Investor Presentaiton
Reconciliation of NFE and NFEPS to Net Income
($ in ooos)
(Unaudited)
•
Three Months Ended
September 30,
Twelve Months Ended
September 30,
2022
2021
2022
2021
NFE is a measure of earnings based on the
elimination of timing differences to effectively
match the earnings effects of the economic
hedges with the physical sale of natural gas, Solar
Renewable Energy Certificates (SRECs) and
foreign currency contracts. Consequently, to
reconcile net income and NFE, current-period
unrealized gains and losses on the derivatives are
excluded from NFE as a reconciling item.
Realized derivative gains and losses are also
included in current-period net income. However,
NFE includes only realized gains and losses
related to natural gas sold out of inventory,
effectively matching the full earnings effects of the
derivatives with realized margins on physical
natural gas flows. NFE also excludes certain
transactions associated with equity method
investments, including impairment charges, which
are non-cash charges, and return of capital in
excess of the carrying value of our investment.
These are not indicative of the Company's
performance for its ongoing operations. Included
in the tax effects are current and deferred income
tax expense corresponding with the components
of NFE.
NEW JERSEY RESOURCES
A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:
Net income (loss)
Add:
$
54,522 $
(1,133) $
274,922 $ 117,890
Unrealized (gain) loss on derivative instruments and related transactions
Tax effect
(1,846)
40,576
(59,906)
54,203
439
(9,647)
14,248
(12,887)
Effects of economic hedging related to natural gas inventory
Tax effect
(5,221)
(30,150)
19,939
(42,405)
1,241
7,166
(4,738)
10,078
(1,500)
(5,521)
92,000
374
767
1,377
(11,167)
(113)
(980)
47,896 $
6,599 $ 240,321 $ 207,712
(Gain on) impairment of equity method investment
Tax effect
NFE tax adjustment
Net financial earnings
Weighted Average Shares Outstanding
Basic
Diluted
96,235
96,630
96,198
96,198
96,100
96,488
96,227
96,560
A reconciliation of basic earnings per share, the closest GAAP financial measure, to basic net financial earnings per share is as
follows:
0.57
Basic earnings (loss) per share
(0.01) $
2.86 $
1.23
Add:
Unrealized (gain) loss on derivative instruments and related transactions
Tax effect
(0.02) $
0.01
NFE eliminates the impact of volatility to GAAP
earnings associated with unrealized gains and
losses on derivative instruments in the current
period
N
New Jersey
Resources
(Gain on) impairment of equity method investment
Tax effect
NFE tax adjustment
Basic NFE per share
Effects of economic hedging related to natural gas inventory
Tax effect
(0.05) $
0.01
(0.02) $
-
LA SA
$
0.50
SASASA EA EA EA SA SA
0.42 $
(0.10) $
(0.62) $
0.15 $
(0.31) $
0.21
0.07 $
(0.05) $
-
(0.06) $
0.01 $
0.01 $
(0.01) $
$
0.07 $
2.50
SSSSS SSASA
0.56
(0.13)
$
(0.44)
0.10
0.96
(0.12)
$
$
2.16 26View entire presentation