NJR Reports Fiscal Year-to-Date and Second-Quarter Earnings Per Share;

NJR Reports Fiscal Year-to-Date and Second-Quarter Earnings Per Share; NJR's Fiscal 2005 Year-to-Date Earnings Increase 8 Percent over Last Year; NJR Reports Second-Quarter 2005 Basic Earnings Per Share of $1.87

    Business Editors/Energy Editors

    WALL, N.J.--(BUSINESS WIRE)--April 27, 2005--

NJR is on Track for 14th Consecutive Year of Earnings Growth
    New Jersey Resources (NYSE:NJR) today reported an 8 percent increase in basic earnings per share for the six months ended March 31, 2005, to $2.96, compared with $2.75 last year. For the six months ended March 31, 2005, diluted earnings per share increased to $2.90, compared with $2.70 last year. Fiscal year-to-date earnings included a $.22 per basic share gain on the sale of a commercial office building and a charge of $.05 per basic share associated with an early retirement program for officers. Net of these items, NJR's earnings were $77.4 million, or $2.79 per basic share and $2.74 per diluted share.
    Fiscal 2005 second-quarter basic earnings per share increased to $1.87, compared with $1.86 last year. For the three months ended March 31, 2005, diluted earnings per share increased to $1.84, compared with $1.82 last year.
    The increase in earnings for both periods is attributable primarily to higher results at both NJR Energy Services (NJRES), NJR's unregulated wholesale energy services subsidiary, and NJR Home Services (NJRHS), NJR's unregulated appliance services subsidiary.
    "Our financial performance is the result of a focused strategy of meeting the energy needs of customers in our core energy business in New Jersey, complemented by our profitable energy services business," said Laurence M. Downes, chairman and CEO of NJR. "Based on our performance over the first half of the fiscal year and our earnings guidance, we are expecting to achieve our 14th consecutive year of earnings growth this year - a streak that we believe is the longest in the industry," Mr. Downes said. "This track record is a testament to our employees' commitment to reliability."

    Financial and operating highlights included:

--	Higher Net Income and Basic Earnings per Share - For the six months ended March 31, 2005, NJR earned $81.9 million, or $2.96 per basic share, compared with $75.4 million, or $2.75 per basic share, last year. Earnings for the 6-month period included a gain on the sale of a commercial office building of $.22 per basic share by NJR's commercial real estate subsidiary, Commercial Realty and Resources (CR&R), and a charge of $.05 per basic share associated with a voluntary officer retirement program as part of an overall restructuring plan for the organization. NJNG earned $53 million for the 6-month period ended March 31, 2005, compared with $54.4 million last year. This decrease was due primarily to NJNG's share of the early retirement charge and the impact of lower customer usage per degree day. NJRES reported a 7 percent increase in earnings to $22 million, compared with $20.6 million last year, due primarily to higher gross margin from its portfolio of storage and transportation capacity assets, as well as higher management fees. Gross margin for NJRES is defined as natural gas revenues and management fees less natural gas costs. NJR earned $51.7 million, or $1.87 per basic share, for the three months ended March 31, 2005, compared with $51 million, or $1.86 per share, for the same period last year. These earnings primarily reflect improved results at both NJRES and NJRHS.
--	Customer Growth - During the first six months of the fiscal year, NJNG added approximately .8 billion cubic feet (Bcf) of new throughput, which is expected to generate about $2.4 million in annual gross margin. NJNG anticipates continuing to maintain an annual customer growth rate of about 2.4 percent in fiscal 2005, adding approximately 1.8 Bcf of firm sales, which would represent approximately $5.6 million of annual gross margin. About 35 percent of the anticipated new customers are expected to convert from other fuels.

