Cover Page
Cover Page - shares | 9 Months Ended | |
Jun. 30, 2024 | Aug. 02, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-08359 | |
Entity Registrant Name | NEW JERSEY RESOURCES CORPORATION | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-2376465 | |
Entity Address, Address Line One | 1415 Wyckoff Road | |
Entity Address, City or Town | Wall | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07719 | |
City Area Code | (732) | |
Local Phone Number | 938‑1480 | |
Title of 12(b) Security | Common Stock - $2.50 Par Value | |
Trading Symbol | NJR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Business | false | |
Entity Common Stock, Shares Outstanding | 99,167,564 | |
Entity Central Index Key | 0000356309 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
OPERATING REVENUES | ||||
Utility | $ 157,773 | $ 144,971 | $ 913,729 | $ 902,880 |
Nonutility | 117,863 | 119,104 | 487,030 | 728,789 |
Total operating revenues | 275,636 | 264,075 | 1,400,759 | 1,631,669 |
Natural gas purchases: | ||||
Related parties | 1,729 | 1,870 | 5,407 | 5,467 |
Operation and maintenance | 104,378 | 94,213 | 306,040 | 272,809 |
Regulatory rider expenses | 8,343 | 6,120 | 56,761 | 47,525 |
Depreciation and amortization | 40,907 | 38,877 | 121,269 | 113,650 |
Total operating expenses | 269,700 | 259,341 | 1,088,782 | 1,288,962 |
OPERATING INCOME | 5,936 | 4,734 | 311,977 | 342,707 |
Other income, net | 9,555 | 5,711 | 31,316 | 15,145 |
Interest expense, net of capitalized interest | 31,169 | 30,119 | 94,263 | 89,871 |
(LOSS) INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES | (15,678) | (19,674) | 249,030 | 267,981 |
Income tax (benefit) provision | (2,764) | (20,505) | 54,119 | 43,059 |
Equity in earnings of affiliates | 1,340 | 701 | 3,738 | 2,778 |
NET (LOSS) INCOME | $ (11,574) | $ 1,532 | $ 198,649 | $ 227,700 |
(LOSS) EARNINGS PER COMMON SHARE | ||||
Basic (usd per share) | $ (0.12) | $ 0.02 | $ 2.02 | $ 2.35 |
Diluted (usd per share) | $ (0.12) | $ 0.02 | $ 2 | $ 2.33 |
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||
Basic (in shares) | 98,983 | 97,168 | 98,409 | 96,849 |
Diluted (in shares) | 98,983 | 97,886 | 99,213 | 97,538 |
Utility | ||||
Natural gas purchases: | ||||
Gas purchases - Utility and Nonutility | $ 53,372 | $ 42,344 | $ 373,839 | $ 381,160 |
Nonutility | ||||
Natural gas purchases: | ||||
Gas purchases - Utility and Nonutility | $ 60,971 | $ 75,917 | $ 225,466 | $ 468,351 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (11,574) | $ 1,532 | $ 198,649 | $ 227,700 |
Other comprehensive (loss) income, net of tax | ||||
Reclassifications of losses to net income on derivatives designated as hedging instruments, net of tax of $(79), $(79), $(238) and $(238), respectively | 264 | 263 | 790 | 790 |
Adjustment to postemployment benefit obligation, net of tax of $112, $(12), $(2,836) and $(37), respectively | (369) | 41 | 9,386 | 123 |
Other comprehensive (loss) income, net of tax | (105) | 304 | 10,176 | 913 |
Comprehensive (loss) income | $ (11,679) | $ 1,836 | $ 208,825 | $ 228,613 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax on reclassifications of losses to net income on derivatives | $ (79) | $ (79) | $ (238) | $ (238) |
Tax on adjustment to postemployment benefit obligation | $ 112 | $ (12) | $ (2,836) | $ (37) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 198,649 | $ 227,700 |
Adjustments to reconcile net income to cash flows from operating activities | ||
Unrealized loss (gain) on derivative instruments | 23,860 | (30,502) |
Depreciation and amortization | 121,269 | 113,650 |
Amortization of acquired wholesale energy contracts | 187 | 1,781 |
Allowance for equity used during construction | (5,368) | (5,054) |
Allowance for doubtful accounts | 1,849 | 1,397 |
Non cash lease expense | 3,611 | 2,607 |
Deferred income taxes | 49,598 | 11,026 |
Equivalent value of ITCs recognized on equipment financing | (12,600) | (1,232) |
Manufactured gas plant remediation costs | (19,464) | (6,284) |
Cost of removal - asset retirement obligations | (1,145) | (967) |
Contributions to postemployment benefit plans | (2,438) | (1,133) |
Taxes related to stock-based compensation | 1,186 | 554 |
Changes in: | ||
Components of working capital | 21,519 | 22,229 |
Other noncurrent assets and liabilities | (17,819) | 52,126 |
Cash flows from operating activities | 362,894 | 387,898 |
Expenditures for: | ||
Cost of removal | (29,552) | (28,719) |
Distribution from equity investees in excess of equity in earnings | 3,202 | 2,036 |
Cash flows used in investing activities | (392,584) | (378,178) |
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES | ||
Proceeds from long-term debt | 175,000 | 175,000 |
Payments of long-term debt | (89,555) | (15,698) |
Payments of term loan | 0 | (150,000) |
Proceeds from (payments of) short-term debt, net | 2,700 | (128,725) |
Proceeds from sale leaseback transactions - solar | 24,394 | 163,619 |
Proceeds from sale leaseback transactions - natural gas meters | 8,814 | 8,441 |
Payments of common stock dividends | (123,446) | (112,991) |
Proceeds from waiver discount issuance of common stock | 47,286 | 42,807 |
Proceeds from issuance of common stock - DRP | 11,141 | 11,419 |
Tax withholding payments related to net settled stock compensation | (5,027) | (4,024) |
Cash flows from (used in) financing activities | 51,307 | (10,152) |
Change in cash, cash equivalents and restricted cash | 21,617 | (432) |
Cash, cash equivalents and restricted cash at beginning of period | 1,517 | 1,452 |
Cash, cash equivalents and restricted cash at end of period | 23,134 | 1,020 |
CHANGES IN COMPONENTS OF WORKING CAPITAL | ||
Receivables | (34,335) | 103,954 |
Inventories | 62,644 | 108,107 |
Recovery of natural gas costs | (3,206) | (20,106) |
Natural gas purchases payable | 2,094 | (188,617) |
Natural gas purchases payable - related parties | 16 | 5 |
Deferred revenue, current | 38,162 | 2,687 |
Accounts payable and other | (1,683) | (20,153) |
Prepaid expenses | (3,902) | (2,454) |
Prepaid and accrued taxes | (13,310) | 24,684 |
Restricted broker margin accounts | (220) | 22,868 |
Customers' credit balances and deposits | (16,029) | (2,979) |
Other current assets and liabilities | (8,712) | (5,767) |
Total | 21,519 | 22,229 |
Cash paid for: | ||
Interest (net of amounts capitalized) | 90,006 | 80,550 |
Income taxes | 13,042 | 2,858 |
Accrued capital expenditures | 21,122 | 21,008 |
Utility plant | ||
Expenditures for: | ||
Payments to acquire PP&E | (259,125) | (248,507) |
Solar equipment | ||
Expenditures for: | ||
Payments to acquire PP&E | (74,096) | (68,604) |
Storage and Transportation and other | ||
Expenditures for: | ||
Payments to acquire PP&E | $ (33,013) | $ (34,384) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
PROPERTY, PLANT AND EQUIPMENT | ||
Utility plant, at cost | $ 4,132,835 | $ 3,843,037 |
Construction work in progress | 203,460 | 237,428 |
Nonutility plant and equipment, at cost | 1,804,670 | 1,767,306 |
Construction work in progress | 205,979 | 142,768 |
Total property, plant and equipment | 6,346,944 | 5,990,539 |
Accumulated depreciation and amortization, utility plant | (770,867) | (714,087) |
Accumulated depreciation and amortization, nonutility plant and equipment | (291,143) | (254,397) |
Property, plant and equipment, net | 5,284,934 | 5,022,055 |
CURRENT ASSETS | ||
Cash and cash equivalents | 22,399 | 954 |
Customer accounts receivable | ||
Billed | 128,264 | 97,540 |
Unbilled revenues | 20,564 | 19,100 |
Allowance for doubtful accounts | (10,738) | (11,036) |
Regulatory assets | 89,572 | 73,587 |
Natural gas in storage, at average cost | 132,244 | 199,501 |
Materials and supplies, at average cost | 31,635 | 27,022 |
Prepaid expenses | 13,643 | 9,741 |
Prepaid taxes | 54,880 | 43,046 |
Derivatives, at fair value | 4,771 | 30,755 |
Restricted broker margin accounts | 18,894 | 20,796 |
Other current assets | 28,266 | 21,071 |
Total current assets | 534,394 | 532,077 |
NONCURRENT ASSETS | ||
Investments in equity method investees | 100,824 | 104,134 |
Regulatory assets | 557,280 | 584,830 |
Operating lease assets | 185,506 | 175,740 |
Derivatives, at fair value | 979 | 1,564 |
Software costs | 10,254 | 8,375 |
Deferred income taxes | 22,575 | 28,383 |
Postemployment employee benefit assets | 18,585 | 18,684 |
Other noncurrent assets | 68,790 | 61,654 |
Total noncurrent assets | 964,793 | 983,364 |
Total assets | 6,784,121 | 6,537,496 |
CAPITALIZATION | ||
Common stock, $2.50 par value; authorized 150,000,000 shares; outstanding shares June 30, 2024 — 99,091,574; September 30, 2023 — 97,584,455 | 247,234 | 243,458 |
Premium on common stock | 618,140 | 558,654 |
Accumulated other comprehensive income (loss), net of tax | 217 | (9,959) |
Treasury stock at cost and other; shares June 30, 2024 — 16,302; September 30, 2023 — 13,041 | 25,027 | 20,748 |
Retained earnings | 1,252,400 | 1,177,834 |
Common stock equity | 2,143,018 | 1,990,735 |
Long-term debt | 2,793,672 | 2,768,017 |
Total capitalization | 4,936,690 | 4,758,752 |
CURRENT LIABILITIES | ||
Current maturities of long-term debt | 197,448 | 116,155 |
Short-term debt | 254,800 | 252,100 |
Natural gas purchases payable | 53,371 | 51,277 |
Natural gas purchases payable to related parties | 875 | 859 |
Deferred revenue | 99,566 | 61,404 |
Accounts payable and other | 144,579 | 151,790 |
Dividends payable | 41,618 | 40,981 |
Accrued taxes | 8,614 | 10,090 |
Regulatory liabilities | 31,573 | 32,287 |
New Jersey Clean Energy Program | 20,265 | 15,804 |
Derivatives, at fair value | 7,632 | 16,145 |
Operating lease liabilities | 5,125 | 4,772 |
Restricted broker margin accounts | 0 | 8,029 |
Customers' credit balances and deposits | 28,881 | 44,910 |
Total current liabilities | 894,347 | 806,603 |
NONCURRENT LIABILITIES | ||
Deferred income taxes | 331,829 | 285,427 |
Deferred investment tax credits | 2,226 | 2,434 |
Deferred revenue | 588 | 659 |
Derivatives, at fair value | 11,962 | 7,967 |
Manufactured gas plant remediation | 153,818 | 169,390 |
Postemployment employee benefit liability | 42,308 | 102,528 |
Regulatory liabilities | 176,720 | 180,458 |
Operating lease liabilities | 159,988 | 148,023 |
Asset retirement obligations | 63,245 | 61,993 |
Other noncurrent liabilities | 10,400 | 13,262 |
Total noncurrent liabilities | 953,084 | 972,141 |
Commitments and contingent liabilities (Note 13) | ||
Total capitalization and liabilities | 6,784,121 | 6,537,496 |
Related Party | ||
CURRENT LIABILITIES | ||
Natural gas purchases payable to related parties | $ 875 | $ 859 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2024 | Sep. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 2.50 | $ 2.50 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares outstanding (in shares) | 99,091,574 | 97,584,455 |
Treasury stock at cost and other, shares (in shares) | 16,302 | 13,041 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Premium on Common Stock | Accumulated Other Comprehensive (Loss) Income | Treasury Stock and Other | Retained Earnings | |
Balance as of beginning of period (in shares) at Sep. 30, 2022 | 96,250,000 | ||||||
Balance as of beginning of period at Sep. 30, 2022 | $ 1,817,210 | $ 241,616 | $ 519,697 | $ (4,826) | $ (6,805) | $ 1,067,528 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 115,921 | 115,921 | |||||
Other comprehensive income (loss) | 304 | 304 | |||||
Common stock issued: | |||||||
Incentive compensation plan (in shares) | 92,000 | ||||||
Incentive compensation plan | 3,472 | $ 229 | 3,243 | ||||
Dividend reinvestment plan (in shares) | [1] | 93,000 | |||||
Dividend reinvestment plan | [1] | 3,866 | 437 | 3,429 | |||
Waiver discount (in shares) | 368,000 | ||||||
Waiver discount | 17,919 | 4,469 | 13,450 | ||||
Cash dividend declared | (37,665) | (37,665) | |||||
Treasury stock and other | 1,768 | 1,768 | |||||
Balance as of end of period (in shares) at Dec. 31, 2022 | 96,803,000 | ||||||
Balance as of end of period at Dec. 31, 2022 | 1,922,795 | $ 241,845 | 527,846 | (4,522) | 11,842 | 1,145,784 | |
Balance as of beginning of period (in shares) at Sep. 30, 2022 | 96,250,000 | ||||||
Balance as of beginning of period at Sep. 30, 2022 | 1,817,210 | $ 241,616 | 519,697 | (4,826) | (6,805) | 1,067,528 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 227,700 | ||||||
Other comprehensive income (loss) | 913 | ||||||
Balance as of end of period (in shares) at Jun. 30, 2023 | 97,496,000 | ||||||
Balance as of end of period at Jun. 30, 2023 | 1,995,242 | $ 243,237 | 554,730 | (3,913) | 19,398 | 1,181,790 | |
Balance as of beginning of period (in shares) at Dec. 31, 2022 | 96,803,000 | ||||||
Balance as of beginning of period at Dec. 31, 2022 | 1,922,795 | $ 241,845 | 527,846 | (4,522) | 11,842 | 1,145,784 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 110,247 | 110,247 | |||||
Other comprehensive income (loss) | 305 | 305 | |||||
Common stock issued: | |||||||
Incentive compensation plan (in shares) | 29,000 | ||||||
Incentive compensation plan | 1,170 | $ 74 | 1,096 | ||||
Dividend reinvestment plan (in shares) | 77,000 | ||||||
Dividend reinvestment plan | 3,671 | 877 | 2,794 | ||||
Cash dividend declared | (37,791) | (37,791) | |||||
Treasury stock and other (in shares) | (8,000) | ||||||
Treasury stock and other | 439 | 439 | |||||
Balance as of end of period (in shares) at Mar. 31, 2023 | 96,901,000 | ||||||
Balance as of end of period at Mar. 31, 2023 | 2,000,836 | $ 241,919 | 529,819 | (4,217) | 15,075 | 1,218,240 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 1,532 | 1,532 | |||||
Other comprehensive income (loss) | 304 | 304 | |||||
Common stock issued: | |||||||
Incentive compensation plan (in shares) | 3,000 | ||||||
Incentive compensation plan | 119 | $ 7 | 112 | ||||
Dividend reinvestment plan (in shares) | 73,000 | ||||||
Dividend reinvestment plan | 3,759 | $ 13 | 1,209 | 2,537 | |||
Waiver discount (in shares) | 519,000 | ||||||
Waiver discount | 24,888 | $ 1,298 | 23,590 | ||||
Cash dividend declared | (37,982) | (37,982) | |||||
Treasury stock and other | 1,786 | 1,786 | |||||
Balance as of end of period (in shares) at Jun. 30, 2023 | 97,496,000 | ||||||
Balance as of end of period at Jun. 30, 2023 | $ 1,995,242 | $ 243,237 | 554,730 | (3,913) | 19,398 | 1,181,790 | |
Balance as of beginning of period (in shares) at Sep. 30, 2023 | 97,584,455 | 97,584,000 | |||||
Balance as of beginning of period at Sep. 30, 2023 | $ 1,990,735 | $ 243,458 | 558,654 | (9,959) | 20,748 | 1,177,834 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 89,411 | 89,411 | |||||
Other comprehensive income (loss) | 395 | 395 | |||||
Common stock issued: | |||||||
Incentive compensation plan (in shares) | 116,000 | ||||||
Incentive compensation plan | 3,741 | $ 290 | 3,451 | ||||
Dividend reinvestment plan (in shares) | 94,000 | ||||||
Dividend reinvestment plan | 3,788 | $ 236 | 3,552 | ||||
Waiver discount (in shares) | 410,000 | ||||||
Waiver discount | 17,919 | $ 1,025 | 16,894 | ||||
Cash dividend declared | (41,176) | (41,176) | |||||
Treasury stock and other (in shares) | (2,000) | ||||||
Treasury stock and other | 1,388 | 1,388 | |||||
Balance as of end of period (in shares) at Dec. 31, 2023 | 98,202,000 | ||||||
Balance as of end of period at Dec. 31, 2023 | $ 2,066,201 | $ 245,009 | 582,551 | (9,564) | 22,136 | 1,226,069 | |
Balance as of beginning of period (in shares) at Sep. 30, 2023 | 97,584,455 | 97,584,000 | |||||
Balance as of beginning of period at Sep. 30, 2023 | $ 1,990,735 | $ 243,458 | 558,654 | (9,959) | 20,748 | 1,177,834 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 198,649 | ||||||
Other comprehensive income (loss) | $ 10,176 | ||||||
Balance as of end of period (in shares) at Jun. 30, 2024 | 99,091,574 | 99,092,000 | |||||
Balance as of end of period at Jun. 30, 2024 | $ 2,143,018 | $ 247,234 | 618,140 | 217 | 25,027 | 1,252,400 | |
Balance as of beginning of period (in shares) at Dec. 31, 2023 | 98,202,000 | ||||||
Balance as of beginning of period at Dec. 31, 2023 | 2,066,201 | $ 245,009 | 582,551 | (9,564) | 22,136 | 1,226,069 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 120,812 | 120,812 | |||||
Other comprehensive income (loss) | 9,886 | 9,886 | |||||
Common stock issued: | |||||||
Incentive compensation plan (in shares) | 25,000 | ||||||
Incentive compensation plan | 1,242 | $ 64 | 1,178 | ||||
Dividend reinvestment plan (in shares) | 84,000 | ||||||
Dividend reinvestment plan | 3,655 | $ 209 | 3,446 | ||||
Waiver discount (in shares) | 435,000 | ||||||
Waiver discount | 17,919 | $ 1,085 | 16,834 | ||||
Cash dividend declared | (41,290) | (41,290) | |||||
Treasury stock and other (in shares) | (1,000) | ||||||
Treasury stock and other | 800 | 800 | |||||
Balance as of end of period (in shares) at Mar. 31, 2024 | 98,745,000 | ||||||
Balance as of end of period at Mar. 31, 2024 | 2,179,225 | $ 246,367 | 604,009 | 322 | 22,936 | 1,305,591 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (11,574) | (11,574) | |||||
Other comprehensive income (loss) | (105) | (105) | |||||
Common stock issued: | |||||||
Dividend reinvestment plan (in shares) | [1] | 85,000 | |||||
Dividend reinvestment plan | [1] | 3,550 | $ 212 | 3,338 | |||
Waiver discount (in shares) | 262,000 | ||||||
Waiver discount | 11,448 | $ 655 | 10,793 | ||||
Cash dividend declared | (41,617) | (41,617) | |||||
Treasury stock and other (in shares) | 0 | ||||||
Treasury stock and other | $ 2,091 | 2,091 | |||||
Balance as of end of period (in shares) at Jun. 30, 2024 | 99,091,574 | 99,092,000 | |||||
Balance as of end of period at Jun. 30, 2024 | $ 2,143,018 | $ 247,234 | $ 618,140 | $ 217 | $ 25,027 | $ 1,252,400 | |
[1] Certain shares sold through the DRP issued from treasury stock are at average cost, which may differ from the actual market price paid. |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Cash dividend declared per share (usd per share) | $ 0.42 | $ 0.42 | $ 0.42 | $ 0.39 | $ 0.39 | $ 0.39 |
NATURE OF THE BUSINESS
NATURE OF THE BUSINESS | 9 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF THE BUSINESS | 1. NATURE OF THE BUSINESS The Company provides regulated natural gas distribution services, transmission and storage services and operates certain unregulated businesses primarily through the following: NJNG provides natural gas utility service to approximately 582,100 customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean and Sussex counties in New Jersey and is subject to rate regulation by the BPU. NJNG comprises the Natural Gas Distribution segment. Clean Energy Ventures, the Company's clean energy subsidiary, comprises the CEV segment and invests in, owns and operates clean energy projects, including commercial and residential solar installations located in New Jersey, Rhode Island, New York, Connecticut, Michigan and Indiana. Energy Services comprises the ES segment. ES maintains and transacts around a portfolio of natural gas transportation and storage capacity contracts and provides physical wholesale energy, retail energy and energy management services in the U.S. and Canada. NJR Midstream Holdings Corporation, which comprises the S&T segment, invests in energy-related ventures through its subsidiaries. The Company operates natural gas storage and transmission assets through the wholly-owned subsidiaries of Leaf River and Adelphia, and is subject to rate regulation by FERC. The Company holds a 50% combined ownership interest in Steckman Ridge, located in Pennsylvania which is accounted for under the equity method of accounting. NJR Retail Holdings Corporation has one principal subsidiary, NJRHS, which provides heating, central air conditioning, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey. NJRHS is included in HSO. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared by the Company in accordance with the rules and regulations of the U.S. Securities and Exchange Commission and GAAP. The September 30, 2023 Balance Sheet data is derived from the audited financial statements of the Company. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's 2023 Annual Report on Form 10-K. The Unaudited Condensed Consolidated Financial Statements include the accounts of NJR and its subsidiaries. In the opinion of management, the accompanying Unaudited Condensed Consolidated Financial Statements reflect all adjustments necessary for a fair presentation of the results of the interim periods presented. These adjustments are of a normal and recurring nature. Because of the seasonal nature of the Company's utility and wholesale energy services operations, in addition to other factors, the financial results for the interim periods presented are not indicative of the results that are to be expected for the fiscal year ending September 30, 2024. Intercompany transactions and accounts have been eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingencies during the reporting period. On a quarterly basis or more frequently whenever events or changes in circumstances indicate a need, the Company evaluates its estimates, including those related to the calculation of the fair value of derivative instruments, debt, equity method investments, lease liabilities, unbilled revenues, allowance for doubtful accounts, provisions for depreciation and amortization, long-lived assets, regulatory assets and liabilities, income taxes, pensions and other postemployment benefits, contingencies related to environmental matters and litigation. Asset retirement obligations are evaluated periodically as required. The Company’s estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. The Company has legal, regulatory and environmental proceedings during the normal course of business that can result in loss contingencies. When evaluating the potential for a loss, the Company will establish a reserve if a loss is probable and can be reasonably estimated, in which case it is the Company’s policy to accrue the full amount of such estimates. Where the information is sufficient only to establish a range of probable liability, and no point within the range is more likely than any other, it is the Company’s policy to accrue the lower end of the range. In the normal course of business, estimated amounts are subsequently adjusted to actual results that may differ from estimates. Revenues Revenues from the sale of natural gas to NJNG customers are recognized in the period that natural gas is delivered and consumed by customers, including an estimate for unbilled revenue. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the month. At the end of each month, the amount of natural gas delivered to each customer after the last meter reading through the end of the respective accounting period is estimated, and recognizes unbilled revenues related to these amounts. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects, unaccounted-for natural gas and the most current tariff rates. CEV recognizes revenue when SRECs are transferred to counterparties. SRECs are physically delivered through the transfer of certificates as per contractual settlement schedules. The Clean Energy Act of 2018 established guidelines for the closure of the SREC registration program to new applicants in New Jersey. The SREC program officially closed to new qualified solar projects on April 30, 2020. In December 2019, the BPU established the TREC as the successor to the SREC program. TRECs provide a fixed compensation base multiplied by an assigned project factor in order to determine their value. The project factor is determined by the type and location of the project, as defined. In July 2021, the BPU established a new successor solar incentive program. The Administratively Determined Incentive Program provides administratively set incentives for net metered residential projects and net metered non-residential projects of 5 MW or less. RECs generated through the production of electricity under this program are known as SREC IIs. TRECs and SREC IIs generated are required to be purchased monthly by a REC program administrator as appointed by the BPU. Revenue for TRECs and SREC IIs are recognized upon generation and are transferred monthly based upon metered solar electricity activity. Revenues for ES are recognized when the natural gas is physically delivered to the customer. In addition, changes in the fair value of derivatives that economically hedge the forecasted sales of the natural gas are recognized in operating revenues as they occur. ES also recognizes changes in the fair value of SREC derivative contracts as a component of operating revenues. During December 2020, ES entered into a series of AMAs with an investment grade public utility to release pipeline capacity associated with certain natural gas transportation contracts, which commenced in November 2021. The AMAs include a series of temporary and permanent releases and revenue under these agreements is recognized as the performance obligations are satisfied. