10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                           

Commission File Number: 001-08359

NEW JERSEY RESOURCES CORPORATION

(Exact name of registrant as specified in its charter)
New Jersey					22-2376465
(State or other jurisdiction of incorporation or organization)				(I.R.S. Employer Identification Number)
1415 Wyckoff Road					(732)	938‑1480
Wall	New Jersey	07719		(Registrant's telephone number, including area code)
(Address of principal executive offices)
Securities registered pursuant to Section 12 (b) of the Act:
Title of each class			Trading symbol(s)		Name of each exchange on which registered
Common Stock - $2.50 Par Value			NJR		New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes: ☒            No: ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes: ☒            No: ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes: ☐            No: ☒

The number of shares outstanding of $2.50 par value Common Stock as of May 3, 2024 was 98,822,278.

New Jersey Resources Corporation

TABLE OF CONTENTS

			Page
Glossary of Key Terms			1
Information Concerning Forward-Looking Statements			3
PART I. FINANCIAL INFORMATION
	ITEM 1.	Unaudited Condensed Consolidated Financial Statements	4
		Notes to Unaudited Condensed Consolidated Financial Statements	9
		Note 1. Nature of the Business	9
		Note 2. Summary of Significant Accounting Policies	9
		Note 3. Revenue	11
		Note 4. Regulation	16
		Note 5. Derivative Instruments	18
		Note 6. Fair Value	22
		Note 7. Investments in Equity Investees	24
		Note 8. Earnings Per Share	24
		Note 9. Debt	25
		Note 10. Employee Benefit Plans	26
		Note 11. Income Taxes	28
		Note 12. Leases	29
		Note 13. Commitments and Contingent Liabilities	31
		Note 14. Reporting Segment and Other Operations Data	32
		Note 15. Related Party Transactions	35
	ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	37
		Natural Gas Distribution Segment	40
		Clean Energy Ventures Segment	48
		Energy Services Segment	50
		Storage and Transportation Segment	55
		Home Services and Other Business Operations	56
		Liquidity and Capital Resources	56
	ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	63
	ITEM 4.	Controls and Procedures	65
PART II. OTHER INFORMATION
	ITEM 1.	Legal Proceedings	67
	ITEM 1A.	Risk Factors	67
	ITEM 2.	Unregistered Sale of Equity Securities and Use of Proceeds	67
	ITEM 5.	Other Information	67
	ITEM 6.	Exhibits	68
		Signatures	69

New Jersey Resources Corporation

GLOSSARY OF KEY TERMS                                                                                                                                                       

Adelphia	Adelphia Gateway, LLC
AFUDC	Allowance for Funds Used During Construction
AMA	Asset Management Agreement
ASC	Accounting Standards Codification
ASU	Accounting Standards Update
B	Billion
Bcf	Billion Cubic Feet
BGSS	Basic Gas Supply Service
BPU	New Jersey Board of Public Utilities
CIP	Conservation Incentive Program
Clean Energy Ventures or CEV	NJR Clean Energy Ventures Corporation or our Clean Energy Ventures segment
CME	Chicago Mercantile Exchange
DRP	NJR Direct Stock Purchase and Dividend Reinvestment Plan
Energy Services or ES	NJR Energy Services Company, LLC or our Energy Services segment
Exchange Act	Securities Exchange Act of 1934, as amended
FASB	Financial Accounting Standards Board
FCM	Futures Commission Merchant
FERC	Federal Energy Regulatory Commission
Financial Margin	A non-GAAP financial measure, which represents revenues earned from the sale of natural gas less costs of natural gas sold including any transportation and storage costs, and excludes certain operations and maintenance expense and depreciation and amortization, as well as any accounting impact from the change in the fair value of certain derivative instruments
Fitch	Fitch Ratings Company
FMB	First Mortgage Bond
GAAP	Generally Accepted Accounting Principles of the United States
Home Services and Other or HSO	Home Services and Other Operations
ICE	Intercontinental Exchange
IIP	Infrastructure Investment Program
ISDA	The International Swaps and Derivatives Association
ITC	Federal Investment Tax Credit
Leaf River	Leaf River Energy Center LLC
M	Million
MGP	Manufactured Gas Plant
MMBtu	Million British Thermal Units
Moody's	Moody's Investors Service, Inc.
Mortgage Indenture	The Amended and Restated Indenture of Mortgage, Deed of Trust and Security Agreement between NJNG and U.S. Bank National Association dated as of September 1, 2014, as amended
MW	Megawatts
MWh	Megawatt Hour
NAESB	The North American Energy Standards Board
NFE	Net Financial Earnings
NJCEP	New Jersey's Clean Energy Program
NJDEP	New Jersey Department of Environmental Protection
NJNG	New Jersey Natural Gas Company or our Natural Gas Distribution segment
NJNG Credit Facility	The $250M unsecured committed credit facility expiring in September 2027

1

New Jersey Resources Corporation

GLOSSARY OF KEY TERMS (cont.)
NJR Credit Facility	The $650M unsecured committed credit facility expiring in September 2027
NJR or The Company	New Jersey Resources Corporation
NJR Retail	NJR Retail Company
NJRHS	NJR Home Services Company
Non-GAAP	Not in accordance with Generally Accepted Accounting Principles of the United States
NPNS	Normal Purchase/Normal Sale
NYMEX	New York Mercantile Exchange
OCI	Other Comprehensive Income
O&M	Operation and Maintenance expenses
OPEB	Other Postemployment Benefit Plans
PPA	Power Purchase Agreement
RAC	Remediation Adjustment Clause
REC	Renewable Energy Certificate
SAVEGREEN	The SAVEGREEN Project®
SBC	Societal Benefits Charge
SG&A	Selling, General and Administrative expenses
SREC	Solar Renewable Energy Certificate
Steckman Ridge	Collectively, Steckman Ridge GP, LLC and Steckman Ridge, LP
Storage and Transportation or S&T	Storage and Transportation segment
TETCO	Texas Eastern Transmission
TREC	Transition Renewable Energy Certificate
Trustee	U.S. Bank National Association
U.S.	The United States of America
USF	Universal Service Fund
Utility Gross Margin	A non-GAAP financial measure, which represents operating revenues less natural gas purchases, sales tax, and regulatory rider expense, and excludes certain operations and maintenance expense and depreciation and amortization

2

New Jersey Resources Corporation

INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS                                                                           

Certain statements contained in this report, including, without limitation, statements as to management expectations, assumptions and beliefs presented in Part I, Item 2. “Management's Discussion and Analysis of Financial Condition and Results of Operations,” Part I, Item 3. “Quantitative and Qualitative Disclosures About Market Risk,” Part II, Item 1. “Legal Proceedings” and in the notes to the financial statements are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Exchange Act and the Private Securities Litigation Reform Act of 1995. Forward-looking statements can also be identified by the use of forward-looking terminology such as “anticipate,” “estimate,” “may,” “could,” “might,” “intend,” “expect,” “believe,” “will” “plan,” “should” or comparable terminology and are made based upon management's current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect on us. There can be no assurance that future developments will be in accordance with management's expectations, assumptions or beliefs, or that the effect of future developments on us will be those anticipated by management.

We caution readers that the expectations, assumptions and beliefs that form the basis for forward-looking statements regarding customer growth, customer usage, qualifications for ITCs, RECs, future rate case proceedings, financial condition, results of operations, cash flows, capital requirements, future capital expenditures, market risk, effective tax rate and other matters for fiscal 2024 and thereafter include many factors that are beyond our ability to control or estimate precisely, such as estimates of future market conditions, the behavior of other market participants and changes in the debt and equity capital markets. The factors that could cause actual results to differ materially from our expectations, assumptions and beliefs include, but are not limited to, those discussed in Item 1A. Risk Factors of our Annual Report on Form 10-K for the fiscal year ended September 30, 2023, as well as the following, which are neither presented in order of importance nor weighted:

•our ability to obtain governmental and regulatory approvals, permits, certificates, land-use rights, electric grid connection (in the case of clean energy projects) and/or financing for the construction, development and operation of our unregulated energy investments, pipeline transportation systems and NJNG and S&T infrastructure projects, in a timely manner;

•our ability to address concerns over long-term climate change;

•risks associated with our investments in clean energy projects, including the availability of regulatory incentives and federal tax credits, the availability of viable projects, our eligibility for ITCs, the future market for RECs and electricity prices, our ability to complete construction of the projects and operational risks related to projects in service;

•risks associated with acquisitions and the related integration of acquired assets with our current operations;

•our ability to comply with current and future regulatory requirements;

•risks associated with our pipeline of projects and timely completion of such projects;

•commercial and wholesale credit risks, including the availability of creditworthy customers and counterparties, and liquidity in the wholesale energy trading market;

•volatility of natural gas and other commodity prices and their impact on NJNG customer usage, NJNG’s BGSS incentive programs, ES operations and our risk management efforts;

•the performance of our subsidiaries;

•access to adequate supplies of natural gas and dependence on third-party S&T facilities for natural gas supply;

•the level and rate at which NJNG’s costs and expenses are incurred and the extent to which they are approved for recovery from customers through the regulatory process, including through future base rate case filings;

•impacts of inflation, including the current inflationary environment, and increased natural gas costs;

•the impact of a disallowance of recovery of environmental-related expenditures and other regulatory changes;

•operating risks incidental to handling, storing, transporting and providing customers with natural gas;

•demographic changes in our service territory and their effect on our customer growth;

•changes in rating agency requirements and/or credit ratings and their effect on availability and cost of capital to the Company;

•the impact of events causing volatility in the equity and credit markets on our access to capital, including natural disasters, pandemic illness and other extreme events and risks, political and economic disruption and uncertainty related to Russia’s military invasion of Ukraine, the Israel-Hamas War, and the international community’s responses;

•risks of prolonged constriction of credit availability in the markets and our ability to secure short-term financing;

•our ability to comply with debt covenants;

•the results of legal or administrative proceedings with respect to claims, rates, environmental issues, natural gas cost prudence reviews and other matters;

•risks related to cyberattacks, including ransomware, terrorism, other malicious acts against, or failure of, information technology systems;

•the impact to the asset values and resulting higher costs and funding obligations of our pension and postemployment benefit plans as a result of potential downturns in the financial markets, including, but not limited to, inflationary pressures, recessionary pressures, or rising interest rates, and/or reductions in bond yields;

•accounting effects and other risks associated with hedging activities and use of derivatives contracts;

•our ability to optimize our physical assets;

•weather and economic conditions, including those changes in weather and weather patterns that could be attributable to climate change;

•the costs of compliance with present and future environmental laws, potential climate change-related legislation or any legislation resulting from the 2019 New Jersey Energy Master Plan, as well as future executive orders and the outcomes of regulatory proceedings concerning natural gas;

•uncertainties related to litigation, regulatory, administrative or environmental proceedings;

•changes to tax laws and regulations, including our ability to optimize those changes brought about by the passage of the Inflation Reduction Act of 2022;

•any potential need to record a valuation allowance for our deferred tax assets;

•the delay or prevention of a favorable transaction due to changes in control provisions or laws;

•risks related to our employee workforce and succession planning;

•risks associated with the management of our joint ventures and partnerships; and

•risks associated with keeping pace with technological change, including, but not limited to, cloud computing and generative artificial intelligence.

Forward-looking statements made in this report apply only as of the date of this report. While we periodically reassess material trends and uncertainties affecting our results of operations and financial condition in connection with the preparation of management's discussion and analysis of results of operations and financial condition contained in our Quarterly and Annual Reports on Form 10-Q and Form 10-K, respectively, we do not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.

3

New Jersey Resources Corporation

Part I

ITEM 1. FINANCIAL STATEMENTS                                                                                                                                          

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands, except per share data)	2024		2023		2024		2023
OPERATING REVENUES
Utility	$	462,863	$	400,500	$	755,956	$	757,909
Nonutility	195,050		243,527		369,167		609,685
Total operating revenues	657,913		644,027		1,125,123		1,367,594
OPERATING EXPENSES
Natural gas purchases:
Utility	204,347		156,370		320,467		338,816
Nonutility	105,018		160,364		164,495		392,434
Related parties	1,799		1,770		3,678		3,597
Operation and maintenance	107,223		99,095		201,662		178,596
Regulatory rider expenses	29,229		23,154		48,418		41,405
Depreciation and amortization	40,075		38,090		80,362		74,773
Total operating expenses	487,691		478,843		819,082		1,029,621
OPERATING INCOME	170,222		165,184		306,041		337,973
Other income, net	15,420		4,779		21,761		9,434
Interest expense, net of capitalized interest	31,621		30,261		63,094		59,752
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES	154,021		139,702		264,708		287,655
Income tax provision	33,947		30,586		56,883		63,564
Equity in earnings of affiliates	738		1,131		2,398		2,077
NET INCOME	$	120,812	$	110,247	$	210,223	$	226,168
EARNINGS PER COMMON SHARE
Basic	$1.23		$1.14		$2.14		$2.34
Diluted	$1.22		$1.13		$2.13		$2.32
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	98,377		96,893		98,123		96,689
Diluted	99,102		97,556		98,839		97,346

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands)	2024		2023		2024		2023
Net income	$	120,812	$	110,247	$	210,223	$	226,168
Other comprehensive income, net of tax
Reclassifications of losses to net income on derivatives designated as hedging instruments, net of tax of $(80), $(80), $(159) and $(159), respectively	262		264		526		527
Adjustment to postemployment benefit obligation, net of tax of $(2,908), $(13), $(2,948) and $(25), respectively	9,624		41		9,755		82
Other comprehensive income, net of tax	$	9,886	$	305	$	10,281	$	609
Comprehensive income	$	130,698	$	110,552	$	220,504	$	226,777

See Notes to Unaudited Condensed Consolidated Financial Statements

4

New Jersey Resources Corporation

Part I

ITEM 1. FINANCIAL STATEMENTS (Continued)                                                                                                                    

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Six Months Ended
	March 31,
(Thousands)	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	210,223	$	226,168
Adjustments to reconcile net income to cash flows from operating activities
Unrealized loss (gain) on derivative instruments	20,057		(17,532)
Depreciation and amortization	80,362		74,773
Amortization of acquired wholesale energy contracts	260		1,283
Allowance for equity used during construction	(3,572)		(2,801)
Allowance for doubtful accounts	(24)		(395)
Non cash lease expense	2,130		1,848
Deferred income taxes	49,301		36,072
Equivalent value of ITCs recognized on equipment financing	(10,605)		(899)
Manufactured gas plant remediation costs	(12,577)		(4,362)
Cost of removal - asset retirement obligations	(763)		(644)
Contributions to postemployment benefit plans	(2,191)		(634)
Taxes related to stock-based compensation	1,186		554
Changes in:
Components of working capital	(3,021)		(42,519)
Other noncurrent assets and liabilities	7,836		72,209
Cash flows from operating activities	338,602		343,121
CASH FLOWS USED IN INVESTING ACTIVITIES
Expenditures for:
Utility plant	(160,937)		(157,914)
Solar equipment	(37,083)		(57,699)
Storage and Transportation and other	(21,846)		(30,741)
Cost of removal	(17,436)		(16,757)
Distribution from equity investees in excess of equity in earnings	2,284		1,374
Cash flows used in investing activities	(235,018)		(261,737)
CASH FLOWS USED IN FINANCING ACTIVITIES
Proceeds from long-term debt	50,000		175,000
Payments of long-term debt	(82,790)		(10,534)
Payments of term loan	—		(150,000)
Payments of short-term debt, net	(55,950)		(86,300)
Proceeds from sale leaseback transactions - solar	24,394		61,808
Proceeds from sale leaseback transactions - natural gas meters	8,814		8,441
Payments of common stock dividends	(82,156)		(75,200)
Proceeds from waiver discount issuance of common stock	35,838		17,919
Proceeds from issuance of common stock - DRP	7,522		7,610
Tax withholding payments related to net settled stock compensation	(5,027)		(4,024)
Cash flows used in financing activities	(99,355)		(55,280)
Change in cash, cash equivalents and restricted cash	4,229		26,104
Cash, cash equivalents and restricted cash at beginning of period	1,517		1,452
Cash, cash equivalents and restricted cash at end of period	$	5,746	$	27,556
CHANGES IN COMPONENTS OF WORKING CAPITAL
Receivables	$	(144,321)	$	(8,877)
Inventories	115,166		185,444
Recovery of natural gas costs	(3,853)		(28,825)
Natural gas purchases payable	13,178		(159,016)
Natural gas purchases payable - related parties	—		5
Deferred revenue, current	48,294		1,587
Accounts payable and other	(15,888)		(24,095)
Prepaid expenses	(6,350)		(6,493)
Prepaid and accrued taxes	30,705		51,591
Restricted broker margin accounts	(15,015)		(43,414)
Customers' credit balances and deposits	(20,032)		(7,725)
Other current assets and liabilities	(4,905)		(2,701)
Total	$	(3,021)	$	(42,519)
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
Cash paid for:
Interest (net of amounts capitalized)	$	60,256	$	57,622
Income taxes	$	6,699	$	1,967
Accrued capital expenditures	$	17,513	$	24,318
See Notes to Unaudited Condensed Consolidated Financial Statements

5

New Jersey Resources Corporation

Part I

ITEM 1. FINANCIAL STATEMENTS (Continued)                                                                                                                    

CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS

	(Unaudited)
(Thousands)	March 31, 2024		September 30, 2023
PROPERTY, PLANT AND EQUIPMENT
Utility plant, at cost	$	4,012,235	$	3,843,037
Construction work in progress	223,421		237,428
Nonutility plant and equipment, at cost	1,791,100		1,767,306
Construction work in progress	171,396		142,768
Total property, plant and equipment	6,198,152		5,990,539
Accumulated depreciation and amortization, utility plant	(753,750)		(714,087)
Accumulated depreciation and amortization, nonutility plant and equipment	(278,854)		(254,397)
Property, plant and equipment, net	5,165,548		5,022,055
CURRENT ASSETS
Cash and cash equivalents	5,036		954
Customer accounts receivable
Billed	185,069		97,540
Unbilled revenues	74,456		19,100
Allowance for doubtful accounts	(9,576)		(11,036)
Regulatory assets	93,887		73,587
Natural gas in storage, at average cost	80,996		199,501
Materials and supplies, at average cost	30,361		27,022
Prepaid expenses	16,091		9,741
Prepaid taxes	18,299		43,046
Derivatives, at fair value	14,056		30,755
Restricted broker margin accounts	19,310		20,796
Other current assets	25,726		21,071
Total current assets	553,711		532,077
NONCURRENT ASSETS
Investments in equity method investees	101,778		104,134
Regulatory assets	535,104		584,830
Operating lease assets	177,176		175,740
Derivatives, at fair value	910		1,564
Software costs	9,734		8,375
Deferred income taxes	22,848		28,383
Postemployment employee benefit assets	18,618		18,684
Other noncurrent assets	61,950		61,654
Total noncurrent assets	928,118		983,364
Total assets	$	6,647,377	$	6,537,496

See Notes to Unaudited Condensed Consolidated Financial Statements

6

New Jersey Resources Corporation

Part I

ITEM 1. FINANCIAL STATEMENTS (Continued)                                                                                                                    

CAPITALIZATION AND LIABILITIES

	(Unaudited)
(Thousands, except share data)	March 31, 2024		September 30, 2023
CAPITALIZATION
Common stock, $2.50 par value; authorized 150,000,000 shares; outstanding shares March 31, 2024 — 98,744,915; September 30, 2023 — 97,584,455	$	246,367	$	243,458
Premium on common stock	604,009		558,654
Accumulated other comprehensive income (loss), net of tax	322		(9,959)
Treasury stock at cost and other; shares March 31, 2024 — 16,302; September 30, 2023 — 13,041	22,936		20,748
Retained earnings	1,305,591		1,177,834
Common stock equity	2,179,225		1,990,735
Long-term debt	2,726,221		2,768,017
Total capitalization	4,905,446		4,758,752
CURRENT LIABILITIES
Current maturities of long-term debt	148,375		116,155
Short-term debt	196,150		252,100
Natural gas purchases payable	64,455		51,277
Natural gas purchases payable to related parties	859		859
Deferred revenue	109,698		61,404
Accounts payable and other	127,159		151,790
Dividends payable	41,290		40,981
Accrued taxes	16,048		10,090
Regulatory liabilities	33,163		32,287
New Jersey Clean Energy Program	6,827		15,804
Derivatives, at fair value	10,725		16,145
Operating lease liabilities	4,780		4,772
Restricted broker margin accounts	4,689		8,029
Customers' credit balances and deposits	24,878		44,910
Total current liabilities	789,096		806,603
NONCURRENT LIABILITIES
Deferred income taxes	330,805		285,427
Deferred investment tax credits	2,295		2,434
Deferred revenue	612		659
Derivatives, at fair value	13,791		7,967
Manufactured gas plant remediation	157,813		169,390
Postemployment employee benefit liability	42,333		102,528
Regulatory liabilities	178,276		180,458
Operating lease liabilities	150,971		148,023
Asset retirement obligations	62,817		61,993
Other noncurrent liabilities	13,122		13,262
Total noncurrent liabilities	952,835		972,141
Commitments and contingent liabilities (Note 13)
Total capitalization and liabilities	$	6,647,377	$	6,537,496

See Notes to Unaudited Condensed Consolidated Financial Statements

7

New Jersey Resources Corporation

Part I

ITEM 1. FINANCIAL STATEMENTS (Continued)                                                                                                                    

CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY (Unaudited)

(Thousands)	Number of Shares	Common Stock		Premium on Common Stock		Accumulated Other Comprehensive (Loss) Income			Treasury Stock and Other		Retained Earnings		Total
Balance as of September 30, 2023	97,584	$	243,458	$	558,654		$	(9,959)	$	20,748	$	1,177,834	$	1,990,735
Net income	—	—		—			—		—		89,411		89,411
Other comprehensive income	—	—		—			395		—		—		395
Common stock issued:
Incentive compensation plan	116	290		3,451			—		—		—		3,741
Dividend reinvestment plan	94	236		3,552			—		—		—		3,788
Waiver discount	410	1,025		16,894			—		—		—		17,919
Cash dividend declared ($.42 per share)	—	—		—			—		—		(41,176)		(41,176)
Treasury stock and other	(2)	—		—			—		1,388		—		1,388
Balance as of December 31, 2023	98,202	$	245,009	$	582,551		$	(9,564)	$	22,136	$	1,226,069	$	2,066,201
Net income	—	—		—			—		—		120,812		120,812
Other comprehensive income	—	—		—			9,886		—		—		9,886
Common stock issued:
Incentive compensation plan	25	64		1,178			—		—		—		1,242
Dividend reinvestment plan	84	209		3,446			—		—		—		3,655
Waiver discount	435	1,085		16,834			—		—		—		17,919
Cash dividend declared ($.42 per share)	—	—		—			—		—		(41,290)		(41,290)
Treasury stock and other	(1)	—		—			—		800		—		800
Balance as of March 31, 2024	98,745	$	246,367	$	604,009		$	322	$	22,936	$	1,305,591	$	2,179,225

(Thousands)	Number of Shares	Common Stock		Premium on Common Stock		Accumulated Other Comprehensive (Loss) Income			Treasury Stock and Other		Retained Earnings		Total
Balance as of September 30, 2022	96,250	$	241,616	$	519,697		$	(4,826)	$	(6,805)	$	1,067,528	$	1,817,210
Net income	—	—		—			—		—		115,921		115,921
Other comprehensive income	—	—		—			304		—		—		304
Common stock issued:
Incentive compensation plan	92	229		3,243			—		—		—		3,472
Dividend reinvestment plan (1)	93	—		437			—		3,429		—		3,866
Waiver discount	368	—		4,469			—		13,450		—		17,919
Cash dividend declared ($.39 per share)	—	—		—			—		—		(37,665)		(37,665)
Treasury stock and other	—	—		—			—		1,768		—		1,768
Balance as of December 31, 2022	96,803	$	241,845	$	527,846		$	(4,522)	$	11,842	$	1,145,784	$	1,922,795
Net income	—	—		—			—		—		110,247		110,247
Other comprehensive income	—	—		—			305		—		—		305
Common stock issued:
Incentive plan	29	74		1,096			—		—		—		1,170
Dividend reinvestment plan	77	—		877			—		2,794		—		3,671
Cash dividend declared ($.39 per share)	—	—		—			—		—		(37,791)		(37,791)
Treasury stock and other	(8)	—		—			—		439		—		439
Balance as of March 31, 2023	96,901	$	241,919	$	529,819		$	(4,217)	$	15,075	$	1,218,240	$	2,000,836

(1)Certain shares sold through the DRP issued from treasury stock are at average cost, which may differ from the actual market price paid.

8

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS                                               

1. NATURE OF THE BUSINESS

The Company provides regulated natural gas distribution services, transmission and storage services and operates certain unregulated businesses primarily through the following:

NJNG provides natural gas utility service to approximately 581,600 customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean and Sussex counties in New Jersey and is subject to rate regulation by the BPU. NJNG comprises the Natural Gas Distribution segment.

Clean Energy Ventures, the Company's clean energy subsidiary, comprises the CEV segment and invests in, owns and operates clean energy projects, including commercial and residential solar installations located in New Jersey, Rhode Island, New York, Connecticut, Michigan and Indiana.

Energy Services comprises the ES segment. ES maintains and transacts around a portfolio of natural gas transportation and storage capacity contracts and provides physical wholesale energy, retail energy and energy management services in the U.S. and Canada.

NJR Midstream Holdings Corporation, which comprises the S&T segment, invests in energy-related ventures through its subsidiaries. The Company operates natural gas storage and transmission assets through the wholly-owned subsidiaries of Leaf River and Adelphia, and is subject to rate regulation by FERC. The Company holds a 50% combined ownership interest in Steckman Ridge, located in Pennsylvania which is accounted for under the equity method of accounting.

NJR Retail Holdings Corporation has one principal subsidiary, NJRHS, which provides heating, central air conditioning, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey. NJRHS is included in HSO.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared by the Company in accordance with the rules and regulations of the U.S. Securities and Exchange Commission and GAAP. The September 30, 2023 Balance Sheet data is derived from the audited financial statements of the Company. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's 2023 Annual Report on Form 10-K.

The Unaudited Condensed Consolidated Financial Statements include the accounts of NJR and its subsidiaries. In the opinion of management, the accompanying Unaudited Condensed Consolidated Financial Statements reflect all adjustments necessary for a fair presentation of the results of the interim periods presented. These adjustments are of a normal and recurring nature. Because of the seasonal nature of the Company's utility and wholesale energy services operations, in addition to other factors, the financial results for the interim periods presented are not indicative of the results that are to be expected for the fiscal year ending September 30, 2024. Intercompany transactions and accounts have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires the Company to make estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingencies during the reporting period. On a quarterly basis or more frequently whenever events or changes in circumstances indicate a need, the Company evaluates its estimates, including those related to the calculation of the fair value of derivative instruments, debt, equity method investments, lease liabilities, unbilled revenues, allowance for doubtful accounts, provisions for depreciation and amortization, long-lived assets, regulatory assets and liabilities, income taxes, pensions and other postemployment benefits, contingencies related to environmental matters and litigation. Asset retirement obligations are evaluated periodically as required. The Company’s estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.

The Company has legal, regulatory and environmental proceedings during the normal course of business that can result in loss contingencies. When evaluating the potential for a loss, the Company will establish a reserve if a loss is probable and can be reasonably estimated, in which case it is the Company’s policy to accrue the full amount of such estimates. Where the information is sufficient only to establish a range of probable liability, and no point within the range is more likely than any other, it is the Company’s policy to accrue the lower end of the range. In the normal course of business, estimated amounts are subsequently adjusted to actual results that may differ from estimates.

Revenues

Revenues from the sale of natural gas to NJNG customers are recognized in the period that natural gas is delivered and consumed by customers, including an estimate for unbilled revenue. NJNG records unbilled revenue for natural gas services. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the month. At the end of each month, the amount of natural gas delivered to each customer after the last meter reading through the end of the respective accounting period is estimated, and recognizes unbilled revenues related to these amounts. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects, unaccounted-for natural gas and the most current tariff rates.

CEV recognizes revenue when SRECs are transferred to counterparties. SRECs are physically delivered through the transfer of certificates as per contractual settlement schedules. The Clean Energy Act of 2018 established guidelines for the closure of the SREC registration program to new applicants in New Jersey. The SREC program officially closed to new qualified solar projects on April 30, 2020.

In December 2019, the BPU established the TREC as the successor to the SREC program. TRECs provide a fixed compensation base multiplied by an assigned project factor in order to determine their value. The project factor is determined by the type and location of the project, as defined.

In July 2021, the BPU established a new successor solar incentive program. The Administratively Determined Incentive Program provides administratively set incentives for net metered residential projects and net metered non-residential projects of 5 MW or less. RECs generated through the production of electricity under this program are known as SREC IIs.

TRECs and SREC IIs generated are required to be purchased monthly by a REC program administrator as appointed by the BPU. Revenue for TRECs and SREC IIs are recognized upon generation and are transferred monthly based upon metered solar electricity activity.

Revenues for ES are recognized when the natural gas is physically delivered to the customer. In addition, changes in the fair value of derivatives that economically hedge the forecasted sales of the natural gas are recognized in operating revenues as they occur. ES also recognizes changes in the fair value of SREC derivative contracts as a component of operating revenues.

During December 2020, ES entered into a series of AMAs with an investment grade public utility to release pipeline capacity associated with certain natural gas transportation contracts, which commenced in November 2021. The AMAs include a series of temporary and permanent releases and revenue under these agreements is recognized as the performance obligations are satisfied. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed upon term. For permanent releases of pipeline capacity, which represent a transfer of contractual rights for such capacity, revenue is recognized upon the transfer of the underlying contractual rights. ES recognized operating revenue of $9.5M during both the three months ended March 31, 2024 and 2023, and $19.0M and $29.5M during the six months ended March 31, 2024 and 2023, respectively, on the Unaudited Condensed Consolidated Statements of Operations. Amounts received in excess of revenue totaling $107.2M and $58.7M are included in deferred revenue on the Unaudited Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023, respectively.

S&T generates revenues from firm storage contracts and transportation contracts, related usage fees and hub services for the use of storage space, injections and withdrawals from their natural gas storage facility and the delivery of natural gas to customers. Demand fees are recognized as revenue over the term of the related agreement while usage fees and hub services revenues are recognized as services are performed.

Revenues from all other activities are recorded in the period during which products or services are delivered and accepted by customers, or over the related contractual term. See Note 3. Revenue for further information.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on deposit and temporary investments with maturities of three months or less, and excludes restricted cash related to escrow balances for utility plant projects at NJNG, which are recorded in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets.

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Unaudited Condensed Consolidated Balance Sheets to the total amounts in the Unaudited Condensed Consolidated Statements of Cash Flows as follows:

(Thousands)	March 31, 2024		September 30, 2023		March 31, 2023
Balance Sheet
Cash and cash equivalents	$	5,036	$	954	$	27,095
Restricted cash in other noncurrent assets	$	710	$	563	$	461
Statements of Cash Flow
Cash, cash equivalents and restricted cash	$	5,746	$	1,517	$	27,556

Allowance for Doubtful Accounts

The Company segregates financial assets, primarily trade receivables and unbilled revenues due in one year or less, into portfolio segments based on shared risk characteristics, such as geographical location and regulatory environment, for evaluation of expected credit losses. Historical and current information, such as average write-offs, are applied to each portfolio segment to estimate the allowance for losses on uncollectible receivables. Additionally, the allowance for losses on uncollectible receivables is adjusted for reasonable and supportable forecasts of future economic conditions, which can include changing weather, commodity prices, regulations, and macroeconomic factors, such as unemployment rates among others.

Loans Receivable

NJNG currently provides loans, with terms ranging from two to 10 years, to customers that elect to purchase and install certain energy-efficient equipment in accordance with its BPU-approved SAVEGREEN program. The loans are recognized at fair value on the Unaudited Condensed Consolidated Balance Sheets. The Company has $15.8M and $15.1M recorded in other current assets and $43.6M and $39.0M in other noncurrent assets as of March 31, 2024 and September 30, 2023, respectively, on the Unaudited Condensed Consolidated Balance Sheets, related to the loans. The Company regularly evaluates the credit quality and collection profile of its customers. If NJNG determines a loan is impaired, the basis of the loan would be subject to regulatory review for recovery. As of March 31, 2024 and September 30, 2023, the Company has not recorded any impairments for SAVEGREEN loans.

Natural Gas in Storage

The following table summarizes natural gas in storage, at average cost by segment as of:

	March 31, 2024				September 30, 2023
($ in thousands)	Natural Gas in Storage			Bcf	Natural Gas in Storage			Bcf
NJNG		$	60,539	9.2		$	175,025	29.1
ES		20,457		11.3		24,476		14.6
Total		$	80,996	20.5		$	199,501	43.7

Software Costs

The Company capitalizes certain costs, such as software design and configuration, coding, testing and installation, that are incurred to purchase or create and implement computer software for internal use. Capitalized costs include external costs of materials and services utilized in developing or obtaining internal-use software and payroll and payroll-related costs for employees who are directly associated with and devote time to the internal-use software project. Maintenance costs are expensed as incurred. Upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Amortization is recorded on the straight-line basis over the estimated useful lives.

The following tables present the software costs included in the Unaudited Condensed Consolidated Financial Statements:

(Thousands)	March 31, 2024		September 30, 2023
Balance Sheets
Utility plant, at cost	$	88,234	$	51,282
Construction work in progress	$	45,573	$	55,012
Nonutility plant and equipment, at cost	$	344	$	344
Accumulated depreciation and amortization, utility plant	$	(9,728)	$	(7,480)
Accumulated depreciation and amortization, nonutility plant and equipment	$	(42)	$	(36)
Software costs	$	9,734	$	8,375

	Three Months Ended				Six Months Ended
	March 31,				March 31,
Statements of Operations	2024		2023		2024		2023
Operation and maintenance	$	2,674	$	3,886	$	5,927	$	7,638
Depreciation and amortization	$	1,265	$	957	$	2,254	$	1,828

Sale Leasebacks

NJNG utilizes sale leaseback arrangements as a financing mechanism to fund certain of its capital expenditures related to natural gas meters, whereby the physical asset is sold concurrent with an agreement to lease the asset back. These agreements include options to renew the lease or repurchase the asset at the end of the term. As NJNG retains control of the natural gas meters, these arrangements do not qualify as a sale. NJNG uses the financing method to account for the transactions. Proceeds from sale leaseback transactions are accounted for as financing arrangements and are included in long-term debt on the Unaudited Condensed Consolidated Balance Sheets.

In addition, for certain of its commercial solar energy projects, the Company enters into lease agreements that provide for the sale of commercial solar energy assets to third parties and the concurrent leaseback of the assets. For sale leaseback transactions where the Company has concluded that the arrangement does not qualify as a sale as the Company retains control of the underlying assets, the Company uses the financing method to account for the transaction. Under the financing method, the Company recognizes the proceeds received from the buyer-lessor that constitute a payment to acquire the solar energy asset as a financing arrangement, which is recorded as a component of debt on the Unaudited Condensed Consolidated Balance Sheets.

The Company continues to operate the solar assets and is responsible for related expenses and entitled to retain the revenue generated from SRECs, TRECs, SREC IIs and energy sales. The ITCs and other tax benefits associated with these solar projects transfer to the buyer; however, the payments are structured so that CEV is compensated for the transfer of the related tax attributes. Accordingly, CEV recognizes the equivalent value of the tax attributes in other income on the Unaudited Condensed Consolidated Statements of Operations over the respective five-year ITC recapture periods, starting with the second year of the lease.

See Note 9. Debt for more details regarding sale leaseback transactions recorded as financing arrangements.

Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in the components of accumulated other comprehensive income (loss), net of related tax effects during the three months ended March 31, 2024 and 2023:

(Thousands)	Cash Flow Hedges		Postemployment Benefit Obligation			Total
Balance as of December 31, 2023	$	(7,005)	$	(2,559)		$	(9,564)
Other comprehensive income (loss), net of tax
Other comprehensive income, before reclassifications, net of tax of $0, $(3,020), $(3,020), respectively	—		9,992			9,992
Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $(80), $112, $32, respectively	262		(368)		(1)	(106)
Net current-period other comprehensive income, net of tax of $(80), $(2,908), $(2,988), respectively	262		9,624			9,886
Balance as of March 31, 2024	$	(6,743)	$	7,065		$	322
Balance as of December 31, 2022	$	(8,059)	$	3,537		$	(4,522)
Other comprehensive income, net of tax
Amounts reclassified from accumulated other comprehensive income, net of tax of $(80), $(13), $(93)	264		41		(1)	305
Balance as of March 31, 2023	$	(7,795)	$	3,578		$	(4,217)

(1)Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations.

The following table presents the changes in the components of accumulated other comprehensive income (loss), net of related tax effects during the six months ended March 31, 2024 and 2023:

(Thousands)	Cash Flow Hedges		Postemployment Benefit Obligation			Total
Balance as of September 30, 2023	$	(7,269)	$	(2,690)		$	(9,959)
Other comprehensive income (loss), net of tax
Other comprehensive income, before reclassifications, net of tax of $0, $(3,020) and $(3,020), respectively	—		9,992			9,992
Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $(159), $72 and $(87), respectively	526		(237)		(1)	289
Net current-period other comprehensive income, net of tax of $(159), $(2,948), $(3,107), respectively	526		9,755			10,281
Balance as of March 31, 2024	$	(6,743)	$	7,065		$	322
Balance as of September 30, 2022	$	(8,322)	$	3,496		$	(4,826)
Other comprehensive income, net of tax
Amounts reclassified from accumulated other comprehensive income, net of tax of $(159), $(25) and $(184), respectively	527		82		(1)	609
Balance as of March 31, 2023	$	(7,795)	$	3,578		$	(4,217)

(1)Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations.

Reclassification

Certain prior period amounts have been reclassified to conform to the current period presentation. Deferred income taxes and postemployment employee benefit assets previously classified within other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets have been reclassified to their own categories. Intangible assets, net previously classified in its own category on the Unaudited Condensed Consolidated Balance Sheets has been reclassified into other noncurrent assets. Other noncurrent assets and other noncurrent liabilities previously classified in their own categories on the Unaudited Condensed Consolidated Statements of Cash Flow have been combined into one category.

9

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

Recently Adopted Updates to the Accounting Standards Codification

Business Combinations

In October 2021, the FASB issued ASU No. 2021-08, an amendment to ASC 805, Business Combinations, which requires that an acquirer recognize, and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The guidance was effective for the Company beginning October 1, 2023, and was applied on a prospective basis to new acquisitions following the date of adoption. As the Company has not executed a transaction that would qualify as a business combination, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption.

Derivatives and Hedging

In March 2022, the FASB issued ASU No. 2022-01, an amendment to ASC 815, Derivatives and Hedging, which addresses fair value hedge accounting of interest rate risk for portfolios of financial assets. This update further clarifies guidance previously released in ASU 2017-12 which established the "last-of-layer" method and this update renames that method as the “portfolio layer” method. The guidance was effective for the Company beginning October 1, 2023. As the Company does not currently apply hedge accounting to any of its risk management activities, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption.

Financial Instruments

In March 2022, the FASB issued ASU No. 2022-02, an amendment to ASC 326, Financial Instruments-Credit Losses, which eliminates the accounting guidance for creditors in troubled debt restructuring. It also aligns conflicting disclosure requirement guidance in ASC 326 by requiring disclosure of current-period gross write-offs by year of origination. The amendment also adds new disclosures for creditors with loan refinancing and restructuring for borrowers experiencing financial difficulty. The guidance was effective for the Company beginning October 1, 2023. Since the Company has not experienced a troubled debt restructuring, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption.

Other Recent Updates to the Accounting Standards Codification

Fair Value Measurement

In June 2022, the FASB issued ASU No. 2022-03, an amendment to ASC 820, Fair Value Measurement. The amendment clarifies the fair value principles when measuring the fair value of an equity security subject to a contractual sale restriction. The guidance is effective for the Company on October 1, 2024, and will be applied on a prospective basis. At this time, the Company does not have equity securities subject to contractual sale restrictions, and therefore this amendment would only impact the Company upon adoption if, in the future, it entered into such transactions.

Leases

In March 2023, the FASB issued ASU No. 2023-01, an amendment to ASC 842, Leases, which applies to arrangements between related parties under common control. This update requires that all entities with common control arrangements classify and account for these leases on the same basis as an arrangement with an unrelated party. If the lessee in these types of arrangements continues to control the use of the underlying asset through a lease, the leasehold improvements are to be amortized over the improvements’ useful life to the common control group, regardless of the lease term. The guidance is effective for the Company on October 1, 2024, and the Company will elect to apply it on a prospective basis. At this time, the Company does not have leases that are subject to this amendment, and therefore it would only impact the Company upon adoption if, in the future, it entered into such transactions.

Business Combinations

In August 2023, the FASB issued ASU No. 2023-05, an amendment to ASC 805, Business Combinations, which addresses how a joint venture should recognize contributions received upon its formation. Joint ventures must account for initial assets and liabilities received at fair value on the date the joint venture is formed. The guidance is effective for the Company for joint ventures formed beginning January 1, 2025, and the Company can elect to apply it either prospectively or retrospectively back to a joint venture’s formation date provided adequate information is available. Early adoption is permitted. This amendment would only impact the Company upon adoption if, in the future, it entered into an applicable transaction.

10

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

Segment Reporting

In November 2023, the FASB issued ASU No. 2023-07, an amendment to ASC 280, Segment Reporting, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The update requires entities to disclosure significant segment expenses that are regularly provided to the chief operating decision maker and included within segment profit and loss, and it enhances interim disclosure requirements to conform with annual requirements. This update becomes effective for the Company on October 1, 2024 for the first annual period and on October 1, 2025 for the interim periods. It will be applied retrospectively for the enhanced segment disclosure requirements to all periods presented, with early adoption permitted. The Company is currently evaluating the amendment to understand the impacts on its financial position, results of operations, cash flows and disclosures upon adoption.

Income Taxes

In December 2023, the FASB issued ASU No. 2023-09, an amendment to ASC 740, Income Taxes, which requires disaggregated information about a reporting entity’s effective tax rate reconciliation and income taxes paid. It will provide investors more detailed income tax disclosures that would be useful in making capital allocation decisions. The guidance is effective for the Company on October 1, 2025, and can be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the amendment to understand the impacts on its financial position, results of operations, cash flows and disclosures upon adoption.

3. REVENUE

Revenue is recognized when a performance obligation is satisfied by transferring control of a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer using the output method of progress. The Company elected to apply the invoice practical expedient for recognizing revenue, whereby the amounts invoiced to customers represent the value to the customer and the Company’s performance completion as of the invoice date. Therefore, the Company does not disclose related unsatisfied performance obligations. The Company also elected the practical expedient to exclude from the transaction price all sales taxes that are assessed by a governmental authority and therefore presents sales tax net in operating revenues on the Unaudited Condensed Consolidated Statements of Operations.

Below is a listing of performance obligations that arise from contracts with customers, along with details on the satisfaction of each performance obligation, the significant payment terms and the nature of the goods and services being transferred, by reporting segment and other business operations:

Revenue Recognized Over Time:
Segment/ Operations	Performance Obligation	Description
NJNG	Natural gas utility sales	NJNG's performance obligation is to provide natural gas to residential, commercial and industrial customers as demanded, based on regulated tariff rates, which are established by the BPU. Revenues from the sale of natural gas are recognized in the period that natural gas is delivered and consumed by customers, including an estimate for quantities consumed but not billed during the period. Payment is due each month for the previous month's deliveries. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the billing period. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects and the most current tariff rates. NJNG is entitled to be compensated for performance completed until service is terminated. Customers may elect to purchase the natural gas commodity from NJNG or may contract separately to purchase natural gas directly from third-party suppliers. As NJNG is acting as an agent on behalf of the third-party supplier, revenue is recorded for the delivery of natural gas to the customer.
CEV	Commercial solar electricity	CEV operates wholly-owned solar projects that recognize revenue as electricity is generated and transferred to the customer. The performance obligation is to provide electricity to the customer in accordance with contract terms or the interconnection agreement and is satisfied upon transfer of electricity generated. Revenue is recognized as invoiced and the payment is due each month for the previous month's services.

11

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

Revenue Recognized Over Time (continued):
Segment/ Operations	Performance Obligation	Description
CEV	Residential solar electricity	CEV provides access to residential rooftop and ground-mount solar equipment to customers who then pay the Company a monthly fee. The performance obligation is to provide electricity to the customer based on generation from the underlying residential solar asset and is satisfied upon transfer of electricity generated. Revenue is derived from the contract terms and is recognized as invoiced, with the payment due each month for the previous month's services.
CEV	Renewable energy certificates	Certain CEV projects generate TRECs and SREC IIs under the established Administratively Determined Incentive Program. A TREC or SREC II is created for every MWh of electricity produced by a solar generator. The performance obligation of CEV is to generate electricity. TRECs and SREC IIs under the Administratively Determined Incentive Program are purchased monthly by a REC Administrator. Revenue is recognized upon generation.
ES	Natural gas services	The performance obligation of ES is to provide the customer transportation, storage and asset management services on an as-needed basis. ES generates revenue through management fees, demand charges, reservation fees and transportation charges centered around the buying and selling of the natural gas commodity, representing one series of distinct performance obligations. Revenue is recognized based upon the underlying natural gas quantities physically delivered and the customer obtaining control. ES invoices customers in line with the terms of the contract and based on the services provided. Payment is due upon receipt of the invoice. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed upon term.
S&T	Natural gas services	The performance obligation of S&T is to provide the customer with storage and transportation services. S&T generates revenues from firm storage contracts and transportation contracts, injection and withdrawal at the storage facility and the delivery of natural gas to customers. Revenue is recognized over time as customers receive the benefits of its service as it is performed on their behalf using an output method based on actual deliveries. Demand fees are recognized as revenue over the term of the related agreement.
HSO	Service contracts	Home Services enters into service contracts with homeowners to provide maintenance and replacement services of applicable heating, cooling or ventilation equipment. NJR Retail enters into warranty contracts with homeowners for various appliances. All services provided relate to a distinct performance obligation which is to provide services for the specific equipment over the term of the contract. Revenue is recognized on a straight-line basis over the term of the contract and payment is due upon receipt of the invoice.
Revenue Recognized at a Point in Time:
ES	Natural gas services	For a permanent release of pipeline capacity, the performance obligation of ES is the release of the pipeline capacity associated with certain natural gas transportation contracts and the transfer of the underlying contractual rights to the counterparty. Revenue is recognized upon the transfer of the underlying contractual rights.
S&T	Natural gas services	The performance obligation of S&T is to provide the customer with storage and transportation services. S&T generates revenues from usage fees and hub services for the use of storage space, injection and withdrawal from the storage facility. Hub services include park and loan transactions and wheeling. Usage fees and hub services revenues are recognized as services are performed.
HSO	Installations	Home Services installs appliances, including but not limited to, furnaces, air conditioning units, boilers and generators for customers. The distinct performance obligation is the installation of the contracted appliance, which is satisfied at the point in time the item is installed. The transaction price for each installation differs accordingly. Revenue is recognized at a point in time upon completion of the installation, which is when the customer is billed.

12

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the three months ended March 31, 2024 and 2023, are as follows:

(Thousands)	NJNG		CEV		ES	S&T	HSO	Total
2024
Natural gas utility sales (1)	$	371,019	—		—	—	—	$	371,019
Natural gas services	—		—		16,145	23,042	—	39,187
Service contracts	—		—		—	—	9,071	9,071
Installations and maintenance	—		—		—	—	5,834	5,834
Renewable energy certificates	—		2,672		—	—	—	2,672
Electricity sales	—		6,553		—	—	—	6,553
Eliminations (2)	(338)		—		—	(673)	(153)	(1,164)
Revenues from contracts with customers	370,681		9,225		16,145	22,369	14,752	433,172
Alternative revenue programs (3)	7,382		—		—	—	—	7,382
Derivative instruments	84,800		100	(4)	128,717	—	—	213,617
Eliminations (2)	—		—		3,742	—	—	3,742
Revenues out of scope	92,182		100		132,459	—	—	224,741
Total operating revenues	$	462,863	9,325		148,604	22,369	14,752	$	657,913
2023
Natural gas utility sales (1)	$	327,198	—		—	—	—	$	327,198
Natural gas services	—		—		16,836	20,887	—	37,723
Service contracts	—		—		—	—	8,739	8,739
Installations and maintenance	—		—		—	—	4,709	4,709
Renewable energy certificates	—		2,085		—	—	—	2,085
Electricity sales	—		6,084		—	—	—	6,084
Eliminations (2)	(338)		—		—	(1,584)	(183)	(2,105)
Revenues from contracts with customers	326,860		8,169		16,836	19,303	13,265	384,433
Alternative revenue programs (3)	27,270		—		—	—	—	27,270
Derivative instruments	46,370		6,237	(4)	179,894	—	—	232,501
Eliminations (2)	—		—		(177)	—	—	(177)
Revenues out of scope	73,640		6,237		179,717	—	—	259,594
Total operating revenues	$	400,500	14,406		196,553	19,303	13,265	$	644,027

(1)Includes building rent related to the Wall headquarters, which is eliminated in consolidation.

(2)Consists of transactions between subsidiaries that are eliminated in consolidation.

(3)Includes CIP revenue.

(4)Includes SREC revenue.

13

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the six months ended March 31, 2024 and 2023, are as follows:

(Thousands)	NJNG		CEV		ES	S&T	HSO	Total
2024
Natural gas utility sales (1)	$	628,894	—		—	—	—	$	628,894
Natural gas services	—		—		32,413	46,904	—	79,317
Service contracts	—		—		—	—	18,011	18,011
Installations and maintenance	—		—		—	—	11,728	11,728
Renewable energy certificates	—		5,322		—	—	—	5,322
Electricity sales	—		13,267		—	—	—	13,267
Eliminations (2)	(675)		—		—	(1,348)	(153)	(2,176)
Revenues from contracts with customers	628,219		18,589		32,413	45,556	29,586	754,363
Alternative revenue programs (3)	4,845		—		—	—	—	4,845
Derivative instruments	122,892		26,031	(4)	212,117	—	—	361,040
Eliminations (2)	—		—		4,875	—	—	4,875
Revenues out of scope	127,737		26,031		216,992	—	—	370,760
Total operating revenues	$	755,956	44,620		249,405	45,556	29,586	$	1,125,123
2023
Natural gas utility sales (1)	$	615,365	—		—	—	—	$	615,365
Natural gas services	—		—		44,684	47,725	—	92,409
Service contracts	—		—		—	—	17,400	17,400
Installations and maintenance	—		—		—	—	10,314	10,314
Renewable energy certificates	—		3,287		—	—	—	3,287
Electricity sales	—		13,788		—	—	—	13,788
Eliminations (2)	(675)		—		—	(2,708)	(196)	(3,579)
Revenues from contracts with customers	614,690		17,075		44,684	45,017	27,518	748,984
Alternative revenue programs (3)	23,805		—		—	—	—	23,805
Derivative instruments	119,414		10,123	(4)	473,828	—	—	603,365
Eliminations (2)	—		—		(8,560)	—	—	(8,560)
Revenues out of scope	143,219		10,123		465,268	—	—	618,610
Total operating revenues	$	757,909	27,198		509,952	45,017	27,518	$	1,367,594

(1)Includes building rent related to the Wall headquarters, which is eliminated in consolidation.

(2)Consists of transactions between subsidiaries that are eliminated in consolidation.

(3)Includes CIP revenue.

(4)Includes SREC revenue.