    NJNG's gross margin is defined as natural gas revenues less natural gas costs; sales tax; a Transitional Energy Facilities Assessment (TEFA), which is included in Energy and other taxes on the Consolidated Statements of Income; and regulatory rider expenses. Management believes that gross margin provides a more meaningful basis for evaluating utility operations than revenue since natural gas costs, sales tax, TEFA and regulatory rider expenses are passed through to customers, and therefore have no effect on gross margin. Natural gas costs are charged to operating expenses on the basis of therm sales at the prices approved by the New Jersey Board of Public Utilities through NJNG's Basic Gas Supply Service (BGSS) tariff. The BGSS allows NJNG to recover natural gas costs. Sales tax is calculated at 6 percent of revenue and excludes sales to cogeneration facilities, other utilities, off-system sales and federal accounts. TEFA is calculated on a per-therm basis and excludes sales to cogeneration facilities, other utilities and off-system sales. Regulatory rider expenses are calculated on a per-therm basis. NJNG's gross margin also includes benefits received by shareowners related to its incentive programs.

    -- Weather - For the six months ended March 31, 2005, weather was
    3 percent colder than normal and slightly warmer than last
    year. Weather for the second quarter was 6 percent colder than
    normal and 1 percent warmer than last year. "Normal" weather
    is based on 20-year average temperatures. The impact of the
    weather is significantly offset by NJNG's
    weather-normalization clause, which is designed to smooth out
    year-to-year fluctuations on both NJNG's gross margin and
    customers' bills that may result from changing weather
    patterns. As a result of the colder-than-normal weather, NJNG
    deferred $2.4 million of gross margin for the six months ended
    March 31, 2005, to be credited to customers in the future.
    Gross margin was negatively impacted by lower than expected
    usage per degree day. The company believes that this resulted
    primarily from inconsistent weather patterns experienced in
    the first fiscal quarter.

    -- Incentive Programs - During the first six months of the fiscal
    year, NJNG's gross margin-sharing incentive programs totaled
    53 Bcf and $4 million of gross margin, compared with 53 Bcf
    and $3.7 million of gross margin for the same period last
    year. These incentive programs include off-system sales,
    capacity management, storage optimization and financial risk
    management programs. NJNG shares the gross margin earned from
    these incentive programs with customers and shareowners
    according to a margin-sharing formula in effect through
    October 2006. Since the establishment of these incentive
    programs in 1992, NJNG customers have saved nearly $256
    million on their natural gas bills, or approximately 4 percent
    annually.

    -- Wholesale Energy Services - NJRES' earnings of $22 million
    during the first six months of the fiscal year benefited from
    higher gross margin generated from its storage and
    transportation portfolio. NJRES has developed a portfolio of
    storage and transportation capacity in the Northeast, Gulf
    Coast, Mid-Continent, Appalachia and Eastern Canada. These
    assets become more valuable when prices change between these
    areas, and when prices change between time periods. Gross
    margin from this portfolio is generally greater during the
    winter months, while the fixed costs of these assets are
    spread throughout the year. Therefore, the results for the six
    months will not be indicative of the results for the fiscal
    year. For the three months ended March 31, 2005, NJRES earned
    $15.5 million, compared with $15.3 million last year. The
    increase in earnings in the quarter was due primarily to
    higher gross margin generated from the storage and
    transportation portfolio and higher management fees.

    -- NJRHS and Other - This business segment consists of NJRHS,
    which provides service, sales and installation of appliances
    to nearly 140,000 customers; CR&R, which develops commercial
    real estate; and NJR Energy, which consists primarily of a 3.2
    percent equity investment in Iroquois Gas Transmission System,
    L.P. Earnings for the six months ended March 31, 2005, were
    $6.8 million, compared with $433,000 last year. Fiscal
    year-to-date earnings included a gain on the sale of a
    commercial office building of approximately $6 million, or
    $.22 per basic share. Net of this gain, and this segment's
    portion of the early retirement charge, earnings for the six
    months increased to $1.4 million, compared with $433,000 last
    year. Earnings for the three months were $961,000, compared
    with $393,000 last year. The increase in earnings in both
    periods was due primarily to improved results at NJRHS.

