South Jersey Industries, Inc. (common(SJI) common stock - $1.25($1.25 par value) - The aggregate market value of voting stock held by non-affiliates of the registrant as of June 30, 20192021 was $3,116,326,472.$2,910,165,365. As of February 15, 2020,2022, there were 92,444,649117,379,409 shares of the registrant's common stock outstanding. South Jersey Gas Company (SJG) common stock ($2.50 par value) outstanding as of February 15, 20202022 was 2,339,139 shares. All of South Jersey Gas Company'sSJG's outstanding shares of common stock are held by South Jersey Industries,SJI Utilities, Inc. (SJIU), which is a wholly-owned subsidiary of SJI.

South Jersey Gas CompanySJG is an indirect wholly-owned subsidiary of South Jersey Industries, Inc.SJI and meets the conditions set forth in General Instruction I(1)(a) and (b) of Form 10-K; therefore, South Jersey Gas CompanySJG files this form with the reduced disclosure format.

In Part III of Form 10-K:  Portions of South Jersey Industries, Inc.'s definitive proxy statement for its 20202022 annual meeting of shareholders to be filed with the Securities and Exchange Commission are incorporated by reference into Part III of this Form 10-K.

This Annual Report on Form 10-K is a combined report being filed separately by two registrants: South Jersey Industries, Inc. (SJI)(SJI or "the Company") and South Jersey Gas Company (SJG). Information relating to SJI or any of its subsidiaries, other than SJG, is filed by SJI on its own behalf. SJG is only responsible for information about itself.

Except where the content clearly indicates otherwise, any reference in the report to "SJI," "the Company," "we," "us" or "our" is to SJI and all of its subsidiaries, including SJG, which is an indirect wholly-owned subsidiary of SJI.

Certain statements contained in this Annual Report on Form 10-K may qualify as “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this Report other than statements of historical fact, including statements regarding guidance, industry prospects, future results of operations or financial position, expected sources of incremental margin, strategy, financing needs, future capital expenditures and the outcome or effect of ongoing litigation, should be considered forward-looking statements made in good faith by South Jersey Industries (SJI or the Company)SJI and South Jersey Gas Company (SJG),SJG, as applicable, and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. When used in this Report, or any other documents, words such as “anticipate,” “believe,” "estimate," “expect,” “forecast,” “goal,” “intend,” “objective,” “plan,” “project,” “seek,” “strategy,” "target," "will" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the beliefs and assumptions of management at the time that these statements were madeprepared and are inherently uncertain. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These risks and uncertainties include, but are not limited to the risks set forth under “Risk Factors” in Part I, Item 1A of this Report and elsewhere throughout this Report. These cautionary statements should not be construed by you to be exhaustive and they are made only as of the date of this Report. While the Company believes these forward-looking statements to be reasonable, there can be no assurance that they will approximate actual experience or that the expectations derived from them will be realized. Further, neither SJI nor SJG undertakes no obligation to update or revise any of its forward-looking statements whether as a result of new information, future events or otherwise.

South Jersey Industries, Inc. (SJI or the Company), a New Jersey corporation, was formed in 1969 for the purpose of owning and holding all of the outstanding common stock of South Jersey Gas Company (SJG), a public utility, and acquiring and developing non-utility lines of business.

SJI provides a variety of energy-related products and services, primarily through the following wholly-owned subsidiaries:

 

Catamaran and a third party formed Bronx Midco, of which Catamaran owns 99%. On July 1, 2018,June 9, 2021, Bronx Midco purchased a fuel cell project totaling 5 MW in Bronx, New York that is in the process of being constructed. Marina, through its ownership in Catamaran, has a 92% ownership interest in Bronx Midco. The total expected cost of the fuel cell project is $60.1 million, of which the partners have paid $28.7 million as of December 31, 2021. Of this total, Marina invested $26.4 million as of December 31, 2021.

In 2021, Catamaran completed its acquisition of a solar project in Massachusetts, of which Marina has a 90% ownership interest. In 2021 and 2020, SJI, through its wholly-owned subsidiary SJIU,Marina, acquired solar energy projects along with entities owning newly operational rooftop solar-generation sites. The total consideration paid for these acquisitions in each year was not significant.

On August 7, 2020, SJI, through its wholly-owned subsidiary SJEI, completed its acquisition of the assetsremaining 75% of ETG and ELK from Pivotal Utility Holdings, Inc., a subsidiary of Southern Company Gas (collectively, the "Acquisition"),EnerConnex for total consideration of $1.72 billion after the settlement of working capital.$7.5 million. Prior to this transaction, SJEI had a 25% interest in EnerConnex.

See NoteNotes 1, 3 and 20 to the consolidated financial statements.

See Note 1 to the consolidated financial statements.

Additional Informationinformation on the nature of SJI's and SJG's businesses can be found in “Management's Discussion and Analysis of Financial Condition and Results of Operations,” under Item 7 of this Report.

SJG has direct connections to the interstate pipeline systems of Transco and Columbia. SJG secures other long-term services from Dominion, a pipeline upstream of the Transco and Columbia systems. Services provided by Dominion are utilized to deliver gas into either the Transco or Columbia systems for ultimate delivery to SJG.

The Company's intentions areintention is to renew or extend these transportation and storage service agreements before they expire.

Services provided by all of the above-mentioned pipelines are subject to the jurisdiction of the FERC.  

On July 1, 2018, ETG and ELK entered intohas an AMA with SJRG which extends through March 31, 2022.2022; both entities plan to extend this AMA prior to its expiration. Under this agreement ETG and ELK released to SJRG and/or designated SJRG as agent for all firm transportation and storage contracts. SJRG is obligated to provide natural gas supply to meet demand requirements and optimize ETG’s and ELK's portfolio of natural gas transportation and storage contracts. SJRG pays a fixed fee and shares net margin generated through portfolio optimization.

