Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2018 | Feb. 01, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | NEW JERSEY RESOURCES CORP | |
Entity Central Index Key | 356,309 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 88,772,393 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
OPERATING REVENUES | |||
Utility | $ 199,965 | $ 209,787 | |
Nonutility | 611,802 | 495,518 | |
Total operating revenues | 811,767 | 705,305 | |
Gas purchases: | |||
Gas purchases - Utility | 87,649 | 77,602 | |
Gas purchases - Nonutility | 535,383 | 445,084 | |
Gas purchases - Related parties | 2,185 | 2,149 | |
Operation and maintenance | 60,102 | 54,160 | |
Regulatory rider expenses | 12,632 | 11,769 | |
Depreciation and amortization | 21,832 | 21,854 | |
Energy and other taxes | 16,491 | ||
Taxes, Other | 3,241 | ||
Total operating expenses | 723,024 | 629,109 | |
OPERATING INCOME | 88,743 | 76,196 | |
Other income, net | 869 | 5,976 | |
Interest expense, net of capitalized interest | 13,486 | 11,905 | |
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES | 76,126 | 70,267 | |
Income tax benefit | (6,961) | (50,168) | |
Equity in earnings of affiliates | 3,161 | 3,264 | |
NET INCOME | $ 86,248 | $ 123,699 | |
EARNINGS PER COMMON SHARE | |||
Basic (usd per share) | $ 0.97 | $ 1.42 | |
Diluted (usd per share) | [1] | $ 0.97 | $ 1.42 |
WEIGHTED AVERAGE SHARES OUTSTANDING | |||
Basic (in shares) | 88,547 | 86,996 | |
Diluted (in shares) | 88,946 | 87,347 | |
[1] | There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for fiscal 2019 and 2018. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 86,248 | $ 123,699 |
Other comprehensive income (loss), net of tax | ||
Unrealized loss on investments in equity securities, net of tax of $0 and $851, respectively | 0 | (2,290) |
Reclassifications of losses to net income on investments in equity securities, net of tax of $0 and $2,178, respectively | 0 | (3,154) |
Adjustment to postemployment benefit obligation, net of tax of $(96) and $(136), respectively | 234 | 240 |
Other comprehensive income (loss) | 234 | (5,204) |
Comprehensive income | $ 86,482 | $ 118,495 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Tax on unrealized (loss) gain on available for sale securities | $ 0 | $ 851 |
Tax on reclassifications of equity securities | 0 | 2,178 |
Tax on adjustment for postemployment benefit obligation | $ (96) | $ (136) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS USED IN OPERATING ACTIVITIES | ||
Net (loss) income | $ 86,248 | $ 123,699 |
Adjustments to reconcile net income to cash flows from operating activities | ||
Unrealized (gain) loss on derivative instruments | (10,932) | 34,855 |
Realized and unrealized gain on investments in equity securities | (257) | (5,332) |
Depreciation and amortization | 21,832 | 21,854 |
Amortization of acquired wholesale energy contracts | 370 | 3,391 |
Allowance for equity used during construction | (1,751) | (852) |
Allowance for doubtful accounts | 643 | 471 |
Deferred income taxes | (8,733) | 13,451 |
Deferred income tax benefit due to the Tax Act | 0 | (57,565) |
Manufactured gas plant remediation costs | (2,593) | (5,147) |
Equity in earnings, net of distributions received from equity investees | (830) | (257) |
Cost of removal - asset retirement obligations | (65) | (332) |
Contributions to postemployment benefit plans | (1,666) | (1,467) |
Tax benefit from stock-based compensation | 1,279 | 2,831 |
Changes in: | ||
Components of working capital | (206,728) | (189,528) |
Other noncurrent assets | 9,710 | 31,038 |
Other noncurrent liabilities | 8,718 | 5,388 |
Cash flows used in operating activities | (104,755) | (23,502) |
Expenditures for: | ||
Utility plant | (51,359) | (34,638) |
Solar equipment | (32,126) | (18,387) |
Midstream and other | (2,420) | (1,313) |
Cost of removal | (8,396) | (12,752) |
Distribution from equity investees in excess of equity in earnings | 619 | 793 |
Investments in equity investees | 0 | (7,202) |
Cash paid related to acquisition | 0 | (10,000) |
Proceeds from sale of investments in equity securities, net | 0 | 6,616 |
Cash flows used in investing activities | (93,682) | (76,883) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payments of long-term debt | (4,723) | (1,690) |
Proceeds from short-term debt, net | 219,750 | 107,200 |
Proceeds from sale-leaseback transaction | 9,895 | 7,820 |
Payments of common stock dividends | (25,812) | (23,607) |
Proceeds from waiver discount issuance of common stock | 7,964 | 22,690 |
Proceeds from issuance of common stock | 3,749 | 3,846 |
Tax withholding payments related to net settled stock compensation | (6,087) | (13,319) |
Cash flows from financing activities | 204,736 | 102,940 |
Change in cash, cash equivalents and restricted cash | 6,299 | 2,555 |
Cash, cash equivalents and restricted cash at beginning of period | 1,710 | 2,469 |
Cash, cash equivalents and restricted cash at end of period | 8,009 | 5,024 |
CHANGES IN COMPONENTS OF WORKING CAPITAL | ||
Receivables | (161,039) | (192,253) |
Inventories | (58,061) | (2,561) |
Recovery of gas costs | (1,142) | 17,102 |
Gas purchases payable | 58,663 | 43,284 |
Prepaid and accrued taxes | 17,027 | (12,418) |
Accounts payable and other | (47,498) | (25,527) |
Restricted broker margin accounts | (9,963) | (21,694) |
Customers' credit balances and deposits | 2,304 | 6,093 |
Other current assets | (7,019) | (1,554) |
Components of working capital | (206,728) | (189,528) |
Cash paid (received) for: | ||
Interest (net of amounts capitalized) | 16,002 | 9,758 |
Income taxes | 130 | (191) |
Accrued capital expenditures | $ 19,791 | $ 26,034 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
PROPERTY, PLANT AND EQUIPMENT | ||
Utility plant, at cost | $ 2,400,903 | $ 2,368,914 |
Construction work in progress | 210,543 | 192,481 |
Nonutility plant and equipment, at cost | 749,700 | 697,406 |
Construction work in progress | 19,391 | 45,690 |
Total property, plant and equipment | 3,380,537 | 3,304,491 |
Accumulated depreciation and amortization, utility plant | (539,905) | (530,753) |
Accumulated depreciation and amortization, nonutility plant and equipment | (130,560) | (122,689) |
Property, plant and equipment, net | 2,710,072 | 2,651,049 |
CURRENT ASSETS | ||
Cash and cash equivalents | 7,694 | 1,458 |
Customer accounts receivable | ||
Billed | 318,108 | 205,490 |
Unbilled revenues | 55,155 | 7,199 |
Allowance for doubtful accounts | (5,882) | (5,704) |
Regulatory assets | 18,509 | 18,297 |
Gas in storage, at average cost | 241,389 | 184,633 |
Materials and supplies, at average cost | 15,215 | 13,910 |
Prepaid and accrued taxes | 10,588 | 23,047 |
Derivatives, at fair value | 55,358 | 27,396 |
Restricted broker margin accounts | 85,784 | 53,719 |
Assets held for sale | 207,737 | 206,905 |
Other | 40,254 | 33,730 |
Total current assets | 1,049,909 | 770,080 |
NONCURRENT ASSETS | ||
Investments in equity method investees | 192,188 | 190,866 |
Regulatory assets | 370,024 | 368,592 |
Derivatives, at fair value | 6,085 | 10,560 |
Investments in equity securities | 33,174 | 32,917 |
Intangible assets, net | 23,007 | 23,375 |
Other noncurrent assets | 92,863 | 96,225 |
Total noncurrent assets | 717,341 | 722,535 |
Total assets | 4,477,322 | 4,143,664 |
CAPITALIZATION | ||
Common stock, $2.50 par value; authorized 150,000,000 shares; outstanding December 31, 2018 — 88,680,174; September 30, 2018 — 88,292,956 | 226,539 | 226,196 |
Premium on common stock | 278,286 | 274,748 |
Accumulated other comprehensive loss, net of tax | (15,822) | (12,610) |
Treasury stock at cost and other; shares December 31, 2018 — 1,935,229; September 30, 2018 — 2,185,013 | (65,060) | (76,473) |
Retained earnings | 1,073,107 | 1,007,117 |
Common stock equity | 1,497,050 | 1,418,978 |
Long-term debt | 1,184,801 | 1,180,619 |
Total capitalization | 2,681,851 | 2,599,597 |
CURRENT LIABILITIES | ||
Current maturities of long-term debt | 124,806 | 123,545 |
Short-term debt | 371,700 | 151,950 |
Gas purchases payable | 269,966 | 211,303 |
Gas purchases payable to related parties | 1,150 | 1,150 |
Accounts payable and other | 75,119 | 135,240 |
Dividends payable | 25,938 | 25,824 |
Accrued taxes | 6,137 | 1,568 |
Regulatory liabilities | 12,822 | 8,185 |
New Jersey Clean Energy Program | 12,359 | 14,052 |
Derivatives, at fair value | 65,114 | 46,652 |
Liabilities held for sale | 4,182 | 4,182 |
Customers' credit balances and deposits | 29,629 | 27,325 |
Total current liabilities | 998,922 | 750,976 |
NONCURRENT LIABILITIES | ||
Deferred income taxes | 233,099 | 242,436 |
Deferred investment tax credits | 3,895 | 3,976 |
Deferred gain | 2,144 | 9,104 |
Derivatives, at fair value | 36,825 | 22,982 |
Manufactured gas plant remediation | 129,556 | 130,800 |
Postemployment employee benefit liability | 141,499 | 137,007 |
Regulatory liabilities | 210,580 | 209,139 |
Asset retirement obligation | 29,329 | 28,688 |
Other | 9,622 | 8,959 |
Total noncurrent liabilities | 796,549 | 793,091 |
Commitments and contingent liabilities (Note 13) | ||
Total capitalization and liabilities | $ 4,477,322 | $ 4,143,664 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2018 | Sep. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 2.5 | $ 2.5 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares outstanding (in shares) | 88,680,174 | 88,292,956 |
Treasury stock at cost and other, shares (in shares) | 1,935,228.908 | 2,185,013 |
NATURE OF THE BUSINESS
NATURE OF THE BUSINESS | 3 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF THE BUSINESS | 1. NATURE OF THE BUSINESS New Jersey Resources Corporation provides regulated gas distribution services and operates certain unregulated businesses primarily through the following: New Jersey Natural Gas Company provides natural gas utility service to approximately 543,800 retail customers in central and northern New Jersey and is subject to rate regulation by the BPU. NJNG comprises the Natural Gas Distribution segment. NJR Clean Energy Ventures Corporation, the Company's clean energy subsidiary, comprises the Clean Energy Ventures segment and consists of the Company's capital investments in commercial and residential solar projects located throughout New Jersey and onshore wind investments in Iowa, Kansas, Wyoming and Pennsylvania. NJR Energy Services Company comprises the Energy Services segment. Energy Services maintains and transacts around a portfolio of natural gas storage and transportation 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 Midstream segment, invests in energy-related ventures through its subsidiaries, NJR Steckman Ridge Storage Company, which holds the Company's 50 percent combined ownership interest in Steckman Ridge, located in Pennsylvania; NJNR Pipeline, which held our DM Common Units; and NJR Pipeline Company, which includes Adelphia Gateway, LLC and the Company's 20 percent ownership interest in PennEast . See Note 7. Investments in Equity Investees for more information. NJR Retail Holdings Corporation has two principal subsidiaries, NJR Home Services Company, which provides heating, central air conditioning, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey, and Commercial Realty & Resources Corporation, which owns commercial real estate. NJR Home Services Company and Commercial Realty & Resources Corporation are included in Home Services and Other operations. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Dec. 31, 2018 | |
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 NJR in accordance with the rules and regulations of the SEC and GAAP. The September 30, 2018 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 NJR's 2018 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 NJR'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, 2019 . Intercompany transactions and accounts have been eliminated. Sales Tax Accounting As a result of the adoption of ASC 606, Revenue from Contracts with Customers , as of October 1, 2018, the Company 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 on a net basis in operating revenues on the Unaudited Condensed Consolidated Statements of Operations. Previously, sales tax was presented in both operating revenues and operating expenses on the Unaudited Condensed Consolidated Statements of Operations. Gas in Storage The following table summarizes gas in storage, at average cost by segment as of: December 31, 2018 September 30, 2018 ($ in thousands) Gas in Storage Bcf Gas in Storage Bcf Energy Services $ 148,746 38.4 $ 90,166 34.1 Natural Gas Distribution 92,643 20.8 94,467 24.9 Total $ 241,389 59.2 $ 184,633 59.0 Investments in Equity Securities Investments in equity securities are carried at fair value on the Unaudited Condensed Consolidated Balance Sheets. For the fiscal year ended September 30, 2018, total unrealized gains and losses associated with equity securities were included as a part of accumulated other comprehensive income, a component of common stock equity, and reclassifications of realized gains or losses out of other comprehensive income into earnings were recorded in other income, net on the Unaudited Condensed Consolidated Statements of Operations, based on average cost. On October 1, 2018, the Company adopted ASU No. 2016-01, an amendment to ASC 825, Financial Instruments . As a result, unrealized gains and losses are recorded in other income, net on the Unaudited Condensed Consolidated Statements of Operations, based on average cost. As of September 30, 2018 , the Company's investments in equity securities had a fair value of $32.9 million , and total unrealized gains were $4.7 million , $3.4 million , net of deferred income tax expense. These amounts were reclassified from accumulated other comprehensive income to retained earnings upon adoption of ASU No. 2016-01. As a result, unrealized gains and losses are recorded in other income, net on the Unaudited Condensed Consolidated Statements of Operations, based on average cost. As of December 31, 2018 , the Company's equity securities were comprised of its investment in DM Common Units which had a fair value of $33.2 million . During the three months ended December 31, 2018 , total unrealized gains of $257,000 were recognized in other income, net on the Unaudited Condensed Consolidated Statements of Operations. On November 26, 2018 , Dominion and DM executed an agreement and plan of merger. This merger was finalized on January 28, 2019 . Outstanding DM Common Units held immediately before the closing of the merger were converted into 0.2492 shares of Dominion common stock. This resulted in the conversion of the Company's 1.84 million DM Common Units into approximately 458,000 Dominion shares. During the three months ended December 31, 2017 , NJR sold shares of its equity securities in an energy company and received proceeds of approximately $6.6 million and recognized a pre-tax gain of $5.3 million . There were no sales of equity securities during the three months ended December 31, 2018 . Customer Accounts Receivable Customer accounts receivable include outstanding billings from the following subsidiaries as of: (Thousands) December 31, September 30, Energy Services $ 237,790 75 % $ 157,936 77 % Natural Gas Distribution (1) 73,748 23 39,151 19 Clean Energy Ventures 3,574 1 3,330 2 Home Services and Other Operations 2,996 1 5,073 2 Total $ 318,108 100 % $ 205,490 100 % (1) Does not include unbilled revenues of $55.2 million and $7.2 million as of December 31, 2018 and September 30, 2018 , respectively. Loans Receivable NJNG currently provides loans, with terms ranging from three 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 net present value on the Unaudited Condensed Consolidated Balance Sheets. The Company recorded $10.8 million and $10.4 million in other current assets and $39.4 million and $39.5 million in other noncurrent assets as of December 31, 2018 and September 30, 2018 , respectively, on the Unaudited Condensed Consolidated Balance Sheets, related to the loans. If NJNG determines a loan is impaired, the basis of the loan would be subject to regulatory review for recovery. As of December 31, 2018 and September 30, 2018 , the Company has not recorded an allowance for doubtful accounts for SAVEGREEN loans. Assets Held for Sale The wind assets classified as held for sale are measured at the lower of their carrying value or fair value less cost to sell. On November 21, 2018 , Clean Energy Ventures entered into a Membership Interest Purchase Agreement with a subsidiary of Skyline Renewables LLC to sell its remaining wind assets. The Company submitted a joint filing for authorization with the FERC, which was approved on December 31, 2018. The transaction is expected to close in the second quarter of fiscal 2019. The major classes of assets and liabilities included within the disposal group as held for sale are as follows: (Thousands) September 30, 2018 Assets reclassified as held for sale Assets Sold Other adjustments December 31, 2018 Assets held for sale: Nonutility plant and equipment - wind equipment, at cost $ 224,356 $ — $ — $ — $ 224,356 Nonutility plant and equipment - accumulated depreciation, wind equipment (18,501 ) — — — (18,501 ) Prepaid and other current assets 789 1,535 — (703 ) 1,621 Other noncurrent assets 261 — — — 261 $ 206,905 $ 1,535 $ — $ (703 ) $ 207,737 Liabilities held for sale: Accounts payable and other (1) $ 186 $ — $ — $ — $ 186 Asset retirement obligation 3,996 — — — 3,996 $ 4,182 $ — $ — $ — $ 4,182 (1) Transaction fee owed to broker for the sale of Two Dot wind farm. Reclassification Certain prior period amounts related to the deferred income tax benefit due to the Tax Act and restricted cash on the Unaudited Condensed Consolidated Statements of Cash Flows and compensation costs on the Unaudited Condensed Consolidated Statements of Operations were reclassified to conform to the current period presentation due to the adoption of various ASUs listed below. Recently Adopted Updates to the Accounting Standards Codification Revenue In May 2014, the FASB issued ASU No. 2014-09, and added ASC 606, Revenue from Contracts with Customers , to the ASC. ASC 606 supersedes ASC 605, Revenue Recognition , as well as most industry-specific guidance, and prescribes a single, comprehensive revenue recognition model designed to improve financial reporting comparability across entities, industries, jurisdictions and capital markets. The Company adopted the new guidance in the first quarter of fiscal 2019 and applied the new provisions on a modified retrospective basis. The Company recorded a cumulative-effect adjustment of $3.8 million , $2.7 million net of deferred income taxes, to retained earnings at Home Services and Other. As of October 1, 2018, NJRHS recognizes contract revenue on a straight line basis over the term of the contract. Previously, contract revenue was recognized over the term of the service contract based on expected demand for services. Revenue for the three months ended December 31, 2018 for Home Services and Other after adopting ASC 606 was $12.5 million , as opposed to $10.1 million under ASC 605, representing a $2.4 million increase in revenue recognition. The Company 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 on a net basis in operating revenues on the Unaudited Condensed Consolidated Statements of Operations. Operating revenue for the Company would have included $14.4 million related to sales tax for the three months ended December 31, 2018. There was no additional impact on the Company’s financial position, results of operations or cash flows. The Company concluded that its tariff-based sales of natural gas are within the scope of the new guidance and the adoption did not result in any modification to the pattern of revenue recognition from such sales. Revenues from derivative instruments, such as those related to the Company’s SREC sales and natural gas purchases and sales will continue to be accounted for under ASC 815 and thus are outside the scope of ASC 606. Additionally, NJNG revenues generated by the CIP have been determined to be alternative revenue programs under ASC 980 and are also outside the scope of ASC 606, as they are deemed to be a contract with the BPU. The Company also evaluated its renewable asset PPA arrangements and determined that no modification to the pattern of revenue recognition of the related electricity, capacity and REC sales was necessary. Revenues from RECs sold as part of a bundled arrangement continue to be recognized in the same period as the related generation. Based on the completion of the Company’s evaluation and assessment of its revenue streams, the Company concluded that the new guidance did not have a material impact on its financial position, results of operations or cash flows. ASC 606 requires expanded disclosures, including the disclosure of performance obligations, disaggregated revenues and contract balances, which is included in Note 3. Revenue . Statement of Cash Flows In August 2016, the FASB issued ASU No. 2016-15, an amendment to ASC 230, Statement of Cash Flows , which addresses eight specific cash flow issues for which there has been diversity in practice. The Company adopted this guidance in the first quarter of fiscal 2019 and applied the new provisions on a retrospective basis, which did not impact its statement of cash flows. In November 2016, the FASB issued ASU No. 2016-18, an amendment to ASC 230, Statement of Cash Flows , which requires that any amounts that are deemed to be restricted cash or restricted cash-equivalents be included in cash and cash-equivalent balances on the cash flow statement and, therefore, transfers between cash and restricted cash accounts will no longer be recognized within the statement of cash flows. The Company adopted this guidance in the first quarter of fiscal 2019 and applied the new provisions on a retrospective basis, which did not materially impact its statement of cash flows. Accordingly, 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) December 31, September 30, December 31, September 30, Balance Sheet Cash and cash equivalents $ 7,694 $ 1,458 $ 4,738 $ 2,226 Restricted cash in other noncurrent assets 315 252 286 243 Statements of Cash Flow Cash, cash equivalents and restricted cash in the statement of cash flows $ 8,009 $ 1,710 $ 5,024 $ 2,469 Financial Instruments In January 2016, the FASB issued ASU No. 2016-01, an amendment to ASC 825, Financial Instruments , to address certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. The standard affects investments in equity securities that do not result in consolidation and are not accounted for under the equity method and the presentation of certain fair value changes for financial liabilities measured at fair value. It also simplifies the impairment assessment of equity investments without a readily determinable fair value by requiring a qualitative assessment. The Company adopted this guidance in the first quarter of fiscal 2019 and applied the new provisions on a modified retrospective basis which resulted in the reclassification of $4.7 million , $3.4 million net of deferred income tax expense, to the opening balance of retained earnings from accumulated other comprehensive income related to investments in equity securities. Subsequent changes to the fair value of the Company’s investments in equity securities are recorded in other income, net in the Unaudited Condensed Consolidated Statement of Operations. Business Combinations In January 2017, the FASB issued ASU No. 2017-01, an amendment to ASC 805, Business Combinations , clarifying the definition of a business in the ASC, which is intended to reduce the complexity surrounding the assessment of a transaction as an asset acquisition or business combination. The amendment provides an initial fair value screen to reduce the number of transactions that would fit the definition of a business, and when the screen threshold is not met, provides an updated model that further clarifies the characteristics of a business. The Company adopted this guidance in the first quarter of fiscal 2019 and the new provisions will be applied on a prospective basis. The amendment could potentially have material impacts on future transactions that the Company may enter into by altering the Company’s conclusion on the accounting framework that is applied to acquisitions. Gains and Losses from the Derecognition of Nonfinancial Assets In February 2017, the FASB issued ASU No. 2017-05, an amendment to ASC 610-20, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets , which clarifies the scope and accounting related to the derecognition of nonfinancial assets, including partial sales and contributions of nonfinancial assets to a joint venture or other non-controlled investee. The Company adopted this guidance in the first quarter of 2019, concurrently with ASC 606, and applied the new provisions on a modified retrospective basis through a cumulative effect adjustment of $6.8 million , $5 million net of deferred income tax expense, to the opening balance of retained earnings related to a transfer of a nonfinancial asset that was previously recorded as a deferred gain on the Unaudited Condensed Consolidated Balance Sheets. Compensation - Retirement Benefits In March 2017, the FASB issued ASU No. 2017-07, an amendment to ASC 715, Compensation - Retirement Benefits , which changes the presentation of net periodic benefit cost on the income statement by requiring companies to present all components of net periodic benefit cost, other than service cost, outside a subtotal of income from operations. The amendment also states that only the service cost component of net periodic benefits costs is eligible for capitalization, when applicable. The amendment establishes a practical expedient that permits entities to use their previously disclosed service and other costs in their pension and other postretirement benefit plan footnotes in the prior comparative periods as the estimation basis when applying the retrospective presentation of these costs in the income statement. The Company adopted this guidance in the first quarter of 2019, and applied the new provisions on a retrospective basis for income statement presentation, and is applying the new provisions on a prospective basis for changes to capitalization of costs. Accordingly, the following amounts on the Unaudited Condensed Consolidated Statement of Operations for the three months ended December 31, 2017, have been adjusted: (Thousands) As Previously Reported Effect of Change As Adjusted Statements of Operations Operation and maintenance $ 55,111 $ (951 ) $ 54,160 Total operating expenses $ 630,060 $ (951 ) $ 629,109 Operating income $ 75,245 $ 951 $ 76,196 Other income (expense), net $ 6,927 $ (951 ) $ 5,976 The changes related to the costs that will be eligible for capitalization will not have a material impact on the Company's financial position, results of operations or cash flows upon adoption. There was no additional impact to the Company's financial position, results of operations or cash flows. Stock Compensation In May 2017, the FASB issued ASU No. 2017-09, an amendment to ASC 718, Compensation - Stock Compensation , which clarifies the accounting for changes to the terms or conditions of share-based payments. The Company adopted this guidance in the first quarter of fiscal 2019, and will apply the new provisions prospectively to awards modified on or after October 1, 2018. There was no impact to the Company's financial position, results of operations or cash flows upon adoption. Other Recent Updates to the Accounting Standards Codification Leases In February 2016, the FASB issued ASU No. 2016-02, an amendment to ASC 842, Leases , which provides for a comprehensive overhaul of the lease accounting model and changes the definition of a lease within the accounting literature. Under the new standard, all leases with a term greater than one year will be recorded on the balance sheet. Amortization of the related asset will be accounted for using one of two approaches prescribed by the guidance. Additional disclosures will be required to allow the user to assess the amount, timing and uncertainty of cash flows arising from leasing activities. A modified retrospective transition approach is required for leases existing at the time of adoption. In January 2018, the FASB issued ASU No. 2018-01, a further amendment to ASC 842, Leases , which was introduced by ASU No. 2016-02, as discussed above. This update provides an optional practical expedient that allows companies to not evaluate existing or expired land easements that were not previously accounted for under Topic 840 as leases. The Company expects to elect this practical expedient upon adoption. The guidance is effective for the Company beginning October 1, 2019. In July 2018, the FASB issued ASU No. 2018-11, which provides an optional transition method to ASC 842 that allows the Company to recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. At this time, the Company does not plan to early adopt the new guidance and expects to transition on a modified retrospective basis. The Company is currently in the process of reviewing its contracts to identify all of its leases and evaluating its lease population. The Company’s operating leases primarily consist of office and land leases related to solar and wind assets. While the Company is currently evaluating the full impact of the standard and its related updates, it expects to recognize right-of-use assets and liabilities arising from current operating leases on its statement of financial position upon adoption, however, these amounts are not reasonably estimable at this time. The Company does not expect the amendments to the standard to have any impact on its results of operations or cash flows. Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, an amendment to ASC 326, Financial Instruments - Credit Losses , which changes the impairment model for certain financial assets that have a contractual right to receive cash, including trade and loan receivables. The new model requires recognition based upon an estimation of expected credit losses rather than recognition of losses when it is probable that they have been incurred. An entity will apply the amendment through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The guidance is effective for the Company beginning October 1, 2020, with early adoption permitted. The Company is currently evaluating the amendment to understand the impact on its financial position, results of operations and cash flows upon adoption and will apply the new guidance to its trade and loan receivables on a modified retrospective basis. Derivatives and Hedging In August 2017, the FASB issued ASU No. 2017-12, an amendment to ASC 815 , Derivatives and Hedging , which is intended to make targeted improvements to the accounting for hedging activities by better aligning an entity’s risk management activities and financial reporting for hedging relationships. These amendments modify the accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. Additionally, the amendments are intended to simplify the application of the hedge accounting guidance and provide relief to companies by easing certain hedge documentation requirements. The guidance is effective for the Company beginning October 1, 2019, with early adoption permitted. Upon adoption, the transition requirements and elections will be applied to hedging relationships existing on the date of adoption. The Company does not currently apply hedge accounting to any of its risk management activities and thus does not expect the amendments to have any impact on its financial position, results of operations and cash flows upon adoption. In October 2018, the FASB issued ASU No. 2018-16, an amendment to ASC 815, Derivatives and Hedging , which permits the use of the Overnight Swap Index rate based on the Secured Overnight Financing Rate as an additional acceptable U.S. benchmark interest rate for hedge accounting purposes. The guidance is effective for the Company beginning October 1, 2019, with early adoption permitted. The Company does not currently apply hedge accounting to any of its risk management activities and thus does not expect the amendments to have any impact on its financial position, results of operations and cash flows upon adoption. Stock Compensation In June 2018, the FASB issued ASU No. 2018-07, an amendment to ASC 718, Compensation - Stock Compensation , which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. The guidance is effective for the Company beginning October 1, 2019, with early adoption permitted. The Company is currently evaluating the impact of the amendment on the Company’s financial position, results of operations and cash flows upon adoption. Fair Value In August 2018, the FASB issued ASU No. 2018-13, an amendment to ASC 820, Fair Value Measurement , which removes, modifies and adds to certain disclosure requirements of fair value measurements. Disclosure requirements removed include the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. Modifications include considerations around the requirement to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse. The additions include the requirement to disclose changes in unrealized gains and losses for the period in other comprehensive income for recurring Level 3 fair value measurements held and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The guidance is effective for the Company beginning October 1, 2020, with early adoption permitted. Upon adoption, the amendments will be applied on a prospective or retrospective basis depending on the specific amendments’ transition requirements. The Company is currently evaluating the amendments to understand the impact on its financial position, results of operations, cash flows and disclosures upon adoption and will apply the new guidance. Compensation - Retirement Benefits In August 2018, the FASB issued ASU No. 2018-14, an amendment to ASC 715, Compensation - Retirement Benefits , which removes disclosures that no longer are considered cost-beneficial, clarifies the specific requirements of certain disclosures and adds new disclosure requirements identified as relevant. The guidance is effective for the Company beginning October 1, 2021, with early adoption permitted. Upon adoption, the amendments will be applied on a retrospective basis. The Company is continuing to evaluate the amendment to fully understand the impact on the Company's disclosures upon adoption. Intangibles In August 2018, the FASB issued ASU No. 2018-15, an amendment to ASC 350, Intangibles - Goodwill and Other , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance is effective for the Company beginning October 1, 2020, with early adoption permitted. Upon adoption, the amendment can be applied either on a prospective or retrospective basis. The Company is currently evaluating the amendments to understand the impact on its financial position, results of operations, cash flows and disclosures upon adoption. |
REVENUE Revenue
REVENUE Revenue | 3 Months Ended |
Dec. 31, 2018 | |
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 we do 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 Performance Obligation Description Natural Gas Distribution 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 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. Clean Energy Ventures Commercial solar and wind electricity Clean Energy Ventures operates wholly-owned solar and wind 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. Clean Energy Ventures Residential solar electricity Clean Energy Ventures 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. Energy Services Wholesale natural gas services The performance obligation of Energy Services is to provide the customer transportation, storage and asset management services on an as needed basis. Energy Services 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. Energy Services invoices customers on a monthly basis in line with the terms of the contract and based on the services provided. Payment is due each month for the previous month's invoiced services. Home Services and Other Service contracts Home Services enters into service contracts with homeowners to provide maintenance and replacement services of applicable heating, cooling or ventilation equipment. 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: Home Services and Other Installations Home Services installs appliances, including but not limited to, furnaces, air conditioning units, boilers and generators to customers. The distinct performance obligation is the installation of the contracted appliance, which is satisfied at the point in time the item is installed. Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the three months ended December 31, 2018 is as follows: Regulated Unregulated (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Home Services and Other Total Natural gas utility sales $ 194,983 — — — $ 194,983 Wholesale natural gas services — — 10,080 — 10,080 Service contracts — — — 7,796 7,796 Installations and maintenance — — — 4,694 4,694 Electricity sales — 7,141 — — 7,141 Eliminations (1) — — — (545 ) (545 ) Revenues from contracts with customers 194,983 7,141 10,080 11,945 224,149 Alternative revenue programs (867 ) — — — (867 ) Derivative Instruments 5,849 7,756 577,187 — 590,792 Eliminations (1) — — (2,307 ) — (2,307 ) Revenues out of scope 4,982 7,756 574,880 — 587,618 Total operating revenues $ 199,965 14,897 584,960 11,945 $ 811,767 (1) Consists of transactions between subsidiaries that are eliminated in consolidation. Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the three months ended December 31, 2018 is as follows: Regulated Unregulated (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Home Services and Other Total Residential $ 133,690 2,132 — 11,717 $ 147,539 Commercial and industrial 40,728 5,009 10,080 228 56,045 Firm transportation 18,934 — — — 18,934 Interruptible and off-tariff 1,631 — — — 1,631 Revenues out of scope 4,982 7,756 574,880 — 587,618 Total operating revenues $ 199,965 14,897 584,960 11,945 $ 811,767 Customer Accounts Receivable/Credit Balances and Deposits The timing of revenue recognition, customer billings and cash collections result in accounts receivables, billed and unbilled, and customers’ credit balances and deposits on the Unaudited Condensed Consolidated Balance Sheets during the three months ended December 31, 2018 are as follows: Customer Accounts Receivable Customers' Credit (Thousands) Billed Unbilled Balances and Deposits Balance as of October 1, 2018 $ 205,490 $ 7,199 $ 27,325 Increase 112,618 47,956 2,304 Balance as of December 31, 2018 $ 318,108 $ 55,155 $ 29,629 The following table provides information about receivables and revenue earned on contracts in progress in excess of billings, 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 December 31, 2018 : (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Home Services and Other Eliminations Total Customer accounts receivable Billed $ 73,748 3,574 239,542 2,996 (1,752 ) $ 318,108 Unbilled 55,155 — — — — 55,155 Customers' credit balances and deposits (29,627 ) — — (2 ) — (29,629 ) Total $ 99,276 3,574 239,542 2,994 (1,752 ) $ 343,634 |
REGULATION
REGULATION | 3 Months Ended |
Dec. 31, 2018 | |
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 annual filings to the BPU for review of its BGSS, CIP and various other programs and related rates. Annual rate changes are typically requested to be effective at the beginning of the following fiscal year. All rate and program changes are subject to proper notification and BPU review and approval. In addition, NJNG is also permitted to implement certain BGSS rate changes on an interim basis with proper notification to the BPU. Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets are comprised of the following: (Thousands) December 31, September 30, Regulatory assets-current New Jersey Clean Energy Program $ 12,359 $ 14,052 Underrecovered gas costs 6,149 4,137 Derivatives at fair value, net 1 108 Total current regulatory assets $ 18,509 $ 18,297 Regulatory assets-noncurrent Environmental remediation costs Expended, net of recoveries $ 32,764 $ 33,017 Liability for future expenditures 129,556 130,800 Deferred income taxes 17,842 17,225 SAVEGREEN 5,888 8,636 Postemployment and other benefit costs 138,027 136,716 Deferred storm damage costs 10,315 10,858 Cost of removal 26,587 22,339 Other noncurrent regulatory assets 9,045 9,001 Total noncurrent regulatory assets $ 370,024 $ 368,592 Regulatory liabilities-current Conservation Incentive Program $ 7,861 $ 6,994 Derivatives at fair value, net 4,961 1,191 Total current regulatory liabilities $ 12,822 $ 8,185 Regulatory liabilities-noncurrent Tax Act impact (1) $ 204,161 $ 205,410 New Jersey Clean Energy Program 4,722 1,902 Other noncurrent regulatory liabilities 1,697 1,827 Total noncurrent regulatory liabilities $ 210,580 $ 209,139 (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. Regulatory filings and/or actions that occurred during the current fiscal year include the following: • On December 18, 2018 , the BPU approved a decrease in NJNG's EE recovery rate reflecting costs incurred through December 31, 2018 , which will result in an annual decrease of $8.8 million , effective January 1, 2019 . • On December 28, 2018 , NJNG notified the BPU that it will increase the BGSS rate resulting in a $10.9 million increase to the annual revenues credited to BGSS effective February 1, 2019 . |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 3 Months Ended |
Dec. 31, 2018 | |
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, the Company may utilize foreign currency derivatives to hedge Canadian dollar denominated 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. 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 NJR's derivative instruments, see Note 6. Fair Value . Energy Services Energy Services 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 gas purchases or operating revenues, as appropriate for Energy Services, on the Unaudited Condensed Consolidated Statements of Operations as unrealized gains or losses. For Energy Services at settlement, realized gains and losses on all financial derivative instruments are recognized as a component of 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 gas purchases or operating revenues. Energy Services 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. Energy Services may utilize foreign currency derivatives to lock in the exchange rate 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 gas purchase agreements. As a result of Energy Services 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 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. For transactions occurring on or before December 31, 2015, the Company elected NPNS accounting treatment on SREC forward and futures contracts. Effective January 1, 2016, on a prospective basis, Energy Services no longer elects NPNS accounting treatment on SREC contracts entered into from January 1, 2016, and 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. NPNS is a contract-by-contract election and, where appropriate, the Company can and may elect normal accounting for certain contracts. 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. Effective for contracts executed on or after January 1, 2016, NJNG no longer elects NPNS accounting treatment on all physical forward commodity contracts. However, since NPNS is a contract-by-contract election, where it makes sense to do so, NJNG can and may elect certain contracts to be 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 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. In June 2015, NJNG entered into a treasury lock transaction to fix a benchmark treasury rate of 3.26 percent associated with a $125 million debt issuance that was finalized in May 2018. This debt issuance coincided with the maturity of NJNG's $125 million , 5.6 percent notes that came due May 15, 2018 . This treasury lock was settled on March 13, 2018 , which coincided with the pricing of the new debt being issued. Settlement of the treasury lock resulted in a $2.6 million loss, which is recorded as a component of regulatory assets on the Unaudited Condensed Consolidated Balance Sheets and will be amortized in earnings over the term of the $125 million , 4.01 percent notes that were issued on May 11, 2018 . Clean Energy Ventures The Company elects NPNS accounting treatment on PPA contracts that Clean Energy Ventures enters into 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 certain contracts to be normal. Home Services and Other In January 2018 , NJR entered into a variable-for-fixed interest rate swap on its existing $100 million variable rate term loan, which fixed the variable rate at 2.84 percent . The swap will terminate on August 16, 2019 , which coincides with the maturity of the debt. The change in the fair value of the interest rate swap is recorded as a component of interest expense on the Unaudited Condensed Consolidated Statements of Operations. Fair Value of Derivatives The following table reflects the fair value of NJR's derivative assets and liabilities recognized on the Unaudited Condensed Consolidated Balance Sheets as of: Fair Value December 31, 2018 September 30, 2018 (Thousands) Balance Sheet Location Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments: Natural Gas Distribution: Physical commodity contracts Derivatives - current $ 1,555 $ 325 $ 85 $ 192 Financial commodity contracts Derivatives - current 3,529 2,335 94 — Energy Services: Physical commodity contracts Derivatives - current 10,626 26,976 7,667 18,158 Derivatives - noncurrent 1,255 19,947 3,930 11,316 Financial commodity contracts Derivatives - current 39,409 35,219 19,169 28,176 Derivatives - noncurrent 4,830 16,618 6,630 11,548 Foreign currency contracts Derivatives - current — 259 — 126 Derivatives - noncurrent — 260 — 118 Home Services and Other: Interest rate contracts Derivatives - current 239 — 381 — Total fair value of derivatives $ 61,443 $ 101,939 $ 37,956 $ 69,634 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, as well as the net amounts the Company could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to. (Thousands) Amounts Presented on Balance Sheets (1) Offsetting Derivative Instruments (2) Financial Collateral Received/Pledged (3) Net Amounts (4) As of December 31, 2018: Derivative assets: Energy Services Physical commodity contracts $ 11,881 $ (3,916 ) $ (200 ) $ 7,765 Financial commodity contracts 44,239 (35,549 ) 3,581 12,271 Total Energy Services $ 56,120 $ (39,465 ) $ 3,381 $ 20,036 Natural Gas Distribution Physical commodity contracts $ 1,555 $ — $ — $ 1,555 Financial commodity contracts 3,529 (2,335 ) (1,194 ) — Total Natural Gas Distribution $ 5,084 $ (2,335 ) $ (1,194 ) $ 1,555 Home Services and Other Interest rate contracts $ 239 $ — $ — $ 239 Total Home Services and Other $ 239 $ — $ — $ 239 Derivative liabilities: Energy Services Physical commodity contracts $ 46,923 $ (3,915 ) $ — $ 43,008 Financial commodity contracts 51,837 (35,549 ) (16,288 ) — Foreign currency contracts 519 — — 519 Total Energy Services $ 99,279 $ (39,464 ) $ (16,288 ) $ 43,527 Natural Gas Distribution Physical commodity contracts $ 325 $ — $ — $ 325 Financial commodity contracts 2,335 (2,335 ) — — Total Natural Gas Distribution $ 2,660 $ (2,335 ) $ — $ 325 As of September 30, 2018: Derivative assets: Energy Services Physical commodity contracts $ 11,597 $ (3,944 ) $ (200 ) $ 7,453 Financial commodity contracts 25,799 (18,775 ) — 7,024 Total Energy Services $ 37,396 $ (22,719 ) $ (200 ) $ 14,477 Natural Gas Distribution Physical commodity contracts $ 85 $ (3 ) $ — $ 82 Financial commodity contracts 94 — (94 ) — Total Natural Gas Distribution $ 179 $ (3 ) $ (94 ) $ 82 Home Services and Other Interest rate contracts $ 381 $ — $ — $ 381 Total Home Services and Other $ 381 $ — $ — $ 381 Derivative liabilities: Energy Services Physical commodity contracts $ 29,474 $ (3,944 ) $ — $ 25,530 Financial commodity contracts 39,724 (18,775 ) (20,949 ) — Foreign currency contracts 244 — — 244 Total Energy Services $ 69,442 $ (22,719 ) $ (20,949 ) $ 25,774 Natural Gas Distribution Physical commodity contracts $ 192 $ (3 ) $ — $ 189 Total Natural Gas Distribution $ 192 $ (3 ) $ — $ 189 (1) Derivative assets and liabilities are presented on a gross basis on the balance sheet 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. Energy Services utilizes financial derivatives to economically hedge the gross margin associated with the purchase of physical 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 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 Energy Services, although the Company's intended economic results relating to the entire transaction are unaffected. The following table reflects the effect of derivative instruments on the Unaudited Condensed Consolidated Statements of Operations as of: (Thousands) Location of gain (loss) recognized in income on derivatives Amount of gain (loss) recognized in income on derivatives Three Months Ended December 31, Derivatives not designated as hedging instruments: 2018 2017 Energy Services: Physical commodity contracts Operating revenues $ (1,532 ) $ 1,210 Physical commodity contracts Gas purchases (5,432 ) (22,697 ) Financial commodity contracts Gas purchases (2,956 ) (25,997 ) Foreign currency contracts Gas purchases (346 ) (48 ) Home Services and Other: Interest rate contracts Interest expense (123 ) — Total unrealized and realized losses $ (10,389 ) $ (47,532 ) NJNG’s derivative contracts are part of the Company's risk management activities that relate to its natural gas purchases, BGSS incentive programs and debt financing. These transactions are entered into pursuant to regulatory approval. 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 (losses) gains associated with NJNG's derivative instruments as of: Three Months Ended December 31, (Thousands) 2018 2017 Natural Gas Distribution: Physical commodity contracts $ 2,977 $ (2,976 ) Financial commodity contracts 4,396 (8,808 ) Interest rate contracts — (4,067 ) Total unrealized and realized gains (losses) $ 7,373 $ (15,851 ) NJNG and Energy Services had the following outstanding long (short) derivatives as of: Volume (Bcf) December 31, September 30, Natural Gas Distribution Futures 30.6 27.9 Physical 15.5 23.1 Energy Services Futures (5.9 ) (7.0 ) Physical 19.8 51.2 Not included in the previous table are Energy Services' gross notional amount of foreign currency transactions of approximately $7.3 million , NJR's interest rate swap, as previously discussed, and 748,000 SRECs at Energy Services that are open as of December 31, 2018 . 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 the Natural Gas Distribution and Energy Services segments. The balances are as follows: (Thousands) Balance Sheet Location December 31, September 30, Natural Gas Distribution Restricted broker margin accounts $ — $ 2,038 Accounts payable and other $ (757 ) $ — Energy Services Restricted broker margin accounts $ 85,784 $ 51,681 Wholesale Credit Risk NJNG, Energy Services and Clean Energy Ventures 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, SRECs, electricity and RECs, 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 (e.g., failed to deliver or pay for natural gas, SRECs, electricity or RECs), then the Company could sustain a loss. NJR 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 NJR's election not to extend credit or because exposure exceeds defined thresholds. Most of NJR'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 S&P or Moody's. In these cases, the counterparty's or guarantor's financial statements are reviewed, and similar methodologies and ratios used by S&P 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 December 31, 2018 . 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 Clean Energy Ventures residential solar installations. (Thousands) Gross Credit Exposure Investment grade $ 256,383 Noninvestment grade 51,076 Internally rated investment grade 51,914 Internally rated noninvestment grade 57,287 Total $ 416,660 Conversely, certain of NJNG's and Energy Services' 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. NJNG's credit rating, with respect to S&P, reflects the overall corporate credit profile of NJR. 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. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position on December 31, 2018 and September 30, 2018 , was $382,000 and $124,000 , respectively, for which the Company had not posted collateral. If all thresholds related to the credit-risk-related contingent features underlying these agreements had been invoked on December 31, 2018 and September 30, 2018 , the Company would have been required to post an additional $166,000 and $33,000 , respectively, to its counterparties. 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. |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Dec. 31, 2018 | |
