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DERIVATIVE INSTRUMENTS (Tables)
 6 Months Ended
Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of 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, 2025September 30, 2024
(Thousands)Balance Sheet LocationAssetsLiabilitiesAssetsLiabilities
Derivatives not designated as hedging instruments:
NJNG:
Physical commodity contractsDerivatives - current$88 $41 $21 $579 
Financial commodity contractsDerivatives - current61 — — 2 
ES:
Physical commodity contractsDerivatives - current2,081 7,585 1,660 4,346 
Derivatives - noncurrent27,839 2,858 727 10,758 
Financial commodity contractsDerivatives - current3,790 12,359 5,132 1,344 
Derivatives - noncurrent1,012 653 79 732 
Total fair value of derivatives$34,871 $23,496 $7,619 $17,761 
Schedule of 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 March 31, 2025
ES Contracts
Physical commodity$29,920 (6,699)— $23,221 $10,443 (6,699)— $3,744 
Financial commodity4,802 (4,802)— — 13,012 (4,802)(8,210)— 
Total ES$34,722 (11,501)— $23,221 $23,455 (11,501)(8,210)$3,744 
NJNG Contracts
Physical commodity$88 (12)— $76 $41 (12)— $29 
Financial commodity61 — (61)— — — — — 
Total NJNG$149 (12)(61)$76 $41 (12)— $29 
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.
Schedule of 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 March 31, 2025
ES Contracts
Physical commodity$29,920 (6,699)— $23,221 $10,443 (6,699)— $3,744 
Financial commodity4,802 (4,802)— — 13,012 (4,802)(8,210)— 
Total ES$34,722 (11,501)— $23,221 $23,455 (11,501)(8,210)$3,744 
NJNG Contracts
Physical commodity$88 (12)— $76 $41 (12)— $29 
Financial commodity61 — (61)— — — — — 
Total NJNG$149 (12)(61)$76 $41 (12)— $29 
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.
Schedule of 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 EndedSix Months Ended
March 31,March 31,
Derivatives not designated as hedging instruments:2025202420252024
ES:
Physical commodity contractsOperating revenues$36,080 $(3,651)$33,448 $10,379 
Physical commodity contractsNatural gas purchases725 (1,424)(1,027)(2,010)
Financial commodity contractsNatural gas purchases(4,350)(2,459)(2,812)15,623 
Physical commodity contractsOperation and maintenance(2,179)— (1,126)— 
Total unrealized and realized gain (loss)$30,276 $(7,534)$28,483 $23,992 
Schedule of Effect of Derivative Instruments Designated as Cash Flow Hedges on OCI The following table reflects the gains (losses) associated with NJNG's derivative instruments for the periods set forth below:
Three Months EndedSix Months Ended
March 31,March 31,
(Thousands)2025202420252024
NJNG:
Physical commodity contracts$(5,188)$(3,920)$(18,574)$(4,990)
Financial commodity contracts30,038 (3,142)35,977 1,190 
Total unrealized and realized gain (loss)$24,850 $(7,062)$17,403 $(3,800)
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
March 31, 202522.910.22.4(0.8)
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 LocationMarch 31,
2025		September 30,
2024
NJNGRestricted broker margin accounts-current assets$7,803 $4,975 
ESRestricted broker margin accounts-current assets$12,087 $8,268 
Restricted broker margin accounts-current liabilities$— $1,146 
Schedule of Gross Credit Exposures
The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of March 31, 2025. 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$122,773 
Noninvestment grade21,735 
Internally rated investment grade15,618 
Internally rated noninvestment grade21,156 
Total$181,282