TacticScaleWhat New Jersey Resources Does & How It Makes Money (NJR)
Updated October 2026 · reflects New Jersey Resources's latest reported financials
New Jersey natural gas utility with solar and energy services businesses. Most of its earnings come from regulated gas distribution rates charged to New Jersey customers, plus off-system sales and capacity release.
How New Jersey Resources makes money
Most of its earnings come from regulated gas distribution rates charged to New Jersey customers, plus off-system sales and capacity release. The rest comes from selling power from its solar projects, wholesale and retail energy trading and management, storage and transportation assets, and fees for home services.
What New Jersey Resources does
New Jersey Resources Corporation (NJR), founded in 1922 and headquartered in Wall, New Jersey, is an energy services holding company built around a regulated natural gas utility. The utility serves residential and commercial customers in Burlington, Middlesex, Monmouth, Morris, Ocean and Sussex counties. It also manages capacity and storage and takes part in off-system sales and capacity release markets. Outside the utility, NJR runs three other segments. Clean Energy Ventures invests in and operates commercial and residential solar in New Jersey, Rhode Island, New York, Connecticut, Michigan, Indiana and Pennsylvania. Energy Services holds natural gas transportation and storage contracts and provides wholesale, retail and energy management services. Storage and Transportation invests in energy infrastructure ventures. NJR also offers home services such as HVAC, appliance, generator and plumbing work, and holds commercial real estate. Together these give it a regulated utility base plus exposure to clean energy and gas markets.
Products & services
- Regulated natural gas distribution (New Jersey)
- Commercial and residential solar projects
- Wholesale and retail energy services
- Natural gas storage and transportation capacity
- Home services (HVAC, plumbing, appliances, generators)
What is New Jersey Resources worth?
On an owner-earnings DCF, New Jersey Resources's most-likely value is about $37 versus a recent price near $51 (29% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$22) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
⚠ High leverage — net debt is 10.3× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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