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed upon term. For permanent releases of pipeline capacity, which represent a transfer of contractual rights for such capacity, revenue is recognized upon the transfer of the underlying contractual rights. ES recognized operating revenue of $9.5M during both the three months ended June 30, 2024 and 2023, and $28.5M and $39.0M during the nine months ended June 30, 2024 and 2023, respectively, on the Unaudited Condensed Consolidated Statements of Operations. Amounts received in excess of revenue totaling $97.7M and $58.7M are included in deferred revenue on the Unaudited Condensed Consolidated Balance Sheets as of June 30, 2024 and September 30, 2023, respectively. S&T generates revenues from firm storage contracts and transportation contracts, related usage fees and hub services for the use of storage space, injections and withdrawals from their natural gas storage facility and the delivery of natural gas to customers. Demand fees are recognized as revenue over the term of the related agreement while usage fees and hub services revenues are recognized as services are performed. Revenues from all other activities are recorded in the period during which products or services are delivered and accepted by customers, or over the related contractual term. See Note 3. Revenue for further information. Cash and Cash Equivalents Cash and cash equivalents consist of cash on deposit and temporary investments with maturities of three months or less, and excludes restricted cash related to escrow balances for utility plant projects at NJNG, which are recorded in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Unaudited Condensed Consolidated Balance Sheets to the total amounts in the Unaudited Condensed Consolidated Statements of Cash Flows as follows: (Thousands) June 30, September 30, June 30, Balance Sheet Cash and cash equivalents $ 22,399 $ 954 $ 511 Restricted cash in other noncurrent assets $ 735 $ 563 $ 509 Statements of Cash Flow Cash, cash equivalents and restricted cash $ 23,134 $ 1,517 $ 1,020 Allowance for Doubtful Accounts The Company segregates financial assets, primarily trade receivables and unbilled revenues due in one year or less, into portfolio segments based on shared risk characteristics, such as geographical location and regulatory environment, for evaluation of expected credit losses. Historical and current information, such as average write-offs, are applied to each portfolio segment to estimate the allowance for losses on uncollectible receivables. Additionally, the allowance for losses on uncollectible receivables is adjusted for reasonable and supportable forecasts of future economic conditions, which can include changing weather, commodity prices, regulations, and macroeconomic factors, such as unemployment rates among others. Loans Receivable NJNG currently provides loans, with terms ranging from two Natural Gas in Storage The following table summarizes natural gas in storage, at average cost by segment as of: June 30, 2024 September 30, 2023 ($ in thousands) Natural Gas in Storage Bcf Natural Gas in Storage Bcf NJNG $ 109,111 20.9 $ 175,025 29.1 ES 23,133 14.0 24,476 14.6 Total $ 132,244 34.9 $ 199,501 43.7 Software Costs The Company capitalizes certain costs, such as software design and configuration, coding, testing and installation, that are incurred to purchase or create and implement computer software for internal use. Capitalized costs include external costs of materials and services utilized in developing or obtaining internal-use software and payroll and payroll-related costs for employees who are directly associated with and devote time to the internal-use software project. Maintenance costs are expensed as incurred. Upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Amortization is recorded on the straight-line basis over the estimated useful lives. The following tables present the software costs included in the Unaudited Condensed Consolidated Financial Statements: (Thousands) June 30, September 30, Balance Sheets Utility plant, at cost $ 88,128 $ 51,282 Construction work in progress $ 62,527 $ 55,012 Nonutility plant and equipment, at cost $ 344 $ 344 Accumulated depreciation and amortization, utility plant $ (11,232) $ (7,480) Accumulated depreciation and amortization, nonutility plant and equipment $ (45) $ (36) Software costs $ 10,254 $ 8,375 Three Months Ended Nine Months Ended June 30, June 30, Statements of Operations 2024 2023 2024 2023 Operation and maintenance $ 4,048 $ 3,163 $ 9,975 $ 10,801 Depreciation and amortization $ 1,507 $ 1,320 $ 3,761 $ 3,148 Sale Leasebacks NJNG utilizes sale leaseback arrangements as a financing mechanism to fund certain of its capital expenditures related to natural gas meters, whereby the physical asset is sold concurrent with an agreement to lease the asset back. These agreements include options to renew the lease or repurchase the asset at the end of the term. As NJNG retains control of the natural gas meters, these arrangements do not qualify as a sale. NJNG uses the financing method to account for the transactions. Proceeds from sale leaseback transactions are accounted for as financing arrangements and are included in long-term debt on the Unaudited Condensed Consolidated Balance Sheets. In addition, for certain of its commercial solar energy projects, the Company enters into lease agreements that provide for the sale of commercial solar energy assets to third parties and the concurrent leaseback of the assets. For sale leaseback transactions where the Company has concluded that the arrangement does not qualify as a sale as the Company retains control of the underlying assets, the Company uses the financing method to account for the transaction. Under the financing method, the Company recognizes the proceeds received from the buyer-lessor that constitute a payment to acquire the solar energy asset as a financing arrangement, which is recorded as a component of debt on the Unaudited Condensed Consolidated Balance Sheets. The Company continues to operate the solar assets and is responsible for related expenses and entitled to retain the revenue generated from RECs and energy sales. ITCs and other tax attributes associated with these solar projects transfer to the buyer; however, the payments are structured so that CEV is compensated for the transfer of the related tax attributes. Accordingly, CEV recognizes the equivalent value of the tax attributes in other income on the Unaudited Condensed Consolidated Statements of Operations over the respective five-year ITC recapture periods, starting with the second year of the lease. See Note 9. Debt for more details regarding sale leaseback transactions recorded as financing arrangements. Accumulated Other Comprehensive (Loss) Income The following table presents the changes in the components of accumulated other comprehensive (loss) income, net of related tax effects during the three months ended June 30, 2024 and 2023: (Thousands) Cash Flow Hedges Postemployment Benefit Obligation Total Balance as of March 31, 2024 $ (6,743) $ 7,065 $ 322 Other comprehensive income (loss), net of tax Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $(79), $112, $33, respectively 264 (369) (1) (105) Balance as of June 30, 2024 $ (6,479) $ 6,696 $ 217 Balance as of March 31, 2023 $ (7,795) $ 3,578 $ (4,217) Other comprehensive income, net of tax Amounts reclassified from accumulated other comprehensive income, net of tax of $(79), $(12), $(91) 263 41 (1) 304 Balance as of June 30, 2023 $ (7,532) $ 3,619 $ (3,913) (1) Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations. The following table presents the changes in the components of accumulated other comprehensive (loss) income, net of related tax effects during the nine months ended June 30, 2024 and 2023: (Thousands) Cash Flow Hedges Postemployment Benefit Obligation Total Balance as of September 30, 2023 $ (7,269) $ (2,690) $ (9,959) Other comprehensive income (loss), net of tax Other comprehensive income, before reclassifications, net of tax of $0, $(3,020) and $(3,020), respectively — 9,992 9,992 Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $(238), $184 and $(54), respectively 790 (606) (1) 184 Net current-period other comprehensive income, net of tax of $(238), $(2,836), $(3,074), respectively 790 9,386 10,176 Balance as of June 30, 2024 $ (6,479) $ 6,696 $ 217 Balance as of September 30, 2022 $ (8,322) $ 3,496 $ (4,826) Other comprehensive income, net of tax Amounts reclassified from accumulated other comprehensive income, net of tax of $(238), $(37) and $(275), respectively 790 123 (1) 913 Balance as of June 30, 2023 $ (7,532) $ 3,619 $ (3,913) (1) Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations. Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation. Deferred income taxes and postemployment employee benefit assets previously classified within other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets have been reclassified to their own categories. Intangible assets, net previously classified in its own category on the Unaudited Condensed Consolidated Balance Sheets has been reclassified into other noncurrent assets. Other noncurrent assets and other noncurrent liabilities previously classified in their own categories on the Unaudited Condensed Consolidated Statements of Cash Flow have been combined into one category. Recently Adopted Updates to the Accounting Standards Codification Business Combinations In October 2021, the FASB issued ASU No. 2021-08 , an amendment to ASC 805, Business Combinations , which requires that an acquirer recognize, and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers . The guidance was effective for the Company beginning October 1, 2023, and was applied on a prospective basis to new acquisitions following the date of adoption. As the Company has not executed a transaction that would qualify as a business combination, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption. Derivatives and Hedging In March 2022, the FASB issued ASU No. 2022-01 , an amendment to ASC 815, Derivatives and Hedging , which addresses fair value hedge accounting of interest rate risk for portfolios of financial assets. This update further clarifies guidance previously released in ASU 2017-12 which established the "last-of-layer" method and this update renames that method as the “portfolio layer” method. The guidance was effective for the Company beginning October 1, 2023. As the Company does not currently apply hedge accounting to any of its risk management activities, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption. Financial Instruments In March 2022, the FASB issued ASU No. 2022-02 , an amendment to ASC 326, Financial Instruments-Credit Losses , which eliminates the accounting guidance for creditors in troubled debt restructuring. It also aligns conflicting disclosure requirement guidance in ASC 326 by requiring disclosure of current-period gross write-offs by year of origination. The amendment also adds new disclosures for creditors with loan refinancing and restructuring for borrowers experiencing financial difficulty. The guidance was effective for the Company beginning October 1, 2023. Since the Company has not experienced a troubled debt restructuring, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption. Other Recent Updates to the Accounting Standards Codification Fair Value Measurement In June 2022, the FASB issued ASU No. 2022-03 , an amendment to ASC 820, Fair Value Measurement . The amendment clarifies the fair value principles when measuring the fair value of an equity security subject to a contractual sale restriction. The guidance is effective for the Company on October 1, 2024, and will be applied on a prospective basis. At this time, the Company does not have equity securities subject to contractual sale restrictions, and therefore this amendment would only impact the Company upon adoption if, in the future, it entered into such transactions. Leases In March 2023, the FASB issued ASU No. 2023-01 , an amendment to ASC 842, Leases, which applies to arrangements between related parties under common control. This update requires that all entities with common control arrangements classify and account for these leases on the same basis as an arrangement with an unrelated party. If the lessee in these types of arrangements continues to control the use of the underlying asset through a lease, the leasehold improvements are to be amortized over the improvements’ useful life to the common control group, regardless of the lease term. The guidance is effective for the Company on October 1, 2024, and the Company will elect to apply it on a prospective basis. At this time, the Company does not have leases that are impacted by this amendment, and therefore it would only impact the Company upon adoption if, in the future, it entered into applicable transactions. Business Combinations In August 2023, the FASB issued ASU No. 2023-05 , an amendment to ASC 805, Business Combinations , which addresses how a joint venture should recognize contributions received upon its formation. Joint ventures must account for initial assets and liabilities received at fair value on the date the joint venture is formed. The guidance is effective for the Company for joint ventures formed beginning January 1, 2025, and the Company can elect to apply it either prospectively or retrospectively back to a joint venture’s formation date provided adequate information is available. Early adoption is permitted. This amendment would only impact the Company upon adoption if, in the future, it entered into an applicable transaction. Segment Reporting In November 2023, the FASB issued ASU No. 2023-07 , an amendment to ASC 280, Segment Reporting , which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The update requires entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker and included within segment profit and loss, and it enhances interim disclosure requirements to conform with annual requirements. This update becomes effective for the Company on October 1, 2024 for the first annual period and on October 1, 2025 for the interim periods. It will be applied retrospectively to all periods presented, with early adoption permitted. The Company is currently evaluating the amendment to understand the impacts on its financial position, results of operations, cash flows and disclosures upon adoption. Income Taxes In December 2023, the FASB issued ASU No. 2023-09 , an amendment to ASC 740, Income Taxes |
REVENUE
REVENUE | 9 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | 3. REVENUE Revenue is recognized when a performance obligation is satisfied by transferring control of a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer using the output method of progress. The Company elected to apply the invoice practical expedient for recognizing revenue, whereby the amounts invoiced to customers represent the value to the customer and the Company’s performance completion as of the invoice date. Therefore, the Company does not disclose related unsatisfied performance obligations. The Company also elected the practical expedient to exclude from the transaction price all sales taxes that are assessed by a governmental authority and therefore presents sales tax net in operating revenues on the Unaudited Condensed Consolidated Statements of Operations. Below is a listing of performance obligations that arise from contracts with customers, along with details on the satisfaction of each performance obligation, the significant payment terms and the nature of the goods and services being transferred, by reporting segment and other business operations: Revenue Recognized Over Time: Segment/ Performance Obligation Description NJNG Natural gas utility sales NJNG's performance obligation is to provide natural gas to residential, commercial and industrial customers as demanded, based on regulated tariff rates, which are established by the BPU. Revenues from the sale of natural gas are recognized in the period that natural gas is delivered and consumed by customers, including an estimate for quantities consumed but not billed during the period. Payment is due each month for the previous month's deliveries. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the billing period. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects and the most current tariff rates. NJNG is entitled to be compensated for performance completed until service is terminated. Customers may elect to purchase the natural gas commodity from NJNG or may contract separately to purchase natural gas directly from third-party suppliers. As NJNG is acting as an agent on behalf of the third-party supplier, revenue is recorded for the delivery of natural gas to the customer. CEV Commercial solar electricity CEV operates wholly-owned solar projects that recognize revenue as electricity is generated and transferred to the customer. The performance obligation is to provide electricity to the customer in accordance with contract terms or the interconnection agreement and is satisfied upon transfer of electricity generated. Revenue is recognized as invoiced and the payment is due each month for the previous month's services. Revenue Recognized Over Time (continued): Segment/ Performance Obligation Description CEV Residential solar electricity CEV provides access to residential rooftop and ground-mount solar equipment to customers who then pay the Company a monthly fee. The performance obligation is to provide electricity to the customer based on generation from the underlying residential solar asset and is satisfied upon transfer of electricity generated. Revenue is derived from the contract terms and is recognized as invoiced, with the payment due each month for the previous month's services. CEV Renewable energy certificates Certain CEV projects generate TRECs and SREC IIs under the established Administratively Determined Incentive Program. A TREC or SREC II is created for every MWh of electricity produced by a solar generator. The performance obligation of CEV is to generate electricity. TRECs and SREC IIs under the Administratively Determined Incentive Program are purchased monthly by a REC Administrator. Revenue is recognized upon generation. ES Natural gas services The performance obligation of ES is to provide the customer transportation, storage and asset management services on an as-needed basis. ES generates revenue through management fees, demand charges, reservation fees and transportation charges centered around the buying and selling of the natural gas commodity, representing one series of distinct performance obligations. Revenue is recognized based upon the underlying natural gas quantities physically delivered and the customer obtaining control. ES invoices customers in line with the terms of the contract and based on the services provided. Payment is due upon receipt of the invoice. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed upon term. S&T Natural gas services The performance obligation of S&T is to provide the customer with storage and transportation services. S&T generates revenues from firm storage contracts and transportation contracts, injection and withdrawal at the storage facility and the delivery of natural gas to customers. Revenue is recognized over time as customers receive the benefits of its service as it is performed on their behalf using an output method based on actual deliveries. Demand fees are recognized as revenue over the term of the related agreement. HSO Service contracts Home Services enters into service contracts with homeowners to provide maintenance and replacement services of applicable heating, cooling or ventilation equipment. NJR Retail enters into warranty contracts with homeowners for various appliances. All services provided relate to a distinct performance obligation which is to provide services for the specific equipment over the term of the contract. Revenue is recognized on a straight-line basis over the term of the contract and payment is due upon receipt of the invoice. Revenue Recognized at a Point in Time: ES Natural gas services For a permanent release of pipeline capacity, the performance obligation of ES is the release of the pipeline capacity associated with certain natural gas transportation contracts and the transfer of the underlying contractual rights to the counterparty. Revenue is recognized upon the transfer of the underlying contractual rights. S&T Natural gas services The performance obligation of S&T is to provide the customer with storage and transportation services. S&T generates revenues from usage fees and hub services for the use of storage space, injection and withdrawal from the storage facility. Hub services include park and loan transactions and wheeling. Usage fees and hub services revenues are recognized as services are performed. HSO Installations Home Services installs appliances, including but not limited to, furnaces, air conditioning units, boilers and generators for customers. The distinct performance obligation is the installation of the contracted appliance, which is satisfied at the point in time the item is installed. The transaction price for each installation differs accordingly. Revenue is recognized at a point in time upon completion of the installation, which is when the customer is billed. Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the three months ended June 30, 2024 and 2023, are as follows: (Thousands) NJNG CEV ES S&T HSO Total 2024 Natural gas utility sales (1) $ 138,804 — — — — $ 138,804 Natural gas services — — 16,204 24,475 — 40,679 Service contracts — — — — 9,062 9,062 Installations and maintenance — — — — 7,294 7,294 Renewable energy certificates — 4,872 — — — 4,872 Electricity sales — 9,575 — — — 9,575 Eliminations (2) (337) — — — (57) (394) Revenues from contracts with customers 138,467 14,447 16,204 24,475 16,299 209,892 Alternative revenue programs (3) (1,033) — — — — (1,033) Derivative instruments 20,339 201 (4) 46,237 — — 66,777 Revenues out of scope 19,306 201 46,237 — — 65,744 Total operating revenues $ 157,773 14,648 62,441 24,475 16,299 $ 275,636 2023 Natural gas utility sales (1) $ 134,253 — — — — $ 134,253 Natural gas services — — 16,021 22,201 — 38,222 Service contracts — — — — 8,842 8,842 Installations and maintenance — — — — 6,113 6,113 Renewable energy certificates — 4,720 — — — 4,720 Electricity sales — 8,274 — — — 8,274 Eliminations (2) (337) — — (766) (6) (1,109) Revenues from contracts with customers 133,916 12,994 16,021 21,435 14,949 199,315 Alternative revenue programs (3) 5,211 — — — — 5,211 Derivative instruments 5,844 184 (4) 54,151 — — 60,179 Eliminations (2) — — (630) — — (630) Revenues out of scope 11,055 184 53,521 — — 64,760 Total operating revenues $ 144,971 13,178 69,542 21,435 14,949 $ 264,075 (1) Includes building rent related to the Wall headquarters, which is eliminated in consolidation. (2) Consists of transactions between subsidiaries that are eliminated in consolidation. (3) Includes CIP revenue. (4) Includes SREC revenue. Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the nine months ended June 30, 2024 and 2023, are as follows: (Thousands) NJNG CEV ES S&T HSO Total 2024 Natural gas utility sales (1) $ 767,698 — — — — $ 767,698 Natural gas services — — 48,617 71,379 — 119,996 Service contracts — — — — 27,073 27,073 Installations and maintenance — — — — 19,022 19,022 Renewable energy certificates — 10,194 — — — 10,194 Electricity sales — 22,842 — — — 22,842 Eliminations (2) (1,012) — — (1,348) (210) (2,570) Revenues from contracts with customers 766,686 33,036 48,617 70,031 45,885 964,255 Alternative revenue programs (3) 3,812 — — — — 3,812 Derivative instruments 143,231 26,232 (4) 258,354 — — 427,817 Eliminations (2) — — 4,875 — — 4,875 Revenues out of scope 147,043 26,232 263,229 — — 436,504 Total operating revenues $ 913,729 59,268 311,846 70,031 45,885 $ 1,400,759 2023 Natural gas utility sales (1) $ 749,618 — — — — $ 749,618 Natural gas services — — 60,705 69,926 — 130,631 Service contracts — — — — 26,242 26,242 Installations and maintenance — — — — 16,427 16,427 Renewable energy certificates — 8,007 — — — 8,007 Electricity sales — 22,062 — — — 22,062 Eliminations (2) (1,012) — — (3,474) (202) (4,688) Revenues from contracts with customers 748,606 30,069 60,705 66,452 42,467 948,299 Alternative revenue programs (3) 29,016 — — — — 29,016 Derivative instruments 125,258 10,307 (4) 527,979 — — 663,544 Eliminations (2) — — (9,190) — — (9,190) Revenues out of scope 154,274 10,307 518,789 — — 683,370 Total operating revenues $ 902,880 40,376 579,494 66,452 42,467 $ 1,631,669 (1) Includes building rent related to the Wall headquarters, which is eliminated in consolidation. (2) Consists of transactions between subsidiaries that are eliminated in consolidation. (3) Includes CIP revenue. (4) Includes SREC revenue. Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the three months ended June 30, 2024 and 2023, are as follows: (Thousands) NJNG CEV ES S&T HSO Total 2024 Residential $ 97,112 3,647 — — 16,272 $ 117,031 Commercial and industrial 21,279 10,800 16,204 24,475 27 72,785 Firm transportation 17,481 — — — — 17,481 Interruptible, off-tariff and other 2,595 — — — — 2,595 Revenues out of scope 19,306 201 46,237 — — 65,744 Total operating revenues $ 157,773 14,648 62,441 24,475 16,299 $ 275,636 2023 Residential $ 94,340 3,585 — — 14,922 $ 112,847 Commercial and industrial 20,220 9,409 16,021 21,435 27 67,112 Firm transportation 18,088 — — — — 18,088 Interruptible, off-tariff and other 1,268 — — — — 1,268 Revenues out of scope 11,055 184 53,521 — — 64,760 Total operating revenues $ 144,971 13,178 69,542 21,435 14,949 $ 264,075 Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the nine months ended June 30, 2024 and 2023, are as follows: (Thousands) NJNG CEV ES S&T HSO Total 2024 Residential $ 580,559 10,262 — — 45,759 $ 636,580 Commercial and industrial 107,400 22,774 48,617 70,031 126 248,948 Firm transportation 72,596 — — — — 72,596 Interruptible, off-tariff and other 6,131 — — — — 6,131 Revenues out of scope 147,043 26,232 263,229 — — 436,504 Total operating revenues $ 913,729 59,268 311,846 70,031 45,885 $ 1,400,759 2023 Residential $ 558,901 10,082 — — 42,191 $ 611,174 Commercial and industrial 113,120 19,987 60,705 66,452 276 260,540 Firm transportation 73,655 — — — — 73,655 Interruptible, off-tariff and other 2,930 — — — — 2,930 Revenues out of scope 154,274 10,307 518,789 — — 683,370 Total operating revenues $ 902,880 40,376 579,494 66,452 42,467 $ 1,631,669 Customer Accounts Receivable/Credit Balances and Deposits The timing of revenue recognition, customer billings and cash collections resulting in accounts receivables, billed and unbilled, and customers’ credit balances and deposits on the Unaudited Condensed Consolidated Balance Sheets during the nine months ended June 30, 2024 and 2023, are as follows: Customer Accounts Receivable Customers' Credit (Thousands) Billed Unbilled Balances and Deposits Balance as of September 30, 2023 $ 97,540 $ 19,100 $ 44,910 Increase (decrease) 30,724 1,464 (16,029) Balance as of June 30, 2024 $ 128,264 $ 20,564 $ 28,881 Balance as of September 30, 2022 $ 222,297 $ 13,769 $ 33,246 (Decrease) increase (111,834) 2,723 (2,979) Balance as of June 30, 2023 $ 110,463 $ 16,492 $ 30,267 The following table provides information about receivables, which are included within accounts receivable, billed and unbilled, and customers’ credit balances and deposits, respectively, on the Unaudited Condensed Consolidated Balance Sheets as of June 30, 2024 and September 30, 2023: (Thousands) NJNG CEV ES S&T HSO Total June 30, 2024 Customer accounts receivable Billed $ 84,923 8,819 23,509 8,360 2,653 $ 128,264 Unbilled 12,778 7,786 — — — 20,564 Customers' credit balances and deposits (28,860) — — (21) — (28,881) Total $ 68,841 16,605 23,509 8,339 2,653 $ 119,947 September 30, 2023 Customer accounts receivable Billed $ 55,234 9,962 23,716 6,577 2,051 $ 97,540 Unbilled 10,784 8,316 — — — 19,100 Customers' credit balances and deposits (44,898) — — (12) — (44,910) Total $ 21,120 18,278 23,716 6,565 2,051 $ 71,730 |
REGULATION
REGULATION | 9 Months Ended |
Jun. 30, 2024 | |
Regulated Operations [Abstract] | |
