New Jersey Resources Corp (NJR) Stock Analysis and Metrics

New Jersey Resources

NYSE: NJR

$58.10 ▲ +0.22 (+0.39%)

At close: Jul 10, 2026 · 2:48 PM UTC

Financial Ratios

Market Cap5.67 Bn

P/E16.99

P/S2.60

Div. Yield0.03

ROIC (Qtr)0.00

Total Debt (Qtr)3.43 Bn

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About

New Jersey Resources Corporation is a New Jersey corporation and a diversified energy services holding company whose principal business is the distribution of natural gas through a regulated utility, investing in and operating clean energy projects and natural gas storage and transportation assets, and providing other retail and wholesale energy services to customers.

The company generates revenue from regulated natural gas sales to residential and commercial customers, from the sale of electricity and renewable energy credits from its solar projects, from fees and spreads earned on wholesale natural gas trading and asset management services, and from tariff based revenues for storage and transportation capacity it owns or controls.

The company operates through the following segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services, and Storage and Transportation.

• Natural Gas Distribution: This segment provides regulated natural gas utility service to residential and commercial customers in Burlington, Middlesex, Monmouth, Morris, Ocean and Sussex counties, includes off system sales and capacity release activities, and is regulated by the New Jersey Board of Public Utilities.

• Clean Energy Ventures: This segment owns and operates solar projects with about 479 megawatts of capacity in several states, sells electricity and solar renewable energy credits to load serving entities, and previously managed a residential solar portfolio that was sold in November 2024.

• Energy Services: This segment conducts unregulated wholesale and retail natural gas operations, manages transportation and storage contracts, offers asset management and hedging services to utilities, power generators and industrial customers, and earns margins from geographic price differences.

• Storage and Transportation: This segment invests in FERC regulated natural gas storage and transportation assets, including the Leaf River salt dome facility in Mississippi, the Adelphia pipeline in Pennsylvania, and a 50 percent interest in the Steckman Ridge storage site in Pennsylvania.

Within its regulated utility territory New Jersey Resources Corporation holds a dominant position as the sole natural gas distributor, while its competitive businesses face rivals such as other wholesale marketing firms, utilities and alternative fuel providers, and it benefits from rate stabilization mechanisms and a diversified portfolio that reduces reliance on any single market.

The company serves residential and commercial gas customers across New Jersey, wholesale natural gas users including utilities, electric generators and industrial firms throughout North America, and provides storage and transportation services to pipelines, power marketers and other energy companies.

Investment Thesis

▲ Bull case

New Jersey Resources demonstrated strong operational performance during an extreme winter period showing the reliability of its regulated gas utility and the ability to capture value from hedging strategies The company secured over 87% of its winter gas supply at an average hedge price of roughly 3.27 per dekatherm which contrasted sharply with spot prices that exceeded 135 per dekatherm This hedging discipline translated into meaningful customer savings under the state approved basic gas supply service incentive program generating over 93 million in gross savings for the season The ability to lock in low cost supply while passing savings to customers supports stable margins and enhances customer loyalty which is a foundation for continued regulated earnings growth Additionally the utility's proactive approach to gas cost management reduces exposure to volatile commodity prices and provides a predictable cost structure for residential and commercial users further strengthening the competitive position of natural gas relative to alternative heating fuels
The Storage and Transportation segment is positioned for accelerated earnings growth driven by firm recontracting activity at the Philadelphia and Leaf River facilities These agreements are long term fee based contracts with high quality counterparties providing predictable cash flows Management expects net financial earnings from this segment to more than double over the next two years and is on track to meet or exceed that target Additionally Leaf River has secured FERC environmental approval for a working gas capacity expansion of more than 70% with a long term contract already in place to support the initial phase This expansion will add incremental fee based revenue without requiring new equity financing as the project is funded within the existing capital plan Furthermore the continued success of these fee based contracts underpins the segment's ability to generate steady cash flow that can be reinvested into other growth initiatives or returned to shareholders through dividends and share repurchases
Clean Energy Ventures continues to scale its solar portfolio having surpassed 500 megawatts of in service capacity and with a pipeline of over 1.2 gigawatts of potential projects The segment benefits from strong demand for incremental electric capacity in New Jersey and PJM where solar offers the quickest route to add new supply to the grid Management highlighted the opportunity to leverage existing solar sites and PJM interconnections to add technologies such as linear generators fuel cells and batteries which can extend investment tax credit benefits into the 2030s The company expects to increase installed capacity by an additional 50% through the end of fiscal 2027 supported by a diversified pipeline and disciplined capital deployment that targets high single to low double digit unlevered after tax returns Moreover the emphasis on safe harbor investment options and the preservation of tax credits provides a buffer against policy changes and allows CEV to selectively pursue projects with the most attractive risk adjusted returns while maintaining a strong pipeline of opportunities for future expansion
The balance sheet remains strong with adjusted debt to capital projected to stay around 20% for the next five years Ample liquidity and a well laddered debt maturity profile reduce near term refinancing risk and preserve financial flexibility Strong cash flow from the Energy Services business provides internal funding for capital investments reducing the need for external equity issuance This financial flexibility allows the company to continue executing its five year capital outlook of 4.8 billion to 5.2 billion through fiscal 2030 while maintaining credit metrics within long term targets In addition the disciplined approach to capital allocation ensures that investments are prioritized based on strategic fit and expected returns which supports sustainable growth and protects the company's credit ratings over the medium to long term

