CORRECTING and REPLACING New Jersey Resources Reports Higher Fiscal 2011 Second-Quarter Net Financial Earnings; Reaffirms Fiscal 2011 Guidance

WALL, N.J.--(BUSINESS WIRE)--Please replace the release with the following corrected version due to multiple revisions to the tables at the end of the release.

“The benefits from the AIP are widespread. These infrastructure projects will help ensure the safety, integrity and reliability of our delivery system. And, at the same time, these projects will help bolster the state’s economy through job growth and other related economic activity”

The corrected release reads:

NEW JERSEY RESOURCES REPORTS HIGHER FISCAL 2011 SECOND-QUARTER NET FINANCIAL EARNINGS; REAFFIRMS FISCAL 2011 GUIDANCE

New Jersey Resources (NYSE:NJR) today reported earnings for the second quarter of fiscal 2011 and reaffirmed its net financial earnings guidance for fiscal 2011.

A reconciliation of NJR’s net income to net financial earnings for the three and six months ended March 31 in fiscal years 2011 and 2010 is provided below:

	Three Months Ended		Six Months Ended
	March 31,		March 31,
(Thousands)	2011	2010	2011	2010
Net income	$63,927	$74,217	$88,436	$126,119
Add:
Unrealized loss (gain) on derivative instruments and related transactions, net of taxes	2,306	(7,845)	36,710	(11,950)
Effects of economic hedging related to natural gas, net of taxes	796	(2,361)	(28,987)	(22,745)
Net financial earnings	$67,029	$64,011	$96,159	$91,424
Weighted Average Shares Outstanding
Basic	41,352	41,418	41,316	41,517
Diluted	41,553	41,726	41,516	41,824
Basic earnings per share	$1.55	$1.79	$2.14	$3.04
Basic net financial earnings per share	$1.62	$1.55	$2.33	$2.20

Net financial earnings is a financial measure not calculated in accordance with generally accepted accounting principles (GAAP) of the United States as it excludes all unrealized, and certain realized, gains and losses associated with derivative instruments. For further discussion of this financial measure, as well as reconciliation to the most comparable GAAP measure, please see the explanation below under “Additional Non-GAAP Financial Information.”

• NJR Net Financial Earnings per Share Increase 5.9 Percent

Year-to-date net financial earnings at NJR totaled $96.2 million, or $2.33 per share, compared with $91.4 million, or $2.20 per share, during the same period last year. For the three-month period ended March 31, 2011, net financial earnings were $67 million, compared with $64 million during the same period last year. The increase is due primarily to a strong increase in earnings at New Jersey Natural Gas (NJNG) and investment tax credits generated from solar investments at NJR Clean Energy Ventures (NJRCEV), which more than offset expected lower results at NJR Energy Services (NJRES).

“New Jersey Natural Gas continues to achieve its strong performance and is the largest contributor to NJR’s earnings increase, also, we are pleased that we are cultivating real growth opportunities in both the commercial and residential components of our emerging solar business,” said Laurence M. Downes, chairman and CEO of NJR. “We remain on track for another year of improved financial performance and continuing our commitment to deliver consistent returns for our shareowners.”

• Net Financial Earnings Guidance Reaffirmed

Subject to the risks and uncertainties identified below under “Forward-Looking Statements,” NJR is reaffirming the net financial earnings guidance of $2.50 to $2.65 per basic share announced last quarter. NJR expects NJNG to be the major contributor to fiscal 2011 net financial earnings, accounting for 60 to 70 percent of the total. The contributions from NJR Clean Energy Ventures’ solar projects are currently expected to contribute between 10 to 20 percent. In addition, NJR Energy Services and Midstream Assets are expected to each contribute between 5 to 10 percent, and NJR Home Services between 2 to 5 percent of total fiscal 2011 net financial earnings.

• Growth Continues at New Jersey Natural Gas

Fiscal 2011 year-to-date earnings at NJNG, the company’s regulated utility subsidiary, were $68.4 million, compared with $64 million for the first six months of fiscal 2010. For the three months ended March 31, 2011, earnings were $44 million, compared with $40.5 million in the same period last year. Both increases are due primarily to higher gross margin from customer growth and incentive programs, as well as the impact of accelerated infrastructure programs.