14

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the three months ended March 31, 2024 and 2023, are as follows:

(Thousands)	NJNG		CEV	ES	S&T	HSO	Total
2024
Residential	$	287,824	3,229	—	—	14,684	$	305,737
Commercial and industrial	50,362		5,996	16,145	22,369	68	94,940
Firm transportation	30,680		—	—	—	—	30,680
Interruptible, off-tariff and other	1,815		—	—	—	—	1,815
Revenues out of scope	92,182		100	132,459	—	—	224,741
Total operating revenues	$	462,863	9,325	148,604	22,369	14,752	$	657,913
2023
Residential	$	247,623	3,204	—	—	13,089	$	263,916
Commercial and industrial	49,105		4,965	16,836	19,303	176	90,385
Firm transportation	29,368		—	—	—	—	29,368
Interruptible, off-tariff and other	764		—	—	—	—	764
Revenues out of scope	73,640		6,237	179,717	—	—	259,594
Total operating revenues	$	400,500	14,406	196,553	19,303	13,265	$	644,027

Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the six months ended March 31, 2024 and 2023, are as follows:

(Thousands)	NJNG		CEV	ES	S&T	HSO	Total
2024
Residential	$	483,447	6,615	—	—	29,487	$	519,549
Commercial and industrial	86,121		11,974	32,413	45,556	99	176,163
Firm transportation	55,115		—	—	—	—	55,115
Interruptible, off-tariff and other	3,536		—	—	—	—	3,536
Revenues out of scope	127,737		26,031	216,992	—	—	370,760
Total operating revenues	$	755,956	44,620	249,405	45,556	29,586	$	1,125,123
2023
Residential	$	464,561	6,497	—	—	27,269	$	498,327
Commercial and industrial	92,900		10,578	44,684	45,017	249	193,428
Firm transportation	55,567		—	—	—	—	55,567
Interruptible, off-tariff and other	1,662		—	—	—	—	1,662
Revenues out of scope	143,219		10,123	465,268	—	—	618,610
Total operating revenues	$	757,909	27,198	509,952	45,017	27,518	$	1,367,594

15

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

Customer Accounts Receivable/Credit Balances and Deposits

The timing of revenue recognition, customer billings and cash collections resulting in accounts receivables, billed and unbilled, and customers’ credit balances and deposits on the Unaudited Condensed Consolidated Balance Sheets during the six months ended March 31, 2024 and 2023, are as follows:

	Customer Accounts Receivable				Customers' Credit
(Thousands)	Billed		Unbilled		Balances and Deposits
Balance as of September 30, 2023	$	97,540	$	19,100	$	44,910
Increase (decrease)	87,529		55,356		(20,032)
Balance as of March 31, 2024	$	185,069	$	74,456	$	24,878
Balance as of September 30, 2022	$	222,297	$	13,769	$	33,246
(Decrease) increase	(27,844)		32,271		(7,725)
Balance as of March 31, 2023	$	194,453	$	46,040	$	25,521

The following table provides information about receivables, which are included within accounts receivable, billed and unbilled, and customers’ credit balances and deposits, respectively, on the Unaudited Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023:

(Thousands)	NJNG		CEV	ES	S&T	HSO	Total
March 31, 2024
Customer accounts receivable
Billed	$	142,088	7,273	25,241	7,749	2,718	$	185,069
Unbilled	69,904		4,552	—	—	—	74,456
Customers' credit balances and deposits	(24,860)		—	—	(18)	—	(24,878)
Total	$	187,132	11,825	25,241	7,731	2,718	$	234,647
September 30, 2023
Customer accounts receivable
Billed	$	55,234	9,962	23,716	6,577	2,051	$	97,540
Unbilled	10,784		8,316	—	—	—	19,100
Customers' credit balances and deposits	(44,898)		—	—	(12)	—	(44,910)
Total	$	21,120	18,278	23,716	6,565	2,051	$	71,730

4. REGULATION

NJNG is subject to cost-based regulation, therefore, it is permitted to recover authorized operating expenses and earn a reasonable return on its utility capital investments based on the BPU's approval. The impact of the ratemaking process and decisions authorized by the BPU allows NJNG to capitalize or defer certain costs that are expected to be recovered from its customers as regulatory assets and to recognize certain obligations representing amounts that are probable future expenditures as regulatory liabilities in accordance with accounting guidance applicable to regulated operations.

NJNG's recovery of costs is facilitated through its base rates, BGSS and other regulatory tariff riders. NJNG is required to make filings to the BPU for review of its BGSS, CIP and other programs and related rates. Annual rate changes are typically requested to be effective at the beginning of the following fiscal year. The current base rates include a weighted average cost of capital of 6.84% and a return on common equity of 9.6%. All rate and program changes are subject to proper notification and BPU review and approval. In addition, NJNG is permitted to implement certain BGSS rate changes on a provisional basis with proper notification to the BPU.

16

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for NJNG are comprised of the following:

(Thousands)	March 31, 2024		September 30, 2023
Regulatory assets-current
New Jersey Clean Energy Program	$	6,827	$	15,804
Conservation Incentive Program	55,200		50,356
Derivatives at fair value, net	30,444		6,017
Other current regulatory assets	1,416		1,410
Total current regulatory assets	$	93,887	$	73,587
Regulatory assets-noncurrent
Environmental remediation costs:
Expended, net of recoveries	$	69,229	$	66,298
Liability for future expenditures	157,813		169,390
Deferred income taxes	42,626		41,667
SAVEGREEN	88,496		83,589
Postemployment and other benefit costs	7,936		55,274
Cost of removal	118,900		112,362
Other noncurrent regulatory assets	44,943		51,019
Total noncurrent regulatory assets	$	529,943	$	579,599
Regulatory liability-current
Overrecovered natural gas costs	$	31,628	$	30,637
Total current regulatory liabilities	$	31,628	$	30,637
Regulatory liabilities-noncurrent
Tax Act impact (1)	$	177,838	$	180,347
Other noncurrent regulatory liabilities	438		111
Total noncurrent regulatory liabilities	$	178,276	$	180,458

(1)Reflects the re-measurement and subsequent amortization of NJNG's net deferred tax liabilities as a result of the change in federal tax rates enacted in the Tax Act. The Tax Act is an Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, previously known as The Tax Cuts and Jobs Act of 2017.

Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for Adelphia are comprised of the following:

(Thousands)	March 31, 2024		September 30, 2023
Total noncurrent regulatory assets	$	5,161	$	5,231
Total current regulatory liabilities	$	1,535	$	1,650

The assets are comprised primarily of the tax benefit associated with the equity component of AFUDC and the liability consists primarily of scheduling penalties. Recovery of regulatory assets is subject to FERC approval.

Regulatory filings and/or actions that occurred during the current fiscal year include the following:

•On November 9, 2023, NJNG filed a letter petition seeking BPU approval to extend NJNG’s current SAVEGREEN program through December 31, 2024, with an additional $76.9M in order to meet customer demand for this program, which was approved by the BPU on April 30, 2024.

•On December 1, 2023, NJNG filed a petition seeking BPU approval of its 2024 SAVEGREEN program, which would support new energy efficiency, demand response and building decarbonization start-up programs from January 1, 2025 through June 30, 2027. The 2024 SAVEGREEN program includes $245.1M of direct investment, $217.2M in financing options and $20.1M in O&M.

17

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

•On January 31, 2024, NJNG filed a base rate case with the BPU requesting a natural gas revenue increase of $222.6M including a recovery of infrastructure investments, a change in the Company’s overall rate of return on rate base to 7.57% and a change in the return on common equity to 10.42%.

•On March 20, 2024, the BPU approved NJNG's annual SBC filing of RAC expenditures through June 30, 2023, which included an increase to the RAC annual recoveries of approximately $2.4M and an increase to the NJCEP annual recoveries of approximately $5.5M, effective April 1, 2024.

•On March 28, 2024, NJNG submitted its annual IIP filing to the BPU requesting a rate increase for capital expenditures of $43.5M through June 30, 2024, which will result in a $5.6M revenue increase, with a proposed effective date of October 1, 2024.

5. DERIVATIVE INSTRUMENTS

The Company is subject primarily to commodity price risk due to fluctuations in the market price of natural gas, SRECs and electricity. To manage this risk, the Company enters into a variety of derivative instruments including, but not limited to, futures contracts, physical forward contracts, financial options and swaps to economically hedge the commodity price risk associated with its existing and anticipated commitments to purchase and sell natural gas, SRECs and electricity. In addition, the Company is exposed to foreign currency and interest rate risk and may utilize foreign currency derivatives to hedge Canadian dollar denominated natural gas purchases and/or sales and interest rate derivatives to reduce exposure to fluctuations in interest rates. All of these types of contracts are accounted for as derivatives, unless the Company elects NPNS, which is done on a contract-by-contract election. Accordingly, all of the financial and certain of the Company's physical derivative instruments are recorded at fair value on the Unaudited Condensed Consolidated Balance Sheets. For a more detailed discussion of the Company’s fair value measurement policies and level disclosures associated with the Company’s derivative instruments, see Note 6. Fair Value.

Energy Services

ES chooses not to designate its financial commodity and physical forward commodity derivatives as accounting hedges or to elect NPNS. The changes in the fair value of these derivatives are recorded as a component of natural gas purchases or operating revenues, as appropriate for ES, on the Unaudited Condensed Consolidated Statements of Operations as unrealized gains or losses. For ES at settlement, realized gains and losses on all financial derivative instruments are recognized as a component of natural gas purchases and realized gains and losses on all physical derivatives follow the presentation of the related unrealized gains and losses as a component of either natural gas purchases or operating revenues.

ES also enters into natural gas transactions in Canada and, consequently, is exposed to fluctuations in the value of Canadian currency relative to the U.S. dollar. ES may utilize foreign currency derivatives to lock in the exchange rates associated with natural gas transactions denominated in Canadian currency. The derivatives may include currency forwards, futures, or swaps and are accounted for as derivatives. These derivatives are typically used to hedge demand fee payments on pipeline capacity, storage and natural gas purchase agreements.

As a result of ES entering into transactions to borrow natural gas, commonly referred to as “park and loans,” an embedded derivative is recognized relating to differences between the fair value of the amount borrowed and the fair value of the amount that will ultimately be repaid, based on changes in the forward price for natural gas prices at the borrowed location over the contract term. This embedded derivative is accounted for as a forward sale in the month in which the repayment of the borrowed natural gas is expected to occur, and is considered a derivative transaction that is recorded at fair value on the Unaudited Condensed Consolidated Balance Sheets, with changes in value recognized in current period earnings.

Expected production of SRECs is hedged through the use of forward and futures contracts. All contracts require the Company to physically deliver SRECs through the transfer of certificates as per contractual settlement schedules. ES recognizes changes in the fair value of these derivatives as a component of operating revenues. Upon settlement of the contract, the related revenue is recognized when the SREC is transferred to the counterparty.

18

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

Natural Gas Distribution

Changes in fair value of NJNG's financial commodity derivatives are recorded as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets. The Company elects NPNS accounting treatment on all physical commodity contracts that NJNG entered into on or before December 31, 2015, and accounts for these contracts on an accrual basis. Accordingly, physical natural gas purchases are recognized in regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets when the contract settles and the natural gas is delivered. The average cost of natural gas is charged to expense in the current period earnings based on the BGSS factor times the therm sales. NJNG no longer elects NPNS accounting treatment on a portfolio basis. However, since NPNS is a contract-by-contract election, where it makes sense to do so, NJNG can and may elect to treat certain contracts as normal. Because NJNG recovers these amounts through future BGSS rates as increases or decreases to the cost of natural gas in NJNG’s tariff for natural gas service, the changes in fair value of these contracts are deferred as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets.

Clean Energy Ventures

The Company elects NPNS accounting treatment on PPA contracts executed by CEV that meet the definition of a derivative and accounts for the contract on an accrual basis. Accordingly, electricity sales are recognized in revenues throughout the term of the PPA as electricity is delivered. NPNS is a contract-by-contract election and where it makes sense to do so, the Company can and may elect to treat certain contracts as normal.

Fair Value of Derivatives

The following table presents the fair value of the Company's derivative assets and liabilities recognized on the Unaudited Condensed Consolidated Balance Sheets as of:

			Derivatives at Fair Value
			March 31, 2024						September 30, 2023
(Thousands)	Balance Sheet Location	Assets			Liabilities			Assets			Liabilities
Derivatives not designated as hedging instruments:
NJNG:
Physical commodity contracts	Derivatives - current		$	49		$	6		$	43		$	488
Financial commodity contracts	Derivatives - current		1,229			35			6,110			20
ES:
Physical commodity contracts	Derivatives - current		1,384			6,656			6,209			12,757
	Derivatives - noncurrent		678			13,014			802			7,870
Financial commodity contracts	Derivatives - current		11,394			4,028			18,393			2,880
	Derivatives - noncurrent		232			777			762			97
Total fair value of derivatives			$	14,966		$	24,516		$	32,319		$	24,112

Offsetting of Derivatives

The Company transacts under master netting arrangements or equivalent agreements that allow it to offset derivative assets and liabilities with the same counterparty. However, the Company’s policy is to present its derivative assets and liabilities on a gross basis at the contract level unit of account on the Unaudited Condensed Consolidated Balance Sheets.

19

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

The following table summarizes the reported gross amounts, the amounts that the Company has the right to offset but elects not to, financial collateral and the net amounts the Company could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to.

	Asset Derivatives						Liability Derivatives
(Thousands)	Fair Value (1)		Amounts Offset (2)	Collateral Received/Pledged (3)	Net Value (4)		Fair Value (1)		Amounts Offset (2)	Collateral Received/Pledged (3)	Net Value (4)
As of March 31, 2024
ES Contracts
Physical commodity	$	2,062	(539)	—	$	1,523	$	19,670	(539)	(9,865)	$	9,266
Financial commodity	11,626		(4,805)	(6,206)	615		4,805		(4,805)	—	—
Total ES	$	13,688	(5,344)	(6,206)	$	2,138	$	24,475	(5,344)	(9,865)	$	9,266
NJNG Contracts
Physical commodity	$	49	(4)	—	$	45	$	6	(4)	—	$	2
Financial commodity	1,229		(35)	—	1,194		35		(35)	—	—
Total NJNG	$	1,278	(39)	—	$	1,239	$	41	(39)	—	$	2
As of September 30, 2023
ES Contracts
Physical commodity	$	7,011	(1,236)	—	$	5,775	$	20,627	(1,236)	(9,728)	$	9,663
Financial commodity	19,155		(2,977)	(16,178)	—		2,977		(2,977)	—	—
Total ES	$	26,166	(4,213)	(16,178)	$	5,775	$	23,604	(4,213)	(9,728)	$	9,663
NJNG Contracts
Physical commodity	$	43	(3)	—	$	40	$	488	(3)	—	$	485
Financial commodity	6,110		(20)	—	6,090		20		(20)	—	—
Total NJNG	$	6,153	(23)	—	$	6,130	$	508	(23)	—	$	485

(1)Derivative assets and liabilities are presented on a gross basis on the condensed consolidated balance sheets as the Company does not elect balance sheet offsetting under ASC 210-20.

(2)Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting.

(3)Financial collateral includes cash balances at FCMs as well as cash received from or pledged to other counterparties.

(4)Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.

ES utilizes financial derivatives to economically hedge the gross margin associated with the purchase of physical natural gas to be used for storage injection and its subsequent sale at a later date. The gains or (losses) on the financial transactions that are economic hedges of the cost of the purchased natural gas are recognized prior to the gains or (losses) on the physical transaction, which are recognized in earnings when the natural gas is delivered. Therefore, mismatches between the timing of the recognition of realized gains or (losses) on the financial derivative instruments and gains or (losses) associated with the actual sale of the natural gas that is being economically hedged along with fair value changes in derivative instruments, creates volatility in the results of ES, although the Company's intended economic results relating to the entire transaction are unaffected.

The following table presents the effect of derivative instruments recognized on the Unaudited Condensed Consolidated Statements of Operations for the periods set forth below:

(Thousands)	Location of gain (loss) recognized in income on derivatives	Amount of gain (loss) recognized in income on derivatives
		Three Months Ended				Six Months Ended
		March 31,				March 31,
Derivatives not designated as hedging instruments:		2024		2023		2024		2023
ES:
Physical commodity contracts	Operating revenues	$	(3,651)	$	7,208	$	10,379	$	17,246
Physical commodity contracts	Natural gas purchases	(1,424)		(124)		(2,010)		(794)
Financial commodity contracts	Natural gas purchases	(2,459)		29,863		15,623		71,474
Total unrealized and realized (loss) gain		$	(7,534)	$	36,947	$	23,992	$	87,926

20

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

NJNG’s derivative contracts are part of the Company's risk management activities that relate to its natural gas purchases and BGSS incentive programs. At settlement, the resulting gains and/or losses are payable to or recoverable from utility customers and are deferred in regulatory assets or liabilities resulting in no impact to earnings. The following table reflects the gains (losses) associated with NJNG's derivative instruments for the periods set forth below:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands)	2024		2023		2024		2023
NJNG:
Physical commodity contracts	$	(3,920)	$	(203)	$	(4,990)	$	(28,234)
Financial commodity contracts	(3,142)		(38,294)		1,190		(69,957)
Total unrealized and realized loss	$	(7,062)	$	(38,497)	$	(3,800)	$	(98,191)

During fiscal 2020, NJR entered into treasury lock transactions to fix the benchmark treasury rate associated with debt issuances that were finalized in 2020. NJR designates its treasury lock contracts as cash flow hedges; therefore, changes in fair value of the effective portion of the hedges are recorded in OCI and upon settlement of the contracts, realized gains and (losses) are reclassified from OCI to interest expense on the Consolidated Statements of Operations ratable over the term of the associated debt. Pre-tax losses of $0.3M were reclassified during both the three months ended March 31, 2024 and 2023, and pre-tax losses of $0.7M were reclassified during both the six months ended March 31, 2024 and 2023.

NJNG and ES had the following outstanding long (short) derivatives as of:

	Natural Gas Distribution		Energy Services
Volumes (Bcf)	Futures	Physical Commodity	Futures	Physical Commodity
March 31, 2024	23.8	5.0	(3.8)	(3.2)
September 30, 2023	32.1	12.1	(6.9)	0.2

Not included in the above table are 1.4M and 1.3M SRECs that were open as of March 31, 2024 and September 30, 2023, respectively, and the notional amount of foreign currency transactions for the periods were immaterial.

Broker Margin

Futures exchanges have contract specific margin requirements that require the posting of cash or cash equivalents relating to traded contracts. Margin requirements consist of initial margin that is posted upon the initiation of a position, maintenance margin that is usually expressed as a percent of initial margin, and variation margin that fluctuates based on the daily marked-to-market relative to maintenance margin requirements.

The Company maintains separate broker margin accounts for NJNG and ES. The balances by reporting segment are as follows:

(Thousands)	Balance Sheet Location	March 31, 2024		September 30, 2023
NJNG	Restricted broker margin accounts-current assets	$	4,969	$	5,915
ES	Restricted broker margin accounts-current assets	$	14,341	$	14,881
	Restricted broker margin accounts-current liabilities	$	4,689	$	8,029

Wholesale Credit Risk

NJNG, ES, CEV and S&T are exposed to credit risk as a result of their sales/wholesale marketing activities. As a result of the inherent volatility in the prices of natural gas commodities, derivatives and SRECs, the market value of contractual positions with individual counterparties could exceed established credit limits or collateral provided by those counterparties. If a counterparty fails to perform the obligations under its contract then the Company could sustain a loss.

The Company monitors and manages the credit risk of its wholesale operations through credit policies and procedures that management believes reduce overall credit risk. These policies include a review and evaluation of current and prospective counterparties' financial statements and/or credit ratings, daily monitoring of counterparties' credit limits and exposure, daily communication with traders regarding credit status and the use of credit mitigation measures, such as collateral requirements

21

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

and netting agreements. Examples of collateral include letters of credit and cash received for either prepayment or margin deposit. Collateral may be requested due to the Company's election not to extend credit or because exposure exceeds defined thresholds. Most of the Company's wholesale marketing contracts contain standard netting provisions. These contracts include those governed by ISDA and the NAESB. The netting provisions refer to payment netting, whereby receivables and payables with the same counterparty are offset and the resulting net amount is paid to the party to which it is due.

Internally-rated exposure applies to counterparties that are not rated by Fitch or Moody's. In these cases, the counterparty's or guarantor's financial statements are reviewed, and similar methodologies and ratios used by Fitch and/or Moody's are applied to arrive at a substitute rating. Gross credit exposure is defined as the unrealized fair value of physical and financial derivative commodity contracts, plus any outstanding wholesale receivable for the value of natural gas delivered and/or financial derivative commodity contract that has settled for which payment has not yet been received.

The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of March 31, 2024. The amounts presented below have not been reduced by any collateral received or netting and exclude accounts receivable for NJNG retail natural gas sales and services and CEV residential solar installations.

(Thousands)	Gross Credit Exposure
Investment grade		$	113,150
Noninvestment grade		9,134
Internally rated investment grade		19,988
Internally rated noninvestment grade		22,477
Total		$	164,749

Conversely, certain of NJNG's and ES' derivative instruments are linked to agreements containing provisions that would require cash collateral payments from the Company if certain events occur. These provisions vary based upon the terms in individual counterparty agreements and can result in cash payments if NJNG's credit rating were to fall below its current level. Specifically, most, but not all, of these additional payments will be triggered if NJNG's debt is downgraded by the major credit agencies, regardless of investment grade status. In addition, some of these agreements include threshold amounts that would result in additional collateral payments if the values of derivative liabilities were to exceed the maximum values provided for in relevant counterparty agreements. Other provisions include payment features that are not specifically linked to ratings but are based on certain financial metrics.

Collateral amounts associated with any of these conditions are determined based on a sliding scale and are contingent upon the degree to which the Company's credit rating and/or financial metrics deteriorate, and the extent to which liability amounts exceed applicable threshold limits. There was approximately $1.4M and $0.1M of derivative instruments with credit-risk-related contingent features that were in a liability position for which collateral is required as of March 31, 2024 and September 30, 2023, respectively. These amounts differ from the respective net derivative liabilities reflected on the Unaudited Condensed Consolidated Balance Sheets because the agreements also include clauses, commonly known as “Rights of Offset,” that would permit the Company to offset its derivative assets against its derivative liabilities for determining additional collateral to be posted, as previously discussed.

6. FAIR VALUE

Fair Value of Assets and Liabilities

The fair value of cash and cash equivalents, accounts receivable, current loan receivables, accounts payable, commercial paper and borrowings under revolving credit facilities are estimated to equal their carrying amounts due to the short maturity of those instruments. Non-current loans receivable are recorded based on what the Company expects to receive, which approximates fair value, in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets. The Company regularly evaluates the credit quality and collection profile of its customers to approximate fair value.

22

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

The estimated fair value of long-term debt, including current maturities, excluding natural gas meter finance arrangements, debt issuance costs and solar asset financing obligations, is as follows:

(Thousands)	March 31, 2024		September 30, 2023
Carrying value (1) (2)	$	2,567,845	$	2,587,845
Fair market value	$	2,218,977	$	2,106,536

(1)Excludes NJNG's debt issuance costs of $10.0M and $9.8M as of March 31, 2024 and September 30, 2023, respectively.

(2)Excludes NJR's debt issuance costs of $3.3M and $3.7M as of March 31, 2024 and September 30, 2023, respectively.

The Company enters into sale leaseback transactions for certain commercial solar assets and natural gas meters. These transactions are recorded within long-term debt on the Unaudited Condensed Consolidated Balance Sheets. The carrying value of solar sale leasebacks was $284.2M and $278.4M and the estimated fair value was $282.1M and $268.1M as of March 31, 2024 and September 30, 2023, respectively. The carrying value of the natural gas meter sale leasebacks was $36.0M and $31.4M and the estimated fair value of certain natural gas meter sale leasebacks amounted to $28.3M and $20.9M as of March 31, 2024 and September 30, 2023, respectively.

The Company utilizes a discounted cash flow method to determine the fair value of its debt. Inputs include observable municipal and corporate yields, as appropriate for the maturity of the specific issue and the Company's credit rating. As of March 31, 2024, the Company discloses its debt within Level 2 of the fair value hierarchy.

Fair Value Hierarchy

The Company applies fair value measurement guidance to its financial assets and liabilities, as appropriate, which include financial derivatives and physical commodity contracts qualifying as derivatives, investments in equity securities and other financial assets and liabilities. In addition, authoritative accounting literature prescribes the use of a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on the source of the data used to develop the price inputs. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to inputs that are based on unobservable market data and includes the following:

Fair Value Hierarchy	Description of Fair Value Level	Fair Value Technique
Level 1	Unadjusted quoted prices for identical assets or liabilities in active markets	The Company’s Level 1 assets and liabilities include exchange-traded natural gas futures and options contracts, listed equities and money market funds. Exchange-traded futures and options contracts include all energy contracts traded on the NYMEX, CME and ICE that the Company refers to internally as basis swaps, fixed swaps, futures and financial options that are cleared through an FCM.
Level 2	Other significant observable inputs, such as interest rates or price data, including both commodity and basis pricing that is observed either directly or indirectly from publications or pricing services	The Company’s Level 2 assets and liabilities include over-the-counter physical forward commodity contracts and swap contracts, SREC forward sales or derivatives that are initially valued using observable quotes and are subsequently adjusted to include time value, credit risk or estimated transport pricing components for which no basis price is available. Level 2 financial derivatives consist of transactions with non-FCM counterparties (basis swaps, fixed swaps and/or options). Inputs are verifiable and do not require significant management judgment. For some physical commodity contracts, the Company utilizes transportation tariff rates that are publicly available and that it considers to be observable inputs that are equivalent to market data received from an independent source. There are no significant judgments or adjustments applied to the transportation tariff inputs and no market perspective is required. Even if the transportation tariff input were considered to be a “model,” it would still be considered to be a Level 2 input as the data is: •widely accepted and public; •non-proprietary and sourced from an independent third party; and •observable and published. These additional adjustments are generally not considered to be significant to the ultimate recognized values.
Level 3	Inputs derived from a significant amount of unobservable market data	These include the Company’s best estimate of fair value and are derived primarily through the use of internal valuation methodologies.

23

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

Assets and liabilities measured at fair value on a recurring basis are summarized as follows:

	Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
(Thousands)	(Level 1)			(Level 2)			(Level 3)			Total
As of March 31, 2024
Assets:
Physical commodity contracts		$	—		$	2,111		$	—	$	2,111
Financial commodity contracts		12,855			—			—		12,855
Money market funds		56			—			—		56
Other		2,954			—			—		2,954
Total assets at fair value		$	15,865		$	2,111		$	—	$	17,976
Liabilities:
Physical commodity contracts		$	—		$	19,676		$	—	$	19,676
Financial commodity contracts		4,840			—			—		4,840
Total liabilities at fair value		$	4,840		$	19,676		$	—	$	24,516

	Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
(Thousands)	(Level 1)			(Level 2)			(Level 3)			Total
As of September 30, 2023
Assets:
Physical commodity contracts		$	—		$	7,054		$	—	$	7,054
Financial commodity contracts		25,265			—			—		25,265
Money market funds		145			—			—		145
Other		2,641			—			—		2,641
Total assets at fair value		$	28,051		$	7,054		$	—	$	35,105
Liabilities:
Physical commodity contracts		$	—		$	21,115		$	—	$	21,115
Financial commodity contracts		2,997			—			—		2,997
Total liabilities at fair value		$	2,997		$	21,115		$	—	$	24,112

7. INVESTMENTS IN EQUITY INVESTEES

The Company holds a 50% equity method investment in Steckman Ridge, a jointly owned and controlled natural gas storage facility located in Bedford County, Pennsylvania. The Company's investment in Steckman Ridge was $101.8M and $104.1M as of March 31, 2024 and September 30, 2023, respectively, which include loans with a total outstanding principal balance of $70.4M for both periods. On October 1, 2023, the Company entered into an Amended and Restated Loan Agreement with Steckman Ridge, which extends the existing loan agreement and moved from London Interbank Offered Rate to Secured Overnight Financing Rate. The loans accrue interest at a variable rate that resets quarterly and are due October 1, 2027.

NJNG and ES have entered into storage and park and loan agreements with Steckman Ridge. See Note 15. Related Party Transactions for more information on these intercompany transactions.

24

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

8. EARNINGS PER SHARE

The following table presents the calculation of the Company's basic and diluted earnings per share for:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands, except per share amounts)	2024		2023		2024		2023
Net income, as reported	$	120,812	$	110,247	$	210,223	$	226,168
Basic earnings per share
Weighted average shares of common stock outstanding-basic	98,377		96,893		98,123		96,689
Basic earnings per common share	$1.23		$1.14		$2.14		$2.34
Diluted earnings per share
Weighted average shares of common stock outstanding-basic	98,377		96,893		98,123		96,689
Incremental shares (1)	725		663		716		657
Weighted average shares of common stock outstanding-diluted	99,102		97,556		98,839		97,346
Diluted earnings per common share	$1.22		$1.13		$2.13		$2.32

(1)Incremental shares consist primarily of unvested stock awards and performance units, which are calculated using the treasury stock method.

9. DEBT

NJR and NJNG finance working capital requirements and capital expenditures through various short-term debt and long-term financing arrangements, including a commercial paper program and committed unsecured credit facilities.

Credit Facilities and Short-term Debt

A summary of NJR's credit facility and NJNG's commercial paper program and credit facility are as follows:

				At end of period
(Thousands)	As of date	Total borrowing capacity		Loans outstanding		Weighted average interest rate			Remaining borrowing capacity				Expiration dates
NJR bank revolving credit facilities (1)
March 31, 2024		$	650,000	$	146,150		6.52	%		$	494,519	(2)	September 2027
September 30, 2023		$	650,000	$	217,300		6.53	%		$	426,967	(2)	September 2027
NJNG bank revolving credit facilities (3)
March 31, 2024		$	250,000	$	50,000		5.48	%		$	199,269	(4)	September 2027
September 30, 2023		$	250,000	$	34,800		5.48	%		$	214,469	(4)	September 2027

(1)Committed credit facilities, which require commitment fees of 0.10% on the unused amounts.

(2)Letters of credit outstanding total $9.3M at March 31, 2024 and $5.7M at September 30, 2023, which reduces the amount available by the same amount.

(3)Committed credit facilities, which require commitment fees of 0.075% on the unused amounts.

(4)Letters of credit outstanding total $0.7M at both March 31, 2024 and September 30, 2023, which reduces the amount available by the same amount.

Amounts available under credit facilities are reduced by bank or commercial paper borrowings, as applicable, and any outstanding letters of credit. Neither NJNG nor the results of its operations are obligated or pledged to support the NJR Credit Facility or term loan.

Long-term Debt

NJNG

In September 2023, NJNG entered into a Note Purchase Agreement for $100M aggregate principal amount of its senior notes consisting of $50M of 5.56% senior notes due September 28, 2033, which closed on September 28, 2023, and $50M of 5.85% senior notes due October 30, 2053, which closed on October 30, 2023.

25

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

NJNG received $8.8M and $8.4M during the six months ended March 31, 2024 and 2023, respectively, in connection with the sale leaseback of its natural gas meters. NJNG records the sale leaseback as a financing obligation for accounting purposes and has the option to purchase the meters back at fair value upon expiration of the lease.

Clean Energy Ventures

CEV received proceeds of $24.4M and $61.8M during the six months ended March 31, 2024 and 2023, respectively, in connection with the sale leaseback of commercial solar assets. CEV records the sale leaseback as a financing obligation for accounting purposes and continues to operate the solar assets, including related expenses, retains the revenue generated from SRECs, TRECs and energy sales, and has the option to renew the lease or repurchase the assets sold at the end of the lease term.

10. EMPLOYEE BENEFIT PLANS

Pension and Other Postemployment Benefit Plans

In January 2024, the Company announced changes to its postretirement medical benefits plan. Beginning on January 1, 2025, the Company will replace the existing retiree medical coverage for certain eligible employees age 65 and older and their Medicare-eligible dependents with an employer funded Health Reimbursement Arrangement. Medicare-eligible participants may use the Health Reimbursement Arrangement towards the purchase of supplemental insurance coverage and for other qualified medical expenses. The liability associated with postretirement medical benefits was remeasured as of January 1, 2024, and the expense for the remainder of fiscal 2024 will be recorded using updated assumptions and actuarial calculations. The plan amendment will be amortized over approximately 8 years, which is the average remaining service to retirement for all plan participants.

The following summarizes the changes in the funded status of the plan and the related liabilities recognized on the Consolidated Balance Sheets:

	OPEB
(Thousands)	January 1, 2024		September 30, 2023
Change in Benefit Obligation
Benefit obligation at beginning of period	$	203,406	$	173,217
Service cost	642		2,471
Interest cost	2,902		9,146
Plan amendments	(81,283)		—
Plan participants’ contributions (1)	—		552
Actuarial loss	26,871		25,363
Benefits paid, net of retiree subsidies received	(1,614)		(7,343)
Benefit obligation at end of period	$	150,924	$	203,406
Change in plan assets
Fair value of plan assets at beginning of period	$	106,783	$	99,736
Actual return on plan assets	8,995		9,826
Employer contributions	3,181		4,192
Benefits paid, net of plan participants’ contributions (1)	(1,612)		(6,971)
Fair value of plan assets at end of period	$	117,347	$	106,783
Funded status	$	(33,577)	$	(96,623)
Amounts recognized on Consolidated Balance Sheets
Postemployment employee (liability)
Current	$	(1,613)	$	(4,201)
Noncurrent	(31,964)		(92,422)
Total	$	(33,577)	$	(96,623)

(1)Employees hired prior to July 1, 1998, were eligible to elect an additional participant contribution to enhance their benefits. Contributions made during the periods were immaterial.

26

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

The following table summarizes the amounts recognized in regulatory assets and accumulated other comprehensive income (loss):

	Regulatory Assets		Accumulated Other Comprehensive Income (Loss)
(Thousands)	OPEB
Balance at September 30, 2023	$	30,046	$	5,498
Amounts arising during the period:
Net actuarial loss	12,706		7,027
Prior service cost	(61,244)		(20,039)
Amounts amortized to net periodic costs:
Net actuarial loss	(355)		(141)
Balance at January 1, 2024	$	(18,847)	$	(7,655)

The amounts in regulatory assets and accumulated other comprehensive income (loss) not yet recognized as components of net periodic benefit cost were as follows:

	Regulatory Assets				Accumulated Other Comprehensive Income (Loss)
	OPEB
(Thousands)	January 1, 2024		September 30, 2023		January 1, 2024		September 30, 2023
Net actuarial loss	$	42,397	$	30,046	$	12,384	$	5,498
Prior service cost	(61,244)		—		(20,039)		—
Total	$	(18,847)	$	30,046	$	(7,655)	$	5,498

The components of the net periodic cost for pension benefits, including the Company's Pension Equalization Plan, and OPEB costs (principally health care and life insurance) for employees and covered dependents were as follows:

	Pension								OPEB
	Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
	March 31,				March 31,				March 31,				March 31,
(Thousands)	2024		2023		2024		2023		2024		2023		2024		2023
Service cost	$	1,244	$	1,351	$	2,488	$	2,701	$	255	$	618	$	897	$	1,236
Interest cost	4,060		3,793		8,120		7,587		1,808		2,287		4,710		4,573
Expected return on plan assets	(5,086)		(4,993)		(10,173)		(9,986)		(2,020)		(1,681)		(3,878)		(3,361)
Recognized actuarial loss	30		75		59		150		1,255		—		1,751		—
Prior service cost (credit) amortization	15		26		31		51		(3,337)		—		(3,337)		—
Net periodic benefit cost	$	263	$	252	$	525	$	503	$	(2,039)	$	1,224	$	143	$	2,448

The Company does not expect to make additional contributions to fund the pension plans during fiscal 2024 based on current actuarial assumptions; however, funding requirements are uncertain and can depend significantly on changes in actuarial assumptions, returns on plan assets and changes in the demographics of eligible employees and covered dependents. In addition, as in the past, the Company may elect to make contributions in excess of the minimum required amount to the plans. There were no discretionary contributions made during the six months ended March 31, 2024 and 2023.

27

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

Assumptions

The weighted average assumptions used to determine the Company’s obligations are as follows:

	OPEB
	January 1, 2024		September 30, 2023
Obligations:
Discount rate	5.02%/5.01%	(1)	5.97%/5.94%	(1)
Compensation increase	3.00%/3.50%	(1)	3.00%/3.50%	(1)

(1)Percentages for represented and non-represented plans, respectively.

When measuring its projected benefit obligations, the Company uses an aggregate discount rate at which its obligation could be effectively settled. The Company determines a single weighted average discount rate based on a yield curve comprised of rates of return on a population of high quality debt issuances (AA- or better) whose cash flows (via coupons or maturities) match the timing and amount of its expected future benefit payments. The Company measures its service and interest costs using a disaggregated, or spot rate, approach. The Company applies the duration-specific spot rates from the full yield curve, as of the measurement date, to each year’s future benefit payments, which aligns the timing of the plans’ separate future cash flows to the corresponding spot rates on the yield curve.

11. INCOME TAXES

ASC Topic 740, Income Taxes requires the use of an estimated annual effective tax rate for purposes of determining the income tax provision during interim reporting periods. In calculating its estimated annual effective tax rate, the Company considers forecasted annual pre-tax income and estimated permanent book versus tax differences. Adjustments to the effective tax rate and management's estimates will occur as information and assumptions change.

Changes in tax laws or tax rates are recognized in the financial reporting period that includes the enactment date, the date in which the act is signed into law.

NJR evaluates its tax positions to determine the appropriate accounting and recognition of potential future obligations associated with uncertain tax positions. A tax benefit claimed, or expected to be claimed, on a tax return may be recognized only if it is more likely than not that the position will be upheld upon examination by the applicable taxing authority. Interest and penalties related to unrecognized tax benefits, if any, are recognized within income tax expense, and accrued interest and penalties are recognized within other noncurrent liabilities on the Unaudited Condensed Consolidated Balance Sheets.

Effective Tax Rate

The estimated annual effective tax rates were 21.7% and 22.1%, for the six months ended March 31, 2024 and 2023, respectively.

To the extent there are discrete tax items that are not included in the estimated annual effective tax rate, the actual reported effective tax rate may differ from the estimated annual effective tax rate. During the six months ended March 31, 2024 and 2023, discrete items totaled approximately $(1.2)M and $(0.6)M, respectively, related primarily to excess tax benefits associated with the vesting of share-based awards. NJR’s actual reported effective tax rates were 21.3% and 21.9% during the six months ended March 31, 2024 and 2023, respectively.

Other Tax Items

As of March 31, 2024 and September 30, 2023, the Company has tax credit carryforwards of approximately $179.5M and $191.2M, respectively, which each have a life of 20 years. The Company expects to utilize this entire carryforward prior to expiration, which would begin in fiscal 2037.

28

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

As of March 31, 2024 and September 30, 2023, the Company has state income tax net operating losses of approximately $609.1M and $631.2M, respectively. These state net operating losses have carry-forward periods dictated by the state in which they were incurred and range from seven to 20 years, with the majority expiring after 2036. The Company expects to utilize this entire carryforward prior to expiration, except for state income tax attributes for which the Company had a valuation allowance of approximately $0.7M as of both March 31, 2024 and September 30, 2023, for which the Company could not conclude were realizable on a more-likely-than-not basis.

In March 2024, the State of New Jersey commenced an examination of the Company's Corporate Business Tax return for NJR and certain subsidiaries for the fiscal periods ending September 30, 2019 through September 30, 2022.

12. LEASES

Lessee Accounting

The Company determines if an arrangement is a lease at inception based on whether the Company has the right to control the use of an identified asset, the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset. After the criteria are satisfied, the Company accounts for these arrangements as leases in accordance with ASC 842, Leases. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Most leases in which the Company is the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. The Company uses the implicit rate for agreements in which it is a lessor. The Company has not entered into any material agreements in which it is a lessor. Lease expense and lease income are recognized on a straight-line basis over the lease term for operating leases.

The Company’s lease agreements primarily consist of commercial solar land leases, storage and capacity leases, equipment and real property, including land and office facilities, office equipment and the sale leaseback of certain natural gas meters.

Certain leases contain escalation provisions for inflation metrics. The storage leases contain a variable payment component that relates to the change in the inflation metrics that are not known past the current payment period. The variable components of these lease payments are excluded from the lease payments that are used to determine the related right-of-use lease asset and liability. The variable portion of these leases are recognized as leasing expenses when they are incurred. The capacity lease payments are fully variable and based on the amount of natural gas stored in the storage caverns.

Generally, the Company’s solar land lease terms are between 20 and 50 years and may include multiple options to extend the terms for an additional five to 20 years. The Company’s office leases vary in duration, ranging from two to 11 years and may or may not include extension or early purchase options. The Company’s meter lease terms are between six and 10 years with purchase options available prior to the end of the term. Equipment leases include general office equipment that also vary in duration, with an average term of nine years. The Company's storage and capacity leases have assumed terms of 50 years to coincide with the expected useful lives of the cavern assets with which the leases are associated. The Company's lease terms may include options to extend, purchase the leased asset or terminate a lease and they are included in the lease liability calculation when it is reasonably certain that those options will be exercised. The Company has elected an accounting policy that exempts leases with an original term of one year or less from the recognition requirements of ASC 842, Leases.

The Company has lease agreements with lease and non-lease components and has elected the practical expedient to combine lease and non-lease components for certain classes of leases, such as office buildings, solar land leases and office equipment. Variable payments are not considered material to the Company. The Company’s lease agreements do not contain any material residual value guarantees, material restrictions or material covenants. In July 2021, NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, the effects of which are eliminated in consolidation.

29

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

The following table presents the Company's lease costs included in the Unaudited Condensed Consolidated Statements of Operations:

		Three Months Ended				Six Months Ended
		March 31,				March 31,
(Thousands)	Income Statement Location	2024		2023		2024		2023
Operating lease cost (1)	Operation and maintenance	$	2,524	$	2,307	$	5,064	$	4,724
Finance lease cost
Amortization of right-of-use assets	Depreciation and amortization	552		540		1,080		1,025
Interest on lease liabilities	Interest expense, net of capitalized interest	236		298		488		533
Total finance lease cost		788		838		1,568		1,558
Variable lease cost	Operation and maintenance	246		272		446		495
Total lease cost		$	3,558	$	3,417	$	7,078	$	6,777

(1)Net of capitalized costs.

The following table presents supplemental cash flow information related to leases:

	Six Months Ended
	March 31,
(Thousands)	2024		2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	4,199	$	3,652
Operating cash flows for finance leases	$	488	$	533
Financing cash flows for finance leases	$	3,875	$	3,577

Assets obtained or modified through operating lease liabilities totaled approximately $2.6M and $0.3M during the three months ended March 31, 2024 and 2023, respectively, and totaled approximately $4.1M and $0.4M during the six months ended March 31, 2024 and 2023, respectively.

Assets obtained or modified through other leases, including those which are finance leases and financing transactions for accounting purposes, totaled $8.4M during the six months ended March 31, 2023. There were no assets obtained or modified through finance leases during the three and six months ended March 31, 2024, and the three months ended March 31, 2023.

The following table presents the balance and classifications of the Company's right of use assets and lease liabilities included in the Unaudited Condensed Consolidated Balance Sheets:

(Thousands)	Balance Sheet Location	March 31, 2024		September 30, 2023
Assets
Noncurrent
Operating lease assets	Operating lease assets	$	177,176	$	175,740
Finance lease assets	Utility plant	27,168		28,248
Total lease assets		$	204,344	$	203,988
Liabilities
Current
Operating lease liabilities	Operating lease liabilities	$	4,780	$	4,772
Finance lease liabilities	Current maturities of long-term debt	8,816		8,477
Noncurrent
Operating lease liabilities	Operating lease liabilities	150,971		148,023
Finance lease liabilities	Long-term debt	18,661		22,875
Total lease liabilities		$	183,228	$	184,147

30

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

For operating lease assets and liabilities, the weighted average remaining lease term was 28.6 years and 29.2 years for and the weighted average discount rate used in the valuation over the remaining lease term was 3.6% and 3.5% for March 31, 2024 and September 30, 2023, respectively. For finance lease assets and liabilities, the weighted average remaining lease term was 3.4 years and 3.3 years and the weighted average discount rate used in the valuation over the remaining lease term was 3.3% and 2.7% as of March 31, 2024 and September 30, 2023, respectively.

13. COMMITMENTS AND CONTINGENT LIABILITIES

Cash Commitments

NJNG has entered into long-term contracts, expiring at various dates through September 2039, for the supply, transportation and storage of natural gas. These contracts include annual fixed charges of approximately $227.1M at current contract rates and volumes for the remainder of the fiscal year, which are recoverable through BGSS.

For the purpose of securing storage and pipeline capacity, ES enters into storage and pipeline capacity contracts, which require the payment of certain demand charges by ES to maintain the ability to access such natural gas storage or pipeline capacity, during a fixed time period, which generally ranges from one to 10 years. Demand charges are established by interstate storage and pipeline operators and are regulated by FERC. These demand charges represent commitments to pay storage providers or pipeline companies for the right to store and/or transport natural gas utilizing their respective assets.

Commitments as of March 31, 2024, for natural gas purchases and future demand fees for the next five fiscal year periods are as follows:

(Thousands)	2024		2025		2026		2027		2028		Thereafter
ES:
Natural gas purchases	$	11,801	$	1,964	$	—	$	—	$	—	$	—
Storage demand fees	8,685		15,743		11,413		5,440		3,491		6,780
Pipeline demand fees	31,418		55,870		42,117		25,837		15,301		17,011
Sub-total ES	$	51,904	$	73,577	$	53,530	$	31,277	$	18,792	$	23,791
NJNG:
Natural gas purchases	$	6,546	$	—	$	—	$	—	$	—	$	—
Storage demand fees	22,541		33,105		15,963		11,155		4,874		—
Pipeline demand fees	77,558		202,212		143,787		129,216		113,962		966,909
Sub-total NJNG	$	106,645	$	235,317	$	159,750	$	140,371	$	118,836	$	966,909
Total	$	158,549	$	308,894	$	213,280	$	171,648	$	137,628	$	990,700

Certain pipeline demand fees totaling approximately $4.0M per year, for which ES is the responsible party, are being paid for by the counterparty to a capacity release transaction beginning in November 2021, for a period of 10 years.

31

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

Legal Proceedings

Manufactured Gas Plant Remediation

NJNG is responsible for the remedial cleanup of certain former MGP sites, dating back to gas operations in the late 1800s and early 1900s, which contain contaminated residues from former gas manufacturing operations. NJNG is currently involved in administrative proceedings with the NJDEP and is participating in various studies and investigations by outside consultants, to determine the nature and extent of any such contaminated residues and to develop appropriate programs of remedial action, where warranted, under NJDEP regulations.

NJNG periodically, and at least annually, performs an environmental review of former MGP sites located in Atlantic Highlands, Berkeley, Long Branch, Manchester, Toms River, Freehold and Aberdeen, New Jersey, including a review of potential liability for investigation and remedial action. NJNG estimated at the time of the most recent review that total future expenditures at the former MGP sites for which it is responsible, including potential liabilities for natural resource damages that might be brought by the NJDEP for alleged injury to groundwater or other natural resources concerning these sites, will range from approximately $137.3M to $201.5M. NJNG’s estimate of these liabilities is based upon known facts, existing technology and enacted laws and regulations in place when the review was completed. Where it is probable that costs will be incurred, and the information is sufficient to establish a range of possible liability, NJNG accrues the most likely amount in the range. If no point within the range is more likely than the other, it is NJNG’s policy to accrue the lower end of the range. Accordingly, as of March 31, 2024, NJNG recorded a MGP remediation liability and a corresponding regulatory asset of approximately $157.8M on the Unaudited Condensed Consolidated Balance Sheets based on the most likely amount. The actual costs to be incurred by NJNG are dependent upon several factors, including final determination of remedial action, changing technologies and governmental regulations, the ultimate ability of other responsible parties to pay and insurance recoveries, if any.

NJNG recovers its remediation expenditures, including carrying costs, over rolling seven-year periods pursuant to a RAC approved by the BPU. As of March 31, 2024, $69.2M of previously incurred remediation costs, net of recoveries from customers and insurance proceeds, are included in regulatory assets on the Unaudited Condensed Consolidated Balance Sheets. NJNG will continue to seek recovery of MGP-related costs through the RAC. If any future regulatory position indicates that the recovery of such costs is not probable, the related non-recoverable costs would be charged to income in the period of such determination.

General

The Company is involved, and from time to time in the future may be involved, in a number of pending and threatened judicial, regulatory and arbitration proceedings relating to matters that arise in the ordinary course of business. In view of the inherent difficulty of predicting the outcome of litigation matters, particularly when such matters are in their early stages or where the claimants seek indeterminate damages, the Company cannot state with confidence what the eventual outcome of the pending litigation will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, fines or penalties related to each pending matter will be, if any. In accordance with applicable accounting guidance, the Company establishes accruals for litigation for those matters that present loss contingencies as to which it is both probable that a loss will be incurred and the amount of such loss can be reasonably estimated. The Company also discloses contingent matters for which there is a reasonable possibility of a loss. Based upon currently available information, the Company believes that the results of litigation that are currently pending, taken together, will not have a materially adverse effect on the Company’s financial condition, results of operations or cash flows. The actual results of resolving the pending litigation matters may be substantially higher than the amounts accrued.

The foregoing statements about the Company’s litigation are based upon the Company’s judgments, assumptions and estimates and are necessarily subjective and uncertain. The Company has a number of threatened and pending litigation matters at various stages.

32

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

14. REPORTING SEGMENT AND OTHER OPERATIONS DATA

The Company organizes its businesses based on a combination of factors, including its products and its regulatory environment. As a result, the Company manages its businesses through the following reporting segments and other operations: NJNG consists of regulated energy and off-system, capacity and storage management operations; CEV consists of capital investments in clean energy projects; ES consists of unregulated wholesale and retail energy operations; S&T consists of the Company’s investments in natural gas transportation and storage facilities; the HSO business operations consist of heating, cooling and water appliance sales, installations and services, other investments and general corporate activities.

Information related to the Company's various reporting segments and other operations during the three months ended March 31, 2024 and 2023, are as follows:

	Segments
(Thousands)	NJNG		CEV	ES		S&T	Subtotal		HSO	Elims	Total
2024
Operating revenues
External customers	$	462,863	9,325	148,604	(1)	22,369	$	643,161	14,752	—	$	657,913
Intercompany	$	338	—	(3,742)		673	$	(2,731)	153	2,578	$	—
Depreciation and amortization	$	27,464	6,931	56	(2)	6,218	$	40,669	271	(865)	$	40,075
Interest income (3)	$	517	—	143		2,518	$	3,178	332	(1,474)	$	2,036
Interest expense, net of capitalized interest	$	14,850	7,182	3,513		5,868	$	31,413	208	—	$	31,621
Income tax provision (benefit)	$	24,476	(1,594)	5,289		619	$	28,790	520	4,637	$	33,947
Equity in earnings of affiliates	$	—	—	—		85	$	85	—	653	$	738
Net financial earnings (loss)	$	107,095	(5,616)	37,644		1,981	$	141,104	384	(2,912)	$	138,576
Capital expenditures	$	97,710	11,317	—		13,523	$	122,550	130	—	$	122,680
2023
Operating revenues
External customers	$	400,500	14,406	196,553	(1)	19,303	$	630,762	13,265	—	$	644,027
Intercompany	$	338	—	177		1,584	$	2,099	183	(2,282)	$	—
Depreciation and amortization	$	25,319	6,465	62	(2)	6,020	$	37,866	224	—	$	38,090
Interest income (3)	$	376	—	380		1,684	$	2,440	734	(938)	$	2,236
Interest expense, net of capitalized interest	$	13,879	7,316	2,749		6,128	$	30,072	189	—	$	30,261
Income tax provision (benefit)	$	23,924	(3,005)	5,916		596	$	27,431	488	2,667	$	30,586
Equity in earnings of affiliates	$	—	—	—		977	$	977	—	154	$	1,131
Net financial earnings (loss)	$	100,697	(9,379)	21,125		2,450	$	114,893	813	(3,396)	$	112,310
Capital expenditures	$	92,600	13,706	—		10,122	$	116,428	760	—	$	117,188

(1)Includes sales to Canada for the ES segment, which are immaterial.

(2)The amortization of acquired wholesale energy contracts is excluded above and is included in natural gas purchases - nonutility on the Unaudited Condensed Consolidated Statements of Operations.

(3)Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations.

33

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

Information related to the Company's various reporting segments and other operations during the six months ended March 31, 2024 and 2023, are as follows:

	Segments
(Thousands)	NJNG		CEV	ES		S&T	Subtotal		HSO	Elims	Total
2024
Operating revenues
External customers	$	755,956	44,620	249,405	(1)	45,556	$	1,095,537	29,586	—	$	1,125,123
Intercompany	$	675	—	(4,875)		1,348	$	(2,852)	153	2,699	$	—
Depreciation and amortization	$	54,381	13,853	113	(2)	12,380	$	80,727	500	(865)	$	80,362
Interest income (3)	$	1,095	—	271		4,888	$	6,254	688	(2,880)	$	4,062
Interest expense, net of capitalized interest	$	29,601	14,629	6,639		11,801	$	62,670	424	—	$	63,094
Income tax provision	$	35,132	1,537	12,800		1,651	$	51,120	468	5,295	$	56,883
Equity in earnings of affiliates	$	—	—	—		1,078	$	1,078	—	1,320	$	2,398
Net financial earnings (loss)	$	158,539	4,906	45,475		5,621	$	214,541	(216)	(3,305)	$	211,020
Capital expenditures	$	177,425	37,083	—		21,308	$	235,816	1,486	—	$	237,302
2023
Operating revenues
External customers	$	757,909	27,198	509,952	(1)	45,017	$	1,340,076	27,518	—	$	1,367,594
Intercompany	$	675	—	8,560		2,708	$	11,943	196	(12,139)	$	—
Depreciation and amortization	$	50,209	12,041	119	(2)	11,962	$	74,331	442	—	$	74,773
Interest income (3)	$	789	—	649		3,085	$	4,523	1,388	(1,716)	$	4,195
Interest expense, net of capitalized interest	$	27,588	13,211	5,807		12,835	$	59,441	311	—	$	59,752
Income tax provision (benefit)	$	38,307	(4,842)	25,980		2,539	$	61,984	705	875	$	63,564
Equity in earnings of affiliates	$	—	—	—		1,886	$	1,886	—	191	$	2,077
Net financial earnings (loss)	$	155,361	(12,961)	73,658		8,693	$	224,751	784	(2,941)	$	222,594
Capital expenditures	$	174,671	57,699	—		29,841	$	262,211	900	—	$	263,111

(1)Includes sales to Canada for the ES segment, which are immaterial.

