
||||
Eliminations
|
(22
|
)
|
(15
|
)
|
(70
|
)
|
(15
|
)
|
||||
Total
|
$
|
99,143
|
|
$
|
151,920
|
|
$
|
154,253
|
|
$
|
191,780
|
|
Capital expenditures
|
|
|
|
|
||||||||
Natural Gas Distribution
|
$
|
33,243
|
|
$
|
35,484
|
|
$
|
69,991
|
|
$
|
70,885
|
|
Clean Energy Ventures
|
33,025
|
|
20,486
|
|
88,370
|
|
45,403
|
|
||||
Subtotal
|
66,268
|
|
55,970
|
|
158,361
|
|
116,288
|
|
||||
Home Services and Other
|
50
|
|
272
|
|
61
|
|
477
|
|
||||
Total
|
$
|
66,318
|
|
$
|
56,242
|
|
$
|
158,422
|
|
$
|
116,765
|
|
Investments in equity investees
|
|
|
|
|
||||||||
Midstream
|
$
|
717
|
|
$
|
—
|
|
$
|
1,264
|
|
$
|
—
|
|
Total
|
$
|
717
|
|
$
|
—
|
|
$
|
1,264
|
|
$
|
—
|
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||
|
March 31,
|
March 31,
|
||||||||||
(Thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||
Consolidated net financial earnings
|
$
|
99,143
|
|
$
|
151,920
|
|
$
|
154,253
|
|
$
|
191,780
|
|
Less:
|
|
|
|
|
||||||||
Unrealized loss (gain) from derivative instruments and related transactions
|
68,474
|
|
(13,256
|
)
|
(20,198
|
)
|
52,395
|
|
||||
Effects of economic hedging related to natural gas inventory
|
(23,450
|
)
|
(18,668
|
)
|
(32,215
|
)
|
(41,548
|
)
|
||||
Tax adjustments
|
(6,784
|
)
|
10,873
|
|
22,443
|
|
269
|
|
||||
Consolidated net income
|
$
|
60,903
|
|
$
|
172,971
|
|
$
|
184,223
|
|
$
|
180,664
|
|
•
|
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)
|
March 31,
2015 |
September 30,
2014 |
||||
Assets at end of period:
|
|
|
||||
Natural Gas Distribution
|
$
|
2,268,272
|
|
$
|
2,143,684
|
|
Energy Services
|
334,123
|
|
457,080
|
|
||
Clean Energy Ventures
|
473,136
|
|
380,707
|
|
||
Midstream
|
151,811
|
|
153,891
|
|
||
Subtotal
|
3,227,342
|
|
3,135,362
|
|
||
Home Services and Other
|
167,610
|
|
82,413
|
|
||
Intercompany assets
(1)
|
(61,571
|
)
|
(58,971
|
)
|
||
Total
|
$
|
3,333,381
|
|
$
|
3,158,804
|
|
(1)
|
Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation.
|
14.
|
RELATED PARTY TRANSACTIONS
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||
|
March 31,
|
|
March 31,
|
||||||||||||||||||||
(Thousands)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Natural Gas Distribution
|
$
|
48,594
|
|
80
|
%
|
|
$
|
47,043
|
|
27
|
%
|
|
$
|
76,780
|
|
42
|
%
|
|
$
|
74,682
|
|
41
|
%
|
Energy Services
|
6,743
|
|
11
|
|
|
110,636
|
|
64
|
|
|
85,630
|
|
46
|
|
|
91,250
|
|
51
|
|
||||
Clean Energy Ventures
|
3,240
|
|
5
|
|
|
13,672
|
|
8
|
|
|
18,847
|
|
10
|
|
|
12,164
|
|
7
|
|
||||
Midstream
|
2,604
|
|
4
|
|
|
2,254
|
|
1
|
|
|
4,724
|
|
3
|
|
|
3,688
|
|
2
|
|
||||
Home Services and Other
|
(1,359
|
)
|
(2
|
)
|
|
(1,576
|
)
|
(1
|
)
|
|
(1,951
|
)
|
(1
|
)
|
|
(1,777
|
)
|
(1
|
)
|
||||
Eliminations
(1)
|
1,081
|
|
2
|
|
|
942
|
|
1
|
|
|
193
|
|
—
|
|
|
657
|
|
—
|
|
||||
Total
|
$
|
60,903
|
|
100
|
%
|
|
$
|
172,971
|
|
100
|
%
|
|
$
|
184,223
|
|
100
|
%
|
|
$
|
180,664
|
|
100
|
%
|
(1)
|
Consists
of transactions between subsidiaries that are eliminated in consolidation
.
|
•
|
a decrease
at NJRES due to lower
average gas prices in fiscal 2015, compared with fiscal 2014, during which there was greater market volatility resulting from the extreme cold weather patterns experienced across the U.S., especially in the Midwest, which did not recur during fiscal 2015, along with
an increase
in unrealized losses, as a result of timing differences in the settlement of certain economic hedges; and
|
•
|
a decrease
in the portion of forecasted NJRCEV tax credits recognized during the quarter due to the decrease in consolidated pre-tax income for the quarter.
