Investor Presentaiton
Reconciliation of NFE and NFEPS to Net Income
($ in 000s)
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.
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
(Unaudited)
NEW JERSEY RESOURCES
Three Months Ended
March 31,
Six Months Ended
March 31,
2023
2022
2023
2022
A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:
110,247 $ 96,035 $ 226,168 $
207,347
Net income
Add:
$
Unrealized loss (gain) on derivative instruments and related
transactions
13,971
42,022
(17,532)
(40,169)
Tax effect
(3,320)
(9,980)
4,167
9,556
Effects of economic hedging related to natural gas inventory
Tax effect
(11,203)
1,155
12,769
24,732
2,662
(274)
(3,035)
(5,877)
Gain on equity method investment
(200)
(200)
50
50
103
Tax effect
NFE tax adjustment
Net financial earnings
Weighted Average Shares Outstanding
Basic
Diluted
$
1,248
207
387
112,310 $ 130,206 $ 222,594 $ 195,976
96,893
97,556
96,068
96,516
96,689
97,346
96,006
96,480
A reconciliation of basic earnings per share, the closest GAAP financial measure, to basic net financial earnings
per share is as follows:
Basic earnings per share
1.14 $
1.00 $
2.34 $
2.16
Add:
Unrealized loss (gain) on derivative instruments and related
transactions
0.14
$
Tax effect
$
0.44 $
(0.03) $ (0.10) $
(0.12) $ 0.01 $
0.03
(0.18) $
0.04
$
(0.42)
0.10
0.13 $
0.26
$
(0.03) $
(0.06)
0.01 $
1.36 $
2.30
2.04
14
Effects of economic hedging related to natural gas inventory
Tax effect
NFE tax adjustment
Basic NFE per share
-
1.16
SASASA SASASA
SASSA SAView entire presentation