New Jersey Resources demonstrated strong operational performance during an extreme winter period showing the reliability of its regulated gas utility and the ability to capture value from hedging strategies The company secured over 87% of its winter gas supply at an average hedge price of roughly 3.27 per dekatherm which contrasted sharply with spot prices that exceeded 135 per dekatherm This hedging discipline translated into meaningful customer savings under the state approved basic gas supply service incentive program generating over 93 million in gross savings for the season The ability to lock in low cost supply while passing savings to customers supports stable margins and enhances customer loyalty which is a foundation for continued regulated earnings growth Additionally the utility's proactive approach to gas cost management reduces exposure to volatile commodity prices and provides a predictable cost structure for residential and commercial users further strengthening the competitive position of natural gas relative to alternative heating fuels
The Storage and Transportation segment is positioned for accelerated earnings growth driven by firm recontracting activity at the Philadelphia and Leaf River facilities These agreements are long term fee based contracts with high quality counterparties providing predictable cash flows Management expects net financial earnings from this segment to more than double over the next two years and is on track to meet or exceed that target Additionally Leaf River has secured FERC environmental approval for a working gas capacity expansion of more than 70% with a long term contract already in place to support the initial phase This expansion will add incremental fee based revenue without requiring new equity financing as the project is funded within the existing capital plan Furthermore the continued success of these fee based contracts underpins the segment's ability to generate steady cash flow that can be reinvested into other growth initiatives or returned to shareholders through dividends and share repurchases
Clean Energy Ventures continues to scale its solar portfolio having surpassed 500 megawatts of in service capacity and with a pipeline of over 1.2 gigawatts of potential projects The segment benefits from strong demand for incremental electric capacity in New Jersey and PJM where solar offers the quickest route to add new supply to the grid Management highlighted the opportunity to leverage existing solar sites and PJM interconnections to add technologies such as linear generators fuel cells and batteries which can extend investment tax credit benefits into the 2030s The company expects to increase installed capacity by an additional 50% through the end of fiscal 2027 supported by a diversified pipeline and disciplined capital deployment that targets high single to low double digit unlevered after tax returns Moreover the emphasis on safe harbor investment options and the preservation of tax credits provides a buffer against policy changes and allows CEV to selectively pursue projects with the most attractive risk adjusted returns while maintaining a strong pipeline of opportunities for future expansion
The balance sheet remains strong with adjusted debt to capital projected to stay around 20% for the next five years Ample liquidity and a well laddered debt maturity profile reduce near term refinancing risk and preserve financial flexibility Strong cash flow from the Energy Services business provides internal funding for capital investments reducing the need for external equity issuance This financial flexibility allows the company to continue executing its five year capital outlook of 4.8 billion to 5.2 billion through fiscal 2030 while maintaining credit metrics within long term targets In addition the disciplined approach to capital allocation ensures that investments are prioritized based on strategic fit and expected returns which supports sustainable growth and protects the company's credit ratings over the medium to long term