|
•
|
an increase
at NJRCEV due primarily to increases in forecasted ITCs and PTCs, as well as increases in SREC sales and wind energy revenue; partially offset by
|
•
|
a decrease
at NJRES due to lower
average gas prices in fiscal 2015, compared with fiscal 2014, during which there was greater market volatility resulting from the extreme cold weather patterns experienced across the U.S., especially in the Midwest, which did not recur during fiscal 2015.
|
(Thousands)
|
March 31,
2015 |
|
September 30,
2014 |
||||||||
Assets
|
|
|
|
|
|
||||||
Natural Gas Distribution
|
$
|
2,268,272
|
|
68
|
%
|
|
$
|
2,143,684
|
|
68
|
%
|
Energy Services
|
334,123
|
|
10
|
|
|
457,080
|
|
14
|
|
||
Clean Energy Ventures
|
473,136
|
|
14
|
|
|
380,707
|
|
12
|
|
||
Midstream
|
151,811
|
|
5
|
|
|
153,891
|
|
5
|
|
||
Home Services and Other
|
167,610
|
|
5
|
|
|
82,413
|
|
3
|
|
||
Intercompany assets
(1)
|
(61,571
|
)
|
(2
|
)
|
|
(58,971
|
)
|
(2
|
)
|
||
Total
|
$
|
3,333,381
|
|
100
|
%
|
|
$
|
3,158,804
|
|
100
|
%
|
(1)
|
Consists of transactions between subsidiaries that are eliminated in consolidation.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
March 31,
|
|
March 31,
|
||||||||||||
($ in Thousands)
|
2015
|
2014
|
2015
|
|
2014
|
||||||||||
Net income
|
$
|
60,903
|
|
|
$
|
172,971
|
|
|
$
|
184,223
|
|
|
$
|
180,664
|
|
Add:
|
|
|
|
|
|
|
|
||||||||
Consolidated unrealized loss (gain) on derivative instruments
|
68,474
|
|
|
(13,256
|
)
|
|
(20,198
|
)
|
|
52,395
|
|
||||
Effects of economic hedging related to natural gas inventory
|
(23,450
|
)
|
|
(18,668
|
)
|
|
(32,215
|
)
|
|
(41,548
|
)
|
||||
Tax adjustments
|
(6,784
|
)
|
|
10,873
|
|
|
22,443
|
|
|
269
|
|
||||
Net financial earnings
|
$
|
99,143
|
|
|
$
|
151,920
|
|
|
$
|
154,253
|
|
|
$
|
191,780
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||
|
March 31,
|
|
March 31,
|
||||||||||||||||||||
($ in Thousands)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||||||
Net financial earnings (loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Natural Gas Distribution
|
$
|
48,594
|
|
49
|
%
|
|
$
|
47,043
|
|
31
|
%
|
|
$
|
76,780
|
|
50
|
%
|
|
$
|
74,682
|
|
39
|
%
|
Energy Services
|
36,316
|
|
36
|
|
|
91,407
|
|
60
|
|
|
52,752
|
|
34
|
|
|
98,781
|
|
51
|
|
||||
Clean Energy Ventures
|
13,010
|
|
13
|
|
|
12,807
|
|
8
|
|
|
22,018
|
|
14
|
|
|
16,421
|
|
9
|
|
||||
Midstream
|
2,604
|
|
3
|
|
|
2,254
|
|
2
|
|
|
4,724
|
|
3
|
|
|
3,688
|
|
2
|
|
||||
Home Services and Other
|
(1,359
|
)
|
(1
|
)
|
|
(1,576
|
)
|
(1
|
)
|
|
(1,951
|
)
|
(1
|
)
|
|
(1,777
|
)
|
(1
|
)
|
||||
Eliminations
(1)
|
(22
|
)
|
—
|
|
|
(15
|
)
|
—
|
|
|
(70
|
)
|
—
|
|
|
(15
|
)
|
—
|
|
||||
Total
|
$
|
99,143
|
|
100
|
%
|
|
$
|
151,920
|
|
100
|
%
|
|
$
|
154,253
|
|
100
|
%
|
|
$
|
191,780
|
|
100
|
%
|
(1)
|
Consists
of transactions between subsidiaries that are eliminated in consolidation
.
|
•
|
a decrease
at NJRES due to lower
average gas prices in fiscal 2015, compared with fiscal 2014, during which there was greater market volatility resulting from the extreme cold weather patterns experienced across the U.S., especially in the Midwest, which did not recur during fiscal 2015.
|
•
|
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 customer growth rate, which NJNG expects to be approximately
1.6 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 its financial obligations related to remediation activities associated with its MGP sites.
