Following a busy annual shareholder meeting Wednesday, New Jersey Resources Corp. (NJR), parent company of New Jersey Natural Gas Co. (NJNG), reported higher fiscal 2002 first-quarter earnings of $1.10 per share, a 10% increase compared with last year; a three-for-two stock split and a 500,000 share increase in its share repurchase plan. The meeting also marked the 50th anniversary of NJNG.

“Fiscal 2001 was our tenth consecutive year of higher earnings, and we have maintained this record of earnings growth through the first quarter of fiscal 2002 despite warmer-than-normal weather,” said Laurence M. Downes, CEO of NJR.

Sparked by strong customer growth in its regulated and unregulated wholesale energy service subsidiaries tied with lower operating expenses, NJR earned $19.7 million for the three months ended Dec. 31, 2001, an 11% increase compared with last year’s results of $17.7 million. NJNG earned $17.1 million ($0.96 per share) during the quarter. The regulated utility’s customer growth, higher off-system and capacity management margins and lower operating and net interest costs more than offset the effects of warmer weather.

NJR Energy Services Corp. (NJRES), NJR’s unregulated wholesale energy services subsidiary, reported a 9% increase in earnings to $2.1 million ($0.12 per share), compared with $1.9 million ($0.11 per share) last year, reflecting increased capacity management and storage throughput. Looking ahead, NJRES said participation in storage management opportunities such as the Stagecoach natural gas storage field is expected to enable it to increase its growth and earnings prospects. NJRES has been engaged as the exclusive marketing agent for Stagecoach, a storage field being developed in upstate New York, which is expected to begin operations in the second quarter of 2002.

“The dedication of our employees has allowed the company to achieve its twenty-first quarter of consecutive earnings growth, despite weather that was the warmest on record,” said Downes. “I am extremely proud of their efforts this quarter because once again, we have affirmed our reputation for consistent performance.”

NJR’s three-for-two split of its outstanding shares of common stock will entitle each shareholder of record at the close of business on Feb. 8, 2002, to receive one additional share of common stock for every two shares of NJR common stock held on that date. After the split, NJR said it will have approximately 26.7 million shares of common stock outstanding.

“We are taking this action in response to our excellent earnings and stock price performance,” explained Downes. “We want to make our stock accessible to a broader range of investors, improve its marketability and enhance shareholder value.”

NJNG also stated that it has submitted a filing with the New Jersey Board of Public Utilities to decrease customers’ natural gas prices for the third time since the beginning of the current heating season. Already this winter, NJNG has decreased gas prices by nearly 12% and hopes that its request for another 3% decrease will be approved shortly.

Rounding out the day’s business, NJR also announced that its board of directors authorized an increase in its share repurchase plan from 1.5 million to 2 million shares. Since beginning this plan in 1996, NJR said it has purchased 1.4 million shares for $48.9 million. “NJR was one of the first companies in the utility industry to offer a repurchase plan, and I am pleased that the board has authorized the increase,” said Downes. “This plan gives us enormous financial flexibility and puts an important tool at our disposal which is expected to create value for our shareholders.”

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