Natural gas continues to maintain a price advantage over other home heating fuels in NJNG’s service territory. When combined with incentives available from NJNG’s The SAVEGREEN Project™, the natural gas cost advantage is contributing to strong new customer growth results. During the first six months of fiscal 2011, NJNG added 3,070 new customers, a 23 percent increase over the same period in 2010. Of these new customers, 1,360 converted from other fuels. Additionally, 305 existing non-heat customers converted to natural gas heat. In total, these new customers are expected to contribute approximately $1.6 million to utility gross margin annually. NJNG expects to add approximately 12,000 to 14,000 new customers during fiscal years 2011 and 2012 combined.

During the first six months of the fiscal year, NJNG’s gross margin-sharing incentive programs, which include off-system sales, capacity release, storage optimization and financial risk management programs, totaled $6.2 million of gross margin, compared with $5.4 million of gross margin for the same period last year. The increase in gross margin was due primarily to the timing of physical injections and hedging gains and losses in the storage incentive program and an increase in capacity release volumes. NJNG shares the gross margin earned from these incentive programs with customers and shareowners according to a gross margin-sharing formula authorized by the New Jersey Board of Public Utilities (BPU). On April 1, 2011, NJNG filed with the BPU for approval of a five-year extension of its current margin-sharing incentive programs through October 31, 2016.

• Accelerated Infrastructure Program II Approved

In March 2011, NJNG received approval from the BPU to continue its Accelerated Infrastructure Program (AIP) to expedite previously planned capital expenditures. The nine new projects, collectively referred to as the AIP II, will commence no later than December 31, 2011 with an expected completion date of October 31, 2012. NJNG expects that AIP II will add over $60.2 million to NJNG’s rate base. The company will earn an overall return of 7.12 percent, which includes a 10.3 percent return on equity. Based upon recent studies conducted by the Rutgers University Bloustein School of Planning and Public Policy, AIP II is also projected to spur economic activity in the state, with the potential to support 490 direct and indirect jobs and generate and approximately $38 million in economic activity.

The BPU approved the first AIP in April 2009, which included 14 capital projects. To date, seven of these 14 projects have been completed, with total completion expected late summer 2011.

“The benefits from the AIP are widespread. These infrastructure projects will help ensure the safety, integrity and reliability of our delivery system. And, at the same time, these projects will help bolster the state’s economy through job growth and other related economic activity,” said Downes.

• The SAVEGREEN Project; Introduces On-Bill Repayment Program

The success of NJNG’s The SAVEGREEN Project continued through the second quarter of fiscal 2011 with nearly 3,400 home energy audits completed and rebates and incentives totaling nearly $7.2 million paid to customers through the second quarter of 2011.

NJNG’s newest SAVEGREEN initiative, On-Bill Repayment, has enrolled 67 residential customers to date. The program allows customers to repay up to $10,000 of the cost of their energy-efficiency improvements made through Home Performance with ENERGY STAR directly on their NJNG bill, interest-free, over a 10-year period. Customer incentives are recovered through a rider mechanism over five years and earn a return at its weighted average cost of capital of 7.76 percent.

• Two Commercial Solar Projects Completed; The Sunlight Advantage^TM Residential Program Continues to Grow

NJR Clean Energy Ventures (NJRCEV) placed two rooftop solar projects, totaling approximately two megawatts of installed capacity and $9.2 million of invested capital into service during the quarter. Two additional rooftop projects are under construction of similar size and capital investment, and are expected to be completed this summer. Site work has also begun at a 3.6 megawatt, ground-mount project in Manalapan, New Jersey. This estimated $18 million project is expected to be completed in the fall. In fiscal 2011, NJR currently expects to invest between $50 and $70 million in residential, commercial-rooftop and ground-mounted solar projects.

NJRCEV earned $5.2 million in the first six months of fiscal 2011 due primarily to investment tax credits generated by solar projects. These results include $3.9 million in tax benefits to adjust the effective tax rate to be consistent with its annual projection as of March 31, 2011. NJR’s annual effective tax rate will be significantly influenced by the amount of investment tax credits earned during the fiscal year. GAAP require NJR to estimate its annual effective tax rate and use this rate to calculate its quarterly tax expense/benefit. The amount of the quarterly adjustment is based on information and assumptions, which are subject to change, and which may have a material impact on quarterly and annual net financial earnings. Factors considered by management in estimating completion of projects during the fiscal year include, but are not limited to, board of directors’ approval, execution of various contracts, including power purchase agreements, construction logistics, permitting and interconnection completion. See the “Forward-Looking Statements” section of this news release for further information regarding the inherent risks associated with solar investments.