REGULATION | 4. REGULATION NJNG is subject to cost-based regulation, therefore, it is permitted to recover authorized operating expenses and earn a reasonable return on its utility capital investments based on the BPU's approval. The impact of the ratemaking process and decisions authorized by the BPU allows NJNG to capitalize or defer certain costs that are expected to be recovered from its customers as regulatory assets and to recognize certain obligations representing amounts that are probable future expenditures as regulatory liabilities in accordance with accounting guidance applicable to regulated operations. NJNG's recovery of costs is facilitated through its base rates, BGSS and other regulatory tariff riders. NJNG is required to make filings to the BPU for review of its BGSS, CIP and other programs and related rates. Annual rate changes are typically requested to be effective at the beginning of the following fiscal year. The current base rates include a weighted average cost of capital of 6.84% and a return on common equity of 9.6%. All rate and program changes are subject to proper notification and BPU review and approval. In addition, NJNG is permitted to implement certain BGSS rate changes on a provisional basis with proper notification to the BPU. Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for NJNG are comprised of the following: (Thousands) June 30, September 30, Regulatory assets-current New Jersey Clean Energy Program $ 20,265 $ 15,804 Conservation Incentive Program 54,169 50,356 Derivatives at fair value, net 13,347 6,017 Other current regulatory assets 1,791 1,410 Total current regulatory assets $ 89,572 $ 73,587 Regulatory assets-noncurrent Environmental remediation costs: Expended, net of recoveries $ 74,316 $ 66,298 Liability for future expenditures 153,818 169,390 Deferred income taxes 43,107 41,667 SAVEGREEN 93,713 83,589 Postemployment and other benefit costs 9,493 55,274 Cost of removal 122,859 112,362 Other noncurrent regulatory assets 54,846 51,019 Total noncurrent regulatory assets $ 552,152 $ 579,599 Regulatory liability-current Overrecovered natural gas costs $ 31,244 $ 30,637 Total current regulatory liabilities $ 31,244 $ 30,637 Regulatory liabilities-noncurrent Tax Act impact (1) $ 176,583 $ 180,347 Other noncurrent regulatory liabilities 137 111 Total noncurrent regulatory liabilities $ 176,720 $ 180,458 (1) Reflects the re-measurement and subsequent amortization of NJNG's net deferred tax liabilities as a result of the change in federal tax rates enacted in the Tax Act. The Tax Act is an Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, previously known as The Tax Cuts and Jobs Act of 2017. Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for Adelphia are comprised of the following: (Thousands) June 30, September 30, Total noncurrent regulatory assets $ 5,128 $ 5,231 Total current regulatory liabilities $ 329 $ 1,650 The assets are comprised primarily of the tax benefit associated with the equity component of AFUDC and the liability consists primarily of scheduling penalties. Recovery of regulatory assets is subject to FERC approval. Regulatory filings and/or actions that occurred during the current fiscal year include the following: • On November 9, 2023, NJNG filed a letter petition seeking BPU approval to extend NJNG’s current SAVEGREEN program through December 31, 2024, with an additional $76.9M in order to meet customer demand for this program, which was approved by the BPU on April 30, 2024. • On December 1, 2023, NJNG filed a petition seeking BPU approval of its 2024 SAVEGREEN program, which would support new energy efficiency, demand response and building decarbonization start-up programs from January 1, 2025 through June 30, 2027. The 2024 SAVEGREEN program includes $245.1M of direct investment, $217.2M in financing options and $20.1M in O&M. • On January 31, 2024, NJNG filed a base rate case with the BPU requesting a natural gas revenue increase of $222.6M including a recovery of infrastructure investments, a change in the Company’s overall rate of return on rate base to 7.57% and a change in the return on common equity to 10.42%. On May 15, 2024, the filing was updated to reflect actual results through March 31, 2024, which reduced the requested increase to $219.6M. • On March 20, 2024, the BPU approved NJNG's annual SBC filing of RAC expenditures through June 30, 2023, which included an increase to the RAC annual recoveries of approximately $2.4M and an increase to the NJCEP annual recoveries of approximately $5.5M, effective April 1, 2024. • On March 28, 2024, NJNG submitted its annual IIP filing to the BPU requesting a rate increase for capital expenditures of $43.5M through June 30, 2024. The filing was updated July 26, 2024, to reflect actual expenses of $41.2M through June 30, 2024, which will result in a $5.3M revenue increase, with a proposed effective date of October 1, 2024. • On April 30, 2024, the BPU approved on a final basis NJNG's June 2023 filing, which included a $38.6M decrease to the annual revenues credited to BGSS, a $7.4M annual decrease related to its balancing charge and a $27.0M increase to CIP rates for residential and small business customers, which was effective October 1, 2023. • On May 31, 2024, NJNG filed its annual petition to modify its BGSS rates for residential and small business customers, the balancing charge and CIP rates. This included a $31.0M decrease to the annual revenues credited to BGSS, a $40.3M annual increase related to its balancing charge and a $0.6M decrease to CIP rates, which would be effective October 1, 2024. • On May 31, 2024, NJNG submitted its annual EE filing with the BPU for the recovery of SAVEGREEN costs, proposing an increase in annual recoveries of approximately $5.6M, which would be effective October 1, 2024. • On June 28, 2024, NJNG submitted its annual USF filing to the BPU requesting an increase to the statewide USF rate, which will result in a $6.8M increase to annual recoveries, which would be effective October 1, 2024. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | 5. DERIVATIVE INSTRUMENTS The Company is subject primarily to commodity price risk due to fluctuations in the market price of natural gas, SRECs and electricity. To manage this risk, the Company enters into a variety of derivative instruments including, but not limited to, futures contracts, physical forward contracts, financial options and swaps to economically hedge the commodity price risk associated with its existing and anticipated commitments to purchase and sell natural gas, SRECs and electricity. In addition, the Company is exposed to foreign currency and interest rate risk and may utilize foreign currency derivatives to hedge Canadian dollar denominated natural gas purchases and/or sales and interest rate derivatives to reduce exposure to fluctuations in interest rates. All of these types of contracts are accounted for as derivatives, unless the Company elects NPNS, which is done on a contract-by-contract election. Accordingly, all of the financial and certain of the Company's physical derivative instruments are recorded at fair value on the Unaudited Condensed Consolidated Balance Sheets. For a more detailed discussion of the Company’s fair value measurement policies and level disclosures associated with the Company’s derivative instruments, see Note 6. Fair Value . Energy Services ES chooses not to designate its financial commodity and physical forward commodity derivatives as accounting hedges or to elect NPNS. The changes in the fair value of these derivatives are recorded as a component of natural gas purchases or operating revenues, as appropriate for ES, on the Unaudited Condensed Consolidated Statements of Operations as unrealized gains or losses. For ES at settlement, realized gains and losses on all financial derivative instruments are recognized as a component of natural gas purchases and realized gains and losses on all physical derivatives follow the presentation of the related unrealized gains and losses as a component of either natural gas purchases or operating revenues. ES also enters into natural gas transactions in Canada and, consequently, is exposed to fluctuations in the value of Canadian currency relative to the U.S. dollar. ES may utilize foreign currency derivatives to lock in the exchange rates associated with natural gas transactions denominated in Canadian currency. The derivatives may include currency forwards, futures, or swaps and are accounted for as derivatives. These derivatives are typically used to hedge demand fee payments on pipeline capacity, storage and natural gas purchase agreements. As a result of ES entering into transactions to borrow natural gas, commonly referred to as “park and loans,” an embedded derivative is recognized relating to differences between the fair value of the amount borrowed and the fair value of the amount that will ultimately be repaid, based on changes in the forward price for natural gas prices at the borrowed location over the contract term. This embedded derivative is accounted for as a forward sale in the month in which the repayment of the borrowed natural gas is expected to occur, and is considered a derivative transaction that is recorded at fair value on the Unaudited Condensed Consolidated Balance Sheets, with changes in value recognized in current period earnings. Expected production of SRECs is hedged through the use of forward and futures contracts. All contracts require the Company to physically deliver SRECs through the transfer of certificates as per contractual settlement schedules. ES recognizes changes in the fair value of these derivatives as a component of operating revenues. Upon settlement of the contract, the related revenue is recognized when the SREC is transferred to the counterparty. Natural Gas Distribution Changes in fair value of NJNG's financial commodity derivatives are recorded as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets. The Company elects NPNS accounting treatment on all physical commodity contracts that NJNG entered into on or before December 31, 2015, and accounts for these contracts on an accrual basis. Accordingly, physical natural gas purchases are recognized in regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets when the contract settles and the natural gas is delivered. The average cost of natural gas is charged to expense in the current period earnings based on the BGSS factor times the therm sales. NJNG no longer elects NPNS accounting treatment on a portfolio basis. However, since NPNS is a contract-by-contract election, where it makes sense to do so, NJNG can and may elect to treat certain contracts as normal. Because NJNG recovers these amounts through future BGSS rates as increases or decreases to the cost of natural gas in NJNG’s tariff for natural gas service, the changes in fair value of these contracts are deferred as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets. Clean Energy Ventures The Company elects NPNS accounting treatment on PPA contracts executed by CEV that meet the definition of a derivative and accounts for the contract on an accrual basis. Accordingly, electricity sales are recognized in revenues throughout the term of the PPA as electricity is delivered. NPNS is a contract-by-contract election and where it makes sense to do so, the Company can and may elect to treat certain contracts as normal. Fair Value of Derivatives The following table presents the fair value of the Company's derivative assets and liabilities recognized on the Unaudited Condensed Consolidated Balance Sheets as of: Derivatives at Fair Value June 30, 2024 September 30, 2023 (Thousands) Balance Sheet Location Assets Liabilities Assets Liabilities Derivatives not designated as hedging instruments: NJNG: Physical commodity contracts Derivatives - current $ 81 $ 1 $ 43 $ 488 Financial commodity contracts Derivatives - current — 60 6,110 20 ES: Physical commodity contracts Derivatives - current 1,636 6,197 6,209 12,757 Derivatives - noncurrent 816 11,422 802 7,870 Financial commodity contracts Derivatives - current 3,054 1,374 18,393 2,880 Derivatives - noncurrent 163 540 762 97 Total fair value of derivatives $ 5,750 $ 19,594 $ 32,319 $ 24,112 Offsetting of Derivatives The Company transacts under master netting arrangements or equivalent agreements that allow it to offset derivative assets and liabilities with the same counterparty. However, the Company’s policy is to present its derivative assets and liabilities on a gross basis at the contract level unit of account on the Unaudited Condensed Consolidated Balance Sheets. The following table summarizes the reported gross amounts, the amounts that the Company has the right to offset but elects not to, financial collateral and the net amounts the Company could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to. Asset Derivatives Liability Derivatives (Thousands) Fair Value (1) Amounts Offset (2) Collateral Received/Pledged (3) Net Value (4) Fair Value (1) Amounts Offset (2) Collateral Received/Pledged (3) Net Value (4) As of June 30, 2024 ES Contracts Physical commodity $ 2,452 (491) — $ 1,961 $ 17,619 (491) (10,569) $ 6,559 Financial commodity 3,217 (1,914) — 1,303 1,914 (1,914) — — Total ES $ 5,669 (2,405) — $ 3,264 $ 19,533 (2,405) (10,569) $ 6,559 NJNG Contracts Physical commodity $ 81 — — $ 81 $ 1 — — $ 1 Financial commodity — — — — 60 — (60) — Total NJNG $ 81 — — $ 81 $ 61 — (60) $ 1 As of September 30, 2023 ES Contracts Physical commodity $ 7,011 (1,236) — $ 5,775 $ 20,627 (1,236) (9,728) $ 9,663 Financial commodity 19,155 (2,977) (16,178) — 2,977 (2,977) — — Total ES $ 26,166 (4,213) (16,178) $ 5,775 $ 23,604 (4,213) (9,728) $ 9,663 NJNG Contracts Physical commodity $ 43 (3) — $ 40 $ 488 (3) — $ 485 Financial commodity 6,110 (20) — 6,090 20 (20) — — Total NJNG $ 6,153 (23) — $ 6,130 $ 508 (23) — $ 485 (1) Derivative assets and liabilities are presented on a gross basis on the condensed consolidated balance sheets as the Company does not elect balance sheet offsetting under ASC 210-20. (2) Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting. (3) Financial collateral includes cash balances at FCMs as well as cash received from or pledged to other counterparties. (4) Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20. ES utilizes financial derivatives to economically hedge the gross margin associated with the purchase of physical natural gas to be used for storage injection and its subsequent sale at a later date. The gains or losses on the financial transactions that are economic hedges of the cost of the purchased natural gas are recognized prior to the gains or losses on the physical transaction, which are recognized in earnings when the natural gas is delivered. Therefore, mismatches between the timing of the recognition of realized gains or losses on the financial derivative instruments and gains or losses associated with the actual sale of the natural gas that is being economically hedged along with fair value changes in derivative instruments, creates volatility in the results of ES, although the Company's intended economic results relating to the entire transaction are unaffected. The following table presents the effect of derivative instruments recognized on the Unaudited Condensed Consolidated Statements of Operations for the periods set forth below: (Thousands) Location of gain (loss) recognized in income on derivatives Amount of gain (loss) recognized Three Months Ended Nine Months Ended June 30, June 30, Derivatives not designated as hedging instruments: 2024 2023 2024 2023 ES: Physical commodity contracts Operating revenues $ 3,560 $ 12,648 $ 13,939 $ 29,894 Physical commodity contracts Natural gas purchases 210 (5,914) (1,800) (6,708) Financial commodity contracts Natural gas purchases (5,415) 4,858 10,208 76,332 Total unrealized and realized (loss) gain $ (1,645) $ 11,592 $ 22,347 $ 99,518 NJNG’s derivative contracts are part of the Company's risk management activities that relate to its natural gas purchases and BGSS incentive programs. At settlement, the resulting gains and/or losses are payable to or recoverable from utility customers and are deferred in regulatory assets or liabilities resulting in no impact to earnings. The following table reflects the gains (losses) associated with NJNG's derivative instruments for the periods set forth below: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2024 2023 2024 2023 NJNG: Physical commodity contracts $ 188 $ 315 $ (4,802) $ (27,919) Financial commodity contracts 7,438 18,000 8,628 (51,957) Total unrealized and realized gain (loss) $ 7,626 $ 18,315 $ 3,826 $ (79,876) During fiscal 2020, NJR entered into treasury lock transactions to fix the benchmark treasury rate associated with debt issuances that were finalized in 2020. NJR designates its treasury lock contracts as cash flow hedges; therefore, changes in fair value of the effective portion of the hedges are recorded in OCI and upon settlement of the contracts, realized gains and (losses) are reclassified from OCI to interest expense on the Consolidated Statements of Operations ratable over the term of the associated debt. Pre-tax losses of $0.3M were reclassified during both the three months ended June 30, 2024 and 2023, and pre-tax losses of $1.0M were reclassified during both the nine months ended June 30, 2024 and 2023. NJNG and ES had the following outstanding long (short) derivatives as of: Natural Gas Distribution Energy Services Volumes (Bcf) Futures Physical Commodity Futures Physical Commodity June 30, 2024 13.9 4.0 (6.9) 2.2 September 30, 2023 32.1 12.1 (6.9) 0.2 Not included in the above table are 1.5M and 1.3M SRECs that were open as of June 30, 2024 and September 30, 2023, respectively. Broker Margin Futures exchanges have contract specific margin requirements that require the posting of cash or cash equivalents relating to traded contracts. Margin requirements consist of initial margin that is posted upon the initiation of a position, maintenance margin that is usually expressed as a percent of initial margin, and variation margin that fluctuates based on the daily marked-to-market relative to maintenance margin requirements. The Company maintains separate broker margin accounts for NJNG and ES. The balances by reporting segment are as follows: (Thousands) Balance Sheet Location June 30, September 30, NJNG Restricted broker margin accounts-current assets $ 1,883 $ 5,915 ES Restricted broker margin accounts-current assets $ 17,011 $ 14,881 Restricted broker margin accounts-current liabilities $ — $ 8,029 Wholesale Credit Risk NJNG, ES, CEV and S&T are exposed to credit risk as a result of their sales/wholesale marketing activities. As a result of the inherent volatility in the prices of natural gas commodities, derivatives and SRECs, the market value of contractual positions with individual counterparties could exceed established credit limits or collateral provided by those counterparties. If a counterparty fails to perform the obligations under its contract then the Company could sustain a loss. The Company monitors and manages the credit risk of its wholesale operations through credit policies and procedures that management believes reduce overall credit risk. These policies include a review and evaluation of current and prospective counterparties' financial statements and/or credit ratings, daily monitoring of counterparties' credit limits and exposure, daily communication with traders regarding credit status and the use of credit mitigation measures, such as collateral requirements and netting agreements. Examples of collateral include letters of credit and cash received for either prepayment or margin deposit. Collateral may be requested due to the Company's election not to extend credit or because exposure exceeds defined thresholds. Most of the Company's wholesale marketing contracts contain standard netting provisions. These contracts include those governed by ISDA and the NAESB. The netting provisions refer to payment netting, whereby receivables and payables with the same counterparty are offset and the resulting net amount is paid to the party to which it is due. Internally-rated exposure applies to counterparties that are not rated by Fitch or Moody's. In these cases, the counterparty's or guarantor's financial statements are reviewed, and similar methodologies and ratios used by Fitch and/or Moody's are applied to arrive at a substitute rating. Gross credit exposure is defined as the unrealized fair value of physical and financial derivative commodity contracts, plus any outstanding wholesale receivable for the value of natural gas delivered and/or financial derivative commodity contract that has settled for which payment has not yet been received. The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of June 30, 2024. The amounts presented below have not been reduced by any collateral received or netting and exclude accounts receivable for NJNG retail natural gas sales and services and CEV residential solar installations. (Thousands) Gross Credit Exposure Investment grade $ 108,200 Noninvestment grade 9,074 Internally rated investment grade 17,858 Internally rated noninvestment grade 17,627 Total $ 152,759 Conversely, certain of NJNG's and ES' derivative instruments are linked to agreements containing provisions that would require cash collateral payments from the Company if certain events occur. These provisions vary based upon the terms in individual counterparty agreements and can result in cash payments if NJNG's credit rating were to fall below its current level. Specifically, most, but not all, of these additional payments will be triggered if NJNG's debt is downgraded by the major credit agencies, regardless of investment grade status. In addition, some of these agreements include threshold amounts that would result in additional collateral payments if the values of derivative liabilities were to exceed the maximum values provided for in relevant counterparty agreements. Other provisions include payment features that are not specifically linked to ratings but are based on certain financial metrics. Collateral amounts associated with any of these conditions are determined based on a sliding scale and are contingent upon the degree to which the Company's credit rating and/or financial metrics deteriorate, and the extent to which liability amounts exceed applicable threshold limits. Derivative instruments with credit-risk-related contingent features that were in a liability position for which collateral is required were not material as of June 30, 2024 and September 30, 2023. 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 | 9 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | 6. FAIR VALUE Fair Value of Assets and Liabilities The fair value of cash and cash equivalents, accounts receivable, current loan receivables, accounts payable, commercial paper and borrowings under revolving credit facilities are estimated to equal their carrying amounts due to the short maturity of those instruments. Non-current loans receivable are recorded based on what the Company expects to receive, which approximates fair value, in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets. The Company regularly evaluates the credit quality and collection profile of its customers to approximate fair value. The estimated fair value of long-term debt, including current maturities, excluding natural gas meter finance arrangements, debt issuance costs and solar asset financing obligations, is as follows: (Thousands) June 30, September 30, Carrying value (1) (2) $ 2,692,845 $ 2,587,845 Fair market value $ 2,306,291 $ 2,106,536 (1) Excludes NJNG's debt issuance costs of $10.6M and $9.8M as of June 30, 2024 and September 30, 2023, respectively. (2) Excludes NJR's debt issuance costs of $3.2M and $3.7M as of June 30, 2024 and September 30, 2023, respectively. The Company enters into sale leaseback transactions for certain commercial solar assets and natural gas meters. These transactions are recorded within long-term debt on the Unaudited Condensed Consolidated Balance Sheets. The carrying value of solar sale leasebacks was $278.3M and $278.4M and the estimated fair value was $275.8M and $268.1M as of June 30, 2024 and September 30, 2023, respectively. The carrying value of the natural gas meter sale leasebacks was $33.8M and $31.4M and the estimated fair value of certain natural gas meter sale leasebacks amounted to $27.0M and $20.9M as of June 30, 2024 and September 30, 2023, respectively. The Company utilizes a discounted cash flow method to determine the fair value of its debt. Inputs include observable municipal and corporate yields, as appropriate for the maturity of the specific issue and the Company's credit rating. As of June 30, 2024, the Company discloses its debt within Level 2 of the fair value hierarchy. Fair Value Hierarchy The Company applies fair value measurement guidance to its financial assets and liabilities, as appropriate, which include financial derivatives and physical commodity contracts qualifying as derivatives, investments in equity securities and other financial assets and liabilities. In addition, authoritative accounting literature prescribes the use of a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on the source of the data used to develop the price inputs. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to inputs that are based on unobservable market data and includes the following: Fair Value Hierarchy Description of Fair Value Level Fair Value Technique Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets The Company’s Level 1 assets and liabilities include exchange-traded natural gas futures and options contracts, listed equities and money market funds. Exchange-traded futures and options contracts include all energy contracts traded on the NYMEX, CME and ICE that the Company refers to internally as basis swaps, fixed swaps, futures and financial options that are cleared through an FCM. Level 2 Other significant observable inputs, such as interest rates or price data, including both commodity and basis pricing that is observed either directly or indirectly from publications or pricing services The Company’s Level 2 assets and liabilities include over-the-counter physical forward commodity contracts and swap contracts, SREC forward sales or derivatives that are initially valued using observable quotes and are subsequently adjusted to include time value, credit risk or estimated transport pricing components for which no basis price is available. Level 2 financial derivatives consist of transactions with non-FCM counterparties (basis swaps, fixed swaps and/or options). Inputs are verifiable and do not require significant management judgment. For some physical commodity contracts, the Company utilizes transportation tariff rates that are publicly available and that it considers to be observable inputs that are equivalent to market data received from an independent source. There are no significant judgments or adjustments applied to the transportation tariff inputs and no market perspective is required. Even if the transportation tariff input were considered to be a “model,” it would still be considered to be a Level 2 input as the data is: • widely accepted and public; • non-proprietary and sourced from an independent third party; and • observable and published. These additional adjustments are generally not considered to be significant to the ultimate recognized values. Level 3 Inputs derived from a significant amount of unobservable market data These include the Company’s best estimate of fair value and are derived primarily through the use of internal valuation methodologies. Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Thousands) (Level 1) (Level 2) (Level 3) Total As of June 30, 2024 Assets: Physical commodity contracts $ — $ 2,533 $ — $ 2,533 Financial commodity contracts 3,217 — — 3,217 Money market funds 21,631 — — 21,631 Other 2,603 — — 2,603 Total assets at fair value $ 27,451 $ 2,533 $ — $ 29,984 Liabilities: Physical commodity contracts $ — $ 17,620 $ — $ 17,620 Financial commodity contracts 1,974 — — 1,974 Total liabilities at fair value $ 1,974 $ 17,620 $ — $ 19,594 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Thousands) (Level 1) (Level 2) (Level 3) Total As of September 30, 2023 Assets: Physical commodity contracts $ — $ 7,054 $ — $ 7,054 Financial commodity contracts 25,265 — — 25,265 Money market funds 145 — — 145 Other 2,641 — — 2,641 Total assets at fair value $ 28,051 $ 7,054 $ — $ 35,105 Liabilities: Physical commodity contracts $ — $ 21,115 $ — $ 21,115 Financial commodity contracts 2,997 — — 2,997 Total liabilities at fair value $ 2,997 $ 21,115 $ — $ 24,112 |
INVESTMENTS IN EQUITY INVESTEES
INVESTMENTS IN EQUITY INVESTEES | 9 Months Ended |
Jun. 30, 2024 | |
Investments, All Other Investments [Abstract] | |
INVESTMENTS IN EQUITY INVESTEES | 7. INVESTMENTS IN EQUITY INVESTEES The Company holds a 50% equity method investment in Steckman Ridge, a jointly owned and controlled natural gas storage facility located in Bedford County, Pennsylvania. The Company's investment in Steckman Ridge was $100.8M and $104.1M as of June 30, 2024 and September 30, 2023, respectively, which include loans with a total outstanding principal balance of $70.4M for both periods. On October 1, 2023, the Company entered into an Amended and Restated Loan Agreement with Steckman Ridge, which extends the existing loan agreement and moved from London Interbank Offered Rate to Secured Overnight Financing Rate. The loans accrue interest at a variable rate that resets quarterly and are due October 1, 2027. NJNG and ES have entered into storage and park and loan agreements with Steckman Ridge. See Note 15. Related Party Transactions for more information on these intercompany transactions. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 8. EARNINGS PER SHARE The following table presents the calculation of the Company's basic and diluted earnings per share for: Three Months Ended Nine Months Ended June 30, June 30, (Thousands, except per share amounts) 2024 2023 2024 2023 Net (loss) income, as reported $ (11,574) $ 1,532 $ 198,649 $ 227,700 Basic (loss) earnings per share Weighted average shares of common stock outstanding-basic 98,983 97,168 98,409 96,849 Basic (loss) earnings per common share $(0.12) $0.02 $2.02 $2.35 Diluted (loss) earnings per share Weighted average shares of common stock outstanding-basic 98,983 97,168 98,409 96,849 Incremental shares (1) — 718 804 689 Weighted average shares of common stock outstanding-diluted 98,983 97,886 99,213 97,538 Diluted (loss) earnings per common share (2) $(0.12) $0.02 $2.00 $2.33 (1) Incremental shares consist primarily of unvested stock awards and performance units, which are calculated using the treasury stock method. (2) Since there was a net loss for the three months ended June 30, 2024, incremental shares of 834,131 were not included in the computation of diluted loss per common share, as their effect would have been antidilutive. There were no anti-dilutive shares excluded during the three and nine months ended June 30, 2023 and during the nine months ended June 30, 2024. |
DEBT