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 loan receivables are recorded based on what the Company expects to receive, which approximates fair value. 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 at NJNG and NJR, including current maturities, excluding capital leases, debt issuance costs and solar asset financing obligations, is as follows: (Thousands) December 31, September 30, Carrying value (1) (2) (3) $ 1,172,045 $ 1,172,045 Fair market value $ 1,163,321 $ 1,158,051 (1) Excludes capital leases of $43.3 million and $35.9 million as of December 31, 2018 and September 30, 2018 , respectively. (2) Excludes NJNG's debt issuance costs of $6.4 million and $6.5 million as of December 31, 2018 and September 30, 2018 , respectively. (3) Excludes NJR's debt issuance costs of $1.1 million and $1.1 million as of December 31, 2018 and September 30, 2018 , respectively. NJR 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 December 31, 2018 , NJR discloses its debt within Level 2 of the fair value hierarchy. Fair Value Hierarchy NJR 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 include the following: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets. NJR'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 NJR refers internally to as basis swaps, fixed swaps, futures and financial options that are cleared through a 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. NJR'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). NJNG's treasury lock is also considered Level 2 as valuation is based on quoted market interest and swap rates as inputs to the valuation model. 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 NJR'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 December 30, 2018: Assets: Physical commodity contracts $ — $ 13,436 $ — $ 13,436 Financial commodity contracts 42,658 5,110 — 47,768 Interest rate contracts — 239 — 239 Investments in equity securities 33,174 — — 33,174 Other (1) 1,589 — — 1,589 Total assets at fair value $ 77,421 $ 18,785 $ — $ 96,206 Liabilities: Physical commodity contracts $ — $ 47,248 $ — $ 47,248 Financial commodity contracts 54,172 — — 54,172 Financial commodity contracts - foreign exchange — 519 — 519 Total liabilities at fair value $ 54,172 $ 47,767 $ — $ 101,939 As of September 30, 2018: Assets: Physical commodity contracts $ — $ 11,682 $ — $ 11,682 Financial commodity contracts 18,868 7,025 — 25,893 Interest rate contracts — 381 — 381 Investments in equity securities 32,917 — — 32,917 Other (1) 1,217 — — 1,217 Total assets at fair value $ 53,002 $ 19,088 $ — $ 72,090 Liabilities: Physical commodity contracts $ — $ 29,666 $ — $ 29,666 Financial commodity contracts 39,724 — — 39,724 Financial commodity contracts - foreign exchange — 244 — 244 Total liabilities at fair value $ 39,724 $ 29,910 $ — $ 69,634 (1) Includes money market funds. |
INVESTMENTS IN EQUITY INVESTEES
INVESTMENTS IN EQUITY INVESTEES | 3 Months Ended |
Dec. 31, 2018 | |
Investments, All Other Investments [Abstract] | |
INVESTMENTS IN EQUITY INVESTEES | 7. INVESTMENTS IN EQUITY INVESTEES NJR's investments in equity method investees include the following as of: (Thousands) December 31, September 30, Steckman Ridge (1) $ 116,346 $ 117,001 PennEast 75,842 73,865 Total $ 192,188 $ 190,866 (1) Includes loans with a total outstanding principal balance of $70.4 million for both December 31, 2018 and September 30, 2018 . The loans accrue interest at a variable rate that resets quarterly and are due October 1, 2023. The Company, through its subsidiary NJR Pipeline Company, is an investor in PennEast, which is expected to construct and operate a 120 -mile natural gas pipeline that will extend from northeast Pennsylvania to western New Jersey. PennEast has advised that it currently expects the pipeline to begin construction in late 2019 . However, construction could be delayed beyond 2019 due to factors that are beyond PennEast’s ability to control or estimate precisely, including potential delays in obtaining (or the inability to obtain) governmental and regulatory approvals and land-use rights, and unforeseen construction delays. NJNG and Energy Services have entered into storage and park and loan agreements with Steckman Ridge. In addition, NJNG has entered into a precedent capacity agreement with PennEast. See Note 15. Related Party Transactions for more information on these intercompany transactions. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Dec. 31, 2018 | |
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 December 31, (Thousands, except per share amounts) 2018 2017 Net income, as reported $ 86,248 $ 123,699 Basic earnings per share Weighted average shares of common stock outstanding-basic 88,547 86,996 Basic earnings per common share $0.97 $1.42 Diluted earnings per share Weighted average shares of common stock outstanding-basic 88,547 86,996 Incremental shares (1) 399 351 Weighted average shares of common stock outstanding-diluted 88,946 87,347 Diluted earnings per common share (2) $0.97 $1.42 (1) Incremental shares consist primarily of unvested stock awards and performance shares. (2) There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for fiscal 2019 and 2018 . |
COMMON STOCK EQUITY
COMMON STOCK EQUITY | 3 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
COMMON STOCK EQUITY | 9. COMMON STOCK EQUITY Changes in common stock equity during the three months ended December 31, 2018 , were as follows: (Thousands) Number of Shares Common Stock Premium on Common Stock Accumulated Other Comprehensive (Loss) Income Treasury Stock And Other Retained Earnings Total Balance at September 30, 2018 88,293 $ 226,196 $ 274,748 $ (12,610 ) $ (76,473 ) $ 1,007,117 $ 1,418,978 Net income 86,248 86,248 Other comprehensive income 234 234 Common stock issued: Incentive compensation plan 137 343 1,791 2,134 Dividend reinvestment plan (1) 82 454 3,238 3,692 Waiver discount 168 — 1,293 6,671 7,964 Cash dividend declared ($.2925 per share) (25,938 ) (25,938 ) Treasury stock and other — — 1,504 1,504 Adoption of ASU 2016-01 (2) (3,446 ) 3,446 — Adoption of ASU 2017-05 (2) 4,970 4,970 Adoption of ASU 2014-09/ASC 606 (2) (2,736 ) (2,736 ) Balance at December 31, 2018 88,680 $ 226,539 $ 278,286 $ (15,822 ) $ (65,060 ) $ 1,073,107 $ 1,497,050 Balance at September 30, 2017 86,556 $ 222,258 $ 219,696 $ (3,256 ) $ (70,039 ) $ 867,984 $ 1,236,643 Net income 123,699 123,699 Other comprehensive income (5,204 ) (5,204 ) Common stock issued: Incentive plan 525 1,453 13,951 15,404 Dividend reinvestment plan (1) 90 245 3,554 3,799 Waiver discount 554 1,384 21,306 22,690 Cash dividend declared ($.2725 per share) (23,831 ) (23,831 ) Treasury stock and other (250 ) (56 ) (25,374 ) (25,430 ) Balance at December 31, 2017 87,475 $ 225,095 $ 255,142 $ (8,460 ) $ (91,859 ) $ 967,852 $ 1,347,770 (1) Shares sold through the DRP are issued from treasury stock at average cost, which may differ from the actual market price paid. (2) See Note 2. Summary of Significant Accounting Policies - Recently Adopted Updates to the Accounting Standards Codification section for more details. NJR satisfies its external common equity requirements, if any, through issuances of its common stock, including the proceeds from stock issuances under its DRP. The DRP allows NJR, at its option, to use treasury shares or newly issued shares to raise capital. NJR raised approximately $8 million and $22.7 million of equity by issuing approximately 168,000 and 554,000 shares of common stock through the waiver discount feature of the DRP during the three months ended December 31, 2018 and 2017 , respectively. NJR also raised $3.7 million and $3.8 million of equity through the DRP by issuing approximately 82,000 and 90,000 shares of treasury stock, during the three months ended December 31, 2018 and 2017 , respectively. 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 December 31, 2018 and 2017 : (Thousands) Investments in Equity Securities Postemployment Benefit Obligation Total Balance at September 30, 2018 $ 3,446 $ (16,056 ) $ (12,610 ) Other comprehensive income, net of tax Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(96), $(96) — 234 (1) 234 Net current-period other comprehensive income, net of tax of $0, $(96), $(96) — 234 234 Reclassification to retained earnings (3,446 ) (2) — (3,446 ) Balance at December 31, 2018 $ — $ (15,822 ) $ (15,822 ) Balance as of September 30, 2017 $ 11,044 $ (14,300 ) $ (3,256 ) Other comprehensive income (loss), net of tax Other comprehensive (loss), before reclassifications, net of tax of $851, $0, $851 (2,290 ) — (2,290 ) Amounts reclassified from accumulated other comprehensive (loss) income, net of tax of $2,178, $(136), $2,042 (3,154 ) 240 (1) (2,914 ) Net current-period other comprehensive (loss) income, net of tax of $3,029, $(136), $2,893 (5,444 ) 240 (5,204 ) Balance as of December 31, 2017 $ 5,600 $ (14,060 ) $ (8,460 ) (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. (2) Due to the adoption of ASU No. 2016-01, an amendment to ASC 825, Financial Instruments . See Note 2. Summary of Significant Accounting Policies - Recently Adopted Updates to the Accounting Standards Codification section for more details. |
DEBT
DEBT | 3 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
DEBT | 10. 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 A summary of NJR's credit facility and NJNG's commercial paper program and credit facility are as follows: (Thousands) December 31, September 30, Expiration Dates NJR Bank revolving credit facilities (1) $ 425,000 $ 425,000 December 2023 Notes outstanding at end of period $ 280,000 $ 87,950 Weighted average interest rate at end of period 3.27 % 3.07 % Amount available at end of period (2) $ 139,823 $ 322,144 Bank revolving credit facilities (1) $ 100,000 $ — April 2019 Amount available at end of period $ 100,000 $ — NJNG Bank revolving credit facilities (1) $ 250,000 $ 250,000 December 2023 Commercial paper outstanding at end of period $ 91,700 $ 64,000 Weighted average interest rate at end of period 2.71 % 2.18 % Amount available at end of period (3) $ 157,569 $ 185,269 (1) Committed credit facilities, which require commitment fees on the unused amounts. (2) Letters of credit outstanding total $5.2 million and $14.9 million for December 31, 2018 and September 30, 2018 , respectively, which reduces amount available by the same amount. (3) Letters of credit outstanding total $731,000 for both December 31, 2018 and September 30, 2018 , which reduces the amount available by the same amount. On December 5, 2018 , NJNG entered into an Amended and Restated Credit Agreement governing a $250 million NJNG Credit Facility, which amended and restated an earlier $250 million revolving credit facility that was scheduled to expire on May 15, 2019 , but has now been terminated. The NJNG Credit Facility expires on December 5, 2023 , subject to two mutual options for a one -year extension beyond that date. The NJNG Credit Facility permits the borrowing of revolving loans and swingline loans, as well as the issuance of letters of credit. The NJNG Credit Facility also 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 $50 million up to a maximum of $100 million . On December 5, 2018 , NJR entered into an Amended and Restated Credit Agreement governing a $425 million NJR Credit Facility, which amended and restated an earlier $425 million revolving credit facility that was scheduled to expire on September 28, 2020 , and has now been terminated. The NJR Credit Facility expires on December 5, 2023 , subject to two mutual options for a one -year extension beyond that date. The NJR Credit Facility permits the borrowing of revolving loans and swingline loans, as well as the issuance of letters of credit. The NJR Credit Facility also includes an accordion feature, which would allow 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 minimum increments of $50 million up to a maximum of $250 million . Certain of NJR’s unregulated subsidiaries have guaranteed all of NJR’s obligations under the NJR Credit Facility. For accounting purposes, the Company treated both of the new credit facilities as a debt modification. On December 21, 2018 , NJR entered into a four -month, $100 million revolving line of credit facility, which expires on April 18, 2019 . As of December 31, 2018 , there were no borrowings against the facility. 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 or debt shelf facilities. Long-term Debt NJNG NJNG received $9.9 million and $7.8 million in December 2018 and 2017 , respectively, in connection with the sale-leaseback of its natural gas meters. NJNG records a capital lease obligation that is paid over the term of the lease and has the option to purchase the meters back at fair value upon expiration of the lease. NJNG exercised early purchase options with respect to certain outstanding meter leases by making final principal payments of $1.1 million during both the three months ended December 31, 2018 and 2017 . |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | 11. EMPLOYEE BENEFIT PLANS Pension and Other Postemployment Benefit Plans 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 Three Months Ended December 31, December 31, (Thousands) 2018 2017 2018 2017 Service cost $ 1,845 $ 2,035 $ 1,101 $ 1,152 Interest cost 3,043 2,623 2,081 1,591 Expected return on plan assets (4,763 ) (4,910 ) (1,379 ) (1,338 ) Recognized actuarial loss 1,441 1,884 1,617 1,165 Prior service cost amortization 25 27 (91 ) (91 ) Net periodic benefit cost $ 1,591 $ 1,659 $ 3,329 $ 2,479 The Company does not expect to be required to make additional contributions to fund the pension plans during fiscal 2019 or 2020 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 three months ended December 31, 2018 and 2017 . |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 12. 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, NJR considers forecasted annual pre-tax income and estimated permanent book versus tax differences, as well as tax credits associated with solar and wind projects. For investment tax credits, the estimate is based on solar projects that are probable of being completed and placed in service during the current fiscal year based on the best information available at each reporting period. For production tax credits, the estimate is based on the forecast of electricity produced during the current fiscal year based on the best information available at each reporting period. 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 unrecognized tax benefits. During the three months ended December 31, 2018 and 2017 , the Company determined there was no need to recognize any liabilities associated with uncertain tax positions. The Tax Act On December 22, 2017, the President signed into law the Tax Act. The law made several changes to the Internal Revenue Code of 1986, as amended, the most impactful to the Company of which was a reduction in the federal corporate income tax rate from 35 percent to 21 percent that became effective January 1, 2018. Since the Company's fiscal year end is September 30, it is required by the Internal Revenue Code to calculate a statutory rate based upon the federal tax rates in effect before and after the effective date of the change in the taxable year that includes the effective date. Accordingly, the Company applied a federal statutory tax rate of 24.5 percent during fiscal 2018 and as of October 1, 2018, uses the enacted rate of 21 percent . As a result of the changes associated with the Tax Act, the Company recognized a tax benefit of $57.6 million during the three months ended December 31, 2017 . Effective Tax Rate The forecasted effective tax rates were (7.2) percent and 13.9 percent , for the three months ended December 31, 2018 and 2017 , respectively. The decrease in the effective tax rate, when compared with the prior fiscal year, is due primarily to a decrease in forecasted pre-tax income combined with the lower federal statutory rate, and an increase in forecasted tax credits for the fiscal year ending September 30, 2019 . Forecasted tax credits, net of deferred income taxes, were $47.7 million and $21.9 million for fiscal 2019 and 2018 , respectively. To the extent there are discrete tax items that are not included in the forecasted effective tax rate, the actual effective tax rate will differ from the estimated annual effective tax rate. The Company recognized $1.3 million and $2.8 million during the three months ended December 31, 2018 and 2017 , respectively, in excess tax benefits associated with the vesting of share-based awards, as a component of income tax (benefit) provision in its Unaudited Condensed Consolidated Statements of Operations. As a result of these discrete items, NJR’s actual effective tax rate was (8.8) percent and (68.2) percent during the three months ended December 31, 2018 and 2017 , respectively. Other Tax Items As of December 31, 2018 and September 30, 2018 , the Company has federal income tax net operating losses of approximately $136.8 million . Federal net operating losses can generally be carried back two years and forward 20 years and will begin to expire in fiscal 2036, with the remainder expiring by 2038. The Company expects to exercise its ability to carryback federal net operating losses to offset taxable income in prior periods. For the net operating losses it expects to carryback, the Company estimated the portion considered refundable and recorded receivables of approximately $23 million as of December 31, 2018 and September 30, 2018, as a component of other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets. Upon filing amended federal income tax returns to carryback its remaining federal net operating losses totaling $24.5 million , the Company will reduce its taxable income in those periods and recapture federal investment tax credits of the same amount that were previously utilized to offset taxable income. In addition, as of December 31, 2018 and September 30, 2018 , the Company had ITC/PTC carryforwards of approximately $145.4 million and $121.1 million , respectively, which each have a life of 20 years. When the Company carries back the federal net operating losses noted above, it expects to recapture investment tax credits totaling $24.5 million . These recaptured tax credits are in addition to the $145.4 million and will be carried forward to offset future taxable income. The Company expects to utilize this entire carryforward, which would begin to expire in fiscal 2033. As of December 31, 2018 and September 30, 2018 , the Company has state income tax net operating losses of approximately $577.4 million and $578.8 million , respectively. These state net operating losses have varying carry forward periods dictated by the state in which they were incurred. These state carry forward periods range from seven to 20 years and would begin to expire in fiscal 2021, with the majority expiring after 2035. In March 2018, Clean Energy Ventures committed to a plan to sell its wind assets. As a result of the planned sale it is more likely than not that certain state net operating loss carryforwards will not be realizable prior to their expiration. The Company had a valuation allowance of $4.1 million and $4 million as of December 31, 2018 and September 30, 2018 , respectively, related to state net operating loss carryforwards in Montana, Iowa and Kansas. The remaining state income tax net operating losses are expected to be utilized prior to expiration. In March 2018 , the State of New Jersey notified the Company that it will conduct a general tax examination for fiscal years 2014 through 2017 related to NJRHS. All periods subsequent to those ended September 30, 2013, are statutorily open to examination. The Consolidated Appropriations Act extended the 30 percent ITC for solar property that is under construction on or before December 31, 2019. The credit will decline to 26 percent for property under construction during 2020 and to 22 percent for property under construction during 2021. For any property that is under construction before 2022, but not placed in service before 2024, the ITC will be reduced to 10 percent. In addition, the Consolidated Appropriations Act retroactively extended the PTC for five years through December 31, 2019, with a gradual three year phase out for any project for which construction of the facility began after December 31, 2016. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 3 Months Ended |
Dec. 31, 2018 | |
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 2024 , for the supply, storage and transportation of natural gas. These contracts include annual fixed charges of approximately $91.2 million 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, the Energy Services segment enters into storage and pipeline capacity contracts, which require the payment of certain demand charges by Energy Services 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 December 31, 2018 , for natural gas purchases and future demand fees for the next five fiscal year periods are as follows: (Thousands) 2019 2020 2021 2022 2023 Thereafter Energy Services: Natural gas purchases $ 361,898 $ 34,959 $ 11,382 $ — $ — $ — Storage demand fees 23,503 21,011 13,866 9,229 4,433 1,339 Pipeline demand fees 44,768 60,611 30,310 25,079 19,454 5,559 Sub-total Energy Services $ 430,169 $ 116,581 $ 55,558 $ 34,308 $ 23,887 $ 6,898 NJNG: Natural gas purchases $ 46,150 $ 38,422 $ 33,861 $ 34,460 $ 35,278 $ 37,067 Storage demand fees 25,402 27,318 14,251 12,930 7,899 6,066 Pipeline demand fees 65,761 87,556 96,417 92,527 87,316 616,054 Sub-total NJNG $ 137,313 $ 153,296 $ 144,529 $ 139,917 $ 130,493 $ 659,187 Total $ 567,482 $ 269,877 $ 200,087 $ 174,225 $ 154,380 $ 666,085 Legal Proceedings Manufactured Gas Plant Remediation NJNG is responsible for the remedial cleanup of five 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 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 Administrative Consent Orders or Memoranda of Agreement with the NJDEP. NJNG recovers its remediation expenditures, including carrying costs, over rolling seven -year periods pursuant to a RAC approved by the BPU. In July 2018 , the BPU approved NJNG's annual SBC filing requesting a reduction in the RAC, which decreased the annual recovery from $9.4 million to $7 million , effective September 1, 2018 . As of December 31, 2018 , $32.8 million 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 has had discussions with the NJDEP regarding its association with certain parcels of land, located within NJNG's service territory, upon which former MGP operations may have been located in the late 1800s or early 1900s. NJNG is investigating to determine the nature and extent of its relationship to the parcels, its previous owners and the operations conducted on the respective sites, and has accrued for known costs associated with the preliminary investigation of the existence of potential contaminants there on. NJNG will continue to gather information to determine whether a potential obligation exists to undertake remedial action, if any, and whether there are other potentially responsible parties. NJNG periodically, and at least annually, performs an environmental review of MGP sites located in Atlantic Highlands, Berkeley, Long Branch, Manchester and Toms River, 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 to remediate and monitor the five 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 $117.7 million to $204.1 million . 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, NJNG recorded an MGP remediation liability and a corresponding regulatory asset on the Unaudited Condensed Consolidated Balance Sheets of $130.8 million as of September 30, 2018 , based on the most likely amount at year end and $129.6 million as of December 31, 2018 , which includes adjustments for actual expenditures during fiscal 2019 . 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 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, NJR 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. NJR also discloses contingent matters for which there is a reasonable possibility of a loss. Based upon currently available information, NJR believes that the results of litigation that is 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 NJR’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. Certain of the Company’s significant litigation is described below. Stafford Township In February 2015, a natural gas fire and explosion occurred in Stafford Township, New Jersey as a result of a natural gas leak emanating from an underground pipe. There were no fatalities, although several employees of NJNG were injured and several homes were damaged. NJNG notified its insurance carrier and believes that any costs associated with the incident, including attorneys’ fees, property damage and other losses, will be substantially covered by insurance. The Company believes the resolution of the remaining claims associated with the incident will not have a material effect on its financial condition, results of operations or cash flows. Certain non-subrogated property damage claims asserted against the Company and co-defendants and cross-claims have been settled subject to documentation in January 2019. The settlements will not have a material impact on the Company's financial position or results from operation. |