The Sunlight Advantage^TM program was announced in January and as of March 31, 2011, 298 leases were executed with 540 leads still outstanding. The 298 leases have an average system size of 7.6 kilowatts and represent a potential capital investment of approximately $9.3 million.

“The Sunlight Advantage^TM helps New Jersey homeowners realize the benefits of solar energy through a simple leasing program with no upfront or maintenance costs,” said Downes. “We’re making renewable energy more affordable and accessible and helping both commercial and residential customers save on their energy bills through our clean energy investments.”

All solar investments qualify NJR for federal investment tax credits when placed in service. In addition, the energy produced will be eligible for Solar Renewable Energy Certificates (SRECs), which can be sold to load serving entities in New Jersey to meet their renewable energy requirements.

• Midstream Assets Continue Growth

Earnings for the first six months of fiscal 2011 at Midstream Assets, the company’s natural gas storage and pipeline segment, were $3.9 million compared with $3.4 million during the same period in 2010. The Midstream Assets segment consists of Steckman Ridge, a 12 Bcf working natural gas storage facility in southwestern Pennsylvania, which contributed $2.4 million, and a 5.53 percent equity investment in Iroquois Pipeline, which contributed $1.5 million.

• NJR Energy Services Second-Quarter Results

Net financial earnings at NJR Energy Services (NJRES), the wholesale energy services subsidiary of NJR, were $19.2 million during the first six months of fiscal 2011, compared with $26 million in the same period last year. Net financial earnings for the second quarter of fiscal 2011 were $16 million compared with $23.5 million in the same period in 2010. The expected decrease in both periods reflects the increased supply of natural gas in the northeast market area which has lessened opportunities to generate margin from the optimization of transportation and storage assets. NJRES is currently expected to contribute between 5 and 10 percent of consolidated net financial earnings in fiscal 2011.

• NJR Home Services Announces Higher Results

Earnings at NJR Home Services, NJR’s appliance service subsidiary, rose 57 percent during the first six months of fiscal 2011 compared to the same period in 2010. In the three months ended March 31, 2011, NJRHS’ earnings improved $837,000, an increase of 77 percent. The increase is due primarily to higher margins from sales and installations as well as sales of the new Premier service contracts, which offer customers more comprehensive coverage for their home appliances. Last year’s three- and six-month earnings also included an after-tax charge of $237,000 associated with Medicare Part D as a result of the Patient Protection and Affordable Care Act enacted in March, 2010.

Webcast Information

NJR will host a live webcast to discuss its financial results today at 9 a.m. ET. A few minutes prior to the webcast, go to www.njliving.com and select “New Jersey Resources” from the top navigation bar. Choose “Investor Relations,” then click just below the microphone under the heading “Latest Webcast” on the Investor Relations home page.