DEBT | 9 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | 9. DEBT NJR and NJNG finance working capital requirements and capital expenditures through various short-term debt and long-term financing arrangements, including a commercial paper program and committed unsecured credit facilities. Credit Facilities and Short-term Debt A summary of NJR's credit facility and NJNG's commercial paper program and credit facility are as follows: At end of period (Thousands) As of date Total Loans outstanding Weighted average interest rate Remaining borrowing capacity Expiration dates NJR bank revolving credit facilities (1) June 30, 2024 $ 650,000 $ 254,800 6.54 % $ 385,869 (2) September 2027 September 30, 2023 $ 650,000 $ 217,300 6.53 % $ 426,967 (2) September 2027 NJNG bank revolving credit facilities (3) June 30, 2024 $ 250,000 $ — — % $ 249,269 (4) September 2027 September 30, 2023 $ 250,000 $ 34,800 5.48 % $ 214,469 (4) September 2027 (1) Committed credit facilities, which require commitment fees of 0.10% on the unused amounts. (2) Letters of credit outstanding total $9.3M at June 30, 2024 and $5.7M at September 30, 2023, which reduces the amount available by the same amount. (3) Committed credit facilities, which require commitment fees of 0.075% on the unused amounts. (4) Letters of credit outstanding total $0.7M at both June 30, 2024 and September 30, 2023, which reduces the amount available by the same amount. Amounts available under credit facilities are reduced by bank or commercial paper borrowings, as applicable, and any outstanding letters of credit. Neither NJNG nor the results of its operations are obligated or pledged to support the NJR Credit Facility or term loan. Long-term Debt NJNG In September 2023, NJNG entered into a Note Purchase Agreement for $100M aggregate principal amount of its senior notes consisting of $50M of 5.56% senior notes due September 28, 2033, which closed on September 28, 2023, and $50M of 5.85% senior notes due October 30, 2053, which closed on October 30, 2023. On June 26, 2024, NJNG entered into a Note Purchase Agreement for $200M aggregate principal amount of its senior notes consisting of $125M of 5.82% senior notes due June 26, 2054, which closed on June 26, 2024, and $75M of 5.49% senior notes due September 30, 2034, which is expected to close on September 30, 2024. NJNG received $8.8M and $8.4M during the nine months ended June 30, 2024 and 2023, respectively, in connection with the sale leaseback of its natural gas meters. NJNG records the sale leaseback as a financing obligation for accounting purposes and has the option to purchase the meters back at fair value upon expiration of the lease. Clean Energy Ventures CEV received proceeds of $24.4M and $163.6M during the nine months ended June 30, 2024 and 2023, respectively, in connection with the sale leaseback of commercial solar assets. CEV records the sale leaseback as a financing obligation for accounting purposes and continues to operate the solar assets, including related expenses, retains the revenue generated from RECs and energy sales, and has the option to repurchase the assets sold or renew the lease at the end of the lease term. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | 10. EMPLOYEE BENEFIT PLANS Pension and Other Postemployment Benefit Plans In January 2024, the Company announced changes to its postretirement medical benefits plan that replaces the existing retiree medical coverage for certain eligible employees and their dependents with an employer funded Health Reimbursement Arrangement. The liability associated with postretirement medical benefits was remeasured as of January 1, 2024. The change in post-retirement medical benefits is being amortized into earnings over approximately 8 years, the average remaining service to retirement for all plan participants. 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 Nine Months Ended Three Months Ended Nine Months Ended June 30, June 30, June 30, June 30, (Thousands) 2024 2023 2024 2023 2024 2023 2024 2023 Service cost $ 1,244 $ 1,350 $ 3,732 $ 4,051 $ 254 $ 618 $ 1,151 $ 1,854 Interest cost 4,060 3,794 12,180 11,381 1,809 2,286 6,519 6,859 Expected return on plan assets (5,087) (4,993) (15,260) (14,979) (2,021) (1,680) (5,899) (5,041) Recognized actuarial loss 29 75 88 225 1,256 — 3,007 — Prior service cost (credit) amortization 16 25 47 76 (3,339) — (6,676) — Net periodic benefit cost (credit) $ 262 $ 251 $ 787 $ 754 $ (2,041) $ 1,224 $ (1,898) $ 3,672 The Company does not expect to make additional contributions to fund the pension plans during fiscal 2024 based on current actuarial assumptions; however, funding requirements are uncertain and can depend significantly on changes in actuarial assumptions, returns on plan assets and changes in the demographics of eligible employees and covered dependents. In addition, as in the past, the Company may elect to make contributions in excess of the minimum required amount to the plans. There were no discretionary contributions made during the nine months ended June 30, 2024 and 2023. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 11. INCOME TAXES ASC Topic 740, Income Taxes requires the use of an estimated annual effective tax rate for purposes of determining the income tax provision during interim reporting periods. In calculating its estimated annual effective tax rate, the Company considers forecasted annual pre-tax income and estimated permanent book versus tax differences. Adjustments to the effective tax rate and management's estimates will occur as information and assumptions change. Changes in tax laws or tax rates are recognized in the financial reporting period that includes the enactment date, the date in which the act is signed into law. NJR evaluates its tax positions to determine the appropriate accounting and recognition of potential future obligations associated with uncertain tax positions. A tax benefit claimed, or expected to be claimed, on a tax return may be recognized only if it is more likely than not that the position will be upheld upon examination by the applicable taxing authority. Interest and penalties related to unrecognized tax benefits, if any, are recognized within income tax expense, and accrued interest and penalties are recognized within other noncurrent liabilities on the Unaudited Condensed Consolidated Balance Sheets. Effective Tax Rate The estimated annual effective tax rates were 21.7% and 21.9%, for the nine months ended June 30, 2024 and 2023, respectively. To the extent there are discrete tax items that are not included in the estimated annual effective tax rate, the actual reported effective tax rate may differ from the estimated annual effective tax rate. During the nine months ended June 30, 2024 and 2023, discrete items totaled approximately $(0.8)M and $(16.3)M, respectively. During the nine months ended June 30, 2023, $(15.8)M related to the reversal of a valuation allowance for certain deferred tax assets, while the remaining amount related to excess tax (benefits) associated with the vesting of share-based awards for both fiscal 2024 and 2023. NJR’s effective tax rate was 21.4% and 15.9% during the nine months ended June 30, 2024 and 2023, respectively. Other Tax Items As of June 30, 2024 and September 30, 2023, the Company has tax credit carryforwards of approximately $186.0M and $191.2M, respectively, which each have a life of 20 years. The Company expects to utilize this entire carryforward prior to expiration, which would begin in fiscal 2037. As of June 30, 2024 and September 30, 2023, the Company has state income tax net operating losses of approximately $627.1M and $631.2M, respectively. These state net operating losses have carry-forward periods dictated by the state in which they were incurred and range from seven In March 2024, the State of New Jersey commenced an examination of the Company's Corporate Business Tax return for NJR and certain subsidiaries for the fiscal periods ending September 30, 2019 through September 30, 2022. |
LEASES
LEASES | 9 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
LEASES | 12. LEASES Lessee Accounting The Company determines if an arrangement is a lease at inception based on whether the Company has the right to control the use of an identified asset, the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset. After the criteria are satisfied, the Company accounts for these arrangements as leases in accordance with ASC 842, Leases . Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Most leases in which the Company is the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. The Company uses the implicit rate for agreements in which it is a lessor. The Company has not entered into any material agreements in which it is a lessor. Lease expense and lease income are recognized on a straight-line basis over the lease term for operating leases. The Company’s lease agreements primarily consist of commercial solar land leases, storage and capacity leases, equipment and real property, including land and office facilities, office equipment and the sale leaseback of certain natural gas meters. Certain leases contain escalation provisions for inflation metrics. The storage leases contain a variable payment component that relates to the change in the inflation metrics that are not known past the current payment period. The variable components of these lease payments are excluded from the lease payments that are used to determine the related right-of-use lease asset and liability. The variable portion of these leases are recognized as leasing expenses when they are incurred. The capacity lease payments are fully variable and based on the amount of natural gas stored in the storage caverns. Generally, the Company’s solar land lease terms are between 20 and 50 years and may include multiple options to extend the terms for an additional five two six Leases . The Company has lease agreements with lease and non-lease components and has elected the practical expedient to combine lease and non-lease components for certain classes of leases, such as office buildings, solar land leases and office equipment. Variable payments are not considered material to the Company. The Company’s lease agreements do not contain any material residual value guarantees, material restrictions or material covenants. In July 2021, NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, the effects of which are eliminated in consolidation. The following table presents the Company's lease costs included in the Unaudited Condensed Consolidated Statements of Operations: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) Income Statement Location 2024 2023 2024 2023 Operating lease cost (1) Operation and maintenance $ 2,595 $ 2,276 $ 7,659 $ 7,000 Finance lease cost Amortization of right-of-use assets Depreciation and amortization 540 540 1,620 1,565 Interest on lease liabilities Interest expense, net of capitalized interest 222 283 710 816 Total finance lease cost 762 823 2,330 2,381 Variable lease cost Operation and maintenance 105 158 551 653 Total lease cost $ 3,462 $ 3,257 $ 10,540 $ 10,034 (1) Net of capitalized costs. The following table presents supplemental cash flow information related to leases: Nine Months Ended June 30, (Thousands) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 5,947 $ 5,739 Operating cash flows for finance leases $ 710 $ 816 Financing cash flows for finance leases $ 5,820 $ 5,470 Assets obtained or modified through operating lease liabilities totaled approximately $9.8M during the three months ended June 30, 2024, and totaled approximately $13.9M and $0.4M during the nine months ended June 30, 2024 and 2023, respectively. There were no assets obtained or modified through operating lease liabilities during the three months ended June 30, 2023. Assets obtained or modified through other leases, including those which are finance leases and financing transactions for accounting purposes, totaled $8.4M during the nine months ended June 30, 2023. There were no assets obtained or modified through finance leases during the three and nine months ended June 30, 2024, and the three months ended June 30, 2023. The following table presents the balance and classifications of the Company's right of use assets and lease liabilities included in the Unaudited Condensed Consolidated Balance Sheets: (Thousands) Balance Sheet Location June 30, September 30, Assets Noncurrent Operating lease assets Operating lease assets $ 185,506 $ 175,740 Finance lease assets Utility plant 26,628 28,248 Total lease assets $ 212,134 $ 203,988 Liabilities Current Operating lease liabilities Operating lease liabilities $ 5,125 $ 4,772 Finance lease liabilities Current maturities of long-term debt 8,183 8,477 Noncurrent Operating lease liabilities Operating lease liabilities 159,988 148,023 Finance lease liabilities Long-term debt 17,349 22,875 Total lease liabilities $ 190,645 $ 184,147 For operating lease assets and liabilities, the weighted average remaining lease term was 28.9 years and 29.2 years and the weighted average discount rate used in the valuation over the remaining lease term was 3.8% and 3.5% as of June 30, 2024 and September 30, 2023, respectively. For finance lease assets and liabilities, the weighted average remaining lease term was 3.2 years and 3.3 years and the weighted average discount rate used in the valuation over the remaining lease term was 3.3% and 2.7% as of June 30, 2024 and September 30, 2023, respectively. |
LEASES | 12. LEASES Lessee Accounting The Company determines if an arrangement is a lease at inception based on whether the Company has the right to control the use of an identified asset, the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset. After the criteria are satisfied, the Company accounts for these arrangements as leases in accordance with ASC 842, Leases . Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Most leases in which the Company is the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. The Company uses the implicit rate for agreements in which it is a lessor. The Company has not entered into any material agreements in which it is a lessor. Lease expense and lease income are recognized on a straight-line basis over the lease term for operating leases. The Company’s lease agreements primarily consist of commercial solar land leases, storage and capacity leases, equipment and real property, including land and office facilities, office equipment and the sale leaseback of certain natural gas meters. Certain leases contain escalation provisions for inflation metrics. The storage leases contain a variable payment component that relates to the change in the inflation metrics that are not known past the current payment period. The variable components of these lease payments are excluded from the lease payments that are used to determine the related right-of-use lease asset and liability. The variable portion of these leases are recognized as leasing expenses when they are incurred. The capacity lease payments are fully variable and based on the amount of natural gas stored in the storage caverns. Generally, the Company’s solar land lease terms are between 20 and 50 years and may include multiple options to extend the terms for an additional five two six Leases . The Company has lease agreements with lease and non-lease components and has elected the practical expedient to combine lease and non-lease components for certain classes of leases, such as office buildings, solar land leases and office equipment. Variable payments are not considered material to the Company. The Company’s lease agreements do not contain any material residual value guarantees, material restrictions or material covenants. In July 2021, NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, the effects of which are eliminated in consolidation. The following table presents the Company's lease costs included in the Unaudited Condensed Consolidated Statements of Operations: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) Income Statement Location 2024 2023 2024 2023 Operating lease cost (1) Operation and maintenance $ 2,595 $ 2,276 $ 7,659 $ 7,000 Finance lease cost Amortization of right-of-use assets Depreciation and amortization 540 540 1,620 1,565 Interest on lease liabilities Interest expense, net of capitalized interest 222 283 710 816 Total finance lease cost 762 823 2,330 2,381 Variable lease cost Operation and maintenance 105 158 551 653 Total lease cost $ 3,462 $ 3,257 $ 10,540 $ 10,034 (1) Net of capitalized costs. The following table presents supplemental cash flow information related to leases: Nine Months Ended June 30, (Thousands) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 5,947 $ 5,739 Operating cash flows for finance leases $ 710 $ 816 Financing cash flows for finance leases $ 5,820 $ 5,470 Assets obtained or modified through operating lease liabilities totaled approximately $9.8M during the three months ended June 30, 2024, and totaled approximately $13.9M and $0.4M during the nine months ended June 30, 2024 and 2023, respectively. There were no assets obtained or modified through operating lease liabilities during the three months ended June 30, 2023. Assets obtained or modified through other leases, including those which are finance leases and financing transactions for accounting purposes, totaled $8.4M during the nine months ended June 30, 2023. There were no assets obtained or modified through finance leases during the three and nine months ended June 30, 2024, and the three months ended June 30, 2023. The following table presents the balance and classifications of the Company's right of use assets and lease liabilities included in the Unaudited Condensed Consolidated Balance Sheets: (Thousands) Balance Sheet Location June 30, September 30, Assets Noncurrent Operating lease assets Operating lease assets $ 185,506 $ 175,740 Finance lease assets Utility plant 26,628 28,248 Total lease assets $ 212,134 $ 203,988 Liabilities Current Operating lease liabilities Operating lease liabilities $ 5,125 $ 4,772 Finance lease liabilities Current maturities of long-term debt 8,183 8,477 Noncurrent Operating lease liabilities Operating lease liabilities 159,988 148,023 Finance lease liabilities Long-term debt 17,349 22,875 Total lease liabilities $ 190,645 $ 184,147 For operating lease assets and liabilities, the weighted average remaining lease term was 28.9 years and 29.2 years and the weighted average discount rate used in the valuation over the remaining lease term was 3.8% and 3.5% as of June 30, 2024 and September 30, 2023, respectively. For finance lease assets and liabilities, the weighted average remaining lease term was 3.2 years and 3.3 years and the weighted average discount rate used in the valuation over the remaining lease term was 3.3% and 2.7% as of June 30, 2024 and September 30, 2023, respectively. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 9 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | 13. COMMITMENTS AND CONTINGENT LIABILITIES Cash Commitments NJNG has entered into long-term contracts, expiring at various dates through September 2039, for the supply, transportation and storage of natural gas. These contracts include annual fixed charges of approximately $237.7M at current contract rates and volumes for the remainder of the fiscal year, which are recoverable through BGSS. For the purpose of securing storage and pipeline capacity, ES enters into storage and pipeline capacity contracts, which require the payment of certain demand charges by ES to maintain the ability to access such natural gas storage or pipeline capacity, during a fixed time period, which generally ranges from one Commitments as of June 30, 2024, for natural gas purchases and future demand fees for the next five fiscal year periods are as follows: (Thousands) 2024 2025 2026 2027 2028 Thereafter ES: Natural gas purchases $ 9,998 $ 17,151 $ 1,090 $ — $ — $ — Storage demand fees 4,135 16,119 11,716 5,452 3,500 6,780 Pipeline demand fees 20,428 46,713 38,750 26,403 16,461 30,450 Sub-total ES $ 34,561 $ 79,983 $ 51,556 $ 31,855 $ 19,961 $ 37,230 NJNG: Natural gas purchases $ 7,517 $ — $ — $ — $ — $ — Storage demand fees 11,284 38,199 22,632 11,160 4,877 — Pipeline demand fees 38,840 207,812 148,510 129,238 113,964 967,006 Sub-total NJNG $ 57,641 $ 246,011 $ 171,142 $ 140,398 $ 118,841 $ 967,006 Total $ 92,202 $ 325,994 $ 222,698 $ 172,253 $ 138,802 $ 1,004,236 Certain pipeline demand fees totaling approximately $4.0M per year, for which ES is the responsible party, are being paid for by the counterparty to a capacity release transaction beginning in November 2021, for a period of 10 years. Legal Proceedings Manufactured Gas Plant Remediation NJNG is responsible for the remedial cleanup of certain former MGP sites, dating back to gas operations in the late 1800s and early 1900s, which contain contaminated residues from former gas manufacturing operations. NJNG is currently involved in administrative proceedings with the NJDEP and is participating in various studies and investigations by outside consultants, to determine the nature and extent of any such contaminated residues and to develop appropriate programs of remedial action, where warranted, under NJDEP regulations. NJNG periodically, and at least annually, performs an environmental review of former MGP sites located in Atlantic Highlands, Berkeley, Long Branch, Manchester, Toms River, Freehold and Aberdeen, New Jersey, including a review of potential liability for investigation and remedial action. NJNG estimated at the time of the most recent review that total future expenditures at the former MGP sites for which it is responsible, including potential liabilities for natural resource damages that might be brought by the NJDEP for alleged injury to groundwater or other natural resources concerning these sites, will range from approximately $139.7M to $203.9M. NJNG’s estimate of these liabilities is based upon known facts, existing technology and enacted laws and regulations in place when the review was completed. Where it is probable that costs will be incurred, and the information is sufficient to establish a range of possible liability, NJNG accrues the most likely amount in the range. If no point within the range is more likely than the other, it is NJNG’s policy to accrue the lower end of the range. Accordingly, as of June 30, 2024, NJNG recorded a MGP remediation liability and a corresponding regulatory asset of approximately $153.8M on the Unaudited Condensed Consolidated Balance Sheets based on the most likely amount. The actual costs to be incurred by NJNG are dependent upon several factors, including final determination of remedial action, changing technologies and governmental regulations, the ultimate ability of other responsible parties to pay and insurance recoveries, if any. NJNG recovers its remediation expenditures, including carrying costs, over rolling seven-year periods pursuant to a RAC approved by the BPU. As of June 30, 2024, $74.3M of previously incurred remediation costs, net of recoveries from customers and insurance proceeds, are included in regulatory assets on the Unaudited Condensed Consolidated Balance Sheets. NJNG will continue to seek recovery of MGP-related costs through the RAC. If any future regulatory position indicates that the recovery of such costs is not probable, the related non-recoverable costs would be charged to income in the period of such determination. General The Company is involved, and from time to time in the future may be involved, in a number of pending and threatened judicial, regulatory and arbitration proceedings relating to matters that arise in the ordinary course of business. In view of the inherent difficulty of predicting the outcome of litigation matters, particularly when such matters are in their early stages or where the claimants seek indeterminate damages, the Company cannot state with confidence what the eventual outcome of the pending litigation will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, fines or penalties related to each pending matter will be, if any. In accordance with applicable accounting guidance, the Company establishes accruals for litigation for those matters that present loss contingencies as to which it is both probable that a loss will be incurred and the amount of such loss can be reasonably estimated. The Company also discloses contingent matters for which there is a reasonable possibility of a loss. Based upon currently available information, the Company believes that the results of litigation that are currently pending, taken together, will not have a materially adverse effect on the Company’s financial condition, results of operations or cash flows. The actual results of resolving the pending litigation matters may be substantially higher than the amounts accrued. The foregoing statements about the Company’s litigation are based upon the Company’s judgments, assumptions and estimates and are necessarily subjective and uncertain. The Company has a number of threatened and pending litigation matters at various stages. |
REPORTING SEGMENT AND OTHER OPE
REPORTING SEGMENT AND OTHER OPERATIONS DATA | 9 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
REPORTING SEGMENT AND OTHER OPERATIONS DATA | 14. REPORTING SEGMENT AND OTHER OPERATIONS DATA The Company organizes its businesses based on a combination of factors, including its products and its regulatory environment. As a result, the Company manages its businesses through the following reporting segments and other operations: NJNG consists of regulated energy and off-system, capacity and storage management operations; CEV consists of capital investments in clean energy projects; ES consists of unregulated wholesale and retail energy operations; S&T consists of the Company’s investments in natural gas transportation and storage facilities; the HSO business operations consist of heating, cooling and water appliance sales, installations and services, other investments and general corporate activities. Information related to the Company's various reporting segments and other operations during the three months ended June 30, 2024 and 2023, are as follows: Segments (Thousands) NJNG CEV ES S&T Subtotal HSO Elims Total 2024 Operating revenues External customers $ 157,773 14,648 62,441 (1) 24,475 $ 259,337 16,299 — $ 275,636 Intercompany $ 337 — — — $ 337 57 (394) $ — Depreciation and amortization $ 28,491 6,981 45 (2) 6,239 $ 41,756 308 (1,157) $ 40,907 Interest income (3) $ 571 — 151 2,574 $ 3,296 386 (1,447) $ 2,235 Interest expense, net of capitalized interest $ 14,239 7,027 3,946 5,773 $ 30,985 184 — $ 31,169 Income tax (benefit) provision $ (1,132) (2,008) (1,553) 1,345 $ (3,348) 640 (56) $ (2,764) Equity in earnings of affiliates $ — — — 782 $ 782 — 558 $ 1,340 Net financial (loss) earnings $ (6,139) (6,714) (2,244) 4,140 $ (10,957) 881 1,177 $ (8,899) Capital expenditures $ 110,302 37,013 — 10,917 $ 158,232 252 — $ 158,484 2023 Operating revenues External customers $ 144,971 13,178 69,542 (1) 21,435 $ 249,126 14,949 — $ 264,075 Intercompany $ 337 — 630 766 $ 1,733 6 (1,739) $ — Depreciation and amortization $ 25,825 6,672 51 (2) 6,102 $ 38,650 227 — $ 38,877 Interest income (3) $ 496 — 310 1,841 $ 2,647 753 (1,010) $ 2,390 Interest expense, net of capitalized interest $ 13,226 7,848 2,467 6,430 $ 29,971 148 — $ 30,119 Income tax provision (benefit) $ 196 (18,237) (2,934) 535 $ (20,440) 429 (494) $ (20,505) Equity in earnings of affiliates $ — — — 377 $ 377 — 324 $ 701 Net financial earnings (loss) $ 891 7,267 (1,604) 2,358 $ 8,912 523 235 $ 9,670 Capital expenditures $ 102,555 10,905 — 3,450 $ 116,910 193 — $ 117,103 (1) Includes sales to Canada for the ES segment, which are immaterial. (2) The amortization of acquired wholesale energy contracts is excluded above and is included in natural gas purchases - nonutility on the Unaudited Condensed Consolidated Statements of Operations. (3) Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations. Information related to the Company's various reporting segments and other operations during the nine months ended June 30, 2024 and 2023, are as follows: Segments (Thousands) NJNG CEV ES S&T Subtotal HSO Elims Total 2024 Operating revenues External customers $ 913,729 59,268 311,846 (1) 70,031 $ 1,354,874 45,885 — $ 1,400,759 Intercompany $ 1,012 — (4,875) 1,348 $ (2,515) 210 2,305 $ — Depreciation and amortization $ 82,872 20,834 158 (2) 18,619 $ 122,483 808 (2,022) $ 121,269 Interest income (3) $ 1,666 — 422 7,462 $ 9,550 1,074 (4,327) $ 6,297 Interest expense, net of capitalized interest $ 43,840 21,656 10,585 17,574 $ 93,655 608 — $ 94,263 Income tax provision (benefit) $ 34,000 (471) 11,247 2,996 $ 47,772 1,108 5,239 $ 54,119 Equity in earnings of affiliates $ — — — 1,860 $ 1,860 — 1,878 $ 3,738 Net financial earnings (loss) $ 152,400 (1,808) 43,231 9,761 $ 203,584 665 (2,128) $ 202,121 Capital expenditures $ 287,727 74,096 — 32,225 $ 394,048 1,738 — $ 395,786 2023 Operating revenues External customers $ 902,880 40,376 579,494 (1) 66,452 $ 1,589,202 42,467 — $ 1,631,669 Intercompany $ 1,012 — 9,190 3,474 $ 13,676 202 (13,878) $ — Depreciation and amortization $ 76,034 18,713 170 (2) 18,064 $ 112,981 669 — $ 113,650 Interest income (3) $ 1,285 — 959 4,926 $ 7,170 2,141 (2,726) $ 6,585 Interest expense, net of capitalized interest $ 40,814 21,059 8,274 19,265 $ 89,412 459 — $ 89,871 Income tax provision (benefit) $ 38,503 (23,079) 23,046 3,074 $ 41,544 1,134 381 $ 43,059 Equity in earnings of affiliates $ — — — 2,263 $ 2,263 — 515 $ 2,778 Net financial earnings (loss) $ 156,252 (5,694) 72,054 11,051 $ 233,663 1,307 (2,706) $ 232,264 Capital expenditures $ 277,226 68,604 — 33,291 $ 379,121 1,093 — $ 380,214 (1) Includes sales to Canada for the ES segment, which are immaterial. (2) The amortization of acquired wholesale energy contracts is excluded above and is included in natural gas purchases - nonutility on the Unaudited Condensed Consolidated Statements of Operations. (3) Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations. The Company's assets for the various reporting segments and business operations are detailed below: Segments Intercompany (Thousands) NJNG CEV ES S&T Subtotal HSO Assets (1) Total June 30, 2024 $ 4,612,429 1,166,799 100,522 1,019,064 $ 6,898,814 181,479 (296,172) $ 6,784,121 September 30, 2023 $ 4,414,829 1,128,577 123,775 1,011,959 $ 6,679,140 171,275 (312,919) $ 6,537,496 (1) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. The Chief Executive Officer, who uses NFE as a measure of profit or loss in measuring the results of the Company's reporting segments and other business operations, is the chief operating decision maker of the Company. A reconciliation of consolidated NFE to consolidated net income is as follows: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2024 2023 2024 2023 Net financial (loss) earnings $ (8,899) $ 9,670 $ 202,121 $ 232,264 Less: Unrealized loss (gain) on derivative instruments and related transactions 3,803 (12,970) 23,860 (30,502) Tax effect (903) 3,083 (5,670) 7,250 Effects of economic hedging related to natural gas inventory (385) 24,116 (19,458) 36,885 Tax effect 91 (5,731) 4,624 (8,766) Gain on equity method investment — (100) — (300) Tax effect — 24 — 74 NFE tax adjustment 69 (284) 116 (77) Net (loss) income $ (11,574) $ 1,532 $ 198,649 $ 227,700 The Company uses derivative instruments as economic hedges of purchases and sales of physical natural gas inventory. For GAAP purposes, these derivatives are recorded at fair value and related changes in fair value are included in reported earnings. Revenues and cost of natural gas related to physical natural gas flow are recognized when the natural gas is delivered to customers. Consequently, there is a mismatch in the timing of earnings recognition between the economic hedges and physical natural gas flows. Timing differences occur in two ways: • unrealized gains and losses on derivatives are recognized in reported earnings in periods prior to physical natural gas inventory flows; and • unrealized gains and losses of prior periods are reclassified as realized gains and losses when derivatives are settled in the same period as physical natural gas inventory movements occur. NFE is a measure of the earnings based on eliminating these timing differences, to effectively match the earnings effects of the economic hedges with the physical sale of natural gas, SRECs and foreign currency contracts. Consequently, to reconcile between net income and NFE, current period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item. Realized derivative gains and losses are also included in current period net income. However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the derivatives with realized margins on physical natural gas flows. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE. The Company also calculates a quarterly tax adjustment based on an estimated annual effective tax rate for NFE purposes. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 15. RELATED PARTY TRANSACTIONS Effective April 2020, NJNG entered into a 5-year agreement for 3 Bcf of firm storage capacity with Steckman Ridge, which expires on March 31, 2025. Under the terms of the agreement, NJNG incurs demand fees, at market rates, of approximately $9.3M annually, a portion of which is eliminated in consolidation. These fees are recoverable through NJNG’s BGSS mechanism and are included as a component of regulatory assets. ES may periodically enter into storage or park and loan agreements with its affiliated FERC-jurisdictional natural gas storage facility, Steckman Ridge. As of June 30, 2024, ES entered into transactions with Steckman Ridge for varying terms, all of which expire by March 31, 2027. Demand fees, net of eliminations, associated with Steckman Ridge were as follows: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2024 2023 2024 2023 NJNG $ 1,541 $ 1,703 $ 4,781 $ 4,973 ES 188 167 626 494 Total $ 1,729 $ 1,870 $ 5,407 $ 5,467 The following table summarizes demand fees payable to Steckman Ridge as of: (Thousands) June 30, September 30, NJNG $ 775 $ 775 ES 100 84 Total $ 875 $ 859 NJNG and ES enter into various AMAs, the effects of which are eliminated in consolidation. Under the terms of these AMAs, NJNG releases certain transportation and storage contracts to ES. NJNG and ES had one AMA, which expired on March 31, 2024, and was not renewed. NJNG entered into two transportation agreements with Adelphia, each for committed capacity of 130,000 Dekatherms per day. The first is for 5 years in Zone South with an expiration date of August 8, 2027, and the second is for 15 years in Zone North, which began on November 1, 2023, with an expiration date of October 31, 2038. ES had a 5-year agreement for 3 Bcf of firm storage capacity with Leaf River, the effects of which were eliminated in consolidation. The agreement expired on March 31, 2024, and was not renewed. NJNG and CEV entered into a 15-year sublease and PPA related to an onsite solar array and the related energy output at the Company’s headquarters in Wall, New Jersey, with an expiration date of March 1, 2036, the effects of which are immaterial to the consolidated financial statements. NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, with an expiration date of July 1, 2037, the effects of which are eliminated in consolidation. NJNG and CEV entered into a 20-year sublease and PPA related to an onsite solar array and the related energy output at the Company’s liquefied natural gas plant in Howell, New Jersey, with an expiration date of June 1, 2042, the effects of which are immaterial to the consolidated financial statements. The intercompany profits for certain transactions between NJNG and ES and NJNG and Adelphia are not eliminated in accordance with ASC 980, Regulated Operations. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||||
Net income (loss) | $ (11,574) | $ 120,812 | $ 89,411 | $ 1,532 | $ 110,247 | $ 115,921 | $ 198,649 | $ 227,700 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Consolidation | The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared by the Company in accordance with the rules and regulations of the U.S. Securities and Exchange Commission and GAAP. The September 30, 2023 Balance Sheet data is derived from the audited financial statements of the Company. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's 2023 Annual Report on Form 10-K. The Unaudited Condensed Consolidated Financial Statements include the accounts of NJR and its subsidiaries. In the opinion of management, the accompanying Unaudited Condensed Consolidated Financial Statements reflect all adjustments necessary for a fair presentation of the results of the interim periods presented. These adjustments are of a normal and recurring nature. Because of the seasonal nature of the Company's utility and wholesale energy services operations, in addition to other factors, the financial results for the interim periods presented are not indicative of the results that are to be expected for the fiscal year ending September 30, 2024. Intercompany transactions and accounts have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingencies during the reporting period. On a quarterly basis or more frequently whenever events or changes in circumstances indicate a need, the Company evaluates its estimates, including those related to the calculation of the fair value of derivative instruments, debt, equity method investments, lease liabilities, unbilled revenues, allowance for doubtful accounts, provisions for depreciation and amortization, long-lived assets, regulatory assets and liabilities, income taxes, pensions and other postemployment benefits, contingencies related to environmental matters and litigation. Asset retirement obligations are evaluated periodically as required. The Company’s estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. The Company has legal, regulatory and environmental proceedings during the normal course of business that can result in loss contingencies. When evaluating the potential for a loss, the Company will establish a reserve if a loss is probable and can be reasonably estimated, in which case it is the Company’s policy to accrue the full amount of such estimates. Where the information is sufficient only to establish a range of probable liability, and no point within the range is more likely than any other, it is the Company’s policy to accrue the lower end of the range. In the normal course of business, estimated amounts are subsequently adjusted to actual results that may differ from estimates. |
Revenues | Revenues Revenues from the sale of natural gas to NJNG customers are recognized in the period that natural gas is delivered and consumed by customers, including an estimate for unbilled revenue. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the month. At the end of each month, the amount of natural gas delivered to each customer after the last meter reading through the end of the respective accounting period is estimated, and recognizes unbilled revenues related to these amounts. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects, unaccounted-for natural gas and the most current tariff rates. CEV recognizes revenue when SRECs are transferred to counterparties. SRECs are physically delivered through the transfer of certificates as per contractual settlement schedules. The Clean Energy Act of 2018 established guidelines for the closure of the SREC registration program to new applicants in New Jersey. The SREC program officially closed to new qualified solar projects on April 30, 2020. In December 2019, the BPU established the TREC as the successor to the SREC program. TRECs provide a fixed compensation base multiplied by an assigned project factor in order to determine their value. The project factor is determined by the type and location of the project, as defined. In July 2021, the BPU established a new successor solar incentive program. The Administratively Determined Incentive Program provides administratively set incentives for net metered residential projects and net metered non-residential projects of 5 MW or less. RECs generated through the production of electricity under this program are known as SREC IIs. TRECs and SREC IIs generated are required to be purchased monthly by a REC program administrator as appointed by the BPU. Revenue for TRECs and SREC IIs are recognized upon generation and are transferred monthly based upon metered solar electricity activity. Revenues for ES are recognized when the natural gas is physically delivered to the customer. In addition, changes in the fair value of derivatives that economically hedge the forecasted sales of the natural gas are recognized in operating revenues as they occur. ES also recognizes changes in the fair value of SREC derivative contracts as a component of operating revenues. During December 2020, ES entered into a series of AMAs with an investment grade public utility to release pipeline capacity associated with certain natural gas transportation contracts, which commenced in November 2021. The AMAs include a series of temporary and permanent releases and revenue under these agreements is recognized as the performance obligations are satisfied. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed upon term. For permanent releases of pipeline capacity, which represent a transfer of contractual rights for such capacity, revenue is recognized upon the transfer of the underlying contractual rights. ES recognized operating revenue of $9.5M during both the three months ended June 30, 2024 and 2023, and $28.5M and $39.0M during the nine months ended June 30, 2024 and 2023, respectively, on the Unaudited Condensed Consolidated Statements of Operations. Amounts received in excess of revenue totaling $97.7M and $58.7M are included in deferred revenue on the Unaudited Condensed Consolidated Balance Sheets as of June 30, 2024 and September 30, 2023, respectively. S&T generates revenues from firm storage contracts and transportation contracts, related usage fees and hub services for the use of storage space, injections and withdrawals from their natural gas storage facility and the delivery of natural gas to customers. Demand fees are recognized as revenue over the term of the related agreement while usage fees and hub services revenues are recognized as services are performed. Revenues from all other activities are recorded in the period during which products or services are delivered and accepted by customers, or over the related contractual term. See Note 3. Revenue for further information. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on deposit and temporary investments with maturities of three months or less, and excludes restricted cash related to escrow balances for utility plant projects at NJNG, which are recorded in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company segregates financial assets, primarily trade receivables and unbilled revenues due in one year or less, into portfolio segments based on shared risk characteristics, such as geographical location and regulatory environment, for evaluation of expected credit losses. Historical and current information, such as average write-offs, are applied to each portfolio segment to estimate the allowance for losses on uncollectible receivables. Additionally, the allowance for losses on uncollectible receivables is adjusted for reasonable and supportable forecasts of future economic conditions, which can include changing weather, commodity prices, regulations, and macroeconomic factors, such as unemployment rates among others. |
Loans Receivable | Loans Receivable two |
Software Costs | Software Costs The Company capitalizes certain costs, such as software design and configuration, coding, testing and installation, that are incurred to purchase or create and implement computer software for internal use. Capitalized costs include external costs of materials and services utilized in developing or obtaining internal-use software and payroll and payroll-related costs for employees who are directly associated with and devote time to the internal-use software project. Maintenance costs are expensed as incurred. Upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Amortization is recorded on the straight-line basis over the estimated useful lives. |
Sale Leasebacks | Sale Leasebacks NJNG utilizes sale leaseback arrangements as a financing mechanism to fund certain of its capital expenditures related to natural gas meters, whereby the physical asset is sold concurrent with an agreement to lease the asset back. These agreements include options to renew the lease or repurchase the asset at the end of the term. As NJNG retains control of the natural gas meters, these arrangements do not qualify as a sale. NJNG uses the financing method to account for the transactions. Proceeds from sale leaseback transactions are accounted for as financing arrangements and are included in long-term debt on the Unaudited Condensed Consolidated Balance Sheets. In addition, for certain of its commercial solar energy projects, the Company enters into lease agreements that provide for the sale of commercial solar energy assets to third parties and the concurrent leaseback of the assets. For sale leaseback transactions where the Company has concluded that the arrangement does not qualify as a sale as the Company retains control of the underlying assets, the Company uses the financing method to account for the transaction. Under the financing method, the Company recognizes the proceeds received from the buyer-lessor that constitute a payment to acquire the solar energy asset as a financing arrangement, which is recorded as a component of debt on the Unaudited Condensed Consolidated Balance Sheets. The Company continues to operate the solar assets and is responsible for related expenses and entitled to retain the revenue generated from RECs and energy sales. ITCs and other tax attributes associated with these solar projects transfer to the buyer; however, the payments are structured so that CEV is compensated for the transfer of the related tax attributes. Accordingly, CEV recognizes the equivalent value of the tax attributes in other income on the Unaudited Condensed Consolidated Statements of Operations over the respective five-year ITC recapture periods, starting with the second year of the lease. See Note 9. Debt for more details regarding sale leaseback transactions recorded as financing arrangements. |
Reclassification | Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation. Deferred income taxes and postemployment employee benefit assets previously classified within other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets have been reclassified to their own categories. Intangible assets, net previously classified in its own category on the Unaudited Condensed Consolidated Balance Sheets has been reclassified into other noncurrent assets. Other noncurrent assets and other noncurrent liabilities previously classified in their own categories on the Unaudited Condensed Consolidated Statements of Cash Flow have been combined into one category. |
Recently Adopted Updates to the Accounting Standards Codification | Recently Adopted Updates to the Accounting Standards Codification Business Combinations In October 2021, the FASB issued ASU No. 2021-08 , an amendment to ASC 805, Business Combinations , which requires that an acquirer recognize, and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers . The guidance was effective for the Company beginning October 1, 2023, and was applied on a prospective basis to new acquisitions following the date of adoption. As the Company has not executed a transaction that would qualify as a business combination, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption. Derivatives and Hedging In March 2022, the FASB issued ASU No. 2022-01 , an amendment to ASC 815, Derivatives and Hedging , which addresses fair value hedge accounting of interest rate risk for portfolios of financial assets. This update further clarifies guidance previously released in ASU 2017-12 which established the "last-of-layer" method and this update renames that method as the “portfolio layer” method. The guidance was effective for the Company beginning October 1, 2023. As the Company does not currently apply hedge accounting to any of its risk management activities, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption. Financial Instruments In March 2022, the FASB issued ASU No. 2022-02 , an amendment to ASC 326, Financial Instruments-Credit Losses , which eliminates the accounting guidance for creditors in troubled debt restructuring. It also aligns conflicting disclosure requirement guidance in ASC 326 by requiring disclosure of current-period gross write-offs by year of origination. The amendment also adds new disclosures for creditors with loan refinancing and restructuring for borrowers experiencing financial difficulty. The guidance was effective for the Company beginning October 1, 2023. Since the Company has not experienced a troubled debt restructuring, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption. Other Recent Updates to the Accounting Standards Codification Fair Value Measurement In June 2022, the FASB issued ASU No. 2022-03 , an amendment to ASC 820, Fair Value Measurement . The amendment clarifies the fair value principles when measuring the fair value of an equity security subject to a contractual sale restriction. The guidance is effective for the Company on October 1, 2024, and will be applied on a prospective basis. At this time, the Company does not have equity securities subject to contractual sale restrictions, and therefore this amendment would only impact the Company upon adoption if, in the future, it entered into such transactions. Leases In March 2023, the FASB issued ASU No. 2023-01 , an amendment to ASC 842, Leases, which applies to arrangements between related parties under common control. This update requires that all entities with common control arrangements classify and account for these leases on the same basis as an arrangement with an unrelated party. If the lessee in these types of arrangements continues to control the use of the underlying asset through a lease, the leasehold improvements are to be amortized over the improvements’ useful life to the common control group, regardless of the lease term. The guidance is effective for the Company on October 1, 2024, and the Company will elect to apply it on a prospective basis. At this time, the Company does not have leases that are impacted by this amendment, and therefore it would only impact the Company upon adoption if, in the future, it entered into applicable transactions. Business Combinations In August 2023, the FASB issued ASU No. 2023-05 , an amendment to ASC 805, Business Combinations , which addresses how a joint venture should recognize contributions received upon its formation. Joint ventures must account for initial assets and liabilities received at fair value on the date the joint venture is formed. The guidance is effective for the Company for joint ventures formed beginning January 1, 2025, and the Company can elect to apply it either prospectively or retrospectively back to a joint venture’s formation date provided adequate information is available. Early adoption is permitted. This amendment would only impact the Company upon adoption if, in the future, it entered into an applicable transaction. Segment Reporting In November 2023, the FASB issued ASU No. 2023-07 , an amendment to ASC 280, Segment Reporting , which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The update requires entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker and included within segment profit and loss, and it enhances interim disclosure requirements to conform with annual requirements. This update becomes effective for the Company on October 1, 2024 for the first annual period and on October 1, 2025 for the interim periods. It will be applied retrospectively to all periods presented, with early adoption permitted. The Company is currently evaluating the amendment to understand the impacts on its financial position, results of operations, cash flows and disclosures upon adoption. Income Taxes In December 2023, the FASB issued ASU No. 2023-09 , an amendment to ASC 740, Income Taxes |
Derivative Instruments | The Company is subject primarily to commodity price risk due to fluctuations in the market price of natural gas, SRECs and electricity. To manage this risk, the Company enters into a variety of derivative instruments including, but not limited to, futures contracts, physical forward contracts, financial options and swaps to economically hedge the commodity price risk associated with its existing and anticipated commitments to purchase and sell natural gas, SRECs and electricity. In addition, the Company is exposed to foreign currency and interest rate risk and may utilize foreign currency derivatives to hedge Canadian dollar denominated natural gas purchases and/or sales and interest rate derivatives to reduce exposure to fluctuations in interest rates. All of these types of contracts are accounted for as derivatives, unless the Company elects NPNS, which is done on a contract-by-contract election. Accordingly, all of the financial and certain of the Company's physical derivative instruments are recorded at fair value on the Unaudited Condensed Consolidated Balance Sheets. For a more detailed discussion of the Company’s fair value measurement policies and level disclosures associated with the Company’s derivative instruments, see Note 6. Fair Value . Energy Services ES chooses not to designate its financial commodity and physical forward commodity derivatives as accounting hedges or to elect NPNS. The changes in the fair value of these derivatives are recorded as a component of natural gas purchases or operating revenues, as appropriate for ES, on the Unaudited Condensed Consolidated Statements of Operations as unrealized gains or losses. For ES at settlement, realized gains and losses on all financial derivative instruments are recognized as a component of natural gas purchases and realized gains and losses on all physical derivatives follow the presentation of the related unrealized gains and losses as a component of either natural gas purchases or operating revenues. ES also enters into natural gas transactions in Canada and, consequently, is exposed to fluctuations in the value of Canadian currency relative to the U.S. dollar. ES may utilize foreign currency derivatives to lock in the exchange rates associated with natural gas transactions denominated in Canadian currency. The derivatives may include currency forwards, futures, or swaps and are accounted for as derivatives. These derivatives are typically used to hedge demand fee payments on pipeline capacity, storage and natural gas purchase agreements. As a result of ES entering into transactions to borrow natural gas, commonly referred to as “park and loans,” an embedded derivative is recognized relating to differences between the fair value of the amount borrowed and the fair value of the amount that will ultimately be repaid, based on changes in the forward price for natural gas prices at the borrowed location over the contract term. This embedded derivative is accounted for as a forward sale in the month in which the repayment of the borrowed natural gas is expected to occur, and is considered a derivative transaction that is recorded at fair value on the Unaudited Condensed Consolidated Balance Sheets, with changes in value recognized in current period earnings. Expected production of SRECs is hedged through the use of forward and futures contracts. All contracts require the Company to physically deliver SRECs through the transfer of certificates as per contractual settlement schedules. ES recognizes changes in the fair value of these derivatives as a component of operating revenues. Upon settlement of the contract, the related revenue is recognized when the SREC is transferred to the counterparty. Natural Gas Distribution Changes in fair value of NJNG's financial commodity derivatives are recorded as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets. The Company elects NPNS accounting treatment on all physical commodity contracts that NJNG entered into on or before December 31, 2015, and accounts for these contracts on an accrual basis. Accordingly, physical natural gas purchases are recognized in regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets when the contract settles and the natural gas is delivered. The average cost of natural gas is charged to expense in the current period earnings based on the BGSS factor times the therm sales. NJNG no longer elects NPNS accounting treatment on a portfolio basis. However, since NPNS is a contract-by-contract election, where it makes sense to do so, NJNG can and may elect to treat certain contracts as normal. Because NJNG recovers these amounts through future BGSS rates as increases or decreases to the cost of natural gas in NJNG’s tariff for natural gas service, the changes in fair value of these contracts are deferred as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets. Clean Energy Ventures The Company elects NPNS accounting treatment on PPA contracts executed by CEV that meet the definition of a derivative and accounts for the contract on an accrual basis. Accordingly, electricity sales are recognized in revenues throughout the term of the PPA as electricity is delivered. NPNS is a contract-by-contract election and where it makes sense to do so, the Company can and may elect to treat certain contracts as normal. Offsetting of Derivatives The Company transacts under master netting arrangements or equivalent agreements that allow it to offset derivative assets and liabilities with the same counterparty. However, the Company’s policy is to present its derivative assets and liabilities on a gross basis at the contract level unit of account on the Unaudited Condensed Consolidated Balance Sheets. |