▼ Bear case

The company's ability to generate substantial savings through gas supply hedging is contingent on continued access to low cost forward contracts and stable market conditions If future winter periods see higher forward prices or reduced liquidity in the hedging market the average hedge price could rise significantly eroding the margin benefit that has been highlighted in recent results This dependence on hedging introduces a commodity price risk that is not fully offset by the regulated rate structure and could affect earnings if the company cannot replicate the same level of cost advantage Moreover the effectiveness of hedging strategies is subject to counterparty credit risk and the availability of affordable financing for hedge positions which could become constrained during periods of market stress Finally any regulatory changes that alter the basic gas supply service incentive program could reduce the financial benefit derived from hedging activities and impact overall profitability
While Energy Services delivered strong cash flow this quarter much of the outperformance was driven by extreme weather conditions that increased demand for gas withdrawals and storage services A return to milder weather patterns could reduce the volume of transactions and the associated incremental cash flow making the recent guidance raises less sustainable over the long term The business model remains exposed to seasonal variability and any shift toward milder winters would directly impact the earnings contribution that management expects to grow Furthermore the Energy Services business faces competition from other market participants offering similar storage and trading services which could pressure margins and limit the ability to capture premium spreads Additionally evolving regulations around market transparency and trading practices may impose additional compliance costs that could diminish the net contribution of this segment
The Leaf River expansion project although backed by a long term contract still faces execution risks related to construction timelines regulatory approvals and potential cost overruns The company has indicated that no additional financing will be needed but any delay in receiving final FERC orders or unexpected increases in material or labor costs could pressure the capital plan and might require reallocation of funds from other segments or additional borrowing which could affect credit metrics Moreover construction delays could push back the anticipated in service date thereby postponing the realization of expected fee based revenues and affecting the timing of earnings growth Additionally environmental opposition or legal challenges could arise during the permitting process leading to further uncertainty and possible scope changes that increase project costs Finally the success of the expansion is tied to the performance of the underlying natural gas market and any prolonged period of low demand for storage services could reduce the utilization of the expanded capacity and impair the projected returns
Clean Energy Ventures growth strategy relies heavily on the availability of investment tax credits and the ability to monetize them through structures such as sale leasebacks or potential future tax credit transferability Changes to federal or state tax policy that reduce the value or availability of these credits could diminish the projected returns on new solar projects Additionally the solar market in New Jersey and PJM is becoming more competitive which could pressure pricing and make it harder to achieve the targeted high single to low double digit unlevered after tax range without increasing capital intensity Moreover the reliance on tax credit monetization structures introduces complexity and potential execution risk if the anticipated mechanisms such as sale leasebacks or transferability provisions are not available on favorable terms Furthermore rapid technological advancements in energy storage and grid management could alter the value proposition of standalone solar installations requiring CEV to adapt its investment focus to remain competitive in the evolving clean energy landscape
Regulatory approval for expanding the natural gas distribution footprint such as the recent inclusion of Chester Township may face increasing scrutiny as policymakers and stakeholders push for greater electrification and decarbonization of the heating sector Any slowdown or reversal in approved service territory expansions would limit the utility's ability to add new customers and could constrain the long term growth rate that is currently projected at 7 to 9% for net financial earnings Moreover the push for electrification may lead to incentives and subsidies that favor electric heat pumps over natural gas heating reducing the attractiveness of gas connections for new construction and renovations Additionally municipal climate action plans and state level decarbonization goals could result in stricter permitting requirements or additional fees for gas infrastructure projects further increasing the cost of expansion Finally shifting consumer preferences toward renewable energy sources and heightened awareness of methane emissions could erode the long term demand for natural gas services affecting the utility's growth prospects and the stability of its regulated earnings base

