Form 4: New Jersey Resources Corp Executive Migliaccio Reports Stock Transactions

Senior VP and COO of NJNG, Patrick J. Migliaccio, reports acquisition and disposal of New Jersey Resources Corp stock and phantom stock units.

Summary

• Patrick J. Migliaccio, Senior VP and COO of NJNG, reported transactions involving New Jersey Resources Corp (NJR) stock on November 6, 2024.
• Migliaccio acquired 5,742 shares of common stock at $46.94 per share, representing a grant of restricted stock units (RSUs) that vest in equal installments on October 15, 2025, 2026, and 2027.
• He also acquired 5,804 shares of common stock at $46.94 per share, representing performance share units that vested at 124% of target after a 36-month period.
• 2,859 shares were withheld to cover taxes due upon the vesting of performance share units at $46.94 per share.
• Migliaccio also acquired 7,077 phantom stock units and disposed of 167 phantom stock units.
• The total shares beneficially owned following the reported transactions is 42,010.991 shares of common stock and 14,121.196 phantom stock units.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The executive is acquiring shares, which suggests confidence, and performance share units vested above target. However, some shares were withheld for taxes.

Positives

• The acquisition of shares through RSUs and performance share units indicates confidence in the company's future performance.
• Vesting of performance share units at 124% of target suggests the company exceeded its performance goals.

Negatives

• The withholding of 2,859 shares to cover taxes indicates a taxable event, which could be seen as a minor negative from a cash flow perspective for the executive.

Risks

• The value of the acquired stock is subject to market fluctuations, which could impact the overall value of Migliaccio's holdings.
• Future performance may not meet the targets required for performance share units to vest at the same rate.

Future Outlook

The document does not contain explicit forward-looking statements, but the vesting schedules for RSUs and the deferred compensation plan indicate a long-term commitment.

Industry Context

Insider transactions are common and closely monitored in the energy sector. This filing provides transparency into the executive's holdings and recent transactions, which can be compared to similar filings from peers.

Comparison to Industry Standards

• Comparing the vesting schedules and performance metrics to those of executives at peer companies like South Jersey Industries or UGI Corporation would provide context on the competitiveness of NJR's compensation structure.
• The vesting of performance share units at 124% could be compared to similar metrics at other utilities to assess NJR's relative performance.
• Reviewing the deferred compensation plans of similar companies would provide context on the terms of NJR's plan.

Stakeholder Impact

• The transactions provide transparency to shareholders regarding executive compensation and alignment with company performance.
• Employees may view the vesting of performance share units as a positive sign of company success.

Key Dates