New Jersey Resources Increases Earnings Guidance; Reports Fiscal 2009 Second Quarter Earnings; NJNG Earnings Increase 22 Percent

Business Wire, April 29, 2009

WALL, N.J. -- New Jersey Resources (NYSE:NJR) today reported earnings for the second quarter of fiscal 2009 and, for the second time this fiscal year, increased its net financial earnings guidance. NJR is raising its net financial earnings guidance to a range of $2.35 to $2.45 per basic share compared with its most recent guidance of $2.32 to $2.42 per basic share.

A reconciliation of NJR’s net income to net financial earnings for the three and six months ended March 31 in fiscal years 2009 and 2008 is provided below:

[Table Omitted]

Net financial earnings is a financial measure not calculated in accordance with generally accepted accounting principles (GAAP) of the United States as it excludes all unrealized, and certain realized, gains and losses associated with derivative instruments. For further discussion of this financial measure, as well as a reconciliation to the most comparable GAAP measure, please see the explanation below under “Additional Non-GAAP Financial Information.”

• Second Increase to Fiscal 2009 Net Financial Earnings Guidance

Subject to the factors discussed at the end of this release under “Forward-Looking Statements,” NJR is increasing its fiscal 2009 net financial earnings guidance to a range of $2.35 to $2.45 per basic share from a range of $2.32 to $2.42 per basic share. The increase is due primarily to positive results at New Jersey Natural Gas (NJNG), which are being driven by the impact of its base rate case, higher gross margin from its incentive programs and lower short-term interest rates.

“Just as we have in previous periods of economic downturn, our company continues to deliver results,” said Laurence M. Downes, chairman and CEO of NJR. “This is evidenced by the second increase to our fiscal 2009 net financial earnings guidance in as many quarters. With strong results from our core business driving earnings, we remain on track for another year of strong financial performance.”

• New Jersey Natural Gas Remains Primary Earnings Contributor in Fiscal 2009

Fiscal 2009 year-to-date earnings at NJNG increased 27.2 percent to $64.7 million, compared with $50.8 million for the first six months of fiscal 2008. For the three months ended March 31, 2009, earnings increased 21.7 percent to $41.6 million, compared with $34.2 million in the same period last year. Improved results in both periods of fiscal 2009 are due primarily to higher gross margin resulting from new base rates, approved in October 2008, as well as incentive programs approved by the New Jersey Board of Public Utilities (BPU).

New customer growth also remains steady in fiscal 2009 with NJNG adding 3,147 new customers during the first six months. Additionally, 366 existing customers converted to natural gas heat and other services. These new additions are expected to contribute approximately $1.9 million to utility gross margin annually.

The company forecasts NJNG’s earnings to account for 60 to 70 percent of total net financial earnings for the year.

• Accelerated Infrastructure Program Approved by BPU

The BPU recently approved one of the two filings proposed by NJNG in January 2009 to help stimulate the local economy and support job growth. The Accelerated Infrastructure Program will accelerate 14 previously planned capital improvement projects in NJNG’s service territory, helping to create or sustain between approximately 75 and 100 jobs. These projects will commence shortly and are expected to be completed by August 31, 2011. Estimated construction costs for these projects are approximately $70.8 million, with NJNG being able to recognize recovery of its weighted average cost of capital on a real-time basis.

• NJR Energy Services Results Remain on Target

NJR Energy Services (NJRES), NJR’s wholesale energy subsidiary, reported net financial earnings for the 6-month period ending March 31, 2009 of $40.5 million compared with $62.6 million in the same period last year. Net financial earnings for the second quarter of fiscal 2009 were $31.1 million compared with $43.5 million in the same period last year. These expected decreases were due primarily to narrower winter storage spreads and less contracted transportation capacity in the Northeast. The company continues to forecast NJRES’ net financial earnings to account for between 30 and 35 percent of NJR’s total net financial earnings for the year.

• Steckman Ridge Receives Authorization to Begin Injections

On April 1, 2009, Steckman Ridge received Federal Energy Regulatory Commission (FERC) authorization to place certain injection related facilities into commercial operation. Customers have begun to inject natural gas inventory in preparation for the initial withdrawal season. Construction activities will continue through the summer as more facilities are made ready to support the initial winter season.