Fair Value Hierarchy | Fair Value Hierarchy The Company applies fair value measurement guidance to its financial assets and liabilities, as appropriate, which include financial derivatives and physical commodity contracts qualifying as derivatives, investments in equity securities and other financial assets and liabilities. In addition, authoritative accounting literature prescribes the use of a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on the source of the data used to develop the price inputs. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to inputs that are based on unobservable market data and includes the following: Fair Value Hierarchy Description of Fair Value Level Fair Value Technique Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets The Company’s Level 1 assets and liabilities include exchange-traded natural gas futures and options contracts, listed equities and money market funds. Exchange-traded futures and options contracts include all energy contracts traded on the NYMEX, CME and ICE that the Company refers to internally as basis swaps, fixed swaps, futures and financial options that are cleared through an FCM. Level 2 Other significant observable inputs, such as interest rates or price data, including both commodity and basis pricing that is observed either directly or indirectly from publications or pricing services The Company’s Level 2 assets and liabilities include over-the-counter physical forward commodity contracts and swap contracts, SREC forward sales or derivatives that are initially valued using observable quotes and are subsequently adjusted to include time value, credit risk or estimated transport pricing components for which no basis price is available. Level 2 financial derivatives consist of transactions with non-FCM counterparties (basis swaps, fixed swaps and/or options). Inputs are verifiable and do not require significant management judgment. For some physical commodity contracts, the Company utilizes transportation tariff rates that are publicly available and that it considers to be observable inputs that are equivalent to market data received from an independent source. There are no significant judgments or adjustments applied to the transportation tariff inputs and no market perspective is required. Even if the transportation tariff input were considered to be a “model,” it would still be considered to be a Level 2 input as the data is: • widely accepted and public; • non-proprietary and sourced from an independent third party; and • observable and published. These additional adjustments are generally not considered to be significant to the ultimate recognized values. Level 3 Inputs derived from a significant amount of unobservable market data These include the Company’s best estimate of fair value and are derived primarily through the use of internal valuation methodologies. |
Lessee Accounting | Lessee Accounting The Company determines if an arrangement is a lease at inception based on whether the Company has the right to control the use of an identified asset, the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset. After the criteria are satisfied, the Company accounts for these arrangements as leases in accordance with ASC 842, Leases . Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Most leases in which the Company is the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. The Company uses the implicit rate for agreements in which it is a lessor. The Company has not entered into any material agreements in which it is a lessor. Lease expense and lease income are recognized on a straight-line basis over the lease term for operating leases. The Company’s lease agreements primarily consist of commercial solar land leases, storage and capacity leases, equipment and real property, including land and office facilities, office equipment and the sale leaseback of certain natural gas meters. Certain leases contain escalation provisions for inflation metrics. The storage leases contain a variable payment component that relates to the change in the inflation metrics that are not known past the current payment period. The variable components of these lease payments are excluded from the lease payments that are used to determine the related right-of-use lease asset and liability. The variable portion of these leases are recognized as leasing expenses when they are incurred. The capacity lease payments are fully variable and based on the amount of natural gas stored in the storage caverns. Generally, the Company’s solar land lease terms are between 20 and 50 years and may include multiple options to extend the terms for an additional five two six Leases . |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Restricted Cash | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Unaudited Condensed Consolidated Balance Sheets to the total amounts in the Unaudited Condensed Consolidated Statements of Cash Flows as follows: (Thousands) June 30, September 30, June 30, Balance Sheet Cash and cash equivalents $ 22,399 $ 954 $ 511 Restricted cash in other noncurrent assets $ 735 $ 563 $ 509 Statements of Cash Flow Cash, cash equivalents and restricted cash $ 23,134 $ 1,517 $ 1,020 |
Schedule of Natural Gas in Storage | The following table summarizes natural gas in storage, at average cost by segment as of: June 30, 2024 September 30, 2023 ($ in thousands) Natural Gas in Storage Bcf Natural Gas in Storage Bcf NJNG $ 109,111 20.9 $ 175,025 29.1 ES 23,133 14.0 24,476 14.6 Total $ 132,244 34.9 $ 199,501 43.7 |
Schedule of Software Costs Included in the Consolidated Financial Statements | The following tables present the software costs included in the Unaudited Condensed Consolidated Financial Statements: (Thousands) June 30, September 30, Balance Sheets Utility plant, at cost $ 88,128 $ 51,282 Construction work in progress $ 62,527 $ 55,012 Nonutility plant and equipment, at cost $ 344 $ 344 Accumulated depreciation and amortization, utility plant $ (11,232) $ (7,480) Accumulated depreciation and amortization, nonutility plant and equipment $ (45) $ (36) Software costs $ 10,254 $ 8,375 Three Months Ended Nine Months Ended June 30, June 30, Statements of Operations 2024 2023 2024 2023 Operation and maintenance $ 4,048 $ 3,163 $ 9,975 $ 10,801 Depreciation and amortization $ 1,507 $ 1,320 $ 3,761 $ 3,148 |
Schedule of Accumulated Other Comprehensive (Loss) Income | The following table presents the changes in the components of accumulated other comprehensive (loss) income, net of related tax effects during the three months ended June 30, 2024 and 2023: (Thousands) Cash Flow Hedges Postemployment Benefit Obligation Total Balance as of March 31, 2024 $ (6,743) $ 7,065 $ 322 Other comprehensive income (loss), net of tax Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $(79), $112, $33, respectively 264 (369) (1) (105) Balance as of June 30, 2024 $ (6,479) $ 6,696 $ 217 Balance as of March 31, 2023 $ (7,795) $ 3,578 $ (4,217) Other comprehensive income, net of tax Amounts reclassified from accumulated other comprehensive income, net of tax of $(79), $(12), $(91) 263 41 (1) 304 Balance as of June 30, 2023 $ (7,532) $ 3,619 $ (3,913) (1) Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations. The following table presents the changes in the components of accumulated other comprehensive (loss) income, net of related tax effects during the nine months ended June 30, 2024 and 2023: (Thousands) Cash Flow Hedges Postemployment Benefit Obligation Total Balance as of September 30, 2023 $ (7,269) $ (2,690) $ (9,959) Other comprehensive income (loss), net of tax Other comprehensive income, before reclassifications, net of tax of $0, $(3,020) and $(3,020), respectively — 9,992 9,992 Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $(238), $184 and $(54), respectively 790 (606) (1) 184 Net current-period other comprehensive income, net of tax of $(238), $(2,836), $(3,074), respectively 790 9,386 10,176 Balance as of June 30, 2024 $ (6,479) $ 6,696 $ 217 Balance as of September 30, 2022 $ (8,322) $ 3,496 $ (4,826) Other comprehensive income, net of tax Amounts reclassified from accumulated other comprehensive income, net of tax of $(238), $(37) and $(275), respectively 790 123 (1) 913 Balance as of June 30, 2023 $ (7,532) $ 3,619 $ (3,913) (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. |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Performance Obligation, Recognition Period | Below is a listing of performance obligations that arise from contracts with customers, along with details on the satisfaction of each performance obligation, the significant payment terms and the nature of the goods and services being transferred, by reporting segment and other business operations: Revenue Recognized Over Time: Segment/ Performance Obligation Description NJNG Natural gas utility sales NJNG's performance obligation is to provide natural gas to residential, commercial and industrial customers as demanded, based on regulated tariff rates, which are established by the BPU. Revenues from the sale of natural gas are recognized in the period that natural gas is delivered and consumed by customers, including an estimate for quantities consumed but not billed during the period. Payment is due each month for the previous month's deliveries. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the billing period. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects and the most current tariff rates. NJNG is entitled to be compensated for performance completed until service is terminated. Customers may elect to purchase the natural gas commodity from NJNG or may contract separately to purchase natural gas directly from third-party suppliers. As NJNG is acting as an agent on behalf of the third-party supplier, revenue is recorded for the delivery of natural gas to the customer. CEV Commercial solar electricity CEV operates wholly-owned solar projects that recognize revenue as electricity is generated and transferred to the customer. The performance obligation is to provide electricity to the customer in accordance with contract terms or the interconnection agreement and is satisfied upon transfer of electricity generated. Revenue is recognized as invoiced and the payment is due each month for the previous month's services. Revenue Recognized Over Time (continued): Segment/ Performance Obligation Description CEV Residential solar electricity CEV provides access to residential rooftop and ground-mount solar equipment to customers who then pay the Company a monthly fee. The performance obligation is to provide electricity to the customer based on generation from the underlying residential solar asset and is satisfied upon transfer of electricity generated. Revenue is derived from the contract terms and is recognized as invoiced, with the payment due each month for the previous month's services. CEV Renewable energy certificates Certain CEV projects generate TRECs and SREC IIs under the established Administratively Determined Incentive Program. A TREC or SREC II is created for every MWh of electricity produced by a solar generator. The performance obligation of CEV is to generate electricity. TRECs and SREC IIs under the Administratively Determined Incentive Program are purchased monthly by a REC Administrator. Revenue is recognized upon generation. ES Natural gas services The performance obligation of ES is to provide the customer transportation, storage and asset management services on an as-needed basis. ES generates revenue through management fees, demand charges, reservation fees and transportation charges centered around the buying and selling of the natural gas commodity, representing one series of distinct performance obligations. Revenue is recognized based upon the underlying natural gas quantities physically delivered and the customer obtaining control. ES invoices customers in line with the terms of the contract and based on the services provided. Payment is due upon receipt of the invoice. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed upon term. S&T Natural gas services The performance obligation of S&T is to provide the customer with storage and transportation services. S&T generates revenues from firm storage contracts and transportation contracts, injection and withdrawal at the storage facility and the delivery of natural gas to customers. Revenue is recognized over time as customers receive the benefits of its service as it is performed on their behalf using an output method based on actual deliveries. Demand fees are recognized as revenue over the term of the related agreement. HSO Service contracts Home Services enters into service contracts with homeowners to provide maintenance and replacement services of applicable heating, cooling or ventilation equipment. NJR Retail enters into warranty contracts with homeowners for various appliances. All services provided relate to a distinct performance obligation which is to provide services for the specific equipment over the term of the contract. Revenue is recognized on a straight-line basis over the term of the contract and payment is due upon receipt of the invoice. Revenue Recognized at a Point in Time: ES Natural gas services For a permanent release of pipeline capacity, the performance obligation of ES is the release of the pipeline capacity associated with certain natural gas transportation contracts and the transfer of the underlying contractual rights to the counterparty. Revenue is recognized upon the transfer of the underlying contractual rights. S&T Natural gas services The performance obligation of S&T is to provide the customer with storage and transportation services. S&T generates revenues from usage fees and hub services for the use of storage space, injection and withdrawal from the storage facility. Hub services include park and loan transactions and wheeling. Usage fees and hub services revenues are recognized as services are performed. HSO Installations Home Services installs appliances, including but not limited to, furnaces, air conditioning units, boilers and generators for customers. The distinct performance obligation is the installation of the contracted appliance, which is satisfied at the point in time the item is installed. The transaction price for each installation differs accordingly. Revenue is recognized at a point in time upon completion of the installation, which is when the customer is billed. |
Schedule of Disaggregation of Revenue | Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the three months ended June 30, 2024 and 2023, are as follows: (Thousands) NJNG CEV ES S&T HSO Total 2024 Natural gas utility sales (1) $ 138,804 — — — — $ 138,804 Natural gas services — — 16,204 24,475 — 40,679 Service contracts — — — — 9,062 9,062 Installations and maintenance — — — — 7,294 7,294 Renewable energy certificates — 4,872 — — — 4,872 Electricity sales — 9,575 — — — 9,575 Eliminations (2) (337) — — — (57) (394) Revenues from contracts with customers 138,467 14,447 16,204 24,475 16,299 209,892 Alternative revenue programs (3) (1,033) — — — — (1,033) Derivative instruments 20,339 201 (4) 46,237 — — 66,777 Revenues out of scope 19,306 201 46,237 — — 65,744 Total operating revenues $ 157,773 14,648 62,441 24,475 16,299 $ 275,636 2023 Natural gas utility sales (1) $ 134,253 — — — — $ 134,253 Natural gas services — — 16,021 22,201 — 38,222 Service contracts — — — — 8,842 8,842 Installations and maintenance — — — — 6,113 6,113 Renewable energy certificates — 4,720 — — — 4,720 Electricity sales — 8,274 — — — 8,274 Eliminations (2) (337) — — (766) (6) (1,109) Revenues from contracts with customers 133,916 12,994 16,021 21,435 14,949 199,315 Alternative revenue programs (3) 5,211 — — — — 5,211 Derivative instruments 5,844 184 (4) 54,151 — — 60,179 Eliminations (2) — — (630) — — (630) Revenues out of scope 11,055 184 53,521 — — 64,760 Total operating revenues $ 144,971 13,178 69,542 21,435 14,949 $ 264,075 (1) Includes building rent related to the Wall headquarters, which is eliminated in consolidation. (2) Consists of transactions between subsidiaries that are eliminated in consolidation. (3) Includes CIP revenue. (4) Includes SREC revenue. Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the nine months ended June 30, 2024 and 2023, are as follows: (Thousands) NJNG CEV ES S&T HSO Total 2024 Natural gas utility sales (1) $ 767,698 — — — — $ 767,698 Natural gas services — — 48,617 71,379 — 119,996 Service contracts — — — — 27,073 27,073 Installations and maintenance — — — — 19,022 19,022 Renewable energy certificates — 10,194 — — — 10,194 Electricity sales — 22,842 — — — 22,842 Eliminations (2) (1,012) — — (1,348) (210) (2,570) Revenues from contracts with customers 766,686 33,036 48,617 70,031 45,885 964,255 Alternative revenue programs (3) 3,812 — — — — 3,812 Derivative instruments 143,231 26,232 (4) 258,354 — — 427,817 Eliminations (2) — — 4,875 — — 4,875 Revenues out of scope 147,043 26,232 263,229 — — 436,504 Total operating revenues $ 913,729 59,268 311,846 70,031 45,885 $ 1,400,759 2023 Natural gas utility sales (1) $ 749,618 — — — — $ 749,618 Natural gas services — — 60,705 69,926 — 130,631 Service contracts — — — — 26,242 26,242 Installations and maintenance — — — — 16,427 16,427 Renewable energy certificates — 8,007 — — — 8,007 Electricity sales — 22,062 — — — 22,062 Eliminations (2) (1,012) — — (3,474) (202) (4,688) Revenues from contracts with customers 748,606 30,069 60,705 66,452 42,467 948,299 Alternative revenue programs (3) 29,016 — — — — 29,016 Derivative instruments 125,258 10,307 (4) 527,979 — — 663,544 Eliminations (2) — — (9,190) — — (9,190) Revenues out of scope 154,274 10,307 518,789 — — 683,370 Total operating revenues $ 902,880 40,376 579,494 66,452 42,467 $ 1,631,669 (1) Includes building rent related to the Wall headquarters, which is eliminated in consolidation. (2) Consists of transactions between subsidiaries that are eliminated in consolidation. (3) Includes CIP revenue. (4) Includes SREC revenue. Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the three months ended June 30, 2024 and 2023, are as follows: (Thousands) NJNG CEV ES S&T HSO Total 2024 Residential $ 97,112 3,647 — — 16,272 $ 117,031 Commercial and industrial 21,279 10,800 16,204 24,475 27 72,785 Firm transportation 17,481 — — — — 17,481 Interruptible, off-tariff and other 2,595 — — — — 2,595 Revenues out of scope 19,306 201 46,237 — — 65,744 Total operating revenues $ 157,773 14,648 62,441 24,475 16,299 $ 275,636 2023 Residential $ 94,340 3,585 — — 14,922 $ 112,847 Commercial and industrial 20,220 9,409 16,021 21,435 27 67,112 Firm transportation 18,088 — — — — 18,088 Interruptible, off-tariff and other 1,268 — — — — 1,268 Revenues out of scope 11,055 184 53,521 — — 64,760 Total operating revenues $ 144,971 13,178 69,542 21,435 14,949 $ 264,075 Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the nine months ended June 30, 2024 and 2023, are as follows: (Thousands) NJNG CEV ES S&T HSO Total 2024 Residential $ 580,559 10,262 — — 45,759 $ 636,580 Commercial and industrial 107,400 22,774 48,617 70,031 126 248,948 Firm transportation 72,596 — — — — 72,596 Interruptible, off-tariff and other 6,131 — — — — 6,131 Revenues out of scope 147,043 26,232 263,229 — — 436,504 Total operating revenues $ 913,729 59,268 311,846 70,031 45,885 $ 1,400,759 2023 Residential $ 558,901 10,082 — — 42,191 $ 611,174 Commercial and industrial 113,120 19,987 60,705 66,452 276 260,540 Firm transportation 73,655 — — — — 73,655 Interruptible, off-tariff and other 2,930 — — — — 2,930 Revenues out of scope 154,274 10,307 518,789 — — 683,370 Total operating revenues $ 902,880 40,376 579,494 66,452 42,467 $ 1,631,669 |
Schedule of Expected Timing of Performance | The timing of revenue recognition, customer billings and cash collections resulting in accounts receivables, billed and unbilled, and customers’ credit balances and deposits on the Unaudited Condensed Consolidated Balance Sheets during the nine months ended June 30, 2024 and 2023, are as follows: Customer Accounts Receivable Customers' Credit (Thousands) Billed Unbilled Balances and Deposits Balance as of September 30, 2023 $ 97,540 $ 19,100 $ 44,910 Increase (decrease) 30,724 1,464 (16,029) Balance as of June 30, 2024 $ 128,264 $ 20,564 $ 28,881 Balance as of September 30, 2022 $ 222,297 $ 13,769 $ 33,246 (Decrease) increase (111,834) 2,723 (2,979) Balance as of June 30, 2023 $ 110,463 $ 16,492 $ 30,267 |
Schedule of Performance Obligation, in Excess of Billings | The following table provides information about receivables, which are included within accounts receivable, billed and unbilled, and customers’ credit balances and deposits, respectively, on the Unaudited Condensed Consolidated Balance Sheets as of June 30, 2024 and September 30, 2023: (Thousands) NJNG CEV ES S&T HSO Total June 30, 2024 Customer accounts receivable Billed $ 84,923 8,819 23,509 8,360 2,653 $ 128,264 Unbilled 12,778 7,786 — — — 20,564 Customers' credit balances and deposits (28,860) — — (21) — (28,881) Total $ 68,841 16,605 23,509 8,339 2,653 $ 119,947 September 30, 2023 Customer accounts receivable Billed $ 55,234 9,962 23,716 6,577 2,051 $ 97,540 Unbilled 10,784 8,316 — — — 19,100 Customers' credit balances and deposits (44,898) — — (12) — (44,910) Total $ 21,120 18,278 23,716 6,565 2,051 $ 71,730 |
REGULATION (Tables)
REGULATION (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets | Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for NJNG are comprised of the following: (Thousands) June 30, September 30, Regulatory assets-current New Jersey Clean Energy Program $ 20,265 $ 15,804 Conservation Incentive Program 54,169 50,356 Derivatives at fair value, net 13,347 6,017 Other current regulatory assets 1,791 1,410 Total current regulatory assets $ 89,572 $ 73,587 Regulatory assets-noncurrent Environmental remediation costs: Expended, net of recoveries $ 74,316 $ 66,298 Liability for future expenditures 153,818 169,390 Deferred income taxes 43,107 41,667 SAVEGREEN 93,713 83,589 Postemployment and other benefit costs 9,493 55,274 Cost of removal 122,859 112,362 Other noncurrent regulatory assets 54,846 51,019 Total noncurrent regulatory assets $ 552,152 $ 579,599 Regulatory liability-current Overrecovered natural gas costs $ 31,244 $ 30,637 Total current regulatory liabilities $ 31,244 $ 30,637 Regulatory liabilities-noncurrent Tax Act impact (1) $ 176,583 $ 180,347 Other noncurrent regulatory liabilities 137 111 Total noncurrent regulatory liabilities $ 176,720 $ 180,458 (1) Reflects the re-measurement and subsequent amortization of NJNG's net deferred tax liabilities as a result of the change in federal tax rates enacted in the Tax Act. The Tax Act is an Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, previously known as The Tax Cuts and Jobs Act of 2017. Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for Adelphia are comprised of the following: (Thousands) June 30, September 30, Total noncurrent regulatory assets $ 5,128 $ 5,231 Total current regulatory liabilities $ 329 $ 1,650 |
Schedule of Regulatory Liabilities | Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for NJNG are comprised of the following: (Thousands) June 30, September 30, Regulatory assets-current New Jersey Clean Energy Program $ 20,265 $ 15,804 Conservation Incentive Program 54,169 50,356 Derivatives at fair value, net 13,347 6,017 Other current regulatory assets 1,791 1,410 Total current regulatory assets $ 89,572 $ 73,587 Regulatory assets-noncurrent Environmental remediation costs: Expended, net of recoveries $ 74,316 $ 66,298 Liability for future expenditures 153,818 169,390 Deferred income taxes 43,107 41,667 SAVEGREEN 93,713 83,589 Postemployment and other benefit costs 9,493 55,274 Cost of removal 122,859 112,362 Other noncurrent regulatory assets 54,846 51,019 Total noncurrent regulatory assets $ 552,152 $ 579,599 Regulatory liability-current Overrecovered natural gas costs $ 31,244 $ 30,637 Total current regulatory liabilities $ 31,244 $ 30,637 Regulatory liabilities-noncurrent Tax Act impact (1) $ 176,583 $ 180,347 Other noncurrent regulatory liabilities 137 111 Total noncurrent regulatory liabilities $ 176,720 $ 180,458 (1) Reflects the re-measurement and subsequent amortization of NJNG's net deferred tax liabilities as a result of the change in federal tax rates enacted in the Tax Act. The Tax Act is an Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, previously known as The Tax Cuts and Jobs Act of 2017. Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for Adelphia are comprised of the following: (Thousands) June 30, September 30, Total noncurrent regulatory assets $ 5,128 $ 5,231 Total current regulatory liabilities $ 329 $ 1,650 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Assets and Liabilities | The following table presents the fair value of the Company's derivative assets and liabilities recognized on the Unaudited Condensed Consolidated Balance Sheets as of: Derivatives at Fair Value June 30, 2024 September 30, 2023 (Thousands) Balance Sheet Location Assets Liabilities Assets Liabilities Derivatives not designated as hedging instruments: NJNG: Physical commodity contracts Derivatives - current $ 81 $ 1 $ 43 $ 488 Financial commodity contracts Derivatives - current — 60 6,110 20 ES: Physical commodity contracts Derivatives - current 1,636 6,197 6,209 12,757 Derivatives - noncurrent 816 11,422 802 7,870 Financial commodity contracts Derivatives - current 3,054 1,374 18,393 2,880 Derivatives - noncurrent 163 540 762 97 Total fair value of derivatives $ 5,750 $ 19,594 $ 32,319 $ 24,112 |
Offsetting Assets | The following table summarizes the reported gross amounts, the amounts that the Company has the right to offset but elects not to, financial collateral and the net amounts the Company could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to. Asset Derivatives Liability Derivatives (Thousands) Fair Value (1) Amounts Offset (2) Collateral Received/Pledged (3) Net Value (4) Fair Value (1) Amounts Offset (2) Collateral Received/Pledged (3) Net Value (4) As of June 30, 2024 ES Contracts Physical commodity $ 2,452 (491) — $ 1,961 $ 17,619 (491) (10,569) $ 6,559 Financial commodity 3,217 (1,914) — 1,303 1,914 (1,914) — — Total ES $ 5,669 (2,405) — $ 3,264 $ 19,533 (2,405) (10,569) $ 6,559 NJNG Contracts Physical commodity $ 81 — — $ 81 $ 1 — — $ 1 Financial commodity — — — — 60 — (60) — Total NJNG $ 81 — — $ 81 $ 61 — (60) $ 1 As of September 30, 2023 ES Contracts Physical commodity $ 7,011 (1,236) — $ 5,775 $ 20,627 (1,236) (9,728) $ 9,663 Financial commodity 19,155 (2,977) (16,178) — 2,977 (2,977) — — Total ES $ 26,166 (4,213) (16,178) $ 5,775 $ 23,604 (4,213) (9,728) $ 9,663 NJNG Contracts Physical commodity $ 43 (3) — $ 40 $ 488 (3) — $ 485 Financial commodity 6,110 (20) — 6,090 20 (20) — — Total NJNG $ 6,153 (23) — $ 6,130 $ 508 (23) — $ 485 (1) Derivative assets and liabilities are presented on a gross basis on the condensed consolidated balance sheets as the Company does not elect balance sheet offsetting under ASC 210-20. (2) Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting. (3) Financial collateral includes cash balances at FCMs as well as cash received from or pledged to other counterparties. (4) Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20. |
Offsetting Liabilities | The following table summarizes the reported gross amounts, the amounts that the Company has the right to offset but elects not to, financial collateral and the net amounts the Company could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to. Asset Derivatives Liability Derivatives (Thousands) Fair Value (1) Amounts Offset (2) Collateral Received/Pledged (3) Net Value (4) Fair Value (1) Amounts Offset (2) Collateral Received/Pledged (3) Net Value (4) As of June 30, 2024 ES Contracts Physical commodity $ 2,452 (491) — $ 1,961 $ 17,619 (491) (10,569) $ 6,559 Financial commodity 3,217 (1,914) — 1,303 1,914 (1,914) — — Total ES $ 5,669 (2,405) — $ 3,264 $ 19,533 (2,405) (10,569) $ 6,559 NJNG Contracts Physical commodity $ 81 — — $ 81 $ 1 — — $ 1 Financial commodity — — — — 60 — (60) — Total NJNG $ 81 — — $ 81 $ 61 — (60) $ 1 As of September 30, 2023 ES Contracts Physical commodity $ 7,011 (1,236) — $ 5,775 $ 20,627 (1,236) (9,728) $ 9,663 Financial commodity 19,155 (2,977) (16,178) — 2,977 (2,977) — — Total ES $ 26,166 (4,213) (16,178) $ 5,775 $ 23,604 (4,213) (9,728) $ 9,663 NJNG Contracts Physical commodity $ 43 (3) — $ 40 $ 488 (3) — $ 485 Financial commodity 6,110 (20) — 6,090 20 (20) — — Total NJNG $ 6,153 (23) — $ 6,130 $ 508 (23) — $ 485 (1) Derivative assets and liabilities are presented on a gross basis on the condensed consolidated balance sheets as the Company does not elect balance sheet offsetting under ASC 210-20. (2) Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting. (3) Financial collateral includes cash balances at FCMs as well as cash received from or pledged to other counterparties. (4) Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20. |
Effect of Derivative Instruments on Consolidated Statements of Operations | The following table presents the effect of derivative instruments recognized on the Unaudited Condensed Consolidated Statements of Operations for the periods set forth below: (Thousands) Location of gain (loss) recognized in income on derivatives Amount of gain (loss) recognized Three Months Ended Nine Months Ended June 30, June 30, Derivatives not designated as hedging instruments: 2024 2023 2024 2023 ES: Physical commodity contracts Operating revenues $ 3,560 $ 12,648 $ 13,939 $ 29,894 Physical commodity contracts Natural gas purchases 210 (5,914) (1,800) (6,708) Financial commodity contracts Natural gas purchases (5,415) 4,858 10,208 76,332 Total unrealized and realized (loss) gain $ (1,645) $ 11,592 $ 22,347 $ 99,518 |