    -- Share Repurchase Plan - In January 2005, the NJR Board of
    Directors authorized an increase in the company's share
    repurchase plan from 2 million to 2.5 million shares. NJR was
    one of the first companies in the utility industry to offer a
    repurchase plan, which gives the company financial
    flexibility. NJR purchased 547,400 shares under the share
    repurchase plan in the six months ended March 31, 2005. The
    plan allows NJR to purchase its shares on the open market or
    in negotiated transactions, based on market and other
    conditions. Since the plan began in September 1996, NJR has
    invested $81 million to repurchase 2.2 million shares.

    -- Operation and Maintenance Expenses - Consolidated operation
    and maintenance (O&M) expenses were $53.5 million for the six
    months ended March 31, 2005, compared with $51.7 million last
    year. The increase was due primarily to costs associated with
    the early retirement program for officers. For the quarter,
    O&M expenses were $24.9 million versus $26.8 million last
    year. The decline in O&M expenses for the three months was due
    primarily to a decrease of $1.4 million in costs associated
    with the company's long-term incentive program.

    -- Recognition in Forbes and Fortune magazines - For the third
    year in a row, NJR has earned a spot on the Forbes Platinum
    400. In the January 10 issue of Forbes magazine, NJR was the
    only New Jersey-based energy company among a total of 25
    energy companies and utilities on the list. The Forbes
    Platinum 400 recognizes high-ranking companies according to
    growth in sales and earnings, leverage, stock market returns,
    earnings forecasts and other factors such as earnings quality.
    In the April issue of Fortune magazine, NJR was named for the
    fourth consecutive year to the Fortune 1000.

    Fiscal 2005 Earnings Guidance

    Assuming normal weather, stable economic conditions and continued customer growth at NJNG and continued volatility in the wholesale natural gas markets at NJRES, and subject to the qualifications discussed below under "Forward-Looking Statements," NJR estimates that earnings for fiscal 2005 will be in the $2.65-$2.75 per basic share range. This guidance excludes the gain on the sale of a commercial real estate building of $.22 per basic share and the charge of $.05 per basic share associated with the early retirement program.

    Webcast Information

    NJR will host a live webcast to discuss the quarter's financial results today at 2 p.m. EDT. To listen to the call, logon to NJR's Web site, njliving.com, and select "Investor Relations," then click just below the microphone on the right side of the Investor Relations home page.

    About New Jersey Resources

    New Jersey Resources (NYSE:NJR), a Fortune 1000 company and a member of the Forbes Platinum 400, provides reliable retail and wholesale energy services to customers in New Jersey and in states from the Gulf Coast to New England, and Canada. Its principal subsidiary, New Jersey Natural Gas, is one of the fastest-growing local distribution companies in the United States, serving more than 459,000 customers in central and northern New Jersey. Other major NJR subsidiaries include NJR Energy Services and NJR Home Services. NJR Energy Services is a leader in the unregulated energy services market, providing customer service and management of natural gas storage and capacity assets. NJR Home Services offers retail customers heating, air conditioning and appliance services. NJR's progress is a tribute to the more than 5,000 dedicated employees who have shared their expertise and focus on quality through more than 50 years of serving customers and the community to make NJR a leader in the competitive energy marketplace. For more information, visit NJR's Web site at njliving.com.

    Forward-Looking Statements

    This news release contains estimates and other forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. NJR cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJR's ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants. Other factors that could cause actual results, including gross margin, earnings and customer growth, to differ materially from the company's expectations include, but are not limited to, weather conditions, economic conditions in NJNG's service territory, the impact of regulation (including the regulation of rates), fluctuations in energy-related commodity prices, conversion activity, other marketing efforts, actual energy usage patterns of NJNG's customers, the pace of deregulation of retail gas markets, access to adequate supplies of natural gas, the regulatory and pricing policies of federal and state regulatory agencies, changes due to legislation at the federal and state level, the disallowance of recovery of environmental remediation expenditures and other regulatory changes, the resolution of Stagecoach and other litigation and other uncertainties. More detailed information about these factors is set forth in NJR's filings with the Securities and Exchange Commission, including NJR's Quarterly Report on Form 10-Q filed on February 7, 2005. NJR's Form 10-Q is available at www.sec.gov. NJR does not, by including this paragraph, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.