(2)The amortization of acquired wholesale energy contracts is excluded above and is included in natural gas purchases - nonutility on the Unaudited Condensed Consolidated Statements of Operations.

(3)Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations.

The Company's assets for the various reporting segments and business operations are detailed below:

	Segments								Intercompany
(Thousands)	NJNG		CEV	ES	S&T	Subtotal		HSO	Assets (1)	Total
March 31, 2024	$	4,527,458	1,124,392	104,094	1,012,899	$	6,768,843	171,594	(293,060)	$	6,647,377
September 30, 2023	$	4,414,829	1,128,577	123,775	1,011,959	$	6,679,140	171,275	(312,919)	$	6,537,496

(1)Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation.

34

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

The Chief Executive Officer, who uses NFE as a measure of profit or loss in measuring the results of the Company's reporting segments and other business operations, is the chief operating decision maker of the Company. A reconciliation of consolidated NFE to consolidated net income is as follows:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands)	2024		2023		2024		2023
Net financial earnings	$	138,576	$	112,310	$	211,020	$	222,594
Less:
Unrealized loss (gain) on derivative instruments and related transactions	25,457		13,971		20,057		(17,532)
Tax effect	(6,049)		(3,320)		(4,767)		4,167
Effects of economic hedging related to natural gas inventory	(2,845)		(11,203)		(19,073)		12,769
Tax effect	676		2,662		4,533		(3,035)
Gain on equity method investment	—		(200)		—		(200)
Tax effect	—		50		—		50
NFE tax adjustment	525		103		47		207
Net income	$	120,812	$	110,247	$	210,223	$	226,168

The Company uses derivative instruments as economic hedges of purchases and sales of physical natural gas inventory. For GAAP purposes, these derivatives are recorded at fair value and related changes in fair value are included in reported earnings. Revenues and cost of natural gas related to physical natural gas flow are recognized when the natural gas is delivered to customers. Consequently, there is a mismatch in the timing of earnings recognition between the economic hedges and physical natural gas flows. Timing differences occur in two ways:

•unrealized gains and losses on derivatives are recognized in reported earnings in periods prior to physical natural gas inventory flows; and

•unrealized gains and losses of prior periods are reclassified as realized gains and losses when derivatives are settled in the same period as physical natural gas inventory movements occur.

NFE is a measure of the earnings based on eliminating these timing differences, to effectively match the earnings effects of the economic hedges with the physical sale of natural gas, SRECs and foreign currency contracts. Consequently, to reconcile between net income and NFE, current period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item. Realized derivative gains and losses are also included in current period net income. However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the derivatives with realized margins on physical natural gas flows. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE. The Company also calculates a quarterly tax adjustment based on an estimated annual effective tax rate for NFE purposes.

15. RELATED PARTY TRANSACTIONS

Effective April 2020, NJNG entered into a 5-year agreement for 3 Bcf of firm storage capacity with Steckman Ridge, which expires on March 31, 2025. Under the terms of the agreement, NJNG incurs demand fees, at market rates, of approximately $9.3M annually, a portion of which is eliminated in consolidation. These fees are recoverable through NJNG’s BGSS mechanism and are included as a component of regulatory assets.

35

New Jersey Resources Corporation

Part I

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)                     

ES may periodically enter into storage or park and loan agreements with its affiliated FERC-jurisdictional natural gas storage facility, Steckman Ridge. As of March 31, 2024, ES entered into transactions with Steckman Ridge for varying terms, all of which expire by March 31, 2027.

Demand fees, net of eliminations, associated with Steckman Ridge were as follows:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands)	2024		2023		2024		2023
NJNG	$	1,585	$	1,615	$	3,240	$	3,270
ES	214		155		438		327
Total	$	1,799	$	1,770	$	3,678	$	3,597

The following table summarizes demand fees payable to Steckman Ridge as of:

(Thousands)	March 31, 2024		September 30, 2023
NJNG	$	778	$	775
ES	81		84
Total	$	859	$	859

NJNG and ES enter into various AMAs, the effects of which are eliminated in consolidation. Under the terms of these agreements, NJNG releases certain transportation and storage contracts to ES. NJNG and ES had one AMA, which expired on March 31, 2024, and was not renewed.

NJNG entered into two transportation agreements with Adelphia, each for committed capacity of 130,000 Dekatherms per day. The first is for 5 years in Zone South with an expiration date of August 8, 2027, and the second is for 15 years in Zone North, which began on November 1, 2023, with an expiration date of October 31, 2038.

ES had a 5-year agreement for 3 Bcf of firm storage capacity with Leaf River, that expired on March 31, 2024, the effects of which are eliminated in consolidation, and was not renewed.

NJNG and CEV entered into a 15-year sublease and PPA related to an onsite solar array and the related energy output at the Company’s headquarters in Wall, New Jersey, with an expiration date of March 1, 2036, the effects of which are immaterial to the consolidated financial statements.

NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, with an expiration date of July 1, 2037, the effects of which are eliminated in consolidation.

NJNG and CEV entered into a 20-year sublease and PPA related to an onsite solar array and the related energy output at the Company’s liquefied natural gas plant in Howell, New Jersey, with an expiration date of June 1, 2042, the effects of which are immaterial to the consolidated financial statements.

The intercompany profits for certain transactions between NJNG and ES and NJNG and Adelphia are not eliminated in accordance with ASC 980, Regulated Operations.

36

New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS                                                                                                                                                                                  

Critical Accounting Estimates

A summary of our critical accounting policies is included in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the period ended September 30, 2023. Our critical accounting policies have not changed from those reported in the 2023 Annual Report on Form 10-K.

Recently Issued Accounting Standards

Refer to Note 2. Summary of Significant Accounting Policies for discussion of recently issued accounting standards.

Management's Overview

Consolidated

NJR is a diversified energy services holding company providing retail natural gas service in New Jersey and wholesale natural gas and related energy services to customers in the U.S. and Canada. In addition, we invest in clean energy projects, storage and transportation assets and provide various repair, sales and installation services. A more detailed description of our organizational structure can be found in Item 1. Business of our 2023 Annual Report on Form 10-K.

Reporting Segments

We have four primary reporting segments as presented in the chart below:

In addition to our four reporting segments above, we have nonutility operations that either provide corporate support services or do not meet the criteria to be treated as a separate reporting segment. These operations, which comprise HSO, include: appliance repair services, sales and installations at NJRHS and commercial real estate holdings at Commercial Realty & Resources Corp.

37

New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Operating Results

Net income (loss) by reporting segment and other business operations, which are discussed in detail within the operating results sections of each reporting segment and other business operations, are as follows:

	Three Months Ended								Six Months Ended
	March 31,								March 31,
(Thousands)	2024				2023				2024				2023
Net income (loss)
NJNG	$	107,095	89	%	$	100,697	91	%	$	158,539	75	%	$	155,361	69	%
CEV	(5,616)		(5)		(9,379)		(8)		4,906		2		(12,961)		(6)
ES	17,028		14		19,046		17		40,961		20		83,607		37
S&T	1,981		2		2,600		2		5,621		3		8,843		4
HSO	384		—		813		1		(216)		—		784		—
Eliminations (1)	(60)		—		(3,530)		(3)		412		—		(9,466)		(4)
Total	$	120,812	100	%	$	110,247	100	%	$	210,223	100	%	$	226,168	100	%

(1)    Consists of transactions between subsidiaries that are eliminated in consolidation.

Consolidated net income increased approximately $10.6M during the three months ended March 31, 2024, compared with the three months ended March 31, 2023, due primarily to the following factors:

•$6.4M increase in earnings at NJNG due to increased revenues resulting from an increase in customers and higher BGSS incentives; and

•$3.8M increase in earnings at CEV related to the recognition of ITCs associated with solar sale leaseback financing transactions.

Consolidated net income decreased approximately $15.9M during the six months ended March 31, 2024, compared with the six months ended March 31, 2023, due primarily to the following factors:

•$42.6M decrease in earnings at ES due to a period of higher volatility in natural gas prices related to Winter Storm Elliott in December 2022 that did not reoccur; partially offset by

•$17.9M increase in earnings at CEV due to higher SREC and TREC sales and an increase in the recognition of ITCs associated with solar sale leaseback financing transactions.

The primary drivers of the changes noted above are described in more detail in the individual reporting segment and other business operations discussions.

Assets by reporting segment and operations are as follows:

(Thousands)	March 31, 2024				September 30, 2023
Assets
NJNG	$	4,527,458	68	%	$	4,414,829	68	%
CEV	1,124,392		17		1,128,577		17
ES	104,094		2		123,775		2
S&T	1,012,899		15		1,011,959		15
HSO	171,594		3		171,275		3
Intercompany assets (1)	(293,060)		(5)		(312,919)		(5)
Total	$	6,647,377	100	%	$	6,537,496	100	%

(1)Consists of transactions between subsidiaries that are eliminated in consolidation.

Consolidated assets increased approximately $109.9M as of March 31, 2024, compared with September 30, 2023, due primarily to the following factors:

•$115.5M increase in utility plant expenditures, net at NJNG;

•142.9M increase in receivables primarily at NJNG; and

•$28.0M increase in nonutility plant and equipment, net at CEV and S&T; partially offset by

•$118.5M decrease in gas in storage at NJNG and ES;

•$49.7M decrease in noncurrent regulatory assets due primarily to the remeasurement of the Company's other postretirement benefits at NJNG; and

•$24.7M decrease in prepaid taxes at NJNG and HSO.

38

New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Non-GAAP Financial Measures

Our management uses NFE, a non-GAAP financial measure, when evaluating our operating results. ES economically hedges its natural gas inventory with financial derivative instruments. NFE is a measure of the earnings based on eliminating timing differences surrounding the recognition of certain gains or losses, to effectively match the earnings effects of the economic hedges with the physical sale of natural gas and, therefore, eliminates the impact of volatility to GAAP earnings associated with the derivative instruments. To the extent we utilize forwards, futures, or other derivatives to hedge forecasted SREC production, unrealized gains and losses are also eliminated from NFE. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE.

GAAP requires us, during the interim periods, to estimate our annual effective tax rate and use this rate to calculate the year-to-date tax provision. We also determine an annual estimated effective tax rate for NFE purposes and calculate a quarterly tax adjustment based on the differences between our forecasted net income and our forecasted NFE for the fiscal year. Since the annual estimated effective tax rate is based on certain forecasted assumptions, the rate and resulting NFE are subject to change. No adjustment is needed during the fourth quarter, since the actual effective tax rate is calculated at year end.

Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for or a replacement of, the comparable GAAP measure and should be read in conjunction with those GAAP results. Below is a reconciliation of consolidated net income, the most directly comparable GAAP measure, to NFE:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands, except per share data)	2024		2023		2024		2023
Net income	$	120,812	$	110,247	$	210,223	$	226,168
Add:
Unrealized loss (gain) on derivative instruments and related transactions	25,457		13,971		20,057		(17,532)
Tax effect	(6,049)		(3,320)		(4,767)		4,167
Effects of economic hedging related to natural gas inventory (1)	(2,845)		(11,203)		(19,073)		12,769
Tax effect	676		2,662		4,533		(3,035)
Gain on equity method investment	—		(200)		—		(200)
Tax effect	—		50		—		50
NFE tax adjustment	525		103		47		207
Net financial earnings	$	138,576	$	112,310	$	211,020	$	222,594
Basic earnings per share	$	1.23	$	1.14	$	2.14	$	2.34
Add:
Unrealized loss (gain) on derivative instruments and related transactions	0.25		0.14		0.20		(0.18)
Tax effect	(0.06)		(0.03)		(0.05)		0.04
Effects of economic hedging related to natural gas inventory (1)	(0.03)		(0.12)		(0.19)		0.13
Tax effect	0.01		0.03		0.05		(0.03)
NFE tax adjustment	0.01		—		—		—
Basic net financial earnings per share	$	1.41	$	1.16	$	2.15	$	2.30

(1)Effects of hedging natural gas inventory transactions where the economic impact is realized in a future period.

39

New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

NFE by reporting segment and other business operations, which are discussed in detail within the operating results sections of each reporting segment and other business operations, is summarized as follows:

	Three Months Ended								Six Months Ended
	March 31,								March 31,
(Thousands)	2024				2023				2024				2023
Net financial earnings (loss)
NJNG	$	107,095	77	%	$	100,697	89	%	$	158,539	75	%	$	155,361	70	%
CEV	(5,616)		(4)		(9,379)		(8)		4,906		2		(12,961)		(6)
ES	37,644		27		21,125		19		45,475		22		73,658		33
S&T	1,981		2		2,450		2		5,621		3		8,693		4
HSO	384		—		813		1		(216)		—		784		—
Eliminations (1)	(2,912)		(2)		(3,396)		(3)		(3,305)		(2)		(2,941)		(1)
Total	$	138,576	100	%	$	112,310	100	%	$	211,020	100	%	$	222,594	100	%

(1)     Consists of transactions between subsidiaries that are eliminated in consolidation.

Consolidated NFE increased approximately $26.3M during the three months ended March 31, 2024, compared with the three months ended March 31, 2023, due primarily to the following factors:

•$16.5M increase at ES due to higher Financial Margin resulting from periods of cold weather during January 2024;

•$6.4M increase in earnings at NJNG; and

•$3.8M increase in earnings at CEV, as previously discussed.

Consolidated NFE decreased approximately $11.6M during the six months ended March 31, 2024, compared with the six months ended March 31, 2023, due primarily to the following factors:

•$28.2M decrease at ES due to higher volatility in natural gas prices in the prior year, as previously discussed; partially offset by

•$17.9M increase in earnings at CEV, as previously discussed.

Natural Gas Distribution

Overview

Natural Gas Distribution is comprised of NJNG, a natural gas utility that provides regulated natural gas service throughout Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey to approximately 581,600 residential and commercial customers in its service territory and also participates in the off-system sales and capacity release markets. The business is subject to various risks, which may include but are not limited to impacts to customer growth and customer usage, customer collections, the timing and costs of capital expenditures and construction of infrastructure projects, operating and financing costs, fluctuations in commodity prices and customer conservation efforts. In addition, NJNG may be subject to adverse economic conditions such as inflation and rising natural gas costs, certain regulatory actions, environmental remediation and severe weather conditions. It is often difficult to predict the impact of events or trends associated with these risks.

NJNG’s business is seasonal by nature, as weather conditions directly influence the volume of natural gas delivered to customers on an annual basis. Specifically, customer demand substantially increases during the winter months when natural gas is used for heating purposes. As a result, NJNG generates most of its natural gas distribution revenues during the first and second fiscal quarters and is subject to variations in earnings and working capital during the fiscal year.

As a regulated company, NJNG is required to recognize the impact of regulatory decisions on its financial statements. See Note 4. Regulation in the accompanying Unaudited Condensed Consolidated Financial Statements for a more detailed discussion of regulatory actions, including filings related to programs and associated expenditures, as well as rate requests related to recovery of capital investments and operating costs.

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New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

NJNG’s operations are managed with the goal of providing safe and reliable service, growing its customer base, diversifying its Utility Gross Margin, promoting clean energy programs and mitigating the risks discussed above.

Base Rate Case

On January 31, 2024, NJNG filed a base rate case with the BPU requesting a natural gas revenue increase of $222.6M including a recovery of infrastructure investments, a change in the Company’s overall rate of return on rate base to 7.57% and a change in the return on common equity to 10.42%.

Infrastructure Projects

NJNG has significant annual capital expenditures associated with the management of its natural gas distribution and transmission system, including new utility plant expenditures associated with customer growth and its associated pipeline integrity management and infrastructure programs. Below is a summary of NJNG’s capital expenditures, including accruals, for the six months ended March 31, 2024, and estimates of expected investments for fiscal 2024 and 2025:

Estimated capital expenditures are reviewed on a regular basis and may vary based on the ongoing effects of regulatory oversight, environmental regulations, unforeseen events and the ability to access capital.

NJNG continues to implement BPU-approved infrastructure projects that are designed to enhance the reliability and integrity of NJNG’s natural gas distribution system.

Infrastructure Investment Program

In October 2020, the BPU approved NJNG’s five-year IIP filing for $150.0M of transmission and distribution investments, effective November 1, 2020, which will be recovered through annual filings to adjust base rates.

In September 2023, the BPU approved NJNG's annual IIP filing, which requested a rate increase for capital expenditures of $28.2M through June 30, 2023, which resulted in a $3.2M revenue increase, effective October 1, 2023.

On March 28, 2024, NJNG submitted its annual IIP filing to the BPU requesting a rate increase for capital expenditures of $43.5M through June 30, 2024, which will result in a $5.6M revenue increase, with a proposed effective date of October 1, 2024.

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New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Customer Growth

In conducting NJNG's business, management focuses on factors it believes may have significant influence on its future financial results. NJNG's policy is to work with all stakeholders, including customers, regulators and policymakers, to achieve favorable results. These factors include the rate of NJNG's customer growth in its service territory, which can be influenced by political and regulatory policies, the delivered cost of natural gas compared with competing fuels, interest rates and general economic and business conditions.

NJNG's total customers include the following:

	March 31, 2024	March 31, 2023
Firm customers
Residential	525,391	516,453
Commercial, industrial & other	33,108	33,160
Residential transport	14,962	17,173
Commercial transport	8,030	7,604
Total firm customers	581,491	574,390
Other	109	110
Total customers	581,600	574,500

During the six months ended March 31, 2024 and 2023, NJNG added 4,058 and 4,064 new customers, respectively. NJNG expects new customer additions, and those customers who added additional natural gas services to their premises to contribute approximately $3.4M of incremental Utility Gross Margin on an annualized basis.

Energy Efficiency Programs

SAVEGREEN conducts home energy audits and provides various grants, incentives and financing alternatives designed to encourage the installation of high-efficiency heating and cooling equipment and other energy efficiency upgrades. Depending on the specific incentive or approval, NJNG recovers costs associated with the programs over a three- to 10-year period through a tariff rider mechanism. In March 2021, the BPU approved a three-year SAVEGREEN program consisting of approximately $126.1M of direct investment, $109.4M in financing options, and approximately $23.4M in O&M.

In September 2023, the BPU approved an increase to the energy efficiency rate for the SAVEGREEN programs established from 2010 through the present, which increased annual recoveries by $9.0M, effective October 1, 2023.

On November 9, 2023, NJNG filed a letter of petition seeking BPU approval to extend NJNG’s current SAVEGREEN program through December 31, 2024, with an additional $76.9M in order to meet customer demand for this program, which was approved by the BPU on April 30, 2024.

On December 1, 2023, NJNG filed a petition seeking BPU approval of its 2024 SAVEGREEN program, which would support new energy efficiency, demand response and building decarbonization start-up programs for two and a half-years starting January 1, 2025 through June 30, 2027. The 2024 SAVEGREEN program filing, which totals $482.4M, includes $245.1M of direct investment, $217.2M in financing options and $20.1M in O&M.

Program recoveries from customers during the six months ended March 31, 2024 and 2023, were $15.1M and $8.5M, respectively. The recovery includes a weighted average cost of capital that ranges from 6.84% to 6.9%, with a return on equity of 9.6% to 9.75%.

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New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Conservation Incentive Program/BGSS

The CIP facilitates normalizing NJNG’s Utility Gross Margin for variances not only due to weather but also for other factors affecting customer usage, such as conservation and energy efficiency. Recovery of Utility Gross Margin for the non-weather variance through the CIP is limited to the amount of certain natural gas supply cost savings achieved and is subject to a variable margin revenue test. Additionally, recovery of the CIP Utility Gross Margin is subject to an annual earnings test. An annual review of the CIP must be filed by June 1, coincident with NJNG’s annual BGSS filing, during which NJNG can request rate changes to the CIP.

NJNG's total utility firm gross margin includes the following adjustments related to the CIP mechanism:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands)	2024		2023		2024		2023
Weather (1)	$	22,911	$	36,946	$	33,527	$	39,026
Usage	5,734		(418)		6,682		1,068
Total	$	28,645	$	36,528	$	40,209	$	40,094

(1)Compared with the 20-year average, weather was 12.4% and 10.8% warmer-than-normal during the three and six months ended March 31, 2024 and 21.2% and 13.1% warmer-than-normal during the three and six months ended March 31, 2023.

Recovery of Natural Gas Costs

NJNG’s cost of natural gas is passed through to our customers, without markup, by applying NJNG’s authorized BGSS rate to actual therms delivered. There is no Utility Gross Margin associated with BGSS costs; therefore, changes in such costs do not impact NJNG’s earnings. NJNG monitors its actual natural gas costs in comparison to its BGSS rates to manage its cash flows associated with its allowed recovery of natural gas costs, which is facilitated through BPU-approved deferred accounting and the BGSS pricing mechanism. Accordingly, NJNG occasionally adjusts its periodic BGSS rates or can issue credits or refunds, as appropriate, for its residential and small commercial customers when the commodity cost varies from the existing BGSS rate. BGSS rates for its large commercial customers are adjusted monthly based on NYMEX prices.

NJNG’s residential and commercial markets are currently open to competition, and its rates are segregated between BGSS (i.e., natural gas commodity) and delivery (i.e., transportation) components. NJNG earns Utility Gross Margin through the delivery of natural gas to its customers and, therefore, is not negatively affected by customers who use its transportation service and purchase natural gas from another supplier. Under an existing order from the BPU, BGSS can be provided by suppliers other than the state’s natural gas utilities; however, customers who purchase natural gas from another supplier continue to use NJNG for transportation service.

In April 2023, the BPU approved on a final basis, NJNG’s February 2023 filing for a reduction to the BGSS rate, which reduced annual recoveries by approximately $29.9M, effective March 1, 2023. NJNG’s February 2023 filing also advised the BPU of a bill credit for residential and small commercial customers. Total bill credits given back to customers from March 2023 through May 2023, totaled approximately $32.4M.

In September 2023, the BPU approved, on a provisional basis, NJNG's annual BGSS filing to decrease the annual revenues credited to BGSS by approximately $38.6M, a $7.4M annual decrease related to its balancing charge, and a $27.0M increase to CIP rates, effective October 1, 2023, which was approved on a final basis by the BPU on April 30, 2024. The balancing charge rate includes the cost of balancing natural gas deliveries with customer usage for sales and transportation customers, and balancing charge revenues are credited to BGSS.

BGSS Incentive Programs

NJNG is eligible to receive financial incentives for reducing BGSS costs through a series of Utility Gross Margin-sharing programs that include off-system sales, capacity release and storage incentive programs. These programs are designed to encourage better utilization and hedging of NJNG’s natural gas supply, transportation and storage assets. Depending on the program, NJNG shares 80 or 85% of Utility Gross Margin generated by these programs with firm customers. Utility Gross Margin from incentive programs was approximately $7.9M and $5.8M during the three months ended March 31, 2024 and 2023, respectively, and $13.3M and $14.5M during the six months ended March 31, 2024 and 2023, respectively.

43

New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Hedging

In order to provide relative price stability to its natural gas supply portfolio, NJNG employs a hedging strategy with the goal of having at least 75% of the Company's projected winter periodic BGSS natural gas sales volumes hedged by each November 1 and at least 25% of the projected periodic BGSS natural gas sales hedged for the following April through March period. The hedging goal is typically achieved with gas in storage and the use of financial instruments to hedge storage injections. NJNG may also use various financial instruments including futures, swaps, options and weather related products to hedge its future delivery obligations.

Commodity Prices

NJNG is affected by the price of natural gas, which can have a significant impact on our cash flows, short-term financing costs, the price of natural gas charged to our customers through the BGSS clause, our ability to collect accounts receivable, which impacts our bad debt expense, and our ability to maintain a competitive advantage over other energy sources. Natural gas commodity prices are shown in the graph below, which illustrates the daily natural gas prices(1) in the Northeast market region, also known as TETCO M-3.

(1) Data sourced from Standard & Poor's Financial Services, LLC Global Platts.

The maximum price per MMBtu was $20.98 and $32.46 and the minimum price was $0.89 and $0.67 for the six months ended March 31, 2024 and 2023, respectively. A more detailed discussion of the impacts of the price of natural gas on operating revenues, natural gas purchases and cash flows can be found in the Operating Results and Cash Flow sections of Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

Societal Benefits Charge

NJNG’s qualifying customers are eligible for the USF program, which is administered by the New Jersey Department of Community Affairs, to help make energy bills more affordable.

In April 2023, the BPU approved, NJNG's annual SBC filing, which included an increase to the RAC annual recoveries of approximately $3.7M and a decrease to the NJCEP annual recoveries of approximately $0.9M, effective May 1, 2023.

In September 2023, the BPU approved NJNG's annual USF filing, which included an increase to the statewide USF rate, of approximately $0.7M, effective October 1, 2023.

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New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

On March 20, 2024, the BPU approved NJNG's annual SBC filing of RAC expenditures through June 30, 2023, which included an increase to the RAC annual recoveries of approximately $2.4M and an increase to the NJCEP annual recoveries of approximately $5.5M, effective April 1, 2024.

Environmental Remediation

NJNG is responsible for the environmental remediation of former MGP sites, which contain contaminated residues from former gas manufacturing operations that ceased operating at these sites by the mid-1950s and, in some cases, had been discontinued many years earlier. Actual MGP remediation costs may vary from management’s estimates due to the developing nature of remediation requirements, regulatory decisions by the NJDEP and related litigation. NJNG reviews these costs at the end of each fiscal year and adjusts its liability and corresponding regulatory asset as necessary to reflect its expected future remediation obligation. Accordingly, NJNG recognized a regulatory asset and an obligation of $157.8M as of March 31, 2024, a decrease of $11.6M compared with the prior fiscal period. See Note 13. Commitments and Contingent Liabilities for more details.

Other regulatory filings and a more detailed discussion of the filings in this section can be found in Note 4. Regulation in the accompanying Unaudited Condensed Consolidated Financial Statements.

Operating Results

NJNG's operating results are as follows:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands)	2024		2023		2024		2023
Operating revenues (1)	$	463,201	$	400,838	$	756,631	$	758,584
Operating expenses
Natural gas purchases (2)(3)	206,675		158,694		325,119		343,465
Operation and maintenance	59,554		58,475		114,259		108,196
Regulatory rider expense (4)	29,229		23,154		48,418		41,405
Depreciation and amortization	27,464		25,319		54,381		50,209
Total operating expenses	322,922		265,642		542,177		543,275
Operating income	140,279		135,196		214,454		215,309
Other income, net	6,142		3,304		8,818		5,947
Interest expense, net of capitalized interest	14,850		13,879		29,601		27,588
Income tax provision	24,476		23,924		35,132		38,307
Net income	$	107,095	$	100,697	$	158,539	$	155,361

(1)Includes nonutility revenue of approximately $0.3M and $0.7M for both the three and six months ended March 31, 2024 and 2023, for lease agreements with various NJR subsidiaries leasing office space from NJNG at the Company’s headquarters, which are eliminated in consolidation.

(2)Includes the purchased cost of the natural gas, fees paid to pipelines and storage facilities, adjustments as a result of BGSS incentive programs and hedging transactions. These expenses are passed through to customers and are offset by corresponding revenues.

(3)Includes related party transactions of approximately $2.3M for both the three months ended March 31, 2024 and 2023, and $4.7M and $4.6M for the six months ended March 31, 2024 and 2023, respectively, a portion of which is eliminated in consolidation.

(4)Consists of expenses associated with state-mandated programs, the RAC and energy efficiency programs, and are calculated on a per-therm basis. These expenses are passed through to customers and are offset by corresponding revenues.

Operating Revenues and Natural Gas Purchases

Operating revenues increased 15.6% and natural gas purchases increased 30.2% during the three months ended March 31, 2024, compared with the three months ended March 31, 2023. Operating revenues decreased 0.3% and natural gas purchases decreased 5.3% during the six months ended March 31, 2024, compared with the six months ended March 31, 2023.

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New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

The factors contributing to the increases and decreases in operating revenues and natural gas purchases are as follows:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
	2024 v. 2023				2024 v. 2023
(Thousands)	Operating revenues		Natural gas purchases		Operating revenues		Natural gas purchases
BGSS incentives	$	38,274	$	36,166	$	2,055	$	3,252
Firm sales	22,938		8,931		14,122		3,861
Average BGSS rates	(28,556)		(28,556)		(56,585)		(56,585)
Bill credits	31,581		31,581		31,581		31,581
CIP adjustments	(7,883)		—		115		—
Riders and other (1)	6,009		(141)		6,759		(455)
Total increase (decrease)	$	62,363	$	47,981	$	(1,953)	$	(18,346)

(1)Rider and other includes changes in rider rates, including those related to Energy Efficiency, NJCEP and other programs, which is offset in regulatory rider expense.

Non-GAAP Financial Measures

Management uses Utility Gross Margin, a non-GAAP financial measure, when evaluating the operating results of NJNG. NJNG's Utility Gross Margin is defined as operating revenues less natural gas purchases, sales tax, and regulatory rider expenses. This measure differs from gross margin as presented on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization. Utility Gross Margin may also not be comparable to the definition of gross margin used by others in the natural gas distribution business and other industries. Management believes that Utility Gross margin provides a meaningful basis for evaluating utility operations since natural gas costs, sales tax and regulatory rider expenses are included in operating revenues and passed through to customers and, therefore, have no effect on Utility Gross Margin. Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, the comparable GAAP measure.

Utility Gross Margin

A reconciliation of gross margin, the closest GAAP financial measure to NJNG's Utility Gross Margin, is as follows:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands)	2024		2023		2024		2023
Operating revenues	$	463,201	$	400,838	$	756,631	$	758,584
Less:
Natural gas purchases	206,675		158,694		325,119		343,465
Operation and maintenance (1)	29,558		30,711		55,341		57,005
Regulatory rider expense	29,229		23,154		48,418		41,405
Depreciation and amortization	27,464		25,319		54,381		50,209
Gross margin	170,275		162,960		273,372		266,500
Add:
Operation and maintenance (1)	29,558		30,711		55,341		57,005
Depreciation and amortization	27,464		25,319		54,381		50,209
Utility Gross Margin	$	227,297	$	218,990	$	383,094	$	373,714

(1)Excludes SG&A of approximately $30.0M and $27.8M for the three months ended March 31, 2024 and 2023, respectively, and $58.9M and $51.2M for the six months ended March 31, 2024 and 2023, respectively.

46

New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Utility Gross Margin consists of three components:

•Utility firm gross margin generated from only the delivery component of either a sales tariff or a transportation tariff from residential and commercial customers who receive natural gas service from NJNG;

•BGSS incentive programs, where revenues generated or savings achieved from BPU-approved off-system sales, capacity release or storage incentive programs are shared between customers and NJNG; and

•Utility Gross Margin generated from off-tariff customers, as well as interruptible customers.

The following provides more information on the components of Utility Gross Margin and associated throughput (Bcf) of natural gas delivered to customers:

	Three Months Ended						Six Months Ended
	March 31,						March 31,
	2024			2023			2024			2023
($ in thousands)	Margin		Bcf	Margin		Bcf	Margin		Bcf	Margin		Bcf
Utility Gross Margin/Throughput
Residential	$	163,495	21.0	$	157,276	19.5	$	271,532	34.9	$	261,294	34.2
Commercial, industrial and other	28,676		3.9	30,066		3.8	49,507		6.5	50,845		6.5
Firm transportation	26,490		4.7	25,208		4.5	47,254		8.3	45,688		8.5
Total utility firm gross margin/throughput	218,661		29.6	212,550		27.8	368,293		49.7	357,827		49.2
BGSS incentive programs	7,886		37.1	5,778		20.7	13,267		64.3	14,464		38.6
Interruptible/off-tariff agreements	750		3.3	662		3.0	1,534		6.6	1,423		6.6
Total Utility Gross Margin/Throughput	$	227,297	70.0	$	218,990	51.5	$	383,094	120.6	$	373,714	94.4

Utility Firm Gross Margin

Utility firm gross margin increased approximately $6.1M and $10.5M during the three and six months ended March 31, 2024, compared with the three and six months ended March 31, 2023, due primarily to increased residential customers.

The factors contributing to the change in Utility Gross Margin generated by BGSS incentive programs are as follows:

	Three Months Ended			Six Months Ended
	March 31,			March 31,
(Thousands)	2024 v. 2023			2024 v. 2023
Off-system sales		$	2,492		$	(434)
Storage		(479)			(798)
Capacity release		95			35
Total increase (decrease)		$	2,108		$	(1,197)

BGSS incentive programs increased during the three months ended March 31, 2024, compared with the three months ended March 31, 2023, due primarily to increased margins from off-system sales due to increased market volatility during periods of cold weather during January 2024. BGSS incentive programs decreased during the six months ended March 31, 2024, compared with the six months ended March 31, 2023, due primarily to decreased margins from storage due to reduced market volatility and off-system sales due to less volatile natural gas prices related to Winter Storm Elliott in December 2022 that did not reoccur.

Net Income

Net income increased approximately $6.4M during the three months ended March 31, 2024, compared with the three months ended March 31, 2023, due primarily to the following factors:

•$8.3M increase in Utility Gross Margin, as previously discussed; and

•$2.8M increase in other income, net due primarily to the remeasurement of the Company's other postretirement benefits along with increased AFUDC equity; partially offset by

•$2.1M increase in depreciation expense as a result of additional utility plant being placed into service; and

•$1.1M increase in O&M due to higher employee related expenses and information technology costs.

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New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Net income increased approximately $3.2M during the six months ended March 31, 2024, compared with the six months ended March 31, 2023, due primarily to the following factors:

•$9.4M increase in Utility Gross Margin; and

•$2.9M increase in other income, net; partially offset by

•$6.1M increase in O&M; and

•$4.2M increase in depreciation expense, as previously discussed.

Clean Energy Ventures

Overview

CEV actively pursues opportunities in the renewable energy markets. CEV enters into various agreements to install solar net-metered systems for residential and commercial customers, as well as large commercial grid-connected projects. In addition, CEV enters into various long-term agreements, including PPAs, to supply energy from commercial solar projects.

Capital expenditures related to clean energy projects are subject to change due to a variety of factors that may affect our ability to commence operations at these projects on a timely basis or at all, including logistics associated with the start-up of residential and commercial solar projects, such as timing of construction schedules, the permitting and regulatory process, any delays related to electric grid interconnection, economic trends, unforeseen events and the ability to access capital or allocation of capital to other investments or business opportunities. CEV is also subject to various risks, which may include impacts to residential solar customer growth and customer collections, our ability to identify and develop commercial solar asset investments, impacts to our supply chain and our ability to source materials for construction.

The primary contributors toward the value of qualifying clean energy projects are tax incentives and RECs. Changes in the federal statutes related to the ITC and/or relevant state legislation and regulatory policies affecting the market for solar renewable energy credits, could significantly affect future results.

Solar projects placed in service and related expenditures are as follows:

	Three Months Ended
	March 31,
($ in Thousands)	2024				2023
Placed in service	Projects	MW	Costs		Projects	MW	Costs
Grid-connected (1)	—	—	$	—	2	28.2	$	76,076
Net-metered:
Commercial (1)	—	—	41		1	5.0	11,159
Sunlight Advantage®	75	1.0	3,069		104	1.2	3,769
Total placed in service	75	1.0	$	3,110	107	34.4	$	91,004
	Six Months Ended
	March 31,
($ in Thousands)	2024				2023
Placed in service	Projects	MW	Costs		Projects	MW	Costs
Grid-connected (1)	—	—	$	—	3	35.7	$	90,152
Net-metered:
Commercial (1)	1	2.8	7,876		3	15.5	36,489
Sunlight Advantage®	148	1.8	5,777		149	1.8	5,609
Total placed in service	149	4.6	$	13,653	155	53.0	$	132,250

(1)Includes projects subject to sale leaseback arrangements.

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New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

CEV has approximately 473.5 MW of solar capacity in service. Projects that were placed in service through December 31, 2019, qualified for a 30% federal ITC. The credit declined to 26% for property under construction during 2020 through the end of 2022. In August 2022, the federal ITC was restored to 30% through the end of 2032. There are additional opportunities to increase the credit amount for certain facilities that are placed in service after December 31, 2022, based upon the type of project and location.

CEV may enter into transactions to sell certain of its commercial solar assets concurrent with agreements to lease the assets back over a period of five to 15 years. The Company will continue to operate the solar assets and are responsible for related expenses and entitled to retain the revenue generated from RECs and energy sales. The ITCs and other tax benefits associated with these solar projects transfer to the buyer if applicable; however, the lease payments are structured so that CEV is compensated for the transfer of the related tax incentives. Accordingly, for solar projects financed under sale leasebacks for which the assets were sold during the first 5 years of in-service life, CEV recognizes the equivalent value of the ITC in other income on the Unaudited Condensed Consolidated Statements of Operations over the respective five-year ITC recapture periods, starting with the second year of the lease. CEV received proceeds of approximately $28.7M during the three months ended March 31, 2023, and $24.4M and $61.8M during the six months ended March 31, 2024 and 2023, respectively, in connection with sale leasebacks of commercial solar assets. There were no proceeds received during the three months ended March 31, 2024.

As part of its solar investment portfolio, CEV operates a residential and small commercial solar program, The Sunlight Advantage®, that provides qualifying homeowners and small business owners the opportunity to have a solar system installed at their home or place of business with no installation or maintenance expenses. CEV owns, operates and maintains the system over the life of the contract in exchange for monthly payments.

For solar installations placed in-service in New Jersey prior to April 30, 2020, each MWh of electricity produced creates an SREC that represents the renewable energy attribute of the solar-electricity generated that can be sold to third parties, predominantly load-serving entities that are required to comply with the solar requirements under New Jersey's renewable portfolio standard.

Following the close of the SREC market in New Jersey, the BPU established the TREC as the successor program to the SREC program. TRECs provide a fixed compensation base multiplied by an assigned project factor in order to determine their value. The project factor is determined by the type and location of the project, as defined. All TRECs generated are required to be purchased monthly by a TREC program administrator as appointed by the BPU.

In July 2021, the BPU established a new successor solar incentive program. This Administratively Determined Incentive Program, which we refer to as SREC IIs, provides administratively set incentives for net metered residential projects and net metered non-residential projects of 5 MW or less.

In December 2022, the BPU established the Competitive Solar Incentive Program, which provides incentives to larger solar facilities. It is open to qualifying grid supply solar facilities, non-residential net metered solar installations with a capacity greater than 5MW, and eligible grid supply solar facilities installed in combination with energy storage. Pricing is determined based on a competitive bid solicitation process.

REC activity during the six months ended, consisted of the following:

	Beginning inventory balance	RECs		Ending inventory balance	Average
		Generated	Delivered		Sale Price
March 31, 2024
SRECs	144,138	151,205	(123,153)	172,190		$211
TRECs (1)	10,120	32,552	(31,536)	11,136		$141
SREC IIs (1)	6,013	7,466	(3,571)	9,908		$89
March 31, 2023
SRECs	116,005	161,775	(47,557)	230,223		$213
TRECs (1)	10,759	20,869	(22,851)	8,777		$140
SREC IIs (1)	247	2,830	(1,382)	1,695		$92

(1)TREC and SREC II inventory balances are due primarily to the timing of generation and when RECs are delivered to state administrator.

49

New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

CEV hedges its expected SREC production through the use of forward sales contracts. The following table reflects the hedged percentage of our projected inventory of SRECs related to its in-service commercial and residential assets:

Energy Year (1)	Percent of SRECs Hedged
2024	99%
2025	89%
2026	88%
2027	51%
2028	27%

(1)Energy years are compliance periods for New Jersey's renewable portfolio standard that run from June 1 to May 31.

There are no direct costs associated with the production of RECs by our solar assets. All related costs are included as a component of O&M on the Unaudited Condensed Consolidated Statements of Operations, including such expenses as facility maintenance and broker fees.

Operating Results

CEV’s financial results are summarized as follows:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands)	2024		2023		2024		2023
Operating revenues	$	9,325	$	14,406	$	44,620	$	27,198
Operating expenses
Operation and maintenance	10,073		12,943		20,123		20,480
Depreciation and amortization	6,931		6,465		13,853		12,041
Total operating expenses	17,004		19,408		33,976		32,521
Operating (loss) income	(7,679)		(5,002)		10,644		(5,323)
Other income (loss), net	7,651		(66)		10,428		731
Interest expense, net	7,182		7,316		14,629		13,211
Income tax (benefit) provision	(1,594)		(3,005)		1,537		(4,842)
Net (loss) income	$	(5,616)	$	(9,379)	$	4,906	$	(12,961)

Net loss decreased approximately $3.8M during the three months ended March 31, 2024, compared with the three months ended March 31, 2023, due primarily to the following factors:

•$7.7M increase in other income, net due primarily to the recognition of ITCs associated with solar sale leaseback financing transactions; partially offset by

•$5.1M decrease in operating revenues due to lower SREC sales.

Net income increased approximately $17.9M during the six months ended March 31, 2024, compared with the six months ended March 31, 2023, due primarily to the following factors:

•$17.4M increase in operating revenues due to higher SREC and TREC sales; and

•$9.7M increase in other income, net due primarily to the recognition of ITCs associated with solar sale leaseback financing transactions; partially offset by

•$6.4M increase in income tax expense related to higher taxable earnings.

50

New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Energy Services

Overview

ES markets and sells natural gas to wholesale and retail customers and manages natural gas transportation and storage assets throughout major market areas across North America. ES maintains a strategic portfolio of natural gas transportation and storage contracts that it utilizes in conjunction with its market expertise to provide service and value to its customers. Availability of these transportation and storage contracts allows ES to generate market opportunities by capturing price differentials over specific time horizons and between geographic market locations.

ES also provides management of transportation and storage assets for natural gas producers and regulated utilities. These management transactions typically involve the release of producer/utility-owned storage and/or transportation capacity in combination with an obligation to either purchase and/or deliver physical natural gas. In addition to the contractual purchase and/or sale of physical natural gas, ES generates or pays fee-based margin in exchange for its active management and may provide the producer and/or utility with additional margin based on actual results.

In conjunction with the active management of these contracts, ES generates Financial Margin by identifying market opportunities and simultaneously entering into natural gas purchase/sale, storage or transportation contracts and financial derivative contracts. In cases where storage is utilized to fulfill these contracts, these forecast sales and/or purchases are economically hedged through the use of financial derivative contracts. The financial derivative contracts consist primarily of exchange-traded futures, options and swap contracts, and are frequently used to lock in anticipated transactional cash flows and to help manage volatility in natural gas market prices. Generally, when its transportation and storage contracts are exposed to periods of increased market volatility, ES is able to implement strategies that allow it to capture margin by improving the respective time or geographic spreads on a forward basis.

ES accounts for its physical commodity contracts and its financial derivative instruments at fair value on the Unaudited Condensed Consolidated Balance Sheets. Changes in the fair value of physical commodity contracts and financial derivative instruments are included in earnings as a component of operating revenues or natural gas purchases on the Unaudited Condensed Consolidated Statements of Operations. Volatility in reported net income at ES can occur over periods of time due to changes in the fair value of derivatives, as well as timing differences related to certain transactions. Unrealized gains and losses can fluctuate as a result of changes in the price of natural gas, SRECs and foreign currency from the original transaction price. Volatility in earnings can also occur as a result of timing differences between the settlement of financial derivatives and the sale of the underlying physical commodity. For example, when a financial instrument settles and the physical natural gas is injected into inventory, the realized gains and losses associated with the financial instrument are recognized in earnings. However, the gains and losses associated with the physical natural gas are not recognized in earnings until the natural gas inventory is withdrawn from storage and sold, at which time ES realizes the entire margin on the transaction.

During December 2020, ES entered into a series of AMAs with an investment grade public utility to release pipeline capacity associated with certain natural gas transportation contracts. The utility provides certain asset management services and ES may deliver natural gas to the utility in exchange for aggregate net proceeds of approximately $500M, payable through November 1, 2030. The AMAs include a series of initial and permanent releases, which commenced on November 1, 2021. NJR will receive a total of approximately $260M in cash from fiscal 2022 through fiscal 2024 and $34M per year from fiscal 2025 through fiscal 2031 under the agreements. ES recognized operating revenue of approximately $9.5M and $9.5M during the three months ended March 31, 2024 and 2023, respectively, and $19.0M and $29.5M during the six months ended March 31, 2024 and 2023, respectively, on the Unaudited Condensed Consolidated Statements of Operations. Amounts received in excess of revenue totaling $107.2M and $58.7M as of March 31, 2024 and September 30, 2023, respectively, are included in deferred revenue on the Unaudited Condensed Consolidated Balance Sheets.

51

New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Operating Results

ES’ financial results are summarized as follows:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands)	2024		2023		2024		2023
Operating revenues (1)	$	144,862	$	196,730	$	244,530	$	518,512
Operating expenses
Natural gas purchases (including demand charges (2)(3))	105,634		161,114		165,800		394,401
Operation and maintenance	13,639		8,322		18,747		9,445
Depreciation and amortization	56		62		113		119
Total operating expenses	119,329		169,498		184,660		403,965
Operating income	25,533		27,232		59,870		114,547
Other income, net	297		479		530		847
Interest expense, net	3,513		2,749		6,639		5,807
Income tax provision	5,289		5,916		12,800		25,980
Net income	$	17,028	$	19,046	$	40,961	$	83,607

(1)Includes related party transactions of approximately $(3.7)M and $0.2M during the three months ended March 31, 2024 and 2023, respectively, and approximately $(4.9)M and $8.6M during the six months ended March 31, 2024 and 2023, respectively, which are eliminated in consolidation.

(2)Costs associated with pipeline and storage capacity are expensed over the term of the related contracts, which generally varies from less than one year to 10 years.

(3)Includes related party transactions of approximately $0.3M and $0.2M during the three months ended March 31, 2024 and 2023, respectively, and approximately $0.6M and $0.5M during the six months ended March 31, 2024 and 2023, respectively, a portion of which is eliminated in consolidation.

ES' portfolio of financial derivative instruments are composed of:

	Six Months Ended
	March 31,
(in Bcf)	2024	2023
Net short futures and swaps contracts	3.8	5.6

During the six months ended March 31, 2024 and 2023, the net short position resulted in an unrealized gain of approximately $6.8M and $8.9M, respectively.

Operating revenues decreased approximately $51.9M and $274.0M and natural gas purchases decreased approximately $55.5M and $228.6M during the three and six months ended March 31, 2024, compared with the three and six months ended March 31, 2023, respectively, due primarily to a decrease in natural gas prices of 35% and 47%, respectively. The decrease for the six months is also related to the prior year volatility resulting from Winter Storm Elliott, which occurred during December 2022.

Future results at ES are contingent upon natural gas market price volatility driven by variations in both the supply and demand balances caused by weather and other factors. As a result, variations in weather patterns in the key market areas served may affect earnings during the fiscal year. Changes in market fundamentals, such as an increase in supply and decrease in demand due to warmer temperatures, and reduced volatility can negatively impact ES' earnings. See Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations - Natural Gas Distribution for TETCO M-3 Daily Prices, which illustrates the daily natural gas prices in the Northeast market region.

52

New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Net income decreased approximately $2.0M during the three months ended March 31, 2024, compared with the three months ended March 31, 2023, due primarily to the following factors:

•$51.9M decrease in operating revenues, as previously discussed;

•$5.3M increase in O&M due to higher employee related expenses and a reduction in the reserve for bad debt in the prior year; partially offset by

•$55.5M decrease in natural gas purchases, as previously discussed.

Net income decreased approximately $42.6M during the six months ended March 31, 2024, compared with the six months ended March 31, 2023, due primarily to the following factors:

•$274.0M decrease in operating revenues, as previously discussed;

•$9.3M increase in O&M due to higher employee related expenses and a reduction in the reserve for bad debt in the prior year; partially offset by

•$228.6M decrease in natural gas purchases, as previously discussed; and

•$13.2M decrease in income tax expense related to lower taxable earnings.

Non-GAAP Financial Measures

Management uses Financial Margin and NFE, non-GAAP financial measures, when evaluating the operating results of ES. Financial Margin and NFE are based on removing timing differences associated with certain derivative instruments. GAAP also requires us, during the interim periods, to estimate our annual effective tax rate and use this rate to calculate the year-to-date tax provision. We also determine an annual estimated effective tax rate for NFE purposes and calculate a quarterly tax adjustment based on the differences between our forecasted net income and our forecasted NFE for the fiscal year. This adjustment is applied to ES, as the adjustment primarily relates to timing differences associated with certain derivative instruments which impacts the estimate of the annual effective tax rate for NFE. No adjustment is needed during the fourth quarter, since the actual effective tax rate is calculated at year end.

Management views these measures as representative of the overall expected economic result and uses these measures to compare ES' results against established benchmarks and earnings targets as these measures eliminate the impact of volatility on GAAP earnings as a result of timing differences associated with the settlement of derivative instruments. To the extent that there are unanticipated impacts from changes in the market value related to the effectiveness of economic hedges, ES' actual non-GAAP results can differ from the results anticipated at the outset of the transaction. Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, the comparable GAAP measure.

When ES reconciles the most directly comparable GAAP measure to both Financial Margin and NFE, the current period unrealized gains and losses on derivatives are excluded as a reconciling item. Financial Margin and NFE also exclude the effects of economic hedging of the value of our natural gas in storage and, therefore, only include realized gains and losses related to natural gas withdrawn from storage, effectively matching the full earnings effects of the derivatives with realized margins on the related physical natural gas flows. Financial Margin differs from gross margin as defined on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization as well as the effects of derivatives as discussed above.

53

New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Financial Margin

A reconciliation of gross margin, the closest GAAP financial measure, to ES' Financial Margin is as follows:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands)	2024		2023		2024		2023
Operating revenues (1)	$	144,862	$	196,730	$	244,530	$	518,512
Less:
Natural gas purchases	105,634		161,114		165,800		394,401
Operation and maintenance (2)	13,102		7,668		17,791		11,123
Depreciation and amortization	56		62		113		119
Gross margin	26,070		27,886		60,826		112,869
Add:
Operation and maintenance (2)	13,102		7,668		17,791		11,123
Depreciation and amortization	56		62		113		119
Unrealized loss (gain) on derivative instruments and related transactions	29,198		13,795		24,932		(26,091)
Effects of economic hedging related to natural gas inventory (3)	(2,845)		(11,203)		(19,073)		12,769
Financial Margin	$	65,581	$	38,208	$	84,589	$	110,789

(1)Includes unrealized losses (gains) related to an intercompany transaction between NJNG and ES that have been eliminated in consolidation of approximately $(3.7)M and $0.2M during the three months ended March 31, 2024 and 2023, respectively, and approximately $(4.9)M and $8.6M during the six months ended March 31, 2024 and 2023, respectively.

(2)Excludes SG&A of approximately $0.5M and $0.7M during the three months ended March 31, 2024 and 2023, respectively, and approximately $1.0M and $(1.7)M during the six months ended March 31, 2024 and 2023, respectively.

(3)Effects of hedging natural gas inventory transactions where the economic impact is realized in a future period.

Financial Margin increased approximately $27.4M during the three months ended March 31, 2024, compared with the three months ended March 31, 2023, respectively, due primarily to higher natural gas price volatility during periods of cold weather in January 2024. Financial Margin decreased approximately $26.2M during the six months ended March 31, 2024, compared with the six months ended March 31, 2023, respectively, due primarily to higher natural gas price volatility in December 2022 due to Winter Storm Elliott, as previously discussed.

Net Financial Earnings

A reconciliation of ES's net income, the most directly comparable GAAP financial measure, to NFE is as follows:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands)	2024		2023		2024		2023
Net income	$	17,028	$	19,046	$	40,961	$	83,607
Add:
Unrealized loss (gain) on derivative instruments and related transactions	29,198		13,795		24,932		(26,091)
Tax effect (1)	(6,938)		(3,278)		(5,925)		6,201
Effects of economic hedging related to natural gas inventory	(2,845)		(11,203)		(19,073)		12,769
Tax effect	676		2,662		4,533		(3,035)
Net income to NFE tax adjustment	525		103		47		207
Net financial earnings	$	37,644	$	21,125	$	45,475	$	73,658

(1)Includes taxes related to an intercompany transaction between NJNG and ES that have been eliminated in consolidation of approximately $0.9M during the three months ended March 31, 2024, and approximately $1.2M and $(2.0)M during the six months ended March 31, 2024 and 2023, respectively. Taxes that have been eliminated in consolidation were immaterial for the three months ended March 31, 2023.

NFE increased approximately $16.5M during the three months ended March 31, 2024, compared with the three months ended March 31, 2023, respectively, due primarily to an increase in Financial Margin, as previously discussed. NFE decreased approximately $28.2M during the six months ended March 31, 2024, compared with the six months ended March 31, 2023, respectively, due primarily to a decrease in Financial Margin, as previously discussed.

54

New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Future results are subject to the ability of ES to expand its wholesale sales and service activities and are contingent upon many other factors, including an adequate number of appropriate and credit qualified counterparties in an active and liquid natural marketplace, volatility in the natural gas market due to weather or other fundamental market factors impacting supply and/or demand, transportation, storage and/or other market arbitrage opportunities, sufficient liquidity in the overall energy trading market, and continued access to liquidity in the capital markets.

