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DERIVATIVE INSTRUMENTS (Tables)
 3 Months Ended
Dec. 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
December 31, 2024September 30, 2024
(Thousands)Balance Sheet LocationAssetsLiabilitiesAssetsLiabilities
Derivatives not designated as hedging instruments:
NJNG:
Physical commodity contractsDerivatives - current$159 $728 $21 $579 
Financial commodity contractsDerivatives - current10 2,327 — 2 
ES:
Physical commodity contractsDerivatives - current2,079 7,049 1,660 4,346 
Derivatives - noncurrent1,602 12,052 727 10,758 
Financial commodity contractsDerivatives - current2,825 3,359 5,132 1,344 
Derivatives - noncurrent270 269 79 732 
Total fair value of derivatives$6,945 $25,784 $7,619 $17,761 
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 DerivativesLiability 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 December 31, 2024
ES Contracts
Physical commodity$3,681 (444)— $3,237 $19,101 (444)(6,043)$12,614 
Financial commodity3,095 (3,095)— — 3,628 (3,095)(533)— 
Total ES$6,776 (3,539)— $3,237 $22,729 (3,539)(6,576)$12,614 
NJNG Contracts
Physical commodity$159 — — $159 $728 — — $728 
Financial commodity10 (10)— — 2,327 (10)— 2,317 
Total NJNG$169 (10)— $159 $3,055 (10)— $3,045 
As of September 30, 2024
ES Contracts
Physical commodity$2,387 (535)— $1,852 $15,104 (535)(5,551)$9,018 
Financial commodity5,211 (2,076)(1,170)1,965 2,076 (2,076)— — 
Total ES$7,598 (2,611)(1,170)$3,817 $17,180 (2,611)(5,551)$9,018 
NJNG Contracts
Physical commodity$21 (13)— $8 $579 (13)— $566 
Financial commodity— — — — 2 — (2)— 
Total NJNG$21 (13)— $8 $581 (13)(2)$566 
(1)Derivative assets and liabilities are presented on a gross basis on the Unaudited 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 DerivativesLiability 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 December 31, 2024
ES Contracts
Physical commodity$3,681 (444)— $3,237 $19,101 (444)(6,043)$12,614 
Financial commodity3,095 (3,095)— — 3,628 (3,095)(533)— 
Total ES$6,776 (3,539)— $3,237 $22,729 (3,539)(6,576)$12,614 
NJNG Contracts
Physical commodity$159 — — $159 $728 — — $728 
Financial commodity10 (10)— — 2,327 (10)— 2,317 
Total NJNG$169 (10)— $159 $3,055 (10)— $3,045 
As of September 30, 2024
ES Contracts
Physical commodity$2,387 (535)— $1,852 $15,104 (535)(5,551)$9,018 
Financial commodity5,211 (2,076)(1,170)1,965 2,076 (2,076)— — 
Total ES$7,598 (2,611)(1,170)$3,817 $17,180 (2,611)(5,551)$9,018 
NJNG Contracts
Physical commodity$21 (13)— $8 $579 (13)— $566 
Financial commodity— — — — 2 — (2)— 
Total NJNG$21 (13)— $8 $581 (13)(2)$566 
(1)Derivative assets and liabilities are presented on a gross basis on the Unaudited Condensed Consolidated Balance Sheets as the Company does not elect balance sheet offsetting under ASC 210-20.
(2)Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting.
(3)Financial collateral includes cash balances at FCMs as well as cash received from or pledged to other counterparties.
(4)Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.
Effect of Derivative Instruments on Consolidated Statements of Operations
The following table presents the effect of derivative instruments recognized on the Unaudited Condensed Consolidated Statements of Operations for the periods set forth below:
(Thousands)Location of gain (loss) recognized in income on derivativesAmount of gain (loss) recognized
in income on derivatives
Three Months Ended
December 31,
Derivatives not designated as hedging instruments:20242023
ES:
Physical commodity contractsOperating revenues$(2,632)$14,030 
Physical commodity contractsNatural gas purchases(1,752)(586)
Financial commodity contractsNatural gas purchases1,538 18,082 
Physical commodity contractsOperation and maintenance1,053 — 
Total unrealized and realized (loss) gain$(1,793)$31,526 
Effect of Derivative Instruments Designated as Cash Flow Hedges on OCI The following table reflects the gains (losses) associated with NJNG's derivative instruments for the periods set forth below:
Three Months Ended
December 31,
(Thousands)20242023
NJNG:
Physical commodity contracts$(13,386)$(1,070)
Financial commodity contracts5,939 4,332 
Total unrealized and realized (loss) gain$(7,447)$3,262 
Schedule of Outstanding Long (Short) Derivatives
NJNG and ES had the following outstanding long (short) derivatives as of:
Natural Gas DistributionEnergy Services
Volumes (Bcf)FuturesPhysical CommodityFuturesPhysical Commodity
December 31, 202426.64.9(7.7)(0.3)
September 30, 202431.910.9(7.7)2.8
Schedule of Broker Margin Accounts by Company
The balances by reporting segment are as follows:
(Thousands)Balance Sheet LocationDecember 31,
2024		September 30,
2024
NJNGRestricted broker margin accounts-current assets$10,761 $4,975 
ESRestricted broker margin accounts-current assets$12,242 $8,268 
Restricted broker margin accounts-current liabilities$— $1,146 
Summary of Gross Credit Exposures
The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of December 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.
(Thousands)Gross Credit Exposure
Investment grade$133,065 
Noninvestment grade23,522 
Internally rated investment grade17,276 
Internally rated noninvestment grade23,005 
Total$196,868