Effect of Derivative Instruments Designated as Cash Flow Hedges on OCI | The following table reflects the gains (losses) associated with NJNG's derivative instruments for the periods set forth below: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2024 2023 2024 2023 NJNG: Physical commodity contracts $ 188 $ 315 $ (4,802) $ (27,919) Financial commodity contracts 7,438 18,000 8,628 (51,957) Total unrealized and realized gain (loss) $ 7,626 $ 18,315 $ 3,826 $ (79,876) |
Schedule of Outstanding Long (Short) Derivatives | NJNG and ES had the following outstanding long (short) derivatives as of: Natural Gas Distribution Energy Services Volumes (Bcf) Futures Physical Commodity Futures Physical Commodity June 30, 2024 13.9 4.0 (6.9) 2.2 September 30, 2023 32.1 12.1 (6.9) 0.2 |
Schedule of Broker Margin Accounts by Company | The balances by reporting segment are as follows: (Thousands) Balance Sheet Location June 30, September 30, NJNG Restricted broker margin accounts-current assets $ 1,883 $ 5,915 ES Restricted broker margin accounts-current assets $ 17,011 $ 14,881 Restricted broker margin accounts-current liabilities $ — $ 8,029 |
Summary of Gross Credit Exposures | The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of June 30, 2024. The amounts presented below have not been reduced by any collateral received or netting and exclude accounts receivable for NJNG retail natural gas sales and services and CEV residential solar installations. (Thousands) Gross Credit Exposure Investment grade $ 108,200 Noninvestment grade 9,074 Internally rated investment grade 17,858 Internally rated noninvestment grade 17,627 Total $ 152,759 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The estimated fair value of long-term debt, including current maturities, excluding natural gas meter finance arrangements, debt issuance costs and solar asset financing obligations, is as follows: (Thousands) June 30, September 30, Carrying value (1) (2) $ 2,692,845 $ 2,587,845 Fair market value $ 2,306,291 $ 2,106,536 (1) Excludes NJNG's debt issuance costs of $10.6M and $9.8M as of June 30, 2024 and September 30, 2023, respectively. (2) Excludes NJR's debt issuance costs of $3.2M and $3.7M as of June 30, 2024 and September 30, 2023, respectively. |
Schedule of Fair Value Hierarchy | The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to inputs that are based on unobservable market data and includes the following: Fair Value Hierarchy Description of Fair Value Level Fair Value Technique Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets The Company’s Level 1 assets and liabilities include exchange-traded natural gas futures and options contracts, listed equities and money market funds. Exchange-traded futures and options contracts include all energy contracts traded on the NYMEX, CME and ICE that the Company refers to internally as basis swaps, fixed swaps, futures and financial options that are cleared through an FCM. Level 2 Other significant observable inputs, such as interest rates or price data, including both commodity and basis pricing that is observed either directly or indirectly from publications or pricing services The Company’s Level 2 assets and liabilities include over-the-counter physical forward commodity contracts and swap contracts, SREC forward sales or derivatives that are initially valued using observable quotes and are subsequently adjusted to include time value, credit risk or estimated transport pricing components for which no basis price is available. Level 2 financial derivatives consist of transactions with non-FCM counterparties (basis swaps, fixed swaps and/or options). Inputs are verifiable and do not require significant management judgment. For some physical commodity contracts, the Company utilizes transportation tariff rates that are publicly available and that it considers to be observable inputs that are equivalent to market data received from an independent source. There are no significant judgments or adjustments applied to the transportation tariff inputs and no market perspective is required. Even if the transportation tariff input were considered to be a “model,” it would still be considered to be a Level 2 input as the data is: • widely accepted and public; • non-proprietary and sourced from an independent third party; and • observable and published. These additional adjustments are generally not considered to be significant to the ultimate recognized values. Level 3 Inputs derived from a significant amount of unobservable market data These include the Company’s best estimate of fair value and are derived primarily through the use of internal valuation methodologies. |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Thousands) (Level 1) (Level 2) (Level 3) Total As of June 30, 2024 Assets: Physical commodity contracts $ — $ 2,533 $ — $ 2,533 Financial commodity contracts 3,217 — — 3,217 Money market funds 21,631 — — 21,631 Other 2,603 — — 2,603 Total assets at fair value $ 27,451 $ 2,533 $ — $ 29,984 Liabilities: Physical commodity contracts $ — $ 17,620 $ — $ 17,620 Financial commodity contracts 1,974 — — 1,974 Total liabilities at fair value $ 1,974 $ 17,620 $ — $ 19,594 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Thousands) (Level 1) (Level 2) (Level 3) Total As of September 30, 2023 Assets: Physical commodity contracts $ — $ 7,054 $ — $ 7,054 Financial commodity contracts 25,265 — — 25,265 Money market funds 145 — — 145 Other 2,641 — — 2,641 Total assets at fair value $ 28,051 $ 7,054 $ — $ 35,105 Liabilities: Physical commodity contracts $ — $ 21,115 $ — $ 21,115 Financial commodity contracts 2,997 — — 2,997 Total liabilities at fair value $ 2,997 $ 21,115 $ — $ 24,112 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | The following table presents the calculation of the Company's basic and diluted earnings per share for: Three Months Ended Nine Months Ended June 30, June 30, (Thousands, except per share amounts) 2024 2023 2024 2023 Net (loss) income, as reported $ (11,574) $ 1,532 $ 198,649 $ 227,700 Basic (loss) earnings per share Weighted average shares of common stock outstanding-basic 98,983 97,168 98,409 96,849 Basic (loss) earnings per common share $(0.12) $0.02 $2.02 $2.35 Diluted (loss) earnings per share Weighted average shares of common stock outstanding-basic 98,983 97,168 98,409 96,849 Incremental shares (1) — 718 804 689 Weighted average shares of common stock outstanding-diluted 98,983 97,886 99,213 97,538 Diluted (loss) earnings per common share (2) $(0.12) $0.02 $2.00 $2.33 (1) Incremental shares consist primarily of unvested stock awards and performance units, which are calculated using the treasury stock method. (2) Since there was a net loss for the three months ended June 30, 2024, incremental shares of 834,131 were not included in the computation of diluted loss per common share, as their effect would have been antidilutive. There were no anti-dilutive shares excluded during the three and nine months ended June 30, 2023 and during the nine months ended June 30, 2024. |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | A summary of NJR's credit facility and NJNG's commercial paper program and credit facility are as follows: At end of period (Thousands) As of date Total Loans outstanding Weighted average interest rate Remaining borrowing capacity Expiration dates NJR bank revolving credit facilities (1) June 30, 2024 $ 650,000 $ 254,800 6.54 % $ 385,869 (2) September 2027 September 30, 2023 $ 650,000 $ 217,300 6.53 % $ 426,967 (2) September 2027 NJNG bank revolving credit facilities (3) June 30, 2024 $ 250,000 $ — — % $ 249,269 (4) September 2027 September 30, 2023 $ 250,000 $ 34,800 5.48 % $ 214,469 (4) September 2027 (1) Committed credit facilities, which require commitment fees of 0.10% on the unused amounts. (2) Letters of credit outstanding total $9.3M at June 30, 2024 and $5.7M at September 30, 2023, which reduces the amount available by the same amount. (3) Committed credit facilities, which require commitment fees of 0.075% on the unused amounts. (4) Letters of credit outstanding total $0.7M at both June 30, 2024 and September 30, 2023, which reduces the amount available by the same amount. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Cost | The components of the net periodic cost for pension benefits, including the Company's Pension Equalization Plan, and OPEB costs (principally health care and life insurance) for employees and covered dependents were as follows: Pension OPEB Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended June 30, June 30, June 30, June 30, (Thousands) 2024 2023 2024 2023 2024 2023 2024 2023 Service cost $ 1,244 $ 1,350 $ 3,732 $ 4,051 $ 254 $ 618 $ 1,151 $ 1,854 Interest cost 4,060 3,794 12,180 11,381 1,809 2,286 6,519 6,859 Expected return on plan assets (5,087) (4,993) (15,260) (14,979) (2,021) (1,680) (5,899) (5,041) Recognized actuarial loss 29 75 88 225 1,256 — 3,007 — Prior service cost (credit) amortization 16 25 47 76 (3,339) — (6,676) — Net periodic benefit cost (credit) $ 262 $ 251 $ 787 $ 754 $ (2,041) $ 1,224 $ (1,898) $ 3,672 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Lease, Cost | The following table presents the Company's lease costs included in the Unaudited Condensed Consolidated Statements of Operations: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) Income Statement Location 2024 2023 2024 2023 Operating lease cost (1) Operation and maintenance $ 2,595 $ 2,276 $ 7,659 $ 7,000 Finance lease cost Amortization of right-of-use assets Depreciation and amortization 540 540 1,620 1,565 Interest on lease liabilities Interest expense, net of capitalized interest 222 283 710 816 Total finance lease cost 762 823 2,330 2,381 Variable lease cost Operation and maintenance 105 158 551 653 Total lease cost $ 3,462 $ 3,257 $ 10,540 $ 10,034 (1) Net of capitalized costs. The following table presents supplemental cash flow information related to leases: Nine Months Ended June 30, (Thousands) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 5,947 $ 5,739 Operating cash flows for finance leases $ 710 $ 816 Financing cash flows for finance leases $ 5,820 $ 5,470 |
Schedule of Assets and Liabilities, Lessee | The following table presents the balance and classifications of the Company's right of use assets and lease liabilities included in the Unaudited Condensed Consolidated Balance Sheets: (Thousands) Balance Sheet Location June 30, September 30, Assets Noncurrent Operating lease assets Operating lease assets $ 185,506 $ 175,740 Finance lease assets Utility plant 26,628 28,248 Total lease assets $ 212,134 $ 203,988 Liabilities Current Operating lease liabilities Operating lease liabilities $ 5,125 $ 4,772 Finance lease liabilities Current maturities of long-term debt 8,183 8,477 Noncurrent Operating lease liabilities Operating lease liabilities 159,988 148,023 Finance lease liabilities Long-term debt 17,349 22,875 Total lease liabilities $ 190,645 $ 184,147 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Long-term Purchase Commitment | Commitments as of June 30, 2024, for natural gas purchases and future demand fees for the next five fiscal year periods are as follows: (Thousands) 2024 2025 2026 2027 2028 Thereafter ES: Natural gas purchases $ 9,998 $ 17,151 $ 1,090 $ — $ — $ — Storage demand fees 4,135 16,119 11,716 5,452 3,500 6,780 Pipeline demand fees 20,428 46,713 38,750 26,403 16,461 30,450 Sub-total ES $ 34,561 $ 79,983 $ 51,556 $ 31,855 $ 19,961 $ 37,230 NJNG: Natural gas purchases $ 7,517 $ — $ — $ — $ — $ — Storage demand fees 11,284 38,199 22,632 11,160 4,877 — Pipeline demand fees 38,840 207,812 148,510 129,238 113,964 967,006 Sub-total NJNG $ 57,641 $ 246,011 $ 171,142 $ 140,398 $ 118,841 $ 967,006 Total $ 92,202 $ 325,994 $ 222,698 $ 172,253 $ 138,802 $ 1,004,236 |
REPORTING SEGMENT AND OTHER O_2
REPORTING SEGMENT AND OTHER OPERATIONS DATA (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information related to the Company's various reporting segments and other operations during the three months ended June 30, 2024 and 2023, are as follows: Segments (Thousands) NJNG CEV ES S&T Subtotal HSO Elims Total 2024 Operating revenues External customers $ 157,773 14,648 62,441 (1) 24,475 $ 259,337 16,299 — $ 275,636 Intercompany $ 337 — — — $ 337 57 (394) $ — Depreciation and amortization $ 28,491 6,981 45 (2) 6,239 $ 41,756 308 (1,157) $ 40,907 Interest income (3) $ 571 — 151 2,574 $ 3,296 386 (1,447) $ 2,235 Interest expense, net of capitalized interest $ 14,239 7,027 3,946 5,773 $ 30,985 184 — $ 31,169 Income tax (benefit) provision $ (1,132) (2,008) (1,553) 1,345 $ (3,348) 640 (56) $ (2,764) Equity in earnings of affiliates $ — — — 782 $ 782 — 558 $ 1,340 Net financial (loss) earnings $ (6,139) (6,714) (2,244) 4,140 $ (10,957) 881 1,177 $ (8,899) Capital expenditures $ 110,302 37,013 — 10,917 $ 158,232 252 — $ 158,484 2023 Operating revenues External customers $ 144,971 13,178 69,542 (1) 21,435 $ 249,126 14,949 — $ 264,075 Intercompany $ 337 — 630 766 $ 1,733 6 (1,739) $ — Depreciation and amortization $ 25,825 6,672 51 (2) 6,102 $ 38,650 227 — $ 38,877 Interest income (3) $ 496 — 310 1,841 $ 2,647 753 (1,010) $ 2,390 Interest expense, net of capitalized interest $ 13,226 7,848 2,467 6,430 $ 29,971 148 — $ 30,119 Income tax provision (benefit) $ 196 (18,237) (2,934) 535 $ (20,440) 429 (494) $ (20,505) Equity in earnings of affiliates $ — — — 377 $ 377 — 324 $ 701 Net financial earnings (loss) $ 891 7,267 (1,604) 2,358 $ 8,912 523 235 $ 9,670 Capital expenditures $ 102,555 10,905 — 3,450 $ 116,910 193 — $ 117,103 (1) Includes sales to Canada for the ES segment, which are immaterial. (2) The amortization of acquired wholesale energy contracts is excluded above and is included in natural gas purchases - nonutility on the Unaudited Condensed Consolidated Statements of Operations. (3) Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations. Information related to the Company's various reporting segments and other operations during the nine months ended June 30, 2024 and 2023, are as follows: Segments (Thousands) NJNG CEV ES S&T Subtotal HSO Elims Total 2024 Operating revenues External customers $ 913,729 59,268 311,846 (1) 70,031 $ 1,354,874 45,885 — $ 1,400,759 Intercompany $ 1,012 — (4,875) 1,348 $ (2,515) 210 2,305 $ — Depreciation and amortization $ 82,872 20,834 158 (2) 18,619 $ 122,483 808 (2,022) $ 121,269 Interest income (3) $ 1,666 — 422 7,462 $ 9,550 1,074 (4,327) $ 6,297 Interest expense, net of capitalized interest $ 43,840 21,656 10,585 17,574 $ 93,655 608 — $ 94,263 Income tax provision (benefit) $ 34,000 (471) 11,247 2,996 $ 47,772 1,108 5,239 $ 54,119 Equity in earnings of affiliates $ — — — 1,860 $ 1,860 — 1,878 $ 3,738 Net financial earnings (loss) $ 152,400 (1,808) 43,231 9,761 $ 203,584 665 (2,128) $ 202,121 Capital expenditures $ 287,727 74,096 — 32,225 $ 394,048 1,738 — $ 395,786 2023 Operating revenues External customers $ 902,880 40,376 579,494 (1) 66,452 $ 1,589,202 42,467 — $ 1,631,669 Intercompany $ 1,012 — 9,190 3,474 $ 13,676 202 (13,878) $ — Depreciation and amortization $ 76,034 18,713 170 (2) 18,064 $ 112,981 669 — $ 113,650 Interest income (3) $ 1,285 — 959 4,926 $ 7,170 2,141 (2,726) $ 6,585 Interest expense, net of capitalized interest $ 40,814 21,059 8,274 19,265 $ 89,412 459 — $ 89,871 Income tax provision (benefit) $ 38,503 (23,079) 23,046 3,074 $ 41,544 1,134 381 $ 43,059 Equity in earnings of affiliates $ — — — 2,263 $ 2,263 — 515 $ 2,778 Net financial earnings (loss) $ 156,252 (5,694) 72,054 11,051 $ 233,663 1,307 (2,706) $ 232,264 Capital expenditures $ 277,226 68,604 — 33,291 $ 379,121 1,093 — $ 380,214 (1) Includes sales to Canada for the ES segment, which are immaterial. (2) The amortization of acquired wholesale energy contracts is excluded above and is included in natural gas purchases - nonutility on the Unaudited Condensed Consolidated Statements of Operations. (3) Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations. |
Schedule of Assets for Business Segments and Business Operations | The Company's assets for the various reporting segments and business operations are detailed below: Segments Intercompany (Thousands) NJNG CEV ES S&T Subtotal HSO Assets (1) Total June 30, 2024 $ 4,612,429 1,166,799 100,522 1,019,064 $ 6,898,814 181,479 (296,172) $ 6,784,121 September 30, 2023 $ 4,414,829 1,128,577 123,775 1,011,959 $ 6,679,140 171,275 (312,919) $ 6,537,496 (1) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
Schedule of Reconciliation of Consolidated NFE to Consolidated Net Income | A reconciliation of consolidated NFE to consolidated net income is as follows: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2024 2023 2024 2023 Net financial (loss) earnings $ (8,899) $ 9,670 $ 202,121 $ 232,264 Less: Unrealized loss (gain) on derivative instruments and related transactions 3,803 (12,970) 23,860 (30,502) Tax effect (903) 3,083 (5,670) 7,250 Effects of economic hedging related to natural gas inventory (385) 24,116 (19,458) 36,885 Tax effect 91 (5,731) 4,624 (8,766) Gain on equity method investment — (100) — (300) Tax effect — 24 — 74 NFE tax adjustment 69 (284) 116 (77) Net (loss) income $ (11,574) $ 1,532 $ 198,649 $ 227,700 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Schedule of Demand Fees and Demand Fees Payable | Demand fees, net of eliminations, associated with Steckman Ridge were as follows: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2024 2023 2024 2023 NJNG $ 1,541 $ 1,703 $ 4,781 $ 4,973 ES 188 167 626 494 Total $ 1,729 $ 1,870 $ 5,407 $ 5,467 The following table summarizes demand fees payable to Steckman Ridge as of: (Thousands) June 30, September 30, NJNG $ 775 $ 775 ES 100 84 Total $ 875 $ 859 |
NATURE OF THE BUSINESS (Details
NATURE OF THE BUSINESS (Details) | 9 Months Ended |
Jun. 30, 2024 subsidiary customer | |
Steckman Ridge | |
Nature of Business [Line Items] | |
Ownership percentage | 50% |
NJNG | |
Nature of Business [Line Items] | |
Total retail customers | customer | 582,100 |
NJR Retail Holdings Corporation | |
Nature of Business [Line Items] | |
Number of principal subsidiaries | subsidiary | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ADDITIONAL INFORMATION (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2021 Megawatt | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Number of megawatts | Megawatt | 5 | |||||
Operating revenues | $ 275,636 | $ 264,075 | $ 1,400,759 | $ 1,631,669 | ||
Loans receivable in other noncurrent assets | 50,900 | 50,900 | $ 39,000 | |||
Financial Asset, Not Past Due | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Loans receivable in other current assets | 17,700 | $ 17,700 | 15,100 | |||
Minimum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Loans receivable, term | 2 years | |||||
Maximum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Loans receivable, term | 10 years | |||||
ES | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Operating revenues | 9,500 | $ 9,500 | $ 28,500 | $ 39,000 | ||
Deferred revenue | $ 97,700 | $ 97,700 | $ 58,700 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 22,399 | $ 954 | $ 511 | |
Restricted cash in other noncurrent assets | 735 | 563 | 509 | |
Cash, cash equivalents and restricted cash | $ 23,134 | $ 1,517 | $ 1,020 | $ 1,452 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - NATURAL GAS IN STORAGE (Details) $ in Thousands | Jun. 30, 2024 USD ($) Bcf | Sep. 30, 2023 USD ($) Bcf |
Inventory [Line Items] | ||
Natural Gas in Storage, value | $ | $ 132,244 | $ 199,501 |
Natural Gas in Storage, Bcf | Bcf | 34,900,000 | 43,700,000 |
NJNG | ||
Inventory [Line Items] | ||
Natural Gas in Storage, value | $ | $ 109,111 | $ 175,025 |
Natural Gas in Storage, Bcf | Bcf | 20,900,000 | 29,100,000 |
ES | ||
Inventory [Line Items] | ||
Natural Gas in Storage, value | $ | $ 23,133 | $ 24,476 |
Natural Gas in Storage, Bcf | Bcf | 14,000,000 | 14,600,000 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SOFTWARE COSTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | |
Oil and Gas, Full Cost Method, Capitalized Cost Excluded from Amortization [Line Items] | |||||
Capitalized software costs | $ 10,254 | $ 10,254 | $ 8,375 | ||
Operation and maintenance | |||||
Oil and Gas, Full Cost Method, Capitalized Cost Excluded from Amortization [Line Items] | |||||
Software costs | 4,048 | $ 3,163 | 9,975 | $ 10,801 | |
Depreciation and amortization | |||||
Oil and Gas, Full Cost Method, Capitalized Cost Excluded from Amortization [Line Items] | |||||
Software costs | 1,507 | $ 1,320 | 3,761 | $ 3,148 | |
Utility plant, at cost | |||||
Oil and Gas, Full Cost Method, Capitalized Cost Excluded from Amortization [Line Items] | |||||
Software costs | 88,128 | 88,128 | 51,282 | ||
Construction work in progress | Regulated | |||||
Oil and Gas, Full Cost Method, Capitalized Cost Excluded from Amortization [Line Items] | |||||
Software costs | 62,527 | 62,527 | 55,012 | ||
Nonutility plant and equipment, at cost | |||||
Oil and Gas, Full Cost Method, Capitalized Cost Excluded from Amortization [Line Items] | |||||
Software costs | 344 | 344 | 344 | ||
Accumulated depreciation and amortization, utility plant | |||||
Oil and Gas, Full Cost Method, Capitalized Cost Excluded from Amortization [Line Items] | |||||
Accumulated depreciation and amortization | (11,232) | (11,232) | (7,480) | ||
Accumulated depreciation and amortization, nonutility plant and equipment | |||||
Oil and Gas, Full Cost Method, Capitalized Cost Excluded from Amortization [Line Items] | |||||
Accumulated depreciation and amortization | $ (45) | $ (45) | $ (36) |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||||||
Balance as of beginning of period | $ 2,179,225 | $ 2,066,201 | $ 1,990,735 | $ 2,000,836 | $ 1,922,795 | $ 1,817,210 | $ 1,990,735 | $ 1,817,210 |
Other comprehensive income, before reclassifications, net of tax | 9,992 | |||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (105) | 304 | 184 | 913 | ||||
Other comprehensive (loss) income, net of tax | (105) | 9,886 | 395 | 304 | 305 | 304 | 10,176 | 913 |
Balance as of end of period | 2,143,018 | 2,179,225 | 2,066,201 | 1,995,242 | 2,000,836 | 1,922,795 | 2,143,018 | 1,995,242 |
Tax on other comprehensive income before reclassifications | (3,020) | |||||||
Tax on amounts reclassified from accumulated other comprehensive income (loss) | 33 | (91) | (54) | (275) | ||||
Tax on net current-period other comprehensive income | (3,074) | |||||||
Total | ||||||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||||||
Balance as of beginning of period | 322 | (9,564) | (9,959) | (4,217) | (4,522) | (4,826) | (9,959) | (4,826) |
Other comprehensive (loss) income, net of tax | (105) | 9,886 | 395 | 304 | 305 | 304 | ||
Balance as of end of period | 217 | 322 | (9,564) | (3,913) | (4,217) | (4,522) | 217 | (3,913) |
Cash Flow Hedges | ||||||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||||||
Balance as of beginning of period | (6,743) | (7,269) | (7,795) | (8,322) | (7,269) | (8,322) | ||
Other comprehensive income, before reclassifications, net of tax | 0 | |||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 264 | 263 | 790 | 790 | ||||
Other comprehensive (loss) income, net of tax | 790 | |||||||
Balance as of end of period | (6,479) | (6,743) | (7,532) | (7,795) | (6,479) | (7,532) | ||
Tax on other comprehensive income before reclassifications | 0 | |||||||
Tax on amounts reclassified from accumulated other comprehensive income (loss) | (79) | (79) | (238) | (238) | ||||
Tax on net current-period other comprehensive income | (238) | |||||||
Postemployment Benefit Obligation | ||||||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||||||
Balance as of beginning of period | 7,065 | $ (2,690) | 3,578 | $ 3,496 | (2,690) | 3,496 | ||
Other comprehensive income, before reclassifications, net of tax | 9,992 | |||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (369) | 41 | (606) | 123 | ||||
Other comprehensive (loss) income, net of tax | 9,386 | |||||||
Balance as of end of period | 6,696 | $ 7,065 | 3,619 | $ 3,578 | 6,696 | 3,619 | ||
Tax on other comprehensive income before reclassifications | (3,020) | |||||||
Tax on amounts reclassified from accumulated other comprehensive income (loss) | $ 112 | $ (12) | 184 | $ (37) | ||||
Tax on net current-period other comprehensive income | $ (2,836) |
REVENUE - DISAGGREGATED REVENUE
REVENUE - DISAGGREGATED REVENUE - PRODUCT (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 209,892 | $ 199,315 | $ 964,255 | $ 948,299 |
Alternative revenue programs | (1,033) | 5,211 | 3,812 | 29,016 |
Derivative instruments | 66,777 | 60,179 | 427,817 | 663,544 |
Revenues out of scope | 65,744 | 64,760 | 436,504 | 683,370 |
Total operating revenues | 275,636 | 264,075 | 1,400,759 | 1,631,669 |
Natural gas utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 138,804 | 134,253 | 767,698 | 749,618 |
Natural gas services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 40,679 | 38,222 | 119,996 | 130,631 |
Service contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 9,062 | 8,842 | 27,073 | 26,242 |
Installations and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 7,294 | 6,113 | 19,022 | 16,427 |
Renewable energy certificates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 4,872 | 4,720 | 10,194 | 8,007 |
Electricity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 9,575 | 8,274 | 22,842 | 22,062 |
ES | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 9,500 | 9,500 | 28,500 | 39,000 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 259,337 | 249,126 | 1,354,874 | 1,589,202 |
Operating Segments | NJNG | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 138,467 | 133,916 | 766,686 | 748,606 |
Alternative revenue programs | (1,033) | 5,211 | 3,812 | 29,016 |
Derivative instruments | 20,339 | 5,844 | 143,231 | 125,258 |
Revenues out of scope | 19,306 | 11,055 | 147,043 | 154,274 |
Total operating revenues | 157,773 | 144,971 | 913,729 | 902,880 |
Operating Segments | NJNG | Natural gas utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 138,804 | 134,253 | 767,698 | 749,618 |
Operating Segments | NJNG | Natural gas services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | NJNG | Service contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | NJNG | Installations and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | NJNG | Renewable energy certificates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | NJNG | Electricity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | CEV | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 14,447 | 12,994 | 33,036 | 30,069 |
Alternative revenue programs | 0 | 0 | 0 | 0 |
Derivative instruments | 201 | 184 | 26,232 | 10,307 |
Revenues out of scope | 201 | 184 | 26,232 | 10,307 |
Total operating revenues | 14,648 | 13,178 | 59,268 | 40,376 |
Operating Segments | CEV | Natural gas utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | CEV | Natural gas services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | CEV | Service contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | CEV | Installations and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | CEV | Renewable energy certificates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 4,872 | 4,720 | 10,194 | 8,007 |
Operating Segments | CEV | Electricity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 9,575 | 8,274 | 22,842 | 22,062 |
Operating Segments | ES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 16,204 | 16,021 | 48,617 | 60,705 |
Alternative revenue programs | 0 | 0 | 0 | 0 |
Derivative instruments | 46,237 | 54,151 | 258,354 | 527,979 |
Revenues out of scope | 46,237 | 53,521 | 263,229 | 518,789 |
Total operating revenues | 62,441 | 69,542 | 311,846 | 579,494 |
Operating Segments | ES | Natural gas utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | ES | Natural gas services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 16,204 | 16,021 | 48,617 | 60,705 |
Operating Segments | ES | Service contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | ES | Installations and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | ES | Renewable energy certificates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | ES | Electricity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | S&T | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 24,475 | 21,435 | 70,031 | 66,452 |
Alternative revenue programs | 0 | 0 | 0 | 0 |
Derivative instruments | 0 | 0 | 0 | 0 |
Revenues out of scope | 0 | 0 | 0 | 0 |
Total operating revenues | 24,475 | 21,435 | 70,031 | 66,452 |
Operating Segments | S&T | Natural gas utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | S&T | Natural gas services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 24,475 | 22,201 | 71,379 | 69,926 |
