Investor Presentaiton
Other Reconciliation of Non-GAAP Measures
($ in ooos)
(Unaudited)
Three Months Ended
September 30,
Twelve Months Ended
September 30,
2022
2021
2022
2021
NJNG Utility Gross Margin
NJNG's utility gross margin is
defined as operating revenues less
natural gas purchases, sales tax,
and regulatory rider expenses.
This measure differs from gross
margin as presented on a GAAP
basis as it excludes certain
operations and maintenance
expense and depreciation and
amortization.
Energy Services Financial Margin
Financial margin removes the
timing differences associated with
certain derivative and hedging
transactions. Financial margin
differs from gross margin as
defined on a GAAP basis as it
excludes certain operations and
maintenance expense and
depreciation and amortization
expenses as well as the effects of
derivatives instruments on
earnings.
N
New Jersey
Resources
A reconciliation of gross margin, the closest GAAP financial measurement, to utility gross margin is as follows:
Operating revenues
Less:
Natural gas purchases
Operating and maintenance (1)
Regulatory rider expense
Depreciation and amortization
Gross margin
Add:
Operating and maintenance (1)
Depreciation and amortization
Utility gross margin
94,579
55,698 $ 512,098 $ 432,778
190,488 $
98,274 $ 1,128,767
$
731,796
114,791
38,842
557,232
260,714
30,840
26,156
93,199
110,364
3,496
3,734
59,437
38,304
24,391
21,507
94,579
80,045
16,970
8,035
324,320
242,369
30,840
26,156
93,199
24,391
21,507
110,364
80,045
72,201 $
A reconciliation of gross margin, the closest GAAP financial measurement, to financial margin is as follows:
Operating revenues
439,568 $
334,780 $ 1,529,272 $ 1,228,420
Natural Gas purchases
413,805
Operating and maintenance (1)
Depreciation and amortization
Gross margin
10,281
54
15,428
357,133
4,588
28
(26,969)
1,394,405
23,709
148
111,010
1,098,261
33,263
111
96,785
Operating and maintenance (1)
Depreciation and amortization
10,281
54
4,588
28
23,709
33,263
148
111
Unrealized loss (gain) on derivative instruments and related transactions
1,671
Effects of economic hedging related to natural gas inventory
Financial margin
(5,221)
$
22,213 $
45,011
(30,150)
(7,492) $
(60,000)
19,939
58,362
(42,405)
94,806 $
146,116
(1) Excludes selling, general and administrative expenses
27
Less:
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