|
(Millions)
|
2015
|
2016
|
||||
Customer growth
|
$
|
33.9
|
|
$
|
26.9
|
|
System maintenance and other
|
66.9
|
|
54.4
|
|
||
SAFE
|
41.2
|
|
39.0
|
|
||
Superstorm Sandy
|
5.0
|
|
—
|
|
||
NGV Advantage
|
4.2
|
|
—
|
|
||
NJ RISE
|
7.0
|
|
14.7
|
|
||
Liquefaction/LNG
|
11.9
|
|
11.8
|
|
||
Southern Reliability Link
|
19.3
|
|
86.9
|
|
||
Total
|
$
|
189.4
|
|
$
|
233.7
|
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||
|
March 31,
|
March 31,
|
||||||||||
(Thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||
Weather
(1)
|
$
|
(15,889
|
)
|
$
|
(11,793
|
)
|
$
|
(13,635
|
)
|
$
|
(11,712
|
)
|
Usage
|
(1,686
|
)
|
1,266
|
|
1,538
|
|
3,606
|
|
||||
Total
|
$
|
(17,575
|
)
|
$
|
(10,527
|
)
|
$
|
(12,097
|
)
|
$
|
(8,106
|
)
|
(1)
|
Compared with the CIP 20-year average, weather was
22.7 percent
and
17.5 percent
colder
-than-normal during the
three months ended
March 31, 2015
and
2014
, respectively, and
12.9 percent
and
11.5 percent
colder
-than-normal during the
six months ended
March 31, 2015
and
2014
, respectively.
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||
|
March 31,
|
March 31,
|
||||||||||
(Thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||
Utility gross margin
|
|
|
|
|
||||||||
Operating revenues
|
$
|
374,703
|
|
$
|
394,528
|
|
$
|
583,430
|
|
$
|
627,997
|
|
Less:
|
|
|
|
|
||||||||
Gas purchases
(1)
|
189,562
|
|
218,065
|
|
278,130
|
|
333,609
|
|
||||
Energy and other taxes
|
21,925
|
|
22,297
|
|
33,453
|
|
36,926
|
|
||||
Regulatory rider expense
|
42,692
|
|
38,211
|
|
64,155
|
|
58,043
|
|
||||
Total utility gross margin
|
120,524
|
|
115,955
|
|
207,692
|
|
199,419
|
|
||||
Operation and maintenance expenses
|
32,638
|
|
30,699
|
|
62,618
|
|
57,951
|
|
||||
Depreciation and amortization
|
10,647
|
|
9,972
|
|
21,192
|
|
19,807
|
|
||||
Other taxes not reflected in utility gross margin
|
1,290
|
|
1,232
|
|
2,369
|
|
2,306
|
|
||||
Operating income
|
75,949
|
|
74,052
|
|
121,513
|
|
119,355
|
|
||||
Other income
|
811
|
|
604
|
|
2,208
|
|
1,107
|
|
||||
Interest expense, net of capitalized interest
|
4,388
|
|
3,888
|
|
8,997
|
|
7,872
|
|
||||
Income tax provision
|
23,778
|
|
23,725
|
|
37,944
|
|
37,908
|
|
||||
Net income
|
$
|
48,594
|
|
$
|
47,043
|
|
$
|
76,780
|
|
$
|
74,682
|
|
(1)
|
Includes related party transactions of approximately
$1.6 million
and
$1.5 million
for the
three months ended
March 31, 2015
and
2014
, respectively, and
$3.2 million
and
$4.8 million
for the
six months ended
March 31, 2015
and
2014
, respectively.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||
|
March 31,
|
|
March 31,
|
||||||||||
|
2015 v. 2014
|
|
2015 v. 2014
|
||||||||||
(Millions)
|
Operating
revenues
|
Gas
purchases
|
|
Operating
revenues
|
Gas
purchases
|
||||||||
Firm sales
|
$
|
39.8
|
|
$
|
24.2
|
|
|
$
|
36.4
|
|
$
|
23.6
|
|
Average BGSS rates
(1)
|
(27.6
|
)
|
(25.9
|
)
|
|
(41.2
|
)
|
(38.5
|
)
|
||||
Off-system sales
|
(25.8
|
)
|
(24.9
|
)
|
|
(37.8
|
)
|
(36.9
|
)
|
||||
CIP adjustments
|
(7.0
|
)
|
—
|
|
|
(4.0
|
)
|
—
|
|
||||
Other
|
0.8
|
|
(1.9
|
)
|
|
2.0
|
|
(3.7
|
)
|
||||
Total (decrease)
|
$
|
(19.8
|
)
|
$
|
(28.5
|
)
|
|
$
|
(44.6
|
)
|
$
|
(55.5
|
)
|
(1)
|
Operating revenues include changes in sales tax of
$(1.7) million
during the
three months ended
March 31, 2015
, compared with the
three months ended
March 31, 2014
, and
$(2.7) million
during the
six months ended
March 31, 2015
, compared with the
six months ended
March 31, 2014
.