REPORTING SEGMENT AND OTHER OPE
REPORTING SEGMENT AND OTHER OPERATIONS DATA | 3 Months Ended |
Dec. 31, 2018 | |
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: the Natural Gas Distribution segment consists of regulated energy and off-system, capacity and storage management operations; the Clean Energy Ventures segment consists of capital investments in clean energy projects; the Energy Services segment consists of unregulated wholesale and retail energy operations; the Midstream segment consists of the Company’s investments in natural gas transportation and storage facilities; the Home Services and Other 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 is detailed below: Three Months Ended December 31, (Thousands) 2018 2017 Operating revenues Natural Gas Distribution External customers $ 199,965 $ 209,787 Clean Energy Ventures External customers 14,897 13,996 Energy Services External customers (1) 584,960 472,171 Intercompany 2,307 5,810 Subtotal 802,129 701,764 Home Services and Other External customers 11,945 9,351 Intercompany 545 606 Eliminations (2,852 ) (6,416 ) Total $ 811,767 $ 705,305 Depreciation and amortization Natural Gas Distribution $ 13,896 $ 12,783 Clean Energy Ventures 7,923 8,935 Energy Services (2) 27 14 Midstream 1 1 Subtotal 21,847 21,733 Home Services and Other 221 188 Eliminations (236 ) (67 ) Total $ 21,832 $ 21,854 Interest income (3) Natural Gas Distribution $ 199 $ 119 Midstream 1,056 664 Subtotal 1,255 783 Home Services and Other 436 204 Eliminations (1,492 ) (931 ) Total $ 199 $ 56 (1) Includes sales to Canada, which are immaterial. (2) The amortization of acquired wholesale energy contracts is excluded above and is included in 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. Three Months Ended December 31, (Thousands) 2018 2017 Interest expense, net of capitalized interest Natural Gas Distribution $ 6,103 $ 6,536 Clean Energy Ventures 5,428 4,208 Energy Services 1,887 1,257 Midstream 543 309 Subtotal 13,961 12,310 Home Services and Other 392 90 Eliminations (867 ) (495 ) Total $ 13,486 $ 11,905 Income tax provision (benefit) Natural Gas Distribution $ 5,830 $ 11,704 Clean Energy Ventures (23,204 ) (73,988 ) Energy Services 9,644 13,743 Midstream 962 (12,843 ) Subtotal (6,768 ) (61,384 ) Home Services and Other (192 ) 11,698 Eliminations (1 ) (482 ) Total $ (6,961 ) $ (50,168 ) Equity in earnings of affiliates Midstream $ 3,801 $ 4,129 Eliminations (640 ) (865 ) Total $ 3,161 $ 3,264 Net financial earnings (loss) Natural Gas Distribution $ 31,713 $ 34,109 Clean Energy Ventures 10,205 71,250 Energy Services 8,370 20,274 Midstream 3,651 17,511 Subtotal 53,939 143,144 Home Services and Other 76 (7,716 ) Eliminations 78 (95 ) Total $ 54,093 $ 135,333 Capital expenditures Natural Gas Distribution $ 59,755 $ 47,390 Clean Energy Ventures 32,126 18,387 Midstream 1,689 — Subtotal 93,570 65,777 Home Services and Other 731 1,313 Total $ 94,301 $ 67,090 Investments in equity investees Midstream $ — $ 7,202 Total $ — $ 7,202 The Chief Executive Officer, who uses NFE as a measure of profit or loss in measuring the results of the Company's segments and 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 December 31, (Thousands) 2018 2017 Net financial earnings (1) $ 54,093 $ 135,333 Less: Unrealized (gain) loss on derivative instruments and related transactions (10,932 ) 34,855 Tax effect 2,583 (8,059 ) Effects of economic hedging related to natural gas inventory (21,611 ) (25,387 ) Tax effect 5,136 8,244 Net income to NFE tax adjustment (7,331 ) 1,981 Net income (1) $ 86,248 $ 123,699 (1) Includes income tax benefit related to the Tax Act of $57.6 million , for the three months ended December 31, 2017 . The Company uses derivative instruments as economic hedges of purchases and sales of physical 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 gas related to physical gas flow is recognized when the gas is delivered to customers. Consequently, there is a mismatch in the timing of earnings recognition between the economic hedges and physical gas flows. Timing differences occur in two ways: • unrealized gains and losses on derivatives are recognized in reported earnings in periods prior to physical 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 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 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. Additionally, 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 gas flows. Included in the tax effects are current and deferred income tax expense corresponding with the NFE. Also included in the tax effects during the three months ended December 31, 2017 , are the impacts of the Tax Act and resulting revaluation of the deferred income taxes that arose from derivative and hedging activity as measured under NFE. The revaluation caused the effective tax rate on reconciling items to differ from the statutory rate in effect for the quarter. NJR also calculates a quarterly tax adjustment based on an estimated annual effective tax rate for NFE purposes. The Company's assets for the various business segments and business operations are detailed below: (Thousands) December 31, September 30, Assets at end of period: Natural Gas Distribution $ 2,785,817 $ 2,663,054 Clean Energy Ventures (1) 902,485 865,018 Energy Services 583,876 396,852 Midstream 245,246 242,069 Subtotal 4,517,424 4,166,993 Home Services and Other 120,820 114,732 Intercompany assets (2) (160,922 ) (138,061 ) Total $ 4,477,322 $ 4,143,664 (1) Includes assets held for sale of $207.7 million and $206.9 million for December 31, 2018 and September 30, 2018 , respectively. (2) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 15. RELATED PARTY TRANSACTIONS Effective April 1, 2010 , NJNG entered into a 10 -year agreement for 3 Bcf of firm storage capacity with Steckman Ridge. Under the terms of the agreement, NJNG incurs demand fees at market rates of approximately $9.3 million 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. Energy Services may periodically enter into storage or park and loan agreements with its affiliated FERC-jurisdictional natural gas storage facility, Steckman Ridge. As of December 31, 2018 , Energy Services has entered into transactions with Steckman Ridge for varying terms, all of which expire by October 31, 2020 . Demand fees, net of eliminations, associated with Steckman Ridge were as follows: Three Months Ended December 31, (Thousands) 2018 2017 Natural Gas Distribution $ 1,473 $ 1,448 Energy Services 712 701 Total $ 2,185 $ 2,149 The following table summarizes demand fees payable to Steckman Ridge as of: (Thousands) December 31, September 30, Natural Gas Distribution $ 775 $ 775 Energy Services 375 375 Total $ 1,150 $ 1,150 NJNG and Energy Services have entered into various asset management agreements, the effects of which are eliminated in consolidation. Under the terms of these agreements, NJNG releases certain transportation and storage contracts to Energy Services. As of December 31, 2018 , NJNG and Energy Services had four asset management agreements with expiration dates ranging from March 31, 2019 through October 31, 2020 . NJNG has entered into a 15 -year transportation precedent agreement for committed capacity of 180,000 Dths per day with PennEast, to commence when PennEast is in service. |
ACQUISITION
ACQUISITION | 3 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
ACQUISITION | 16. ACQUISITION In October 2017 , Adelphia, an indirect wholly owned subsidiary of NJR, entered into a Purchase and Sale Agreement with Talen pursuant to which Adelphia will acquire all of Talen’s membership interests in IEC for a base purchase price of $166 million . As additional consideration, Adelphia will pay Talen specified amounts of up to $23 million contingent upon the achievement of certain regulatory approvals and binding natural gas capacity commitments. In November 2017, the Company made an initial payment of $10 million towards the base purchase price, which is included in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets. IEC owns an existing 84 -mile pipeline in southeastern Pennsylvania. The transaction is expected to close during fiscal 2019, following receipt of necessary permits and regulatory actions including those from the FERC and the Pennsylvania Public Utility Commission. Upon the closing, Adelphia will acquire IEC and, with it, IEC’s existing pipeline, related assets and rights of way. Adelphia has also agreed to provide firm natural gas transportation service for ten years following the closing to two power generators owned by affiliates of Talen that are currently served by IEC. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Available for Sale Securities | Investments in Equity Securities Investments in equity securities are carried at fair value on the Unaudited Condensed Consolidated Balance Sheets. For the fiscal year ended September 30, 2018, total unrealized gains and losses associated with equity securities were included as a part of accumulated other comprehensive income, a component of common stock equity, and reclassifications of realized gains or losses out of other comprehensive income into earnings were recorded in other income, net on the Unaudited Condensed Consolidated Statements of Operations, based on average cost. On October 1, 2018, the Company adopted ASU No. 2016-01, an amendment to ASC 825, Financial Instruments . As a result, unrealized gains and losses are recorded in other income, net on the Unaudited Condensed Consolidated Statements of Operations, based on average cost. As of September 30, 2018 , the Company's investments in equity securities had a fair value of $32.9 million , and total unrealized gains were $4.7 million , $3.4 million , net of deferred income tax expense. These amounts were reclassified from accumulated other comprehensive income to retained earnings upon adoption of ASU No. 2016-01. As a result, unrealized gains and losses are recorded in other income, net on the Unaudited Condensed Consolidated Statements of Operations, based on average cost. |
Loans Receivable | Loans Receivable NJNG currently provides loans, with terms ranging from three 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 net present value on the Unaudited Condensed Consolidated Balance Sheets. The Company recorded $10.8 million and $10.4 million in other current assets and $39.4 million and $39.5 million in other noncurrent assets as of December 31, 2018 and September 30, 2018 , respectively, on the Unaudited Condensed Consolidated Balance Sheets, related to the loans. If NJNG determines a loan is impaired, the basis of the loan would be subject to regulatory review for recovery. As of December 31, 2018 and September 30, 2018 , the Company has not recorded an allowance for doubtful accounts for SAVEGREEN loans. |
Reclassification | Reclassification Certain prior period amounts related to the deferred income tax benefit due to the Tax Act and restricted cash on the Unaudited Condensed Consolidated Statements of Cash Flows and compensation costs on the Unaudited Condensed Consolidated Statements of Operations were reclassified to conform to the current period presentation due to the adoption of various ASUs listed below. |
Recently Adopted Updates to the Accounting Standards Codification | Recently Adopted Updates to the Accounting Standards Codification Revenue In May 2014, the FASB issued ASU No. 2014-09, and added ASC 606, Revenue from Contracts with Customers , to the ASC. ASC 606 supersedes ASC 605, Revenue Recognition , as well as most industry-specific guidance, and prescribes a single, comprehensive revenue recognition model designed to improve financial reporting comparability across entities, industries, jurisdictions and capital markets. The Company adopted the new guidance in the first quarter of fiscal 2019 and applied the new provisions on a modified retrospective basis. The Company recorded a cumulative-effect adjustment of $3.8 million , $2.7 million net of deferred income taxes, to retained earnings at Home Services and Other. As of October 1, 2018, NJRHS recognizes contract revenue on a straight line basis over the term of the contract. Previously, contract revenue was recognized over the term of the service contract based on expected demand for services. Revenue for the three months ended December 31, 2018 for Home Services and Other after adopting ASC 606 was $12.5 million , as opposed to $10.1 million under ASC 605, representing a $2.4 million increase in revenue recognition. The Company 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 on a net basis in operating revenues on the Unaudited Condensed Consolidated Statements of Operations. Operating revenue for the Company would have included $14.4 million related to sales tax for the three months ended December 31, 2018. There was no additional impact on the Company’s financial position, results of operations or cash flows. The Company concluded that its tariff-based sales of natural gas are within the scope of the new guidance and the adoption did not result in any modification to the pattern of revenue recognition from such sales. Revenues from derivative instruments, such as those related to the Company’s SREC sales and natural gas purchases and sales will continue to be accounted for under ASC 815 and thus are outside the scope of ASC 606. Additionally, NJNG revenues generated by the CIP have been determined to be alternative revenue programs under ASC 980 and are also outside the scope of ASC 606, as they are deemed to be a contract with the BPU. The Company also evaluated its renewable asset PPA arrangements and determined that no modification to the pattern of revenue recognition of the related electricity, capacity and REC sales was necessary. Revenues from RECs sold as part of a bundled arrangement continue to be recognized in the same period as the related generation. Based on the completion of the Company’s evaluation and assessment of its revenue streams, the Company concluded that the new guidance did not have a material impact on its financial position, results of operations or cash flows. ASC 606 requires expanded disclosures, including the disclosure of performance obligations, disaggregated revenues and contract balances, which is included in Note 3. Revenue . Statement of Cash Flows In August 2016, the FASB issued ASU No. 2016-15, an amendment to ASC 230, Statement of Cash Flows , which addresses eight specific cash flow issues for which there has been diversity in practice. The Company adopted this guidance in the first quarter of fiscal 2019 and applied the new provisions on a retrospective basis, which did not impact its statement of cash flows. In November 2016, the FASB issued ASU No. 2016-18, an amendment to ASC 230, Statement of Cash Flows , which requires that any amounts that are deemed to be restricted cash or restricted cash-equivalents be included in cash and cash-equivalent balances on the cash flow statement and, therefore, transfers between cash and restricted cash accounts will no longer be recognized within the statement of cash flows. The Company adopted this guidance in the first quarter of fiscal 2019 and applied the new provisions on a retrospective basis, which did not materially impact its statement of cash flows. Accordingly, 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) December 31, September 30, December 31, September 30, Balance Sheet Cash and cash equivalents $ 7,694 $ 1,458 $ 4,738 $ 2,226 Restricted cash in other noncurrent assets 315 252 286 243 Statements of Cash Flow Cash, cash equivalents and restricted cash in the statement of cash flows $ 8,009 $ 1,710 $ 5,024 $ 2,469 Financial Instruments In January 2016, the FASB issued ASU No. 2016-01, an amendment to ASC 825, Financial Instruments , to address certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. The standard affects investments in equity securities that do not result in consolidation and are not accounted for under the equity method and the presentation of certain fair value changes for financial liabilities measured at fair value. It also simplifies the impairment assessment of equity investments without a readily determinable fair value by requiring a qualitative assessment. The Company adopted this guidance in the first quarter of fiscal 2019 and applied the new provisions on a modified retrospective basis which resulted in the reclassification of $4.7 million , $3.4 million net of deferred income tax expense, to the opening balance of retained earnings from accumulated other comprehensive income related to investments in equity securities. Subsequent changes to the fair value of the Company’s investments in equity securities are recorded in other income, net in the Unaudited Condensed Consolidated Statement of Operations. Business Combinations In January 2017, the FASB issued ASU No. 2017-01, an amendment to ASC 805, Business Combinations , clarifying the definition of a business in the ASC, which is intended to reduce the complexity surrounding the assessment of a transaction as an asset acquisition or business combination. The amendment provides an initial fair value screen to reduce the number of transactions that would fit the definition of a business, and when the screen threshold is not met, provides an updated model that further clarifies the characteristics of a business. The Company adopted this guidance in the first quarter of fiscal 2019 and the new provisions will be applied on a prospective basis. The amendment could potentially have material impacts on future transactions that the Company may enter into by altering the Company’s conclusion on the accounting framework that is applied to acquisitions. Gains and Losses from the Derecognition of Nonfinancial Assets In February 2017, the FASB issued ASU No. 2017-05, an amendment to ASC 610-20, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets , which clarifies the scope and accounting related to the derecognition of nonfinancial assets, including partial sales and contributions of nonfinancial assets to a joint venture or other non-controlled investee. The Company adopted this guidance in the first quarter of 2019, concurrently with ASC 606, and applied the new provisions on a modified retrospective basis through a cumulative effect adjustment of $6.8 million , $5 million net of deferred income tax expense, to the opening balance of retained earnings related to a transfer of a nonfinancial asset that was previously recorded as a deferred gain on the Unaudited Condensed Consolidated Balance Sheets. Compensation - Retirement Benefits In March 2017, the FASB issued ASU No. 2017-07, an amendment to ASC 715, Compensation - Retirement Benefits , which changes the presentation of net periodic benefit cost on the income statement by requiring companies to present all components of net periodic benefit cost, other than service cost, outside a subtotal of income from operations. The amendment also states that only the service cost component of net periodic benefits costs is eligible for capitalization, when applicable. The amendment establishes a practical expedient that permits entities to use their previously disclosed service and other costs in their pension and other postretirement benefit plan footnotes in the prior comparative periods as the estimation basis when applying the retrospective presentation of these costs in the income statement. The Company adopted this guidance in the first quarter of 2019, and applied the new provisions on a retrospective basis for income statement presentation, and is applying the new provisions on a prospective basis for changes to capitalization of costs. Accordingly, the following amounts on the Unaudited Condensed Consolidated Statement of Operations for the three months ended December 31, 2017, have been adjusted: (Thousands) As Previously Reported Effect of Change As Adjusted Statements of Operations Operation and maintenance $ 55,111 $ (951 ) $ 54,160 Total operating expenses $ 630,060 $ (951 ) $ 629,109 Operating income $ 75,245 $ 951 $ 76,196 Other income (expense), net $ 6,927 $ (951 ) $ 5,976 The changes related to the costs that will be eligible for capitalization will not have a material impact on the Company's financial position, results of operations or cash flows upon adoption. There was no additional impact to the Company's financial position, results of operations or cash flows. Stock Compensation In May 2017, the FASB issued ASU No. 2017-09, an amendment to ASC 718, Compensation - Stock Compensation , which clarifies the accounting for changes to the terms or conditions of share-based payments. The Company adopted this guidance in the first quarter of fiscal 2019, and will apply the new provisions prospectively to awards modified on or after October 1, 2018. There was no impact to the Company's financial position, results of operations or cash flows upon adoption. Other Recent Updates to the Accounting Standards Codification Leases In February 2016, the FASB issued ASU No. 2016-02, an amendment to ASC 842, Leases , which provides for a comprehensive overhaul of the lease accounting model and changes the definition of a lease within the accounting literature. Under the new standard, all leases with a term greater than one year will be recorded on the balance sheet. Amortization of the related asset will be accounted for using one of two approaches prescribed by the guidance. Additional disclosures will be required to allow the user to assess the amount, timing and uncertainty of cash flows arising from leasing activities. A modified retrospective transition approach is required for leases existing at the time of adoption. In January 2018, the FASB issued ASU No. 2018-01, a further amendment to ASC 842, Leases , which was introduced by ASU No. 2016-02, as discussed above. This update provides an optional practical expedient that allows companies to not evaluate existing or expired land easements that were not previously accounted for under Topic 840 as leases. The Company expects to elect this practical expedient upon adoption. The guidance is effective for the Company beginning October 1, 2019. In July 2018, the FASB issued ASU No. 2018-11, which provides an optional transition method to ASC 842 that allows the Company to recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. At this time, the Company does not plan to early adopt the new guidance and expects to transition on a modified retrospective basis. The Company is currently in the process of reviewing its contracts to identify all of its leases and evaluating its lease population. The Company’s operating leases primarily consist of office and land leases related to solar and wind assets. While the Company is currently evaluating the full impact of the standard and its related updates, it expects to recognize right-of-use assets and liabilities arising from current operating leases on its statement of financial position upon adoption, however, these amounts are not reasonably estimable at this time. The Company does not expect the amendments to the standard to have any impact on its results of operations or cash flows. Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, an amendment to ASC 326, Financial Instruments - Credit Losses , which changes the impairment model for certain financial assets that have a contractual right to receive cash, including trade and loan receivables. The new model requires recognition based upon an estimation of expected credit losses rather than recognition of losses when it is probable that they have been incurred. An entity will apply the amendment through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The guidance is effective for the Company beginning October 1, 2020, with early adoption permitted. The Company is currently evaluating the amendment to understand the impact on its financial position, results of operations and cash flows upon adoption and will apply the new guidance to its trade and loan receivables on a modified retrospective basis. Derivatives and Hedging In August 2017, the FASB issued ASU No. 2017-12, an amendment to ASC 815 , Derivatives and Hedging , which is intended to make targeted improvements to the accounting for hedging activities by better aligning an entity’s risk management activities and financial reporting for hedging relationships. These amendments modify the accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. Additionally, the amendments are intended to simplify the application of the hedge accounting guidance and provide relief to companies by easing certain hedge documentation requirements. The guidance is effective for the Company beginning October 1, 2019, with early adoption permitted. Upon adoption, the transition requirements and elections will be applied to hedging relationships existing on the date of adoption. The Company does not currently apply hedge accounting to any of its risk management activities and thus does not expect the amendments to have any impact on its financial position, results of operations and cash flows upon adoption. In October 2018, the FASB issued ASU No. 2018-16, an amendment to ASC 815, Derivatives and Hedging , which permits the use of the Overnight Swap Index rate based on the Secured Overnight Financing Rate as an additional acceptable U.S. benchmark interest rate for hedge accounting purposes. The guidance is effective for the Company beginning October 1, 2019, with early adoption permitted. The Company does not currently apply hedge accounting to any of its risk management activities and thus does not expect the amendments to have any impact on its financial position, results of operations and cash flows upon adoption. Stock Compensation In June 2018, the FASB issued ASU No. 2018-07, an amendment to ASC 718, Compensation - Stock Compensation , which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. The guidance is effective for the Company beginning October 1, 2019, with early adoption permitted. The Company is currently evaluating the impact of the amendment on the Company’s financial position, results of operations and cash flows upon adoption. Fair Value In August 2018, the FASB issued ASU No. 2018-13, an amendment to ASC 820, Fair Value Measurement , which removes, modifies and adds to certain disclosure requirements of fair value measurements. Disclosure requirements removed include the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. Modifications include considerations around the requirement to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse. The additions include the requirement to disclose changes in unrealized gains and losses for the period in other comprehensive income for recurring Level 3 fair value measurements held and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The guidance is effective for the Company beginning October 1, 2020, with early adoption permitted. Upon adoption, the amendments will be applied on a prospective or retrospective basis depending on the specific amendments’ transition requirements. The Company is currently evaluating the amendments to understand the impact on its financial position, results of operations, cash flows and disclosures upon adoption and will apply the new guidance. Compensation - Retirement Benefits In August 2018, the FASB issued ASU No. 2018-14, an amendment to ASC 715, Compensation - Retirement Benefits , which removes disclosures that no longer are considered cost-beneficial, clarifies the specific requirements of certain disclosures and adds new disclosure requirements identified as relevant. The guidance is effective for the Company beginning October 1, 2021, with early adoption permitted. Upon adoption, the amendments will be applied on a retrospective basis. The Company is continuing to evaluate the amendment to fully understand the impact on the Company's disclosures upon adoption. Intangibles In August 2018, the FASB issued ASU No. 2018-15, an amendment to ASC 350, Intangibles - Goodwill and Other , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance is effective for the Company beginning October 1, 2020, with early adoption permitted. Upon adoption, the amendment can be applied either on a prospective or retrospective basis. The Company is currently evaluating the amendments to understand the impact on its financial position, results of operations, cash flows and disclosures upon adoption. |