NEW JERSEY RESOURCES CONSOLIDATED FINANCIAL RESULTS

---------------------------------------------------------------------- (Unaudited) Thousands, except Three Months Ended Six Months Ended per share data March 31, March 31, 2005 2004 2005 2004 ----------------------------------------------------------------------

Operating Revenues $1,065,057 $1,037,661 $1,919,045 $1,680,707

Net Income $51,665 $51,027 $81,867 $75,405

Earnings Per Common Share Basic $1.87 $1.86 $2.96 $2.75

Diluted $1.84 $1.82 $2.90 $2.70

Average Shares Outstanding Basic 27,581 27,484 27,689 27,410

Diluted 28,140 28,030 28,236 27,947 ----------------------------------------------------------------------

NEW JERSEY RESOURCES ADJUSTED NET INCOME AND EARNINGS PER SHARE RECONCILIATION

Provided below is a reconciliation of as reported and as adjusted information for Net Income and basic and diluted earnings per share. This reconciliation reflects the impact of a gain on the sale of a commercial office building and a charge related to an early retirement program for officers.

Management believes that this reconciliation is needed due to the unusual nature of the two items described above and that they are not indicative of core results. It also provides for a more consistent comparison for year-over-year results.

(Unaudited) (Thousands, except per Six Months Ended share data) March 31, 2005 ----------------------------------------------------------------------

NJNG NJRES NJRHS and Total Other ----------------------------------------------------------------------

Net Income, as reported $53,091 $22,006 $6,770 $81,867

Exclude: Gain on sale of commercial office building, net of tax (5,972) (5,972) Charge for early retirement program, net of tax 915 8 569 1,492 -------------------------------------------

Net Income, as adjusted $54,006 $22,014 $1,367 $77,387 ===========================================

----------------------------------------------------------------------

Earnings per share basic, as reported $2.96

Exclude: Gain on sale of commercial office building, net of tax (.22) Charge for early retirement program, net of tax .05 ------------

Earnings per share basic, as adjusted $2.79 ============

----------------------------------------------------------------------

Earnings per share diluted, as reported $2.90

Exclude: Gain on sale of commercial office building, net of tax (.21) Charge for early retirement program, net of tax .05 ------------

Earnings per share diluted, as adjusted $2.74 ============ ----------------------------------------------------------------------

NEW JERSEY RESOURCES CONSOLIDATED STATEMENTS OF INCOME

(Unaudited) (Thousands, except per share data) ----------------------------------------------------------------------

Three Months Ended Six Months Ended March 31, March 31, 2005 2004 2005 2004 ----------------- ------------ ------------ ------------ ------------ OPERATING REVENUES $1,065,057 $1,037,661 $1,919,045 $1,680,707 ----------------- ------------ ------------ ------------ ------------

OPERATING EXPENSES Gas purchases 902,924 888,047 1,641,350 1,438,993 Operation and maintenance 24,873 26,768 53,536 51,656 Regulatory rider expenses 14,786 4,340 23,914 6,970 Depreciation and amortization 8,352 8,306 16,711 16,536 Energy and other taxes 25,827 23,182 41,611 37,287 ----------------- ------------ ------------ ------------ ------------ Total operating expenses 976,762 950,643 1,777,122 1,551,442 ----------------- ------------ ------------ ------------ ------------

OPERATING INCOME 88,295 87,018 141,923 129,265

Other income 1,480 551 3,164 1,931

Interest charges, net 4,721 3,691 10,071 7,344 ----------------- ------------ ------------ ------------ ------------