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||||
|
March 31,
|
March 31,
|
||||||||||||||||||||
|
2015
|
|
2014
|
2015
|
|
2014
|
||||||||||||||||
($ in thousands)
|
Margin
|
Bcf
|
|
Margin
|
Bcf
|
Margin
|
Bcf
|
|
Margin
|
Bcf
|
||||||||||||
Utility gross margin/throughput
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
$
|
76,909
|
|
25.4
|
|
|
$
|
73,038
|
|
22.5
|
|
$
|
129,753
|
|
37.8
|
|
|
$
|
123,598
|
|
35.0
|
|
Commercial, industrial and other
|
18,966
|
|
5.6
|
|
|
17,428
|
|
4.2
|
|
32,726
|
|
7.9
|
|
|
30,428
|
|
6.6
|
|
||||
Firm transportation
|
20,780
|
|
16.2
|
|
|
23,352
|
|
8.6
|
|
37,034
|
|
22.0
|
|
|
40,673
|
|
13.6
|
|
||||
Total utility firm gross margin/throughput
|
116,655
|
|
47.2
|
|
|
113,818
|
|
35.3
|
|
199,513
|
|
67.7
|
|
|
194,699
|
|
55.2
|
|
||||
BGSS incentive programs
|
3,093
|
|
56.2
|
|
|
2,043
|
|
34.4
|
|
7,270
|
|
109.1
|
|
|
4,499
|
|
70.2
|
|
||||
Interruptible
|
776
|
|
1.5
|
|
|
94
|
|
1.7
|
|
909
|
|
4.4
|
|
|
221
|
|
3.3
|
|
||||
Total utility gross margin/throughput
|
$
|
120,524
|
|
104.9
|
|
|
$
|
115,955
|
|
71.4
|
|
$
|
207,692
|
|
181.2
|
|
|
$
|
199,419
|
|
128.7
|
|
|
Three Months Ended
|
Six Months Ended
|
||||||||
|
March 31,
|
March 31,
|
||||||||
(Thousands)
|
2015 v. 2014
|
2015 v. 2014
|
||||||||
Customer impact
|
|
$
|
2,516
|
|
|
|
$
|
4,138
|
|
|
SAVEGREEN
|
|
321
|
|
|
|
676
|
|
|
||
Total increase
|
|
$
|
2,837
|
|
|
|
$
|
4,814
|
|
|
|
March 31,
2015 |
March 31,
2014 |
||
Firm customers
|
|
|
||
Residential
|
432,118
|
|
411,993
|
|
Commercial, industrial & other
|
27,566
|
|
25,977
|
|
Residential transport
|
42,355
|
|
54,684
|
|
Commercial transport
|
9,959
|
|
10,941
|
|
Total firm customers
|
511,998
|
|
503,595
|
|
Other
|
68
|
|
84
|
|
Total customers
|
512,066
|
|
503,679
|
|
|
Three Months Ended
|
Six Months Ended
|
||||||||
|
March 31,
|
March 31,
|
||||||||
(Thousands)
|
2015 v. 2014
|
2015 v. 2014
|
||||||||
Capacity release
|
|
$
|
1,452
|
|
|
|
$
|
2,722
|
|
|
Storage
|
|
158
|
|
|
|
493
|
|
|
||
FRM
|
|
253
|
|
|
|
452
|
|
|
||
Off-system sales
|
|
(813
|
)
|
|
|
(896
|
)
|
|
||
Total increase
|
|
$
|
1,050
|
|
|
|
$
|
2,771
|
|
|
|
Three Months Ended
|
Six Months Ended
|
||||||||
|
March 31,
|
March 31,
|
||||||||
(Thousands)
|
2015 v. 2014
|
2015 v. 2014
|
||||||||
Maintenance and repairs
|
|
$
|
802
|
|
|
|
$
|
1,222
|
|
|
Compensation and benefits
|
|
152
|
|
|
|
1,221
|
|
|
||
Shared corporate costs
|
|
204
|
|
|
|
563
|
|
|
||
Bad debt
|
|
(63
|
)
|
|
|
471
|
|
|
||
Consulting
|
|
172
|
|
|
|
415
|
|
|
||
Other
|
|
672
|
|
|
|
775
|
|
|
||
Total increase
|
|
$
|
1,939
|
|
|
|
$
|
4,667
|
|
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||
|
March 31,
|
March 31,
|
||||||||||
(Thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||
Operating revenues
|
$
|
682,204
|
|
$
|
1,241,584
|
|
$
|
1,285,892
|
|
$
|
1,879,293
|
|
Gas purchases (including demand charges
(1)
)
|
664,495
|
|
1,048,158
|
|
1,139,442
|
|
1,711,945
|
|
||||
Gross margin
|
17,709
|
|
193,426
|
|
146,450
|
|
167,348
|
|
||||
Operation and maintenance expenses
|
6,343
|
|
17,374
|
|
9,331
|
|
20,959
|
|
||||
Depreciation and amortization
|
23
|
|
13
|
|
45
|
|
25
|
|
||||
Other taxes
|
403
|
|
397
|
|
857
|
|
765
|
|
||||
Operating income
|
10,940
|
|
175,642
|
|
136,217
|
|
145,599
|
|
||||
Other income
|
14
|
|
—
|
|
14
|
|
—
|
|
||||
Interest expense, net
|
288
|
|
661
|
|
801
|
|
1,277
|
|
||||
Income tax provision
|
3,923
|
|
64,345
|
|
49,800
|
|
53,072
|
|
||||
Net income
|
$
|
6,743
|
|
$
|
110,636
|
|
$
|
85,630
|
|
$
|
91,250
|
|
(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.