Storage and Transportation

Overview

S&T invests in natural gas assets, such as natural gas transportation and storage facilities. We believe that acquiring, owning and developing these storage and transportation assets, which operate under a tariff structure that has either cost- or market-based rates, can provide us a growth opportunity. S&T is subject to various risks, including the construction, development and operation of our transportation and storage assets, obtaining necessary governmental, environmental and regulatory approvals, our ability to obtain necessary property rights and our ability to obtain financing at reasonable costs for the construction, operation and maintenance of our assets.

S&T is comprised of Leaf River, a 32.2M Dth salt dome natural gas storage facility that operates under market-based rates and Adelphia, an existing 84-mile pipeline in southeastern Pennsylvania that operates under cost of service rates but can enter into negotiated rates with counterparties. S&T also has a 50% ownership interest in Steckman Ridge, a storage facility that operates under market-based rates.

Operating Results

The financial results of S&T are summarized as follows:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands)	2024		2023		2024		2023
Operating revenues (1)	$	23,042	$	20,887	$	46,904	$	47,725
Operating expenses
Natural gas purchases	351		377		627		1,182
Operation and maintenance	10,563		7,790		20,663		15,264
Depreciation and amortization	6,218		6,020		12,380		11,962
Total operating expenses	17,132		14,187		33,670		28,408
Operating income	5,910		6,700		13,234		19,317
Other income, net	2,473		1,647		4,761		3,014
Interest expense, net	5,868		6,128		11,801		12,835
Income tax provision	619		596		1,651		2,539
Equity in earnings of affiliates	85		977		1,078		1,886
Net income	$	1,981	$	2,600	$	5,621	$	8,843

(1)Includes related party transactions of approximately $0.7M and $1.6M during the three months ended March 31, 2024 and 2023, respectively, and approximately $1.3M and $2.7M during the six months ended March 31, 2024 and 2023, respectively, which are eliminated in consolidation.

Net income remained relatively consistent during the three months ended March 31, 2024, compared with the three months ended March 31, 2023, and decreased approximately $3.2M during the six months ended March 31, 2024, compared with the six months ended March 31, 2023, respectively, due primarily to the following factors:

•$5.4M increase in O&M due to increased compensation costs and contractor expenses; partially offset by

•$1.7M increase in other income, net due to increased interest income from the outstanding loan with Steckman Ridge, as a result of higher interest rates.

55

New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Non-GAAP Financial Measures

Management uses NFE, a non-GAAP financial measure, when evaluating the operating results of S&T. Certain transactions associated with equity method investments and their impact, including impairment charges, which are non-cash charges, and the return of capital in excess of the carrying value of our investment, are excluded for NFE purposes. The details of such adjustments can be found in the table below. Non-GAAP financial measures are not in accordance with, or an alternative to GAAP, and should be considered in addition to, and not as a substitute for the comparable GAAP measure.

A reconciliation of S&T's net income, the most directly comparable GAAP financial measure to NFE, is as follows:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands)	2024		2023		2024		2023
Net income	$	1,981	$	2,600	$	5,621	$	8,843
Add:
Gain on equity method investment	—		(200)		—		(200)
Tax effect	—		50		—		50
Net financial earnings	$	1,981	$	2,450	$	5,621	$	8,693

NFE remained relatively consistent during the three months ended March 31, 2024, compared with the three months ended March 31, 2023, and decreased approximately $3.1M during the six months ended March 31, 2024, compared with the six months ended March 31, 2023, respectively, due primarily to a decrease in net income, as previously discussed.

Home Services and Other

Overview

The financial results of HSO consist primarily of the operating results of NJRHS. NJRHS provides service, sales and installation of appliances to service contract customers and has been focused on growing its installation business and expanding its service contract customer base. HSO also includes organizational expenses incurred at NJR and home warranty contract income at NJR Retail.

Operating Results

The condensed financial results of HSO are summarized as follows:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands)	2024		2023		2024		2023
Operating revenues	$	14,905	$	13,448	$	29,739	$	27,714
Income before income taxes	$	904	$	1,301	$	252	$	1,489
Income tax provision	520		488		468		705
Net income (loss)	$	384	$	813	$	(216)	$	784

Net income (loss) remained relatively consistent during the three and six months ended March 31, 2024, compared with the three and six months ended March 31, 2023.

56

New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Liquidity and Capital Resources

Our objective is to maintain an efficient consolidated capital structure that reflects the different characteristics of each reporting segment and business operations and provides adequate financial flexibility for accessing capital markets as required. Our consolidated capital structure was as follows:

	March 31, 2024		September 30, 2023
Common stock equity	41	%	39	%
Long-term debt	52		54
Short-term debt	7		7
Total	100	%	100	%

Common Stock Equity

We satisfy our external common equity requirements, if any, through issuances of our common stock, including the proceeds from stock issuances under our DRP. The DRP allows us, at our option, to use treasury shares or newly issued shares to raise capital. NJR raised approximately $3.7M and $3.8M of equity through the DRP during the three months ended March 31, 2024 and 2023, respectively, and $7.5M and $7.6M during the six months ended March 31, 2024 and 2023, respectively. During the three months ended March 31, 2024, we raised approximately $17.9M of equity by issuing approximately 435,000 shares through the waiver discount feature of the DRP. During the six months ended March 31, 2024 and 2023, we raised approximately $35.8M and $17.9M of equity by issuing approximately 845,000 and 368,000 shares through the waiver discount feature of the DRP, respectively. There were no shares issued through the waiver discount feature during the three months ended March 31, 2023.

In 1996, the Board of Directors authorized us to implement a share repurchase program, which was expanded seven times since the inception of the program, authorizing a total of 19.5M shares of common stock for repurchase. Since inception, we repurchased a total of approximately 17.8M of those shares and may repurchase an additional 1.7M shares under the approved program. There were no shares repurchased during the three and six months ended March 31, 2024 and 2023.

Debt

NJR and its unregulated subsidiaries generally rely on cash flows generated from operating activities and the utilization of committed credit facilities to provide liquidity to meet working capital and short-term debt financing requirements. NJNG also relies on the issuance of commercial paper for short-term funding. NJR and NJNG, as borrowers, respectively, periodically access the capital markets to fund long-life assets through the issuance of long-term debt securities.

We believe that our existing borrowing availability, equity proceeds and cash flows from operations will be sufficient to satisfy our working capital, capital expenditures and dividend requirements for at least the next 12 months. NJR, NJNG, CEV, S&T and ES currently anticipate that each of their financing requirements for the next 12 months will be met primarily through the issuance of short and long-term debt and meter or solar asset sale leasebacks.

We believe that as of March 31, 2024, NJR and NJNG were, and currently are, in compliance with all existing debt covenants, both financial and non-financial.

Short-Term Debt

We use our short-term borrowings primarily to finance ES' short-term liquidity needs, S&T investments, share repurchases and, on an initial basis, CEV's investments. ES' use of high-volume storage facilities and anticipated pipeline park-and-loan arrangements, combined with related economic hedging activities in the volatile wholesale natural gas market, create significant short-term cash requirements.

As of March 31, 2024, NJR had a revolving credit facility totaling $650M, with $494.5M available under the facility.

57

New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

NJNG satisfies its debt needs by issuing short-term and long-term debt based on its financial profile. The seasonal nature of NJNG's operations creates large short-term cash requirements, primarily to finance natural gas purchases and customer accounts receivable. NJNG obtains working capital for these requirements, and for the temporary financing of construction and MGP remediation expenditures and energy tax payments, based on its financial profile, through the issuance of commercial paper supported by the NJNG Credit Facility or through short-term bank loans under the NJNG Credit Facility.

NJNG’s commercial paper is sold through several commercial banks under an issuing and paying agency agreement and is supported by the $250M NJNG Credit Facility. As of March 31, 2024, there was $199.3M available under the NJNG Credit Facility, including amounts allocated to the backstop under the commercial paper program and the issuance of letters of credit.

Short-term borrowings were as follows:

	Three Months Ended			Six Months Ended
(Thousands)	March 31, 2024
NJR
Notes Payable to banks:
Balance at end of period	$	146,150			$	146,150
Weighted average interest rate at end of period	6.52		%		6.52		%
Average balance for the period	$	193,668			$	202,848
Weighted average interest rate for average balance	6.55		%		6.55		%
Month end maximum for the period	$	210,500			$	230,000
NJNG
Commercial Paper and Notes Payable to banks:
Balance at end of period	$	50,000			$	50,000
Weighted average interest rate at end of period	5.48		%		5.48		%
Average balance for the period	$	53,412			$	62,517
Weighted average interest rate for average balance	5.48		%		5.48		%
Month end maximum for the period	$	87,400			$	106,700

Due to the seasonal nature of natural gas prices and demand, and because inventory levels are built up during its natural gas injection season (April through October), NJR and NJNG's short-term borrowings tend to peak in the November through January time frame.

NJR

In August 2022, NJR entered into a First Amendment to NJR's Second Amended and Restated Credit Agreement governing a $650M NJR Credit Facility with a maturity date of September 2, 2027. The NJR Credit Facility is subject to a one-year extension beyond that date and includes an accordion feature, which allows NJR, in the absence of a default or event of default, to increase from time to time, with the existing or new lenders, the revolving credit commitments under the NJR Credit Facility in increments of $50M with the total revolving credit commitments not exceeding $750M. The NJR Credit Facility also permits the borrowing of revolving loans and swingline loans, as well as a $75M sublimit for the issuance of letters of credit. Certain of NJR’s unregulated subsidiaries have guaranteed all of NJR’s obligations under the NJR Credit Facility. The credit facility is used primarily to finance its share repurchases, to satisfy ES’ short-term liquidity needs and to finance, on an initial basis, unregulated investments.

As of March 31, 2024, NJR had eight letters of credit outstanding totaling $9.3M, which reduced the amount available under the NJR Credit Facility by the same amount. NJR does not anticipate that these letters of credit will be drawn upon by the counterparties.

Based on its average borrowings during fiscal 2024, NJR’s average interest rate was 6.55%, resulting in interest expense of approximately $6.7M. Based on average borrowings of $202.8M during the period, a 100 basis point change in the underlying average interest rate would have caused a change in interest expense of approximately $1.0M during fiscal 2024.

Neither NJNG nor its assets are obligated or pledged to support the NJR Credit Facility.

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New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

NJNG

In August 2022, NJNG amended the Second Amended and Restated Credit Agreement governing a $250M NJNG Credit Facility with a maturity date of September 2, 2027. The NJNG Credit Facility is subject to a one-year extension beyond that date and includes an accordion feature, which would allow NJNG, in the absence of a default or event of default, to increase from time to time, with the existing or new lenders, the revolving credit commitments under the NJNG Credit Facility in minimum increments of $50M up to a maximum of $100M. The NJNG Credit Facility also permits the borrowing of revolving loans and swingline loans, as well as a $30M sublimit for the issuance of letters of credit.

As of March 31, 2024, NJNG had two letters of credit outstanding for $0.7M, which reduced the amount available under the NJNG Credit Facility by the same amount. NJNG does not anticipate that these letters of credit will be drawn upon by the counterparties.

Based on its average borrowings during fiscal 2024, NJNG’s average interest rate was 5.48%, resulting in interest expense of $1.7M. Based on average borrowings of $62.5M during the period, a 100 basis point change in the underlying average interest rate would have caused a change in interest expense of approximately $0.3M during fiscal 2024.

Short-Term Debt Covenants

Borrowings under the NJR Credit Facility, term loan credit agreement and the NJNG Credit Facility are conditioned upon compliance with a maximum leverage ratio (consolidated total indebtedness to consolidated total capitalization as defined in the applicable agreements), of not more than .70 to 1.00 for NJR and .65 to 1.00 for NJNG. These revolving credit facilities and term loan credit agreement contain customary representations and warranties for transactions of this type. They also contain customary events of default and certain covenants that will limit NJR's or NJNG's ability, beyond agreed upon thresholds, to, among other things:

•incur additional debt;

•incur liens and encumbrances;

•make dispositions of assets;

•enter into transactions with affiliates; and

•merge, consolidate, transfer, sell or lease all or substantially all of the borrower's or guarantors' assets.

These covenants are subject to a number of exceptions and qualifications set forth in the applicable agreements.

Default Provisions

The agreements governing our long-term and short-term debt obligations include provisions that, if not complied with, could require early payment or similar actions. Default events include, but are not limited to, the following:

•defaults for non-payment;

•defaults for breach of representations and warranties;

•defaults for insolvency;

•defaults for non-performance of covenants;

•cross-defaults to other debt obligations of the borrower; and

•guarantor defaults.

The occurrence of an event of default under these agreements could result in all loans and other obligations of the borrower becoming immediately due and payable and the termination of the credit facilities or term loan.

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New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Long-Term Debt

NJR

As of March 31, 2024, NJR had the following outstanding:

•$100M of 3.48% senior notes due November 7, 2024;

•$100M of 3.54% senior notes due August 18, 2026;

•$110M of 4.38% senior notes due June 23, 2027;

•$100M of 3.96% senior notes due June 8, 2028;

•$150M of 3.29% senior notes due July 17, 2029;

•$130M of 3.60% senior notes due July 23, 2032;

•$130M of 3.50% senior notes due July 23, 2030;

•$120M of 3.13% senior notes due September 1, 2031;

•$80M of 3.25% senior notes due September 1, 2033;

•$50M of 3.64% senior notes due September 19, 2034; and

•$50M of 6.14% senior notes due December 15, 2032.

Neither NJNG nor its assets are obligated or pledged to support NJR's long-term debt.

NJNG

As of March 31, 2024, NJNG's long-term debt consisted of approximately $1.4B in fixed-rate debt issuances secured by the Mortgage Indenture, with maturities ranging from 2025 to 2061, and approximately $26.1M in sale leasebacks of natural gas meters with various maturities ranging from 2025 to 2030.

On September 28, 2023, NJNG entered into a Note Purchase Agreement for $100M aggregate principal amount of its senior notes consisting of $50M of 5.56% senior notes due September 28, 2033, which closed on September 28, 2023, and $50M of 5.85% senior notes due October 30, 2053, which closed on October 30, 2023.

Senior notes are secured by an equal principal amount of NJNG’s FMBs issued under NJNG’s Mortgage Indenture.

NJR is not obligated directly or contingently with respect to the NJNG’s fixed-rate debt issuances.

Long-Term Debt Covenants and Default Provisions

The NJR and NJNG long-term debt instruments contain customary representations and warranties for transactions of their type. They also contain customary events of default and certain covenants that will limit NJR or NJNG's ability beyond agreed upon thresholds to, among other things:

•incur additional debt (including a covenant that limits the amount of consolidated total debt of the borrower at the end of a fiscal quarter to 70% for NJR and 65% for NJNG of the consolidated total capitalization of the borrower, as those terms are defined in the applicable agreements, and a covenant limiting priority debt to 20% of the borrower's consolidated total capitalization, as those terms are defined in the applicable agreements);

•incur liens and encumbrances;

•make loans and investments;

•make dispositions of assets;

•make dividends or restricted payments;

•enter into transactions with affiliates; and

•merge, consolidate, transfer, sell or lease substantially all of the borrower's assets.

The aforementioned covenants are subject to a number of exceptions and qualifications set forth in the applicable note purchase agreements.

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New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

In addition, the FMBs issued by NJNG under the Mortgage Indenture are subject to certain default provisions. Events of Default, as defined in the Mortgage Indenture, consist mainly of:

•failure for 30 days to pay interest when due;

•failure to pay principal or premium when due and payable;

•failure to make sinking fund payments when due;

•failure to comply with any other covenants of the Mortgage Indenture after 30 days' written notice from the Trustee;

•failure to pay or provide for judgments in excess of $30M in aggregate amount within 60 days of the entry thereof; or

•certain events that are or could be the basis of a bankruptcy, reorganization, insolvency or receivership proceeding.

Upon the occurrence and continuance of such an Event of Default, the Mortgage Indenture, subject to any provisions of law applicable thereto, provides that the Trustee may take possession and conduct the business of NJNG, may sell the trust estate, or proceed to foreclose the lien of the Mortgage Indenture. The interest rate on defaulted principal and interest, to the extent permitted by law, on the FMBs issued under the Mortgage Indenture is the rate stated in the applicable supplement or, if no such rate is stated, 6% per annum.

Sale Leaseback

NJNG received approximately $8.8M and $8.4M during the six months ended March 31, 2024 and 2023, respectively, in connection with the sale leaseback of its natural gas meters. NJNG utilizes sale leaseback arrangements as a financing mechanism to fund certain of its capital expenditures related to natural gas meters, whereby the physical asset is sold concurrent with an agreement to lease the asset back. These agreements include options to renew the lease or repurchase the asset at the end of the term. As NJNG retains control of the natural gas meters, these arrangements do not qualify as a sale. NJNG uses the financing method to account for the transactions. NJNG continues to evaluate this sale leaseback program based on current market conditions. Natural gas meters are excluded from the lien on NJNG property under the Mortgage Indenture.

CEV enters into transactions to sell the commercial solar assets concurrent with agreements to lease the assets back over a period of five to 15 years. The Company has concluded that these arrangements do not qualify as a sale for accounting purposes, as the Company retains control of the underlying assets, and are therefore treated as financing obligations, which are typically secured by the renewable energy facility asset and its future cash flows from RECs and energy sales. ITCs and other tax benefits associated with these solar projects are transferred to the buyer, if applicable; however, the lease payments are structured so that CEV is compensated for the transfer of the related tax incentives. CEV continues to operate the solar assets, including related expenses, and retain the revenue generated from RECs and energy sales, and has the option to renew the lease or repurchase the assets sold at the end of the lease term. During the six months ended March 31, 2024 and 2023, CEV received proceeds of approximately $24.4M and $61.8M, respectively, in connection with the sale leaseback of commercial solar projects. The proceeds received were recognized as a financing obligation on the Unaudited Condensed Consolidated Balance Sheets.

Contractual Obligations and Capital Expenditures

As of March 31, 2024, there were NJR guarantees covering approximately $137.0M of natural gas purchases and ES demand fee commitments and ten outstanding letters of credit totaling approximately $10.0M, as previously mentioned, not yet reflected in accounts payable on the Unaudited Condensed Consolidated Balance Sheets.

Estimated capital expenditures are reviewed on a regular basis and may vary based on the ongoing effects of regulatory constraints, environmental regulations, unforeseen events, and the ability to access capital.

NJNG's total capital expenditures are projected to be between $387M and $440M during fiscal 2024. Total capital expenditures spent or accrued during the six months ended March 31, 2024, were approximately $177.2M. NJNG expects to fund its obligations with a combination of cash flows from operations, cash on hand, issuance of commercial paper, available capacity under its revolving credit facility and the issuance of long-term debt. As of March 31, 2024, NJNG's future MGP expenditures are estimated to be approximately $157.8M. For a more detailed description of MGP expenditures see Note 13. Commitments and Contingent Liabilities in the accompanying Unaudited Condensed Consolidated Financial Statements.

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New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

During the six months ended March 31, 2024, our S&T segment had capital expenditures spent or accrued for Adelphia totaling approximately $3.1M and capital expenditures spent or accrued for Leaf River totaling approximately $15.8M. During fiscal 2024, we expect expenditures related to Adelphia to be between $8M and $12M and expenditures related to Leaf River to be between $36M and $46M.

During the six months ended March 31, 2024, total capital expenditures spent or accrued related to the purchase and installation of solar equipment were approximately $34.9M. CEV's expenditures include clean energy projects that support our goal to promote renewable energy. Accordingly, CEV enters into agreements to install solar equipment involving both residential and commercial projects. We estimate solar-related capital expenditures during fiscal 2024 to be between $140M and $204M.

Capital expenditures related to clean energy projects are subject to change due to a variety of factors that may affect our ability to commence operations at these projects on a timely basis or at all, including sourcing projects that meet our investment criteria, logistics associated with the start-up of residential and commercial solar projects, such as timing of construction schedules, the permitting and regulatory process, any delays related to electric grid interconnection, economic trends or unforeseen events and the ability to access capital or allocation of capital to other investments or business opportunities.

ES does not currently anticipate any significant capital expenditures during fiscal 2024 and 2025.

During December 2020, ES entered into a series of AMAs with an investment grade public utility to release pipeline capacity associated with certain natural gas transportation contracts. The utility provides certain asset management services and ES may deliver natural gas to the utility in exchange for aggregate net proceeds of approximately $500M, payable through November 1, 2030. The AMAs include a series of initial and permanent releases, which commenced on November 1, 2021. NJR will receive approximately $260M in cash from fiscal 2022 through fiscal 2024 and $34M per year from fiscal 2025 through fiscal 2031 under the agreements. ES recognized operating revenue of approximately $19.0M and $29.5M during the three and six months ended March 31, 2024 and 2023, respectively, on the Unaudited Condensed Consolidated Statements of Operations. Amounts received in excess of revenue totaling $107.2M and $58.7M as of March 31, 2024 and September 30, 2023, respectively, are included in deferred revenue on the Unaudited Condensed Consolidated Balance Sheets.

Cash Flows

Operating Activities

Cash flows from operating activities during the six months ended March 31, 2024, totaled approximately $338.6M, compared with approximately $343.1M during the six months ended March 31, 2023. Operating cash flows are primarily affected by variations in working capital, which can be impacted by several factors, including:

•seasonality of our business;

•fluctuations in wholesale natural gas prices and other energy prices, including changes in derivative asset and liability values;

•timing of storage injections and withdrawals;

•the deferral and recovery of natural gas costs;

•changes in contractual assets utilized to optimize margins related to natural gas transactions;

•broker margin requirements;

•impact of unusual weather patterns on our wholesale business;

•timing of the collections of receivables and payments of current liabilities;

•volumes of natural gas purchased and sold; and

•timing of SREC deliveries.

Cash flows from operating activities decreased approximately $4.5M during the six months ended March 31, 2024, compared with the six months ended March 31, 2023, due primarily to a decrease in cash received to date from certain ES AMAs along with changes in the mix of working capital components.

Investing Activities

Cash flows used in investing activities totaled approximately $235.0M during the six months ended March 31, 2024, compared with approximately $261.7M during the six months ended March 31, 2023. The decrease of approximately $26.7M was due primarily to decreased solar asset expenditures and lower capital expenditures for S&T.

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New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Financing Activities

Financing cash flows generally are seasonal in nature and are impacted by the volatility in pricing in the natural gas and other energy markets. NJNG's inventory levels are built up during its natural gas injection season (April through October) and reduced during withdrawal season (November through March) in response to the supply requirements of its customers. Changes in financing cash flows can also be impacted by natural gas management and marketing activities at ES and clean energy investments at CEV.

Cash flows used in financing activities totaled approximately $99.4M during the six months ended March 31, 2024, compared with approximately $55.3M during the six months ended March 31, 2023. The increase of approximately $44.1M is due primarily to a decrease in long-term debt proceeds of $125.0M along with a $70.0M payment of long-term debt and a decrease in solar sale leaseback proceeds of $37.4M, partially offset by reduced net short-term debt payments of $30.4M and increased proceeds from the waiver discount program of $17.9M.

Credit Ratings

The table below summarizes NJNG's credit ratings as of March 31, 2024, issued by two rating entities, Moody's and Fitch:

	Moody's	Fitch
Corporate Rating	N/A	A-
Commercial Paper	P-2	F-2
Senior Secured	A1	A+
Ratings Outlook	Stable	Stable

The Moody's ratings and outlook were reaffirmed on September 29, 2023. Fitch ratings and outlook were reaffirmed on April 15, 2024. NJNG's Moody's and Fitch ratings are investment-grade ratings. NJR is not rated by Moody’s or Fitch.

Although NJNG is not party to any lending agreements that would accelerate the maturity date of any obligation caused by a failure to maintain any specific credit rating, if such ratings are downgraded below investment grade, borrowing costs could increase, as would the costs of maintaining certain contractual relationships and future financing and our access to capital markets would be reduced. Even if ratings are downgraded without falling below investment grade, NJR and NJNG could face increased borrowing costs under their credit facilities. A rating set forth above is not a recommendation to buy, sell or hold NJR's or NJNG's securities and may be subject to revision or withdrawal at any time. Each rating set forth above should be evaluated independently of any other rating.

The timing and mix of any external financings will target a common equity ratio that is consistent with maintaining NJNG's current short-term and long-term credit ratings.

Financial Risk Management

Commodity Market Risks

Natural gas is a nationally traded commodity. Its prices are determined effectively by the NYMEX, ICE and over-the-counter markets. The prices on the NYMEX, CME, ICE and over-the-counter markets generally reflect the national balance of natural gas supply and demand, but are also significantly influenced from time to time by other events.

Our regulated and unregulated businesses are subject to market risk due to fluctuations in the price of natural gas. To economically hedge against such fluctuations, we have entered into forwards, futures, options and swap agreements. To manage these derivative instruments, we have well-defined risk management policies and procedures that include daily monitoring of volumetric limits and monetary guidelines. Our natural gas businesses are conducted through two of our operating subsidiaries. NJNG is a regulated utility that uses futures, options and swaps to provide relative price stability, and its recovery of natural gas costs is governed by the BPU. ES uses futures, options, swaps and physical contracts to economically hedge purchases and sales of natural gas.

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New Jersey Resources Corporation

Part I

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK (Continued)                       

The following table reflects the changes in the fair market value of financial derivatives related to natural gas purchases and sales:

	Balance			Increase		Less		Balance
(Thousands)	September 30, 2023			in Fair Market Value		Amounts Settled		March 31, 2024
NJNG		$	6,090		8,238		13,134		$	1,194
ES		16,178			29,331		38,688		6,821
Total		$	22,268		37,569		51,822		$	8,015

There were no changes in methods of valuations during the six months ended March 31, 2024.

The following is a summary of fair market value of financial derivatives as of March 31, 2024, excluding foreign exchange contracts discussed below, by method of valuation and by maturity for each fiscal year period:

(Thousands)	2024		2025	2026 - 2028		After 2028		Total Fair Value
Price based on ICE	$	5,888	2,368		(261)		20		$	8,015

The following is a summary of financial derivatives by type as of March 31, 2024:

		Volume Bcf	Price per MMBtu(1)	Amounts included in Derivatives (Thousands)
NJNG	Futures	23.8	$1.64 - $3.58		$	1,194
ES	Futures	(3.8)	$0.68 - $4.22		6,821
Total					$	8,015

(1)    Million British thermal units

The following table reflects the changes in the fair market value of physical commodity contracts:

	Balance			Increase		Less		Balance
(Thousands)	September 30, 2023			(Decrease) in Fair Market Value		Amounts Settled		March 31, 2024
NJNG - Prices based on other external data		$	(445)		(1,585)		(2,073)		$	43
ES - Prices based on other external data		(13,616)			6,396		10,388		(17,608)
Total		$	(14,061)		4,811		8,315		$	(17,565)

Our market price risk is predominately linked with changes in the price of natural gas at the Henry Hub, the delivery point for the NYMEX natural gas futures contracts. Based on price sensitivity analysis, an illustrative 10% movement in the natural gas futures contract price, for example, increases (decreases) the reported derivative fair value of all open, unadjusted Henry Hub natural gas futures and fixed price swap positions by approximately $1.6M. This analysis does not include potential changes to reported credit adjustments embedded in the $7.3M reported fair value.

Derivative Fair Value Sensitivity Analysis
(Thousands)	Henry Hub Futures and Fixed Price Swaps
Percent increase in NYMEX natural gas futures prices	0%		5%		10%		15%		20%
Estimated change in derivative fair value	$	—	$	(809)	$	(1,617)	$	(2,425)	$	(3,233)
Ending derivative fair value	$	7,327	$	6,518	$	5,710	$	4,902	$	4,094
Percent decrease in NYMEX natural gas futures prices	0%		(5)%		(10)%		(15)%		(20)%
Estimated change in derivative fair value	$	—	$	809	$	1,617	$	2,425	$	3,233
Ending derivative fair value	$	7,327	$	8,136	$	8,944	$	9,752	$	10,560

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New Jersey Resources Corporation

Part I

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK (Continued)                       

Wholesale Credit Risk

The following is a summary of gross and net credit exposures, grouped by investment and non-investment grade counterparties, as of March 31, 2024. Gross credit exposure for ES is defined as the unrealized fair value of derivative and energy trading contracts plus any outstanding wholesale receivable for the value of natural gas or power delivered and/or financial derivative commodity contract that has settled for which payment has not yet been received. Gross credit exposure for S&T is defined as demand and estimated usage fees for contracted services and/or market value of loan balances for which payment has not yet been received. Net credit exposure is defined as gross credit exposure reduced by collateral received from counterparties and/or payables, where netting agreements exist. The amounts presented below exclude accounts receivable for NJNG retail natural gas sales and services.

ES', CEV's and S&T's counterparty credit exposure as of March 31, 2024, is as follows:

(Thousands)	Gross Credit Exposure			Net Credit Exposure
Investment grade		$	98,726		$	94,533
Noninvestment grade		7,471			1,095
Internally rated investment grade		19,605			19,394
Internally rated noninvestment grade		22,333			15,380
Total		$	148,135		$	130,402

NJNG's counterparty credit exposure as of March 31, 2024, is as follows:

(Thousands)	Gross Credit Exposure			Net Credit Exposure
Investment grade		$	14,424		$	13,261
Noninvestment grade		1,663			—
Internally rated investment grade		383			—
Internally rated noninvestment grade		144			1
Total		$	16,614		$	13,262

Due to the inherent volatility in the market price for natural gas, electricity and SRECs, the market value of contractual positions with individual counterparties could exceed established credit limits or collateral provided by those counterparties. If a counterparty failed to perform the obligations under its contract (for example, failed to make payment for natural gas received), we could sustain a loss. This loss would comprise the loss on natural gas delivered but not paid for and/or the cost of replacing natural gas not delivered or received at a price that exceeds the original contract price. Any such loss could have a material impact on our financial condition, results of operations or cash flows.

Effects of Interest Rate and Foreign Currency Rate Fluctuations

We are also exposed to changes in interest rates on our debt hedges, variable rate debt and changes in foreign currency rates for our business conducted in Canada using Canadian dollars. We do not believe an immediate 10% increase or decrease in interest rates or foreign currency rates would have a material effect on our operating results or cash flows.

Information regarding NJR's interest rate risk can be found in Item 7A. Quantitative and Qualitative Disclosures About Market Risks and the Liquidity and Capital Resources - Debt section of Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

Effects of Inflation

Any change in price levels has an effect on operating results due to the capital-intensive and regulated nature of our utility subsidiary. The Company’s operations are sensitive to increases in the rate of inflation because of its operational and capital spending requirements in both its regulated and non-regulated businesses. We attempt to minimize the effects of inflation through cost control, productivity improvements and regulatory actions, when appropriate. See Item 1A. Risk Factors for additional information related to the impact of recent increases in inflation rates.

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New Jersey Resources Corporation

Part I

ITEM 4. CONTROLS AND PROCEDURES                                                                                                                             

Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of the end of the period covered by this report. Based on this evaluation, our principal executive officer and principal financial officer concluded that, as of end of the period covered by this report, our disclosure controls and procedures are effective, to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There has been no change in internal control over financial reporting (as such term is defined in Exchange Act Rule 13a-15(f)) that occurred during the quarter ended March 31, 2024, that has materially affected, or is reasonably likely to materially affect, internal control over financial reporting.

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New Jersey Resources Corporation

Part II

ITEM 1. LEGAL PROCEEDINGS                                                                                                                                                

Information regarding reportable legal proceedings is contained in Part I, Item 3. Legal Proceedings in our Annual Report on Form 10-K for the year ended September 30, 2023, and is set forth in Part I, Item 1, Note 13. Commitments and Contingent Liabilities-Legal Proceedings on the Unaudited Condensed Consolidated Financial Statements, which is incorporated by reference. No legal proceedings became reportable during the quarter ended March 31, 2024, and there have been no material developments during such quarter regarding any previously reported legal proceedings, which have not been previously disclosed.

ITEM 1A. RISK FACTORS                                                                                                                                                            

While we attempt to identify, manage and mitigate risks and uncertainties associated with our business to the extent practical, under the circumstances, some level of risk and uncertainty will always be present. Part I, Item 1A. Risk Factors of our 2023 Annual Report on Form 10-K includes a detailed discussion of our risk factors. Those risks and uncertainties have the potential to materially affect our financial condition and results of operations. There have been no material changes in our risk factors from those previously disclosed in Part I, Item 1A, of our 2023 Annual Report on Form 10-K.

ITEM 2. UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS                                                 

The following table sets forth our repurchase activity for the quarter ended March 31, 2024:

Period	Total Number of Shares (or Units) Purchased	Average Price Paid per Share (or Unit)	Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	Maximum Number (or Approximate Dollar Value) of Shares (or Units) That May Yet Be Purchased Under the Plans or Programs
01/01/24 - 01/31/24	—	—	—	1,685,053
02/01/24 - 02/29/24	—	—	—	1,685,053
03/01/24 - 03/31/24	—	—	—	1,685,053
Total	—	—	—	1,685,053

The stock repurchase plan, which was authorized by our Board of Directors, became effective in September 1996 and as of March 31, 2024, included 19.5M shares of common stock for repurchase, of which, approximately 1.7M shares remained available for repurchase. The stock repurchase plan will expire when we have repurchased all shares authorized for repurchase thereunder, unless the repurchase plan is earlier terminated by action of our Board of Directors or further shares are authorized for repurchase.

ITEM 5. OTHER INFORMATION                                                                                                                                                

Rule 10b5-1 Trading Plans

During the three months ended March 31, 2024, no director or officer (as defined by Rule 16a-1(f) of the Exchange Act) of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K, except as follows:

On February 23, 2024, Stephen D. Westhoven, our President and Chief Executive Officer and a director, adopted a Rule 10b5-1 trading arrangement, which is intended to satisfy the affirmative defense of Rule 10b5-1(c). The Rule 10b5-1 trading arrangement provides for sales of up to 50,000 shares of our common stock beginning on May 23, 2024 until December 31, 2024, or once all of the shares have been sold. Actual sale transactions will be disclosed publicly in filings with the SEC in accordance with applicable securities laws, rules and regulations.

67

New Jersey Resources Corporation

Part II

ITEM 6. EXHIBITS                                                                                                                                                                          

Exhibit
Number Exhibit Description

31.1+	Certification of the Chief Executive Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002
31.2+	Certification of the Chief Financial Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002
32.1+ †	Certification of the Chief Executive Officer pursuant to section 906 of the Sarbanes-Oxley Act of 2002
32.2+ †	Certification of the Chief Financial Officer pursuant to section 906 of the Sarbanes-Oxley Act of 2002
101+	Interactive Data File (Form 10-Q, for the fiscal period ended March 31, 2024, furnished in iXBRL (Inline eXtensible Business Reporting Language))
104+	Cover Page Interactive Data File included in Exhibit 101

________________________________

+    Filed herewith.

†    This certificate accompanies this report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by NJR for purposes of Section 18 or any other provision of the Exchange Act.

68

New Jersey Resources Corporation

Part II

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		NEW JERSEY RESOURCES CORPORATION
		(Registrant)
Date:	May 7, 2024
		By:/s/ Stephen M. Skrocki
		Stephen M. Skrocki
		Corporate Controller (Principal Accounting Officer)

69

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

 I, Stephen D. Westhoven, certify that:

1)I have reviewed this report on Form 10-Q of New Jersey Resources Corporation;

2)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4)The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5)The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 7, 2024	By:	/s/ Stephen D. Westhoven
			Stephen D. Westhoven
			President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

 I, Roberto F. Bel, certify that:

1)I have reviewed this report on Form 10-Q of New Jersey Resources Corporation;

2)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4)The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5)The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 7, 2024	By:	/s/ Roberto F. Bel
			Roberto F. Bel
			Senior Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Stephen D. Westhoven hereby certifies as follows:

(a)I am the Chief Executive Officer of New Jersey Resources Corporation (the "Company");

(b)To the best of my knowledge, this quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2024, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(c)To the best of my knowledge, based upon a review of this report, the information contained in this periodic report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	May 7, 2024	By:	/s/ Stephen D. Westhoven
			Stephen D. Westhoven
			President and Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Roberto F. Bel hereby certifies as follows:

(a)I am the Chief Financial Officer of New Jersey Resources Corporation (the "Company");

(b)To the best of my knowledge, this quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2024, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(c)To the best of my knowledge, based upon a review of this report, the information contained in this periodic report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	May 7, 2024	By:	/s/ Roberto F. Bel
			Roberto F. Bel
			Senior Vice President and Chief Financial Officer

XML

Cover Page - shares	6 Months Ended
	Mar. 31, 2024	May 03, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-08359
Entity Registrant Name	NEW JERSEY RESOURCES CORPORATION
Entity Incorporation, State or Country Code	NJ
Entity Tax Identification Number	22-2376465
Entity Address, Address Line One	1415 Wyckoff Road
Entity Address, City or Town	Wall
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07719
City Area Code	(732)
Local Phone Number	938‑1480
Title of 12(b) Security	Common Stock - $2.50 Par Value
Trading Symbol	NJR
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Business	false
Entity Common Stock, Shares Outstanding		98,822,278
Entity Central Index Key	0000356309
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
OPERATING REVENUES
Utility	$ 462,863	$ 400,500	$ 755,956	$ 757,909
Nonutility	195,050	243,527	369,167	609,685
Total operating revenues	657,913	644,027	1,125,123	1,367,594
Natural gas purchases:
Related parties	1,799	1,770	3,678	3,597
Operation and maintenance	107,223	99,095	201,662	178,596
Regulatory rider expenses	29,229	23,154	48,418	41,405
Depreciation and amortization	40,075	38,090	80,362	74,773
Total operating expenses	487,691	478,843	819,082	1,029,621
OPERATING INCOME	170,222	165,184	306,041	337,973
Other income, net	15,420	4,779	21,761	9,434
Interest expense, net of capitalized interest	31,621	30,261	63,094	59,752
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES	154,021	139,702	264,708	287,655
Income tax provision	33,947	30,586	56,883	63,564
Equity in earnings of affiliates	738	1,131	2,398	2,077
NET INCOME	$ 120,812	$ 110,247	$ 210,223	$ 226,168
EARNINGS PER COMMON SHARE
Basic (usd per share)	$ 1.23	$ 1.14	$ 2.14	$ 2.34
Diluted (usd per share)	$ 1.22	$ 1.13	$ 2.13	$ 2.32
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic (in shares)	98,377	96,893	98,123	96,689
Diluted (in shares)	99,102	97,556	98,839	97,346
Utility
Natural gas purchases:
Gas purchases - Utility and Nonutility	$ 204,347	$ 156,370	$ 320,467	$ 338,816
Nonutility
Natural gas purchases:
Gas purchases - Utility and Nonutility	$ 105,018	$ 160,364	$ 164,495	$ 392,434

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 120,812	$ 110,247	$ 210,223	$ 226,168
Other comprehensive income, net of tax
Reclassifications of losses to net income on derivatives designated as hedging instruments, net of tax of $(80), $(80), $(159) and $(159), respectively	262	264	526	527
Adjustment to postemployment benefit obligation, net of tax of $(2,908), $(13), $(2,948) and $(25), respectively	9,624	41	9,755	82
Other comprehensive income, net of tax	9,886	305	10,281	609
Comprehensive income	$ 130,698	$ 110,552	$ 220,504	$ 226,777

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Tax on reclassifications of losses to net income on derivatives	$ (80)	$ (80)	$ (159)	$ (159)
Tax on adjustment to postemployment benefit obligation	$ (2,908)	$ (13)	$ (2,948)	$ (25)

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 210,223	$ 226,168
Adjustments to reconcile net income to cash flows from operating activities
Unrealized loss (gain) on derivative instruments	20,057	(17,532)
Depreciation and amortization	80,362	74,773
Amortization of acquired wholesale energy contracts	260	1,283
Allowance for equity used during construction	(3,572)	(2,801)
Allowance for doubtful accounts	(24)	(395)
Non cash lease expense	2,130	1,848
Deferred income taxes	49,301	36,072
Equivalent value of ITCs recognized on equipment financing	(10,605)	(899)
Manufactured gas plant remediation costs	(12,577)	(4,362)
Cost of removal - asset retirement obligations	(763)	(644)
Contributions to postemployment benefit plans	(2,191)	(634)
Taxes related to stock-based compensation	1,186	554
Changes in:
Components of working capital	(3,021)	(42,519)
Other noncurrent assets and liabilities	7,836	72,209
Cash flows from operating activities	338,602	343,121
Expenditures for:
Cost of removal	(17,436)	(16,757)
Distribution from equity investees in excess of equity in earnings	2,284	1,374
Cash flows used in investing activities	(235,018)	(261,737)
CASH FLOWS USED IN FINANCING ACTIVITIES
Proceeds from long-term debt	50,000	175,000
Payments of long-term debt	(82,790)	(10,534)
Payments of term loan	0	(150,000)
Payments of short-term debt, net	(55,950)	(86,300)
Proceeds from sale leaseback transactions - solar	24,394	61,808
Proceeds from sale leaseback transactions - natural gas meters	8,814	8,441
Payments of common stock dividends	(82,156)	(75,200)
Proceeds from waiver discount issuance of common stock	35,838	17,919
Proceeds from issuance of common stock - DRP	7,522	7,610
Tax withholding payments related to net settled stock compensation	(5,027)	(4,024)
Cash flows used in financing activities	(99,355)	(55,280)
Change in cash, cash equivalents and restricted cash	4,229	26,104
Cash, cash equivalents and restricted cash at beginning of period	1,517	1,452
Cash, cash equivalents and restricted cash at end of period	5,746	27,556
CHANGES IN COMPONENTS OF WORKING CAPITAL
Receivables	(144,321)	(8,877)
Inventories	115,166	185,444
Recovery of natural gas costs	(3,853)	(28,825)
Natural gas purchases payable	13,178	(159,016)
Natural gas purchases payable - related parties	0	5
Deferred revenue, current	48,294	1,587
Accounts payable and other	(15,888)	(24,095)
Prepaid expenses	(6,350)	(6,493)
Prepaid and accrued taxes	30,705	51,591
Restricted broker margin accounts	(15,015)	(43,414)
Customers' credit balances and deposits	(20,032)	(7,725)
Other current assets and liabilities	(4,905)	(2,701)
Total	(3,021)	(42,519)
Cash paid for:
Interest (net of amounts capitalized)	60,256	57,622
Income taxes	6,699	1,967
Accrued capital expenditures	17,513	24,318
Utility plant
Expenditures for:
Payments to acquire PP&E	(160,937)	(157,914)
Solar equipment
Expenditures for:
Payments to acquire PP&E	(37,083)	(57,699)
Storage and Transportation and other
Expenditures for:
Payments to acquire PP&E	$ (21,846)	$ (30,741)

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Sep. 30, 2023
PROPERTY, PLANT AND EQUIPMENT
Utility plant, at cost	$ 4,012,235	$ 3,843,037
Construction work in progress	223,421	237,428
Nonutility plant and equipment, at cost	1,791,100	1,767,306
Construction work in progress	171,396	142,768
Total property, plant and equipment	6,198,152	5,990,539
Accumulated depreciation and amortization, utility plant	(753,750)	(714,087)
Accumulated depreciation and amortization, nonutility plant and equipment	(278,854)	(254,397)
Property, plant and equipment, net	5,165,548	5,022,055
CURRENT ASSETS
Cash and cash equivalents	5,036	954
Customer accounts receivable
Billed	185,069	97,540
Unbilled revenues	74,456	19,100
Allowance for doubtful accounts	(9,576)	(11,036)
Regulatory assets	93,887	73,587
Natural gas in storage, at average cost	80,996	199,501
Materials and supplies, at average cost	30,361	27,022
Prepaid expenses	16,091	9,741
Prepaid taxes	18,299	43,046
Derivatives, at fair value	14,056	30,755
Restricted broker margin accounts	19,310	20,796
Other current assets	25,726	21,071
Total current assets	553,711	532,077
NONCURRENT ASSETS
Investments in equity method investees	101,778	104,134
Regulatory assets	535,104	584,830
Operating lease assets	177,176	175,740
Derivatives, at fair value	910	1,564
Software costs	9,734	8,375
Deferred income taxes	22,848	28,383
Postemployment employee benefit assets	18,618	18,684
Other noncurrent assets	61,950	61,654
Total noncurrent assets	928,118	983,364
Total assets	6,647,377	6,537,496
CAPITALIZATION
Common stock, $2.50 par value; authorized 150,000,000 shares; outstanding shares March 31, 2024 — 98,744,915; September 30, 2023 — 97,584,455	246,367	243,458
Premium on common stock	604,009	558,654
Accumulated other comprehensive income (loss), net of tax	322	(9,959)
Treasury stock at cost and other; shares March 31, 2024 — 16,302; September 30, 2023 — 13,041	22,936	20,748
Retained earnings	1,305,591	1,177,834
Common stock equity	2,179,225	1,990,735
Long-term debt	2,726,221	2,768,017
Total capitalization	4,905,446	4,758,752
CURRENT LIABILITIES
Current maturities of long-term debt	148,375	116,155
Short-term debt	196,150	252,100
Natural gas purchases payable	64,455	51,277
Natural gas purchases payable to related parties	859	859
Deferred revenue	109,698	61,404
Accounts payable and other	127,159	151,790
Dividends payable	41,290	40,981
Accrued taxes	16,048	10,090
Regulatory liabilities	33,163	32,287
New Jersey Clean Energy Program	6,827	15,804
Derivatives, at fair value	10,725	16,145
Operating lease liabilities	4,780	4,772
Restricted broker margin accounts	4,689	8,029
Customers' credit balances and deposits	24,878	44,910
Total current liabilities	789,096	806,603
NONCURRENT LIABILITIES
Deferred income taxes	330,805	285,427
Deferred investment tax credits	2,295	2,434
Deferred revenue	612	659
Derivatives, at fair value	13,791	7,967
Manufactured gas plant remediation	157,813	169,390
Postemployment employee benefit liability	42,333	102,528
Regulatory liabilities	178,276	180,458
Operating lease liabilities	150,971	148,023
Asset retirement obligations	62,817	61,993
Other noncurrent liabilities	13,122	13,262
Total noncurrent liabilities	952,835	972,141
Commitments and contingent liabilities (Note 13)
Total capitalization and liabilities	6,647,377	6,537,496
Related Party
CURRENT LIABILITIES
Natural gas purchases payable to related parties	$ 859	$ 859

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2024	Sep. 30, 2023
Statement of Financial Position [Abstract]
Common stock, par value (usd per share)	$ 2.50	$ 2.50
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares outstanding (in shares)	98,744,915	97,584,455
Treasury stock at cost and other, shares (in shares)	16,302	13,041

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY (Unaudited) - USD ($) $ in Thousands		Total	Common Stock	Premium on Common Stock	Accumulated Other Comprehensive (Loss) Income	Treasury Stock and Other	Retained Earnings
Balance as of beginning of period (in shares) at Sep. 30, 2022			96,250,000
Balance as of beginning of period at Sep. 30, 2022		$ 1,817,210	$ 241,616	$ 519,697	$ (4,826)	$ (6,805)	$ 1,067,528
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		115,921					115,921
Other comprehensive income		304			304
Common stock issued:
Incentive compensation plan (in shares)			92,000
Incentive compensation plan		3,472	$ 229	3,243
Dividend reinvestment plan (in shares)	[1]		93,000
Dividend reinvestment plan	[1]	3,866		437		3,429
Waiver discount (in shares)			368,000
Waiver discount		17,919		4,469		13,450
Cash dividend declared		(37,665)					(37,665)
Treasury stock and other		1,768				1,768
Balance as of end of period (in shares) at Dec. 31, 2022			96,803,000
Balance as of end of period at Dec. 31, 2022		1,922,795	$ 241,845	527,846	(4,522)	11,842	1,145,784
Balance as of beginning of period (in shares) at Sep. 30, 2022			96,250,000
Balance as of beginning of period at Sep. 30, 2022		1,817,210	$ 241,616	519,697	(4,826)	(6,805)	1,067,528
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		226,168
Other comprehensive income		609
Balance as of end of period (in shares) at Mar. 31, 2023			96,901,000
Balance as of end of period at Mar. 31, 2023		2,000,836	$ 241,919	529,819	(4,217)	15,075	1,218,240
Balance as of beginning of period (in shares) at Dec. 31, 2022			96,803,000
Balance as of beginning of period at Dec. 31, 2022		1,922,795	$ 241,845	527,846	(4,522)	11,842	1,145,784
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		110,247					110,247
Other comprehensive income		305			305
Common stock issued:
Incentive compensation plan (in shares)			29,000
Incentive compensation plan		1,170	$ 74	1,096
Dividend reinvestment plan (in shares)			77,000
Dividend reinvestment plan		3,671		877		2,794
Cash dividend declared		(37,791)					(37,791)
Treasury stock and other (in shares)			(8,000)
Treasury stock and other		439				439
Balance as of end of period (in shares) at Mar. 31, 2023			96,901,000
Balance as of end of period at Mar. 31, 2023		$ 2,000,836	$ 241,919	529,819	(4,217)	15,075	1,218,240
Balance as of beginning of period (in shares) at Sep. 30, 2023		97,584,455	97,584,000
Balance as of beginning of period at Sep. 30, 2023		$ 1,990,735	$ 243,458	558,654	(9,959)	20,748	1,177,834
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		89,411					89,411
Other comprehensive income		395			395
Common stock issued:
Incentive compensation plan (in shares)			116,000
Incentive compensation plan		3,741	$ 290	3,451
Dividend reinvestment plan (in shares)			94,000
Dividend reinvestment plan		3,788	$ 236	3,552
Waiver discount (in shares)			410,000
Waiver discount		17,919	$ 1,025	16,894
Cash dividend declared		(41,176)					(41,176)
Treasury stock and other (in shares)			(2,000)
Treasury stock and other		1,388				1,388
Balance as of end of period (in shares) at Dec. 31, 2023			98,202,000
Balance as of end of period at Dec. 31, 2023		$ 2,066,201	$ 245,009	582,551	(9,564)	22,136	1,226,069
Balance as of beginning of period (in shares) at Sep. 30, 2023		97,584,455	97,584,000
Balance as of beginning of period at Sep. 30, 2023		$ 1,990,735	$ 243,458	558,654	(9,959)	20,748	1,177,834
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		210,223
Other comprehensive income		$ 10,281
Balance as of end of period (in shares) at Mar. 31, 2024		98,744,915	98,745,000
Balance as of end of period at Mar. 31, 2024		$ 2,179,225	$ 246,367	604,009	322	22,936	1,305,591
Balance as of beginning of period (in shares) at Dec. 31, 2023			98,202,000
Balance as of beginning of period at Dec. 31, 2023		2,066,201	$ 245,009	582,551	(9,564)	22,136	1,226,069
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		120,812					120,812
Other comprehensive income		9,886			9,886
Common stock issued:
Incentive compensation plan (in shares)			25,000
Incentive compensation plan		1,242	$ 64	1,178
Dividend reinvestment plan (in shares)			84,000
Dividend reinvestment plan		3,655	$ 209	3,446		0
Waiver discount (in shares)			435,000
Waiver discount		17,919	$ 1,085	16,834
Cash dividend declared		(41,290)					(41,290)
Treasury stock and other (in shares)			(1,000)
Treasury stock and other		$ 800				800
Balance as of end of period (in shares) at Mar. 31, 2024		98,744,915	98,745,000
Balance as of end of period at Mar. 31, 2024		$ 2,179,225	$ 246,367	$ 604,009	$ 322	$ 22,936	$ 1,305,591

[1] Certain shares sold through the DRP issued from treasury stock are at average cost, which may differ from the actual market price paid.

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CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Statement of Stockholders' Equity [Abstract]
Cash dividend declared per share (usd per share)	$ 0.42	$ 0.42	$ 0.39	$ 0.39

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NATURE OF THE BUSINESS

6 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NATURE OF THE BUSINESS

1. NATURE OF THE BUSINESS

The Company provides regulated natural gas distribution services, transmission and storage services and operates certain unregulated businesses primarily through the following:

NJNG provides natural gas utility service to approximately 581,600 customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean and Sussex counties in New Jersey and is subject to rate regulation by the BPU. NJNG comprises the Natural Gas Distribution segment.

Clean Energy Ventures, the Company's clean energy subsidiary, comprises the CEV segment and invests in, owns and operates clean energy projects, including commercial and residential solar installations located in New Jersey, Rhode Island, New York, Connecticut, Michigan and Indiana.

Energy Services comprises the ES segment. ES maintains and transacts around a portfolio of natural gas transportation and storage capacity contracts and provides physical wholesale energy, retail energy and energy management services in the U.S. and Canada.

NJR Midstream Holdings Corporation, which comprises the S&T segment, invests in energy-related ventures through its subsidiaries. The Company operates natural gas storage and transmission assets through the wholly-owned subsidiaries of Leaf River and Adelphia, and is subject to rate regulation by FERC. The Company holds a 50% combined ownership interest in Steckman Ridge, located in Pennsylvania which is accounted for under the equity method of accounting.

NJR Retail Holdings Corporation has one principal subsidiary, NJRHS, which provides heating, central air conditioning, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey. NJRHS is included in HSO.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared by the Company in accordance with the rules and regulations of the U.S. Securities and Exchange Commission and GAAP. The September 30, 2023 Balance Sheet data is derived from the audited financial statements of the Company. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's 2023 Annual Report on Form 10-K.