INCOME BEFORE INCOME TAXES 85,054 83,878 135,016 123,852

Income tax provision 33,389 32,851 53,149 48,447 ----------------- ------------ ------------ ------------ ------------

NET INCOME $51,665 $51,027 $81,867 $75,405 ----------------- ------------ ------------ ------------ ------------

EARNINGS PER COMMON SHARE BASIC $1.87 $1.86 $2.96 $2.75 DILUTED $1.84 $1.82 $2.90 $2.70 ================= ============ ============ ============ ============

DIVIDENDS PER COMMON SHARE $0.34 $0.325 $0.68 $0.65 ================= ============ ============ ============ ============

AVERAGE SHARES OUTSTANDING BASIC 27,581 27,484 27,689 27,410 DILUTED 28,140 28,030 28,236 27,947 ================= ============ ============ ============ ============

NEW JERSEY RESOURCES ======================================================================

Three Months Ended Six Months Ended (Unaudited) March 31, March 31, (Thousands, except per share data) 2005 2004 2005 2004 ---------------------------------------------------------------------- Operating Revenues New Jersey Natural Gas $462,576 $399,607 $783,046 $651,841 NJR Energy Services 596,921 633,095 1,113,792 1,018,593 NJR Home Services and Other 5,585 4,983 22,256 10,320 --------------------------------------------------- Subtotal 1,065,082 1,037,685 1,919,094 1,680,754 --------------------------------------------------- Intercompany Eliminations (25) (24) (49) (47) --------------------------------------------------- Total $1,065,057 $1,037,661 $1,919,045 $1,680,707 ===================================================

---------------------------------------------------------------------- Operating Income New Jersey Natural Gas $60,353 $59,582 $92,149 $92,672 NJR Energy Services 26,581 27,148 38,743 36,341 NJR Home Services and Other 1,361 288 11,031 252 --------------------------------------------------- Total $88,295 $87,018 $141,923 $129,265 ===================================================

---------------------------------------------------------------------- Net Income New Jersey Natural Gas $35,258 $35,318 $53,091 $54,383 NJR Energy Services 15,446 15,316 22,006 20,589 NJR Home Services and Other 961 393 6,770 433 --------------------------------------------------- Total $51,665 $51,027 $81,867 $75,405 ===================================================

---------------------------------------------------------------------- Throughput (Bcf) NJNG, Core Customers 32.3 32.8 53.2 52.8 NJNG, Incentive Programs 14.1 13.2 28.6 26.7 NJRES Fuel Mgmt. and Wholesale Sales 82.9 95.6 152.6 170.2 --------------------------------------------------- Total 129.3 141.6 234.4 249.7 ===================================================

---------------------------------------------------------------------- Common Stock Data Yield at March 31 3.1% 3.4% 3.1% 3.4% Market Price High $45.50 $40.00 $45.50 $40.00 Low $41.20 $36.80 $40.54 $35.76 Close at March 31 $43.53 $37.80 $43.53 $37.80 Shares Out. at March 31 27,435 27,509 27,435 27,509 Market Cap. at March 31 $1,249,116 $1,039,840 $1,249,116 $1,039,840 ----------------------------------------------------------------------

NEW JERSEY NATURAL GAS ======================================================================

Three Months Ended Six Months Ended (Unaudited) March 31, March 31, (Thousands, except customer & weather data) 2005 2004 2005 2004 ---------------------------------------------------------------------- Operating Revenues Residential $275,070 $241,769 $436,239 $383,502 Commercial, Industrial & Other 69,572 56,969 110,733 90,860 Firm Transportation 10,963 10,663 19,724 19,029 --------------------------------------- Total Firm Revenues 355,605 309,401 566,696 493,391 Interruptible 1,975 993 6,111 2,719 --------------------------------------- Total System Revenues 357,580 310,394 572,807 496,110 --------------------------------------- Incentive Programs 104,996 89,213 210,239 155,731 --------------------------------------- TOTAL REVENUES $462,576 $399,607 $783,046 $651,841 =======================================