|
•
|
37.9
Bcf of net short futures contracts, inclusive of multiple market locations
|
•
|
1.2
Bcf of net long option positions
|
•
|
20.9
Bcf of net short futures contracts, inclusive of multiple market locations
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||
|
March 31,
|
March 31,
|
||||||||||
(Thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||
Operating revenues
|
$
|
682,204
|
|
$
|
1,241,584
|
|
$
|
1,285,892
|
|
$
|
1,879,293
|
|
Less: Gas purchases
|
664,495
|
|
1,048,158
|
|
1,139,442
|
|
1,711,945
|
|
||||
Add:
|
|
|
|
|
||||||||
Unrealized loss (gain) on derivative instruments and related transactions
(1)
|
70,219
|
|
(11,743
|
)
|
(19,781
|
)
|
53,458
|
|
||||
Effects of economic hedging related to natural gas inventory
|
(23,450
|
)
|
(18,668
|
)
|
(32,215
|
)
|
(41,548
|
)
|
||||
Financial margin
|
$
|
64,478
|
|
$
|
163,015
|
|
$
|
94,454
|
|
$
|
179,258
|
|
(1)
|
Includes unrealized (gains) related to an intercompany transaction between NJNG and NJRES that are eliminated in consolidation of approximately
$(1.1) million
and
$(957,000)
for the
three months ended
March 31, 2015
and
2014
, respectively, and
$(263,000)
and
$(672,000)
for the
six months ended
March 31, 2015
and
2014
, respectively.
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||
|
March 31,
|
March 31,
|
||||||||||
(Thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||
Operating income
|
$
|
10,940
|
|
$
|
175,642
|
|
$
|
136,217
|
|
$
|
145,599
|
|
Add:
|
|
|
|
|
||||||||
Operation and maintenance expenses
|
6,343
|
|
17,374
|
|
9,331
|
|
20,959
|
|
||||
Depreciation and amortization
|
23
|
|
13
|
|
45
|
|
25
|
|
||||
Other taxes
|
403
|
|
397
|
|
857
|
|
765
|
|
||||
Subtotal - Gross margin
|
17,709
|
|
193,426
|
|
146,450
|
|
167,348
|
|
||||
Add:
|
|
|
|
|
||||||||
Unrealized loss (gain) on derivative instruments and related transactions
|
70,219
|
|
(11,743
|
)
|
(19,781
|
)
|
53,458
|
|
||||
Effects of economic hedging related to natural gas inventory
|
(23,450
|
)
|
(18,668
|
)
|
(32,215
|
)
|
(41,548
|
)
|
||||
Financial margin
|
$
|
64,478
|
|
$
|
163,015
|
|
$
|
94,454
|
|
$
|
179,258
|
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||
|
March 31,
|
March 31,
|
||||||||||
(Thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||
Net income
|
$
|
6,743
|
|
$
|
110,636
|
|
$
|
85,630
|
|
$
|
91,250
|
|
Add:
|
|
|
|
|
||||||||
Unrealized loss (gain) on derivative instruments and related transactions
|
70,219
|
|
(11,743
|
)
|
(19,781
|
)
|
53,458
|
|
||||
Effects of economic hedging related to natural gas inventory
|
(23,450
|
)
|
(18,668
|
)
|
(32,215
|
)
|
(41,548
|
)
|
||||
Tax adjustments
|
(17,196
|
)
|
11,182
|
|
19,118
|
|
(4,379
|
)
|
||||
Net financial earnings
|
$
|
36,316
|
|
$
|
91,407
|
|
$
|
52,752
|
|
$
|
98,781
|
|
|
Three Months Ended
|
|||||||||||||||
|
March 31,
|
|||||||||||||||
($ in Thousands)
|
2015
|
2014
|
||||||||||||||
Placed in service
|
Projects
|
MW
|
Costs
(1)
|
Projects
|
MW
|
Costs
(1)
|
||||||||||
Grid-connected
|
1
|
|
6.3
|
|
$
|
15,785
|
|
|
—
|
|
—
|
|
$
|
3
|
|
|
Net-metered:
|
|
|
|
|
|
|
|
|
||||||||
Commercial
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
5
|
|
|
||
Residential
|
127
|
|
1.2
|
|
3,589
|
|
|
292
|
|
3.5
|
|
7,994
|
|
|
||
Total placed in service
|
128
|
|
7.5
|
|
$
|
19,374
|
|
|
292
|
|
3.5
|
|
$
|
8,002
|
|
|
(1)
|
Represents the portion of capital expenditures eligible for ITCs.
