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

Business overview and strategy

• Operates as a $4.5 billion energy infrastructure and services company with a focus 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.

• Diversified portfolio leverages expertise in regulated utilities and renewables, with solar as a key growth driver.

• Emphasizes stable earnings, decarbonization, and reliable service through strategic asset management.

Regulatory environment and rate cases

• Operates in a stable regulatory environment in New Jersey, with consistent rate case outcomes and strong relationships with regulators.

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

• Regulatory alignment allows for near real-time returns on energy efficiency investments.

• Decoupled pricing model and hedging strategies protect against commodity price volatility.

• Recent privatization of a peer utility has not impacted regulatory outcomes or rate case processes.

Growth drivers and capital allocation

• Growth rate of 7%-9% exceeds industry average, driven by diversified operations and capital investments beyond customer growth.

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

• Solar business has 0.5GW in service and aims to double or triple capacity, expanding beyond New Jersey.

• Solar projects are evaluated for high single-digit unlevered returns, with revenue from subsidies, PPAs, and power pricing upside.

• Energy efficiency programs and infrastructure upgrades provide immediate regulatory returns and support growth.