The company's ability to generate substantial savings through gas supply hedging is contingent on continued access to low cost forward contracts and stable market conditions If future winter periods see higher forward prices or reduced liquidity in the hedging market the average hedge price could rise significantly eroding the margin benefit that has been highlighted in recent results This dependence on hedging introduces a commodity price risk that is not fully offset by the regulated rate structure and could affect earnings if the company cannot replicate the same level of cost advantage Moreover the effectiveness of hedging strategies is subject to counterparty credit risk and the availability of affordable financing for hedge positions which could become constrained during periods of market stress Finally any regulatory changes that alter the basic gas supply service incentive program could reduce the financial benefit derived from hedging activities and impact overall profitability
While Energy Services delivered strong cash flow this quarter much of the outperformance was driven by extreme weather conditions that increased demand for gas withdrawals and storage services A return to milder weather patterns could reduce the volume of transactions and the associated incremental cash flow making the recent guidance raises less sustainable over the long term The business model remains exposed to seasonal variability and any shift toward milder winters would directly impact the earnings contribution that management expects to grow Furthermore the Energy Services business faces competition from other market participants offering similar storage and trading services which could pressure margins and limit the ability to capture premium spreads Additionally evolving regulations around market transparency and trading practices may impose additional compliance costs that could diminish the net contribution of this segment
The Leaf River expansion project although backed by a long term contract still faces execution risks related to construction timelines regulatory approvals and potential cost overruns The company has indicated that no additional financing will be needed but any delay in receiving final FERC orders or unexpected increases in material or labor costs could pressure the capital plan and might require reallocation of funds from other segments or additional borrowing which could affect credit metrics Moreover construction delays could push back the anticipated in service date thereby postponing the realization of expected fee based revenues and affecting the timing of earnings growth Additionally environmental opposition or legal challenges could arise during the permitting process leading to further uncertainty and possible scope changes that increase project costs Finally the success of the expansion is tied to the performance of the underlying natural gas market and any prolonged period of low demand for storage services could reduce the utilization of the expanded capacity and impair the projected returns
Clean Energy Ventures growth strategy relies heavily on the availability of investment tax credits and the ability to monetize them through structures such as sale leasebacks or potential future tax credit transferability Changes to federal or state tax policy that reduce the value or availability of these credits could diminish the projected returns on new solar projects Additionally the solar market in New Jersey and PJM is becoming more competitive which could pressure pricing and make it harder to achieve the targeted high single to low double digit unlevered after tax range without increasing capital intensity Moreover the reliance on tax credit monetization structures introduces complexity and potential execution risk if the anticipated mechanisms such as sale leasebacks or transferability provisions are not available on favorable terms Furthermore rapid technological advancements in energy storage and grid management could alter the value proposition of standalone solar installations requiring CEV to adapt its investment focus to remain competitive in the evolving clean energy landscape
Regulatory approval for expanding the natural gas distribution footprint such as the recent inclusion of Chester Township may face increasing scrutiny as policymakers and stakeholders push for greater electrification and decarbonization of the heating sector Any slowdown or reversal in approved service territory expansions would limit the utility's ability to add new customers and could constrain the long term growth rate that is currently projected at 7 to 9% for net financial earnings Moreover the push for electrification may lead to incentives and subsidies that favor electric heat pumps over natural gas heating reducing the attractiveness of gas connections for new construction and renovations Additionally municipal climate action plans and state level decarbonization goals could result in stricter permitting requirements or additional fees for gas infrastructure projects further increasing the cost of expansion Finally shifting consumer preferences toward renewable energy sources and heightened awareness of methane emissions could erode the long term demand for natural gas services affecting the utility's growth prospects and the stability of its regulated earnings base

Segments Breakdown of Revenue (2025)

Peer Comparison

Companies in the Utilities - Regulated Gas

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	ATO	Atmos Energy Corp	28.80 Bn	21.40	5.90	9.56 Bn
2	NI	Nisource Inc.	22.46 Bn	23.26	1.98	16.75 Bn
3	UGI	Ugi Corp /Pa/	7.39 Bn	11.52	1.00	6.79 Bn
4	NJR	New Jersey Resources Corp	5.67 Bn	16.99	2.60	3.43 Bn
5	BKH	Black Hills Corp /Sd/	5.61 Bn	17.02	2.46	4.24 Bn
6	OGS	ONE Gas, Inc.	4.80 Bn	17.54	2.06	2.38 Bn
7	MDU	Mdu Resources Group Inc	4.26 Bn	-6,651.06	2.36	2.60 Bn
8	CPK	Chesapeake Utilities Corp	2.94 Bn	19.78	2.79	0.20 Bn

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Investment Thesis

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer Comparison

Research Tools

Developers

About

Investment Thesis

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer Comparison

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