|
|
Six Months Ended
|
|||||||||||||||
|
March 31,
|
|||||||||||||||
($ in Thousands)
|
2015
|
2014
|
||||||||||||||
Placed in service
|
Projects
|
MW
|
Costs
(1)
|
Projects
|
MW
|
Costs
(1)
|
||||||||||
Grid-connected
|
2
|
|
16.2
|
|
$
|
41,627
|
|
|
1
|
|
1.4
|
|
$
|
4,749
|
|
|
Net-metered:
|
|
|
|
|
|
|
|
|
||||||||
Commercial
|
—
|
|
—
|
|
—
|
|
|
1
|
|
0.3
|
|
993
|
|
|
||
Residential
|
272
|
|
2.6
|
|
7,634
|
|
|
467
|
|
5.1
|
|
13,855
|
|
|
||
Total placed in service
|
274
|
|
18.8
|
|
$
|
49,261
|
|
|
469
|
|
6.8
|
|
$
|
19,597
|
|
|
(1)
|
Represents the portion of capital expenditures eligible for ITCs.
|
|
Six Months Ended
|
|||
|
March 31,
|
|||
|
2015
|
2014
|
||
Beginning balance as of October 1,
|
29,970
|
|
11,351
|
|
SRECs generated
|
39,994
|
|
26,155
|
|
SRECs sold
|
34,728
|
|
20,678
|
|
Ending balance as of March 31,
|
35,236
|
|
16,828
|
|
•
|
a
$20.3 million
,
9.7
MW project in Two Dot, Montana that was completed in June 2014;
|
•
|
a
$42 million
,
20
MW project in Carroll County, Iowa that was completed in January 2015; and
|
•
|
an
$85 million
,
48.3
MW project in Rush County, Kansas that is currently under construction and expected to be completed in the first quarter of fiscal 2016.
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||
|
March 31,
|
March 31,
|
||||||||||
(Thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||
Operating revenues
|
$
|
4,068
|
|
$
|
2,679
|
|
$
|
10,303
|
|
$
|
4,852
|
|
Operation and maintenance expenses
|
3,818
|
|
2,434
|
|
6,951
|
|
4,531
|
|
||||
Depreciation and amortization
|
4,297
|
|
2,635
|
|
7,888
|
|
5,146
|
|
||||
Other taxes
|
118
|
|
77
|
|
332
|
|
148
|
|
||||
Operating (loss)
|
(4,165
|
)
|
(2,467
|
)
|
(4,868
|
)
|
(4,973
|
)
|
||||
Other income (expense), net
|
24
|
|
—
|
|
(1,570
|
)
|
140
|
|
||||
Interest expense, net
|
1,661
|
|
1,249
|
|
3,478
|
|
2,435
|
|
||||
Income tax (benefit)
|
(9,042
|
)
|
(17,388
|
)
|
(28,763
|
)
|
(19,432
|
)
|
||||
Net income
|
$
|
3,240
|
|
$
|
13,672
|
|
$
|
18,847
|
|
$
|
12,164
|
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||
|
March 31,
|
March 31,
|
||||||||||
(Thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||
SREC sales
|
$
|
1,618
|
|
$
|
1,664
|
|
$
|
6,006
|
|
$
|
3,098
|
|
Electricity sales and other
|
1,601
|
|
449
|
|
2,572
|
|
701
|
|
||||
Sunlight Advantage
|
849
|
|
566
|
|
1,725
|
|
1,053
|
|
||||
Total operating revenues
|
$
|
4,068
|
|
$
|
2,679
|
|
$
|
10,303
|
|
$
|
4,852
|
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||
|
March 31,
|
March 31,
|
||||||||||
(Thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||
Net income
|
$
|
3,240
|
|
$
|
13,672
|
|
$
|
18,847
|
|
$
|
12,164
|
|
Add:
|
|
|
|
|
||||||||
Tax adjustments
|
9,770
|
|
(865
|
)
|
3,171
|
|
4,257
|
|
||||
Net financial earnings
|
$
|
13,010
|
|
$
|
12,807
|
|
$
|
22,018
|
|
$
|
16,421
|
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||
|
March 31,
|
March 31,
|
||||||||||
(Thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||
Equity in earnings of affiliates
|
$
|
4,581
|
|
$
|
4,141
|
|
$
|
8,356
|
|
$
|
7,083
|
|
Operation and maintenance expenses
|
$
|
186
|
|
$
|
168
|
|
$
|
333
|
|
$
|
514
|
|
Interest expense, net
|
$
|
(32
|
)
|
$
|
107
|
|
$
|
(21
|
)
|
$
|
237
|
|
Income tax provision
|
$
|
1,818