Derivative Instruments | Clean Energy Ventures The Company elects NPNS accounting treatment on PPA contracts that Clean Energy Ventures enters into 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 certain contracts to be normal. 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, the Company may utilize foreign currency derivatives to hedge Canadian dollar denominated 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. 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 NJR's derivative instruments, see Note 6. Fair Value . Energy Services Energy Services 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 gas purchases or operating revenues, as appropriate for Energy Services, on the Unaudited Condensed Consolidated Statements of Operations as unrealized gains or losses. For Energy Services at settlement, realized gains and losses on all financial derivative instruments are recognized as a component of 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 gas purchases or operating revenues. Energy Services 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. Energy Services may utilize foreign currency derivatives to lock in the exchange rate 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 gas purchase agreements. As a result of Energy Services 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 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. For transactions occurring on or before December 31, 2015, the Company elected NPNS accounting treatment on SREC forward and futures contracts. Effective January 1, 2016, on a prospective basis, Energy Services no longer elects NPNS accounting treatment on SREC contracts entered into from January 1, 2016, and 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. NPNS is a contract-by-contract election and, where appropriate, the Company can and may elect normal accounting for certain contracts. 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. Effective for contracts executed on or after January 1, 2016, NJNG no longer elects NPNS accounting treatment on all physical forward commodity contracts. However, since NPNS is a contract-by-contract election, where it makes sense to do so, NJNG can and may elect certain contracts to be 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 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. |
Fair Value Hierarchy | Fair Value Hierarchy NJR 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 include the following: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets. NJR'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 NJR refers internally to as basis swaps, fixed swaps, futures and financial options that are cleared through a 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. NJR'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). NJNG's treasury lock is also considered Level 2 as valuation is based on quoted market interest and swap rates as inputs to the valuation model. 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 NJR's best estimate of fair value and are derived primarily through the use of internal valuation methodologies. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Gas in Storage | The following table summarizes gas in storage, at average cost by segment as of: December 31, 2018 September 30, 2018 ($ in thousands) Gas in Storage Bcf Gas in Storage Bcf Energy Services $ 148,746 38.4 $ 90,166 34.1 Natural Gas Distribution 92,643 20.8 94,467 24.9 Total $ 241,389 59.2 $ 184,633 59.0 |
Accounts Receivable by Subsidiary | Customer accounts receivable include outstanding billings from the following subsidiaries as of: (Thousands) December 31, September 30, Energy Services $ 237,790 75 % $ 157,936 77 % Natural Gas Distribution (1) 73,748 23 39,151 19 Clean Energy Ventures 3,574 1 3,330 2 Home Services and Other Operations 2,996 1 5,073 2 Total $ 318,108 100 % $ 205,490 100 % (1) Does not include unbilled revenues of $55.2 million and $7.2 million as of December 31, 2018 and September 30, 2018 , respectively. |
Disposal Groups, Including Discontinued Operations | The major classes of assets and liabilities included within the disposal group as held for sale are as follows: (Thousands) September 30, 2018 Assets reclassified as held for sale Assets Sold Other adjustments December 31, 2018 Assets held for sale: Nonutility plant and equipment - wind equipment, at cost $ 224,356 $ — $ — $ — $ 224,356 Nonutility plant and equipment - accumulated depreciation, wind equipment (18,501 ) — — — (18,501 ) Prepaid and other current assets 789 1,535 — (703 ) 1,621 Other noncurrent assets 261 — — — 261 $ 206,905 $ 1,535 $ — $ (703 ) $ 207,737 Liabilities held for sale: Accounts payable and other (1) $ 186 $ — $ — $ — $ 186 Asset retirement obligation 3,996 — — — 3,996 $ 4,182 $ — $ — $ — $ 4,182 (1) Transaction fee owed to broker for the sale of Two Dot wind farm. |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Accordingly, 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) December 31, September 30, December 31, September 30, Balance Sheet Cash and cash equivalents $ 7,694 $ 1,458 $ 4,738 $ 2,226 Restricted cash in other noncurrent assets 315 252 286 243 Statements of Cash Flow Cash, cash equivalents and restricted cash in the statement of cash flows $ 8,009 $ 1,710 $ 5,024 $ 2,469 Accordingly, the following amounts on the Unaudited Condensed Consolidated Statement of Operations for the three months ended December 31, 2017, have been adjusted: (Thousands) As Previously Reported Effect of Change As Adjusted Statements of Operations Operation and maintenance $ 55,111 $ (951 ) $ 54,160 Total operating expenses $ 630,060 $ (951 ) $ 629,109 Operating income $ 75,245 $ 951 $ 76,196 Other income (expense), net $ 6,927 $ (951 ) $ 5,976 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
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 Performance Obligation Description Natural Gas Distribution 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 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. Clean Energy Ventures Commercial solar and wind electricity Clean Energy Ventures operates wholly-owned solar and wind 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. Clean Energy Ventures Residential solar electricity Clean Energy Ventures 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. Energy Services Wholesale natural gas services The performance obligation of Energy Services is to provide the customer transportation, storage and asset management services on an as needed basis. Energy Services 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. Energy Services invoices customers on a monthly basis in line with the terms of the contract and based on the services provided. Payment is due each month for the previous month's invoiced services. Home Services and Other Service contracts Home Services enters into service contracts with homeowners to provide maintenance and replacement services of applicable heating, cooling or ventilation equipment. 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: Home Services and Other Installations Home Services installs appliances, including but not limited to, furnaces, air conditioning units, boilers and generators to customers. The distinct performance obligation is the installation of the contracted appliance, which is satisfied at the point in time the item is installed. |
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 December 31, 2018 is as follows: Regulated Unregulated (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Home Services and Other Total Natural gas utility sales $ 194,983 — — — $ 194,983 Wholesale natural gas services — — 10,080 — 10,080 Service contracts — — — 7,796 7,796 Installations and maintenance — — — 4,694 4,694 Electricity sales — 7,141 — — 7,141 Eliminations (1) — — — (545 ) (545 ) Revenues from contracts with customers 194,983 7,141 10,080 11,945 224,149 Alternative revenue programs (867 ) — — — (867 ) Derivative Instruments 5,849 7,756 577,187 — 590,792 Eliminations (1) — — (2,307 ) — (2,307 ) Revenues out of scope 4,982 7,756 574,880 — 587,618 Total operating revenues $ 199,965 14,897 584,960 11,945 $ 811,767 (1) Consists of transactions between subsidiaries that are eliminated in consolidation. Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the three months ended December 31, 2018 is as follows: Regulated Unregulated (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Home Services and Other Total Residential $ 133,690 2,132 — 11,717 $ 147,539 Commercial and industrial 40,728 5,009 10,080 228 56,045 Firm transportation 18,934 — — — 18,934 Interruptible and off-tariff 1,631 — — — 1,631 Revenues out of scope 4,982 7,756 574,880 — 587,618 Total operating revenues $ 199,965 14,897 584,960 11,945 $ 811,767 |
Expected Timing of Performance | The timing of revenue recognition, customer billings and cash collections result in accounts receivables, billed and unbilled, and customers’ credit balances and deposits on the Unaudited Condensed Consolidated Balance Sheets during the three months ended December 31, 2018 are as follows: Customer Accounts Receivable Customers' Credit (Thousands) Billed Unbilled Balances and Deposits Balance as of October 1, 2018 $ 205,490 $ 7,199 $ 27,325 Increase 112,618 47,956 2,304 Balance as of December 31, 2018 $ 318,108 $ 55,155 $ 29,629 |
Performance obligation, in excess of billings | The following table provides information about receivables and revenue earned on contracts in progress in excess of billings, 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 December 31, 2018 : (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Home Services and Other Eliminations Total Customer accounts receivable Billed $ 73,748 3,574 239,542 2,996 (1,752 ) $ 318,108 Unbilled 55,155 — — — — 55,155 Customers' credit balances and deposits (29,627 ) — — (2 ) — (29,629 ) Total $ 99,276 3,574 239,542 2,994 (1,752 ) $ 343,634 |
REGULATION (Tables)
REGULATION (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Regulated Operations [Abstract] | |
Schedule of Regulator Liabilities | Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets are comprised of the following: (Thousands) December 31, September 30, Regulatory assets-current New Jersey Clean Energy Program $ 12,359 $ 14,052 Underrecovered gas costs 6,149 4,137 Derivatives at fair value, net 1 108 Total current regulatory assets $ 18,509 $ 18,297 Regulatory assets-noncurrent Environmental remediation costs Expended, net of recoveries $ 32,764 $ 33,017 Liability for future expenditures 129,556 130,800 Deferred income taxes 17,842 17,225 SAVEGREEN 5,888 8,636 Postemployment and other benefit costs 138,027 136,716 Deferred storm damage costs 10,315 10,858 Cost of removal 26,587 22,339 Other noncurrent regulatory assets 9,045 9,001 Total noncurrent regulatory assets $ 370,024 $ 368,592 Regulatory liabilities-current Conservation Incentive Program $ 7,861 $ 6,994 Derivatives at fair value, net 4,961 1,191 Total current regulatory liabilities $ 12,822 $ 8,185 Regulatory liabilities-noncurrent Tax Act impact (1) $ 204,161 $ 205,410 New Jersey Clean Energy Program 4,722 1,902 Other noncurrent regulatory liabilities 1,697 1,827 Total noncurrent regulatory liabilities $ 210,580 $ 209,139 (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. |
Schedule of Regulatory Assets | Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets are comprised of the following: (Thousands) December 31, September 30, Regulatory assets-current New Jersey Clean Energy Program $ 12,359 $ 14,052 Underrecovered gas costs 6,149 4,137 Derivatives at fair value, net 1 108 Total current regulatory assets $ 18,509 $ 18,297 Regulatory assets-noncurrent Environmental remediation costs Expended, net of recoveries $ 32,764 $ 33,017 Liability for future expenditures 129,556 130,800 Deferred income taxes 17,842 17,225 SAVEGREEN 5,888 8,636 Postemployment and other benefit costs 138,027 136,716 Deferred storm damage costs 10,315 10,858 Cost of removal 26,587 22,339 Other noncurrent regulatory assets 9,045 9,001 Total noncurrent regulatory assets $ 370,024 $ 368,592 Regulatory liabilities-current Conservation Incentive Program $ 7,861 $ 6,994 Derivatives at fair value, net 4,961 1,191 Total current regulatory liabilities $ 12,822 $ 8,185 Regulatory liabilities-noncurrent Tax Act impact (1) $ 204,161 $ 205,410 New Jersey Clean Energy Program 4,722 1,902 Other noncurrent regulatory liabilities 1,697 1,827 Total noncurrent regulatory liabilities $ 210,580 $ 209,139 (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. |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Assets and Liabilities | The following table reflects the fair value of NJR's derivative assets and liabilities recognized on the Unaudited Condensed Consolidated Balance Sheets as of: Fair Value December 31, 2018 September 30, 2018 (Thousands) Balance Sheet Location Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments: Natural Gas Distribution: Physical commodity contracts Derivatives - current $ 1,555 $ 325 $ 85 $ 192 Financial commodity contracts Derivatives - current 3,529 2,335 94 — Energy Services: Physical commodity contracts Derivatives - current 10,626 26,976 7,667 18,158 Derivatives - noncurrent 1,255 19,947 3,930 11,316 Financial commodity contracts Derivatives - current 39,409 35,219 19,169 28,176 Derivatives - noncurrent 4,830 16,618 6,630 11,548 Foreign currency contracts Derivatives - current — 259 — 126 Derivatives - noncurrent — 260 — 118 Home Services and Other: Interest rate contracts Derivatives - current 239 — 381 — Total fair value of derivatives $ 61,443 $ 101,939 $ 37,956 $ 69,634 |
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, as well as the net amounts the Company could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to. (Thousands) Amounts Presented on Balance Sheets (1) Offsetting Derivative Instruments (2) Financial Collateral Received/Pledged (3) Net Amounts (4) As of December 31, 2018: Derivative assets: Energy Services Physical commodity contracts $ 11,881 $ (3,916 ) $ (200 ) $ 7,765 Financial commodity contracts 44,239 (35,549 ) 3,581 12,271 Total Energy Services $ 56,120 $ (39,465 ) $ 3,381 $ 20,036 Natural Gas Distribution Physical commodity contracts $ 1,555 $ — $ — $ 1,555 Financial commodity contracts 3,529 (2,335 ) (1,194 ) — Total Natural Gas Distribution $ 5,084 $ (2,335 ) $ (1,194 ) $ 1,555 Home Services and Other Interest rate contracts $ 239 $ — $ — $ 239 Total Home Services and Other $ 239 $ — $ — $ 239 Derivative liabilities: Energy Services Physical commodity contracts $ 46,923 $ (3,915 ) $ — $ 43,008 Financial commodity contracts 51,837 (35,549 ) (16,288 ) — Foreign currency contracts 519 — — 519 Total Energy Services $ 99,279 $ (39,464 ) $ (16,288 ) $ 43,527 Natural Gas Distribution Physical commodity contracts $ 325 $ — $ — $ 325 Financial commodity contracts 2,335 (2,335 ) — — Total Natural Gas Distribution $ 2,660 $ (2,335 ) $ — $ 325 As of September 30, 2018: Derivative assets: Energy Services Physical commodity contracts $ 11,597 $ (3,944 ) $ (200 ) $ 7,453 Financial commodity contracts 25,799 (18,775 ) — 7,024 Total Energy Services $ 37,396 $ (22,719 ) $ (200 ) $ 14,477 Natural Gas Distribution Physical commodity contracts $ 85 $ (3 ) $ — $ 82 Financial commodity contracts 94 — (94 ) — Total Natural Gas Distribution $ 179 $ (3 ) $ (94 ) $ 82 Home Services and Other Interest rate contracts $ 381 $ — $ — $ 381 Total Home Services and Other $ 381 $ — $ — $ 381 Derivative liabilities: Energy Services Physical commodity contracts $ 29,474 $ (3,944 ) $ — $ 25,530 Financial commodity contracts 39,724 (18,775 ) (20,949 ) — Foreign currency contracts 244 — — 244 Total Energy Services $ 69,442 $ (22,719 ) $ (20,949 ) $ 25,774 Natural Gas Distribution Physical commodity contracts $ 192 $ (3 ) $ — $ 189 Total Natural Gas Distribution $ 192 $ (3 ) $ — $ 189 (1) Derivative assets and liabilities are presented on a gross basis on the balance sheet 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, as well as the net amounts the Company could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to. (Thousands) Amounts Presented on Balance Sheets (1) Offsetting Derivative Instruments (2) Financial Collateral Received/Pledged (3) Net Amounts (4) As of December 31, 2018: Derivative assets: Energy Services Physical commodity contracts $ 11,881 $ (3,916 ) $ (200 ) $ 7,765 Financial commodity contracts 44,239 (35,549 ) 3,581 12,271 Total Energy Services $ 56,120 $ (39,465 ) $ 3,381 $ 20,036 Natural Gas Distribution Physical commodity contracts $ 1,555 $ — $ — $ 1,555 Financial commodity contracts 3,529 (2,335 ) (1,194 ) — Total Natural Gas Distribution $ 5,084 $ (2,335 ) $ (1,194 ) $ 1,555 Home Services and Other Interest rate contracts $ 239 $ — $ — $ 239 Total Home Services and Other $ 239 $ — $ — $ 239 Derivative liabilities: Energy Services Physical commodity contracts $ 46,923 $ (3,915 ) $ — $ 43,008 Financial commodity contracts 51,837 (35,549 ) (16,288 ) — Foreign currency contracts 519 — — 519 Total Energy Services $ 99,279 $ (39,464 ) $ (16,288 ) $ 43,527 Natural Gas Distribution Physical commodity contracts $ 325 $ — $ — $ 325 Financial commodity contracts 2,335 (2,335 ) — — Total Natural Gas Distribution $ 2,660 $ (2,335 ) $ — $ 325 As of September 30, 2018: Derivative assets: Energy Services Physical commodity contracts $ 11,597 $ (3,944 ) $ (200 ) $ 7,453 Financial commodity contracts 25,799 (18,775 ) — 7,024 Total Energy Services $ 37,396 $ (22,719 ) $ (200 ) $ 14,477 Natural Gas Distribution Physical commodity contracts $ 85 $ (3 ) $ — $ 82 Financial commodity contracts 94 — (94 ) — Total Natural Gas Distribution $ 179 $ (3 ) $ (94 ) $ 82 Home Services and Other Interest rate contracts $ 381 $ — $ — $ 381 Total Home Services and Other $ 381 $ — $ — $ 381 Derivative liabilities: Energy Services Physical commodity contracts $ 29,474 $ (3,944 ) $ — $ 25,530 Financial commodity contracts 39,724 (18,775 ) (20,949 ) — Foreign currency contracts 244 — — 244 Total Energy Services $ 69,442 $ (22,719 ) $ (20,949 ) $ 25,774 Natural Gas Distribution Physical commodity contracts $ 192 $ (3 ) $ — $ 189 Total Natural Gas Distribution $ 192 $ (3 ) $ — $ 189 (1) Derivative assets and liabilities are presented on a gross basis on the balance sheet 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 reflects the effect of derivative instruments on the Unaudited Condensed Consolidated Statements of Operations as of: (Thousands) Location of gain (loss) recognized in income on derivatives Amount of gain (loss) recognized in income on derivatives Three Months Ended December 31, Derivatives not designated as hedging instruments: 2018 2017 Energy Services: Physical commodity contracts Operating revenues $ (1,532 ) $ 1,210 Physical commodity contracts Gas purchases (5,432 ) (22,697 ) Financial commodity contracts Gas purchases (2,956 ) (25,997 ) Foreign currency contracts Gas purchases (346 ) (48 ) Home Services and Other: Interest rate contracts Interest expense (123 ) — Total unrealized and realized losses $ (10,389 ) $ (47,532 ) |
Effect of Derivative Instruments Designated as Cash Flow Hedges on OCI | The following table reflects the (losses) gains associated with NJNG's derivative instruments as of: Three Months Ended December 31, (Thousands) 2018 2017 Natural Gas Distribution: Physical commodity contracts $ 2,977 $ (2,976 ) Financial commodity contracts 4,396 (8,808 ) Interest rate contracts — (4,067 ) Total unrealized and realized gains (losses) $ 7,373 $ (15,851 ) |
Schedule of Outstanding Long (Short) Derivatives | NJNG and Energy Services had the following outstanding long (short) derivatives as of: Volume (Bcf) December 31, September 30, Natural Gas Distribution Futures 30.6 27.9 Physical 15.5 23.1 Energy Services Futures (5.9 ) (7.0 ) Physical 19.8 51.2 |
Schedule of Broker Margin Accounts by Company | The balances are as follows: (Thousands) Balance Sheet Location December 31, September 30, Natural Gas Distribution Restricted broker margin accounts $ — $ 2,038 Accounts payable and other $ (757 ) $ — Energy Services Restricted broker margin accounts $ 85,784 $ 51,681 |
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, 2018 . 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 Clean Energy Ventures residential solar installations. (Thousands) Gross Credit Exposure Investment grade $ 256,383 Noninvestment grade 51,076 Internally rated investment grade 51,914 Internally rated noninvestment grade 57,287 Total $ 416,660 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The estimated fair value of long-term debt at NJNG and NJR, including current maturities, excluding capital leases, debt issuance costs and solar asset financing obligations, is as follows: (Thousands) December 31, September 30, Carrying value (1) (2) (3) $ 1,172,045 $ 1,172,045 Fair market value $ 1,163,321 $ 1,158,051 (1) Excludes capital leases of $43.3 million and $35.9 million as of December 31, 2018 and September 30, 2018 , respectively. (2) Excludes NJNG's debt issuance costs of $6.4 million and $6.5 million as of December 31, 2018 and September 30, 2018 , respectively. (3) Excludes NJR's debt issuance costs of $1.1 million and $1.1 million as of December 31, 2018 and September 30, 2018 , respectively. |
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 December 30, 2018: Assets: Physical commodity contracts $ — $ 13,436 $ — $ 13,436 Financial commodity contracts 42,658 5,110 — 47,768 Interest rate contracts — 239 — 239 Investments in equity securities 33,174 — — 33,174 Other (1) 1,589 — — 1,589 Total assets at fair value $ 77,421 $ 18,785 $ — $ 96,206 Liabilities: Physical commodity contracts $ — $ 47,248 $ — $ 47,248 Financial commodity contracts 54,172 — — 54,172 Financial commodity contracts - foreign exchange — 519 — 519 Total liabilities at fair value $ 54,172 $ 47,767 $ — $ 101,939 As of September 30, 2018: Assets: Physical commodity contracts $ — $ 11,682 $ — $ 11,682 Financial commodity contracts 18,868 7,025 — 25,893 Interest rate contracts — 381 — 381 Investments in equity securities 32,917 — — 32,917 Other (1) 1,217 — — 1,217 Total assets at fair value $ 53,002 $ 19,088 $ — $ 72,090 Liabilities: Physical commodity contracts $ — $ 29,666 $ — $ 29,666 Financial commodity contracts 39,724 — — 39,724 Financial commodity contracts - foreign exchange — 244 — 244 Total liabilities at fair value $ 39,724 $ 29,910 $ — $ 69,634 (1) Includes money market funds. |
INVESTMENTS IN EQUITY INVESTE_2
INVESTMENTS IN EQUITY INVESTEES (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Investments, All Other Investments [Abstract] | |
Schedule of Equity Method Investments | NJR's investments in equity method investees include the following as of: (Thousands) December 31, September 30, Steckman Ridge (1) $ 116,346 $ 117,001 PennEast 75,842 73,865 Total $ 192,188 $ 190,866 (1) Includes loans with a total outstanding principal balance of $70.4 million for both December 31, 2018 and September 30, 2018 . The loans accrue interest at a variable rate that resets quarterly and are due October 1, 2023. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