The Unaudited Condensed Consolidated Financial Statements include the accounts of NJR and its subsidiaries. In the opinion of management, the accompanying Unaudited Condensed Consolidated Financial Statements reflect all adjustments necessary for a fair presentation of the results of the interim periods presented. These adjustments are of a normal and recurring nature. Because of the seasonal nature of the Company's utility and wholesale energy services operations, in addition to other factors, the financial results for the interim periods presented are not indicative of the results that are to be expected for the fiscal year ending September 30, 2024. Intercompany transactions and accounts have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires the Company to make estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingencies during the reporting period. On a quarterly basis or more frequently whenever events or changes in circumstances indicate a need, the Company evaluates its estimates, including those related to the calculation of the fair value of derivative instruments, debt, equity method investments, lease liabilities, unbilled revenues, allowance for doubtful accounts, provisions for depreciation and amortization, long-lived assets, regulatory assets and liabilities, income taxes, pensions and other postemployment benefits, contingencies related to environmental matters and litigation. Asset retirement obligations are evaluated periodically as required. The Company’s estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.

The Company has legal, regulatory and environmental proceedings during the normal course of business that can result in loss contingencies. When evaluating the potential for a loss, the Company will establish a reserve if a loss is probable and can be reasonably estimated, in which case it is the Company’s policy to accrue the full amount of such estimates. Where the information is sufficient only to establish a range of probable liability, and no point within the range is more likely than any other, it is the Company’s policy to accrue the lower end of the range. In the normal course of business, estimated amounts are subsequently adjusted to actual results that may differ from estimates.

Revenues

Revenues from the sale of natural gas to NJNG customers are recognized in the period that natural gas is delivered and consumed by customers, including an estimate for unbilled revenue. NJNG records unbilled revenue for natural gas services. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the month. At the end of each month, the amount of natural gas delivered to each customer after the last meter reading through the end of the respective accounting period is estimated, and recognizes unbilled revenues related to these amounts. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects, unaccounted-for natural gas and the most current tariff rates.

CEV recognizes revenue when SRECs are transferred to counterparties. SRECs are physically delivered through the transfer of certificates as per contractual settlement schedules. The Clean Energy Act of 2018 established guidelines for the closure of the SREC registration program to new applicants in New Jersey. The SREC program officially closed to new qualified solar projects on April 30, 2020.

In December 2019, the BPU established the TREC as the successor to the SREC program. TRECs provide a fixed compensation base multiplied by an assigned project factor in order to determine their value. The project factor is determined by the type and location of the project, as defined.

In July 2021, the BPU established a new successor solar incentive program. The Administratively Determined Incentive Program provides administratively set incentives for net metered residential projects and net metered non-residential projects of 5 MW or less. RECs generated through the production of electricity under this program are known as SREC IIs.

TRECs and SREC IIs generated are required to be purchased monthly by a REC program administrator as appointed by the BPU. Revenue for TRECs and SREC IIs are recognized upon generation and are transferred monthly based upon metered solar electricity activity.

Revenues for ES are recognized when the natural gas is physically delivered to the customer. In addition, changes in the fair value of derivatives that economically hedge the forecasted sales of the natural gas are recognized in operating revenues as they occur. ES also recognizes changes in the fair value of SREC derivative contracts as a component of operating revenues.

During December 2020, ES entered into a series of AMAs with an investment grade public utility to release pipeline capacity associated with certain natural gas transportation contracts, which commenced in November 2021. The AMAs include a series of temporary and permanent releases and revenue under these agreements is recognized as the performance obligations are satisfied. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed upon term. For permanent releases of pipeline capacity, which represent a transfer of contractual rights for such capacity, revenue is recognized upon the transfer of the underlying contractual rights. ES recognized operating revenue of $9.5M during both the three months ended March 31, 2024 and 2023, and $19.0M and $29.5M during the six months ended March 31, 2024 and 2023, respectively, on the Unaudited Condensed Consolidated Statements of Operations. Amounts received in excess of revenue totaling $107.2M and $58.7M are included in deferred revenue on the Unaudited Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023, respectively.

S&T generates revenues from firm storage contracts and transportation contracts, related usage fees and hub services for the use of storage space, injections and withdrawals from their natural gas storage facility and the delivery of natural gas to customers. Demand fees are recognized as revenue over the term of the related agreement while usage fees and hub services revenues are recognized as services are performed.

Revenues from all other activities are recorded in the period during which products or services are delivered and accepted by customers, or over the related contractual term. See Note 3. Revenue for further information.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on deposit and temporary investments with maturities of three months or less, and excludes restricted cash related to escrow balances for utility plant projects at NJNG, which are recorded in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets.

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Unaudited Condensed Consolidated Balance Sheets to the total amounts in the Unaudited Condensed Consolidated Statements of Cash Flows as follows:

(Thousands)	March 31, 2024		September 30, 2023		March 31, 2023
Balance Sheet
Cash and cash equivalents	$	5,036	$	954	$	27,095
Restricted cash in other noncurrent assets	$	710	$	563	$	461
Statements of Cash Flow
Cash, cash equivalents and restricted cash	$	5,746	$	1,517	$	27,556

Allowance for Doubtful Accounts

The Company segregates financial assets, primarily trade receivables and unbilled revenues due in one year or less, into portfolio segments based on shared risk characteristics, such as geographical location and regulatory environment, for evaluation of expected credit losses. Historical and current information, such as average write-offs, are applied to each portfolio segment to estimate the allowance for losses on uncollectible receivables. Additionally, the allowance for losses on uncollectible receivables is adjusted for reasonable and supportable forecasts of future economic conditions, which can include changing weather, commodity prices, regulations, and macroeconomic factors, such as unemployment rates among others.

Loans Receivable

NJNG currently provides loans, with terms ranging from two to 10 years, to customers that elect to purchase and install certain energy-efficient equipment in accordance with its BPU-approved SAVEGREEN program. The loans are recognized at fair value on the Unaudited Condensed Consolidated Balance Sheets. The Company has $15.8M and $15.1M recorded in other current assets and $43.6M and $39.0M in other noncurrent assets as of March 31, 2024 and September 30, 2023, respectively, on the Unaudited Condensed Consolidated Balance Sheets, related to the loans. The Company regularly evaluates the credit quality and collection profile of its customers. If NJNG determines a loan is impaired, the basis of the loan would be subject to regulatory review for recovery. As of March 31, 2024 and September 30, 2023, the Company has not recorded any impairments for SAVEGREEN loans.

Natural Gas in Storage

The following table summarizes natural gas in storage, at average cost by segment as of:

	March 31, 2024				September 30, 2023
($ in thousands)	Natural Gas in Storage			Bcf	Natural Gas in Storage			Bcf
NJNG		$	60,539	9.2		$	175,025	29.1
ES		20,457		11.3		24,476		14.6
Total		$	80,996	20.5		$	199,501	43.7

Software Costs

The Company capitalizes certain costs, such as software design and configuration, coding, testing and installation, that are incurred to purchase or create and implement computer software for internal use. Capitalized costs include external costs of materials and services utilized in developing or obtaining internal-use software and payroll and payroll-related costs for employees who are directly associated with and devote time to the internal-use software project. Maintenance costs are expensed as incurred. Upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Amortization is recorded on the straight-line basis over the estimated useful lives.

The following tables present the software costs included in the Unaudited Condensed Consolidated Financial Statements:

(Thousands)	March 31, 2024		September 30, 2023
Balance Sheets
Utility plant, at cost	$	88,234	$	51,282
Construction work in progress	$	45,573	$	55,012
Nonutility plant and equipment, at cost	$	344	$	344
Accumulated depreciation and amortization, utility plant	$	(9,728)	$	(7,480)
Accumulated depreciation and amortization, nonutility plant and equipment	$	(42)	$	(36)
Software costs	$	9,734	$	8,375

	Three Months Ended				Six Months Ended
	March 31,				March 31,
Statements of Operations	2024		2023		2024		2023
Operation and maintenance	$	2,674	$	3,886	$	5,927	$	7,638
Depreciation and amortization	$	1,265	$	957	$	2,254	$	1,828

Sale Leasebacks

NJNG utilizes sale leaseback arrangements as a financing mechanism to fund certain of its capital expenditures related to natural gas meters, whereby the physical asset is sold concurrent with an agreement to lease the asset back. These agreements include options to renew the lease or repurchase the asset at the end of the term. As NJNG retains control of the natural gas meters, these arrangements do not qualify as a sale. NJNG uses the financing method to account for the transactions. Proceeds from sale leaseback transactions are accounted for as financing arrangements and are included in long-term debt on the Unaudited Condensed Consolidated Balance Sheets.

In addition, for certain of its commercial solar energy projects, the Company enters into lease agreements that provide for the sale of commercial solar energy assets to third parties and the concurrent leaseback of the assets. For sale leaseback transactions where the Company has concluded that the arrangement does not qualify as a sale as the Company retains control of the underlying assets, the Company uses the financing method to account for the transaction. Under the financing method, the Company recognizes the proceeds received from the buyer-lessor that constitute a payment to acquire the solar energy asset as a financing arrangement, which is recorded as a component of debt on the Unaudited Condensed Consolidated Balance Sheets.

The Company continues to operate the solar assets and is responsible for related expenses and entitled to retain the revenue generated from SRECs, TRECs, SREC IIs and energy sales. The ITCs and other tax benefits associated with these solar projects transfer to the buyer; however, the payments are structured so that CEV is compensated for the transfer of the related tax attributes. Accordingly, CEV recognizes the equivalent value of the tax attributes in other income on the Unaudited Condensed Consolidated Statements of Operations over the respective five-year ITC recapture periods, starting with the second year of the lease.

See Note 9. Debt for more details regarding sale leaseback transactions recorded as financing arrangements.

Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in the components of accumulated other comprehensive income (loss), net of related tax effects during the three months ended March 31, 2024 and 2023:

(Thousands)	Cash Flow Hedges		Postemployment Benefit Obligation			Total
Balance as of December 31, 2023	$	(7,005)	$	(2,559)		$	(9,564)
Other comprehensive income (loss), net of tax
Other comprehensive income, before reclassifications, net of tax of $0, $(3,020), $(3,020), respectively	—		9,992			9,992
Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $(80), $112, $32, respectively	262		(368)		(1)	(106)
Net current-period other comprehensive income, net of tax of $(80), $(2,908), $(2,988), respectively	262		9,624			9,886
Balance as of March 31, 2024	$	(6,743)	$	7,065		$	322
Balance as of December 31, 2022	$	(8,059)	$	3,537		$	(4,522)
Other comprehensive income, net of tax
Amounts reclassified from accumulated other comprehensive income, net of tax of $(80), $(13), $(93)	264		41		(1)	305
Balance as of March 31, 2023	$	(7,795)	$	3,578		$	(4,217)

(1)Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations.

The following table presents the changes in the components of accumulated other comprehensive income (loss), net of related tax effects during the six months ended March 31, 2024 and 2023:

(Thousands)	Cash Flow Hedges		Postemployment Benefit Obligation			Total
Balance as of September 30, 2023	$	(7,269)	$	(2,690)		$	(9,959)
Other comprehensive income (loss), net of tax
Other comprehensive income, before reclassifications, net of tax of $0, $(3,020) and $(3,020), respectively	—		9,992			9,992
Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $(159), $72 and $(87), respectively	526		(237)		(1)	289
Net current-period other comprehensive income, net of tax of $(159), $(2,948), $(3,107), respectively	526		9,755			10,281
Balance as of March 31, 2024	$	(6,743)	$	7,065		$	322
Balance as of September 30, 2022	$	(8,322)	$	3,496		$	(4,826)
Other comprehensive income, net of tax
Amounts reclassified from accumulated other comprehensive income, net of tax of $(159), $(25) and $(184), respectively	527		82		(1)	609
Balance as of March 31, 2023	$	(7,795)	$	3,578		$	(4,217)

(1)Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations.

Reclassification

Certain prior period amounts have been reclassified to conform to the current period presentation. Deferred income taxes and postemployment employee benefit assets previously classified within other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets have been reclassified to their own categories. Intangible assets, net previously classified in its own category on the Unaudited Condensed Consolidated Balance Sheets has been reclassified into other noncurrent assets. Other noncurrent assets and other noncurrent liabilities previously classified in their own categories on the Unaudited Condensed Consolidated Statements of Cash Flow have been combined into one category.

Recently Adopted Updates to the Accounting Standards Codification

Business Combinations

In October 2021, the FASB issued ASU No. 2021-08, an amendment to ASC 805, Business Combinations, which requires that an acquirer recognize, and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The guidance was effective for the Company beginning October 1, 2023, and was applied on a prospective basis to new acquisitions following the date of adoption. As the Company has not executed a transaction that would qualify as a business combination, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption.

Derivatives and Hedging

In March 2022, the FASB issued ASU No. 2022-01, an amendment to ASC 815, Derivatives and Hedging, which addresses fair value hedge accounting of interest rate risk for portfolios of financial assets. This update further clarifies guidance previously released in ASU 2017-12 which established the "last-of-layer" method and this update renames that method as the “portfolio layer” method. The guidance was effective for the Company beginning October 1, 2023. As the Company does not currently apply hedge accounting to any of its risk management activities, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption.

Financial Instruments

In March 2022, the FASB issued ASU No. 2022-02, an amendment to ASC 326, Financial Instruments-Credit Losses, which eliminates the accounting guidance for creditors in troubled debt restructuring. It also aligns conflicting disclosure requirement guidance in ASC 326 by requiring disclosure of current-period gross write-offs by year of origination. The amendment also adds new disclosures for creditors with loan refinancing and restructuring for borrowers experiencing financial difficulty. The guidance was effective for the Company beginning October 1, 2023. Since the Company has not experienced a troubled debt restructuring, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption.

Other Recent Updates to the Accounting Standards Codification

Fair Value Measurement

In June 2022, the FASB issued ASU No. 2022-03, an amendment to ASC 820, Fair Value Measurement. The amendment clarifies the fair value principles when measuring the fair value of an equity security subject to a contractual sale restriction. The guidance is effective for the Company on October 1, 2024, and will be applied on a prospective basis. At this time, the Company does not have equity securities subject to contractual sale restrictions, and therefore this amendment would only impact the Company upon adoption if, in the future, it entered into such transactions.

Leases

In March 2023, the FASB issued ASU No. 2023-01, an amendment to ASC 842, Leases, which applies to arrangements between related parties under common control. This update requires that all entities with common control arrangements classify and account for these leases on the same basis as an arrangement with an unrelated party. If the lessee in these types of arrangements continues to control the use of the underlying asset through a lease, the leasehold improvements are to be amortized over the improvements’ useful life to the common control group, regardless of the lease term. The guidance is effective for the Company on October 1, 2024, and the Company will elect to apply it on a prospective basis. At this time, the Company does not have leases that are subject to this amendment, and therefore it would only impact the Company upon adoption if, in the future, it entered into such transactions.

Business Combinations

In August 2023, the FASB issued ASU No. 2023-05, an amendment to ASC 805, Business Combinations, which addresses how a joint venture should recognize contributions received upon its formation. Joint ventures must account for initial assets and liabilities received at fair value on the date the joint venture is formed. The guidance is effective for the Company for joint ventures formed beginning January 1, 2025, and the Company can elect to apply it either prospectively or retrospectively back to a joint venture’s formation date provided adequate information is available. Early adoption is permitted. This amendment would only impact the Company upon adoption if, in the future, it entered into an applicable transaction.

Segment Reporting

In November 2023, the FASB issued ASU No. 2023-07, an amendment to ASC 280, Segment Reporting, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The update requires entities to disclosure significant segment expenses that are regularly provided to the chief operating decision maker and included within segment profit and loss, and it enhances interim disclosure requirements to conform with annual requirements. This update becomes effective for the Company on October 1, 2024 for the first annual period and on October 1, 2025 for the interim periods. It will be applied retrospectively for the enhanced segment disclosure requirements to all periods presented, with early adoption permitted. The Company is currently evaluating the amendment to understand the impacts on its financial position, results of operations, cash flows and disclosures upon adoption.

Income Taxes

In December 2023, the FASB issued ASU No. 2023-09, an amendment to ASC 740, Income Taxes, which requires disaggregated information about a reporting entity’s effective tax rate reconciliation and income taxes paid. It will provide investors more detailed income tax disclosures that would be useful in making capital allocation decisions. The guidance is effective for the Company on October 1, 2025, and can be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the amendment to understand the impacts on its financial position, results of operations, cash flows and disclosures upon adoption.

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REVENUE

6 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

REVENUE

3. REVENUE

Revenue is recognized when a performance obligation is satisfied by transferring control of a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer using the output method of progress. The Company elected to apply the invoice practical expedient for recognizing revenue, whereby the amounts invoiced to customers represent the value to the customer and the Company’s performance completion as of the invoice date. Therefore, the Company does not disclose related unsatisfied performance obligations. The Company also elected the practical expedient to exclude from the transaction price all sales taxes that are assessed by a governmental authority and therefore presents sales tax net in operating revenues on the Unaudited Condensed Consolidated Statements of Operations.

Below is a listing of performance obligations that arise from contracts with customers, along with details on the satisfaction of each performance obligation, the significant payment terms and the nature of the goods and services being transferred, by reporting segment and other business operations:

Revenue Recognized Over Time:
Segment/ Operations	Performance Obligation	Description
NJNG	Natural gas utility sales	NJNG's performance obligation is to provide natural gas to residential, commercial and industrial customers as demanded, based on regulated tariff rates, which are established by the BPU. Revenues from the sale of natural gas are recognized in the period that natural gas is delivered and consumed by customers, including an estimate for quantities consumed but not billed during the period. Payment is due each month for the previous month's deliveries. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the billing period. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects and the most current tariff rates. NJNG is entitled to be compensated for performance completed until service is terminated. Customers may elect to purchase the natural gas commodity from NJNG or may contract separately to purchase natural gas directly from third-party suppliers. As NJNG is acting as an agent on behalf of the third-party supplier, revenue is recorded for the delivery of natural gas to the customer.
CEV	Commercial solar electricity	CEV operates wholly-owned solar projects that recognize revenue as electricity is generated and transferred to the customer. The performance obligation is to provide electricity to the customer in accordance with contract terms or the interconnection agreement and is satisfied upon transfer of electricity generated. Revenue is recognized as invoiced and the payment is due each month for the previous month's services.

Revenue Recognized Over Time (continued):
Segment/ Operations	Performance Obligation	Description
CEV	Residential solar electricity	CEV provides access to residential rooftop and ground-mount solar equipment to customers who then pay the Company a monthly fee. The performance obligation is to provide electricity to the customer based on generation from the underlying residential solar asset and is satisfied upon transfer of electricity generated. Revenue is derived from the contract terms and is recognized as invoiced, with the payment due each month for the previous month's services.
CEV	Renewable energy certificates	Certain CEV projects generate TRECs and SREC IIs under the established Administratively Determined Incentive Program. A TREC or SREC II is created for every MWh of electricity produced by a solar generator. The performance obligation of CEV is to generate electricity. TRECs and SREC IIs under the Administratively Determined Incentive Program are purchased monthly by a REC Administrator. Revenue is recognized upon generation.
ES	Natural gas services	The performance obligation of ES is to provide the customer transportation, storage and asset management services on an as-needed basis. ES generates revenue through management fees, demand charges, reservation fees and transportation charges centered around the buying and selling of the natural gas commodity, representing one series of distinct performance obligations. Revenue is recognized based upon the underlying natural gas quantities physically delivered and the customer obtaining control. ES invoices customers in line with the terms of the contract and based on the services provided. Payment is due upon receipt of the invoice. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed upon term.
S&T	Natural gas services	The performance obligation of S&T is to provide the customer with storage and transportation services. S&T generates revenues from firm storage contracts and transportation contracts, injection and withdrawal at the storage facility and the delivery of natural gas to customers. Revenue is recognized over time as customers receive the benefits of its service as it is performed on their behalf using an output method based on actual deliveries. Demand fees are recognized as revenue over the term of the related agreement.
HSO	Service contracts	Home Services enters into service contracts with homeowners to provide maintenance and replacement services of applicable heating, cooling or ventilation equipment. NJR Retail enters into warranty contracts with homeowners for various appliances. All services provided relate to a distinct performance obligation which is to provide services for the specific equipment over the term of the contract. Revenue is recognized on a straight-line basis over the term of the contract and payment is due upon receipt of the invoice.
Revenue Recognized at a Point in Time:
ES	Natural gas services	For a permanent release of pipeline capacity, the performance obligation of ES is the release of the pipeline capacity associated with certain natural gas transportation contracts and the transfer of the underlying contractual rights to the counterparty. Revenue is recognized upon the transfer of the underlying contractual rights.
S&T	Natural gas services	The performance obligation of S&T is to provide the customer with storage and transportation services. S&T generates revenues from usage fees and hub services for the use of storage space, injection and withdrawal from the storage facility. Hub services include park and loan transactions and wheeling. Usage fees and hub services revenues are recognized as services are performed.
HSO	Installations	Home Services installs appliances, including but not limited to, furnaces, air conditioning units, boilers and generators for customers. The distinct performance obligation is the installation of the contracted appliance, which is satisfied at the point in time the item is installed. The transaction price for each installation differs accordingly. Revenue is recognized at a point in time upon completion of the installation, which is when the customer is billed.

Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the three months ended March 31, 2024 and 2023, are as follows:

(Thousands)	NJNG		CEV		ES	S&T	HSO	Total
2024
Natural gas utility sales (1)	$	371,019	—		—	—	—	$	371,019
Natural gas services	—		—		16,145	23,042	—	39,187
Service contracts	—		—		—	—	9,071	9,071
Installations and maintenance	—		—		—	—	5,834	5,834
Renewable energy certificates	—		2,672		—	—	—	2,672
Electricity sales	—		6,553		—	—	—	6,553
Eliminations (2)	(338)		—		—	(673)	(153)	(1,164)
Revenues from contracts with customers	370,681		9,225		16,145	22,369	14,752	433,172
Alternative revenue programs (3)	7,382		—		—	—	—	7,382
Derivative instruments	84,800		100	(4)	128,717	—	—	213,617
Eliminations (2)	—		—		3,742	—	—	3,742
Revenues out of scope	92,182		100		132,459	—	—	224,741
Total operating revenues	$	462,863	9,325		148,604	22,369	14,752	$	657,913
2023
Natural gas utility sales (1)	$	327,198	—		—	—	—	$	327,198
Natural gas services	—		—		16,836	20,887	—	37,723
Service contracts	—		—		—	—	8,739	8,739
Installations and maintenance	—		—		—	—	4,709	4,709
Renewable energy certificates	—		2,085		—	—	—	2,085
Electricity sales	—		6,084		—	—	—	6,084
Eliminations (2)	(338)		—		—	(1,584)	(183)	(2,105)
Revenues from contracts with customers	326,860		8,169		16,836	19,303	13,265	384,433
Alternative revenue programs (3)	27,270		—		—	—	—	27,270
Derivative instruments	46,370		6,237	(4)	179,894	—	—	232,501
Eliminations (2)	—		—		(177)	—	—	(177)
Revenues out of scope	73,640		6,237		179,717	—	—	259,594
Total operating revenues	$	400,500	14,406		196,553	19,303	13,265	$	644,027

(1)Includes building rent related to the Wall headquarters, which is eliminated in consolidation.

(2)Consists of transactions between subsidiaries that are eliminated in consolidation.

(3)Includes CIP revenue.

(4)Includes SREC revenue.

Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the six months ended March 31, 2024 and 2023, are as follows:

(Thousands)	NJNG		CEV		ES	S&T	HSO	Total
2024
Natural gas utility sales (1)	$	628,894	—		—	—	—	$	628,894
Natural gas services	—		—		32,413	46,904	—	79,317
Service contracts	—		—		—	—	18,011	18,011
Installations and maintenance	—		—		—	—	11,728	11,728
Renewable energy certificates	—		5,322		—	—	—	5,322
Electricity sales	—		13,267		—	—	—	13,267
Eliminations (2)	(675)		—		—	(1,348)	(153)	(2,176)
Revenues from contracts with customers	628,219		18,589		32,413	45,556	29,586	754,363
Alternative revenue programs (3)	4,845		—		—	—	—	4,845
Derivative instruments	122,892		26,031	(4)	212,117	—	—	361,040
Eliminations (2)	—		—		4,875	—	—	4,875
Revenues out of scope	127,737		26,031		216,992	—	—	370,760
Total operating revenues	$	755,956	44,620		249,405	45,556	29,586	$	1,125,123
2023
Natural gas utility sales (1)	$	615,365	—		—	—	—	$	615,365
Natural gas services	—		—		44,684	47,725	—	92,409
Service contracts	—		—		—	—	17,400	17,400
Installations and maintenance	—		—		—	—	10,314	10,314
Renewable energy certificates	—		3,287		—	—	—	3,287
Electricity sales	—		13,788		—	—	—	13,788
Eliminations (2)	(675)		—		—	(2,708)	(196)	(3,579)
Revenues from contracts with customers	614,690		17,075		44,684	45,017	27,518	748,984
Alternative revenue programs (3)	23,805		—		—	—	—	23,805
Derivative instruments	119,414		10,123	(4)	473,828	—	—	603,365
Eliminations (2)	—		—		(8,560)	—	—	(8,560)
Revenues out of scope	143,219		10,123		465,268	—	—	618,610
Total operating revenues	$	757,909	27,198		509,952	45,017	27,518	$	1,367,594

(1)Includes building rent related to the Wall headquarters, which is eliminated in consolidation.

(2)Consists of transactions between subsidiaries that are eliminated in consolidation.

(3)Includes CIP revenue.

(4)Includes SREC revenue.

Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the three months ended March 31, 2024 and 2023, are as follows:

(Thousands)	NJNG		CEV	ES	S&T	HSO	Total
2024
Residential	$	287,824	3,229	—	—	14,684	$	305,737
Commercial and industrial	50,362		5,996	16,145	22,369	68	94,940
Firm transportation	30,680		—	—	—	—	30,680
Interruptible, off-tariff and other	1,815		—	—	—	—	1,815
Revenues out of scope	92,182		100	132,459	—	—	224,741
Total operating revenues	$	462,863	9,325	148,604	22,369	14,752	$	657,913
2023
Residential	$	247,623	3,204	—	—	13,089	$	263,916
Commercial and industrial	49,105		4,965	16,836	19,303	176	90,385
Firm transportation	29,368		—	—	—	—	29,368
Interruptible, off-tariff and other	764		—	—	—	—	764
Revenues out of scope	73,640		6,237	179,717	—	—	259,594
Total operating revenues	$	400,500	14,406	196,553	19,303	13,265	$	644,027

Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the six months ended March 31, 2024 and 2023, are as follows:

(Thousands)	NJNG		CEV	ES	S&T	HSO	Total
2024
Residential	$	483,447	6,615	—	—	29,487	$	519,549
Commercial and industrial	86,121		11,974	32,413	45,556	99	176,163
Firm transportation	55,115		—	—	—	—	55,115
Interruptible, off-tariff and other	3,536		—	—	—	—	3,536
Revenues out of scope	127,737		26,031	216,992	—	—	370,760
Total operating revenues	$	755,956	44,620	249,405	45,556	29,586	$	1,125,123
2023
Residential	$	464,561	6,497	—	—	27,269	$	498,327
Commercial and industrial	92,900		10,578	44,684	45,017	249	193,428
Firm transportation	55,567		—	—	—	—	55,567
Interruptible, off-tariff and other	1,662		—	—	—	—	1,662
Revenues out of scope	143,219		10,123	465,268	—	—	618,610
Total operating revenues	$	757,909	27,198	509,952	45,017	27,518	$	1,367,594

Customer Accounts Receivable/Credit Balances and Deposits

The timing of revenue recognition, customer billings and cash collections resulting in accounts receivables, billed and unbilled, and customers’ credit balances and deposits on the Unaudited Condensed Consolidated Balance Sheets during the six months ended March 31, 2024 and 2023, are as follows:

	Customer Accounts Receivable				Customers' Credit
(Thousands)	Billed		Unbilled		Balances and Deposits
Balance as of September 30, 2023	$	97,540	$	19,100	$	44,910
Increase (decrease)	87,529		55,356		(20,032)
Balance as of March 31, 2024	$	185,069	$	74,456	$	24,878
Balance as of September 30, 2022	$	222,297	$	13,769	$	33,246
(Decrease) increase	(27,844)		32,271		(7,725)
Balance as of March 31, 2023	$	194,453	$	46,040	$	25,521

The following table provides information about receivables, which are included within accounts receivable, billed and unbilled, and customers’ credit balances and deposits, respectively, on the Unaudited Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023:

(Thousands)	NJNG		CEV	ES	S&T	HSO	Total
March 31, 2024
Customer accounts receivable
Billed	$	142,088	7,273	25,241	7,749	2,718	$	185,069
Unbilled	69,904		4,552	—	—	—	74,456
Customers' credit balances and deposits	(24,860)		—	—	(18)	—	(24,878)
Total	$	187,132	11,825	25,241	7,731	2,718	$	234,647
September 30, 2023
Customer accounts receivable
Billed	$	55,234	9,962	23,716	6,577	2,051	$	97,540
Unbilled	10,784		8,316	—	—	—	19,100
Customers' credit balances and deposits	(44,898)		—	—	(12)	—	(44,910)
Total	$	21,120	18,278	23,716	6,565	2,051	$	71,730

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REGULATION

6 Months Ended

Mar. 31, 2024

Regulated Operations [Abstract]

REGULATION

4. REGULATION

NJNG is subject to cost-based regulation, therefore, it is permitted to recover authorized operating expenses and earn a reasonable return on its utility capital investments based on the BPU's approval. The impact of the ratemaking process and decisions authorized by the BPU allows NJNG to capitalize or defer certain costs that are expected to be recovered from its customers as regulatory assets and to recognize certain obligations representing amounts that are probable future expenditures as regulatory liabilities in accordance with accounting guidance applicable to regulated operations.

NJNG's recovery of costs is facilitated through its base rates, BGSS and other regulatory tariff riders. NJNG is required to make filings to the BPU for review of its BGSS, CIP and other programs and related rates. Annual rate changes are typically requested to be effective at the beginning of the following fiscal year. The current base rates include a weighted average cost of capital of 6.84% and a return on common equity of 9.6%. All rate and program changes are subject to proper notification and BPU review and approval. In addition, NJNG is permitted to implement certain BGSS rate changes on a provisional basis with proper notification to the BPU.

Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for NJNG are comprised of the following:

(Thousands)	March 31, 2024		September 30, 2023
Regulatory assets-current
New Jersey Clean Energy Program	$	6,827	$	15,804
Conservation Incentive Program	55,200		50,356
Derivatives at fair value, net	30,444		6,017
Other current regulatory assets	1,416		1,410
Total current regulatory assets	$	93,887	$	73,587
Regulatory assets-noncurrent
Environmental remediation costs:
Expended, net of recoveries	$	69,229	$	66,298
Liability for future expenditures	157,813		169,390
Deferred income taxes	42,626		41,667
SAVEGREEN	88,496		83,589
Postemployment and other benefit costs	7,936		55,274
Cost of removal	118,900		112,362
Other noncurrent regulatory assets	44,943		51,019
Total noncurrent regulatory assets	$	529,943	$	579,599
Regulatory liability-current
Overrecovered natural gas costs	$	31,628	$	30,637
Total current regulatory liabilities	$	31,628	$	30,637
Regulatory liabilities-noncurrent
Tax Act impact (1)	$	177,838	$	180,347
Other noncurrent regulatory liabilities	438		111
Total noncurrent regulatory liabilities	$	178,276	$	180,458

(1)Reflects the re-measurement and subsequent amortization of NJNG's net deferred tax liabilities as a result of the change in federal tax rates enacted in the Tax Act. The Tax Act is an Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, previously known as The Tax Cuts and Jobs Act of 2017.

Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for Adelphia are comprised of the following:

(Thousands)	March 31, 2024		September 30, 2023
Total noncurrent regulatory assets	$	5,161	$	5,231
Total current regulatory liabilities	$	1,535	$	1,650

The assets are comprised primarily of the tax benefit associated with the equity component of AFUDC and the liability consists primarily of scheduling penalties. Recovery of regulatory assets is subject to FERC approval.

Regulatory filings and/or actions that occurred during the current fiscal year include the following:

•On November 9, 2023, NJNG filed a letter petition seeking BPU approval to extend NJNG’s current SAVEGREEN program through December 31, 2024, with an additional $76.9M in order to meet customer demand for this program, which was approved by the BPU on April 30, 2024.

•On December 1, 2023, NJNG filed a petition seeking BPU approval of its 2024 SAVEGREEN program, which would support new energy efficiency, demand response and building decarbonization start-up programs from January 1, 2025 through June 30, 2027. The 2024 SAVEGREEN program includes $245.1M of direct investment, $217.2M in financing options and $20.1M in O&M.

•On January 31, 2024, NJNG filed a base rate case with the BPU requesting a natural gas revenue increase of $222.6M including a recovery of infrastructure investments, a change in the Company’s overall rate of return on rate base to 7.57% and a change in the return on common equity to 10.42%.

•On March 20, 2024, the BPU approved NJNG's annual SBC filing of RAC expenditures through June 30, 2023, which included an increase to the RAC annual recoveries of approximately $2.4M and an increase to the NJCEP annual recoveries of approximately $5.5M, effective April 1, 2024.

•On March 28, 2024, NJNG submitted its annual IIP filing to the BPU requesting a rate increase for capital expenditures of $43.5M through June 30, 2024, which will result in a $5.6M revenue increase, with a proposed effective date of October 1, 2024.

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DERIVATIVE INSTRUMENTS

6 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS

5. DERIVATIVE INSTRUMENTS

The Company is subject primarily to commodity price risk due to fluctuations in the market price of natural gas, SRECs and electricity. To manage this risk, the Company enters into a variety of derivative instruments including, but not limited to, futures contracts, physical forward contracts, financial options and swaps to economically hedge the commodity price risk associated with its existing and anticipated commitments to purchase and sell natural gas, SRECs and electricity. In addition, the Company is exposed to foreign currency and interest rate risk and may utilize foreign currency derivatives to hedge Canadian dollar denominated natural gas purchases and/or sales and interest rate derivatives to reduce exposure to fluctuations in interest rates. All of these types of contracts are accounted for as derivatives, unless the Company elects NPNS, which is done on a contract-by-contract election. Accordingly, all of the financial and certain of the Company's physical derivative instruments are recorded at fair value on the Unaudited Condensed Consolidated Balance Sheets. For a more detailed discussion of the Company’s fair value measurement policies and level disclosures associated with the Company’s derivative instruments, see Note 6. Fair Value.

Energy Services

ES chooses not to designate its financial commodity and physical forward commodity derivatives as accounting hedges or to elect NPNS. The changes in the fair value of these derivatives are recorded as a component of natural gas purchases or operating revenues, as appropriate for ES, on the Unaudited Condensed Consolidated Statements of Operations as unrealized gains or losses. For ES at settlement, realized gains and losses on all financial derivative instruments are recognized as a component of natural gas purchases and realized gains and losses on all physical derivatives follow the presentation of the related unrealized gains and losses as a component of either natural gas purchases or operating revenues.

ES also enters into natural gas transactions in Canada and, consequently, is exposed to fluctuations in the value of Canadian currency relative to the U.S. dollar. ES may utilize foreign currency derivatives to lock in the exchange rates associated with natural gas transactions denominated in Canadian currency. The derivatives may include currency forwards, futures, or swaps and are accounted for as derivatives. These derivatives are typically used to hedge demand fee payments on pipeline capacity, storage and natural gas purchase agreements.

As a result of ES entering into transactions to borrow natural gas, commonly referred to as “park and loans,” an embedded derivative is recognized relating to differences between the fair value of the amount borrowed and the fair value of the amount that will ultimately be repaid, based on changes in the forward price for natural gas prices at the borrowed location over the contract term. This embedded derivative is accounted for as a forward sale in the month in which the repayment of the borrowed natural gas is expected to occur, and is considered a derivative transaction that is recorded at fair value on the Unaudited Condensed Consolidated Balance Sheets, with changes in value recognized in current period earnings.

Expected production of SRECs is hedged through the use of forward and futures contracts. All contracts require the Company to physically deliver SRECs through the transfer of certificates as per contractual settlement schedules. ES recognizes changes in the fair value of these derivatives as a component of operating revenues. Upon settlement of the contract, the related revenue is recognized when the SREC is transferred to the counterparty.

Natural Gas Distribution

Changes in fair value of NJNG's financial commodity derivatives are recorded as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets. The Company elects NPNS accounting treatment on all physical commodity contracts that NJNG entered into on or before December 31, 2015, and accounts for these contracts on an accrual basis. Accordingly, physical natural gas purchases are recognized in regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets when the contract settles and the natural gas is delivered. The average cost of natural gas is charged to expense in the current period earnings based on the BGSS factor times the therm sales. NJNG no longer elects NPNS accounting treatment on a portfolio basis. However, since NPNS is a contract-by-contract election, where it makes sense to do so, NJNG can and may elect to treat certain contracts as normal. Because NJNG recovers these amounts through future BGSS rates as increases or decreases to the cost of natural gas in NJNG’s tariff for natural gas service, the changes in fair value of these contracts are deferred as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets.

Clean Energy Ventures

The Company elects NPNS accounting treatment on PPA contracts executed by CEV that meet the definition of a derivative and accounts for the contract on an accrual basis. Accordingly, electricity sales are recognized in revenues throughout the term of the PPA as electricity is delivered. NPNS is a contract-by-contract election and where it makes sense to do so, the Company can and may elect to treat certain contracts as normal.

Fair Value of Derivatives

The following table presents the fair value of the Company's derivative assets and liabilities recognized on the Unaudited Condensed Consolidated Balance Sheets as of:

			Derivatives at Fair Value
			March 31, 2024						September 30, 2023
(Thousands)	Balance Sheet Location	Assets			Liabilities			Assets			Liabilities
Derivatives not designated as hedging instruments:
NJNG:
Physical commodity contracts	Derivatives - current		$	49		$	6		$	43		$	488
Financial commodity contracts	Derivatives - current		1,229			35			6,110			20
ES:
Physical commodity contracts	Derivatives - current		1,384			6,656			6,209			12,757
	Derivatives - noncurrent		678			13,014			802			7,870
Financial commodity contracts	Derivatives - current		11,394			4,028			18,393			2,880
	Derivatives - noncurrent		232			777			762			97
Total fair value of derivatives			$	14,966		$	24,516		$	32,319		$	24,112

Offsetting of Derivatives

The Company transacts under master netting arrangements or equivalent agreements that allow it to offset derivative assets and liabilities with the same counterparty. However, the Company’s policy is to present its derivative assets and liabilities on a gross basis at the contract level unit of account on the Unaudited Condensed Consolidated Balance Sheets.

The following table summarizes the reported gross amounts, the amounts that the Company has the right to offset but elects not to, financial collateral and the net amounts the Company could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to.

	Asset Derivatives						Liability Derivatives
(Thousands)	Fair Value (1)		Amounts Offset (2)	Collateral Received/Pledged (3)	Net Value (4)		Fair Value (1)		Amounts Offset (2)	Collateral Received/Pledged (3)	Net Value (4)
As of March 31, 2024
ES Contracts
Physical commodity	$	2,062	(539)	—	$	1,523	$	19,670	(539)	(9,865)	$	9,266
Financial commodity	11,626		(4,805)	(6,206)	615		4,805		(4,805)	—	—
Total ES	$	13,688	(5,344)	(6,206)	$	2,138	$	24,475	(5,344)	(9,865)	$	9,266
NJNG Contracts
Physical commodity	$	49	(4)	—	$	45	$	6	(4)	—	$	2
Financial commodity	1,229		(35)	—	1,194		35		(35)	—	—
Total NJNG	$	1,278	(39)	—	$	1,239	$	41	(39)	—	$	2
As of September 30, 2023
ES Contracts
Physical commodity	$	7,011	(1,236)	—	$	5,775	$	20,627	(1,236)	(9,728)	$	9,663
Financial commodity	19,155		(2,977)	(16,178)	—		2,977		(2,977)	—	—
Total ES	$	26,166	(4,213)	(16,178)	$	5,775	$	23,604	(4,213)	(9,728)	$	9,663
NJNG Contracts
Physical commodity	$	43	(3)	—	$	40	$	488	(3)	—	$	485
Financial commodity	6,110		(20)	—	6,090		20		(20)	—	—
Total NJNG	$	6,153	(23)	—	$	6,130	$	508	(23)	—	$	485

(1)Derivative assets and liabilities are presented on a gross basis on the condensed consolidated balance sheets as the Company does not elect balance sheet offsetting under ASC 210-20.

(2)Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting.

(3)Financial collateral includes cash balances at FCMs as well as cash received from or pledged to other counterparties.

(4)Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.

ES utilizes financial derivatives to economically hedge the gross margin associated with the purchase of physical natural gas to be used for storage injection and its subsequent sale at a later date. The gains or (losses) on the financial transactions that are economic hedges of the cost of the purchased natural gas are recognized prior to the gains or (losses) on the physical transaction, which are recognized in earnings when the natural gas is delivered. Therefore, mismatches between the timing of the recognition of realized gains or (losses) on the financial derivative instruments and gains or (losses) associated with the actual sale of the natural gas that is being economically hedged along with fair value changes in derivative instruments, creates volatility in the results of ES, although the Company's intended economic results relating to the entire transaction are unaffected.

The following table presents the effect of derivative instruments recognized on the Unaudited Condensed Consolidated Statements of Operations for the periods set forth below:

(Thousands)	Location of gain (loss) recognized in income on derivatives	Amount of gain (loss) recognized in income on derivatives
		Three Months Ended				Six Months Ended
		March 31,				March 31,
Derivatives not designated as hedging instruments:		2024		2023		2024		2023
ES:
Physical commodity contracts	Operating revenues	$	(3,651)	$	7,208	$	10,379	$	17,246
Physical commodity contracts	Natural gas purchases	(1,424)		(124)		(2,010)		(794)
Financial commodity contracts	Natural gas purchases	(2,459)		29,863		15,623		71,474
Total unrealized and realized (loss) gain		$	(7,534)	$	36,947	$	23,992	$	87,926

NJNG’s derivative contracts are part of the Company's risk management activities that relate to its natural gas purchases and BGSS incentive programs. At settlement, the resulting gains and/or losses are payable to or recoverable from utility customers and are deferred in regulatory assets or liabilities resulting in no impact to earnings. The following table reflects the gains (losses) associated with NJNG's derivative instruments for the periods set forth below:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands)	2024		2023		2024		2023
NJNG:
Physical commodity contracts	$	(3,920)	$	(203)	$	(4,990)	$	(28,234)
Financial commodity contracts	(3,142)		(38,294)		1,190		(69,957)
Total unrealized and realized loss	$	(7,062)	$	(38,497)	$	(3,800)	$	(98,191)

During fiscal 2020, NJR entered into treasury lock transactions to fix the benchmark treasury rate associated with debt issuances that were finalized in 2020. NJR designates its treasury lock contracts as cash flow hedges; therefore, changes in fair value of the effective portion of the hedges are recorded in OCI and upon settlement of the contracts, realized gains and (losses) are reclassified from OCI to interest expense on the Consolidated Statements of Operations ratable over the term of the associated debt. Pre-tax losses of $0.3M were reclassified during both the three months ended March 31, 2024 and 2023, and pre-tax losses of $0.7M were reclassified during both the six months ended March 31, 2024 and 2023.

NJNG and ES had the following outstanding long (short) derivatives as of:

	Natural Gas Distribution		Energy Services
Volumes (Bcf)	Futures	Physical Commodity	Futures	Physical Commodity
March 31, 2024	23.8	5.0	(3.8)	(3.2)
September 30, 2023	32.1	12.1	(6.9)	0.2

Not included in the above table are 1.4M and 1.3M SRECs that were open as of March 31, 2024 and September 30, 2023, respectively, and the notional amount of foreign currency transactions for the periods were immaterial.

Broker Margin

Futures exchanges have contract specific margin requirements that require the posting of cash or cash equivalents relating to traded contracts. Margin requirements consist of initial margin that is posted upon the initiation of a position, maintenance margin that is usually expressed as a percent of initial margin, and variation margin that fluctuates based on the daily marked-to-market relative to maintenance margin requirements.

The Company maintains separate broker margin accounts for NJNG and ES. The balances by reporting segment are as follows:

(Thousands)	Balance Sheet Location	March 31, 2024		September 30, 2023
NJNG	Restricted broker margin accounts-current assets	$	4,969	$	5,915
ES	Restricted broker margin accounts-current assets	$	14,341	$	14,881
	Restricted broker margin accounts-current liabilities	$	4,689	$	8,029

Wholesale Credit Risk

NJNG, ES, CEV and S&T are exposed to credit risk as a result of their sales/wholesale marketing activities. As a result of the inherent volatility in the prices of natural gas commodities, derivatives and SRECs, the market value of contractual positions with individual counterparties could exceed established credit limits or collateral provided by those counterparties. If a counterparty fails to perform the obligations under its contract then the Company could sustain a loss.

The Company monitors and manages the credit risk of its wholesale operations through credit policies and procedures that management believes reduce overall credit risk. These policies include a review and evaluation of current and prospective counterparties' financial statements and/or credit ratings, daily monitoring of counterparties' credit limits and exposure, daily communication with traders regarding credit status and the use of credit mitigation measures, such as collateral requirements

and netting agreements. Examples of collateral include letters of credit and cash received for either prepayment or margin deposit. Collateral may be requested due to the Company's election not to extend credit or because exposure exceeds defined thresholds. Most of the Company's wholesale marketing contracts contain standard netting provisions. These contracts include those governed by ISDA and the NAESB. The netting provisions refer to payment netting, whereby receivables and payables with the same counterparty are offset and the resulting net amount is paid to the party to which it is due.

Internally-rated exposure applies to counterparties that are not rated by Fitch or Moody's. In these cases, the counterparty's or guarantor's financial statements are reviewed, and similar methodologies and ratios used by Fitch and/or Moody's are applied to arrive at a substitute rating. Gross credit exposure is defined as the unrealized fair value of physical and financial derivative commodity contracts, plus any outstanding wholesale receivable for the value of natural gas delivered and/or financial derivative commodity contract that has settled for which payment has not yet been received.

The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of March 31, 2024. The amounts presented below have not been reduced by any collateral received or netting and exclude accounts receivable for NJNG retail natural gas sales and services and CEV residential solar installations.

(Thousands)	Gross Credit Exposure
Investment grade		$	113,150
Noninvestment grade		9,134
Internally rated investment grade		19,988
Internally rated noninvestment grade		22,477
Total		$	164,749

Conversely, certain of NJNG's and ES' derivative instruments are linked to agreements containing provisions that would require cash collateral payments from the Company if certain events occur. These provisions vary based upon the terms in individual counterparty agreements and can result in cash payments if NJNG's credit rating were to fall below its current level. Specifically, most, but not all, of these additional payments will be triggered if NJNG's debt is downgraded by the major credit agencies, regardless of investment grade status. In addition, some of these agreements include threshold amounts that would result in additional collateral payments if the values of derivative liabilities were to exceed the maximum values provided for in relevant counterparty agreements. Other provisions include payment features that are not specifically linked to ratings but are based on certain financial metrics.

Collateral amounts associated with any of these conditions are determined based on a sliding scale and are contingent upon the degree to which the Company's credit rating and/or financial metrics deteriorate, and the extent to which liability amounts exceed applicable threshold limits. There was approximately $1.4M and $0.1M of derivative instruments with credit-risk-related contingent features that were in a liability position for which collateral is required as of March 31, 2024 and September 30, 2023, respectively. These amounts differ from the respective net derivative liabilities reflected on the Unaudited Condensed Consolidated Balance Sheets because the agreements also include clauses, commonly known as “Rights of Offset,” that would permit the Company to offset its derivative assets against its derivative liabilities for determining additional collateral to be posted, as previously discussed.

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FAIR VALUE

6 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE

6. FAIR VALUE

Fair Value of Assets and Liabilities

The fair value of cash and cash equivalents, accounts receivable, current loan receivables, accounts payable, commercial paper and borrowings under revolving credit facilities are estimated to equal their carrying amounts due to the short maturity of those instruments. Non-current loans receivable are recorded based on what the Company expects to receive, which approximates fair value, in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets. The Company regularly evaluates the credit quality and collection profile of its customers to approximate fair value.

The estimated fair value of long-term debt, including current maturities, excluding natural gas meter finance arrangements, debt issuance costs and solar asset financing obligations, is as follows:

(Thousands)	March 31, 2024		September 30, 2023
Carrying value (1) (2)	$	2,567,845	$	2,587,845
Fair market value	$	2,218,977	$	2,106,536

(1)Excludes NJNG's debt issuance costs of $10.0M and $9.8M as of March 31, 2024 and September 30, 2023, respectively.

(2)Excludes NJR's debt issuance costs of $3.3M and $3.7M as of March 31, 2024 and September 30, 2023, respectively.

The Company enters into sale leaseback transactions for certain commercial solar assets and natural gas meters. These transactions are recorded within long-term debt on the Unaudited Condensed Consolidated Balance Sheets. The carrying value of solar sale leasebacks was $284.2M and $278.4M and the estimated fair value was $282.1M and $268.1M as of March 31, 2024 and September 30, 2023, respectively. The carrying value of the natural gas meter sale leasebacks was $36.0M and $31.4M and the estimated fair value of certain natural gas meter sale leasebacks amounted to $28.3M and $20.9M as of March 31, 2024 and September 30, 2023, respectively.

The Company utilizes a discounted cash flow method to determine the fair value of its debt. Inputs include observable municipal and corporate yields, as appropriate for the maturity of the specific issue and the Company's credit rating. As of March 31, 2024, the Company discloses its debt within Level 2 of the fair value hierarchy.

Fair Value Hierarchy

The Company applies fair value measurement guidance to its financial assets and liabilities, as appropriate, which include financial derivatives and physical commodity contracts qualifying as derivatives, investments in equity securities and other financial assets and liabilities. In addition, authoritative accounting literature prescribes the use of a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on the source of the data used to develop the price inputs. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to inputs that are based on unobservable market data and includes the following:

Fair Value Hierarchy	Description of Fair Value Level	Fair Value Technique
Level 1	Unadjusted quoted prices for identical assets or liabilities in active markets	The Company’s Level 1 assets and liabilities include exchange-traded natural gas futures and options contracts, listed equities and money market funds. Exchange-traded futures and options contracts include all energy contracts traded on the NYMEX, CME and ICE that the Company refers to internally as basis swaps, fixed swaps, futures and financial options that are cleared through an FCM.
Level 2	Other significant observable inputs, such as interest rates or price data, including both commodity and basis pricing that is observed either directly or indirectly from publications or pricing services	The Company’s Level 2 assets and liabilities include over-the-counter physical forward commodity contracts and swap contracts, SREC forward sales or derivatives that are initially valued using observable quotes and are subsequently adjusted to include time value, credit risk or estimated transport pricing components for which no basis price is available. Level 2 financial derivatives consist of transactions with non-FCM counterparties (basis swaps, fixed swaps and/or options). Inputs are verifiable and do not require significant management judgment. For some physical commodity contracts, the Company utilizes transportation tariff rates that are publicly available and that it considers to be observable inputs that are equivalent to market data received from an independent source. There are no significant judgments or adjustments applied to the transportation tariff inputs and no market perspective is required. Even if the transportation tariff input were considered to be a “model,” it would still be considered to be a Level 2 input as the data is: •widely accepted and public; •non-proprietary and sourced from an independent third party; and •observable and published. These additional adjustments are generally not considered to be significant to the ultimate recognized values.
Level 3	Inputs derived from a significant amount of unobservable market data	These include the Company’s best estimate of fair value and are derived primarily through the use of internal valuation methodologies.

Assets and liabilities measured at fair value on a recurring basis are summarized as follows:

	Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
(Thousands)	(Level 1)			(Level 2)			(Level 3)			Total
As of March 31, 2024
Assets:
Physical commodity contracts		$	—		$	2,111		$	—	$	2,111
Financial commodity contracts		12,855			—			—		12,855
Money market funds		56			—			—		56
Other		2,954			—			—		2,954
Total assets at fair value		$	15,865		$	2,111		$	—	$	17,976
Liabilities:
Physical commodity contracts		$	—		$	19,676		$	—	$	19,676
Financial commodity contracts		4,840			—			—		4,840
Total liabilities at fair value		$	4,840		$	19,676		$	—	$	24,516

	Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
(Thousands)	(Level 1)			(Level 2)			(Level 3)			Total
As of September 30, 2023
Assets:
Physical commodity contracts		$	—		$	7,054		$	—	$	7,054
Financial commodity contracts		25,265			—			—		25,265
Money market funds		145			—			—		145
Other		2,641			—			—		2,641
Total assets at fair value		$	28,051		$	7,054		$	—	$	35,105
Liabilities:
Physical commodity contracts		$	—		$	21,115		$	—	$	21,115
Financial commodity contracts		2,997			—			—		2,997
Total liabilities at fair value		$	2,997		$	21,115		$	—	$	24,112

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INVESTMENTS IN EQUITY INVESTEES

6 Months Ended

Mar. 31, 2024

Investments, All Other Investments [Abstract]

INVESTMENTS IN EQUITY INVESTEES

7. INVESTMENTS IN EQUITY INVESTEES

The Company holds a 50% equity method investment in Steckman Ridge, a jointly owned and controlled natural gas storage facility located in Bedford County, Pennsylvania. The Company's investment in Steckman Ridge was $101.8M and $104.1M as of March 31, 2024 and September 30, 2023, respectively, which include loans with a total outstanding principal balance of $70.4M for both periods. On October 1, 2023, the Company entered into an Amended and Restated Loan Agreement with Steckman Ridge, which extends the existing loan agreement and moved from London Interbank Offered Rate to Secured Overnight Financing Rate. The loans accrue interest at a variable rate that resets quarterly and are due October 1, 2027.