Forward-Looking Statements

This news release contains 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 to differ materially from the company’s expectations include, but are not limited to, weather; economic conditions; NJR dependence on operating subsidiaries; demographic changes in NJNG’s service territory; rate of customer growth; volatility of natural gas commodity prices and its impact on customer usage, NJRES operations and the company’s risk management efforts; changes in rating agency requirements and/or credit ratings and their effect on availability and cost of capital to the company; the impact of volatility in the credit markets that would result in the increased cost and/or limit the availability of credit at NJR to fund and support physical gas inventory purchases and other working capital needs at NJRES, and all other non-regulated subsidiaries, as well as negatively affect cost and access to the commercial paper market and other short-term financing markets by NJNG to allow it to fund its commodity purchases, capital expenditures and meet its short-term obligations as they come; the company’s ability to comply with debt covenants; continued failures in the market for auction rate securities; the impact to the asset values and resulting higher costs and funding obligations of NJR’s pension and post-employment benefit plans as a result of downturns in the financial market, and the impacts associated with the Patient Protection and Affordable Care Act; the ability to maintain effective internal controls; accounting effects and other risks associated with hedging activities and use of derivatives contracts; commercial and wholesale credit risk, including the availability of creditworthy customers and counterparties and liquidity in the wholesale energy trading market; the company’s ability to obtain governmental approvals and/or financing for the construction, development and operation of its non-regulated energy investments; risks associated with our investments in solar energy projects, including the availability of regulatory and tax incentives, logistical risk and potential delays related to construction, permitting, regulatory approvals and electric grid interconnection, the availability of viable projects and NJR’s eligibility for federal investment tax credits (ITCs) and the future market for Solar Renewable Energy Credits (SRECs) that are traded in a competitive marketplace in the state of New Jersey; risks associated with the calculation of NJR’s effective tax rate; risks associated with the management of the company’s joint ventures and partnerships; the level and rate at which costs and expenses are incurred and the extent to which they are allowed to be recovered from customers through the regulatory process in connection with constructing, operating and maintain NJNG’s natural gas transmission and distribution system; dependence on third-party storage and transportation facilities for natural gas supply; operational risks incidental to handling, storing, transporting and providing customers with natural gas; access to adequate supplies of natural gas; the regulatory and pricing policies of federal and state regulatory agencies; the cost of compliance with present and future environmental law, including potential climate change-related legislation; the ultimate outcome of pending regulatory proceedings, the disallowance of recovery of environmental-related expenditures and other regulatory changes; and environmental-related and other litigation and other uncertainties. 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. More detailed information about these factors is set forth under the heading “Risk Factors” in NJR’s filings with the Securities and Exchange Commission (SEC) including its most recent Form 10-K and its Form 10-Q for the quarter ended March 31, 2011.

Non-GAAP Financial Information

This press release includes the non-GAAP measures net financial earnings (losses), financial margin and utility gross margin. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, can be found below. As an indicator of the company’s operating performance, these measures should not be considered an alternative to, or more meaningful than, operating income as determined in accordance with GAAP.

Net financial earnings (losses) and financial margin exclude unrealized gains or losses on derivative instruments related to the company’s unregulated subsidiaries and certain realized gains and losses on derivative instruments related to natural gas that has been placed into storage at NJRES. Volatility associated with the change in value of these financial and physical commodity contracts is reported in the income statement in the current period. In order to manage its business, NJR views its results without the impacts of the unrealized gains and losses, and certain realized gains and losses, caused by changes in value of these financial instruments and physical commodity contracts prior to the completion of the planned transaction because it shows changes in value currently as opposed to when the planned transaction ultimately is settled. NJNG’s utility gross margin represents the results of revenues less natural gas costs, sales and other taxes and regulatory rider expenses, which are key components of the company’s operations that move in relation to each other. Management uses these non-GAAP financial measures as supplemental measures to other GAAP results to provide a more complete understanding of the company’s performance. Management believes these non-GAAP measures are more reflective of the company’s business model, provide transparency to investors and enable period-to-period comparability of financial performance. A reconciliation of all non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, can be found below. For a full discussion of NJR’s non-GAAP financial measures, please see NJR’s most recent Form 10-K, Item 7.

About New Jersey Resources

New Jersey Resources, a Fortune 1000 company, provides safe, reliable and natural gas services and renewable energy including transportation, distribution and asset management in states from the Gulf Coast to the New England regions, including the Mid-Continent region, the West Coast and Canada, while investing in and maintaining an extensive infrastructure to support future growth. With over $2.5 billion in annual revenues, NJR safely and reliably operates and maintains 6,700 miles of natural gas transportation and distribution infrastructure to serve nearly half a million customers; develops and manages a diverse portfolio of 1.6 Bcf/day of transportation capacity and over 59 Bcf of storage capacity; offers low carbon solutions of clean energy through its commercial and residential solar programs, and provides appliance installation, repair and contract service to nearly 150,000 homes and businesses. Additionally, NJR holds investments in midstream assets through equity partnerships including Steckman Ridge and Iroquois. Through Conserve to Preserve®, NJR is helping customers save energy and money by promoting conservation and encouraging efficiency. For more information about NJR, visit www.njliving.com.