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 December 31, (Thousands, except per share amounts) 2018 2017 Net income, as reported $ 86,248 $ 123,699 Basic earnings per share Weighted average shares of common stock outstanding-basic 88,547 86,996 Basic earnings per common share $0.97 $1.42 Diluted earnings per share Weighted average shares of common stock outstanding-basic 88,547 86,996 Incremental shares (1) 399 351 Weighted average shares of common stock outstanding-diluted 88,946 87,347 Diluted earnings per common share (2) $0.97 $1.42 (1) Incremental shares consist primarily of unvested stock awards and performance shares. (2) There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for fiscal 2019 and 2018 . |
COMMON STOCK EQUITY (Tables)
COMMON STOCK EQUITY (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Changes in Common Stock Equity | Changes in common stock equity during the three months ended December 31, 2018 , were as follows: (Thousands) Number of Shares Common Stock Premium on Common Stock Accumulated Other Comprehensive (Loss) Income Treasury Stock And Other Retained Earnings Total Balance at September 30, 2018 88,293 $ 226,196 $ 274,748 $ (12,610 ) $ (76,473 ) $ 1,007,117 $ 1,418,978 Net income 86,248 86,248 Other comprehensive income 234 234 Common stock issued: Incentive compensation plan 137 343 1,791 2,134 Dividend reinvestment plan (1) 82 454 3,238 3,692 Waiver discount 168 — 1,293 6,671 7,964 Cash dividend declared ($.2925 per share) (25,938 ) (25,938 ) Treasury stock and other — — 1,504 1,504 Adoption of ASU 2016-01 (2) (3,446 ) 3,446 — Adoption of ASU 2017-05 (2) 4,970 4,970 Adoption of ASU 2014-09/ASC 606 (2) (2,736 ) (2,736 ) Balance at December 31, 2018 88,680 $ 226,539 $ 278,286 $ (15,822 ) $ (65,060 ) $ 1,073,107 $ 1,497,050 Balance at September 30, 2017 86,556 $ 222,258 $ 219,696 $ (3,256 ) $ (70,039 ) $ 867,984 $ 1,236,643 Net income 123,699 123,699 Other comprehensive income (5,204 ) (5,204 ) Common stock issued: Incentive plan 525 1,453 13,951 15,404 Dividend reinvestment plan (1) 90 245 3,554 3,799 Waiver discount 554 1,384 21,306 22,690 Cash dividend declared ($.2725 per share) (23,831 ) (23,831 ) Treasury stock and other (250 ) (56 ) (25,374 ) (25,430 ) Balance at December 31, 2017 87,475 $ 225,095 $ 255,142 $ (8,460 ) $ (91,859 ) $ 967,852 $ 1,347,770 (1) Shares sold through the DRP are issued from treasury stock at average cost, which may differ from the actual market price paid. (2) See Note 2. Summary of Significant Accounting Policies - Recently Adopted Updates to the Accounting Standards Codification section for more details. |
Schedule of Accumulated Other Comprehensive Income (Loss) | 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 December 31, 2018 and 2017 : (Thousands) Investments in Equity Securities Postemployment Benefit Obligation Total Balance at September 30, 2018 $ 3,446 $ (16,056 ) $ (12,610 ) Other comprehensive income, net of tax Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(96), $(96) — 234 (1) 234 Net current-period other comprehensive income, net of tax of $0, $(96), $(96) — 234 234 Reclassification to retained earnings (3,446 ) (2) — (3,446 ) Balance at December 31, 2018 $ — $ (15,822 ) $ (15,822 ) Balance as of September 30, 2017 $ 11,044 $ (14,300 ) $ (3,256 ) Other comprehensive income (loss), net of tax Other comprehensive (loss), before reclassifications, net of tax of $851, $0, $851 (2,290 ) — (2,290 ) Amounts reclassified from accumulated other comprehensive (loss) income, net of tax of $2,178, $(136), $2,042 (3,154 ) 240 (1) (2,914 ) Net current-period other comprehensive (loss) income, net of tax of $3,029, $(136), $2,893 (5,444 ) 240 (5,204 ) Balance as of December 31, 2017 $ 5,600 $ (14,060 ) $ (8,460 ) (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. (2) Due to the adoption of ASU No. 2016-01, an amendment to ASC 825, Financial Instruments . See Note 2. Summary of Significant Accounting Policies - Recently Adopted Updates to the Accounting Standards Codification section for more details. |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
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: (Thousands) December 31, September 30, Expiration Dates NJR Bank revolving credit facilities (1) $ 425,000 $ 425,000 December 2023 Notes outstanding at end of period $ 280,000 $ 87,950 Weighted average interest rate at end of period 3.27 % 3.07 % Amount available at end of period (2) $ 139,823 $ 322,144 Bank revolving credit facilities (1) $ 100,000 $ — April 2019 Amount available at end of period $ 100,000 $ — NJNG Bank revolving credit facilities (1) $ 250,000 $ 250,000 December 2023 Commercial paper outstanding at end of period $ 91,700 $ 64,000 Weighted average interest rate at end of period 2.71 % 2.18 % Amount available at end of period (3) $ 157,569 $ 185,269 (1) Committed credit facilities, which require commitment fees on the unused amounts. (2) Letters of credit outstanding total $5.2 million and $14.9 million for December 31, 2018 and September 30, 2018 , respectively, which reduces amount available by the same amount. (3) Letters of credit outstanding total $731,000 for both December 31, 2018 and September 30, 2018 , which reduces the amount available by the same amount. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | 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 Three Months Ended December 31, December 31, (Thousands) 2018 2017 2018 2017 Service cost $ 1,845 $ 2,035 $ 1,101 $ 1,152 Interest cost 3,043 2,623 2,081 1,591 Expected return on plan assets (4,763 ) (4,910 ) (1,379 ) (1,338 ) Recognized actuarial loss 1,441 1,884 1,617 1,165 Prior service cost amortization 25 27 (91 ) (91 ) Net periodic benefit cost $ 1,591 $ 1,659 $ 3,329 $ 2,479 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term Purchase Commitment | Commitments as of December 31, 2018 , for natural gas purchases and future demand fees for the next five fiscal year periods are as follows: (Thousands) 2019 2020 2021 2022 2023 Thereafter Energy Services: Natural gas purchases $ 361,898 $ 34,959 $ 11,382 $ — $ — $ — Storage demand fees 23,503 21,011 13,866 9,229 4,433 1,339 Pipeline demand fees 44,768 60,611 30,310 25,079 19,454 5,559 Sub-total Energy Services $ 430,169 $ 116,581 $ 55,558 $ 34,308 $ 23,887 $ 6,898 NJNG: Natural gas purchases $ 46,150 $ 38,422 $ 33,861 $ 34,460 $ 35,278 $ 37,067 Storage demand fees 25,402 27,318 14,251 12,930 7,899 6,066 Pipeline demand fees 65,761 87,556 96,417 92,527 87,316 616,054 Sub-total NJNG $ 137,313 $ 153,296 $ 144,529 $ 139,917 $ 130,493 $ 659,187 Total $ 567,482 $ 269,877 $ 200,087 $ 174,225 $ 154,380 $ 666,085 |
REPORTING SEGMENT AND OTHER O_2
REPORTING SEGMENT AND OTHER OPERATIONS DATA (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information related to the Company's various reporting segments and other operations is detailed below: Three Months Ended December 31, (Thousands) 2018 2017 Operating revenues Natural Gas Distribution External customers $ 199,965 $ 209,787 Clean Energy Ventures External customers 14,897 13,996 Energy Services External customers (1) 584,960 472,171 Intercompany 2,307 5,810 Subtotal 802,129 701,764 Home Services and Other External customers 11,945 9,351 Intercompany 545 606 Eliminations (2,852 ) (6,416 ) Total $ 811,767 $ 705,305 Depreciation and amortization Natural Gas Distribution $ 13,896 $ 12,783 Clean Energy Ventures 7,923 8,935 Energy Services (2) 27 14 Midstream 1 1 Subtotal 21,847 21,733 Home Services and Other 221 188 Eliminations (236 ) (67 ) Total $ 21,832 $ 21,854 Interest income (3) Natural Gas Distribution $ 199 $ 119 Midstream 1,056 664 Subtotal 1,255 783 Home Services and Other 436 204 Eliminations (1,492 ) (931 ) Total $ 199 $ 56 (1) Includes sales to Canada, which are immaterial. (2) The amortization of acquired wholesale energy contracts is excluded above and is included in 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. Three Months Ended December 31, (Thousands) 2018 2017 Interest expense, net of capitalized interest Natural Gas Distribution $ 6,103 $ 6,536 Clean Energy Ventures 5,428 4,208 Energy Services 1,887 1,257 Midstream 543 309 Subtotal 13,961 12,310 Home Services and Other 392 90 Eliminations (867 ) (495 ) Total $ 13,486 $ 11,905 Income tax provision (benefit) Natural Gas Distribution $ 5,830 $ 11,704 Clean Energy Ventures (23,204 ) (73,988 ) Energy Services 9,644 13,743 Midstream 962 (12,843 ) Subtotal (6,768 ) (61,384 ) Home Services and Other (192 ) 11,698 Eliminations (1 ) (482 ) Total $ (6,961 ) $ (50,168 ) Equity in earnings of affiliates Midstream $ 3,801 $ 4,129 Eliminations (640 ) (865 ) Total $ 3,161 $ 3,264 Net financial earnings (loss) Natural Gas Distribution $ 31,713 $ 34,109 Clean Energy Ventures 10,205 71,250 Energy Services 8,370 20,274 Midstream 3,651 17,511 Subtotal 53,939 143,144 Home Services and Other 76 (7,716 ) Eliminations 78 (95 ) Total $ 54,093 $ 135,333 Capital expenditures Natural Gas Distribution $ 59,755 $ 47,390 Clean Energy Ventures 32,126 18,387 Midstream 1,689 — Subtotal 93,570 65,777 Home Services and Other 731 1,313 Total $ 94,301 $ 67,090 Investments in equity investees Midstream $ — $ 7,202 Total $ — $ 7,202 |
Reconciliation of Consolidated NFE to Consolidated Net Income | A reconciliation of consolidated NFE to consolidated net income is as follows: Three Months Ended December 31, (Thousands) 2018 2017 Net financial earnings (1) $ 54,093 $ 135,333 Less: Unrealized (gain) loss on derivative instruments and related transactions (10,932 ) 34,855 Tax effect 2,583 (8,059 ) Effects of economic hedging related to natural gas inventory (21,611 ) (25,387 ) Tax effect 5,136 8,244 Net income to NFE tax adjustment (7,331 ) 1,981 Net income (1) $ 86,248 $ 123,699 (1) Includes income tax benefit related to the Tax Act of $57.6 million , for the three months ended December 31, 2017 . |
Reconciliation of Assets from Segment to Consolidated | The Company's assets for the various business segments and business operations are detailed below: (Thousands) December 31, September 30, Assets at end of period: Natural Gas Distribution $ 2,785,817 $ 2,663,054 Clean Energy Ventures (1) 902,485 865,018 Energy Services 583,876 396,852 Midstream 245,246 242,069 Subtotal 4,517,424 4,166,993 Home Services and Other 120,820 114,732 Intercompany assets (2) (160,922 ) (138,061 ) Total $ 4,477,322 $ 4,143,664 (1) Includes assets held for sale of $207.7 million and $206.9 million for December 31, 2018 and September 30, 2018 , respectively. (2) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
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 December 31, (Thousands) 2018 2017 Natural Gas Distribution $ 1,473 $ 1,448 Energy Services 712 701 Total $ 2,185 $ 2,149 The following table summarizes demand fees payable to Steckman Ridge as of: (Thousands) December 31, September 30, Natural Gas Distribution $ 775 $ 775 Energy Services 375 375 Total $ 1,150 $ 1,150 |
NATURE OF THE BUSINESS (Details
NATURE OF THE BUSINESS (Details) | 3 Months Ended |
Dec. 31, 2018subsidiarycustomer | |
Steckman Ridge | |
Nature of Business [Line Items] | |
Ownership percentage | 50.00% |
PennEast | |
Nature of Business [Line Items] | |
Ownership percentage | 20.00% |
Natural Gas Distribution | |
Nature of Business [Line Items] | |
Total retail customers | customer | 543,800 |
NJR Retail Holdings Corporation | |
Nature of Business [Line Items] | |
Number of principal subsidiaries | subsidiary | 2 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - GAS IN STORAGE (Details) $ in Thousands | Dec. 31, 2018USD ($)Bcf | Sep. 30, 2018USD ($)Bcf |
Inventory [Line Items] | ||
Gas in Storage, value | $ | $ 241,389 | $ 184,633 |
Gas in Storage, Bcf | Bcf | 59.2 | 59 |
Energy Services | ||
Inventory [Line Items] | ||
Gas in Storage, value | $ | $ 148,746 | $ 90,166 |
Gas in Storage, Bcf | Bcf | 38.4 | 34.1 |
Natural Gas Distribution | ||
Inventory [Line Items] | ||
Gas in Storage, value | $ | $ 92,643 | $ 94,467 |
Gas in Storage, Bcf | Bcf | 20.8 | 24.9 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - INVESTMENTS IN EQUTIY SECURITIES (Details) shares in Thousands, $ in Thousands | Nov. 26, 2018 | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) | Sep. 30, 2018USD ($) | Oct. 01, 2018USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||
Investments in equity securities | $ 32,900 | ||||
Accumulated other comprehensive loss, net of tax | $ (15,822) | (12,610) | |||
Equity securities, fv-ni, unrealized gain (loss) | 257 | 3,400 | |||
Investments in equity securities | 33,174 | $ 32,917 | |||
Debt conversion ratio | 0.2492 | ||||
Proceeds from sale of investments in equity securities, net | $ 0 | $ 6,616 | |||
Pre-tax gain on sale of equity securities | $ 5,300 | ||||
Investments in Equity Securities | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Accumulated other comprehensive loss, net of tax | $ 4,700 | ||||
Common Units [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Other ownership interests, units issued | shares | 1,840 | ||||
Dominion Shares [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Other ownership interests, units issued | shares | 458 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CUSTOMER ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Billed | $ 318,108 | $ 205,490 | |
Receivable by subsidiary, percentage | 100.00% | 100.00% | |
Unbilled revenues | $ 55,155 | $ 7,199 | |
Energy Services | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Billed | $ 237,790 | $ 157,936 | |
Receivable by subsidiary, percentage | 75.00% | 77.00% | |
Natural Gas Distribution | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Billed | [1] | $ 73,748 | $ 39,151 |
Receivable by subsidiary, percentage | [1] | 23.00% | 19.00% |
Clean Energy Ventures | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Billed | $ 3,574 | $ 3,330 | |
Receivable by subsidiary, percentage | 1.00% | 2.00% | |
Home Services and Other Operations | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Billed | $ 2,996 | $ 5,073 | |
Receivable by subsidiary, percentage | 1.00% | 2.00% | |
[1] | Does not include unbilled revenues of $55.2 million and $7.2 million as of December 31, 2018 and September 30, 2018, respectively. |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - LOAN RECEIVABLE (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Sep. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable in other current assets | $ 10.8 | $ 10.4 |
Loans receivable in other noncurrent assets | $ 39.4 | $ 39.5 |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, term | 3 years | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, term | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ASSETS HELD FOR SALE (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | |
Assets Held For Sale Activity [Roll Forward] | |||
Liabilities held for sale: | $ 4,182 | $ 4,182 | |
Clean Energy Ventures | |||
Assets Held For Sale Activity [Roll Forward] | |||
Nonutility plant and equipment - wind equipment, at cost | 224,356 | 224,356 | |
Nonutility plant and equipment - accumulated depreciation, wind equipment | (18,501) | (18,501) | |
Prepaid and other current assets | 1,621 | 789 | |
Other noncurrent assets | 261 | 261 | |
Assets held for sale: | 207,737 | 206,905 | |
Accounts payable and other | [1] | 186 | 186 |
Asset retirement obligation | 3,996 | 3,996 | |
Liabilities held for sale: | 4,182 | $ 4,182 | |
Held-for-sale | Clean Energy Ventures | |||
Assets Held For Sale Activity [Roll Forward] | |||
Nonutility plant and equipment - wind equipment, at cost | 0 | ||
Nonutility plant and equipment - accumulated depreciation, wind equipment | 0 | ||
Prepaid and other current assets | 1,535 | ||
Other noncurrent assets | 0 | ||
Assets held for sale: | 1,535 | ||
Accounts payable and other | [1] | 0 | |
Asset retirement obligation | 0 | ||
Liabilities held for sale: | 0 | ||
Assets sold | Clean Energy Ventures | |||
Assets Held For Sale Activity [Roll Forward] | |||
Nonutility plant and equipment - wind equipment, at cost | 0 | ||
Nonutility plant and equipment - accumulated depreciation, wind equipment | 0 | ||
Prepaid and other current assets | 0 | ||
Other noncurrent assets | 0 | ||
Assets held for sale: | 0 | ||
Accounts payable and other | [1] | 0 | |
Asset retirement obligation | 0 | ||
Liabilities held for sale: | 0 | ||
Other adjustments | Clean Energy Ventures | |||
Assets Held For Sale Activity [Roll Forward] | |||
Nonutility plant and equipment - wind equipment, at cost | 0 | ||
Nonutility plant and equipment - accumulated depreciation, wind equipment | 0 | ||
Prepaid and other current assets | (703) | ||
Other noncurrent assets | 0 | ||
Assets held for sale: | (703) | ||
Accounts payable and other | [1] | 0 | |
Asset retirement obligation | 0 | ||
Liabilities held for sale: | $ 0 | ||
[1] | Transaction fee owed to broker for the sale of Two Dot wind farm. |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ACCOUNTING STANDARDS UPDATE (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 31, 2018 | Oct. 01, 2018 | Sep. 30, 2018 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Revenues from contracts with customers | $ 224,149 | |||
Accumulated other comprehensive income (loss) | (15,822) | $ (12,610) | ||
Sales tax | 14,400 | |||
Accounting Standards Update 2014-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Reclassification to retained earnings | [1] | $ (2,736) | ||
Accounting Standards Update 2016-01 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Reclassification to retained earnings | [1] | 0 | ||
Accounting Standards Update 2017-05 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Reclassification to retained earnings | [1] | 4,970 | ||
Deferred gain, unamortized balance | (6,800) | |||
Home Services and Other | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Reclassification to retained earnings | 3,800 | |||
Revenues from contracts with customers | 12,500 | |||
Home Services and Other | Accounting Standards Update 2014-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Revenues from contracts with customers | 2,400 | |||
Retained Earnings | Accounting Standards Update 2014-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Reclassification to retained earnings | [1] | (2,736) | ||
Retained Earnings | Accounting Standards Update 2016-01 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Reclassification to retained earnings | [1] | 3,446 | ||
Retained Earnings | Home Services and Other | Accounting Standards Update 2014-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Reclassification to retained earnings | 2,700 | |||
Investments in Equity Securities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Reclassification to retained earnings | [2] | (3,446) | ||
Accumulated other comprehensive income (loss) | $ 4,700 | |||
As Previously Reported | Home Services and Other | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Revenues from contracts with customers | $ 10,100 | |||
[1] | See Note 2. Summary of Significant Accounting Policies - Recently Adopted Updates to the Accounting Standards Codification section for more details. | |||
[2] | Due to the adoption of ASU No. 2016-01, an amendment to ASC 825, Financial Instruments. See Note 2. Summary of Significant Accounting Policies - Recently Adopted Updates to the Accounting Standards Codification section for more details. |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ACCOUNTING STANDARDS UPDATE - RESTRICTED CASH (Details) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 7,694 | $ 1,458 | $ 4,738 | $ 2,226 |
Restricted cash in other noncurrent assets | 315 | 252 | 286 | 243 |
Cash, cash equivalents and restricted cash in the statement of cash flows | $ 8,009 | $ 1,710 | $ 5,024 | $ 2,469 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ACCOUNTING STANDARDS UPDATE - COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operation and maintenance | $ 60,102 | $ 54,160 |
Total operating expenses | 723,024 | 629,109 |
Operating income | 88,743 | 76,196 |
Other income (expense), net | 869 | $ 5,976 |
Accounting Standards Update 2017-07 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operation and maintenance | 54,160 | |
Total operating expenses | 629,109 | |
Operating income | 76,196 | |
Other income (expense), net | 5,976 | |
Accounting Standards Update 2017-07 | As Previously Reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operation and maintenance | 55,111 | |
Total operating expenses | 630,060 | |
Operating income | 75,245 | |
Other income (expense), net | 6,927 | |
Accounting Standards Update 2017-07 | Effect of Change | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operation and maintenance | (951) | |
Total operating expenses | (951) | |
Operating income | 951 | |
Other income (expense), net | $ (951) |
REVENUE Disaggregated Revenue -
REVENUE Disaggregated Revenue - Product (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | $ 224,149 | ||
Alternative revenue programs | (867) | ||
Derivative Instruments | 590,792 | ||
Revenues out of scope | 587,618 | ||
Total operating revenues | 811,767 | $ 705,305 | |
Natural gas utility sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 194,983 | ||
Wholesale natural gas services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 10,080 | ||
Service contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 7,796 | ||
Installations and maintenance | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 4,694 | ||
Electricity sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 7,141 | ||
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total operating revenues | 802,129 | $ 701,764 | |
Home Services and Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 12,500 | ||
Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | [1] | (545) | |
Revenues out of scope | [1] | (2,307) | |
Regulated | Operating Segments | Natural Gas Distribution | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 194,983 | ||
Alternative revenue programs | (867) | ||
Derivative Instruments | 5,849 | ||
Revenues out of scope | 4,982 | ||
Total operating revenues | 199,965 | ||
Regulated | Operating Segments | Natural gas utility sales | Natural Gas Distribution | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 194,983 | ||
Regulated | Operating Segments | Wholesale natural gas services | Natural Gas Distribution | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Regulated | Operating Segments | Service contracts | Natural Gas Distribution | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Regulated | Operating Segments | Installations and maintenance | Natural Gas Distribution | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Regulated | Operating Segments | Electricity sales | Natural Gas Distribution | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Regulated | Eliminations | Natural Gas Distribution | |||
Disaggregation of Revenue [Line Items] | |||
Revenues out of scope | [1] | 0 | |
Unregulated | Operating Segments | Clean Energy Ventures | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 7,141 | ||
Alternative revenue programs | 0 | ||
Derivative Instruments | 7,756 | ||
Revenues out of scope | 7,756 | ||
Total operating revenues | 14,897 | ||
Unregulated | Operating Segments | Energy Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 10,080 | ||
Alternative revenue programs | 0 | ||
Derivative Instruments | 577,187 | ||
Revenues out of scope | 574,880 | ||
Total operating revenues | 584,960 | ||
Unregulated | Operating Segments | Natural gas utility sales | Clean Energy Ventures | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Unregulated | Operating Segments | Natural gas utility sales | Energy Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Unregulated | Operating Segments | Wholesale natural gas services | Clean Energy Ventures | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Unregulated | Operating Segments | Wholesale natural gas services | Energy Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 10,080 | ||
Unregulated | Operating Segments | Service contracts | Clean Energy Ventures | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Unregulated | Operating Segments | Service contracts | Energy Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Unregulated | Operating Segments | Installations and maintenance | Clean Energy Ventures | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Unregulated | Operating Segments | Installations and maintenance | Energy Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Unregulated | Operating Segments | Electricity sales | Clean Energy Ventures | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 7,141 | ||
Unregulated | Operating Segments | Electricity sales | Energy Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Unregulated | Home Services and Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 11,945 | ||
Alternative revenue programs | 0 | ||
Derivative Instruments | 0 | ||
Revenues out of scope | 0 | ||
Total operating revenues | 11,945 | ||
Unregulated | Home Services and Other | Natural gas utility sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Unregulated | Home Services and Other | Wholesale natural gas services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Unregulated | Home Services and Other | Service contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 7,796 | ||
Unregulated | Home Services and Other | Installations and maintenance | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 4,694 | ||
Unregulated | Home Services and Other | Electricity sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Unregulated | Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | [1] | (545) | |
Revenues out of scope | [1] | 0 | |