NJNG and ES have entered into storage and park and loan agreements with Steckman Ridge. See Note 15. Related Party Transactions for more information on these intercompany transactions.

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EARNINGS PER SHARE

6 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

EARNINGS PER SHARE

8. EARNINGS PER SHARE

The following table presents the calculation of the Company's basic and diluted earnings per share for:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands, except per share amounts)	2024		2023		2024		2023
Net income, as reported	$	120,812	$	110,247	$	210,223	$	226,168
Basic earnings per share
Weighted average shares of common stock outstanding-basic	98,377		96,893		98,123		96,689
Basic earnings per common share	$1.23		$1.14		$2.14		$2.34
Diluted earnings per share
Weighted average shares of common stock outstanding-basic	98,377		96,893		98,123		96,689
Incremental shares (1)	725		663		716		657
Weighted average shares of common stock outstanding-diluted	99,102		97,556		98,839		97,346
Diluted earnings per common share	$1.22		$1.13		$2.13		$2.32

(1)Incremental shares consist primarily of unvested stock awards and performance units, which are calculated using the treasury stock method.

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DEBT

6 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

DEBT

9. DEBT

NJR and NJNG finance working capital requirements and capital expenditures through various short-term debt and long-term financing arrangements, including a commercial paper program and committed unsecured credit facilities.

Credit Facilities and Short-term Debt

A summary of NJR's credit facility and NJNG's commercial paper program and credit facility are as follows:

				At end of period
(Thousands)	As of date	Total borrowing capacity		Loans outstanding		Weighted average interest rate			Remaining borrowing capacity				Expiration dates
NJR bank revolving credit facilities (1)
March 31, 2024		$	650,000	$	146,150		6.52	%		$	494,519	(2)	September 2027
September 30, 2023		$	650,000	$	217,300		6.53	%		$	426,967	(2)	September 2027
NJNG bank revolving credit facilities (3)
March 31, 2024		$	250,000	$	50,000		5.48	%		$	199,269	(4)	September 2027
September 30, 2023		$	250,000	$	34,800		5.48	%		$	214,469	(4)	September 2027

(1)Committed credit facilities, which require commitment fees of 0.10% on the unused amounts.

(2)Letters of credit outstanding total $9.3M at March 31, 2024 and $5.7M at September 30, 2023, which reduces the amount available by the same amount.

(3)Committed credit facilities, which require commitment fees of 0.075% on the unused amounts.

(4)Letters of credit outstanding total $0.7M at both March 31, 2024 and September 30, 2023, which reduces the amount available by the same amount.

Amounts available under credit facilities are reduced by bank or commercial paper borrowings, as applicable, and any outstanding letters of credit. Neither NJNG nor the results of its operations are obligated or pledged to support the NJR Credit Facility or term loan.

Long-term Debt

NJNG

In September 2023, NJNG entered into a Note Purchase Agreement for $100M aggregate principal amount of its senior notes consisting of $50M of 5.56% senior notes due September 28, 2033, which closed on September 28, 2023, and $50M of 5.85% senior notes due October 30, 2053, which closed on October 30, 2023.

NJNG received $8.8M and $8.4M during the six months ended March 31, 2024 and 2023, respectively, in connection with the sale leaseback of its natural gas meters. NJNG records the sale leaseback as a financing obligation for accounting purposes and has the option to purchase the meters back at fair value upon expiration of the lease.

Clean Energy Ventures

CEV received proceeds of $24.4M and $61.8M during the six months ended March 31, 2024 and 2023, respectively, in connection with the sale leaseback of commercial solar assets. CEV records the sale leaseback as a financing obligation for accounting purposes and continues to operate the solar assets, including related expenses, retains the revenue generated from SRECs, TRECs and energy sales, and has the option to renew the lease or repurchase the assets sold at the end of the lease term.

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EMPLOYEE BENEFIT PLANS

6 Months Ended

Mar. 31, 2024

Retirement Benefits [Abstract]

EMPLOYEE BENEFIT PLANS

10. EMPLOYEE BENEFIT PLANS

Pension and Other Postemployment Benefit Plans

In January 2024, the Company announced changes to its postretirement medical benefits plan. Beginning on January 1, 2025, the Company will replace the existing retiree medical coverage for certain eligible employees age 65 and older and their Medicare-eligible dependents with an employer funded Health Reimbursement Arrangement. Medicare-eligible participants may use the Health Reimbursement Arrangement towards the purchase of supplemental insurance coverage and for other qualified medical expenses. The liability associated with postretirement medical benefits was remeasured as of January 1, 2024, and the expense for the remainder of fiscal 2024 will be recorded using updated assumptions and actuarial calculations. The plan amendment will be amortized over approximately 8 years, which is the average remaining service to retirement for all plan participants.

The following summarizes the changes in the funded status of the plan and the related liabilities recognized on the Consolidated Balance Sheets:

	OPEB
(Thousands)	January 1, 2024		September 30, 2023
Change in Benefit Obligation
Benefit obligation at beginning of period	$	203,406	$	173,217
Service cost	642		2,471
Interest cost	2,902		9,146
Plan amendments	(81,283)		—
Plan participants’ contributions (1)	—		552
Actuarial loss	26,871		25,363
Benefits paid, net of retiree subsidies received	(1,614)		(7,343)
Benefit obligation at end of period	$	150,924	$	203,406
Change in plan assets
Fair value of plan assets at beginning of period	$	106,783	$	99,736
Actual return on plan assets	8,995		9,826
Employer contributions	3,181		4,192
Benefits paid, net of plan participants’ contributions (1)	(1,612)		(6,971)
Fair value of plan assets at end of period	$	117,347	$	106,783
Funded status	$	(33,577)	$	(96,623)
Amounts recognized on Consolidated Balance Sheets
Postemployment employee (liability)
Current	$	(1,613)	$	(4,201)
Noncurrent	(31,964)		(92,422)
Total	$	(33,577)	$	(96,623)

(1)Employees hired prior to July 1, 1998, were eligible to elect an additional participant contribution to enhance their benefits. Contributions made during the periods were immaterial.

The following table summarizes the amounts recognized in regulatory assets and accumulated other comprehensive income (loss):

	Regulatory Assets		Accumulated Other Comprehensive Income (Loss)
(Thousands)	OPEB
Balance at September 30, 2023	$	30,046	$	5,498
Amounts arising during the period:
Net actuarial loss	12,706		7,027
Prior service cost	(61,244)		(20,039)
Amounts amortized to net periodic costs:
Net actuarial loss	(355)		(141)
Balance at January 1, 2024	$	(18,847)	$	(7,655)

The amounts in regulatory assets and accumulated other comprehensive income (loss) not yet recognized as components of net periodic benefit cost were as follows:

	Regulatory Assets				Accumulated Other Comprehensive Income (Loss)
	OPEB
(Thousands)	January 1, 2024		September 30, 2023		January 1, 2024		September 30, 2023
Net actuarial loss	$	42,397	$	30,046	$	12,384	$	5,498
Prior service cost	(61,244)		—		(20,039)		—
Total	$	(18,847)	$	30,046	$	(7,655)	$	5,498

The components of the net periodic cost for pension benefits, including the Company's Pension Equalization Plan, and OPEB costs (principally health care and life insurance) for employees and covered dependents were as follows:

	Pension								OPEB
	Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
	March 31,				March 31,				March 31,				March 31,
(Thousands)	2024		2023		2024		2023		2024		2023		2024		2023
Service cost	$	1,244	$	1,351	$	2,488	$	2,701	$	255	$	618	$	897	$	1,236
Interest cost	4,060		3,793		8,120		7,587		1,808		2,287		4,710		4,573
Expected return on plan assets	(5,086)		(4,993)		(10,173)		(9,986)		(2,020)		(1,681)		(3,878)		(3,361)
Recognized actuarial loss	30		75		59		150		1,255		—		1,751		—
Prior service cost (credit) amortization	15		26		31		51		(3,337)		—		(3,337)		—
Net periodic benefit cost	$	263	$	252	$	525	$	503	$	(2,039)	$	1,224	$	143	$	2,448

The Company does not expect to make additional contributions to fund the pension plans during fiscal 2024 based on current actuarial assumptions; however, funding requirements are uncertain and can depend significantly on changes in actuarial assumptions, returns on plan assets and changes in the demographics of eligible employees and covered dependents. In addition, as in the past, the Company may elect to make contributions in excess of the minimum required amount to the plans. There were no discretionary contributions made during the six months ended March 31, 2024 and 2023.

Assumptions

The weighted average assumptions used to determine the Company’s obligations are as follows:

	OPEB
	January 1, 2024		September 30, 2023
Obligations:
Discount rate	5.02%/5.01%	(1)	5.97%/5.94%	(1)
Compensation increase	3.00%/3.50%	(1)	3.00%/3.50%	(1)

(1)Percentages for represented and non-represented plans, respectively.

When measuring its projected benefit obligations, the Company uses an aggregate discount rate at which its obligation could be effectively settled. The Company determines a single weighted average discount rate based on a yield curve comprised of rates of return on a population of high quality debt issuances (AA- or better) whose cash flows (via coupons or maturities) match the timing and amount of its expected future benefit payments. The Company measures its service and interest costs using a disaggregated, or spot rate, approach. The Company applies the duration-specific spot rates from the full yield curve, as of the measurement date, to each year’s future benefit payments, which aligns the timing of the plans’ separate future cash flows to the corresponding spot rates on the yield curve.

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INCOME TAXES

6 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

11. INCOME TAXES

ASC Topic 740, Income Taxes requires the use of an estimated annual effective tax rate for purposes of determining the income tax provision during interim reporting periods. In calculating its estimated annual effective tax rate, the Company considers forecasted annual pre-tax income and estimated permanent book versus tax differences. Adjustments to the effective tax rate and management's estimates will occur as information and assumptions change.

Changes in tax laws or tax rates are recognized in the financial reporting period that includes the enactment date, the date in which the act is signed into law.

NJR evaluates its tax positions to determine the appropriate accounting and recognition of potential future obligations associated with uncertain tax positions. A tax benefit claimed, or expected to be claimed, on a tax return may be recognized only if it is more likely than not that the position will be upheld upon examination by the applicable taxing authority. Interest and penalties related to unrecognized tax benefits, if any, are recognized within income tax expense, and accrued interest and penalties are recognized within other noncurrent liabilities on the Unaudited Condensed Consolidated Balance Sheets.

Effective Tax Rate

The estimated annual effective tax rates were 21.7% and 22.1%, for the six months ended March 31, 2024 and 2023, respectively.

To the extent there are discrete tax items that are not included in the estimated annual effective tax rate, the actual reported effective tax rate may differ from the estimated annual effective tax rate. During the six months ended March 31, 2024 and 2023, discrete items totaled approximately $(1.2)M and $(0.6)M, respectively, related primarily to excess tax benefits associated with the vesting of share-based awards. NJR’s actual reported effective tax rates were 21.3% and 21.9% during the six months ended March 31, 2024 and 2023, respectively.

Other Tax Items

As of March 31, 2024 and September 30, 2023, the Company has tax credit carryforwards of approximately $179.5M and $191.2M, respectively, which each have a life of 20 years. The Company expects to utilize this entire carryforward prior to expiration, which would begin in fiscal 2037.

As of March 31, 2024 and September 30, 2023, the Company has state income tax net operating losses of approximately $609.1M and $631.2M, respectively. These state net operating losses have carry-forward periods dictated by the state in which they were incurred and range from seven to 20 years, with the majority expiring after 2036. The Company expects to utilize this entire carryforward prior to expiration, except for state income tax attributes for which the Company had a valuation allowance of approximately $0.7M as of both March 31, 2024 and September 30, 2023, for which the Company could not conclude were realizable on a more-likely-than-not basis.

In March 2024, the State of New Jersey commenced an examination of the Company's Corporate Business Tax return for NJR and certain subsidiaries for the fiscal periods ending September 30, 2019 through September 30, 2022.

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LEASES

6 Months Ended

Mar. 31, 2024

Leases [Abstract]

LEASES

12. LEASES

Lessee Accounting

The Company determines if an arrangement is a lease at inception based on whether the Company has the right to control the use of an identified asset, the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset. After the criteria are satisfied, the Company accounts for these arrangements as leases in accordance with ASC 842, Leases. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Most leases in which the Company is the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. The Company uses the implicit rate for agreements in which it is a lessor. The Company has not entered into any material agreements in which it is a lessor. Lease expense and lease income are recognized on a straight-line basis over the lease term for operating leases.

The Company’s lease agreements primarily consist of commercial solar land leases, storage and capacity leases, equipment and real property, including land and office facilities, office equipment and the sale leaseback of certain natural gas meters.

Certain leases contain escalation provisions for inflation metrics. The storage leases contain a variable payment component that relates to the change in the inflation metrics that are not known past the current payment period. The variable components of these lease payments are excluded from the lease payments that are used to determine the related right-of-use lease asset and liability. The variable portion of these leases are recognized as leasing expenses when they are incurred. The capacity lease payments are fully variable and based on the amount of natural gas stored in the storage caverns.

Generally, the Company’s solar land lease terms are between 20 and 50 years and may include multiple options to extend the terms for an additional five to 20 years. The Company’s office leases vary in duration, ranging from two to 11 years and may or may not include extension or early purchase options. The Company’s meter lease terms are between six and 10 years with purchase options available prior to the end of the term. Equipment leases include general office equipment that also vary in duration, with an average term of nine years. The Company's storage and capacity leases have assumed terms of 50 years to coincide with the expected useful lives of the cavern assets with which the leases are associated. The Company's lease terms may include options to extend, purchase the leased asset or terminate a lease and they are included in the lease liability calculation when it is reasonably certain that those options will be exercised. The Company has elected an accounting policy that exempts leases with an original term of one year or less from the recognition requirements of ASC 842, Leases.

The Company has lease agreements with lease and non-lease components and has elected the practical expedient to combine lease and non-lease components for certain classes of leases, such as office buildings, solar land leases and office equipment. Variable payments are not considered material to the Company. The Company’s lease agreements do not contain any material residual value guarantees, material restrictions or material covenants. In July 2021, NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, the effects of which are eliminated in consolidation.

The following table presents the Company's lease costs included in the Unaudited Condensed Consolidated Statements of Operations:

		Three Months Ended				Six Months Ended
		March 31,				March 31,
(Thousands)	Income Statement Location	2024		2023		2024		2023
Operating lease cost (1)	Operation and maintenance	$	2,524	$	2,307	$	5,064	$	4,724
Finance lease cost
Amortization of right-of-use assets	Depreciation and amortization	552		540		1,080		1,025
Interest on lease liabilities	Interest expense, net of capitalized interest	236		298		488		533
Total finance lease cost		788		838		1,568		1,558
Variable lease cost	Operation and maintenance	246		272		446		495
Total lease cost		$	3,558	$	3,417	$	7,078	$	6,777

(1)Net of capitalized costs.

The following table presents supplemental cash flow information related to leases:

	Six Months Ended
	March 31,
(Thousands)	2024		2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	4,199	$	3,652
Operating cash flows for finance leases	$	488	$	533
Financing cash flows for finance leases	$	3,875	$	3,577

Assets obtained or modified through operating lease liabilities totaled approximately $2.6M and $0.3M during the three months ended March 31, 2024 and 2023, respectively, and totaled approximately $4.1M and $0.4M during the six months ended March 31, 2024 and 2023, respectively.

Assets obtained or modified through other leases, including those which are finance leases and financing transactions for accounting purposes, totaled $8.4M during the six months ended March 31, 2023. There were no assets obtained or modified through finance leases during the three and six months ended March 31, 2024, and the three months ended March 31, 2023.

The following table presents the balance and classifications of the Company's right of use assets and lease liabilities included in the Unaudited Condensed Consolidated Balance Sheets:

(Thousands)	Balance Sheet Location	March 31, 2024		September 30, 2023
Assets
Noncurrent
Operating lease assets	Operating lease assets	$	177,176	$	175,740
Finance lease assets	Utility plant	27,168		28,248
Total lease assets		$	204,344	$	203,988
Liabilities
Current
Operating lease liabilities	Operating lease liabilities	$	4,780	$	4,772
Finance lease liabilities	Current maturities of long-term debt	8,816		8,477
Noncurrent
Operating lease liabilities	Operating lease liabilities	150,971		148,023
Finance lease liabilities	Long-term debt	18,661		22,875
Total lease liabilities		$	183,228	$	184,147

For operating lease assets and liabilities, the weighted average remaining lease term was 28.6 years and 29.2 years for and the weighted average discount rate used in the valuation over the remaining lease term was 3.6% and 3.5% for March 31, 2024 and September 30, 2023, respectively. For finance lease assets and liabilities, the weighted average remaining lease term was 3.4 years and 3.3 years and the weighted average discount rate used in the valuation over the remaining lease term was 3.3% and 2.7% as of March 31, 2024 and September 30, 2023, respectively.

LEASES

12. LEASES

Lessee Accounting

The Company determines if an arrangement is a lease at inception based on whether the Company has the right to control the use of an identified asset, the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset. After the criteria are satisfied, the Company accounts for these arrangements as leases in accordance with ASC 842, Leases. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Most leases in which the Company is the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. The Company uses the implicit rate for agreements in which it is a lessor. The Company has not entered into any material agreements in which it is a lessor. Lease expense and lease income are recognized on a straight-line basis over the lease term for operating leases.

The Company’s lease agreements primarily consist of commercial solar land leases, storage and capacity leases, equipment and real property, including land and office facilities, office equipment and the sale leaseback of certain natural gas meters.

Certain leases contain escalation provisions for inflation metrics. The storage leases contain a variable payment component that relates to the change in the inflation metrics that are not known past the current payment period. The variable components of these lease payments are excluded from the lease payments that are used to determine the related right-of-use lease asset and liability. The variable portion of these leases are recognized as leasing expenses when they are incurred. The capacity lease payments are fully variable and based on the amount of natural gas stored in the storage caverns.

Generally, the Company’s solar land lease terms are between 20 and 50 years and may include multiple options to extend the terms for an additional five to 20 years. The Company’s office leases vary in duration, ranging from two to 11 years and may or may not include extension or early purchase options. The Company’s meter lease terms are between six and 10 years with purchase options available prior to the end of the term. Equipment leases include general office equipment that also vary in duration, with an average term of nine years. The Company's storage and capacity leases have assumed terms of 50 years to coincide with the expected useful lives of the cavern assets with which the leases are associated. The Company's lease terms may include options to extend, purchase the leased asset or terminate a lease and they are included in the lease liability calculation when it is reasonably certain that those options will be exercised. The Company has elected an accounting policy that exempts leases with an original term of one year or less from the recognition requirements of ASC 842, Leases.

The Company has lease agreements with lease and non-lease components and has elected the practical expedient to combine lease and non-lease components for certain classes of leases, such as office buildings, solar land leases and office equipment. Variable payments are not considered material to the Company. The Company’s lease agreements do not contain any material residual value guarantees, material restrictions or material covenants. In July 2021, NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, the effects of which are eliminated in consolidation.

The following table presents the Company's lease costs included in the Unaudited Condensed Consolidated Statements of Operations:

		Three Months Ended				Six Months Ended
		March 31,				March 31,
(Thousands)	Income Statement Location	2024		2023		2024		2023
Operating lease cost (1)	Operation and maintenance	$	2,524	$	2,307	$	5,064	$	4,724
Finance lease cost
Amortization of right-of-use assets	Depreciation and amortization	552		540		1,080		1,025
Interest on lease liabilities	Interest expense, net of capitalized interest	236		298		488		533
Total finance lease cost		788		838		1,568		1,558
Variable lease cost	Operation and maintenance	246		272		446		495
Total lease cost		$	3,558	$	3,417	$	7,078	$	6,777

(1)Net of capitalized costs.

The following table presents supplemental cash flow information related to leases:

	Six Months Ended
	March 31,
(Thousands)	2024		2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	4,199	$	3,652
Operating cash flows for finance leases	$	488	$	533
Financing cash flows for finance leases	$	3,875	$	3,577

Assets obtained or modified through operating lease liabilities totaled approximately $2.6M and $0.3M during the three months ended March 31, 2024 and 2023, respectively, and totaled approximately $4.1M and $0.4M during the six months ended March 31, 2024 and 2023, respectively.

Assets obtained or modified through other leases, including those which are finance leases and financing transactions for accounting purposes, totaled $8.4M during the six months ended March 31, 2023. There were no assets obtained or modified through finance leases during the three and six months ended March 31, 2024, and the three months ended March 31, 2023.

The following table presents the balance and classifications of the Company's right of use assets and lease liabilities included in the Unaudited Condensed Consolidated Balance Sheets:

(Thousands)	Balance Sheet Location	March 31, 2024		September 30, 2023
Assets
Noncurrent
Operating lease assets	Operating lease assets	$	177,176	$	175,740
Finance lease assets	Utility plant	27,168		28,248
Total lease assets		$	204,344	$	203,988
Liabilities
Current
Operating lease liabilities	Operating lease liabilities	$	4,780	$	4,772
Finance lease liabilities	Current maturities of long-term debt	8,816		8,477
Noncurrent
Operating lease liabilities	Operating lease liabilities	150,971		148,023
Finance lease liabilities	Long-term debt	18,661		22,875
Total lease liabilities		$	183,228	$	184,147

For operating lease assets and liabilities, the weighted average remaining lease term was 28.6 years and 29.2 years for and the weighted average discount rate used in the valuation over the remaining lease term was 3.6% and 3.5% for March 31, 2024 and September 30, 2023, respectively. For finance lease assets and liabilities, the weighted average remaining lease term was 3.4 years and 3.3 years and the weighted average discount rate used in the valuation over the remaining lease term was 3.3% and 2.7% as of March 31, 2024 and September 30, 2023, respectively.

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COMMITMENTS AND CONTINGENT LIABILITIES

6 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENT LIABILITIES

13. COMMITMENTS AND CONTINGENT LIABILITIES

Cash Commitments

NJNG has entered into long-term contracts, expiring at various dates through September 2039, for the supply, transportation and storage of natural gas. These contracts include annual fixed charges of approximately $227.1M at current contract rates and volumes for the remainder of the fiscal year, which are recoverable through BGSS.

For the purpose of securing storage and pipeline capacity, ES enters into storage and pipeline capacity contracts, which require the payment of certain demand charges by ES to maintain the ability to access such natural gas storage or pipeline capacity, during a fixed time period, which generally ranges from one to 10 years. Demand charges are established by interstate storage and pipeline operators and are regulated by FERC. These demand charges represent commitments to pay storage providers or pipeline companies for the right to store and/or transport natural gas utilizing their respective assets.

Commitments as of March 31, 2024, for natural gas purchases and future demand fees for the next five fiscal year periods are as follows:

(Thousands)	2024		2025		2026		2027		2028		Thereafter
ES:
Natural gas purchases	$	11,801	$	1,964	$	—	$	—	$	—	$	—
Storage demand fees	8,685		15,743		11,413		5,440		3,491		6,780
Pipeline demand fees	31,418		55,870		42,117		25,837		15,301		17,011
Sub-total ES	$	51,904	$	73,577	$	53,530	$	31,277	$	18,792	$	23,791
NJNG:
Natural gas purchases	$	6,546	$	—	$	—	$	—	$	—	$	—
Storage demand fees	22,541		33,105		15,963		11,155		4,874		—
Pipeline demand fees	77,558		202,212		143,787		129,216		113,962		966,909
Sub-total NJNG	$	106,645	$	235,317	$	159,750	$	140,371	$	118,836	$	966,909
Total	$	158,549	$	308,894	$	213,280	$	171,648	$	137,628	$	990,700

Certain pipeline demand fees totaling approximately $4.0M per year, for which ES is the responsible party, are being paid for by the counterparty to a capacity release transaction beginning in November 2021, for a period of 10 years.

Legal Proceedings

Manufactured Gas Plant Remediation

NJNG is responsible for the remedial cleanup of certain former MGP sites, dating back to gas operations in the late 1800s and early 1900s, which contain contaminated residues from former gas manufacturing operations. NJNG is currently involved in administrative proceedings with the NJDEP and is participating in various studies and investigations by outside consultants, to determine the nature and extent of any such contaminated residues and to develop appropriate programs of remedial action, where warranted, under NJDEP regulations.

NJNG periodically, and at least annually, performs an environmental review of former MGP sites located in Atlantic Highlands, Berkeley, Long Branch, Manchester, Toms River, Freehold and Aberdeen, New Jersey, including a review of potential liability for investigation and remedial action. NJNG estimated at the time of the most recent review that total future expenditures at the former MGP sites for which it is responsible, including potential liabilities for natural resource damages that might be brought by the NJDEP for alleged injury to groundwater or other natural resources concerning these sites, will range from approximately $137.3M to $201.5M. NJNG’s estimate of these liabilities is based upon known facts, existing technology and enacted laws and regulations in place when the review was completed. Where it is probable that costs will be incurred, and the information is sufficient to establish a range of possible liability, NJNG accrues the most likely amount in the range. If no point within the range is more likely than the other, it is NJNG’s policy to accrue the lower end of the range. Accordingly, as of March 31, 2024, NJNG recorded a MGP remediation liability and a corresponding regulatory asset of approximately $157.8M on the Unaudited Condensed Consolidated Balance Sheets based on the most likely amount. The actual costs to be incurred by NJNG are dependent upon several factors, including final determination of remedial action, changing technologies and governmental regulations, the ultimate ability of other responsible parties to pay and insurance recoveries, if any.

NJNG recovers its remediation expenditures, including carrying costs, over rolling seven-year periods pursuant to a RAC approved by the BPU. As of March 31, 2024, $69.2M of previously incurred remediation costs, net of recoveries from customers and insurance proceeds, are included in regulatory assets on the Unaudited Condensed Consolidated Balance Sheets. NJNG will continue to seek recovery of MGP-related costs through the RAC. If any future regulatory position indicates that the recovery of such costs is not probable, the related non-recoverable costs would be charged to income in the period of such determination.

General

The Company is involved, and from time to time in the future may be involved, in a number of pending and threatened judicial, regulatory and arbitration proceedings relating to matters that arise in the ordinary course of business. In view of the inherent difficulty of predicting the outcome of litigation matters, particularly when such matters are in their early stages or where the claimants seek indeterminate damages, the Company cannot state with confidence what the eventual outcome of the pending litigation will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, fines or penalties related to each pending matter will be, if any. In accordance with applicable accounting guidance, the Company establishes accruals for litigation for those matters that present loss contingencies as to which it is both probable that a loss will be incurred and the amount of such loss can be reasonably estimated. The Company also discloses contingent matters for which there is a reasonable possibility of a loss. Based upon currently available information, the Company believes that the results of litigation that are currently pending, taken together, will not have a materially adverse effect on the Company’s financial condition, results of operations or cash flows. The actual results of resolving the pending litigation matters may be substantially higher than the amounts accrued.

The foregoing statements about the Company’s litigation are based upon the Company’s judgments, assumptions and estimates and are necessarily subjective and uncertain. The Company has a number of threatened and pending litigation matters at various stages.

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REPORTING SEGMENT AND OTHER OPERATIONS DATA

6 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

REPORTING SEGMENT AND OTHER OPERATIONS DATA

14. REPORTING SEGMENT AND OTHER OPERATIONS DATA

The Company organizes its businesses based on a combination of factors, including its products and its regulatory environment. As a result, the Company manages its businesses through the following reporting segments and other operations: NJNG consists of regulated energy and off-system, capacity and storage management operations; CEV consists of capital investments in clean energy projects; ES consists of unregulated wholesale and retail energy operations; S&T consists of the Company’s investments in natural gas transportation and storage facilities; the HSO business operations consist of heating, cooling and water appliance sales, installations and services, other investments and general corporate activities.

Information related to the Company's various reporting segments and other operations during the three months ended March 31, 2024 and 2023, are as follows:

	Segments
(Thousands)	NJNG		CEV	ES		S&T	Subtotal		HSO	Elims	Total
2024
Operating revenues
External customers	$	462,863	9,325	148,604	(1)	22,369	$	643,161	14,752	—	$	657,913
Intercompany	$	338	—	(3,742)		673	$	(2,731)	153	2,578	$	—
Depreciation and amortization	$	27,464	6,931	56	(2)	6,218	$	40,669	271	(865)	$	40,075
Interest income (3)	$	517	—	143		2,518	$	3,178	332	(1,474)	$	2,036
Interest expense, net of capitalized interest	$	14,850	7,182	3,513		5,868	$	31,413	208	—	$	31,621
Income tax provision (benefit)	$	24,476	(1,594)	5,289		619	$	28,790	520	4,637	$	33,947
Equity in earnings of affiliates	$	—	—	—		85	$	85	—	653	$	738
Net financial earnings (loss)	$	107,095	(5,616)	37,644		1,981	$	141,104	384	(2,912)	$	138,576
Capital expenditures	$	97,710	11,317	—		13,523	$	122,550	130	—	$	122,680
2023
Operating revenues
External customers	$	400,500	14,406	196,553	(1)	19,303	$	630,762	13,265	—	$	644,027
Intercompany	$	338	—	177		1,584	$	2,099	183	(2,282)	$	—
Depreciation and amortization	$	25,319	6,465	62	(2)	6,020	$	37,866	224	—	$	38,090
Interest income (3)	$	376	—	380		1,684	$	2,440	734	(938)	$	2,236
Interest expense, net of capitalized interest	$	13,879	7,316	2,749		6,128	$	30,072	189	—	$	30,261
Income tax provision (benefit)	$	23,924	(3,005)	5,916		596	$	27,431	488	2,667	$	30,586
Equity in earnings of affiliates	$	—	—	—		977	$	977	—	154	$	1,131
Net financial earnings (loss)	$	100,697	(9,379)	21,125		2,450	$	114,893	813	(3,396)	$	112,310
Capital expenditures	$	92,600	13,706	—		10,122	$	116,428	760	—	$	117,188

(1)Includes sales to Canada for the ES segment, which are immaterial.

(2)The amortization of acquired wholesale energy contracts is excluded above and is included in natural gas purchases - nonutility on the Unaudited Condensed Consolidated Statements of Operations.

(3)Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations.

Information related to the Company's various reporting segments and other operations during the six months ended March 31, 2024 and 2023, are as follows:

	Segments
(Thousands)	NJNG		CEV	ES		S&T	Subtotal		HSO	Elims	Total
2024
Operating revenues
External customers	$	755,956	44,620	249,405	(1)	45,556	$	1,095,537	29,586	—	$	1,125,123
Intercompany	$	675	—	(4,875)		1,348	$	(2,852)	153	2,699	$	—
Depreciation and amortization	$	54,381	13,853	113	(2)	12,380	$	80,727	500	(865)	$	80,362
Interest income (3)	$	1,095	—	271		4,888	$	6,254	688	(2,880)	$	4,062
Interest expense, net of capitalized interest	$	29,601	14,629	6,639		11,801	$	62,670	424	—	$	63,094
Income tax provision	$	35,132	1,537	12,800		1,651	$	51,120	468	5,295	$	56,883
Equity in earnings of affiliates	$	—	—	—		1,078	$	1,078	—	1,320	$	2,398
Net financial earnings (loss)	$	158,539	4,906	45,475		5,621	$	214,541	(216)	(3,305)	$	211,020
Capital expenditures	$	177,425	37,083	—		21,308	$	235,816	1,486	—	$	237,302
2023
Operating revenues
External customers	$	757,909	27,198	509,952	(1)	45,017	$	1,340,076	27,518	—	$	1,367,594
Intercompany	$	675	—	8,560		2,708	$	11,943	196	(12,139)	$	—
Depreciation and amortization	$	50,209	12,041	119	(2)	11,962	$	74,331	442	—	$	74,773
Interest income (3)	$	789	—	649		3,085	$	4,523	1,388	(1,716)	$	4,195
Interest expense, net of capitalized interest	$	27,588	13,211	5,807		12,835	$	59,441	311	—	$	59,752
Income tax provision (benefit)	$	38,307	(4,842)	25,980		2,539	$	61,984	705	875	$	63,564
Equity in earnings of affiliates	$	—	—	—		1,886	$	1,886	—	191	$	2,077
Net financial earnings (loss)	$	155,361	(12,961)	73,658		8,693	$	224,751	784	(2,941)	$	222,594
Capital expenditures	$	174,671	57,699	—		29,841	$	262,211	900	—	$	263,111

(1)Includes sales to Canada for the ES segment, which are immaterial.

(2)The amortization of acquired wholesale energy contracts is excluded above and is included in natural gas purchases - nonutility on the Unaudited Condensed Consolidated Statements of Operations.

(3)Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations.

The Company's assets for the various reporting segments and business operations are detailed below:

	Segments								Intercompany
(Thousands)	NJNG		CEV	ES	S&T	Subtotal		HSO	Assets (1)	Total
March 31, 2024	$	4,527,458	1,124,392	104,094	1,012,899	$	6,768,843	171,594	(293,060)	$	6,647,377
September 30, 2023	$	4,414,829	1,128,577	123,775	1,011,959	$	6,679,140	171,275	(312,919)	$	6,537,496

(1)Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation.

The Chief Executive Officer, who uses NFE as a measure of profit or loss in measuring the results of the Company's reporting segments and other business operations, is the chief operating decision maker of the Company. A reconciliation of consolidated NFE to consolidated net income is as follows:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands)	2024		2023		2024		2023
Net financial earnings	$	138,576	$	112,310	$	211,020	$	222,594
Less:
Unrealized loss (gain) on derivative instruments and related transactions	25,457		13,971		20,057		(17,532)
Tax effect	(6,049)		(3,320)		(4,767)		4,167
Effects of economic hedging related to natural gas inventory	(2,845)		(11,203)		(19,073)		12,769
Tax effect	676		2,662		4,533		(3,035)
Gain on equity method investment	—		(200)		—		(200)
Tax effect	—		50		—		50
NFE tax adjustment	525		103		47		207
Net income	$	120,812	$	110,247	$	210,223	$	226,168

The Company uses derivative instruments as economic hedges of purchases and sales of physical natural gas inventory. For GAAP purposes, these derivatives are recorded at fair value and related changes in fair value are included in reported earnings. Revenues and cost of natural gas related to physical natural gas flow are recognized when the natural gas is delivered to customers. Consequently, there is a mismatch in the timing of earnings recognition between the economic hedges and physical natural gas flows. Timing differences occur in two ways:

•unrealized gains and losses on derivatives are recognized in reported earnings in periods prior to physical natural gas inventory flows; and

•unrealized gains and losses of prior periods are reclassified as realized gains and losses when derivatives are settled in the same period as physical natural gas inventory movements occur.

NFE is a measure of the earnings based on eliminating these timing differences, to effectively match the earnings effects of the economic hedges with the physical sale of natural gas, SRECs and foreign currency contracts. Consequently, to reconcile between net income and NFE, current period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item. Realized derivative gains and losses are also included in current period net income. However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the derivatives with realized margins on physical natural gas flows. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE. The Company also calculates a quarterly tax adjustment based on an estimated annual effective tax rate for NFE purposes.

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RELATED PARTY TRANSACTIONS

6 Months Ended

Mar. 31, 2024

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

15. RELATED PARTY TRANSACTIONS

Effective April 2020, NJNG entered into a 5-year agreement for 3 Bcf of firm storage capacity with Steckman Ridge, which expires on March 31, 2025. Under the terms of the agreement, NJNG incurs demand fees, at market rates, of approximately $9.3M annually, a portion of which is eliminated in consolidation. These fees are recoverable through NJNG’s BGSS mechanism and are included as a component of regulatory assets.

ES may periodically enter into storage or park and loan agreements with its affiliated FERC-jurisdictional natural gas storage facility, Steckman Ridge. As of March 31, 2024, ES entered into transactions with Steckman Ridge for varying terms, all of which expire by March 31, 2027.

Demand fees, net of eliminations, associated with Steckman Ridge were as follows:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands)	2024		2023		2024		2023
NJNG	$	1,585	$	1,615	$	3,240	$	3,270
ES	214		155		438		327
Total	$	1,799	$	1,770	$	3,678	$	3,597

The following table summarizes demand fees payable to Steckman Ridge as of:

(Thousands)	March 31, 2024		September 30, 2023
NJNG	$	778	$	775
ES	81		84
Total	$	859	$	859

NJNG and ES enter into various AMAs, the effects of which are eliminated in consolidation. Under the terms of these agreements, NJNG releases certain transportation and storage contracts to ES. NJNG and ES had one AMA, which expired on March 31, 2024, and was not renewed.

NJNG entered into two transportation agreements with Adelphia, each for committed capacity of 130,000 Dekatherms per day. The first is for 5 years in Zone South with an expiration date of August 8, 2027, and the second is for 15 years in Zone North, which began on November 1, 2023, with an expiration date of October 31, 2038.

ES had a 5-year agreement for 3 Bcf of firm storage capacity with Leaf River, that expired on March 31, 2024, the effects of which are eliminated in consolidation, and was not renewed.

NJNG and CEV entered into a 15-year sublease and PPA related to an onsite solar array and the related energy output at the Company’s headquarters in Wall, New Jersey, with an expiration date of March 1, 2036, the effects of which are immaterial to the consolidated financial statements.

NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, with an expiration date of July 1, 2037, the effects of which are eliminated in consolidation.

NJNG and CEV entered into a 20-year sublease and PPA related to an onsite solar array and the related energy output at the Company’s liquefied natural gas plant in Howell, New Jersey, with an expiration date of June 1, 2042, the effects of which are immaterial to the consolidated financial statements.

The intercompany profits for certain transactions between NJNG and ES and NJNG and Adelphia are not eliminated in accordance with ASC 980, Regulated Operations.

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income	$ 120,812	$ 89,411	$ 110,247	$ 115,921	$ 210,223	$ 226,168

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Insider Trading Arrangements

3 Months Ended

6 Months Ended

Mar. 31, 2024

shares

Mar. 31, 2024

shares

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

On February 23, 2024, Stephen D. Westhoven, our President and Chief Executive Officer and a director, adopted a Rule 10b5-1 trading arrangement, which is intended to satisfy the affirmative defense of Rule 10b5-1(c). The Rule 10b5-1 trading arrangement provides for sales of up to 50,000 shares of our common stock beginning on May 23, 2024 until December 31, 2024, or once all of the shares have been sold. Actual sale transactions will be disclosed publicly in filings with the SEC in accordance with applicable securities laws, rules and regulations.

Non-Rule 10b5-1 Arrangement Adopted

false

Rule 10b5-1 Arrangement Terminated

false

Non-Rule 10b5-1 Arrangement Terminated

false

Stephen D. Westhoven [Member]

Trading Arrangements, by Individual

Name

Stephen D. Westhoven

Title

President and Chief Executive Officer and a director

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

February 23, 2024

Arrangement Duration

222 days

Aggregate Available

50,000

50,000

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Consolidation

The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared by the Company in accordance with the rules and regulations of the U.S. Securities and Exchange Commission and GAAP. The September 30, 2023 Balance Sheet data is derived from the audited financial statements of the Company. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's 2023 Annual Report on Form 10-K.

The Unaudited Condensed Consolidated Financial Statements include the accounts of NJR and its subsidiaries. In the opinion of management, the accompanying Unaudited Condensed Consolidated Financial Statements reflect all adjustments necessary for a fair presentation of the results of the interim periods presented. These adjustments are of a normal and recurring nature. Because of the seasonal nature of the Company's utility and wholesale energy services operations, in addition to other factors, the financial results for the interim periods presented are not indicative of the results that are to be expected for the fiscal year ending September 30, 2024. Intercompany transactions and accounts have been eliminated.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires the Company to make estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingencies during the reporting period. On a quarterly basis or more frequently whenever events or changes in circumstances indicate a need, the Company evaluates its estimates, including those related to the calculation of the fair value of derivative instruments, debt, equity method investments, lease liabilities, unbilled revenues, allowance for doubtful accounts, provisions for depreciation and amortization, long-lived assets, regulatory assets and liabilities, income taxes, pensions and other postemployment benefits, contingencies related to environmental matters and litigation. Asset retirement obligations are evaluated periodically as required. The Company’s estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.

The Company has legal, regulatory and environmental proceedings during the normal course of business that can result in loss contingencies. When evaluating the potential for a loss, the Company will establish a reserve if a loss is probable and can be reasonably estimated, in which case it is the Company’s policy to accrue the full amount of such estimates. Where the information is sufficient only to establish a range of probable liability, and no point within the range is more likely than any other, it is the Company’s policy to accrue the lower end of the range. In the normal course of business, estimated amounts are subsequently adjusted to actual results that may differ from estimates.

Revenues

Revenues

Revenues from the sale of natural gas to NJNG customers are recognized in the period that natural gas is delivered and consumed by customers, including an estimate for unbilled revenue. NJNG records unbilled revenue for natural gas services. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the month. At the end of each month, the amount of natural gas delivered to each customer after the last meter reading through the end of the respective accounting period is estimated, and recognizes unbilled revenues related to these amounts. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects, unaccounted-for natural gas and the most current tariff rates.

CEV recognizes revenue when SRECs are transferred to counterparties. SRECs are physically delivered through the transfer of certificates as per contractual settlement schedules. The Clean Energy Act of 2018 established guidelines for the closure of the SREC registration program to new applicants in New Jersey. The SREC program officially closed to new qualified solar projects on April 30, 2020.

In December 2019, the BPU established the TREC as the successor to the SREC program. TRECs provide a fixed compensation base multiplied by an assigned project factor in order to determine their value. The project factor is determined by the type and location of the project, as defined.

In July 2021, the BPU established a new successor solar incentive program. The Administratively Determined Incentive Program provides administratively set incentives for net metered residential projects and net metered non-residential projects of 5 MW or less. RECs generated through the production of electricity under this program are known as SREC IIs.

TRECs and SREC IIs generated are required to be purchased monthly by a REC program administrator as appointed by the BPU. Revenue for TRECs and SREC IIs are recognized upon generation and are transferred monthly based upon metered solar electricity activity.

Revenues for ES are recognized when the natural gas is physically delivered to the customer. In addition, changes in the fair value of derivatives that economically hedge the forecasted sales of the natural gas are recognized in operating revenues as they occur. ES also recognizes changes in the fair value of SREC derivative contracts as a component of operating revenues.

During December 2020, ES entered into a series of AMAs with an investment grade public utility to release pipeline capacity associated with certain natural gas transportation contracts, which commenced in November 2021. The AMAs include a series of temporary and permanent releases and revenue under these agreements is recognized as the performance obligations are satisfied. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed upon term. For permanent releases of pipeline capacity, which represent a transfer of contractual rights for such capacity, revenue is recognized upon the transfer of the underlying contractual rights. ES recognized operating revenue of $9.5M during both the three months ended March 31, 2024 and 2023, and $19.0M and $29.5M during the six months ended March 31, 2024 and 2023, respectively, on the Unaudited Condensed Consolidated Statements of Operations. Amounts received in excess of revenue totaling $107.2M and $58.7M are included in deferred revenue on the Unaudited Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023, respectively.

S&T generates revenues from firm storage contracts and transportation contracts, related usage fees and hub services for the use of storage space, injections and withdrawals from their natural gas storage facility and the delivery of natural gas to customers. Demand fees are recognized as revenue over the term of the related agreement while usage fees and hub services revenues are recognized as services are performed.

Revenues from all other activities are recorded in the period during which products or services are delivered and accepted by customers, or over the related contractual term. See Note 3. Revenue for further information.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on deposit and temporary investments with maturities of three months or less, and excludes restricted cash related to escrow balances for utility plant projects at NJNG, which are recorded in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets.

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

The Company segregates financial assets, primarily trade receivables and unbilled revenues due in one year or less, into portfolio segments based on shared risk characteristics, such as geographical location and regulatory environment, for evaluation of expected credit losses. Historical and current information, such as average write-offs, are applied to each portfolio segment to estimate the allowance for losses on uncollectible receivables. Additionally, the allowance for losses on uncollectible receivables is adjusted for reasonable and supportable forecasts of future economic conditions, which can include changing weather, commodity prices, regulations, and macroeconomic factors, such as unemployment rates among others.

Loans Receivable

Loans Receivable

NJNG currently provides loans, with terms ranging from two to 10 years, to customers that elect to purchase and install certain energy-efficient equipment in accordance with its BPU-approved SAVEGREEN program. The loans are recognized at fair value on the Unaudited Condensed Consolidated Balance Sheets.

Software Costs

Software Costs

The Company capitalizes certain costs, such as software design and configuration, coding, testing and installation, that are incurred to purchase or create and implement computer software for internal use. Capitalized costs include external costs of materials and services utilized in developing or obtaining internal-use software and payroll and payroll-related costs for employees who are directly associated with and devote time to the internal-use software project. Maintenance costs are expensed as incurred. Upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Amortization is recorded on the straight-line basis over the estimated useful lives.

Sale Leasebacks

Sale Leasebacks

NJNG utilizes sale leaseback arrangements as a financing mechanism to fund certain of its capital expenditures related to natural gas meters, whereby the physical asset is sold concurrent with an agreement to lease the asset back. These agreements include options to renew the lease or repurchase the asset at the end of the term. As NJNG retains control of the natural gas meters, these arrangements do not qualify as a sale. NJNG uses the financing method to account for the transactions. Proceeds from sale leaseback transactions are accounted for as financing arrangements and are included in long-term debt on the Unaudited Condensed Consolidated Balance Sheets.

In addition, for certain of its commercial solar energy projects, the Company enters into lease agreements that provide for the sale of commercial solar energy assets to third parties and the concurrent leaseback of the assets. For sale leaseback transactions where the Company has concluded that the arrangement does not qualify as a sale as the Company retains control of the underlying assets, the Company uses the financing method to account for the transaction. Under the financing method, the Company recognizes the proceeds received from the buyer-lessor that constitute a payment to acquire the solar energy asset as a financing arrangement, which is recorded as a component of debt on the Unaudited Condensed Consolidated Balance Sheets.

The Company continues to operate the solar assets and is responsible for related expenses and entitled to retain the revenue generated from SRECs, TRECs, SREC IIs and energy sales. The ITCs and other tax benefits associated with these solar projects transfer to the buyer; however, the payments are structured so that CEV is compensated for the transfer of the related tax attributes. Accordingly, CEV recognizes the equivalent value of the tax attributes in other income on the Unaudited Condensed Consolidated Statements of Operations over the respective five-year ITC recapture periods, starting with the second year of the lease.

See Note 9. Debt for more details regarding sale leaseback transactions recorded as financing arrangements.

Reclassification

Reclassification

Certain prior period amounts have been reclassified to conform to the current period presentation. Deferred income taxes and postemployment employee benefit assets previously classified within other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets have been reclassified to their own categories. Intangible assets, net previously classified in its own category on the Unaudited Condensed Consolidated Balance Sheets has been reclassified into other noncurrent assets. Other noncurrent assets and other noncurrent liabilities previously classified in their own categories on the Unaudited Condensed Consolidated Statements of Cash Flow have been combined into one category.

Recently Adopted Updates to the Accounting Standards Codification

Recently Adopted Updates to the Accounting Standards Codification

Business Combinations

In October 2021, the FASB issued ASU No. 2021-08, an amendment to ASC 805, Business Combinations, which requires that an acquirer recognize, and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The guidance was effective for the Company beginning October 1, 2023, and was applied on a prospective basis to new acquisitions following the date of adoption. As the Company has not executed a transaction that would qualify as a business combination, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption.

Derivatives and Hedging

In March 2022, the FASB issued ASU No. 2022-01, an amendment to ASC 815, Derivatives and Hedging, which addresses fair value hedge accounting of interest rate risk for portfolios of financial assets. This update further clarifies guidance previously released in ASU 2017-12 which established the "last-of-layer" method and this update renames that method as the “portfolio layer” method. The guidance was effective for the Company beginning October 1, 2023. As the Company does not currently apply hedge accounting to any of its risk management activities, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption.

Financial Instruments

In March 2022, the FASB issued ASU No. 2022-02, an amendment to ASC 326, Financial Instruments-Credit Losses, which eliminates the accounting guidance for creditors in troubled debt restructuring. It also aligns conflicting disclosure requirement guidance in ASC 326 by requiring disclosure of current-period gross write-offs by year of origination. The amendment also adds new disclosures for creditors with loan refinancing and restructuring for borrowers experiencing financial difficulty. The guidance was effective for the Company beginning October 1, 2023. Since the Company has not experienced a troubled debt restructuring, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption.

Other Recent Updates to the Accounting Standards Codification

Fair Value Measurement

In June 2022, the FASB issued ASU No. 2022-03, an amendment to ASC 820, Fair Value Measurement. The amendment clarifies the fair value principles when measuring the fair value of an equity security subject to a contractual sale restriction. The guidance is effective for the Company on October 1, 2024, and will be applied on a prospective basis. At this time, the Company does not have equity securities subject to contractual sale restrictions, and therefore this amendment would only impact the Company upon adoption if, in the future, it entered into such transactions.

Leases

In March 2023, the FASB issued ASU No. 2023-01, an amendment to ASC 842, Leases, which applies to arrangements between related parties under common control. This update requires that all entities with common control arrangements classify and account for these leases on the same basis as an arrangement with an unrelated party. If the lessee in these types of arrangements continues to control the use of the underlying asset through a lease, the leasehold improvements are to be amortized over the improvements’ useful life to the common control group, regardless of the lease term. The guidance is effective for the Company on October 1, 2024, and the Company will elect to apply it on a prospective basis. At this time, the Company does not have leases that are subject to this amendment, and therefore it would only impact the Company upon adoption if, in the future, it entered into such transactions.

Business Combinations

In August 2023, the FASB issued ASU No. 2023-05, an amendment to ASC 805, Business Combinations, which addresses how a joint venture should recognize contributions received upon its formation. Joint ventures must account for initial assets and liabilities received at fair value on the date the joint venture is formed. The guidance is effective for the Company for joint ventures formed beginning January 1, 2025, and the Company can elect to apply it either prospectively or retrospectively back to a joint venture’s formation date provided adequate information is available. Early adoption is permitted. This amendment would only impact the Company upon adoption if, in the future, it entered into an applicable transaction.

Segment Reporting

In November 2023, the FASB issued ASU No. 2023-07, an amendment to ASC 280, Segment Reporting, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The update requires entities to disclosure significant segment expenses that are regularly provided to the chief operating decision maker and included within segment profit and loss, and it enhances interim disclosure requirements to conform with annual requirements. This update becomes effective for the Company on October 1, 2024 for the first annual period and on October 1, 2025 for the interim periods. It will be applied retrospectively for the enhanced segment disclosure requirements to all periods presented, with early adoption permitted. The Company is currently evaluating the amendment to understand the impacts on its financial position, results of operations, cash flows and disclosures upon adoption.

Income Taxes

In December 2023, the FASB issued ASU No. 2023-09, an amendment to ASC 740, Income Taxes, which requires disaggregated information about a reporting entity’s effective tax rate reconciliation and income taxes paid. It will provide investors more detailed income tax disclosures that would be useful in making capital allocation decisions. The guidance is effective for the Company on October 1, 2025, and can be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the amendment to understand the impacts on its financial position, results of operations, cash flows and disclosures upon adoption.

Derivative Instruments

The Company is subject primarily to commodity price risk due to fluctuations in the market price of natural gas, SRECs and electricity. To manage this risk, the Company enters into a variety of derivative instruments including, but not limited to, futures contracts, physical forward contracts, financial options and swaps to economically hedge the commodity price risk associated with its existing and anticipated commitments to purchase and sell natural gas, SRECs and electricity. In addition, the Company is exposed to foreign currency and interest rate risk and may utilize foreign currency derivatives to hedge Canadian dollar denominated natural gas purchases and/or sales and interest rate derivatives to reduce exposure to fluctuations in interest rates. All of these types of contracts are accounted for as derivatives, unless the Company elects NPNS, which is done on a contract-by-contract election. Accordingly, all of the financial and certain of the Company's physical derivative instruments are recorded at fair value on the Unaudited Condensed Consolidated Balance Sheets. For a more detailed discussion of the Company’s fair value measurement policies and level disclosures associated with the Company’s derivative instruments, see Note 6. Fair Value.

Energy Services

ES chooses not to designate its financial commodity and physical forward commodity derivatives as accounting hedges or to elect NPNS. The changes in the fair value of these derivatives are recorded as a component of natural gas purchases or operating revenues, as appropriate for ES, on the Unaudited Condensed Consolidated Statements of Operations as unrealized gains or losses. For ES at settlement, realized gains and losses on all financial derivative instruments are recognized as a component of natural gas purchases and realized gains and losses on all physical derivatives follow the presentation of the related unrealized gains and losses as a component of either natural gas purchases or operating revenues.