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES
NEW JERSEY RESOURCES
A reconciliation of Net income at NJR to net financial earnings, is as follows:
	Three Months Ended						Six Months Ended
	March 31,						March 31,
(Thousands)	2011			2010			2011			2010
Net income	$	63,927		$	74,217		$	88,436		$	126,119
Add:
Unrealized loss (gain) on derivative instruments and related transactions, net of taxes		2,306			(7,845	)		36,710			(11,950	)
Effects of economic hedging related to natural gas, net of taxes		796			(2,361	)		(28,987	)		(22,745	)
Net financial earnings	$	67,029		$	64,011		$	96,159		$	91,424
Weighted Average Shares Outstanding
Basic		41,352			41,418			41,316			41,517
Diluted		41,553			41,726			41,516			41,824
Basic net financial earnings per share	$	1.62		$	1.55		$	2.33		$	2.20
NJR ENERGY SERVICES
The following table is a computation of financial margin at Energy Services:
	Three Months Ended						Six Months Ended
	March 31,						March 31,
(Thousands)	2011			2010			2011			2010
Operating revenues	$	573,075		$	494,889		$	1,003,849		$	842,366
Less: Gas purchases		548,677			434,537			977,992			731,994
Add:
Unrealized loss (gain) on derivative instruments and related transactions		3,598			(15,493	)		58,005			(23,235	)
Effects of economic hedging related to natural gas inventory		1,258			(3,773	)		(45,843	)		(36,886	)
Financial margin	$	29,254		$	41,086		$	38,019		$	50,251
A reconciliation of Operating income at Energy Services, the closest GAAP financial measurement, to the financial margin is as follows:
	Three Months Ended						Six Months Ended
	March 31,						March 31,
(Thousands)	2011			2010			2011			2010
Operating income	$	20,773		$	57,205		$	18,751		$	102,395
Add:
Operation and maintenance expense		3,309			2,745			6,480			6,978
Depreciation and amortization		15			49			31			99
Other taxes		301			353			595			900
Subtotal – Gross margin		24,398			60,352			25,857			110,372
Add:
Unrealized loss (gain) on derivative instruments and related transactions		3,598			(15,493	)		58,005			(23,235	)
Effects of economic hedging related to natural gas inventory		1,258			(3,773	)		(45,843	)		(36,886	)
Financial margin	$	29,254		$	41,086		$	38,019		$	50,251
NJR ENERGY SERVICES (continued)
A reconciliation of Energy Services Net income to net financial earnings, is as follows:
	Three Months Ended						Six Months Ended
	March 31,						March 31,
(Thousands)	2011			2010			2011			2010
Net income	$	12,929		$	35,441		$	11,477		$	63,085
Add:
Unrealized loss (gain) on derivative instruments and related transactions, net of taxes		2,276			(9,563	)		36,678			(14,329	)
Effects of economic hedging related to natural gas, net of taxes		796			(2,361	)		(28,987	)		(22,745	)
Net financial earnings	$	16,001		$	23,517		$	19,168		$	26,011
RETAIL AND OTHER
A reconciliation of Retail and Other Net income to net financial earnings, is as follows:
	Three Months Ended						Six Months Ended
	March 31,						March 31,
(Thousands)	2011			2010			2011			2010
Net (loss)	$	(328	)	$	(3,244	)	$	(488	)	$	(4,206	)
Add:
Unrealized loss on derivative instruments, net of taxes		-			1,748			-			2,251
Net financial (loss)	$	(328	)	$	(1,496	)	$	(488	)	$	(1,955	)

NEW JERSEY RESOURCES
CONSOLIDATED STATEMENTS OF INCOME
	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands, except per share data)	2011		2010		2011		2010
OPERATING REVENUES
Utility	$	433,248	$	430,706	$	723,924	$	689,181
Nonutility		543,739		487,640		966,215		838,711
Total operating revenues		976,987		918,346		1,690,139		1,527,892
OPERATING EXPENSES
Gas purchases
Utility		235,001		276,104		395,450		431,054
Nonutility		548,618		427,273		977,865		721,716
Operation and maintenance		37,896		37,018		75,312		73,309
Regulatory rider expenses		24,304		21,184		41,002		34,857
Depreciation and amortization		8,477		7,931		16,931		15,800
Energy and other taxes		29,489		26,824		50,114		43,759
Total operating expenses		883,785		796,334		1,556,674		1,320,495
OPERATING INCOME		93,202		122,012		133,465		207,397
Other income		805		1,028		1,250		2,147
interest expense, net		5,078		5,291		10,341		10,708
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES		88,929		117,749		124,374		198,836
Income tax provision		28,612		46,485		42,465		78,621
Equity in earnings of affiliates		3,610		2,953		6,527		5,904
NET INCOME	$	63,927	$	74,217	$	88,436	$	126,119
EARNINGS PER COMMON SHARE
BASIC	$	1.55	$	1.79	$	2.14	$	3.04
DILUTED	$	1.54	$	1.78	$	2.13	$	3.02
DIVIDENDS PER COMMON SHARE	$	0.36	$	0.34	$	0.72	$	0.68
AVERAGE SHARES OUTSTANDING
BASIC		41,352		41,418		41,316		41,517
DILUTED		41,553		41,726		41,516		41,824