Unregulated | Eliminations | Clean Energy Ventures | |||
Disaggregation of Revenue [Line Items] | |||
Revenues out of scope | [1] | 0 | |
Unregulated | Eliminations | Energy Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues out of scope | [1] | $ (2,307) | |
[1] | Consists of transactions between subsidiaries that are eliminated in consolidation. |
REVENUE Disaggregated Revenue_2
REVENUE Disaggregated Revenue - Type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | $ 224,149 | |
Revenues out of scope | 587,618 | |
Total operating revenues | 811,767 | $ 705,305 |
Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 147,539 | |
Commercial and industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 56,045 | |
Firm transportation | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 18,934 | |
Interruptible and off-tariff | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,631 | |
Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 802,129 | $ 701,764 |
Home Services and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 12,500 | |
Unregulated | Home Services and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 11,945 | |
Revenues out of scope | 0 | |
Total operating revenues | 11,945 | |
Unregulated | Home Services and Other | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 11,717 | |
Unregulated | Home Services and Other | Commercial and industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 228 | |
Unregulated | Home Services and Other | Firm transportation | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | |
Unregulated | Home Services and Other | Interruptible and off-tariff | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | |
Natural Gas Distribution | Regulated | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 194,983 | |
Revenues out of scope | 4,982 | |
Total operating revenues | 199,965 | |
Natural Gas Distribution | Regulated | Operating Segments | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 133,690 | |
Natural Gas Distribution | Regulated | Operating Segments | Commercial and industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 40,728 | |
Natural Gas Distribution | Regulated | Operating Segments | Firm transportation | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 18,934 | |
Natural Gas Distribution | Regulated | Operating Segments | Interruptible and off-tariff | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,631 | |
Clean Energy Ventures | Unregulated | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 7,141 | |
Revenues out of scope | 7,756 | |
Total operating revenues | 14,897 | |
Clean Energy Ventures | Unregulated | Operating Segments | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 2,132 | |
Clean Energy Ventures | Unregulated | Operating Segments | Commercial and industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 5,009 | |
Clean Energy Ventures | Unregulated | Operating Segments | Firm transportation | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | |
Clean Energy Ventures | Unregulated | Operating Segments | Interruptible and off-tariff | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | |
Energy Services | Unregulated | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 10,080 | |
Revenues out of scope | 574,880 | |
Total operating revenues | 584,960 | |
Energy Services | Unregulated | Operating Segments | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | |
Energy Services | Unregulated | Operating Segments | Commercial and industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 10,080 | |
Energy Services | Unregulated | Operating Segments | Firm transportation | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | |
Energy Services | Unregulated | Operating Segments | Interruptible and off-tariff | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | $ 0 |
REVENUE Timing of Revenue Recog
REVENUE Timing of Revenue Recognition (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Timing of Revenue Recognition [Roll Forward] | |
Billed, beginning | $ 205,490 |
Unbilled, beginning | 7,199 |
Customers' credit, beginning | 27,325 |
Increase (decrease) for accounts receivable, billed | 112,618 |
Increase (decrease) for unbilled revenue | 47,956 |
Increase (decrease) for customers' credits | 2,304 |
Billed, end | 318,108 |
Unbilled, end | 55,155 |
Customers' credit, end | $ 29,629 |
REVENUE Timing of Revenue Rec_2
REVENUE Timing of Revenue Recognition - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | |
Customer accounts receivable | |||
Billed | $ 318,108 | $ 205,490 | |
Unbilled revenues | 55,155 | 7,199 | |
Customers' credit | (29,629) | (27,325) | |
Customers accounts receivables & Customers' credit balances and deposits | 343,634 | ||
Natural Gas Distribution | |||
Customer accounts receivable | |||
Billed | [1] | 73,748 | 39,151 |
Clean Energy Ventures | |||
Customer accounts receivable | |||
Billed | 3,574 | 3,330 | |
Energy Services | |||
Customer accounts receivable | |||
Billed | 237,790 | $ 157,936 | |
Operating Segments | Natural Gas Distribution | |||
Customer accounts receivable | |||
Billed | 73,748 | ||
Unbilled revenues | 55,155 | ||
Customers' credit | (29,627) | ||
Customers accounts receivables & Customers' credit balances and deposits | 99,276 | ||
Operating Segments | Clean Energy Ventures | |||
Customer accounts receivable | |||
Billed | 3,574 | ||
Unbilled revenues | 0 | ||
Customers' credit | 0 | ||
Customers accounts receivables & Customers' credit balances and deposits | 3,574 | ||
Operating Segments | Energy Services | |||
Customer accounts receivable | |||
Billed | 239,542 | ||
Unbilled revenues | 0 | ||
Customers' credit | 0 | ||
Customers accounts receivables & Customers' credit balances and deposits | 239,542 | ||
Home Services and Other | |||
Customer accounts receivable | |||
Billed | 2,996 | ||
Unbilled revenues | 0 | ||
Customers' credit | (2) | ||
Customers accounts receivables & Customers' credit balances and deposits | 2,994 | ||
Eliminations | |||
Customer accounts receivable | |||
Billed | 1,752 | ||
Unbilled revenues | 0 | ||
Customers' credit | 0 | ||
Customers accounts receivables & Customers' credit balances and deposits | $ 1,752 | ||
[1] | Does not include unbilled revenues of $55.2 million and $7.2 million as of December 31, 2018 and September 30, 2018, respectively. |
REGULATION - REGULATORY ASSETS
REGULATION - REGULATORY ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | |
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-current | $ 18,509 | $ 18,297 | |
Regulatory assets-noncurrent | 370,024 | 368,592 | |
Regulatory liabilities-current | 12,822 | 8,185 | |
Regulatory liabilities-noncurrent | 210,580 | 209,139 | |
Conservation Incentive Program | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory liabilities-current | 7,861 | 6,994 | |
Derivatives at fair value, net | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory liabilities-current | 4,961 | 1,191 | |
Tax Act impact | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory liabilities-noncurrent | [1] | 204,161 | 205,410 |
New Jersey Clean Energy Program | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory liabilities-noncurrent | 4,722 | 1,902 | |
Other noncurrent regulatory liabilities | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory liabilities-noncurrent | 1,697 | 1,827 | |
New Jersey Clean Energy Program | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-current | 12,359 | 14,052 | |
Underrecovered gas costs | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-current | 6,149 | 4,137 | |
Derivatives at fair value, net | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-current | 1 | 108 | |
Expended, net of recoveries | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-noncurrent | 32,764 | 33,017 | |
Liability for future expenditures | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-noncurrent | 129,556 | 130,800 | |
Deferred income taxes | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-noncurrent | 17,842 | 17,225 | |
SAVEGREEN | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-noncurrent | 5,888 | 8,636 | |
Postemployment and other benefit costs | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-noncurrent | 138,027 | 136,716 | |
Deferred storm damage costs | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-noncurrent | 10,315 | 10,858 | |
Cost of removal | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-noncurrent | 26,587 | 22,339 | |
Other noncurrent regulatory assets | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-noncurrent | $ 9,045 | $ 9,001 | |
[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. |
REGULATION - REGULATORY FILINGS
REGULATION - REGULATORY FILINGS (Details) - Natural Gas Distribution - USD ($) $ in Millions | Dec. 28, 2018 | Dec. 18, 2018 |
Energy Efficiency EE | ||
Schedule of Regulatory Filings [Line Items] | ||
Approved rate increase (decrease), amount | $ (8.8) | |
BGSS/CIP Filing | ||
Schedule of Regulatory Filings [Line Items] | ||
Requested customer refunds, amount | $ 10.9 |
DERIVATIVE INSTRUMENTS - BALANC
DERIVATIVE INSTRUMENTS - BALANCE SHEET RELATED DISCLOSURES (Details) - USD ($) $ in Thousands | Mar. 13, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | May 30, 2018 | May 15, 2018 | May 11, 2018 | Jan. 31, 2018 | Jun. 30, 2015 |
Fair Value | |||||||||
Derivative assets, current | $ 55,358 | $ 27,396 | |||||||
Derivative liabilities, current | 65,114 | 46,652 | |||||||
Derivative assets, noncurrent | 6,085 | 10,560 | |||||||
Derivative liabilities, noncurrent | 36,825 | 22,982 | |||||||
Interest rate swap | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Benchmark interest rate | 2.84% | ||||||||
Treasury lock | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Benchmark interest rate | 3.26% | ||||||||
Interest rate, stated percentage | 4.01% | ||||||||
Gain (loss) on derivative, net | $ 2,600 | ||||||||
Not Designated as Hedging Instrument | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Gain (loss) on derivative, net | 10,389 | $ 47,532 | |||||||
Fair Value | |||||||||
Derivative assets | 61,443 | 37,956 | |||||||
Derivative liabilities | 101,939 | 69,634 | |||||||
Natural Gas Distribution | Not Designated as Hedging Instrument | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Gain (loss) on derivative, net | (7,373) | 15,851 | |||||||
Natural Gas Distribution | Not Designated as Hedging Instrument | Physical commodity contracts | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Gain (loss) on derivative, net | (2,977) | 2,976 | |||||||
Fair Value | |||||||||
Derivative assets, current | 1,555 | 85 | |||||||
Derivative liabilities, current | 325 | 192 | |||||||
Natural Gas Distribution | Not Designated as Hedging Instrument | Financial commodity contracts | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Gain (loss) on derivative, net | (4,396) | 8,808 | |||||||
Fair Value | |||||||||
Derivative assets, current | 3,529 | 94 | |||||||
Derivative liabilities, current | 2,335 | 0 | |||||||
Natural Gas Distribution | Not Designated as Hedging Instrument | Interest rate contracts | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Gain (loss) on derivative, net | 0 | $ 4,067 | |||||||
Natural Gas Distribution | Series Ll | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Debt issued | $ 125,000 | ||||||||
Interest rate, stated percentage | 5.60% | ||||||||
Energy Services | Not Designated as Hedging Instrument | Physical commodity contracts | |||||||||
Fair Value | |||||||||
Derivative assets, current | 10,626 | 7,667 | |||||||
Derivative liabilities, current | 26,976 | 18,158 | |||||||
Derivative assets, noncurrent | 1,255 | 3,930 | |||||||
Derivative liabilities, noncurrent | 19,947 | 11,316 | |||||||
Energy Services | Not Designated as Hedging Instrument | Financial commodity contracts | |||||||||
Fair Value | |||||||||
Derivative assets, current | 39,409 | 19,169 | |||||||
Derivative liabilities, current | 35,219 | 28,176 | |||||||
Derivative assets, noncurrent | 4,830 | 6,630 | |||||||
Derivative liabilities, noncurrent | 16,618 | 11,548 | |||||||
Energy Services | Not Designated as Hedging Instrument | Foreign currency contracts | |||||||||
Fair Value | |||||||||
Derivative assets, current | 0 | 0 | |||||||
Derivative liabilities, current | 259 | 126 | |||||||
Derivative assets, noncurrent | 0 | 0 | |||||||
Derivative liabilities, noncurrent | 260 | 118 | |||||||
First Mortgage | Natural Gas Distribution | Series VV | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Debt issued | $ 125,000 | $ 125,000 | |||||||
Term Loan | Credit Agreement Due August 16, 2019 | Interest rate swap | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Debt issued | $ 100,000 | ||||||||
Home Services and Other | Not Designated as Hedging Instrument | Interest rate contracts | |||||||||
Fair Value | |||||||||
Derivative assets, current | 239 | 381 | |||||||
Derivative liabilities, current | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS - OFFSET
DERIVATIVE INSTRUMENTS - OFFSETTING OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | ||
Energy Services | ||||
Derivative assets: | ||||
Amounts Presented in Balance Sheets | [1] | $ 56,120 | $ 37,396 | |
Offsetting Derivative Instruments | [2] | (39,465) | (22,719) | |
Financial Collateral Received/Pledged | [3] | 3,381 | (200) | |
Net Amounts | [4] | 20,036 | 14,477 | |
Derivative liabilities: | ||||
Amounts Presented in Balance Sheets | [1] | 99,279 | 69,442 | |
Offsetting Derivative Instruments | [2] | (39,464) | (22,719) | |
Financial Collateral Received/Pledged | [3] | (16,288) | (20,949) | |
Net Amounts | [4] | 43,527 | 25,774 | |
Energy Services | Physical commodity contracts | ||||
Derivative assets: | ||||
Amounts Presented in Balance Sheets | [1] | 11,881 | 11,597 | |
Offsetting Derivative Instruments | [2] | (3,916) | (3,944) | |
Financial Collateral Received/Pledged | [3] | (200) | (200) | |
Net Amounts | [4] | 7,765 | 7,453 | |
Derivative liabilities: | ||||
Amounts Presented in Balance Sheets | [1] | 46,923 | 29,474 | |
Offsetting Derivative Instruments | [2] | (3,915) | (3,944) | |
Financial Collateral Received/Pledged | [3] | 0 | 0 | |
Net Amounts | [4] | 43,008 | 25,530 | |
Energy Services | Financial commodity contracts | ||||
Derivative assets: | ||||
Amounts Presented in Balance Sheets | [1] | 44,239 | 25,799 | |
Offsetting Derivative Instruments | [2] | (35,549) | (18,775) | |
Financial Collateral Received/Pledged | [3] | 3,581 | 0 | |
Net Amounts | [4] | 12,271 | 7,024 | |
Derivative liabilities: | ||||
Amounts Presented in Balance Sheets | [1] | 51,837 | 39,724 | |
Offsetting Derivative Instruments | [2] | (35,549) | (18,775) | |
Financial Collateral Received/Pledged | [3] | (16,288) | (20,949) | |
Net Amounts | [4] | 0 | 0 | |
Energy Services | Foreign currency contracts | ||||
Derivative liabilities: | ||||
Amounts Presented in Balance Sheets | [1] | 519 | 244 | |
Offsetting Derivative Instruments | [2] | 0 | 0 | |
Financial Collateral Received/Pledged | [3] | 0 | 0 | |
Net Amounts | [4] | 519 | 244 | |
Natural Gas Distribution | ||||
Derivative assets: | ||||
Amounts Presented in Balance Sheets | 5,084 | [1] | 179 | |
Offsetting Derivative Instruments | (2,335) | [2] | (3) | |
Financial Collateral Received/Pledged | (1,194) | [3] | (94) | |
Net Amounts | 1,555 | [4] | 82 | |
Derivative liabilities: | ||||
Amounts Presented in Balance Sheets | [1] | 2,660 | 192 | |
Offsetting Derivative Instruments | [2] | (2,335) | (3) | |
Financial Collateral Received/Pledged | [3] | 0 | 0 | |
Net Amounts | [4] | 325 | 189 | |
Natural Gas Distribution | Physical commodity contracts | ||||
Derivative assets: | ||||
Amounts Presented in Balance Sheets | 1,555 | [1] | 85 | |
Offsetting Derivative Instruments | 0 | [2] | (3) | |
Financial Collateral Received/Pledged | 0 | [3] | 0 | |
Net Amounts | 1,555 | [4] | 82 | |
Derivative liabilities: | ||||
Amounts Presented in Balance Sheets | [1] | 325 | 192 | |
Offsetting Derivative Instruments | [2] | 0 | (3) | |
Financial Collateral Received/Pledged | [3] | 0 | 0 | |
Net Amounts | [4] | 325 | 189 | |
Natural Gas Distribution | Financial commodity contracts | ||||
Derivative assets: | ||||
Amounts Presented in Balance Sheets | 3,529 | [1] | 94 | |
Offsetting Derivative Instruments | (2,335) | [2] | 0 | |
Financial Collateral Received/Pledged | (1,194) | [3] | (94) | |
Net Amounts | 0 | [4] | 0 | |
Derivative liabilities: | ||||
Amounts Presented in Balance Sheets | [1] | 2,335 | ||
Offsetting Derivative Instruments | [2] | (2,335) | ||
Financial Collateral Received/Pledged | [3] | 0 | ||
Net Amounts | [4] | 0 | ||
Home Services and Other | ||||
Derivative assets: | ||||
Amounts Presented in Balance Sheets | [1] | 239 | 381 | |
Offsetting Derivative Instruments | [2] | 0 | 0 | |
Financial Collateral Received/Pledged | [3] | 0 | 0 | |
Net Amounts | [4] | 239 | 381 | |
Home Services and Other | Interest rate contracts | ||||
Derivative assets: | ||||
Amounts Presented in Balance Sheets | [1] | 239 | 381 | |
Offsetting Derivative Instruments | [2] | 0 | 0 | |
Financial Collateral Received/Pledged | [3] | 0 | 0 | |
Net Amounts | [4] | $ 239 | $ 381 | |
[1] | Derivative assets and liabilities are presented on a gross basis on the balance sheet 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. |
DERIVATIVE INSTRUMENTS - INCOME
DERIVATIVE INSTRUMENTS - INCOME STATEMENT RELATED DISCLOSURES (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (losses) gains recognized in income on derivatives | $ (10,389) | $ (47,532) |
Interest rate contracts | Interest Expense | Home Services and Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (losses) gains recognized in income on derivatives | (123) | 0 |
Energy Services | Physical commodity contracts | Operating revenues | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (losses) gains recognized in income on derivatives | (1,532) | 1,210 |
Energy Services | Physical commodity contracts | Gas purchases | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (losses) gains recognized in income on derivatives | (5,432) | (22,697) |
Energy Services | Financial commodity contracts | Gas purchases | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (losses) gains recognized in income on derivatives | (2,956) | (25,997) |
Energy Services | Foreign currency contracts | Gas purchases | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (losses) gains recognized in income on derivatives | (346) | (48) |
Natural Gas Distribution | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (losses) gains recognized in income on derivatives | 7,373 | (15,851) |
Natural Gas Distribution | Physical commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (losses) gains recognized in income on derivatives | 2,977 | (2,976) |
Natural Gas Distribution | Financial commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (losses) gains recognized in income on derivatives | 4,396 | (8,808) |
Natural Gas Distribution | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (losses) gains recognized in income on derivatives | $ 0 | $ (4,067) |
DERIVATIVE INSTRUMENTS - VOLUME
DERIVATIVE INSTRUMENTS - VOLUME (Details) certificate in Thousands, $ in Millions | Dec. 31, 2018USD ($)Bcfcertificate | Sep. 30, 2018Bcf |
Foreign currency contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ | $ 7.3 | |
Natural Gas Distribution | Long | Futures | ||
Derivative [Line Items] | ||
Outsanding long (short) derivatives, Volume | 30.6 | 27.9 |
Natural Gas Distribution | Long | Physical | ||
Derivative [Line Items] | ||
Outsanding long (short) derivatives, Volume | 15.5 | 23.1 |
Energy Services | Physical commodity contracts | ||
Derivative [Line Items] | ||
Number of SRECs | certificate | 748 | |
Energy Services | Long | Physical | ||
Derivative [Line Items] | ||
Outsanding long (short) derivatives, Volume | 19.8 | 51.2 |
Energy Services | Short | Futures | ||
Derivative [Line Items] | ||
Outsanding long (short) derivatives, Volume | 5.9 | 7 |
DERIVATIVE INSTRUMENTS - BROKER
DERIVATIVE INSTRUMENTS - BROKER MARGIN DEPOSITS (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Natural Gas Distribution | ||
Derivative [Line Items] | ||
Broker margin - Current assets | $ 0 | $ 2,038 |
Broker margin - Current liabilities | (757) | 0 |
Energy Services | ||
Derivative [Line Items] | ||
Broker margin - Current assets | $ 85,784 | $ 51,681 |
DERIVATIVE INSTRUMENTS - CREDIT
DERIVATIVE INSTRUMENTS - CREDIT RISK EXPOSURE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Sep. 30, 2018 | |
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | $ 416,660 | |
Derivative, net liability position, aggregate fair value | 382 | $ 124 |
Additional collateral, aggregate fair value | 166 | $ 33 |
Investment grade | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | 256,383 | |
Noninvestment grade | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | 51,076 | |
Internally rated investment grade | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | 51,914 | |
Internally rated noninvestment grade | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | $ 57,287 |
FAIR VALUE - DEBT (Details)
FAIR VALUE - DEBT (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Capital lease obligations | $ 43,300 | $ 35,900 | |
Level 2 | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value | [1],[2],[3] | 1,172,045 | 1,172,045 |
Level 2 | Fair market value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value | 1,163,321 | 1,158,051 | |
NJNG | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt issuance costs | 6,400 | 6,500 | |
NJR | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt issuance costs | $ 1,100 | $ 1,100 | |
[1] | Excludes NJNG's debt issuance costs of $6.4 million and $6.5 million as of December 31, 2018 and September 30, 2018, respectively. | ||
[2] | Excludes NJR's debt issuance costs of $1.1 million and $1.1 million as of December 31, 2018 and September 30, 2018, respectively. | ||
[3] | Excludes capital leases of $43.3 million and $35.9 million as of December 31, 2018 and September 30, 2018, respectively. |
FAIR VALUE - HIERARCHY (Details
FAIR VALUE - HIERARCHY (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments in equity securities | $ 33,174 | $ 32,917 | |
Investments in equity securities | 32,900 | ||
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments in equity securities | 33,174 | ||
Investments in equity securities | 32,917 | ||
Other | 1,589 | 1,217 | [1] |
Total assets at fair value | 96,206 | 72,090 | |
Total liabilities at fair value | 101,939 | 69,634 | |
Fair Value, Measurements, Recurring | Physical commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 13,436 | 11,682 | |
Liabilities | 47,248 | 29,666 | |
Fair Value, Measurements, Recurring | Financial commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 47,768 | 25,893 | |
Liabilities | 54,172 | 39,724 | |
Fair Value, Measurements, Recurring | Foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities | 519 | 244 | |
Fair Value, Measurements, Recurring | Interest rate contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 239 | 381 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments in equity securities | 33,174 | ||
Investments in equity securities | 32,917 | ||
Other | 1,589 | 1,217 | [1] |
Total assets at fair value | 77,421 | 53,002 | |
Total liabilities at fair value | 54,172 | 39,724 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Physical commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | 0 | |
Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Financial commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 42,658 | 18,868 | |
Liabilities | 54,172 | 39,724 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Interest rate contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments in equity securities | 0 | ||
Investments in equity securities | 0 | ||
Other | 0 | 0 | [1] |
Total assets at fair value | 18,785 | 19,088 | |
Total liabilities at fair value | 47,767 | 29,910 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Physical commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 13,436 | 11,682 | |
Liabilities | 47,248 | 29,666 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Financial commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 5,110 | 7,025 | |
Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities | 519 | 244 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 239 | 381 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments in equity securities | 0 | ||
Investments in equity securities | 0 | ||
Other | 0 | 0 | [1] |
Total assets at fair value | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Physical commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | 0 | |
Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Financial commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | 0 | |
Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Interest rate contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | $ 0 | $ 0 | |
[1] | Includes money market funds. |
INVESTMENTS IN EQUITY INVESTE_3
INVESTMENTS IN EQUITY INVESTEES (Details) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2018USD ($)mi | Sep. 30, 2018USD ($) | ||
Schedule of Equity Method Investments [Line Items] | |||
Investments in equity investees | $ 192,188 | $ 190,866 | |
Steckman Ridge | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in equity investees | [1] | 116,346 | 117,001 |
Total outstanding principal balance of loans | 70,400 | 70,400 | |
PennEast | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in equity investees | $ 75,842 | $ 73,865 | |
Construction plan, project area (in miles) | mi | 120 | ||
[1] | Includes loans with a total outstanding principal balance of $70.4 million for both December 31, 2018 and September 30, 2018. The loans accrue interest at a variable rate that resets quarterly and are due October 1, 2023. |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | ||