ES also enters into natural gas transactions in Canada and, consequently, is exposed to fluctuations in the value of Canadian currency relative to the U.S. dollar. ES may utilize foreign currency derivatives to lock in the exchange rates associated with natural gas transactions denominated in Canadian currency. The derivatives may include currency forwards, futures, or swaps and are accounted for as derivatives. These derivatives are typically used to hedge demand fee payments on pipeline capacity, storage and natural gas purchase agreements.

As a result of ES entering into transactions to borrow natural gas, commonly referred to as “park and loans,” an embedded derivative is recognized relating to differences between the fair value of the amount borrowed and the fair value of the amount that will ultimately be repaid, based on changes in the forward price for natural gas prices at the borrowed location over the contract term. This embedded derivative is accounted for as a forward sale in the month in which the repayment of the borrowed natural gas is expected to occur, and is considered a derivative transaction that is recorded at fair value on the Unaudited Condensed Consolidated Balance Sheets, with changes in value recognized in current period earnings.

Expected production of SRECs is hedged through the use of forward and futures contracts. All contracts require the Company to physically deliver SRECs through the transfer of certificates as per contractual settlement schedules. ES recognizes changes in the fair value of these derivatives as a component of operating revenues. Upon settlement of the contract, the related revenue is recognized when the SREC is transferred to the counterparty.

Natural Gas Distribution

Changes in fair value of NJNG's financial commodity derivatives are recorded as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets. The Company elects NPNS accounting treatment on all physical commodity contracts that NJNG entered into on or before December 31, 2015, and accounts for these contracts on an accrual basis. Accordingly, physical natural gas purchases are recognized in regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets when the contract settles and the natural gas is delivered. The average cost of natural gas is charged to expense in the current period earnings based on the BGSS factor times the therm sales. NJNG no longer elects NPNS accounting treatment on a portfolio basis. However, since NPNS is a contract-by-contract election, where it makes sense to do so, NJNG can and may elect to treat certain contracts as normal. Because NJNG recovers these amounts through future BGSS rates as increases or decreases to the cost of natural gas in NJNG’s tariff for natural gas service, the changes in fair value of these contracts are deferred as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets.

Clean Energy Ventures

The Company elects NPNS accounting treatment on PPA contracts executed by CEV that meet the definition of a derivative and accounts for the contract on an accrual basis. Accordingly, electricity sales are recognized in revenues throughout the term of the PPA as electricity is delivered. NPNS is a contract-by-contract election and where it makes sense to do so, the Company can and may elect to treat certain contracts as normal.

Offsetting of Derivatives

The Company transacts under master netting arrangements or equivalent agreements that allow it to offset derivative assets and liabilities with the same counterparty. However, the Company’s policy is to present its derivative assets and liabilities on a gross basis at the contract level unit of account on the Unaudited Condensed Consolidated Balance Sheets.

Fair Value Hierarchy

Fair Value Hierarchy

The Company applies fair value measurement guidance to its financial assets and liabilities, as appropriate, which include financial derivatives and physical commodity contracts qualifying as derivatives, investments in equity securities and other financial assets and liabilities. In addition, authoritative accounting literature prescribes the use of a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on the source of the data used to develop the price inputs. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to inputs that are based on unobservable market data and includes the following:

Fair Value Hierarchy	Description of Fair Value Level	Fair Value Technique
Level 1	Unadjusted quoted prices for identical assets or liabilities in active markets	The Company’s Level 1 assets and liabilities include exchange-traded natural gas futures and options contracts, listed equities and money market funds. Exchange-traded futures and options contracts include all energy contracts traded on the NYMEX, CME and ICE that the Company refers to internally as basis swaps, fixed swaps, futures and financial options that are cleared through an FCM.
Level 2	Other significant observable inputs, such as interest rates or price data, including both commodity and basis pricing that is observed either directly or indirectly from publications or pricing services	The Company’s Level 2 assets and liabilities include over-the-counter physical forward commodity contracts and swap contracts, SREC forward sales or derivatives that are initially valued using observable quotes and are subsequently adjusted to include time value, credit risk or estimated transport pricing components for which no basis price is available. Level 2 financial derivatives consist of transactions with non-FCM counterparties (basis swaps, fixed swaps and/or options). Inputs are verifiable and do not require significant management judgment. For some physical commodity contracts, the Company utilizes transportation tariff rates that are publicly available and that it considers to be observable inputs that are equivalent to market data received from an independent source. There are no significant judgments or adjustments applied to the transportation tariff inputs and no market perspective is required. Even if the transportation tariff input were considered to be a “model,” it would still be considered to be a Level 2 input as the data is: •widely accepted and public; •non-proprietary and sourced from an independent third party; and •observable and published. These additional adjustments are generally not considered to be significant to the ultimate recognized values.
Level 3	Inputs derived from a significant amount of unobservable market data	These include the Company’s best estimate of fair value and are derived primarily through the use of internal valuation methodologies.

Lessee Accounting

Lessee Accounting

The Company determines if an arrangement is a lease at inception based on whether the Company has the right to control the use of an identified asset, the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset. After the criteria are satisfied, the Company accounts for these arrangements as leases in accordance with ASC 842, Leases. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Most leases in which the Company is the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. The Company uses the implicit rate for agreements in which it is a lessor. The Company has not entered into any material agreements in which it is a lessor. Lease expense and lease income are recognized on a straight-line basis over the lease term for operating leases.

The Company’s lease agreements primarily consist of commercial solar land leases, storage and capacity leases, equipment and real property, including land and office facilities, office equipment and the sale leaseback of certain natural gas meters.

Certain leases contain escalation provisions for inflation metrics. The storage leases contain a variable payment component that relates to the change in the inflation metrics that are not known past the current payment period. The variable components of these lease payments are excluded from the lease payments that are used to determine the related right-of-use lease asset and liability. The variable portion of these leases are recognized as leasing expenses when they are incurred. The capacity lease payments are fully variable and based on the amount of natural gas stored in the storage caverns.

Generally, the Company’s solar land lease terms are between 20 and 50 years and may include multiple options to extend the terms for an additional five to 20 years. The Company’s office leases vary in duration, ranging from two to 11 years and may or may not include extension or early purchase options. The Company’s meter lease terms are between six and 10 years with purchase options available prior to the end of the term. Equipment leases include general office equipment that also vary in duration, with an average term of nine years. The Company's storage and capacity leases have assumed terms of 50 years to coincide with the expected useful lives of the cavern assets with which the leases are associated. The Company's lease terms may include options to extend, purchase the leased asset or terminate a lease and they are included in the lease liability calculation when it is reasonably certain that those options will be exercised. The Company has elected an accounting policy that exempts leases with an original term of one year or less from the recognition requirements of ASC 842, Leases.

The Company has lease agreements with lease and non-lease components and has elected the practical expedient to combine lease and non-lease components for certain classes of leases, such as office buildings, solar land leases and office equipment. Variable payments are not considered material to the Company. The Company’s lease agreements do not contain any material residual value guarantees, material restrictions or material covenants. In July 2021, NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, the effects of which are eliminated in consolidation.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Schedule of Restricted Cash

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Unaudited Condensed Consolidated Balance Sheets to the total amounts in the Unaudited Condensed Consolidated Statements of Cash Flows as follows:

(Thousands)	March 31, 2024		September 30, 2023		March 31, 2023
Balance Sheet
Cash and cash equivalents	$	5,036	$	954	$	27,095
Restricted cash in other noncurrent assets	$	710	$	563	$	461
Statements of Cash Flow
Cash, cash equivalents and restricted cash	$	5,746	$	1,517	$	27,556

Schedule of Natural Gas in Storage

The following table summarizes natural gas in storage, at average cost by segment as of:

	March 31, 2024				September 30, 2023
($ in thousands)	Natural Gas in Storage			Bcf	Natural Gas in Storage			Bcf
NJNG		$	60,539	9.2		$	175,025	29.1
ES		20,457		11.3		24,476		14.6
Total		$	80,996	20.5		$	199,501	43.7

Schedule of Software Costs Included in the Consolidated Financial Statements

The following tables present the software costs included in the Unaudited Condensed Consolidated Financial Statements:

(Thousands)	March 31, 2024		September 30, 2023
Balance Sheets
Utility plant, at cost	$	88,234	$	51,282
Construction work in progress	$	45,573	$	55,012
Nonutility plant and equipment, at cost	$	344	$	344
Accumulated depreciation and amortization, utility plant	$	(9,728)	$	(7,480)
Accumulated depreciation and amortization, nonutility plant and equipment	$	(42)	$	(36)
Software costs	$	9,734	$	8,375

	Three Months Ended				Six Months Ended
	March 31,				March 31,
Statements of Operations	2024		2023		2024		2023
Operation and maintenance	$	2,674	$	3,886	$	5,927	$	7,638
Depreciation and amortization	$	1,265	$	957	$	2,254	$	1,828

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in the components of accumulated other comprehensive income (loss), net of related tax effects during the three months ended March 31, 2024 and 2023:

(Thousands)	Cash Flow Hedges		Postemployment Benefit Obligation			Total
Balance as of December 31, 2023	$	(7,005)	$	(2,559)		$	(9,564)
Other comprehensive income (loss), net of tax
Other comprehensive income, before reclassifications, net of tax of $0, $(3,020), $(3,020), respectively	—		9,992			9,992
Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $(80), $112, $32, respectively	262		(368)		(1)	(106)
Net current-period other comprehensive income, net of tax of $(80), $(2,908), $(2,988), respectively	262		9,624			9,886
Balance as of March 31, 2024	$	(6,743)	$	7,065		$	322
Balance as of December 31, 2022	$	(8,059)	$	3,537		$	(4,522)
Other comprehensive income, net of tax
Amounts reclassified from accumulated other comprehensive income, net of tax of $(80), $(13), $(93)	264		41		(1)	305
Balance as of March 31, 2023	$	(7,795)	$	3,578		$	(4,217)

(1)Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations.

The following table presents the changes in the components of accumulated other comprehensive income (loss), net of related tax effects during the six months ended March 31, 2024 and 2023:

(Thousands)	Cash Flow Hedges		Postemployment Benefit Obligation			Total
Balance as of September 30, 2023	$	(7,269)	$	(2,690)		$	(9,959)
Other comprehensive income (loss), net of tax
Other comprehensive income, before reclassifications, net of tax of $0, $(3,020) and $(3,020), respectively	—		9,992			9,992
Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $(159), $72 and $(87), respectively	526		(237)		(1)	289
Net current-period other comprehensive income, net of tax of $(159), $(2,948), $(3,107), respectively	526		9,755			10,281
Balance as of March 31, 2024	$	(6,743)	$	7,065		$	322
Balance as of September 30, 2022	$	(8,322)	$	3,496		$	(4,826)
Other comprehensive income, net of tax
Amounts reclassified from accumulated other comprehensive income, net of tax of $(159), $(25) and $(184), respectively	527		82		(1)	609
Balance as of March 31, 2023	$	(7,795)	$	3,578		$	(4,217)

(1)Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations.

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REVENUE (Tables)

6 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Performance Obligation, Recognition Period

Below is a listing of performance obligations that arise from contracts with customers, along with details on the satisfaction of each performance obligation, the significant payment terms and the nature of the goods and services being transferred, by reporting segment and other business operations:

Revenue Recognized Over Time:
Segment/ Operations	Performance Obligation	Description
NJNG	Natural gas utility sales	NJNG's performance obligation is to provide natural gas to residential, commercial and industrial customers as demanded, based on regulated tariff rates, which are established by the BPU. Revenues from the sale of natural gas are recognized in the period that natural gas is delivered and consumed by customers, including an estimate for quantities consumed but not billed during the period. Payment is due each month for the previous month's deliveries. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the billing period. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects and the most current tariff rates. NJNG is entitled to be compensated for performance completed until service is terminated. Customers may elect to purchase the natural gas commodity from NJNG or may contract separately to purchase natural gas directly from third-party suppliers. As NJNG is acting as an agent on behalf of the third-party supplier, revenue is recorded for the delivery of natural gas to the customer.
CEV	Commercial solar electricity	CEV operates wholly-owned solar projects that recognize revenue as electricity is generated and transferred to the customer. The performance obligation is to provide electricity to the customer in accordance with contract terms or the interconnection agreement and is satisfied upon transfer of electricity generated. Revenue is recognized as invoiced and the payment is due each month for the previous month's services.

Revenue Recognized Over Time (continued):
Segment/ Operations	Performance Obligation	Description
CEV	Residential solar electricity	CEV provides access to residential rooftop and ground-mount solar equipment to customers who then pay the Company a monthly fee. The performance obligation is to provide electricity to the customer based on generation from the underlying residential solar asset and is satisfied upon transfer of electricity generated. Revenue is derived from the contract terms and is recognized as invoiced, with the payment due each month for the previous month's services.
CEV	Renewable energy certificates	Certain CEV projects generate TRECs and SREC IIs under the established Administratively Determined Incentive Program. A TREC or SREC II is created for every MWh of electricity produced by a solar generator. The performance obligation of CEV is to generate electricity. TRECs and SREC IIs under the Administratively Determined Incentive Program are purchased monthly by a REC Administrator. Revenue is recognized upon generation.
ES	Natural gas services	The performance obligation of ES is to provide the customer transportation, storage and asset management services on an as-needed basis. ES generates revenue through management fees, demand charges, reservation fees and transportation charges centered around the buying and selling of the natural gas commodity, representing one series of distinct performance obligations. Revenue is recognized based upon the underlying natural gas quantities physically delivered and the customer obtaining control. ES invoices customers in line with the terms of the contract and based on the services provided. Payment is due upon receipt of the invoice. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed upon term.
S&T	Natural gas services	The performance obligation of S&T is to provide the customer with storage and transportation services. S&T generates revenues from firm storage contracts and transportation contracts, injection and withdrawal at the storage facility and the delivery of natural gas to customers. Revenue is recognized over time as customers receive the benefits of its service as it is performed on their behalf using an output method based on actual deliveries. Demand fees are recognized as revenue over the term of the related agreement.
HSO	Service contracts	Home Services enters into service contracts with homeowners to provide maintenance and replacement services of applicable heating, cooling or ventilation equipment. NJR Retail enters into warranty contracts with homeowners for various appliances. All services provided relate to a distinct performance obligation which is to provide services for the specific equipment over the term of the contract. Revenue is recognized on a straight-line basis over the term of the contract and payment is due upon receipt of the invoice.
Revenue Recognized at a Point in Time:
ES	Natural gas services	For a permanent release of pipeline capacity, the performance obligation of ES is the release of the pipeline capacity associated with certain natural gas transportation contracts and the transfer of the underlying contractual rights to the counterparty. Revenue is recognized upon the transfer of the underlying contractual rights.
S&T	Natural gas services	The performance obligation of S&T is to provide the customer with storage and transportation services. S&T generates revenues from usage fees and hub services for the use of storage space, injection and withdrawal from the storage facility. Hub services include park and loan transactions and wheeling. Usage fees and hub services revenues are recognized as services are performed.
HSO	Installations	Home Services installs appliances, including but not limited to, furnaces, air conditioning units, boilers and generators for customers. The distinct performance obligation is the installation of the contracted appliance, which is satisfied at the point in time the item is installed. The transaction price for each installation differs accordingly. Revenue is recognized at a point in time upon completion of the installation, which is when the customer is billed.

Schedule of Disaggregation of Revenue

Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the three months ended March 31, 2024 and 2023, are as follows:

(Thousands)	NJNG		CEV		ES	S&T	HSO	Total
2024
Natural gas utility sales (1)	$	371,019	—		—	—	—	$	371,019
Natural gas services	—		—		16,145	23,042	—	39,187
Service contracts	—		—		—	—	9,071	9,071
Installations and maintenance	—		—		—	—	5,834	5,834
Renewable energy certificates	—		2,672		—	—	—	2,672
Electricity sales	—		6,553		—	—	—	6,553
Eliminations (2)	(338)		—		—	(673)	(153)	(1,164)
Revenues from contracts with customers	370,681		9,225		16,145	22,369	14,752	433,172
Alternative revenue programs (3)	7,382		—		—	—	—	7,382
Derivative instruments	84,800		100	(4)	128,717	—	—	213,617
Eliminations (2)	—		—		3,742	—	—	3,742
Revenues out of scope	92,182		100		132,459	—	—	224,741
Total operating revenues	$	462,863	9,325		148,604	22,369	14,752	$	657,913
2023
Natural gas utility sales (1)	$	327,198	—		—	—	—	$	327,198
Natural gas services	—		—		16,836	20,887	—	37,723
Service contracts	—		—		—	—	8,739	8,739
Installations and maintenance	—		—		—	—	4,709	4,709
Renewable energy certificates	—		2,085		—	—	—	2,085
Electricity sales	—		6,084		—	—	—	6,084
Eliminations (2)	(338)		—		—	(1,584)	(183)	(2,105)
Revenues from contracts with customers	326,860		8,169		16,836	19,303	13,265	384,433
Alternative revenue programs (3)	27,270		—		—	—	—	27,270
Derivative instruments	46,370		6,237	(4)	179,894	—	—	232,501
Eliminations (2)	—		—		(177)	—	—	(177)
Revenues out of scope	73,640		6,237		179,717	—	—	259,594
Total operating revenues	$	400,500	14,406		196,553	19,303	13,265	$	644,027

(1)Includes building rent related to the Wall headquarters, which is eliminated in consolidation.

(2)Consists of transactions between subsidiaries that are eliminated in consolidation.

(3)Includes CIP revenue.

(4)Includes SREC revenue.

Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the six months ended March 31, 2024 and 2023, are as follows:

(Thousands)	NJNG		CEV		ES	S&T	HSO	Total
2024
Natural gas utility sales (1)	$	628,894	—		—	—	—	$	628,894
Natural gas services	—		—		32,413	46,904	—	79,317
Service contracts	—		—		—	—	18,011	18,011
Installations and maintenance	—		—		—	—	11,728	11,728
Renewable energy certificates	—		5,322		—	—	—	5,322
Electricity sales	—		13,267		—	—	—	13,267
Eliminations (2)	(675)		—		—	(1,348)	(153)	(2,176)
Revenues from contracts with customers	628,219		18,589		32,413	45,556	29,586	754,363
Alternative revenue programs (3)	4,845		—		—	—	—	4,845
Derivative instruments	122,892		26,031	(4)	212,117	—	—	361,040
Eliminations (2)	—		—		4,875	—	—	4,875
Revenues out of scope	127,737		26,031		216,992	—	—	370,760
Total operating revenues	$	755,956	44,620		249,405	45,556	29,586	$	1,125,123
2023
Natural gas utility sales (1)	$	615,365	—		—	—	—	$	615,365
Natural gas services	—		—		44,684	47,725	—	92,409
Service contracts	—		—		—	—	17,400	17,400
Installations and maintenance	—		—		—	—	10,314	10,314
Renewable energy certificates	—		3,287		—	—	—	3,287
Electricity sales	—		13,788		—	—	—	13,788
Eliminations (2)	(675)		—		—	(2,708)	(196)	(3,579)
Revenues from contracts with customers	614,690		17,075		44,684	45,017	27,518	748,984
Alternative revenue programs (3)	23,805		—		—	—	—	23,805
Derivative instruments	119,414		10,123	(4)	473,828	—	—	603,365
Eliminations (2)	—		—		(8,560)	—	—	(8,560)
Revenues out of scope	143,219		10,123		465,268	—	—	618,610
Total operating revenues	$	757,909	27,198		509,952	45,017	27,518	$	1,367,594

(1)Includes building rent related to the Wall headquarters, which is eliminated in consolidation.

(2)Consists of transactions between subsidiaries that are eliminated in consolidation.

(3)Includes CIP revenue.

(4)Includes SREC revenue.

Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the three months ended March 31, 2024 and 2023, are as follows:

(Thousands)	NJNG		CEV	ES	S&T	HSO	Total
2024
Residential	$	287,824	3,229	—	—	14,684	$	305,737
Commercial and industrial	50,362		5,996	16,145	22,369	68	94,940
Firm transportation	30,680		—	—	—	—	30,680
Interruptible, off-tariff and other	1,815		—	—	—	—	1,815
Revenues out of scope	92,182		100	132,459	—	—	224,741
Total operating revenues	$	462,863	9,325	148,604	22,369	14,752	$	657,913
2023
Residential	$	247,623	3,204	—	—	13,089	$	263,916
Commercial and industrial	49,105		4,965	16,836	19,303	176	90,385
Firm transportation	29,368		—	—	—	—	29,368
Interruptible, off-tariff and other	764		—	—	—	—	764
Revenues out of scope	73,640		6,237	179,717	—	—	259,594
Total operating revenues	$	400,500	14,406	196,553	19,303	13,265	$	644,027

Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the six months ended March 31, 2024 and 2023, are as follows:

(Thousands)	NJNG		CEV	ES	S&T	HSO	Total
2024
Residential	$	483,447	6,615	—	—	29,487	$	519,549
Commercial and industrial	86,121		11,974	32,413	45,556	99	176,163
Firm transportation	55,115		—	—	—	—	55,115
Interruptible, off-tariff and other	3,536		—	—	—	—	3,536
Revenues out of scope	127,737		26,031	216,992	—	—	370,760
Total operating revenues	$	755,956	44,620	249,405	45,556	29,586	$	1,125,123
2023
Residential	$	464,561	6,497	—	—	27,269	$	498,327
Commercial and industrial	92,900		10,578	44,684	45,017	249	193,428
Firm transportation	55,567		—	—	—	—	55,567
Interruptible, off-tariff and other	1,662		—	—	—	—	1,662
Revenues out of scope	143,219		10,123	465,268	—	—	618,610
Total operating revenues	$	757,909	27,198	509,952	45,017	27,518	$	1,367,594

Schedule of Expected Timing of Performance

The timing of revenue recognition, customer billings and cash collections resulting in accounts receivables, billed and unbilled, and customers’ credit balances and deposits on the Unaudited Condensed Consolidated Balance Sheets during the six months ended March 31, 2024 and 2023, are as follows:

	Customer Accounts Receivable				Customers' Credit
(Thousands)	Billed		Unbilled		Balances and Deposits
Balance as of September 30, 2023	$	97,540	$	19,100	$	44,910
Increase (decrease)	87,529		55,356		(20,032)
Balance as of March 31, 2024	$	185,069	$	74,456	$	24,878
Balance as of September 30, 2022	$	222,297	$	13,769	$	33,246
(Decrease) increase	(27,844)		32,271		(7,725)
Balance as of March 31, 2023	$	194,453	$	46,040	$	25,521

Schedule of Performance Obligation, in Excess of Billings

The following table provides information about receivables, which are included within accounts receivable, billed and unbilled, and customers’ credit balances and deposits, respectively, on the Unaudited Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023:

(Thousands)	NJNG		CEV	ES	S&T	HSO	Total
March 31, 2024
Customer accounts receivable
Billed	$	142,088	7,273	25,241	7,749	2,718	$	185,069
Unbilled	69,904		4,552	—	—	—	74,456
Customers' credit balances and deposits	(24,860)		—	—	(18)	—	(24,878)
Total	$	187,132	11,825	25,241	7,731	2,718	$	234,647
September 30, 2023
Customer accounts receivable
Billed	$	55,234	9,962	23,716	6,577	2,051	$	97,540
Unbilled	10,784		8,316	—	—	—	19,100
Customers' credit balances and deposits	(44,898)		—	—	(12)	—	(44,910)
Total	$	21,120	18,278	23,716	6,565	2,051	$	71,730

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REGULATION (Tables)

6 Months Ended

Mar. 31, 2024

Regulated Operations [Abstract]

Schedule of Regulatory Assets

Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for NJNG are comprised of the following:

(Thousands)	March 31, 2024		September 30, 2023
Regulatory assets-current
New Jersey Clean Energy Program	$	6,827	$	15,804
Conservation Incentive Program	55,200		50,356
Derivatives at fair value, net	30,444		6,017
Other current regulatory assets	1,416		1,410
Total current regulatory assets	$	93,887	$	73,587
Regulatory assets-noncurrent
Environmental remediation costs:
Expended, net of recoveries	$	69,229	$	66,298
Liability for future expenditures	157,813		169,390
Deferred income taxes	42,626		41,667
SAVEGREEN	88,496		83,589
Postemployment and other benefit costs	7,936		55,274
Cost of removal	118,900		112,362
Other noncurrent regulatory assets	44,943		51,019
Total noncurrent regulatory assets	$	529,943	$	579,599
Regulatory liability-current
Overrecovered natural gas costs	$	31,628	$	30,637
Total current regulatory liabilities	$	31,628	$	30,637
Regulatory liabilities-noncurrent
Tax Act impact (1)	$	177,838	$	180,347
Other noncurrent regulatory liabilities	438		111
Total noncurrent regulatory liabilities	$	178,276	$	180,458

(1)Reflects the re-measurement and subsequent amortization of NJNG's net deferred tax liabilities as a result of the change in federal tax rates enacted in the Tax Act. The Tax Act is an Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, previously known as The Tax Cuts and Jobs Act of 2017.

Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for Adelphia are comprised of the following:

(Thousands)	March 31, 2024		September 30, 2023
Total noncurrent regulatory assets	$	5,161	$	5,231
Total current regulatory liabilities	$	1,535	$	1,650

Schedule of Regulatory Liabilities

Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for NJNG are comprised of the following:

(Thousands)	March 31, 2024		September 30, 2023
Regulatory assets-current
New Jersey Clean Energy Program	$	6,827	$	15,804
Conservation Incentive Program	55,200		50,356
Derivatives at fair value, net	30,444		6,017
Other current regulatory assets	1,416		1,410
Total current regulatory assets	$	93,887	$	73,587
Regulatory assets-noncurrent
Environmental remediation costs:
Expended, net of recoveries	$	69,229	$	66,298
Liability for future expenditures	157,813		169,390
Deferred income taxes	42,626		41,667
SAVEGREEN	88,496		83,589
Postemployment and other benefit costs	7,936		55,274
Cost of removal	118,900		112,362
Other noncurrent regulatory assets	44,943		51,019
Total noncurrent regulatory assets	$	529,943	$	579,599
Regulatory liability-current
Overrecovered natural gas costs	$	31,628	$	30,637
Total current regulatory liabilities	$	31,628	$	30,637
Regulatory liabilities-noncurrent
Tax Act impact (1)	$	177,838	$	180,347
Other noncurrent regulatory liabilities	438		111
Total noncurrent regulatory liabilities	$	178,276	$	180,458

(1)Reflects the re-measurement and subsequent amortization of NJNG's net deferred tax liabilities as a result of the change in federal tax rates enacted in the Tax Act. The Tax Act is an Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, previously known as The Tax Cuts and Jobs Act of 2017.

Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for Adelphia are comprised of the following:

(Thousands)	March 31, 2024		September 30, 2023
Total noncurrent regulatory assets	$	5,161	$	5,231
Total current regulatory liabilities	$	1,535	$	1,650

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DERIVATIVE INSTRUMENTS (Tables)

6 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Assets and Liabilities

The following table presents the fair value of the Company's derivative assets and liabilities recognized on the Unaudited Condensed Consolidated Balance Sheets as of:

			Derivatives at Fair Value
			March 31, 2024						September 30, 2023
(Thousands)	Balance Sheet Location	Assets			Liabilities			Assets			Liabilities
Derivatives not designated as hedging instruments:
NJNG:
Physical commodity contracts	Derivatives - current		$	49		$	6		$	43		$	488
Financial commodity contracts	Derivatives - current		1,229			35			6,110			20
ES:
Physical commodity contracts	Derivatives - current		1,384			6,656			6,209			12,757
	Derivatives - noncurrent		678			13,014			802			7,870
Financial commodity contracts	Derivatives - current		11,394			4,028			18,393			2,880
	Derivatives - noncurrent		232			777			762			97
Total fair value of derivatives			$	14,966		$	24,516		$	32,319		$	24,112

Offsetting Assets

The following table summarizes the reported gross amounts, the amounts that the Company has the right to offset but elects not to, financial collateral and the net amounts the Company could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to.

	Asset Derivatives						Liability Derivatives
(Thousands)	Fair Value (1)		Amounts Offset (2)	Collateral Received/Pledged (3)	Net Value (4)		Fair Value (1)		Amounts Offset (2)	Collateral Received/Pledged (3)	Net Value (4)
As of March 31, 2024
ES Contracts
Physical commodity	$	2,062	(539)	—	$	1,523	$	19,670	(539)	(9,865)	$	9,266
Financial commodity	11,626		(4,805)	(6,206)	615		4,805		(4,805)	—	—
Total ES	$	13,688	(5,344)	(6,206)	$	2,138	$	24,475	(5,344)	(9,865)	$	9,266
NJNG Contracts
Physical commodity	$	49	(4)	—	$	45	$	6	(4)	—	$	2
Financial commodity	1,229		(35)	—	1,194		35		(35)	—	—
Total NJNG	$	1,278	(39)	—	$	1,239	$	41	(39)	—	$	2
As of September 30, 2023
ES Contracts
Physical commodity	$	7,011	(1,236)	—	$	5,775	$	20,627	(1,236)	(9,728)	$	9,663
Financial commodity	19,155		(2,977)	(16,178)	—		2,977		(2,977)	—	—
Total ES	$	26,166	(4,213)	(16,178)	$	5,775	$	23,604	(4,213)	(9,728)	$	9,663
NJNG Contracts
Physical commodity	$	43	(3)	—	$	40	$	488	(3)	—	$	485
Financial commodity	6,110		(20)	—	6,090		20		(20)	—	—
Total NJNG	$	6,153	(23)	—	$	6,130	$	508	(23)	—	$	485

(1)Derivative assets and liabilities are presented on a gross basis on the condensed consolidated balance sheets as the Company does not elect balance sheet offsetting under ASC 210-20.

(2)Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting.

(3)Financial collateral includes cash balances at FCMs as well as cash received from or pledged to other counterparties.

(4)Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.

Offsetting Liabilities

The following table summarizes the reported gross amounts, the amounts that the Company has the right to offset but elects not to, financial collateral and the net amounts the Company could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to.

	Asset Derivatives						Liability Derivatives
(Thousands)	Fair Value (1)		Amounts Offset (2)	Collateral Received/Pledged (3)	Net Value (4)		Fair Value (1)		Amounts Offset (2)	Collateral Received/Pledged (3)	Net Value (4)
As of March 31, 2024
ES Contracts
Physical commodity	$	2,062	(539)	—	$	1,523	$	19,670	(539)	(9,865)	$	9,266
Financial commodity	11,626		(4,805)	(6,206)	615		4,805		(4,805)	—	—
Total ES	$	13,688	(5,344)	(6,206)	$	2,138	$	24,475	(5,344)	(9,865)	$	9,266
NJNG Contracts
Physical commodity	$	49	(4)	—	$	45	$	6	(4)	—	$	2
Financial commodity	1,229		(35)	—	1,194		35		(35)	—	—
Total NJNG	$	1,278	(39)	—	$	1,239	$	41	(39)	—	$	2
As of September 30, 2023
ES Contracts
Physical commodity	$	7,011	(1,236)	—	$	5,775	$	20,627	(1,236)	(9,728)	$	9,663
Financial commodity	19,155		(2,977)	(16,178)	—		2,977		(2,977)	—	—
Total ES	$	26,166	(4,213)	(16,178)	$	5,775	$	23,604	(4,213)	(9,728)	$	9,663
NJNG Contracts
Physical commodity	$	43	(3)	—	$	40	$	488	(3)	—	$	485
Financial commodity	6,110		(20)	—	6,090		20		(20)	—	—
Total NJNG	$	6,153	(23)	—	$	6,130	$	508	(23)	—	$	485

(1)Derivative assets and liabilities are presented on a gross basis on the condensed consolidated balance sheets as the Company does not elect balance sheet offsetting under ASC 210-20.

(2)Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting.

(3)Financial collateral includes cash balances at FCMs as well as cash received from or pledged to other counterparties.

(4)Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.

Effect of Derivative Instruments on Consolidated Statements of Operations

The following table presents the effect of derivative instruments recognized on the Unaudited Condensed Consolidated Statements of Operations for the periods set forth below:

(Thousands)	Location of gain (loss) recognized in income on derivatives	Amount of gain (loss) recognized in income on derivatives
		Three Months Ended				Six Months Ended
		March 31,				March 31,
Derivatives not designated as hedging instruments:		2024		2023		2024		2023
ES:
Physical commodity contracts	Operating revenues	$	(3,651)	$	7,208	$	10,379	$	17,246
Physical commodity contracts	Natural gas purchases	(1,424)		(124)		(2,010)		(794)
Financial commodity contracts	Natural gas purchases	(2,459)		29,863		15,623		71,474
Total unrealized and realized (loss) gain		$	(7,534)	$	36,947	$	23,992	$	87,926

Effect of Derivative Instruments Designated as Cash Flow Hedges on OCI

The following table reflects the gains (losses) associated with NJNG's derivative instruments for the periods set forth below:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands)	2024		2023		2024		2023
NJNG:
Physical commodity contracts	$	(3,920)	$	(203)	$	(4,990)	$	(28,234)
Financial commodity contracts	(3,142)		(38,294)		1,190		(69,957)
Total unrealized and realized loss	$	(7,062)	$	(38,497)	$	(3,800)	$	(98,191)

Schedule of Outstanding Long (Short) Derivatives

NJNG and ES had the following outstanding long (short) derivatives as of:

	Natural Gas Distribution		Energy Services
Volumes (Bcf)	Futures	Physical Commodity	Futures	Physical Commodity
March 31, 2024	23.8	5.0	(3.8)	(3.2)
September 30, 2023	32.1	12.1	(6.9)	0.2

Schedule of Broker Margin Accounts by Company

The balances by reporting segment are as follows:

(Thousands)	Balance Sheet Location	March 31, 2024		September 30, 2023
NJNG	Restricted broker margin accounts-current assets	$	4,969	$	5,915
ES	Restricted broker margin accounts-current assets	$	14,341	$	14,881
	Restricted broker margin accounts-current liabilities	$	4,689	$	8,029

Summary of Gross Credit Exposures

The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of March 31, 2024. The amounts presented below have not been reduced by any collateral received or netting and exclude accounts receivable for NJNG retail natural gas sales and services and CEV residential solar installations.

(Thousands)	Gross Credit Exposure
Investment grade		$	113,150
Noninvestment grade		9,134
Internally rated investment grade		19,988
Internally rated noninvestment grade		22,477
Total		$	164,749

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FAIR VALUE (Tables)

6 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping

The estimated fair value of long-term debt, including current maturities, excluding natural gas meter finance arrangements, debt issuance costs and solar asset financing obligations, is as follows:

(Thousands)	March 31, 2024		September 30, 2023
Carrying value (1) (2)	$	2,567,845	$	2,587,845
Fair market value	$	2,218,977	$	2,106,536

(1)Excludes NJNG's debt issuance costs of $10.0M and $9.8M as of March 31, 2024 and September 30, 2023, respectively.

(2)Excludes NJR's debt issuance costs of $3.3M and $3.7M as of March 31, 2024 and September 30, 2023, respectively.

Schedule of Fair Value Hierarchy

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to inputs that are based on unobservable market data and includes the following:

Fair Value Hierarchy	Description of Fair Value Level	Fair Value Technique
Level 1	Unadjusted quoted prices for identical assets or liabilities in active markets	The Company’s Level 1 assets and liabilities include exchange-traded natural gas futures and options contracts, listed equities and money market funds. Exchange-traded futures and options contracts include all energy contracts traded on the NYMEX, CME and ICE that the Company refers to internally as basis swaps, fixed swaps, futures and financial options that are cleared through an FCM.
Level 2	Other significant observable inputs, such as interest rates or price data, including both commodity and basis pricing that is observed either directly or indirectly from publications or pricing services	The Company’s Level 2 assets and liabilities include over-the-counter physical forward commodity contracts and swap contracts, SREC forward sales or derivatives that are initially valued using observable quotes and are subsequently adjusted to include time value, credit risk or estimated transport pricing components for which no basis price is available. Level 2 financial derivatives consist of transactions with non-FCM counterparties (basis swaps, fixed swaps and/or options). Inputs are verifiable and do not require significant management judgment. For some physical commodity contracts, the Company utilizes transportation tariff rates that are publicly available and that it considers to be observable inputs that are equivalent to market data received from an independent source. There are no significant judgments or adjustments applied to the transportation tariff inputs and no market perspective is required. Even if the transportation tariff input were considered to be a “model,” it would still be considered to be a Level 2 input as the data is: •widely accepted and public; •non-proprietary and sourced from an independent third party; and •observable and published. These additional adjustments are generally not considered to be significant to the ultimate recognized values.
Level 3	Inputs derived from a significant amount of unobservable market data	These include the Company’s best estimate of fair value and are derived primarily through the use of internal valuation methodologies.

Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized as follows:

	Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
(Thousands)	(Level 1)			(Level 2)			(Level 3)			Total
As of March 31, 2024
Assets:
Physical commodity contracts		$	—		$	2,111		$	—	$	2,111
Financial commodity contracts		12,855			—			—		12,855
Money market funds		56			—			—		56
Other		2,954			—			—		2,954
Total assets at fair value		$	15,865		$	2,111		$	—	$	17,976
Liabilities:
Physical commodity contracts		$	—		$	19,676		$	—	$	19,676
Financial commodity contracts		4,840			—			—		4,840
Total liabilities at fair value		$	4,840		$	19,676		$	—	$	24,516

	Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
(Thousands)	(Level 1)			(Level 2)			(Level 3)			Total
As of September 30, 2023
Assets:
Physical commodity contracts		$	—		$	7,054		$	—	$	7,054
Financial commodity contracts		25,265			—			—		25,265
Money market funds		145			—			—		145
Other		2,641			—			—		2,641
Total assets at fair value		$	28,051		$	7,054		$	—	$	35,105
Liabilities:
Physical commodity contracts		$	—		$	21,115		$	—	$	21,115
Financial commodity contracts		2,997			—			—		2,997
Total liabilities at fair value		$	2,997		$	21,115		$	—	$	24,112

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EARNINGS PER SHARE (Tables)

6 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Basic and Diluted

The following table presents the calculation of the Company's basic and diluted earnings per share for:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands, except per share amounts)	2024		2023		2024		2023
Net income, as reported	$	120,812	$	110,247	$	210,223	$	226,168
Basic earnings per share
Weighted average shares of common stock outstanding-basic	98,377		96,893		98,123		96,689
Basic earnings per common share	$1.23		$1.14		$2.14		$2.34
Diluted earnings per share
Weighted average shares of common stock outstanding-basic	98,377		96,893		98,123		96,689
Incremental shares (1)	725		663		716		657
Weighted average shares of common stock outstanding-diluted	99,102		97,556		98,839		97,346
Diluted earnings per common share	$1.22		$1.13		$2.13		$2.32

(1)Incremental shares consist primarily of unvested stock awards and performance units, which are calculated using the treasury stock method.

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DEBT (Tables)

6 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Schedule of Line of Credit Facilities

A summary of NJR's credit facility and NJNG's commercial paper program and credit facility are as follows:

				At end of period
(Thousands)	As of date	Total borrowing capacity		Loans outstanding		Weighted average interest rate			Remaining borrowing capacity				Expiration dates
NJR bank revolving credit facilities (1)
March 31, 2024		$	650,000	$	146,150		6.52	%		$	494,519	(2)	September 2027
September 30, 2023		$	650,000	$	217,300		6.53	%		$	426,967	(2)	September 2027
NJNG bank revolving credit facilities (3)
March 31, 2024		$	250,000	$	50,000		5.48	%		$	199,269	(4)	September 2027
September 30, 2023		$	250,000	$	34,800		5.48	%		$	214,469	(4)	September 2027

(1)Committed credit facilities, which require commitment fees of 0.10% on the unused amounts.

(2)Letters of credit outstanding total $9.3M at March 31, 2024 and $5.7M at September 30, 2023, which reduces the amount available by the same amount.

(3)Committed credit facilities, which require commitment fees of 0.075% on the unused amounts.

(4)Letters of credit outstanding total $0.7M at both March 31, 2024 and September 30, 2023, which reduces the amount available by the same amount.

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EMPLOYEE BENEFIT PLANS (Tables)

6 Months Ended

Mar. 31, 2024

Retirement Benefits [Abstract]

Summary of Changes in Funded Status of Plans and Liabilities Recognized

The following summarizes the changes in the funded status of the plan and the related liabilities recognized on the Consolidated Balance Sheets:

	OPEB
(Thousands)	January 1, 2024		September 30, 2023
Change in Benefit Obligation
Benefit obligation at beginning of period	$	203,406	$	173,217
Service cost	642		2,471
Interest cost	2,902		9,146
Plan amendments	(81,283)		—
Plan participants’ contributions (1)	—		552
Actuarial loss	26,871		25,363
Benefits paid, net of retiree subsidies received	(1,614)		(7,343)
Benefit obligation at end of period	$	150,924	$	203,406
Change in plan assets
Fair value of plan assets at beginning of period	$	106,783	$	99,736
Actual return on plan assets	8,995		9,826
Employer contributions	3,181		4,192
Benefits paid, net of plan participants’ contributions (1)	(1,612)		(6,971)
Fair value of plan assets at end of period	$	117,347	$	106,783
Funded status	$	(33,577)	$	(96,623)
Amounts recognized on Consolidated Balance Sheets
Postemployment employee (liability)
Current	$	(1,613)	$	(4,201)
Noncurrent	(31,964)		(92,422)
Total	$	(33,577)	$	(96,623)

(1)Employees hired prior to July 1, 1998, were eligible to elect an additional participant contribution to enhance their benefits. Contributions made during the periods were immaterial.

Summary of Regulatory Assets and Accumulated Other Comprehensive Income (Loss)

The following table summarizes the amounts recognized in regulatory assets and accumulated other comprehensive income (loss):

	Regulatory Assets		Accumulated Other Comprehensive Income (Loss)
(Thousands)	OPEB
Balance at September 30, 2023	$	30,046	$	5,498
Amounts arising during the period:
Net actuarial loss	12,706		7,027
Prior service cost	(61,244)		(20,039)
Amounts amortized to net periodic costs:
Net actuarial loss	(355)		(141)
Balance at January 1, 2024	$	(18,847)	$	(7,655)

The amounts in regulatory assets and accumulated other comprehensive income (loss) not yet recognized as components of net periodic benefit cost were as follows:

	Regulatory Assets				Accumulated Other Comprehensive Income (Loss)
	OPEB
(Thousands)	January 1, 2024		September 30, 2023		January 1, 2024		September 30, 2023
Net actuarial loss	$	42,397	$	30,046	$	12,384	$	5,498
Prior service cost	(61,244)		—		(20,039)		—
Total	$	(18,847)	$	30,046	$	(7,655)	$	5,498

Components of Net Periodic Cost

The components of the net periodic cost for pension benefits, including the Company's Pension Equalization Plan, and OPEB costs (principally health care and life insurance) for employees and covered dependents were as follows:

	Pension								OPEB
	Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
	March 31,				March 31,				March 31,				March 31,
(Thousands)	2024		2023		2024		2023		2024		2023		2024		2023
Service cost	$	1,244	$	1,351	$	2,488	$	2,701	$	255	$	618	$	897	$	1,236
Interest cost	4,060		3,793		8,120		7,587		1,808		2,287		4,710		4,573
Expected return on plan assets	(5,086)		(4,993)		(10,173)		(9,986)		(2,020)		(1,681)		(3,878)		(3,361)
Recognized actuarial loss	30		75		59		150		1,255		—		1,751		—
Prior service cost (credit) amortization	15		26		31		51		(3,337)		—		(3,337)		—
Net periodic benefit cost	$	263	$	252	$	525	$	503	$	(2,039)	$	1,224	$	143	$	2,448

Schedule of Weighted Average Assumptions Used

The weighted average assumptions used to determine the Company’s obligations are as follows:

	OPEB
	January 1, 2024		September 30, 2023
Obligations:
Discount rate	5.02%/5.01%	(1)	5.97%/5.94%	(1)
Compensation increase	3.00%/3.50%	(1)	3.00%/3.50%	(1)

(1)Percentages for represented and non-represented plans, respectively.

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LEASES (Tables)

6 Months Ended

Mar. 31, 2024

Leases [Abstract]

Schedule of Lease, Cost

The following table presents the Company's lease costs included in the Unaudited Condensed Consolidated Statements of Operations:

		Three Months Ended				Six Months Ended
		March 31,				March 31,
(Thousands)	Income Statement Location	2024		2023		2024		2023
Operating lease cost (1)	Operation and maintenance	$	2,524	$	2,307	$	5,064	$	4,724
Finance lease cost
Amortization of right-of-use assets	Depreciation and amortization	552		540		1,080		1,025
Interest on lease liabilities	Interest expense, net of capitalized interest	236		298		488		533
Total finance lease cost		788		838		1,568		1,558
Variable lease cost	Operation and maintenance	246		272		446		495
Total lease cost		$	3,558	$	3,417	$	7,078	$	6,777

(1)Net of capitalized costs.

The following table presents supplemental cash flow information related to leases:

	Six Months Ended
	March 31,
(Thousands)	2024		2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	4,199	$	3,652
Operating cash flows for finance leases	$	488	$	533
Financing cash flows for finance leases	$	3,875	$	3,577

Schedule of Assets and Liabilities, Lessee

The following table presents the balance and classifications of the Company's right of use assets and lease liabilities included in the Unaudited Condensed Consolidated Balance Sheets:

(Thousands)	Balance Sheet Location	March 31, 2024		September 30, 2023
Assets
Noncurrent
Operating lease assets	Operating lease assets	$	177,176	$	175,740
Finance lease assets	Utility plant	27,168		28,248
Total lease assets		$	204,344	$	203,988
Liabilities
Current
Operating lease liabilities	Operating lease liabilities	$	4,780	$	4,772
Finance lease liabilities	Current maturities of long-term debt	8,816		8,477
Noncurrent
Operating lease liabilities	Operating lease liabilities	150,971		148,023
Finance lease liabilities	Long-term debt	18,661		22,875
Total lease liabilities		$	183,228	$	184,147

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COMMITMENTS AND CONTINGENT LIABILITIES (Tables)

6 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Long-term Purchase Commitment

Commitments as of March 31, 2024, for natural gas purchases and future demand fees for the next five fiscal year periods are as follows:

(Thousands)	2024		2025		2026		2027		2028		Thereafter
ES:
Natural gas purchases	$	11,801	$	1,964	$	—	$	—	$	—	$	—
Storage demand fees	8,685		15,743		11,413		5,440		3,491		6,780
Pipeline demand fees	31,418		55,870		42,117		25,837		15,301		17,011
Sub-total ES	$	51,904	$	73,577	$	53,530	$	31,277	$	18,792	$	23,791
NJNG:
Natural gas purchases	$	6,546	$	—	$	—	$	—	$	—	$	—
Storage demand fees	22,541		33,105		15,963		11,155		4,874		—
Pipeline demand fees	77,558		202,212		143,787		129,216		113,962		966,909
Sub-total NJNG	$	106,645	$	235,317	$	159,750	$	140,371	$	118,836	$	966,909
Total	$	158,549	$	308,894	$	213,280	$	171,648	$	137,628	$	990,700

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REPORTING SEGMENT AND OTHER OPERATIONS DATA (Tables)

6 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Information related to the Company's various reporting segments and other operations during the three months ended March 31, 2024 and 2023, are as follows:

	Segments
(Thousands)	NJNG		CEV	ES		S&T	Subtotal		HSO	Elims	Total
2024
Operating revenues
External customers	$	462,863	9,325	148,604	(1)	22,369	$	643,161	14,752	—	$	657,913
Intercompany	$	338	—	(3,742)		673	$	(2,731)	153	2,578	$	—
Depreciation and amortization	$	27,464	6,931	56	(2)	6,218	$	40,669	271	(865)	$	40,075
Interest income (3)	$	517	—	143		2,518	$	3,178	332	(1,474)	$	2,036
Interest expense, net of capitalized interest	$	14,850	7,182	3,513		5,868	$	31,413	208	—	$	31,621
Income tax provision (benefit)	$	24,476	(1,594)	5,289		619	$	28,790	520	4,637	$	33,947
Equity in earnings of affiliates	$	—	—	—		85	$	85	—	653	$	738
Net financial earnings (loss)	$	107,095	(5,616)	37,644		1,981	$	141,104	384	(2,912)	$	138,576
Capital expenditures	$	97,710	11,317	—		13,523	$	122,550	130	—	$	122,680
2023
Operating revenues
External customers	$	400,500	14,406	196,553	(1)	19,303	$	630,762	13,265	—	$	644,027
Intercompany	$	338	—	177		1,584	$	2,099	183	(2,282)	$	—
Depreciation and amortization	$	25,319	6,465	62	(2)	6,020	$	37,866	224	—	$	38,090
Interest income (3)	$	376	—	380		1,684	$	2,440	734	(938)	$	2,236
Interest expense, net of capitalized interest	$	13,879	7,316	2,749		6,128	$	30,072	189	—	$	30,261
Income tax provision (benefit)	$	23,924	(3,005)	5,916		596	$	27,431	488	2,667	$	30,586
Equity in earnings of affiliates	$	—	—	—		977	$	977	—	154	$	1,131
Net financial earnings (loss)	$	100,697	(9,379)	21,125		2,450	$	114,893	813	(3,396)	$	112,310
Capital expenditures	$	92,600	13,706	—		10,122	$	116,428	760	—	$	117,188

(1)Includes sales to Canada for the ES segment, which are immaterial.

(2)The amortization of acquired wholesale energy contracts is excluded above and is included in natural gas purchases - nonutility on the Unaudited Condensed Consolidated Statements of Operations.

(3)Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations.

Information related to the Company's various reporting segments and other operations during the six months ended March 31, 2024 and 2023, are as follows:

	Segments
(Thousands)	NJNG		CEV	ES		S&T	Subtotal		HSO	Elims	Total
2024
Operating revenues
External customers	$	755,956	44,620	249,405	(1)	45,556	$	1,095,537	29,586	—	$	1,125,123
Intercompany	$	675	—	(4,875)		1,348	$	(2,852)	153	2,699	$	—
Depreciation and amortization	$	54,381	13,853	113	(2)	12,380	$	80,727	500	(865)	$	80,362
Interest income (3)	$	1,095	—	271		4,888	$	6,254	688	(2,880)	$	4,062
Interest expense, net of capitalized interest	$	29,601	14,629	6,639		11,801	$	62,670	424	—	$	63,094
Income tax provision	$	35,132	1,537	12,800		1,651	$	51,120	468	5,295	$	56,883
Equity in earnings of affiliates	$	—	—	—		1,078	$	1,078	—	1,320	$	2,398
Net financial earnings (loss)	$	158,539	4,906	45,475		5,621	$	214,541	(216)	(3,305)	$	211,020
Capital expenditures	$	177,425	37,083	—		21,308	$	235,816	1,486	—	$	237,302
2023
Operating revenues
External customers	$	757,909	27,198	509,952	(1)	45,017	$	1,340,076	27,518	—	$	1,367,594
Intercompany	$	675	—	8,560		2,708	$	11,943	196	(12,139)	$	—
Depreciation and amortization	$	50,209	12,041	119	(2)	11,962	$	74,331	442	—	$	74,773
Interest income (3)	$	789	—	649		3,085	$	4,523	1,388	(1,716)	$	4,195
Interest expense, net of capitalized interest	$	27,588	13,211	5,807		12,835	$	59,441	311	—	$	59,752
Income tax provision (benefit)	$	38,307	(4,842)	25,980		2,539	$	61,984	705	875	$	63,564
Equity in earnings of affiliates	$	—	—	—		1,886	$	1,886	—	191	$	2,077
Net financial earnings (loss)	$	155,361	(12,961)	73,658		8,693	$	224,751	784	(2,941)	$	222,594
Capital expenditures	$	174,671	57,699	—		29,841	$	262,211	900	—	$	263,111

(1)Includes sales to Canada for the ES segment, which are immaterial.

(2)The amortization of acquired wholesale energy contracts is excluded above and is included in natural gas purchases - nonutility on the Unaudited Condensed Consolidated Statements of Operations.

(3)Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations.

Schedule of Assets for Business Segments and Business Operations

The Company's assets for the various reporting segments and business operations are detailed below:

	Segments								Intercompany
(Thousands)	NJNG		CEV	ES	S&T	Subtotal		HSO	Assets (1)	Total
March 31, 2024	$	4,527,458	1,124,392	104,094	1,012,899	$	6,768,843	171,594	(293,060)	$	6,647,377
September 30, 2023	$	4,414,829	1,128,577	123,775	1,011,959	$	6,679,140	171,275	(312,919)	$	6,537,496

(1)Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation.