|
|
$
|
1,573
|
|
$
|
3,311
|
|
$
|
2,569
|
|
Net income
|
$
|
2,604
|
|
$
|
2,254
|
|
$
|
4,724
|
|
$
|
3,688
|
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||
|
March 31,
|
March 31,
|
||||||||||
(Thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||
Steckman Ridge
|
$
|
2,764
|
|
$
|
2,231
|
|
$
|
5,493
|
|
$
|
4,236
|
|
Iroquois
|
1,817
|
|
1,910
|
|
2,863
|
|
2,847
|
|
||||
Total equity in earnings
|
$
|
4,581
|
|
$
|
4,141
|
|
$
|
8,356
|
|
$
|
7,083
|
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||
|
March 31,
|
March 31,
|
||||||||||
(Thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||
Operating revenues
|
$
|
8,587
|
|
$
|
8,824
|
|
$
|
17,598
|
|
$
|
18,098
|
|
Operation and maintenance expenses
|
$
|
10,140
|
|
$
|
10,875
|
|
$
|
18,995
|
|
$
|
19,820
|
|
Energy and other taxes
|
$
|
893
|
|
$
|
424
|
|
$
|
1,936
|
|
$
|
1,310
|
|
Income tax (benefit)
|
$
|
(972
|
)
|
$
|
(1,129
|
)
|
$
|
(1,424
|
)
|
$
|
(1,320
|
)
|
Net (loss)
|
$
|
(1,359
|
)
|
$
|
(1,576
|
)
|
$
|
(1,951
|
)
|
$
|
(1,777
|
)
|
|
March 31,
2015 |
September 30,
2014 |
||
Common stock equity
|
57
|
%
|
51
|
%
|
Long-term debt
|
34
|
|
31
|
|
Short-term debt
|
9
|
|
18
|
|
Total
|
100
|
%
|
100
|
%
|
|
Three Months Ended
|
Six Months Ended
|
|||||
(Thousands)
|
March 31, 2015
|
||||||
NJR
|
|
|
|
||||
Notes Payable to banks:
|
|
|
|
||||
Balance at end of period
|
$
|
—
|
|
|
$
|
—
|
|
Weighted average interest rate at end of period
|
—
|
%
|
|
—
|
%
|
||
Average balance for the period
|
$
|
55,308
|
|
|
$
|
100,476
|
|
Weighted average interest rate for average balance
|
1.08
|
%
|
|
1.08
|
%
|
||
Month end maximum for the period
|
$
|
60,000
|
|
|
$
|
184,700
|
|
NJNG
|
|
|
|
||||
Commercial Paper and Notes Payable to banks:
|
|
|
|
||||
Balance at end of period
|
$
|
146,000
|
|
|
$
|
146,000
|
|
Weighted average interest rate at end of period
|
0.18
|
%
|
|
0.18
|
%
|
||
Average balance for the period
|
$
|
160,186
|
|
|
$
|
169,435
|
|
Weighted average interest rate for average balance
|
0.18
|
%
|
|
0.16
|
%
|
||
Month end maximum for the period
|
$
|
181,000
|
|
|
$
|
190,000
|
|
|
Balance
|
Increase
|
Less
|
Balance
|
||||||||||||
(Thousands)
|
September 30, 2014
|
(Decrease) in Fair
Market Value
|
Amounts
Settled
|
March 31, 2015
|
||||||||||||
NJNG
|
|
$
|
377
|
|
|
$
|
(25,137
|
)
|
|
$
|
(22
|
)
|
|
$
|
(24,738
|
)
|
NJRES
|
|
(1,414
|
)
|
|
94,061
|
|
|
90,516
|
|
|
2,131
|
|
||||
Total
|
|
$
|
(1,037
|
)
|
|
$
|
68,924
|
|
|
$
|
90,494
|
|
|
$
|
(22,607
|
)
|
(Thousands)
|
2015
|
2016
|
2016 - 2018
|
After 2019
|
Total
Fair Value
|
|||||||||||||
Price based on NYMEX/CME
|
$
|
(26,106
|
)
|
$
|
1,300
|
|
|
$
|
569
|
|
|
$
|
—
|
|
|
$
|
(24,237
|
)
|
Price based on ICE
|
295
|
|
1,337
|
|
|
(2
|
)
|
|
—
|
|
|
1,630
|
|
|||||
Total
|
$
|
(25,811
|
)
|
$
|
2,637
|
|
|
$
|
567
|
|
|
$
|
—
|
|
|
$
|
(22,607
|
)
|
|
|
Volume Bcf
|
Price per MMBtu
(1)
|
Amounts included in Derivatives (Thousands)
|
||||
NJNG
|
Futures
|
27.2
|
|
$1.39 - $4.07
|
|
$
|
(24,738
|
)
|
NJRES
|
Futures
|
(37.9
|
)
|
$1.29 - $4.63
|
|
1,608
|
|
|
|
Options
|
1.2
|
|
$0.24 - $0.24
|
|
523
|
|
|
Total
|
|
|
|
|
$
|
(22,607
|
)
|
(1)
|
Million British thermal unit
|
|
Balance
|
Increase
|
Less
|
Balance
|
||||||||||
(Thousands)
|
September 30, 2014
|
(Decrease) in Fair