NEW JERSEY RESOURCES
	Three Months Ended							Six Months Ended
	March 31,							March 31,
(Thousands, except per share data)	2011			2010				2011			2010
Operating Revenues
Natural Gas Distribution	$	433,248		$	438,753			$	723,924		$	697,228
Energy Services		573,075			494,889				1,003,849			842,366
Midstream Assets		-			-				-			-
Clean Energy Ventures		-			-				-			-
Retail and Other		7,826			3,701				15,952			9,745
Sub-total		1,014,149			937,343				1,743,725			1,549,339
Eliminations		(37,162	)		(18,997	)			(53,586	)		(21,447	)
Total	$	976,987		$	918,346			$	1,690,139		$	1,527,892
Operating Income (Loss)
Natural Gas Distribution	$	73,332		$	68,413			$	116,001		$	109,684
Energy Services		20,773			57,205				18,751			102,395
Midstream Assets		(135	)		(256	)			(278	)		(452	)
Clean Energy Ventures		(898	)		-				(1,479	)		-
Retail and Other		(789	)		(4,420	)			(1,376	)		(6,277	)
Sub-total		92,283			120,942				131,619			205,350
Eliminations		919			1,070				1,846			2,047
Total	$	93,202		$	122,012			$	133,465		$	207,397
Equity in Earnings of Affiliates
Midstream Assets	$	4,360		$	3,763			$	7,980		$	7,723
Eliminations		(750	)		(810	)			(1,453	)		(1,819	)
Total	$	3,610		$	2,953			$	6,527		$	5,904
Net Income (Loss)
Natural Gas Distribution	$	44,040		$	40,476			$	68,396		$	63,978
Energy Services		12,929			35,441				11,477			63,085
Midstream Assets		2,145			1,514				3,858			3,390
Clean Energy Ventures		5,171			-				5,225			-
Retail and Other		(328	)		(3,244	)			(488	)		(4,206	)
Sub-total		63,957			74,187				88,468			126,247
Eliminations		(30	)		30				(32	)		(128	)
Total	$	63,927		$	74,217			$	88,436		$	126,119
Net Financial Earnings (Loss)
Natural Gas Distribution	$	44,040		$	40,476			$	68,396		$	63,978
Energy Services		16,001			23,517				19,168			26,011
Midstream Assets		2,145			1,514				3,858			3,390
Clean Energy Ventures		5,171			-				5,225			-
Retail and Other		(328	)		(1,496	)			(488	)		(1,955	)
Total	$	67,029		$	64,011			$	96,159		$	91,424
Throughput (Bcf)
NJNG, Core Customers		31.4			30.0				53.2			49.1
NJNG, Off System/Capacity Management		28.4			22.0				55.7			44.1
NJRES Fuel Mgmt. and Wholesale Sales		230.6			164.4				230.6			164.4
Total		290.4			216.4				339.5			257.6
Common Stock Data
Yield at March 31		3.4	%		3.6	%			3.4	%		3.6	%
Market Price
High	$	44.09		$	38.17			$	44.10		$	38.55
Low	$	40.24		$	33.49			$	38.94		$	33.49
Close at March 31	$	42.95		$	37.56			$	42.95		$	37.56
Shares Out. at March 31		41,311			41,290				41,311			41,290
Market Cap. at March 31	$	1,774,307		$	1,550,852			$	1,774,307		$	1,550,852
NATURAL GAS DISTRIBUTION
	Three Months Ended							Six Months Ended
(Unaudited)	March 31,							March 31,
(Thousands, except customer & weather data)	2011			2010				2011			2010
Utility Gross Margin
Operating revenues	$	433,248		$	438,753			$	723,924		$	697,228
Less:
Gas purchases		272,948			288,814				450,599			444,088
Energy and other taxes		27,296			24,685				45,778			39,217
Regulatory rider expense		24,304			21,208				41,002			34,920
Total Utility Gross Margin	$	108,700		$	104,046			$	186,545		$	179,003
Utility Gross Margin and Operating Income
Residential	$	72,711		$	71,878				123,557		$	121,828
Commercial, Industrial & Other		16,903			16,681				29,893			29,672
Firm Transportation		15,571			12,466				26,766			21,960