Schedule of Reconciliation of Consolidated NFE to Consolidated Net Income

A reconciliation of consolidated NFE to consolidated net income is as follows:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands)	2024		2023		2024		2023
Net financial earnings	$	138,576	$	112,310	$	211,020	$	222,594
Less:
Unrealized loss (gain) on derivative instruments and related transactions	25,457		13,971		20,057		(17,532)
Tax effect	(6,049)		(3,320)		(4,767)		4,167
Effects of economic hedging related to natural gas inventory	(2,845)		(11,203)		(19,073)		12,769
Tax effect	676		2,662		4,533		(3,035)
Gain on equity method investment	—		(200)		—		(200)
Tax effect	—		50		—		50
NFE tax adjustment	525		103		47		207
Net income	$	120,812	$	110,247	$	210,223	$	226,168

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RELATED PARTY TRANSACTIONS (Tables)

6 Months Ended

Mar. 31, 2024

Related Party Transactions [Abstract]

Schedule of Demand Fees and Demand Fees Payable

Demand fees, net of eliminations, associated with Steckman Ridge were as follows:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(Thousands)	2024		2023		2024		2023
NJNG	$	1,585	$	1,615	$	3,240	$	3,270
ES	214		155		438		327
Total	$	1,799	$	1,770	$	3,678	$	3,597

The following table summarizes demand fees payable to Steckman Ridge as of:

(Thousands)	March 31, 2024		September 30, 2023
NJNG	$	778	$	775
ES	81		84
Total	$	859	$	859

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NATURE OF THE BUSINESS (Details)	6 Months Ended
	Mar. 31, 2024 subsidiary customer
Steckman Ridge
Nature of Business [Line Items]
Ownership percentage	50.00%
NJNG
Nature of Business [Line Items]
Total retail customers | customer	581,600
NJR Retail Holdings Corporation
Nature of Business [Line Items]
Number of principal subsidiaries | subsidiary	1

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ADDITIONAL INFORMATION (Details) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Jul. 31, 2021 Megawatt	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Sep. 30, 2023 USD ($)
Finite-Lived Intangible Assets [Line Items]
Number of megawatts | Megawatt	5
Operating revenues		$ 657,913	$ 644,027	$ 1,125,123	$ 1,367,594
Loans receivable in other noncurrent assets		43,600		43,600		$ 39,000
Financial Asset, Not Past Due
Finite-Lived Intangible Assets [Line Items]
Loans receivable in other current assets		15,800		$ 15,800		15,100
Minimum
Finite-Lived Intangible Assets [Line Items]
Loans receivable, term				2 years
Maximum
Finite-Lived Intangible Assets [Line Items]
Loans receivable, term				10 years
ES
Finite-Lived Intangible Assets [Line Items]
Operating revenues		9,500	$ 9,500	$ 19,000	$ 29,500
Deferred revenue		$ 107,200		$ 107,200		$ 58,700

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Sep. 30, 2023	Mar. 31, 2023	Sep. 30, 2022
Accounting Policies [Abstract]
Cash and cash equivalents	$ 5,036	$ 954	$ 27,095
Restricted cash in other noncurrent assets	710	563	461
Cash, cash equivalents and restricted cash	$ 5,746	$ 1,517	$ 27,556	$ 1,452

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - NATURAL GAS IN STORAGE (Details) $ in Thousands	Mar. 31, 2024 USD ($) Bcf	Sep. 30, 2023 USD ($) Bcf
Inventory [Line Items]
Natural Gas in Storage, value | $	$ 80,996	$ 199,501
Natural Gas in Storage, Bcf | Bcf	20,500,000	43,700,000
NJNG
Inventory [Line Items]
Natural Gas in Storage, value | $	$ 60,539	$ 175,025
Natural Gas in Storage, Bcf | Bcf	9,200,000	29,100,000
ES
Inventory [Line Items]
Natural Gas in Storage, value | $	$ 20,457	$ 24,476
Natural Gas in Storage, Bcf | Bcf	11,300,000	14,600,000

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SOFTWARE COSTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Sep. 30, 2023
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items]
Capitalized software costs	$ 9,734		$ 9,734		$ 8,375
Operation and maintenance
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items]
Software costs	2,674	$ 3,886	5,927	$ 7,638
Depreciation and amortization
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items]
Software costs	1,265	$ 957	2,254	$ 1,828
Utility plant, at cost
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items]
Software costs	88,234		88,234		51,282
Construction work in progress | Regulated
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items]
Software costs	45,573		45,573		55,012
Nonutility plant and equipment, at cost
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items]
Software costs	344		344		344
Accumulated depreciation and amortization, utility plant
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items]
Accumulated depreciation and amortization	(9,728)		(9,728)		(7,480)
Accumulated depreciation and amortization, nonutility plant and equipment
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items]
Accumulated depreciation and amortization	$ (42)		$ (42)		$ (36)

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2024	Mar. 31, 2023
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]
Balance as of beginning of period	$ 2,066,201	$ 1,990,735	$ 1,922,795	$ 1,817,210	$ 1,990,735	$ 1,817,210
Other comprehensive (loss) income, before reclassifications, net of tax	9,992				9,992
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	(106)		305		289	609
Other comprehensive income, net of tax	9,886	395	305	304	10,281	609
Balance as of end of period	2,179,225	2,066,201	2,000,836	1,922,795	2,179,225	2,000,836
Tax on other comprehensive income before reclassifications	(3,020)				(3,020)
Tax on amounts reclassified from accumulated other comprehensive income (loss)	32		(93)		(87)	(184)
Tax on net current-period other comprehensive income	(2,988)				(3,107)
Total
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]
Balance as of beginning of period	(9,564)	(9,959)	(4,522)	(4,826)	(9,959)	(4,826)
Other comprehensive income, net of tax	9,886	395	305	304
Balance as of end of period	322	(9,564)	(4,217)	(4,522)	322	(4,217)
Cash Flow Hedges
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]
Balance as of beginning of period	(7,005)	(7,269)	(8,059)	(8,322)	(7,269)	(8,322)
Other comprehensive (loss) income, before reclassifications, net of tax	0				0
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	262		264		526	527
Other comprehensive income, net of tax	262				526
Balance as of end of period	(6,743)	(7,005)	(7,795)	(8,059)	(6,743)	(7,795)
Tax on other comprehensive income before reclassifications	0				0
Tax on amounts reclassified from accumulated other comprehensive income (loss)	(80)		(80)		(159)	(159)
Tax on net current-period other comprehensive income	(80)				(159)
Postemployment Benefit Obligation
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]
Balance as of beginning of period	(2,559)	(2,690)	3,537	3,496	(2,690)	3,496
Other comprehensive (loss) income, before reclassifications, net of tax	9,992				9,992
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	(368)		41		(237)	82
Other comprehensive income, net of tax	9,624				9,755
Balance as of end of period	7,065	$ (2,559)	3,578	$ 3,537	7,065	3,578
Tax on other comprehensive income before reclassifications	(3,020)				(3,020)
Tax on amounts reclassified from accumulated other comprehensive income (loss)	112		$ (13)		72	$ (25)
Tax on net current-period other comprehensive income	$ (2,908)				$ (2,948)

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REVENUE - DISAGGREGATED REVENUE - PRODUCT (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	$ 433,172	$ 384,433	$ 754,363	$ 748,984
Alternative revenue programs	7,382	27,270	4,845	23,805
Derivative instruments	213,617	232,501	361,040	603,365
Revenues out of scope	224,741	259,594	370,760	618,610
Total operating revenues	657,913	644,027	1,125,123	1,367,594
Natural gas utility sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	371,019	327,198	628,894	615,365
Natural gas services
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	39,187	37,723	79,317	92,409
Service contracts
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	9,071	8,739	18,011	17,400
Installations and maintenance
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	5,834	4,709	11,728	10,314
Renewable energy certificates
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	2,672	2,085	5,322	3,287
Electricity sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	6,553	6,084	13,267	13,788
ES
Disaggregation of Revenue [Line Items]
Total operating revenues	9,500	9,500	19,000	29,500
Operating Segments
Disaggregation of Revenue [Line Items]
Total operating revenues	643,161	630,762	1,095,537	1,340,076
Operating Segments | NJNG
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	370,681	326,860	628,219	614,690
Alternative revenue programs	7,382	27,270	4,845	23,805
Derivative instruments	84,800	46,370	122,892	119,414
Revenues out of scope	92,182	73,640	127,737	143,219
Total operating revenues	462,863	400,500	755,956	757,909
Operating Segments | NJNG | Natural gas utility sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	371,019	327,198	628,894	615,365
Operating Segments | NJNG | Natural gas services
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | NJNG | Service contracts
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | NJNG | Installations and maintenance
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | NJNG | Renewable energy certificates
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | NJNG | Electricity sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | CEV
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	9,225	8,169	18,589	17,075
Alternative revenue programs	0	0	0	0
Derivative instruments	100	6,237	26,031	10,123
Revenues out of scope	100	6,237	26,031	10,123
Total operating revenues	9,325	14,406	44,620	27,198
Operating Segments | CEV | Natural gas utility sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | CEV | Natural gas services
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | CEV | Service contracts
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | CEV | Installations and maintenance
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | CEV | Renewable energy certificates
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	2,672	2,085	5,322	3,287
Operating Segments | CEV | Electricity sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	6,553	6,084	13,267	13,788
Operating Segments | ES
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	16,145	16,836	32,413	44,684
Alternative revenue programs	0	0	0	0
Derivative instruments	128,717	179,894	212,117	473,828
Revenues out of scope	132,459	179,717	216,992	465,268
Total operating revenues	148,604	196,553	249,405	509,952
Operating Segments | ES | Natural gas utility sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | ES | Natural gas services
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	16,145	16,836	32,413	44,684
Operating Segments | ES | Service contracts
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | ES | Installations and maintenance
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | ES | Renewable energy certificates
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | ES | Electricity sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | S&T
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	22,369	19,303	45,556	45,017
Alternative revenue programs	0	0	0	0
Derivative instruments	0	0	0	0
Revenues out of scope	0	0	0	0
Total operating revenues	22,369	19,303	45,556	45,017
Operating Segments | S&T | Natural gas utility sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | S&T | Natural gas services
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	23,042	20,887	46,904	47,725
Operating Segments | S&T | Service contracts
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | S&T | Installations and maintenance
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | S&T | Renewable energy certificates
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | S&T | Electricity sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Corporate, Non-Segment
Disaggregation of Revenue [Line Items]
Revenues out of scope	0	0	0	0
Total operating revenues	14,752	13,265	29,586	27,518
Corporate, Non-Segment | HSO
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	14,752	13,265	29,586	27,518
Alternative revenue programs	0	0	0	0
Derivative instruments	0	0	0	0
Revenues out of scope	0	0	0	0
Total operating revenues	14,752	13,265	29,586	27,518
Corporate, Non-Segment | HSO | Natural gas utility sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Corporate, Non-Segment | HSO | Natural gas services
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Corporate, Non-Segment | HSO | Service contracts
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	9,071	8,739	18,011	17,400
Corporate, Non-Segment | HSO | Installations and maintenance
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	5,834	4,709	11,728	10,314
Corporate, Non-Segment | HSO | Renewable energy certificates
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Corporate, Non-Segment | HSO | Electricity sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Eliminations
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	(1,164)	(2,105)	(2,176)	(3,579)
Revenues out of scope	3,742	(177)	4,875	(8,560)
Total operating revenues		(2,282)		(12,139)
Eliminations | NJNG
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	(338)	(338)	(675)	(675)
Revenues out of scope	0	0	0	0
Eliminations | CEV
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Revenues out of scope	0	0	0	0
Eliminations | ES
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Revenues out of scope	3,742	(177)	4,875	(8,560)
Eliminations | S&T
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	(673)	(1,584)	(1,348)	(2,708)
Revenues out of scope	0	0	0	0
Eliminations | HSO
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	(153)	(183)	(153)	(196)
Revenues out of scope	$ 0	$ 0	$ 0	$ 0

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REVENUE - DISAGGREGATED REVENUE - TYPE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	$ 433,172	$ 384,433	$ 754,363	$ 748,984
Revenues out of scope	224,741	259,594	370,760	618,610
Total operating revenues	657,913	644,027	1,125,123	1,367,594
Residential
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	305,737	263,916	519,549	498,327
Commercial and industrial
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	94,940	90,385	176,163	193,428
Firm transportation
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	30,680	29,368	55,115	55,567
Interruptible, off-tariff and other
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	1,815	764	3,536	1,662
Operating Segments
Disaggregation of Revenue [Line Items]
Total operating revenues	643,161	630,762	1,095,537	1,340,076
Corporate, Non-Segment
Disaggregation of Revenue [Line Items]
Revenues out of scope	0	0	0	0
Total operating revenues	14,752	13,265	29,586	27,518
Corporate, Non-Segment | Residential
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	14,684	13,089	29,487	27,269
Corporate, Non-Segment | Commercial and industrial
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	68	176	99	249
Corporate, Non-Segment | Firm transportation
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Corporate, Non-Segment | Interruptible, off-tariff and other
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
NJNG | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	370,681	326,860	628,219	614,690
Revenues out of scope	92,182	73,640	127,737	143,219
Total operating revenues	462,863	400,500	755,956	757,909
NJNG | Operating Segments | Residential
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	287,824	247,623	483,447	464,561
NJNG | Operating Segments | Commercial and industrial
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	50,362	49,105	86,121	92,900
NJNG | Operating Segments | Firm transportation
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	30,680	29,368	55,115	55,567
NJNG | Operating Segments | Interruptible, off-tariff and other
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	1,815	764	3,536	1,662
CEV | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	9,225	8,169	18,589	17,075
Revenues out of scope	100	6,237	26,031	10,123
Total operating revenues	9,325	14,406	44,620	27,198
CEV | Operating Segments | Residential
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	3,229	3,204	6,615	6,497
CEV | Operating Segments | Commercial and industrial
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	5,996	4,965	11,974	10,578
CEV | Operating Segments | Firm transportation
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
CEV | Operating Segments | Interruptible, off-tariff and other
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
ES
Disaggregation of Revenue [Line Items]
Total operating revenues	9,500	9,500	19,000	29,500
ES | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	16,145	16,836	32,413	44,684
Revenues out of scope	132,459	179,717	216,992	465,268
Total operating revenues	148,604	196,553	249,405	509,952
ES | Operating Segments | Residential
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
ES | Operating Segments | Commercial and industrial
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	16,145	16,836	32,413	44,684
ES | Operating Segments | Firm transportation
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
ES | Operating Segments | Interruptible, off-tariff and other
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
S&T | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	22,369	19,303	45,556	45,017
Revenues out of scope	0	0	0	0
Total operating revenues	22,369	19,303	45,556	45,017
S&T | Operating Segments | Residential
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
S&T | Operating Segments | Commercial and industrial
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	22,369	19,303	45,556	45,017
S&T | Operating Segments | Firm transportation
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
S&T | Operating Segments | Interruptible, off-tariff and other
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	$ 0	$ 0	$ 0	$ 0

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REVENUE - TIMING OF REVENUE RECOGNITION (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Timing of Revenue Recognition [Roll Forward]
Customers' credit, beginning	$ 44,910	$ 33,246
Increase (decrease) for customers' credits	(20,032)	(7,725)
Customers' credit, end	24,878	25,521
Billed
Timing of Revenue Recognition [Roll Forward]
Billed, beginning	97,540	222,297
Increase (decrease) for customer accounts receivable	87,529	(27,844)
Billed, end	185,069	194,453
Unbilled
Timing of Revenue Recognition [Roll Forward]
Billed, beginning	19,100	13,769
Increase (decrease) for customer accounts receivable	55,356	32,271
Billed, end	$ 74,456	$ 46,040

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REVENUE - TIMING OF REVENUE RECOGNITION - BALANCE SHEET (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Sep. 30, 2023	Mar. 31, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Billed	$ 185,069	$ 97,540
Unbilled	74,456	19,100
Customers' credit balances and deposits	(24,878)	(44,910)	$ (25,521)	$ (33,246)
Customers accounts receivables & Customers' credit balances and deposits	234,647	71,730
Operating Segments | NJNG
Disaggregation of Revenue [Line Items]
Billed	142,088	55,234
Unbilled	69,904	10,784
Customers' credit balances and deposits	(24,860)	(44,898)
Customers accounts receivables & Customers' credit balances and deposits	187,132	21,120
Operating Segments | CEV
Disaggregation of Revenue [Line Items]
Billed	7,273	9,962
Unbilled	4,552	8,316
Customers' credit balances and deposits	0	0
Customers accounts receivables & Customers' credit balances and deposits	11,825	18,278
Operating Segments | ES
Disaggregation of Revenue [Line Items]
Billed	25,241	23,716
Unbilled	0	0
Customers' credit balances and deposits	0	0
Customers accounts receivables & Customers' credit balances and deposits	25,241	23,716
Operating Segments | S&T
Disaggregation of Revenue [Line Items]
Billed	7,749	6,577
Unbilled	0	0
Customers' credit balances and deposits	(18)	(12)
Customers accounts receivables & Customers' credit balances and deposits	7,731	6,565
Corporate, Non-Segment
Disaggregation of Revenue [Line Items]
Billed	2,718	2,051
Unbilled	0	0
Customers' credit balances and deposits	0	0
Customers accounts receivables & Customers' credit balances and deposits	$ 2,718	$ 2,051

XML

REGULATION - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions						6 Months Ended
	Mar. 28, 2024	Mar. 20, 2024	Jan. 31, 2024	Dec. 01, 2023	Nov. 09, 2023	Mar. 31, 2024
Schedule of Regulatory Filings [Line Items]
Approved rate increase (decrease), amount					$ 76.9
NJNG
Schedule of Regulatory Filings [Line Items]
Approved rate increase (decrease), amount	$ 43.5
Base Rate Stipulation
Schedule of Regulatory Filings [Line Items]
Weighted average cost of capital						6.84%
Approved return on equity						9.60%
SAVEGREEN
Schedule of Regulatory Filings [Line Items]
Capital investments approved by the BPU				$ 245.1
Financing options				217.2
Operations and maintenance expense				$ 20.1
BPU | NJNG
Schedule of Regulatory Filings [Line Items]
Weighted average cost of capital			7.57%
Approved return on equity			10.42%
Approved rate increase (decrease), amount	$ 5.6		$ 222.6
RAC
Schedule of Regulatory Filings [Line Items]
Approved rate increase (decrease), amount		$ 2.4
NJCEP
Schedule of Regulatory Filings [Line Items]
Approved rate increase (decrease), amount		$ 5.5

XML

REGULATION - REGULATORY ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Sep. 30, 2023
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-current	$ 93,887	$ 73,587
Regulatory assets-noncurrent	535,104	584,830
Regulatory liability-current	33,163	32,287
Regulatory liabilities-noncurrent	178,276	180,458
Expended, net of recoveries
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-noncurrent	69,200
NJNG
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-current	93,887	73,587
Regulatory assets-noncurrent	529,943	579,599
Regulatory liability-current	31,628	30,637
Regulatory liabilities-noncurrent	178,276	180,458
NJNG | Overrecovered natural gas costs
Regulatory Assets And Liabilities [Line Items]
Regulatory liability-current	31,628	30,637
NJNG | Tax Act impact
Regulatory Assets And Liabilities [Line Items]
Regulatory liabilities-noncurrent	177,838	180,347
NJNG | Other noncurrent regulatory liabilities
Regulatory Assets And Liabilities [Line Items]
Regulatory liabilities-noncurrent	438	111
NJNG | New Jersey Clean Energy Program
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-current	6,827	15,804
NJNG | Conservation Incentive Program
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-current	55,200	50,356
NJNG | Derivatives at fair value, net
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-current	30,444	6,017
NJNG | Other current regulatory assets
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-current	1,416	1,410
Regulatory assets-noncurrent	44,943	51,019
NJNG | Expended, net of recoveries
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-noncurrent	69,229	66,298
NJNG | Liability for future expenditures
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-noncurrent	157,813	169,390
NJNG | Deferred income taxes
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-noncurrent	42,626	41,667
NJNG | SAVEGREEN
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-noncurrent	88,496	83,589
NJNG | Postemployment and other benefit costs
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-noncurrent	7,936	55,274
NJNG | Cost of removal
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-noncurrent	118,900	112,362
Adelphia
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-noncurrent	5,161	5,231
Regulatory liability-current	$ 1,535	$ 1,650

XML

DERIVATIVE INSTRUMENTS - BALANCE SHEET RELATED DISCLOSURES (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Sep. 30, 2023
Fair Value
Derivative assets, current	$ 14,056	$ 30,755
Derivative liability, current	10,725	16,145
Derivative assets, noncurrent	910	1,564
Derivative liabilities, noncurrent	13,791	7,967
Not Designated as Hedging Instrument
Fair Value
Derivative assets	14,966	32,319
Derivative liabilities	24,516	24,112
NJNG | Not Designated as Hedging Instrument | Physical commodity contracts
Fair Value
Derivative assets, current	49	43
Derivative liability, current	6	488
NJNG | Not Designated as Hedging Instrument | Financial commodity contracts
Fair Value
Derivative assets, current	1,229	6,110
Derivative liability, current	35	20
ES | Not Designated as Hedging Instrument | Physical commodity contracts
Fair Value
Derivative assets, current	1,384	6,209
Derivative liability, current	6,656	12,757
Derivative assets, noncurrent	678	802
Derivative liabilities, noncurrent	13,014	7,870
ES | Not Designated as Hedging Instrument | Financial commodity contracts
Fair Value
Derivative assets, current	11,394	18,393
Derivative liability, current	4,028	2,880
Derivative assets, noncurrent	232	762
Derivative liabilities, noncurrent	$ 777	$ 97

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DERIVATIVE INSTRUMENTS - OFFSETTING OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Sep. 30, 2023
ES
Asset Derivatives
Fair Value	$ 13,688	$ 26,166
Amounts Offset	(5,344)	(4,213)
Collateral Received/Pledged	(6,206)	(16,178)
Net Value	2,138	5,775
Liability Derivatives
Fair Value	24,475	23,604
Amounts Offset	(5,344)	(4,213)
Collateral Received/Pledged	(9,865)	(9,728)
Net Value	9,266	9,663
ES | Physical commodity contracts
Asset Derivatives
Fair Value	2,062	7,011
Amounts Offset	(539)	(1,236)
Collateral Received/Pledged	0	0
Net Value	1,523	5,775
Liability Derivatives
Fair Value	19,670	20,627
Amounts Offset	(539)	(1,236)
Collateral Received/Pledged	(9,865)	(9,728)
Net Value	9,266	9,663
ES | Financial commodity contracts
Asset Derivatives
Fair Value	11,626	19,155
Amounts Offset	(4,805)	(2,977)
Collateral Received/Pledged	(6,206)	(16,178)
Net Value	615	0
Liability Derivatives
Fair Value	4,805	2,977
Amounts Offset	(4,805)	(2,977)
Collateral Received/Pledged	0	0
Net Value	0	0
NJNG
Asset Derivatives
Fair Value	1,278	6,153
Amounts Offset	(39)	(23)
Collateral Received/Pledged	0	0
Net Value	1,239	6,130
Liability Derivatives
Fair Value	41	508
Amounts Offset	(39)	(23)
Collateral Received/Pledged	0	0
Net Value	2	485
NJNG | Physical commodity contracts
Asset Derivatives
Fair Value	49	43
Amounts Offset	(4)	(3)
Collateral Received/Pledged	0	0
Net Value	45	40
Liability Derivatives
Fair Value	6	488
Amounts Offset	(4)	(3)
Collateral Received/Pledged	0	0
Net Value	2	485
NJNG | Financial commodity contracts
Asset Derivatives
Fair Value	1,229	6,110
Amounts Offset	(35)	(20)
Collateral Received/Pledged	0	0
Net Value	1,194	6,090
Liability Derivatives
Fair Value	35	20
Amounts Offset	(35)	(20)
Collateral Received/Pledged	0	0
Net Value	$ 0	$ 0

XML

DERIVATIVE INSTRUMENTS - INCOME STATEMENT RELATED DISCLOSURES (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	$ (7,534)	$ 36,947	$ 23,992	$ 87,926
ES | Physical commodity contracts | Operating revenues
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Nonutility	Nonutility	Nonutility	Nonutility
Amount of gain (loss) recognized in income on derivatives	$ (3,651)	$ 7,208	$ 10,379	$ 17,246
ES | Physical commodity contracts | Natural gas purchases
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Gas purchases - Utility and Nonutility	Gas purchases - Utility and Nonutility	Gas purchases - Utility and Nonutility	Gas purchases - Utility and Nonutility
Amount of gain (loss) recognized in income on derivatives	$ (1,424)	$ (124)	$ (2,010)	$ (794)
ES | Financial commodity contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	(2,459)	29,863	15,623	71,474
NJNG
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	(7,062)	(38,497)	(3,800)	(98,191)
NJNG | Physical commodity contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	(3,920)	(203)	(4,990)	(28,234)
NJNG | Financial commodity contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	$ (3,142)	$ (38,294)	$ 1,190	$ (69,957)

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DERIVATIVE INSTRUMENTS - ADDITIONAL INFORMATION (Details) certificate in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2024 USD ($) certificate	Mar. 31, 2023 USD ($)	Mar. 31, 2024 USD ($) certificate	Mar. 31, 2023 USD ($)	Sep. 30, 2023 USD ($) certificate
Derivative [Line Items]
Derivative, net liability position, aggregate fair value	$ 1.4		$ 1.4		$ 0.1
Treasury Lock | Interest expense
Derivative [Line Items]
Amount of pre-tax gain (loss) reclassified from OCI into income	$ (0.3)	$ (0.3)	$ (0.7)	$ (0.7)
Physical commodity contracts | ES
Derivative [Line Items]
Number of SRECs (in certificates) | certificate	1.4		1.4		1.3

XML

DERIVATIVE INSTRUMENTS - VOLUME (Details) - Bcf	6 Months Ended	12 Months Ended
	Mar. 31, 2024	Sep. 30, 2023
NJNG | Long | Futures
Derivative [Line Items]
Notional amount	23.8	32.1
NJNG | Long | Physical Commodity
Derivative [Line Items]
Notional amount	5.0	12.1
ES | Long | Physical Commodity
Derivative [Line Items]
Notional amount		0.2
ES | Short | Futures
Derivative [Line Items]
Notional amount	(3.8)	(6.9)
ES | Short | Physical Commodity
Derivative [Line Items]
Notional amount	(3.2)

XML

DERIVATIVE INSTRUMENTS - BROKER MARGIN DEPOSITS (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Sep. 30, 2023
NJNG | Assets, Current
Derivative [Line Items]
Broker margin - current assets	$ 4,969	$ 5,915
ES | Assets, Current
Derivative [Line Items]
Broker margin - current assets	14,341	14,881
ES | Liabilities, Current
Derivative [Line Items]
Broker margin - Current liabilities	$ 4,689	$ 8,029

XML

DERIVATIVE INSTRUMENTS - CREDIT RISK EXPOSURE (Details) $ in Thousands	6 Months Ended
	Mar. 31, 2024 USD ($)
Credit Risk Exposure [Line Items]
Gross Credit Exposure	$ 164,749
Investment grade
Credit Risk Exposure [Line Items]
Gross Credit Exposure	113,150
Noninvestment grade
Credit Risk Exposure [Line Items]
Gross Credit Exposure	9,134
Internally rated investment grade
Credit Risk Exposure [Line Items]
Gross Credit Exposure	19,988
Internally rated noninvestment grade
Credit Risk Exposure [Line Items]
Gross Credit Exposure	$ 22,477

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FAIR VALUE - DEBT (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Sep. 30, 2023
NJR
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt issuance costs	$ 3,300	$ 3,700
NJNG
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt issuance costs	10,000	9,800
Level 2 | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	2,567,845	2,587,845
Level 2 | Fair market value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	$ 2,218,977	$ 2,106,536

XML

FAIR VALUE - ADDITIONAL INFORMATION (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Sep. 30, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance leases	$ 36,000	$ 31,400
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance leases	28,300	20,900
Fair market value | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	2,218,977	2,106,536
Solar Asset Financing
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	284,200	278,400
Solar Asset Financing | Fair market value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	$ 282,100	$ 268,100

XML

FAIR VALUE - HIERARCHY (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Sep. 30, 2023
Liabilities:
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Assets
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Liabilities and Equity
Fair Value, Measurements, Recurring
Assets:
Other	$ 2,954	$ 2,641
Total assets at fair value	17,976	35,105
Liabilities:
Total liabilities at fair value	24,516	24,112
Fair Value, Measurements, Recurring | Money market funds
Assets:
Assets	56	145
Fair Value, Measurements, Recurring | Physical commodity contracts
Assets:
Assets	2,111	7,054
Liabilities:
Liabilities	19,676	21,115
Fair Value, Measurements, Recurring | Financial commodity contracts
Assets:
Assets	12,855	25,265
Liabilities:
Liabilities	4,840	2,997
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1)
Assets:
Other	2,954	2,641
Total assets at fair value	15,865	28,051
Liabilities:
Total liabilities at fair value	4,840	2,997
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Money market funds
Assets:
Assets	56	145
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Physical commodity contracts
Assets:
Assets	0	0
Liabilities:
Liabilities	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Financial commodity contracts
Assets:
Assets	12,855	25,265
Liabilities:
Liabilities	4,840	2,997
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
Assets:
Other	0	0
Total assets at fair value	2,111	7,054
Liabilities:
Total liabilities at fair value	19,676	21,115
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Money market funds
Assets:
Assets	0	0
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Physical commodity contracts
Assets:
Assets	2,111	7,054
Liabilities:
Liabilities	19,676	21,115
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Financial commodity contracts
Assets:
Assets	0	0
Liabilities:
Liabilities	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3)
Assets:
Other	0	0
Total assets at fair value	0	0
Liabilities:
Total liabilities at fair value	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Money market funds
Assets:
Assets	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Physical commodity contracts
Assets:
Assets	0	0
Liabilities:
Liabilities	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Financial commodity contracts
Assets:
Assets	0	0
Liabilities:
Liabilities	$ 0	$ 0

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INVESTMENTS IN EQUITY INVESTEES (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Sep. 30, 2023
Schedule of Equity Method Investments [Line Items]
Investments in equity method investees	$ 101,778	$ 104,134
Steckman Ridge
Schedule of Equity Method Investments [Line Items]
Ownership percentage	50.00%
Investments in equity method investees	$ 101,800	104,100
Steckman Ridge | Related Party
Schedule of Equity Method Investments [Line Items]
Total outstanding principal balance of loans	$ 70,400	$ 70,400

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EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Net income	$ 120,812	$ 89,411	$ 110,247	$ 115,921	$ 210,223	$ 226,168
Basic earnings per share
Weighted average shares of common stock outstanding-basic (in shares)	98,377		96,893		98,123	96,689
Basic earnings per common share (usd per share)	$ 1.23		$ 1.14		$ 2.14	$ 2.34
Diluted earnings per share
Weighted average shares of common stock outstanding-basic (in shares)	98,377		96,893		98,123	96,689
Incremental shares (in shares)	725		663		716	657
Weighted average shares of common stock outstanding-diluted (in shares)	99,102		97,556		98,839	97,346
Diluted earnings per common share (usd per share)	$ 1.22		$ 1.13		$ 2.13	$ 2.32

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DEBT - CREDIT FACILITIES AND SHORT-TERM DEBT (Details) - USD ($)	6 Months Ended
	Mar. 31, 2024	Sep. 30, 2023
NJR | Letter of Credit on Behalf of NJRES
Line of Credit Facility [Line Items]
Letters of credit outstanding, amount	$ 9,300,000	$ 5,700,000
NJNG | Letter of Credit
Line of Credit Facility [Line Items]
Letters of credit outstanding, amount	$ 700,000	700,000
Revolving Credit Facility | NJR
Line of Credit Facility [Line Items]
Commitment fee percentage	0.10%
Revolving Credit Facility | NJNG
Line of Credit Facility [Line Items]
Commitment fee percentage	0.075%
Revolving Credit Facility | Committed Credit Facilities Due September 2027 | NJR
Line of Credit Facility [Line Items]
Total borrowing capacity	$ 650,000,000	650,000,000
Loans outstanding	$ 146,150,000	$ 217,300,000
Weighted average interest rate	6.52%	6.53%
Remaining borrowing capacity	$ 494,519,000	$ 426,967,000
Revolving Credit Facility | Committed Credit Facilities Due September 2027 | NJNG
Line of Credit Facility [Line Items]
Total borrowing capacity	250,000,000	250,000,000
Loans outstanding	$ 50,000,000	$ 34,800,000
Weighted average interest rate	5.48%	5.48%
Remaining borrowing capacity	$ 199,269,000	$ 214,469,000

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DEBT - LONG TERM DEBT (Details) - USD ($)	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Sep. 30, 2023
Debt Instrument [Line Items]
Proceeds from sale leaseback transactions - natural gas meters	$ 8,814,000	$ 8,441,000
Proceeds from sale leaseback transactions - solar	24,394,000	61,808,000
CEV
Debt Instrument [Line Items]
Proceeds from sale leaseback transactions - solar	24,400,000	61,800,000
NJNG
Debt Instrument [Line Items]
Proceeds from sale leaseback transactions - natural gas meters	$ 8,800,000	$ 8,400,000
NJNG | Senior Notes
Debt Instrument [Line Items]
Face amount			$ 100,000,000
NJNG | Senior Notes | Unsecured Senior Notes 5.56%
Debt Instrument [Line Items]
Face amount			$ 50,000,000
Stated interest rate			5.56%
NJNG | Senior Notes | Unsecured Senior Notes 5.85%
Debt Instrument [Line Items]
Face amount			$ 50,000,000
Stated interest rate			5.85%

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EMPLOYEE BENEFIT PLANS - ADDITIONAL INFORMATION (Details) - USD ($)	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Defined Benefit Plan Disclosure [Line Items]
Amortization period for plan amendment	8 years
Pension
Defined Benefit Plan Disclosure [Line Items]
Employer contributions	$ 0	$ 0

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EMPLOYEE BENEFIT PLANS - SUMMARY OF CHANGE IN FUNDED STATUS AND LIABILITIES (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
	Mar. 31, 2024	Jan. 02, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Sep. 30, 2023
Postemployment employee (liability)
Noncurrent	$ (42,333)			$ (42,333)		$ (102,528)
OPEB
Change in Benefit Obligation
Benefit obligation at beginning of period		$ 203,406		203,406	$ 173,217	173,217
Service cost	255	642	$ 618	897	1,236	2,471
Interest cost	$ 1,808	2,902	$ 2,287	4,710	4,573	9,146
Plan amendments		(81,283)				0
Plan participants’ contributions		0				552
Actuarial loss		26,871				25,363
Benefits paid, net of retiree subsidies received		(1,614)				(7,343)
Benefit obligation at end of period		150,924				203,406
Change in plan assets
Fair value of plan assets at beginning of period		106,783		$ 106,783	$ 99,736	99,736
Actual return on plan assets		8,995				9,826
Employer contributions		3,181				4,192
Benefits paid, net of plan participants’ contributions		(1,612)				(6,971)
Fair value of plan assets at end of period		117,347				106,783
Funded status		(33,577)				(96,623)
Postemployment employee (liability)
Current		(1,613)				(4,201)
Noncurrent		(31,964)				(92,422)
Total		$ (33,577)				$ (96,623)

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EMPLOYEE BENEFIT PLANS - REGULATORY ASSETS AND AOCI (Details) - OPEB - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Mar. 31, 2024	Jan. 02, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Jan. 01, 2024	Sep. 30, 2023
Amounts amortized to net periodic costs:
Net actuarial loss	$ (1,255)		$ 0	$ (1,751)	$ 0
Regulatory Assets
Regulatory Assets and Accumulated Other Comprehensive Income (Loss)
Regulatory Assets, Balance at beginning of period		$ 30,046		30,046
Net actuarial loss		12,706
Prior service cost		(61,244)				$ (61,244)	$ 0
Amounts amortized to net periodic costs:
Net actuarial loss		(355)
Regulatory Assets, Balance at end of period		(18,847)
Accumulated Other Comprehensive Income (Loss)
Regulatory Assets and Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss), Balance at beginning of period		5,498		$ 5,498
Net actuarial loss		7,027
Prior service cost		(20,039)				$ (20,039)	$ 0
Amounts amortized to net periodic costs:
Net actuarial loss		(141)
Accumulated Other Comprehensive Income (Loss), Balance at end of period		$ (7,655)

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EMPLOYEE BENEFIT PLANS - AMOUNTS NOT YET RECOGNIZED AS NET PERIODIC COST (Details) - OPEB - USD ($) $ in Thousands	Jan. 02, 2024	Jan. 01, 2024	Sep. 30, 2023
Regulatory Assets
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Net actuarial loss		$ 42,397	$ 30,046
Prior service cost	$ (61,244)	(61,244)	0
Regulatory Assets, Total	(18,847)	(18,847)	30,046
Accumulated Other Comprehensive Income (Loss)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Net actuarial loss		12,384	5,498
Prior service cost	(20,039)	(20,039)	0
Accumulated Other Comprehensive Income (Loss), Total	$ (7,655)	$ (7,655)	$ 5,498

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EMPLOYEE BENEFIT PLANS - COMPONENTS OF NET PERIODIC COST (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
	Mar. 31, 2024	Jan. 02, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Sep. 30, 2023
Pension
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	$ 1,244		$ 1,351	$ 2,488	$ 2,701
Interest cost	4,060		3,793	8,120	7,587
Expected return on plan assets	(5,086)		(4,993)	(10,173)	(9,986)
Recognized actuarial loss	30		75	59	150
Prior service cost (credit) amortization	15		26	31	51
Net periodic benefit cost	263		252	525	503
OPEB
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	255	$ 642	618	897	1,236	$ 2,471
Interest cost	1,808	$ 2,902	2,287	4,710	4,573	$ 9,146
Expected return on plan assets	(2,020)		(1,681)	(3,878)	(3,361)
Recognized actuarial loss	1,255		0	1,751	0
Prior service cost (credit) amortization	(3,337)		0	(3,337)	0
Net periodic benefit cost	$ (2,039)		$ 1,224	$ 143	$ 2,448

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EMPLOYEE BENEFIT PLANS - WEIGHTED AVERAGE ASSUMPTIONS (Details) - OPEB	Jan. 01, 2024	Sep. 30, 2023
Represented
Obligations:
Discount rate	5.02%	5.97%
Compensation increase	3.00%	3.00%
Nonrepresented
Obligations:
Discount rate	5.01%	5.94%
Compensation increase	3.50%	3.50%

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INCOME TAXES (Details) - USD ($) $ in Millions	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Sep. 30, 2023
Income Tax Contingency [Line Items]
Forecasted effective tax rate	21.70%	22.10%
Revaluation of deferred tax assets and liabilities	$ (1.2)	$ (0.6)
Actual effective tax rate	21.30%	21.90%
ITC carryforward	$ 179.5		$ 191.2
Effective term	20 years
Operating loss carryforward, valuation allowance	$ 0.7		0.7
State
Income Tax Contingency [Line Items]
Net operating loss carryforwards	$ 609.1		$ 631.2
State | Minimum
Income Tax Contingency [Line Items]
Effective term	7 years
State | Maximum
Income Tax Contingency [Line Items]
Effective term	20 years

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LEASES - ADDITIONAL INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Sep. 30, 2023	Jul. 31, 2021
Lessee, Lease, Description [Line Items]
ROU asset obtained in exchange for operating lease liability	$ 2,600	$ 300	$ 4,100	$ 400
Proceeds from sale leaseback transactions - natural gas meters			8,814	8,441
ROU asset obtained in exchange for finance lease liability	$ 0	$ 0	$ 0
Weighted average remaining lease term, operating lease	28 years 7 months 6 days		28 years 7 months 6 days		29 years 2 months 12 days
Operating lease, discount rate	3.60%		3.60%		3.50%
Weighted average remaining lease term, finance lease	3 years 4 months 24 days		3 years 4 months 24 days		3 years 3 months 18 days
Finance lease, discount rate	3.30%		3.30%		2.70%
NJNG
Lessee, Lease, Description [Line Items]
Proceeds from sale leaseback transactions - natural gas meters			$ 8,800	$ 8,400
Solar Property | Minimum
Lessee, Lease, Description [Line Items]
Term of contract	20 years		20 years
Renewal term	5 years		5 years
Solar Property | Maximum
Lessee, Lease, Description [Line Items]
Term of contract	50 years		50 years
Renewal term	20 years		20 years
Office Building
Lessee, Lease, Description [Line Items]
Term of contract						16 years
Office Building | Minimum
Lessee, Lease, Description [Line Items]
Term of contract	2 years		2 years
Office Building | Maximum
Lessee, Lease, Description [Line Items]
Term of contract	11 years		11 years
Meter License | Minimum
Lessee, Lease, Description [Line Items]
Term of contract	6 years		6 years
Meter License | Maximum
Lessee, Lease, Description [Line Items]
Term of contract	10 years		10 years
Equipment
Lessee, Lease, Description [Line Items]
Term of contract	9 years		9 years
Storage and Capacity
Lessee, Lease, Description [Line Items]
Term of contract	50 years		50 years

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LEASES - LEASE COST (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Operating lease cost	$ 2,524	$ 2,307	$ 5,064	$ 4,724
Amortization of right-of-use assets	552	540	1,080	1,025
Interest on lease liabilities	236	298	488	533
Total finance lease cost	788	838	1,568	1,558
Variable lease cost	246	272	446	495
Total lease cost	$ 3,558	$ 3,417	$ 7,078	$ 6,777

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LEASES - SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Operating cash flows for operating leases	$ 4,199	$ 3,652
Operating cash flows for finance leases	488	533
Financing cash flows for finance leases	$ 3,875	$ 3,577

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LEASES - RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Sep. 30, 2023
Noncurrent
Operating lease assets	$ 177,176	$ 175,740
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Utility plant, at cost	Utility plant, at cost
Finance lease assets	$ 27,168	$ 28,248
Total lease assets	204,344	203,988
Current
Operating lease liabilities	$ 4,780	$ 4,772
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Current maturities of long-term debt	Current maturities of long-term debt
Finance lease liabilities	$ 8,816	$ 8,477
Noncurrent
Operating lease liabilities	$ 150,971	$ 148,023
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Long-term debt	Long-term debt
Finance lease liabilities	$ 18,661	$ 22,875
Total lease liabilities	$ 183,228	$ 184,147

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COMMITMENTS AND CONTINGENT LIABILITIES - SCHEDULE OF FUTURE COMMITTED EXPENSES (Details) $ in Thousands	6 Months Ended
	Mar. 31, 2024 USD ($)
Long-term Purchase Commitment [Line Items]
Current charges recoverable through BGSS	$ 227,100
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2024	158,549
2025	308,894
2026	213,280
2027	171,648
2028	137,628
Thereafter	990,700
ES
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2024	51,904
2025	73,577
2026	53,530
2027	31,277
2028	18,792
Thereafter	23,791
ES | Natural gas purchases
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2024	11,801
2025	1,964
2026	0
2027	0
2028	0
Thereafter	0
ES | Storage demand fees
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2024	8,685
2025	15,743
2026	11,413
2027	5,440
2028	3,491
Thereafter	6,780
ES | Pipeline demand fees
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2024	31,418
2025	55,870
2026	42,117
2027	25,837
2028	15,301
Thereafter	17,011
Annual pipeline obligation to be paid over 10 year period	4,000
NJNG
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2024	106,645
2025	235,317
2026	159,750
2027	140,371
2028	118,836
Thereafter	966,909
NJNG | Natural gas purchases
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2024	6,546
2025	0
2026	0
2027	0
2028	0
Thereafter	0
NJNG | Storage demand fees
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2024	22,541
2025	33,105
2026	15,963
2027	11,155
2028	4,874
Thereafter	0
NJNG | Pipeline demand fees
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2024	77,558
2025	202,212
2026	143,787
2027	129,216
2028	113,962
Thereafter	$ 966,909
Minimum | ES
Long-term Purchase Commitment [Line Items]
Storage and pipeline capacity, contract term	1 year
Maximum | ES
Long-term Purchase Commitment [Line Items]
Storage and pipeline capacity, contract term	10 years

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COMMITMENTS AND CONTINGENT LIABILITIES - LEGAL PROCEEDINGS (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2024	Sep. 30, 2023
Site Contingency [Line Items]
Manufactured gas plant remediation	$ 157,813	$ 169,390
Recovery from third party of environmental remediation cost, period	7 years
Regulatory assets	$ 535,104	$ 584,830
Expended, net of recoveries
Site Contingency [Line Items]
Regulatory assets	69,200
Minimum
Site Contingency [Line Items]
Product liability contingency, loss exposure in excess of accrual, best estimate	137,300
Maximum
Site Contingency [Line Items]
Product liability contingency, loss exposure in excess of accrual, best estimate	$ 201,500

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REPORTING SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT INCOME TO CONSOLIDATED (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Operating revenues	$ 657,913	$ 644,027	$ 1,125,123	$ 1,367,594
Depreciation and amortization	40,075	38,090	80,362	74,773
Interest income	2,036	2,236	4,062	4,195
Interest expense, net of capitalized interest	31,621	30,261	63,094	59,752
Income tax provision (benefit)	33,947	30,586	56,883	63,564
Equity in earnings of affiliates	738	1,131	2,398	2,077
Net financial earnings (loss)	138,576	112,310	211,020	222,594
Capital expenditures	122,680	117,188	237,302	263,111
ES
Segment Reporting Information [Line Items]
Operating revenues	9,500	9,500	19,000	29,500
Operating Segments
Segment Reporting Information [Line Items]
Operating revenues	643,161	630,762	1,095,537	1,340,076
Depreciation and amortization	40,669	37,866	80,727	74,331
Interest income	3,178	2,440	6,254	4,523
Interest expense, net of capitalized interest	31,413	30,072	62,670	59,441
Income tax provision (benefit)	28,790	27,431	51,120	61,984
Equity in earnings of affiliates	85	977	1,078	1,886
Net financial earnings (loss)	141,104	114,893	214,541	224,751
Capital expenditures	122,550	116,428	235,816	262,211
Operating Segments | NJNG
Segment Reporting Information [Line Items]
Operating revenues	462,863	400,500	755,956	757,909
Depreciation and amortization	27,464	25,319	54,381	50,209
Interest income	517	376	1,095	789
Interest expense, net of capitalized interest	14,850	13,879	29,601	27,588
Income tax provision (benefit)	24,476	23,924	35,132	38,307
Equity in earnings of affiliates	0	0	0	0
Net financial earnings (loss)	107,095	100,697	158,539	155,361
Capital expenditures	97,710	92,600	177,425	174,671
Operating Segments | CEV
Segment Reporting Information [Line Items]
Operating revenues	9,325	14,406	44,620	27,198
Depreciation and amortization	6,931	6,465	13,853	12,041
Interest income	0	0	0	0
Interest expense, net of capitalized interest	7,182	7,316	14,629	13,211
Income tax provision (benefit)	(1,594)	(3,005)	1,537	(4,842)
Equity in earnings of affiliates	0	0	0	0
Net financial earnings (loss)	(5,616)	(9,379)	4,906	(12,961)
Capital expenditures	11,317	13,706	37,083	57,699
Operating Segments | ES
Segment Reporting Information [Line Items]
Operating revenues	148,604	196,553	249,405	509,952
Depreciation and amortization	56	62	113	119
Interest income	143	380	271	649
Interest expense, net of capitalized interest	3,513	2,749	6,639	5,807
Income tax provision (benefit)	5,289	5,916	12,800	25,980
Equity in earnings of affiliates	0	0	0	0
Net financial earnings (loss)	37,644	21,125	45,475	73,658
Capital expenditures	0	0	0	0
Operating Segments | S&T
Segment Reporting Information [Line Items]
Operating revenues	22,369	19,303	45,556	45,017
Depreciation and amortization	6,218	6,020	12,380	11,962
Interest income	2,518	1,684	4,888	3,085
Interest expense, net of capitalized interest	5,868	6,128	11,801	12,835
Income tax provision (benefit)	619	596	1,651	2,539
Equity in earnings of affiliates	85	977	1,078	1,886
Net financial earnings (loss)	1,981	2,450	5,621	8,693
Capital expenditures	13,523	10,122	21,308	29,841
Intersegment Eliminations
Segment Reporting Information [Line Items]
Operating revenues	(2,731)	2,099	(2,852)	11,943
Intersegment Eliminations | NJNG
Segment Reporting Information [Line Items]
Operating revenues	338	338	675	675
Intersegment Eliminations | CEV
Segment Reporting Information [Line Items]
Operating revenues	0	0	0	0
Intersegment Eliminations | ES
Segment Reporting Information [Line Items]
Operating revenues	(3,742)	177	(4,875)	8,560
Intersegment Eliminations | S&T
Segment Reporting Information [Line Items]
Operating revenues	673	1,584	1,348	2,708
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Operating revenues	14,752	13,265	29,586	27,518
Depreciation and amortization	271	224	500	442
Interest income	332	734	688	1,388
Interest expense, net of capitalized interest	208	189	424	311
Income tax provision (benefit)	520	488	468	705
Equity in earnings of affiliates	0	0	0	0
Net financial earnings (loss)	384	813	(216)	784
Capital expenditures	130	760	1,486	900
Corporate Reconciling Items And Eliminations
Segment Reporting Information [Line Items]
Operating revenues	153	183	153	196
Eliminations
Segment Reporting Information [Line Items]
Operating revenues		(2,282)		(12,139)
Depreciation and amortization	(865)	0	(865)	0
Interest income	(1,474)	(938)	(2,880)	(1,716)
Interest expense, net of capitalized interest	0	0	0	0
Income tax provision (benefit)	4,637	2,667	5,295	875
Equity in earnings of affiliates	653	154	1,320	191
Net financial earnings (loss)	(2,912)	(3,396)	(3,305)	(2,941)
Capital expenditures	0	$ 0	0	$ 0
Eliminations And Reconciling Items
Segment Reporting Information [Line Items]
Operating revenues	$ 2,578		$ 2,699

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REPORTING SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT ASSETS TO CONSOLIDATED (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Sep. 30, 2023
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ 6,647,377	$ 6,537,496
Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	6,768,843	6,679,140
Operating Segments | NJNG
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	4,527,458	4,414,829
Operating Segments | CEV
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	1,124,392	1,128,577
Operating Segments | ES
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	104,094	123,775
Operating Segments | S&T
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	1,012,899	1,011,959
Corporate, Non-Segment
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	171,594	171,275
Intercompany Assets
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ (293,060)	$ (312,919)

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REPORTING SEGMENT AND OTHER OPERATIONS DATA - NET FINANCIAL EARNINGS (LOSS) RECONCILIATION (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting [Abstract]
Net financial earnings	$ 138,576		$ 112,310		$ 211,020	$ 222,594
Less:
Unrealized loss (gain) on derivative instruments and related transactions	25,457		13,971		20,057	(17,532)
Tax effect	(6,049)		(3,320)		(4,767)	4,167
Effects of economic hedging related to natural gas inventory	(2,845)		(11,203)		(19,073)	12,769
Tax effect	676		2,662		4,533	(3,035)
Gain on equity method investment	0		(200)		0	(200)
Tax effect	0		50		0	50
NFE tax adjustment	525		103		47	207
NET INCOME	$ 120,812	$ 89,411	$ 110,247	$ 115,921	$ 210,223	$ 226,168

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RELATED PARTY TRANSACTIONS - ADDITIONAL INFORMATION (Details) $ in Millions		6 Months Ended
	Apr. 01, 2020 USD ($) Bcf	Mar. 31, 2024 dth / d numberOfAgreement agreement Bcf
Related Party Transaction [Line Items]
Number of asset management agreements | agreement		1
NJNG to NJRES Affiliate
Related Party Transaction [Line Items]
Asset management agreement, period	5 years
NJNG to Steckman RIdge Affiliate
Related Party Transaction [Line Items]
Natural gas sold at cost under asset management agreement (in Bcf) | Bcf	3
Approximate annual demand fees under agreement | $	$ 9.3
NJNG to Adelphia Affiliate
Related Party Transaction [Line Items]
Number of transportation agreements | numberOfAgreement		2
NJNG to Adelphia Affiliate | Transportation Precedent Agreement One
Related Party Transaction [Line Items]
Transportation capacity under precedent agreement (in bcf per day) | dth / d		130,000
Transportation precedent agreement term		5 years
NJNG to Adelphia Affiliate | Transportation Precedent Agreement Two
Related Party Transaction [Line Items]
Transportation capacity under precedent agreement (in bcf per day) | dth / d		130,000
Transportation precedent agreement term		15 years
Leaf River Energy Center LLC
Related Party Transaction [Line Items]
Natural gas sold at cost under asset management agreement (in Bcf) | Bcf		3
Storage capacity agreement term		5 years
NJNG and Clean Energy Ventures to PPA | Sublease Agreement One
Related Party Transaction [Line Items]
Sublease agreement term		15 years
NJNG and Clean Energy Ventures to PPA | Sublease Agreement Two
Related Party Transaction [Line Items]
Sublease agreement term		20 years
NJNG To NJR Subsidiaries
Related Party Transaction [Line Items]
Term of contract		16 years

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RELATED PARTY TRANSACTIONS - DEMAND FEES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Sep. 30, 2023
Related Party Transaction [Line Items]
Demand fees payable	$ 859		$ 859		$ 859
Related Party
Related Party Transaction [Line Items]
Demand fees expense recognized pertaining to related party agreement	1,799	$ 1,770	3,678	$ 3,597
Demand fees payable	859		859		859
Related Party | NJNG to Steckman RIdge Affiliate
Related Party Transaction [Line Items]
Demand fees expense recognized pertaining to related party agreement	1,585	1,615	3,240	3,270
Demand fees payable	778		778		775
Related Party | NJRES to Steckman Ridge Affiliate
Related Party Transaction [Line Items]
Demand fees expense recognized pertaining to related party agreement	214	$ 155	438	$ 327
Demand fees payable	$ 81		$ 81		$ 84