Market Value
|
Amounts
Settled
|
March 31, 2015
|
||||||||||
NJRES - Prices based on other external data
|
|
$
|
(15,484
|
)
|
|
(2,996
|
)
|
|
(18,035
|
)
|
|
$
|
(445
|
)
|
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
|
$
|
—
|
|
$
|
(1,935
|
)
|
$
|
(3,870
|
)
|
$
|
(5,806
|
)
|
$
|
(7,741
|
)
|
Ending derivative fair value
|
$
|
3,820
|
|
$
|
1,885
|
|
$
|
(50
|
)
|
$
|
(1,986
|
)
|
$
|
(3,921
|
)
|
|
|
|
|
|
|
||||||||||
Percent decrease in NYMEX natural gas futures prices
|
0%
|
(5)%
|
(10)%
|
(15)%
|
(20)%
|
||||||||||
Estimated change in derivative fair value
|
$
|
—
|
|
$
|
1,935
|
|
$
|
3,870
|
|
$
|
5,806
|
|
$
|
7,741
|
|
Ending derivative fair value
|
$
|
3,820
|
|
$
|
5,755
|
|
$
|
7,690
|
|
$
|
9,626
|
|
$
|
11,561
|
|
(Thousands)
|
Gross Credit Exposure
|
Net Credit Exposure
|
||||||
Investment grade
|
|
$
|
136,768
|
|
|
$
|
110,004
|
|
Noninvestment grade
|
|
17,473
|
|
|
1,601
|
|
||
Internally rated investment grade
|
|
26,310
|
|
|
10,345
|
|
||
Internally rated noninvestment grade
|
|
8,107
|
|
|
135
|
|
||
Total
|
|
$
|
188,658
|
|
|
$
|
122,085
|
|
(Thousands)
|
Gross Credit Exposure
|
Net Credit Exposure
|
||||||
Investment grade
|
|
$
|
7,768
|
|
|
$
|
6,462
|
|
Noninvestment grade
|
|
6,261
|
|
|
608
|
|
||
Internally rated investment grade
|
|
94
|
|
|
15
|
|
||
Internally rated noninvestment grade
|
|
6,706
|
|
|
88
|
|
||
Total
|
|
$
|
20,829
|
|
|
$
|
7,173
|
|
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
(1)
|
||||||
1/01/15 - 1/31/15
|
—
|
|
$
|
—
|
|
—
|
|
|
2,902,454
|
|
2/01/15 - 2/28/15
|
—
|
|
$
|
—
|
|
—
|
|
|
2,902,454
|
|
3/01/15 - 3/31/15
|
—
|
|
$
|
—
|
|
—
|
|
|
2,902,454
|
|
Total
|
—
|
|
$
|
—
|
|
—
|
|
|
2,902,454
|
|
Exhibit
Number
|
Exhibit Description
|
4.2+
|
First Supplemental Indenture dated as of April 1, 2015 between NJNG and U.S. Bank National Association, as Trustee*
|
|
|
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:
|
May 7, 2015
|
|
|
|
By:/s/ Glenn C. Lockwood
|
|
|
Glenn C. Lockwood
|
|
|
Executive Vice President and
|
|
|
Chief Financial 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:
|
May 7, 2015
|
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:
|
May 7, 2015
|
By:
|
/s/ Glenn C. Lockwood
|
|
|
|
Glenn C. Lockwood
|
|
|
|
Executive Vice President and Chief Financial Officer
|
(a)
|
I am the Chief Executive Officer of New Jersey Resources Corporation;
|
(b)
|
To the best of my knowledge, this quarterly report on Form 10-Q for the period ended
March 31, 2015
, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(c)
|
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.
|
Date:
|
May 7, 2015
|
By:
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/s/ Laurence M. Downes
|
|
|
|
Laurence M. Downes
|
|
|
|
Chairman, President and Chief Executive Officer
|
(a)
|
I am the Chief
Financial
Officer of New Jersey Resources Corporation;
|
(b)
|
To the best of my knowledge, this quarterly report on Form 10-Q for the period ended
March 31, 2015
, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(c)
|
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.
|
Date:
|
May 7, 2015
|
By:
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/s/ Glenn C. Lockwood
|
|
|
|
Glenn C. Lockwood
|
|
|
|
Executive Vice President and Chief Financial Officer
|