---------------------------------------------------------------------- Gross Margin and Operating Income Residential $65,259 $65,058 $109,322 $109,023 Commercial, Industrial & Other 12,430 12,452 20,823 20,766 Firm Transportation 8,160 8,939 14,805 16,037 --------------------------------------- Total Firm Margin 85,849 86,449 144,950 145,826 Interruptible 260 223 567 501 --------------------------------------- Total System Margin 86,109 86,672 145,517 146,327 --------------------------------------- Incentive Programs 2,438 2,158 4,008 3,704 --------------------------------------- TOTAL GROSS MARGIN 88,547 88,830 149,525 150,031 --------------------------------------- Operation and maintenance expense 19,268 20,480 39,497 39,817 Depreciation and amortization 8,187 8,139 16,304 16,202 Other taxes not reflected in gross margin 739 629 1,575 1,340 --------------------------------------- OPERATING INCOME $60,353 $59,582 $92,149 $92,672 =======================================

---------------------------------------------------------------------- Throughput (Bcf) Residential 21.8 22.2 34.4 35.3 Commercial, Industrial & Other 5.6 5.6 8.9 8.6 Firm Transportation 3.4 3.8 5.8 6.4 --------------------------------------- Total Firm Throughput 30.8 31.6 49.1 50.3 Interruptible 1.5 1.2 4.1 2.5 --------------------------------------- Total System Throughput 32.3 32.8 53.2 52.8 --------------------------------------- Incentive Programs 14.1 13.2 28.6 26.7 --------------------------------------- TOTAL THROUGHPUT 46.4 46.0 81.8 79.5 =======================================

---------------------------------------------------------------------- Customers Residential 414,558 405,242 414,558 405,242 Commercial, Industrial & Other 29,533 28,291 29,533 28,291 Firm Transportation 15,147 16,137 15,147 16,137 --------------------------------------- Total Firm Customers 459,238 449,670 459,238 449,670 Interruptible 51 51 51 51 --------------------------------------- Total System Customers 459,289 449,721 459,289 449,721 --------------------------------------- Incentive Programs 37 36 37 36 --------------------------------------- TOTAL CUSTOMERS 459,326 449,757 459,326 449,757 =======================================

NEW JERSEY NATURAL GAS ====================================================================== (Unaudited) Three Months Ended Six Months Ended (Thousands, except customer March 31, March 31, & weather data) 2005 2004 2005 2004 ---------------------------------------------------------------------- Degree Days Actual 2,677 2,716 4,327 4,340 Normal 2,527 2,543 4,219 4,248 ----------------------------------------- Percent of Normal 105.9% 106.8% 102.6% 102.2% -----------------------------------------

NJR ENERGY SERVICES ======================================================================

Operating Revenues $596,921 $633,095 $1,113,792 $1,018,593 Gas Purchases 568,155 603,669 1,070,604 979,078 ----------------------------------------- Gross Margin $28,766 $29,426 $43,188 $39,515 =========================================

Operating Income $26,581 $27,148 $38,743 $36,341 =========================================

Net Income $15,446 $15,316 $22,006 $20,589 =========================================

Gas Sold and Managed (Bcf) 82.9 95.6 152.6 170.2 =========================================

NJR HOME SERVICES AND OTHER ======================================================================

Operating Revenues $5,585 $4,983 $22,256 $10,320 =========================================

Operating Income $1,361 $288 $11,031 $252 =========================================

Net Income $961 $393 $6,770 $433 =========================================

Total Customers at March 31 140,864 137,445 140,864 137,445 =========================================

--30--SS/ny*

CONTACT: New Jersey Resources Media: Roseanne Koberle, 732-938-1112 or Investors: Dennis Puma, 732-938-1229

KEYWORD: NEW JERSEY INDUSTRY KEYWORD: OIL/GAS ENERGY UTILITIES EARNINGS CONFERENCE CALLS SOURCE: New Jersey Resources

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