As part of the gas purchasing strategy, the Utilities use financial contracts to hedge against forward price risk. These contracts are recoverable through the BGSS/PGA Clause,BGSS clause, subject to BPU/MPSCBPU approval.

SJG operates peaking facilities, located in McKee City, NJ, where it liquefies, stores and vaporizes LNG for injection into its distribution system. SJG's LNG facility has a storage capacity equivalent to 434,300 dts of natural gas and has an installed capacity to vaporize up to 118,250 dts of LNG per day for injection into its distribution system.

SJRG holds various firm transportation agreements with National Fuel, Transco, Dominion, Columbia, Tennessee and Tetco. Total transportation under contract is 503,291423,030 dts/d. These contracts have terms with various ending dates, ranging from March 31, 2020September 30, 2022 through March 31, 2043. SJRG's intentions are to renew or extend these service agreements before they expire.

SJRG holds multiple storage service agreements, primarily with National Fuel and Transco (for storage service at Transco's WSS facility). and National Fuel. Total storage capacity under contract is approximately 5.44.6 MMdts. The National Fuel contract, which expires March 31, 2020, will not be renewed. The remaining contracts have terms with various ending dates, ranging from June 30, 2020October 31, 2022 through March 31, 2023, for which SJRG's intentions are2023.

The Company's intention is to renew or extend these transportation and storage service agreements before they expire.

SJRG has entered into several long-term natural gas supply agreements to purchase 772,500526,400 dts/d, depending upon production levels, for terms ranging from fourfive to teneleven years at index-based prices.

The Utilities hold nonexclusive franchises granted by municipalities in the areas to which they serve. No other natural gas public utility presently serves the territory covered by the Utilities' franchises. Otherwise, patents, trademarks, licenses, franchises and concessions are not material to the business of the Utilities.

The Utilities experience seasonal fluctuations in sales when selling natural gas for heating purposes. The Utilities meet these seasonal fluctuations in demand from firm customers by buying and storing gas during the summer months, and by drawing from storage and purchasing supplemental supplies during the heating season. As a result of this seasonality, the Utilities' revenues and net income are significantly higher during the first and fourth quarters than during the second and third quarters of the year.

Reference is made to “Liquidity and Capital Resources” included in Item 7 “Management's Discussion and Analysis of Financial Condition and Results of Operations,” of this Report.

No material portion of the business of SJI or any of its subsidiaries is subject to renegotiation of profits or termination of contracts or subcontracts at the election of any government.

Information on competition for SJI and its subsidiaries can be found in Item 7 “Management's Discussion and Analysis of Financial Condition and Results of Operations,” of this Report.

SJI has no foreign operations and export sales have not been a significant part of SJI's business.

SJI and its subsidiaries, including SJG, operate in an environment that involves risks, many of which are beyond our control. SJI has identified the following risk factors that could cause SJI's operating results and financial condition to be materially adversely affected. In addition, new risks may emerge at any time, and SJI cannot predict those risks or the extent to which they may affect SJI's businesses or financial performance. To the extent such risk factors may affect SJI's utility businesses, such risk factors may also affect SJG's business or performance.

None.

The principal property of SJI consists of gas transmission and distribution systems that include mains, service connections and meters. The transmission facilities carry the gas from the connections with Transco and Columbia to distribution systems for delivery to customers. As of December 31, 2019,2021, there were approximately 146147 miles of mains in theSJG's transmission systems and 6,7016,815 miles of mains in theSJG's distribution systems.

SJG owns approximately 44 acres of landis headquartered in Folsom, New Jersey which is the site of SJI's corporate headquarters. Approximately 30 acres of this property is deed restricted. SJGAtlantic City, NJ and also has office and service buildings at sevensix other locations in its territory. There is a liquefied natural gas storage, liquefaction and vaporization facility at one of these locations. SJG owns approximately 44 acres of land in Folsom, New Jersey which is the site of SJI's corporate headquarters. SJG leases the corporate headquarters to SJI (see Note 9 to the consolidated financial statements). Approximately 30 acres of this property is deed restricted.

Nonutility property and equipment has a net book value of approximately $12.2 million. This amount is reduced compared to the prior year due to the sale$205.1 million and consists mostly of certainfuel cell and solar assets, ongoing construction of renewable natural gas facilities and equipment at dairy farms, along with MTFmiscellaneous equipment and ACB being recorded as heldvehicles.

SJI and SJG believe existing property, facilities and equipment are in good operating condition and are suitable for sale on the consolidated balance sheet (see Note 1 to the consolidated financial statements).

SJI and SJG are subject to claims, actions and other legal proceedings arising in the ordinary course of business. Neither SJI nor SJG can make any assurance as to the outcome of any of these actions but, based on an analysis of these claims and consultation with outside counsel, we do not believe that any of these claims, other than those described in Note 15 to the consolidated financial statements, would be reasonably likely to have a material impact on the business or financial statements of SJI or SJG. Liabilities related to claims are accrued when the amount or range of amounts of probable settlement costs or

other charges for these claims can be reasonably estimated. See Note 15 to the consolidated financial statements for more detail on these claims.

Not applicable.

Information required by this item is also found in Note 6 of the consolidated financial statements included under Item 8 of this Report.

The following financial data has been obtainedSJG is restricted under its First Mortgage Indenture, as supplemented, as to the amount of cash dividends or other distributions that may be paid on its common stock. As of December 31, 2021, these restrictions did not affect the amount that may be distributed from SJG’s financial statements (in thousands, except for ratios and customers):retained earnings. No dividends were declared or paid on SJG's common stock in 2021, 2020 or 2019.