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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 26
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