Total Firm Margin		105,185			101,025				180,216			173,460
Interruptible		84			78				174			162
Total System Margin		105,269			101,103				180,390			173,622
Off System/Capacity Management/FRM/Storage Incentive		3,431			2,943				6,155			5,381
Total Utility Gross Margin		108,700			104,046				186,545			179,003
Operation and maintenance expense		26,069			26,817				51,943			51,695
Depreciation and amortization		8,235			7,722				16,458			15,382
Other taxes not reflected in gross margin		1,064			1,094				2,143			2,242
Operating Income	$	73,332		$	68,413			$	116,001		$	109,684
Throughput (Bcf)
Residential		20.9			20.5				34.6			32.9
Commercial, Industrial & Other		4			4.1				6.7			6.7
Firm Transportation		5.3			4.4				9.3			7.7
Total Firm Throughput		30.2			29.0				50.6			47.3
Interruptible		1.2			1.0				2.6			1.8
Total System Throughput		31.4			30.0				53.2			49.1
Off System/Capacity Management		28.4			22.0				55.7			44.1
Total Throughput		59.8			52.0				108.9			93.2
Customers
Residential		430,437			437,759				430,437			437,759
Commercial, Industrial & Other		27,246			28,303				27,246			28,303
Firm Transportation		37,103			24,094				37,103			24,094
Total Firm Customers		494,786			490,156				494,786			490,156
Interruptible		42			45				42			45
Total System Customers		494,828			490,201				494,828			490,201
Off System/Capacity Management*		43			34				43			34
Total Customers		494,871			490,235				494,871			490,235
*The number of customers represents those active during the last month of the period.
Degree Days
Actual		2,510			2,424				4,273			4,000
Normal		2,494			2,481				4,130			4,145
Percent of Normal		100.6	%		97.7	%			103.5	%		96.5	%
ENERGY SERVICES
	Three Months Ended							Six Months Ended
(Unaudited)	March 31,							March 31,
(Thousands, except customer)	2011			2010				2011			2010
Operating Income
Operating Revenues	$	573,075		$	494,889			$	1,003,849		$	842,366
Gas Purchases		548,677			434,537				977,992			731,994
Gross Margin		24,398			60,352				25,857			110,372
Operation and maintenance expense		3,309			2,745				6,480			6,978
Depreciation and amortization		15			49				31			99
Energy and other taxes		301			353				595			900
Operating Income	$	20,773		$	57,205			$	18,751		$	102,395
Net Income	$	12,929		$	35,441			$	11,477		$	63,085
Financial Margin	$	29,254		$	41,086			$	38,019		$	50,251
Net Financial Earnings	$	16,001		$	23,517			$	19,168		$	26,011
Gas Sold and Managed (Bcf)		121.0			85.0				230.6			164.4
MIDSTREAM ASSETS
Equity in Earnings of Affiliates	$	4,360		$	3,763			$	7,980		$	7,723
Operation and Maintenance	$	133		$	254			$	275		$	449
Interest Expense	$	817		$	827			$	1,625		$	1,657
Net Income	$	2,145		$	1,514			$	3,858		$	3,390
CLEAN ENERGY VENTURES
Operating Revenues	$	-		$	-		#	$	-		$	-
Operating (Loss)	$	(898	)	$	-			$	(1,479	)	$	-
Net Income ^(1)	$	5,171		$	-			$	5,225		$	-
(1) Includes a $3.5 million and $3.9 million effective tax rate adjustment for the three and six months ended March 31, 2011, respectively.
RETAIL AND OTHER
Operating Revenues	$	7,826		$	3,701			$	15,952		$	9,745
Operating (Loss)	$	(789	)	$	(4,420	)		$	(1,376	)	$	(6,277	)
Net (Loss)	$	(328	)	$	(3,244	)		$	(488	)	$	(4,206	)
Net Financial (Loss)	$	(328	)	$	(1,496	)		$	(488	)	$	(1,955	)
Total Customers at March 31		135,291			145,683				135,291			145,683