Earnings Per Share [Abstract] | ||||
Net income, as reported | $ 86,248 | $ 123,699 | ||
Basic earnings per share | ||||
Weighted average shares of common stock outstanding-basic (shares) | 88,547,000 | 86,996,000 | ||
Basic earnings per common share (usd per share) | $ 0.97 | $ 1.42 | ||
Diluted earnings per share | ||||
Weighted average shares of common stock outstanding-basic (shares) | 88,547,000 | 86,996,000 | ||
Incremental shares (shares) | [1] | 399,000 | 351,000 | |
Weighted average shares of common stock outstanding-diluted (shares) | 88,946,000 | 87,347,000 | ||
Diluted earnings per common share (usd per share) | [2] | $ 0.97 | $ 1.42 | |
Anti-dilutive shares excluded from the calculation of diluted earnings per share | 0 | 0 | ||
[1] | Incremental shares consist primarily of unvested stock awards and performance shares. | |||
[2] | There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for fiscal 2019 and 2018. |
COMMON STOCK EQUITY - CHANGE IN
COMMON STOCK EQUITY - CHANGE IN COMMON STOCK EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Oct. 01, 2018 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance as of beginning of period (shares) | 88,292,956 | |||
Balance as of beginning of period | $ 1,418,978 | $ 1,236,643 | ||
Net income | 86,248 | 123,699 | ||
Other comprehensive income | 234 | (5,204) | ||
Common stock issued: | ||||
Incentive plan | $ 2,134 | $ 15,404 | ||
Dividend reinvestment plan (in shares) | 82,000 | 90,000 | ||
Dividend reinvestment plan | [1] | $ 3,692 | $ 3,799 | |
Waiver discount (in shares) | 168,000 | 554,000 | ||
Waiver discount | $ 7,964 | $ 22,690 | ||
Cash dividend declared | (25,938) | (23,831) | ||
Treasury stock and other | $ 1,504 | 25,430 | ||
Balance as of end of period (shares) | 88,680,174 | |||
Balance as of end of period | $ 1,497,050 | $ 1,347,770 | ||
Cash dividend declared per share (usd per share) | $ 0.2925 | $ 0.2725 | ||
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance as of beginning of period (shares) | 88,293,000 | 86,556,000 | ||
Balance as of beginning of period | $ 226,196 | $ 222,258 | ||
Common stock issued: | ||||
Incentive plan (in shares) | 137,000 | 525,000 | ||
Incentive plan | $ 343 | $ 1,453 | ||
Dividend reinvestment plan (in shares) | [1] | 82,000 | 90,000 | |
Waiver discount (in shares) | 168,000 | 554,000 | ||
Waiver discount | $ 0 | $ 1,384 | ||
Treasury stock and other (shares) | 0 | (250,000) | ||
Balance as of end of period (shares) | 88,680,000 | 87,475,000 | ||
Balance as of end of period | $ 226,539 | $ 225,095 | ||
Premium on Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance as of beginning of period | 274,748 | 219,696 | ||
Common stock issued: | ||||
Incentive plan | 1,791 | 13,951 | ||
Dividend reinvestment plan | [1] | 454 | 245 | |
Waiver discount | 1,293 | 21,306 | ||
Treasury stock and other | 0 | 56 | ||
Balance as of end of period | 278,286 | 255,142 | ||
Accumulated Other Comprehensive (Loss) Income | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance as of beginning of period | (12,610) | (3,256) | ||
Other comprehensive income | 234 | (5,204) | ||
Common stock issued: | ||||
Adoption of ASU | $ (3,446) | |||
Balance as of end of period | (15,822) | (8,460) | ||
Treasury Stock And Other | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance as of beginning of period | (76,473) | (70,039) | ||
Common stock issued: | ||||
Dividend reinvestment plan | [1] | 3,238 | 3,554 | |
Waiver discount | 6,671 | |||
Treasury stock and other | 1,504 | 25,374 | ||
Balance as of end of period | (65,060) | (91,859) | ||
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance as of beginning of period | 1,007,117 | 867,984 | ||
Net income | 86,248 | 123,699 | ||
Common stock issued: | ||||
Cash dividend declared | (25,938) | (23,831) | ||
Balance as of end of period | $ 1,073,107 | $ 967,852 | ||
Accounting Standards Update 2016-01 | ||||
Common stock issued: | ||||
Adoption of ASU | [2] | 0 | ||
Accounting Standards Update 2016-01 | Accumulated Other Comprehensive (Loss) Income | ||||
Common stock issued: | ||||
Adoption of ASU | [2] | (3,446) | ||
Accounting Standards Update 2016-01 | Retained Earnings | ||||
Common stock issued: | ||||
Adoption of ASU | [2] | 3,446 | ||
Accounting Standards Update 2017-05 | ||||
Common stock issued: | ||||
Adoption of ASU | [2] | 4,970 | ||
Accounting Standards Update 2014-09/ASC 606 | ||||
Common stock issued: | ||||
Adoption of ASU | [2] | (2,736) | ||
Accounting Standards Update 2014-09/ASC 606 | Retained Earnings | ||||
Common stock issued: | ||||
Adoption of ASU | [2] | $ (2,736) | ||
[1] | Shares sold through the DRP are issued from treasury stock at average cost, which may differ from the actual market price paid. | |||
[2] | See Note 2. Summary of Significant Accounting Policies - Recently Adopted Updates to the Accounting Standards Codification section for more details. |
COMMON STOCK EQUITY - NARRATIVE
COMMON STOCK EQUITY - NARRATIVE (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | ||
Equity raised through the DRP waiver discount feature | $ 8 | $ 22.7 |
Shares issued through the DRP waiver discount feature (in shares) | 168 | 554 |
Equity raised through the DRP | $ 3.7 | $ 3.8 |
Number of treasury shares issued from raising of equity through the DRP | 82 | 90 |
COMMON STOCK EQUITY - ACCUMULAT
COMMON STOCK EQUITY - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Oct. 01, 2018 | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance as of beginning of period | $ 1,418,978 | $ 1,236,643 | ||
Balance as of end of period | 1,497,050 | 1,347,770 | ||
Investments in Equity Securities | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance as of beginning of period | 3,446 | 11,044 | ||
Other comprehensive (loss), before reclassifications, net of tax | (2,290) | |||
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | (3,154) | ||
Net current-period other comprehensive income, net of tax | 0 | (5,444) | ||
Reclassification to retained earnings | [1] | $ (3,446) | ||
Balance as of end of period | 0 | 5,600 | ||
Tax on other comprehensive income (loss) before reclassifications | (851) | |||
Tax on amounts reclassified from accumulated other comprehensive income | 0 | (2,178) | ||
Tax on net current-period other comprehensive income (loss) | 0 | (3,029) | ||
Postemployment Benefit Obligation | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance as of beginning of period | (16,056) | (14,300) | ||
Other comprehensive (loss), before reclassifications, net of tax | 0 | |||
Amounts reclassified from accumulated other comprehensive income, net of tax | [2] | 234 | 240 | |
Net current-period other comprehensive income, net of tax | 234 | 240 | ||
Reclassification to retained earnings | 0 | |||
Balance as of end of period | (15,822) | (14,060) | ||
Tax on other comprehensive income (loss) before reclassifications | 0 | |||
Tax on amounts reclassified from accumulated other comprehensive income | 96 | 136 | ||
Tax on net current-period other comprehensive income (loss) | 96 | 136 | ||
Total | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance as of beginning of period | (12,610) | (3,256) | ||
Other comprehensive (loss), before reclassifications, net of tax | (2,290) | |||
Amounts reclassified from accumulated other comprehensive income, net of tax | 234 | (2,914) | ||
Net current-period other comprehensive income, net of tax | 234 | (5,204) | ||
Reclassification to retained earnings | $ (3,446) | |||
Balance as of end of period | (15,822) | (8,460) | ||
Tax on other comprehensive income (loss) before reclassifications | (851) | |||
Tax on amounts reclassified from accumulated other comprehensive income | 96 | (2,042) | ||
Tax on net current-period other comprehensive income (loss) | $ 96 | $ (2,893) | ||
[1] | Due to the adoption of ASU No. 2016-01, an amendment to ASC 825, Financial Instruments. See Note 2. Summary of Significant Accounting Policies - Recently Adopted Updates to the Accounting Standards Codification section for more details. | |||
[2] | Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations. |
DEBT - CREDIT FACILITIES (Detai
DEBT - CREDIT FACILITIES (Details) | Dec. 21, 2018USD ($) | Dec. 31, 2018USD ($)Mutual_option | Dec. 05, 2018USD ($) | Sep. 30, 2018USD ($) | |||
Revolving Line of Credit, 4 Months | |||||||
Line of Credit Facility [Line Items] | |||||||
Bank revolving credit facilities | $ 100,000,000 | ||||||
Debt instrument, term | 4 months | ||||||
Short-term debt | $ 0 | ||||||
NJR | Letter of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Letters of credit outstanding, amount | 5,200,000 | $ 14,900,000 | |||||
NJR | Notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Amount outstanding at end of period | $ 280,000,000 | $ 87,950,000 | |||||
Weighted average interest rate at end of period | 3.27% | 3.07% | |||||
NJR | Committed Credit Facilities Due April 2019 | Notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Amount available at end of period | $ 100,000,000 | $ 0 | |||||
NJR | Revolving Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt, expiration, mutual options | Mutual_option | 2 | ||||||
Debt, expiration, extension term | 1 year | ||||||
Amount available at end of period | [1] | $ 139,823,000 | 322,144,000 | ||||
Line of credit facility, maximum borrowing capacity, incremental increase | 50,000,000 | ||||||
Line of credit facility, maximum borrowing capacity, maximum increase | 250,000,000 | ||||||
NJR | Revolving Credit Facility | Committed Credit Facilities Due September 2020 | |||||||
Line of Credit Facility [Line Items] | |||||||
Bank revolving credit facilities | $ 425,000,000 | ||||||
NJR | Revolving Credit Facility | Committed Credit Facilities Due April 2019 | |||||||
Line of Credit Facility [Line Items] | |||||||
Bank revolving credit facilities | [2] | 100,000,000 | 0 | ||||
NJR | Revolving Credit Facility | Committed Credit Facilities Due December 2023 | |||||||
Line of Credit Facility [Line Items] | |||||||
Bank revolving credit facilities | 425,000,000 | [2] | 425,000,000 | 425,000,000 | [2] | ||
NJNG | Commercial Paper | |||||||
Line of Credit Facility [Line Items] | |||||||
Amount outstanding at end of period | $ 91,700,000 | $ 64,000,000 | |||||
Weighted average interest rate at end of period | 2.71% | 2.18% | |||||
Amount available at end of period | [3] | $ 157,569,000 | $ 185,269,000 | ||||
NJNG | Letter of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Letters of credit outstanding, amount | $ 731,000 | 731,000 | |||||
NJNG | Revolving Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt, expiration, mutual options | Mutual_option | 2 | ||||||
Debt, expiration, extension term | 1 year | ||||||
Line of credit facility, maximum borrowing capacity, incremental increase | $ 50,000,000 | ||||||
Line of credit facility, maximum borrowing capacity, maximum increase | 100,000,000 | ||||||
NJNG | Revolving Credit Facility | Committed Credit Facilities Due December 2023 | |||||||
Line of Credit Facility [Line Items] | |||||||
Bank revolving credit facilities | 250,000,000 | ||||||
NJNG | Revolving Credit Facility | Committed Credit Facilities Due May 2019 | |||||||
Line of Credit Facility [Line Items] | |||||||
Bank revolving credit facilities | $ 250,000,000 | [2] | $ 250,000,000 | $ 250,000,000 | [2] | ||
[1] | Letters of credit outstanding total $5.2 million and $14.9 million for December 31, 2018 and September 30, 2018, respectively, which reduces amount available by the same amount. | ||||||
[2] | Committed credit facilities, which require commitment fees on the unused amounts. | ||||||
[3] | Letters of credit outstanding total $731,000 for both December 31, 2018 and September 30, 2018, which reduces the amount available by the same amount. |
DEBT - LONG TERM DEBT (Details)
DEBT - LONG TERM DEBT (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Proceeds from sale-leaseback transaction | $ 9,895 | $ 7,820 |
NJNG | ||
Debt Instrument [Line Items] | ||
Proceeds from sale-leaseback transaction | 9,900 | 7,800 |
Remaining principal payments | $ 1,100 | $ 1,100 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Components of net periodic cost | ||
Discretionary contribution | $ 0 | $ 0 |
Pension | ||
Components of net periodic cost | ||
Service cost | 1,845,000 | 2,035,000 |
Interest cost | 3,043,000 | 2,623,000 |
Expected return on plan assets | (4,763,000) | (4,910,000) |
Recognized actuarial loss | 1,441,000 | 1,884,000 |
Prior service cost amortization | 25,000 | 27,000 |
Net periodic benefit cost | 1,591,000 | 1,659,000 |
OPEB | ||
Components of net periodic cost | ||
Service cost | 1,101,000 | 1,152,000 |
Interest cost | 2,081,000 | 1,591,000 |
Expected return on plan assets | (1,379,000) | (1,338,000) |
Recognized actuarial loss | 1,617,000 | 1,165,000 |
Prior service cost amortization | (91,000) | (91,000) |
Net periodic benefit cost | $ 3,329,000 | $ 2,479,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2024 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | ||||||||
Federal statutory income tax rate, percent | 24.50% | |||||||
Tax Cuts And Jobs Act Of 2017, income tax benefit | $ (57.6) | |||||||
Forecasted effective tax rate | (7.20%) | 13.90% | ||||||
Forecasted tax credits, net of deferred tax | $ 21.9 | |||||||
Excess tax benefits associated with vesting of share-based awards | $ 1.3 | $ 2.8 | ||||||
Actual effective tax rate since tax effects of awards are treated as discrete item | (8.80%) | (68.20%) | ||||||
Deferred tax assets, operating loss carryforwards, domestic, refundable and receivables | $ 23 | $ 23 | ||||||
Deferred tax assets, operating loss carryforwards, domestic | 24.5 | |||||||
ITC carryforward | $ 145.4 | 121.1 | ||||||
ITC carryforward, expiration period | 20 years | |||||||
Valuation allowance | $ 4.1 | 4 | ||||||
Production tax credit, extension term | 5 years | |||||||
Production tax credit, project phase out, term | 3 years | |||||||
Federal | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Net operating loss carryforwards | $ 136.8 | 136.8 | ||||||
State | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Net operating loss carryforwards | $ 577.4 | $ 578.8 | ||||||
Scenario, Forecast | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Federal statutory income tax rate, percent | 21.00% | |||||||
Forecasted tax credits, net of deferred tax | $ 47.7 | |||||||
Investment tax credit, solar property, percentage | 10.00% | 22.00% | 26.00% | 30.00% | ||||
Minimum | State | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Operating loss carryforward, expiration terms | 7 years | |||||||
Maximum | State | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Operating loss carryforward, expiration terms | 20 years |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES - SCHEDULE OF FUTURE COMMITTED EXPENSES (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Long-term Purchase Commitment [Line Items] | |
Current charges recoverable through BGSS | $ 91,200 |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2,019 | 567,482 |
2,020 | 269,877 |
2,021 | 200,087 |
2,022 | 174,225 |
2,023 | 154,380 |
Thereafter | 666,085 |
Energy Services | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2,019 | 430,169 |
2,020 | 116,581 |
2,021 | 55,558 |
2,022 | 34,308 |
2,023 | 23,887 |
Thereafter | 6,898 |
Energy Services | Natural gas purchases | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2,019 | 361,898 |
2,020 | 34,959 |
2,021 | 11,382 |
2,022 | 0 |
2,023 | 0 |
Thereafter | 0 |
Energy Services | Storage demand fees | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2,019 | 23,503 |
2,020 | 21,011 |
2,021 | 13,866 |
2,022 | 9,229 |
2,023 | 4,433 |
Thereafter | 1,339 |
Energy Services | Pipeline demand fees | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2,019 | 44,768 |
2,020 | 60,611 |
2,021 | 30,310 |
2,022 | 25,079 |
2,023 | 19,454 |
Thereafter | $ 5,559 |
Energy Services | Minimum | |
Long-term Purchase Commitment [Line Items] | |
Storage and pipeline capacity, contract term | 1 year |
Energy Services | Maximum | |
Long-term Purchase Commitment [Line Items] | |
Storage and pipeline capacity, contract term | 10 years |
Natural Gas Distribution | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2,019 | $ 137,313 |
2,020 | 153,296 |
2,021 | 144,529 |
2,022 | 139,917 |
2,023 | 130,493 |
Thereafter | 659,187 |
Natural Gas Distribution | Natural gas purchases | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2,019 | 46,150 |
2,020 | 38,422 |
2,021 | 33,861 |
2,022 | 34,460 |
2,023 | 35,278 |
Thereafter | 37,067 |
Natural Gas Distribution | Storage demand fees | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2,019 | 25,402 |
2,020 | 27,318 |
2,021 | 14,251 |
2,022 | 12,930 |
2,023 | 7,899 |
Thereafter | 6,066 |
Natural Gas Distribution | Pipeline demand fees | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2,019 | 65,761 |
2,020 | 87,556 |
2,021 | 96,417 |
2,022 | 92,527 |
2,023 | 87,316 |
Thereafter | $ 616,054 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES - LEGAL PROCEEDINGS (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Jul. 31, 2018USD ($) | Dec. 31, 2018USD ($)site | Sep. 30, 2018USD ($) | |
Site Contingency [Line Items] | |||
Number of MGP sites | site | 5 | ||
Recovery from third party of environmental remediation cost, period | 7 years | ||
Regulatory assets | $ 370,024 | $ 368,592 | |
Manufactured gas plant remediation | 129,556 | 130,800 | |
Minimum | |||
Site Contingency [Line Items] | |||
Product liability contingency, loss exposure in excess of accrual, best estimate | 117,700 | ||
Maximum | |||
Site Contingency [Line Items] | |||
Product liability contingency, loss exposure in excess of accrual, best estimate | 204,100 | ||
Expended, net of recoveries | |||
Site Contingency [Line Items] | |||
Regulatory assets | $ 32,764 | 33,017 | |
RAC | |||
Site Contingency [Line Items] | |||
Public utilities, approved rate, amount | $ 9,400 | $ 7,000 |
REPORTING SEGMENT AND OTHER O_3
REPORTING SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT INCOME TO CONSOLIDATED (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting Information [Line Items] | |||
Utility | $ 199,965 | $ 209,787 | |
Nonutility | 611,802 | 495,518 | |
Total operating revenues | 811,767 | 705,305 | |
Depreciation and amortization | 21,832 | 21,854 | |
Interest income | [1] | 199 | 56 |
Interest expense, net of capitalized interest | 13,486 | 11,905 | |
Income tax provision (benefit) | (6,961) | (50,168) | |
Equity in earnings of affiliates | 3,161 | 3,264 | |
Net financial earnings | [2] | 54,093 | 135,333 |
Capital expenditures | 94,301 | 67,090 | |
Investments in equity investees | 0 | 7,202 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 802,129 | 701,764 | |
Depreciation and amortization | 21,847 | 21,733 | |
Interest income | [1] | 1,255 | 783 |
Interest expense, net of capitalized interest | 13,961 | 12,310 | |
Income tax provision (benefit) | (6,768) | (61,384) | |
Net financial earnings | 53,939 | 143,144 | |
Capital expenditures | 93,570 | 65,777 | |
Operating Segments | Natural Gas Distribution | |||
Segment Reporting Information [Line Items] | |||
Utility | 199,965 | 209,787 | |
Depreciation and amortization | 13,896 | 12,783 | |
Interest income | [1] | 199 | 119 |
Interest expense, net of capitalized interest | 6,103 | 6,536 | |
Income tax provision (benefit) | 5,830 | 11,704 | |
Net financial earnings | 31,713 | 34,109 | |
Capital expenditures | 59,755 | 47,390 | |
Operating Segments | Clean Energy Ventures | |||
Segment Reporting Information [Line Items] | |||
Nonutility | 14,897 | 13,996 | |
Depreciation and amortization | 7,923 | 8,935 | |
Interest expense, net of capitalized interest | 5,428 | 4,208 | |
Income tax provision (benefit) | (23,204) | (73,988) | |
Net financial earnings | 10,205 | 71,250 | |
Capital expenditures | 32,126 | 18,387 | |
Operating Segments | Energy Services | |||
Segment Reporting Information [Line Items] | |||
Nonutility | [3] | 584,960 | 472,171 |
Depreciation and amortization | [4] | 27 | 14 |
Interest expense, net of capitalized interest | 1,887 | 1,257 | |
Income tax provision (benefit) | 9,644 | 13,743 | |
Net financial earnings | 8,370 | 20,274 | |
Operating Segments | Midstream | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 1 | 1 | |
Interest income | [1] | 1,056 | 664 |
Interest expense, net of capitalized interest | 543 | 309 | |
Income tax provision (benefit) | 962 | (12,843) | |
Equity in earnings of affiliates | 3,801 | 4,129 | |
Net financial earnings | 3,651 | 17,511 | |
Capital expenditures | 1,689 | 0 | |
Investments in equity investees | 0 | 7,202 | |
Intercompany | |||
Segment Reporting Information [Line Items] | |||
Nonutility | 545 | 606 | |
Intercompany | Energy Services | |||
Segment Reporting Information [Line Items] | |||
Nonutility | 2,307 | 5,810 | |
Home Services and Other | |||
Segment Reporting Information [Line Items] | |||
Nonutility | 11,945 | 9,351 | |
Depreciation and amortization | 221 | 188 | |
Interest income | [1] | 436 | 204 |
Interest expense, net of capitalized interest | 392 | 90 | |
Income tax provision (benefit) | (192) | 11,698 | |
Net financial earnings | 76 | (7,716) | |
Capital expenditures | 731 | 1,313 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Nonutility | (2,852) | (6,416) | |
Depreciation and amortization | (236) | (67) | |
Interest income | [1] | (1,492) | (931) |
Interest expense, net of capitalized interest | (867) | (495) | |
Income tax provision (benefit) | (1) | (482) | |
Equity in earnings of affiliates | (640) | (865) | |
Net financial earnings | $ 78 | $ (95) | |
[1] | Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations. | ||
[2] | Includes income tax benefit related to the Tax Act of $57.6 million, for the three months ended December 31, 2017. | ||
[3] | Includes sales to Canada, which are immaterial | ||
[4] | The amortization of acquired wholesale energy contracts is excluded above and is included in gas purchases - nonutility on the Unaudited Condensed Consolidated Statements of Operations. |
REPORTING SEGMENT AND OTHER O_4
REPORTING SEGMENT AND OTHER OPERATIONS DATA - NET FINANCIAL EARNINGS (LOSS) RECONCILIATION (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting [Abstract] | |||
Net financial earnings | [1] | $ 54,093 | $ 135,333 |
Less: | |||
Unrealized (gain) loss on derivative instruments and related transactions | (10,932) | 34,855 | |
Tax effect | 2,583 | (8,059) | |
Effects of economic hedging related to natural gas inventory | (21,611) | (25,387) | |
Tax effect | 5,136 | 8,244 | |
Net income to NFE tax adjustment | (7,331) | 1,981 | |
NET INCOME | $ 86,248 | 123,699 | |
Tax Cuts And Jobs Act Of 2017, income tax benefit | $ 57,600 | ||
[1] | Includes income tax benefit related to the Tax Act of $57.6 million, for the three months ended December 31, 2017. |
REPORTING SEGMENT AND OTHER O_5
REPORTING SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT ASSETS TO CONSOLIDATED (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 4,477,322 | $ 4,143,664 | |
Assets held for sale | 207,737 | 206,905 | |
Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 4,517,424 | 4,166,993 | |
Operating Segments | Natural Gas Distribution | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 2,785,817 | 2,663,054 | |
Operating Segments | Clean Energy Ventures | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | [1] | 902,485 | 865,018 |
Assets held for sale | 207,700 | 206,900 | |
Operating Segments | Energy Services | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 583,876 | 396,852 | |
Operating Segments | Midstream | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 245,246 | 242,069 | |
Home Services and Other | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 120,820 | 114,732 | |
Intercompany Assets | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | [2] | $ (160,922) | $ (138,061) |
[1] | Includes assets held for sale of $207.7 million and $206.9 million for December 31, 2018 and September 30, 2018, respectively. | ||
[2] | Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | Apr. 01, 2010USD ($)Bcf | Dec. 31, 2018USD ($)Bcf / dcontract | Dec. 31, 2017USD ($) | Sep. 30, 2018USD ($) |
Related Party Transaction [Line Items] | ||||
Demand fees expense recognized pertaining to related party agreement | $ 2,185 | $ 2,149 | ||
Demand fees payable | $ 1,150 | $ 1,150 | ||
Number of asset management agreements | contract | 4 | |||
NJNG to NJRES Affilate | ||||
Related Party Transaction [Line Items] | ||||
Asset management agreement, period | 10 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 | $ 9,300 | |||
Demand fees expense recognized pertaining to related party agreement | $ 1,473 | 1,448 | ||
Demand fees payable | 775 | 775 | ||
NJRES to Steckman Ridge Affiliate | ||||
Related Party Transaction [Line Items] | ||||
Demand fees expense recognized pertaining to related party agreement | 712 | $ 701 | ||
Demand fees payable | $ 375 | $ 375 | ||
NJNG to PennEast Affiliate | ||||
Related Party Transaction [Line Items] | ||||
Transportation precedent agreement, period | 15 years | |||
Transportation capacity under precedent agreement from NJNG with PennEast (in bcf per day) | Bcf / d | 0.18 |
ACQUISITION (Details)
ACQUISITION (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Nov. 30, 2017USD ($) | Oct. 31, 2017USD ($)mi | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Business Acquisition [Line Items] | ||||
Payment made at closing | $ 0 | $ 10,000 | ||
Talen Generation, LLC | ||||
Business Acquisition [Line Items] | ||||
Related party, service agreement, period | 10 years | |||
Talen Generation, LLC | Talen's Membership Interests In IEC | ||||
Business Acquisition [Line Items] | ||||
Consideration to be transferred | $ 166,000 | |||
Contingent consideration arrangements, additional consideration | $ 23,000 | |||
Payment made at closing | $ 10,000 | |||
Pipeline length owned | mi | 84 |