New Jersey Resources (NJR) 15th Annual Midwest IDEAS Investor Conference summary

Business overview and strategy

• Operates as a diversified energy infrastructure and services company with a $4.5 billion market cap, focusing on high growth and stable dividends.

• Core businesses include natural gas utility, solar enterprise, midstream storage and transportation, energy services, and home services.

• Utility operations serve about 600,000 customers in New Jersey, primarily residential, with steady 1.7%-2% annual customer growth.

• Solar business is the largest owner-operator in New Jersey, expanding out-of-state with a robust pipeline and high single-digit unlevered return targets.

• Storage and transportation assets are strategically located in capacity-constrained regions, providing stable contracted returns.

Financial performance and capital allocation

• Delivers 7%-9% annual earnings and dividend growth, outpacing typical utilities, driven by diversified operations and capital investments.

• Capital plan targets $1.2-$1.5 billion in investments over two years, funded through internal cash flow and staggered debt, with no plans for block equity issuance.

• Balance sheet is strong, with adjusted debt to FFO at 18%, well below downgrade thresholds, and stable credit ratings.

• Free cash flow from complementary businesses supports reinvestment and reduces need for external capital.

• Dividend has increased annually for 28 years, qualifying as a Dividend Aristocrat.

Regulatory and market environment

• Operates in a stable regulatory environment in New Jersey, with consistent rate case outcomes and alignment among regulators, customers, and investors.

• Rate cases occur regularly, with the current one expected to conclude by year-end and new rates effective next winter.

• Energy efficiency investments are incentivized, providing near real-time returns and supporting decarbonization.

• Regulatory status of competitors, such as South Jersey Industries going private, has not impacted rate case outcomes or regulatory relationships.