Operating Segments | S&T | Service contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | S&T | Installations and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | S&T | Renewable energy certificates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | S&T | Electricity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate, Non-Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues out of scope | 0 | 0 | 0 | 0 |
Total operating revenues | 16,299 | 14,949 | 45,885 | 42,467 |
Corporate, Non-Segment | HSO | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 16,299 | 14,949 | 45,885 | 42,467 |
Alternative revenue programs | 0 | 0 | 0 | 0 |
Derivative instruments | 0 | 0 | 0 | 0 |
Revenues out of scope | 0 | 0 | 0 | 0 |
Total operating revenues | 16,299 | 14,949 | 45,885 | 42,467 |
Corporate, Non-Segment | HSO | Natural gas utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate, Non-Segment | HSO | Natural gas services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate, Non-Segment | HSO | Service contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 9,062 | 8,842 | 27,073 | 26,242 |
Corporate, Non-Segment | HSO | Installations and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 7,294 | 6,113 | 19,022 | 16,427 |
Corporate, Non-Segment | HSO | Renewable energy certificates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate, Non-Segment | HSO | Electricity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | (394) | (1,109) | (2,570) | (4,688) |
Revenues out of scope | (630) | 4,875 | (9,190) | |
Total operating revenues | (1,739) | (13,878) | ||
Eliminations | NJNG | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | (337) | (337) | (1,012) | (1,012) |
Revenues out of scope | 0 | 0 | 0 | |
Eliminations | CEV | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Revenues out of scope | 0 | 0 | 0 | |
Eliminations | ES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Revenues out of scope | (630) | 4,875 | (9,190) | |
Eliminations | S&T | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | (766) | (1,348) | (3,474) |
Revenues out of scope | 0 | 0 | 0 | |
Eliminations | HSO | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ (57) | (6) | (210) | (202) |
Revenues out of scope | $ 0 | $ 0 | $ 0 |
REVENUE - DISAGGREGATED REVEN_2
REVENUE - DISAGGREGATED REVENUE - TYPE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 209,892 | $ 199,315 | $ 964,255 | $ 948,299 |
Revenues out of scope | 65,744 | 64,760 | 436,504 | 683,370 |
Total operating revenues | 275,636 | 264,075 | 1,400,759 | 1,631,669 |
Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 117,031 | 112,847 | 636,580 | 611,174 |
Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 72,785 | 67,112 | 248,948 | 260,540 |
Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 17,481 | 18,088 | 72,596 | 73,655 |
Interruptible, off-tariff and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2,595 | 1,268 | 6,131 | 2,930 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 259,337 | 249,126 | 1,354,874 | 1,589,202 |
Corporate, Non-Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues out of scope | 0 | 0 | 0 | 0 |
Total operating revenues | 16,299 | 14,949 | 45,885 | 42,467 |
Corporate, Non-Segment | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 16,272 | 14,922 | 45,759 | 42,191 |
Corporate, Non-Segment | Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 27 | 27 | 126 | 276 |
Corporate, Non-Segment | Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate, Non-Segment | Interruptible, off-tariff and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
NJNG | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 138,467 | 133,916 | 766,686 | 748,606 |
Revenues out of scope | 19,306 | 11,055 | 147,043 | 154,274 |
Total operating revenues | 157,773 | 144,971 | 913,729 | 902,880 |
NJNG | Operating Segments | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 97,112 | 94,340 | 580,559 | 558,901 |
NJNG | Operating Segments | Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 21,279 | 20,220 | 107,400 | 113,120 |
NJNG | Operating Segments | Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 17,481 | 18,088 | 72,596 | 73,655 |
NJNG | Operating Segments | Interruptible, off-tariff and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2,595 | 1,268 | 6,131 | 2,930 |
CEV | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 14,447 | 12,994 | 33,036 | 30,069 |
Revenues out of scope | 201 | 184 | 26,232 | 10,307 |
Total operating revenues | 14,648 | 13,178 | 59,268 | 40,376 |
CEV | Operating Segments | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3,647 | 3,585 | 10,262 | 10,082 |
CEV | Operating Segments | Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 10,800 | 9,409 | 22,774 | 19,987 |
CEV | Operating Segments | Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
CEV | Operating Segments | Interruptible, off-tariff and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
ES | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 9,500 | 9,500 | 28,500 | 39,000 |
ES | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 16,204 | 16,021 | 48,617 | 60,705 |
Revenues out of scope | 46,237 | 53,521 | 263,229 | 518,789 |
Total operating revenues | 62,441 | 69,542 | 311,846 | 579,494 |
ES | Operating Segments | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
ES | Operating Segments | Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 16,204 | 16,021 | 48,617 | 60,705 |
ES | Operating Segments | Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
ES | Operating Segments | Interruptible, off-tariff and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
S&T | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 24,475 | 21,435 | 70,031 | 66,452 |
Revenues out of scope | 0 | 0 | 0 | 0 |
Total operating revenues | 24,475 | 21,435 | 70,031 | 66,452 |
S&T | Operating Segments | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
S&T | Operating Segments | Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 24,475 | 21,435 | 70,031 | 66,452 |
S&T | Operating Segments | Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
S&T | Operating Segments | Interruptible, off-tariff and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 0 | $ 0 | $ 0 | $ 0 |
REVENUE - TIMING OF REVENUE REC
REVENUE - TIMING OF REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Timing of Revenue Recognition [Roll Forward] | ||
Customers' credit, beginning | $ 44,910 | $ 33,246 |
Increase (decrease) for customers' credits | (16,029) | (2,979) |
Customers' credit, end | 28,881 | 30,267 |
Billed | ||
Timing of Revenue Recognition [Roll Forward] | ||
Billed, beginning | 97,540 | 222,297 |
Increase (decrease) for customer accounts receivable | 30,724 | (111,834) |
Billed, end | 128,264 | 110,463 |
Unbilled | ||
Timing of Revenue Recognition [Roll Forward] | ||
Billed, beginning | 19,100 | 13,769 |
Increase (decrease) for customer accounts receivable | 1,464 | 2,723 |
Billed, end | $ 20,564 | $ 16,492 |
REVENUE - TIMING OF REVENUE R_2
REVENUE - TIMING OF REVENUE RECOGNITION - BALANCE SHEET (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 |
Disaggregation of Revenue [Line Items] | ||||
Billed | $ 128,264 | $ 97,540 | ||
Unbilled | 20,564 | 19,100 | ||
Customers' credit balances and deposits | (28,881) | (44,910) | $ (30,267) | $ (33,246) |
Customers accounts receivables & Customers' credit balances and deposits | 119,947 | 71,730 | ||
Operating Segments | NJNG | ||||
Disaggregation of Revenue [Line Items] | ||||
Billed | 84,923 | 55,234 | ||
Unbilled | 12,778 | 10,784 | ||
Customers' credit balances and deposits | (28,860) | (44,898) | ||
Customers accounts receivables & Customers' credit balances and deposits | 68,841 | 21,120 | ||
Operating Segments | CEV | ||||
Disaggregation of Revenue [Line Items] | ||||
Billed | 8,819 | 9,962 | ||
Unbilled | 7,786 | 8,316 | ||
Customers' credit balances and deposits | 0 | 0 | ||
Customers accounts receivables & Customers' credit balances and deposits | 16,605 | 18,278 | ||
Operating Segments | ES | ||||
Disaggregation of Revenue [Line Items] | ||||
Billed | 23,509 | 23,716 | ||
Unbilled | 0 | 0 | ||
Customers' credit balances and deposits | 0 | 0 | ||
Customers accounts receivables & Customers' credit balances and deposits | 23,509 | 23,716 | ||
Operating Segments | S&T | ||||
Disaggregation of Revenue [Line Items] | ||||
Billed | 8,360 | 6,577 | ||
Unbilled | 0 | 0 | ||
Customers' credit balances and deposits | (21) | (12) | ||
Customers accounts receivables & Customers' credit balances and deposits | 8,339 | 6,565 | ||
Corporate, Non-Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Billed | 2,653 | 2,051 | ||
Unbilled | 0 | 0 | ||
Customers' credit balances and deposits | 0 | 0 | ||
Customers accounts receivables & Customers' credit balances and deposits | $ 2,653 | $ 2,051 |
REGULATION - ADDITIONAL INFORMA
REGULATION - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | 9 Months Ended | ||||||||||
Jul. 26, 2024 | Jun. 28, 2024 | May 31, 2024 | May 15, 2024 | Apr. 30, 2024 | Mar. 28, 2024 | Mar. 20, 2024 | Jan. 31, 2024 | Dec. 01, 2023 | Nov. 09, 2023 | Jun. 30, 2024 | |
Schedule of Regulatory Filings [Line Items] | |||||||||||
Approved rate increase (decrease), amount | $ 76.9 | ||||||||||
NJNG | |||||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||||
Approved rate increase (decrease), amount | $ 43.5 | ||||||||||
Base Rate Stipulation | |||||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||||
Weighted average cost of capital | 6.84% | ||||||||||
Approved return on equity | 9.60% | ||||||||||
SAVEGREEN | |||||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||||
Capital investments approved by the BPU | $ 245.1 | ||||||||||
Financing options | 217.2 | ||||||||||
Operations and maintenance expense | $ 20.1 | ||||||||||
SAVEGREEN | NJNG | |||||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||||
Annual recovery increase | $ 5.6 | ||||||||||
BPU | NJNG | |||||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||||
Weighted average cost of capital | 7.57% | ||||||||||
Approved return on equity | 10.42% | ||||||||||
Approved rate increase (decrease), amount | $ 219.6 | $ 5.3 | $ 222.6 | ||||||||
Annual recovery increase | $ 6.8 | ||||||||||
BPU | NJNG | Subsequent Event | |||||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||||
Interim rate increase (decrease), amount | $ 41.2 | ||||||||||
RAC | |||||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||||
Approved rate increase (decrease), amount | $ 2.4 | ||||||||||
NJCEP | |||||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||||
Approved rate increase (decrease), amount | $ 5.5 | ||||||||||
BGSS | NJNG | |||||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||||
Approved rate increase (decrease), amount | (31) | $ (38.6) | |||||||||
BGSS Balancing | NJNG | |||||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||||
Approved rate increase (decrease), amount | 40.3 | (7.4) | |||||||||
CIP | NJNG | |||||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||||
Approved rate increase (decrease), amount | $ (0.6) | $ 27 |
REGULATION - REGULATORY ASSETS
REGULATION - REGULATORY ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Regulatory Assets and Liabilities [Line Items] | ||
Regulatory assets-current | $ 89,572 | $ 73,587 |
Regulatory assets-noncurrent | 557,280 | 584,830 |
Regulatory liability-current | 31,573 | 32,287 |
Regulatory liabilities-noncurrent | 176,720 | 180,458 |
Expended, net of recoveries | ||
Regulatory Assets and Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 74,300 | |
NJNG | ||
Regulatory Assets and Liabilities [Line Items] | ||
Regulatory assets-current | 89,572 | 73,587 |
Regulatory assets-noncurrent | 552,152 | 579,599 |
Regulatory liability-current | 31,244 | 30,637 |
Regulatory liabilities-noncurrent | 176,720 | 180,458 |
NJNG | Overrecovered natural gas costs | ||
Regulatory Assets and Liabilities [Line Items] | ||
Regulatory liability-current | 31,244 | 30,637 |
NJNG | Tax Act impact | ||
Regulatory Assets and Liabilities [Line Items] | ||
Regulatory liabilities-noncurrent | 176,583 | 180,347 |
NJNG | Other noncurrent regulatory liabilities | ||
Regulatory Assets and Liabilities [Line Items] | ||
Regulatory liabilities-noncurrent | 137 | 111 |
NJNG | New Jersey Clean Energy Program | ||
Regulatory Assets and Liabilities [Line Items] | ||
Regulatory assets-current | 20,265 | 15,804 |
NJNG | Conservation Incentive Program | ||
Regulatory Assets and Liabilities [Line Items] | ||
Regulatory assets-current | 54,169 | 50,356 |
NJNG | Derivatives at fair value, net | ||
Regulatory Assets and Liabilities [Line Items] | ||
Regulatory assets-current | 13,347 | 6,017 |
NJNG | Other current regulatory assets | ||
Regulatory Assets and Liabilities [Line Items] | ||
Regulatory assets-current | 1,791 | 1,410 |
Regulatory assets-noncurrent | 54,846 | 51,019 |
NJNG | Expended, net of recoveries | ||
Regulatory Assets and Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 74,316 | 66,298 |
NJNG | Liability for future expenditures | ||
Regulatory Assets and Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 153,818 | 169,390 |
NJNG | Deferred income taxes | ||
Regulatory Assets and Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 43,107 | 41,667 |
NJNG | SAVEGREEN | ||
Regulatory Assets and Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 93,713 | 83,589 |
NJNG | Postemployment and other benefit costs | ||
Regulatory Assets and Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 9,493 | 55,274 |
NJNG | Cost of removal | ||
Regulatory Assets and Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 122,859 | 112,362 |
Adelphia | ||
Regulatory Assets and Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 5,128 | 5,231 |
Regulatory liability-current | $ 329 | $ 1,650 |
DERIVATIVE INSTRUMENTS - BALANC
DERIVATIVE INSTRUMENTS - BALANCE SHEET RELATED DISCLOSURES (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Fair Value | ||
Derivative assets, current | $ 4,771 | $ 30,755 |
Derivative liability, current | 7,632 | 16,145 |
Derivative assets, noncurrent | 979 | 1,564 |
Derivative liabilities, noncurrent | 11,962 | 7,967 |
Not Designated as Hedging Instrument | ||
Fair Value | ||
Derivative assets | 5,750 | 32,319 |
Derivative liabilities | 19,594 | 24,112 |
NJNG | Not Designated as Hedging Instrument | Physical commodity contracts | ||
Fair Value | ||
Derivative assets, current | 81 | 43 |
Derivative liability, current | 1 | 488 |
NJNG | Not Designated as Hedging Instrument | Financial commodity contracts | ||
Fair Value | ||
Derivative assets, current | 0 | 6,110 |
Derivative liability, current | 60 | 20 |
ES | Not Designated as Hedging Instrument | Physical commodity contracts | ||
Fair Value | ||
Derivative assets, current | 1,636 | 6,209 |
Derivative liability, current | 6,197 | 12,757 |
Derivative assets, noncurrent | 816 | 802 |
Derivative liabilities, noncurrent | 11,422 | 7,870 |
ES | Not Designated as Hedging Instrument | Financial commodity contracts | ||
Fair Value | ||
Derivative assets, current | 3,054 | 18,393 |
Derivative liability, current | 1,374 | 2,880 |
Derivative assets, noncurrent | 163 | 762 |
Derivative liabilities, noncurrent | $ 540 | $ 97 |
DERIVATIVE INSTRUMENTS - OFFSET
DERIVATIVE INSTRUMENTS - OFFSETTING OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
ES | ||
Asset Derivatives | ||
Fair Value | $ 5,669 | $ 26,166 |
Amounts Offset | (2,405) | (4,213) |
Collateral Received/Pledged | 0 | (16,178) |
Net Value | 3,264 | 5,775 |
Liability Derivatives | ||
Fair Value | 19,533 | 23,604 |
Amounts Offset | (2,405) | (4,213) |
Collateral Received/Pledged | (10,569) | (9,728) |
Net Value | 6,559 | 9,663 |
ES | Physical commodity contracts | ||
Asset Derivatives | ||
Fair Value | 2,452 | 7,011 |
Amounts Offset | (491) | (1,236) |
Collateral Received/Pledged | 0 | 0 |
Net Value | 1,961 | 5,775 |
Liability Derivatives | ||
Fair Value | 17,619 | 20,627 |
Amounts Offset | (491) | (1,236) |
Collateral Received/Pledged | (10,569) | (9,728) |
Net Value | 6,559 | 9,663 |
ES | Financial commodity contracts | ||
Asset Derivatives | ||
Fair Value | 3,217 | 19,155 |
Amounts Offset | (1,914) | (2,977) |
Collateral Received/Pledged | 0 | (16,178) |
Net Value | 1,303 | 0 |
Liability Derivatives | ||
Fair Value | 1,914 | 2,977 |
Amounts Offset | (1,914) | (2,977) |
Collateral Received/Pledged | 0 | 0 |
Net Value | 0 | 0 |
NJNG | ||
Asset Derivatives | ||
Fair Value | 81 | 6,153 |
Amounts Offset | 0 | (23) |
Collateral Received/Pledged | 0 | 0 |
Net Value | 81 | 6,130 |
Liability Derivatives | ||
Fair Value | 61 | 508 |
Amounts Offset | 0 | (23) |
Collateral Received/Pledged | (60) | 0 |
Net Value | 1 | 485 |
NJNG | Physical commodity contracts | ||
Asset Derivatives | ||
Fair Value | 81 | 43 |
Amounts Offset | 0 | (3) |
Collateral Received/Pledged | 0 | 0 |
Net Value | 81 | 40 |
Liability Derivatives | ||
Fair Value | 1 | 488 |
Amounts Offset | 0 | (3) |
Collateral Received/Pledged | 0 | 0 |
Net Value | 1 | 485 |
NJNG | Financial commodity contracts | ||
Asset Derivatives | ||
Fair Value | 0 | 6,110 |
Amounts Offset | 0 | (20) |
Collateral Received/Pledged | 0 | 0 |
Net Value | 0 | 6,090 |
Liability Derivatives | ||
Fair Value | 60 | 20 |
Amounts Offset | 0 | (20) |
Collateral Received/Pledged | (60) | 0 |
Net Value | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS - INCOME
DERIVATIVE INSTRUMENTS - INCOME STATEMENT RELATED DISCLOSURES (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income on derivatives | $ (1,645) | $ 11,592 | $ 22,347 | $ 99,518 |
ES | Physical commodity contracts | Operating revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonutility | Nonutility | Nonutility | Nonutility |
Amount of gain (loss) recognized in income on derivatives | $ 3,560 | $ 12,648 | $ 13,939 | $ 29,894 |
ES | Physical commodity contracts | Natural gas purchases | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gas purchases - Utility and Nonutility | Gas purchases - Utility and Nonutility | Gas purchases - Utility and Nonutility | Gas purchases - Utility and Nonutility |
Amount of gain (loss) recognized in income on derivatives | $ 210 | $ (5,914) | $ (1,800) | $ (6,708) |
ES | Financial commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income on derivatives | (5,415) | 4,858 | 10,208 | 76,332 |
NJNG | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income on derivatives | 7,626 | 18,315 | 3,826 | (79,876) |
NJNG | Physical commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income on derivatives | 188 | 315 | (4,802) | (27,919) |
NJNG | Financial commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income on derivatives | $ 7,438 | $ 18,000 | $ 8,628 | $ (51,957) |
DERIVATIVE INSTRUMENTS - ADDITI
DERIVATIVE INSTRUMENTS - ADDITIONAL INFORMATION (Details) certificate in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2024 USD ($) certificate | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) certificate | Jun. 30, 2023 USD ($) | Sep. 30, 2023 certificate | |
Treasury Lock | Interest expense | |||||
Derivative [Line Items] | |||||
Amount of pre-tax gain (loss) reclassified from OCI into income | $ | $ (0.3) | $ (0.3) | $ (1) | $ (1) | |
Physical commodity contracts | ES | |||||
Derivative [Line Items] | |||||
Number of SRECs (in certificates) | certificate | 1.5 | 1.5 | 1.3 |
DERIVATIVE INSTRUMENTS - VOLUME
DERIVATIVE INSTRUMENTS - VOLUME (Details) - Bcf | 9 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Sep. 30, 2023 | |
NJNG | Long | Futures | ||
Derivative [Line Items] | ||
Notional amount | 13.9 | 32.1 |
NJNG | Long | Physical Commodity | ||
Derivative [Line Items] | ||
Notional amount | 4 | 12.1 |
ES | Long | Physical Commodity | ||
Derivative [Line Items] | ||
Notional amount | 0.2 | |
ES | Short | Futures | ||
Derivative [Line Items] | ||
Notional amount | (6.9) | (6.9) |
ES | Short | Physical Commodity | ||
Derivative [Line Items] | ||
Notional amount | 2.2 |
DERIVATIVE INSTRUMENTS - BROKER
DERIVATIVE INSTRUMENTS - BROKER MARGIN DEPOSITS (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
NJNG | Assets, Current | ||
Derivative [Line Items] | ||
Broker margin - current assets | $ 1,883 | $ 5,915 |
ES | Assets, Current | ||
Derivative [Line Items] | ||
Broker margin - current assets | 17,011 | 14,881 |
ES | Liabilities, Current | ||
Derivative [Line Items] | ||
Broker margin - Current liabilities | $ 0 | $ 8,029 |
DERIVATIVE INSTRUMENTS - CREDIT
DERIVATIVE INSTRUMENTS - CREDIT RISK EXPOSURE (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2024 USD ($) | |
Credit Risk Exposure [Line Items] | |
Gross Credit Exposure | $ 152,759 |
Investment grade | |
Credit Risk Exposure [Line Items] | |
Gross Credit Exposure | 108,200 |
Noninvestment grade | |
Credit Risk Exposure [Line Items] | |
Gross Credit Exposure | 9,074 |
Internally rated investment grade | |
Credit Risk Exposure [Line Items] | |
Gross Credit Exposure | 17,858 |
Internally rated noninvestment grade | |
Credit Risk Exposure [Line Items] | |
Gross Credit Exposure | $ 17,627 |
FAIR VALUE - DEBT (Details)
FAIR VALUE - DEBT (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
NJR | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt issuance costs | $ 3,200 | $ 3,700 |
NJNG | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt issuance costs | 10,600 | 9,800 |
Level 2 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 2,692,845 | 2,587,845 |
Level 2 | Fair market value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 2,306,291 | $ 2,106,536 |
FAIR VALUE - ADDITIONAL INFORMA
FAIR VALUE - ADDITIONAL INFORMATION (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Finance leases | $ 33,800 | $ 31,400 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Finance leases | 27,000 | 20,900 |
Fair market value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 2,306,291 | 2,106,536 |
Solar Asset Financing | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 278,300 | 278,400 |
Solar Asset Financing | Fair market value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 275,800 | $ 268,100 |
FAIR VALUE - HIERARCHY (Details
FAIR VALUE - HIERARCHY (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Liabilities: | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Assets | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Liabilities and Equity | |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Other | $ 2,603 | $ 2,641 |
Total assets at fair value | 29,984 | 35,105 |
Liabilities: | ||
Total liabilities at fair value | 19,594 | 24,112 |
Fair Value, Measurements, Recurring | Money market funds | ||
Assets: | ||
Assets | 21,631 | 145 |
Fair Value, Measurements, Recurring | Physical commodity contracts | ||
Assets: | ||
Assets | 2,533 | 7,054 |
Liabilities: | ||
Liabilities | 17,620 | 21,115 |
Fair Value, Measurements, Recurring | Financial commodity contracts | ||
Assets: | ||
Assets | 3,217 | 25,265 |
Liabilities: | ||
Liabilities | 1,974 | 2,997 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | ||
Assets: | ||
Other | 2,603 | 2,641 |
Total assets at fair value | 27,451 | 28,051 |
Liabilities: | ||
Total liabilities at fair value | 1,974 | 2,997 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Money market funds | ||
Assets: | ||
Assets | 21,631 | 145 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Physical commodity contracts | ||
Assets: | ||
Assets | 0 | 0 |
Liabilities: | ||
Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Financial commodity contracts | ||
Assets: | ||
Assets | 3,217 | 25,265 |
Liabilities: | ||
Liabilities | 1,974 | 2,997 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Other | 0 | 0 |
Total assets at fair value | 2,533 | 7,054 |
Liabilities: | ||
Total liabilities at fair value | 17,620 | 21,115 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Money market funds | ||
Assets: | ||
Assets | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Physical commodity contracts | ||
Assets: | ||
Assets | 2,533 | 7,054 |
Liabilities: | ||
Liabilities | 17,620 | 21,115 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Financial commodity contracts | ||
Assets: | ||
Assets | 0 | 0 |
Liabilities: | ||
Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Other | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Total liabilities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Money market funds | ||
Assets: | ||
Assets | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Physical commodity contracts | ||
Assets: | ||
Assets | 0 | 0 |
Liabilities: | ||
Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Financial commodity contracts | ||
Assets: | ||
Assets | 0 | 0 |
Liabilities: | ||
Liabilities | $ 0 | $ 0 |
INVESTMENTS IN EQUITY INVESTE_2
INVESTMENTS IN EQUITY INVESTEES (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
Investments in equity method investees | $ 100,824 | $ 104,134 |
Steckman Ridge | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 50% | |
Investments in equity method investees | $ 100,800 | 104,100 |
Steckman Ridge | Related Party | ||
Schedule of Equity Method Investments [Line Items] | ||
Total outstanding principal balance of loans | $ 70,400 | $ 70,400 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||||||
Net (loss) income | $ (11,574) | $ 120,812 | $ 89,411 | $ 1,532 | $ 110,247 | $ 115,921 | $ 198,649 | $ 227,700 |
Basic (loss) earnings per share | ||||||||
Weighted average shares of common stock outstanding-basic (in shares) | 98,983,000 | 97,168,000 | 98,409,000 | 96,849,000 | ||||
Basic (loss) earnings per common share (usd per share) | $ (0.12) | $ 0.02 | $ 2.02 | $ 2.35 | ||||
Diluted (loss) earnings per share | ||||||||
Weighted average shares of common stock outstanding-basic (in shares) | 98,983,000 | 97,168,000 | 98,409,000 | 96,849,000 | ||||
Incremental shares (in shares) | 0 | 718,000 | 804,000 | 689,000 | ||||
Weighted average shares of common stock outstanding-diluted (in shares) | 98,983,000 | 97,886,000 | 99,213,000 | 97,538,000 | ||||
Diluted (loss) earnings per common share (usd per share) | $ (0.12) | $ 0.02 | $ 2 | $ 2.33 | ||||
Anti-dilutive shares excluded from the calculation of diluted earnings per share (in shares) | 834,131 | 0 | 0 | 0 |
DEBT - CREDIT FACILITIES AND SH
DEBT - CREDIT FACILITIES AND SHORT-TERM DEBT (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2024 | Sep. 30, 2023 | |
NJR | Letter of Credit on Behalf of NJRES | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding, amount | $ 9,300,000 | $ 5,700,000 |
NJNG | Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding, amount | $ 700,000 | 700,000 |
Revolving Credit Facility | NJR | ||
Line of Credit Facility [Line Items] | ||
Commitment fee percentage | 0.10% | |
Revolving Credit Facility | NJNG | ||
Line of Credit Facility [Line Items] | ||
Commitment fee percentage | 0.075% | |
Revolving Credit Facility | Committed Credit Facilities Due September 2027 | NJR | ||
Line of Credit Facility [Line Items] | ||
Total borrowing capacity | $ 650,000,000 | 650,000,000 |
Loans outstanding | $ 254,800,000 | $ 217,300,000 |
Weighted average interest rate | 6.54% | 6.53% |
Remaining borrowing capacity | $ 385,869,000 | $ 426,967,000 |
Revolving Credit Facility | Committed Credit Facilities Due September 2027 | NJNG | ||
Line of Credit Facility [Line Items] | ||
Total borrowing capacity | 250,000,000 | 250,000,000 |
Loans outstanding | $ 0 | $ 34,800,000 |
Weighted average interest rate | 0% | 5.48% |
Remaining borrowing capacity | $ 249,269,000 | $ 214,469,000 |
DEBT - LONG TERM DEBT (Details)
DEBT - LONG TERM DEBT (Details) - USD ($) | 9 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 26, 2024 | Sep. 30, 2023 | |
Debt Instrument [Line Items] | ||||
Proceeds from sale leaseback transactions - natural gas meters | $ 8,814,000 | $ 8,441,000 | ||
Proceeds from sale leaseback transactions - solar | 24,394,000 | 163,619,000 | ||
CEV | ||||
Debt Instrument [Line Items] | ||||
Proceeds from sale leaseback transactions - solar | 24,400,000 | 163,600,000 | ||
NJNG | ||||
Debt Instrument [Line Items] | ||||
Proceeds from sale leaseback transactions - natural gas meters | $ 8,800,000 | $ 8,400,000 | ||
NJNG | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 200,000,000 | $ 100,000,000 | ||
NJNG | Senior Notes | Unsecured Senior Notes 5.56% | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 50,000,000 | |||
Stated interest rate | 5.56% | |||
NJNG | Senior Notes | Unsecured Senior Notes 5.85% | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 50,000,000 | |||
Stated interest rate | 5.85% | |||
NJNG | Senior Notes | Unsecured Senior Notes 5.82% | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 125,000,000 | |||
Stated interest rate | 5.82% | |||
NJNG | Senior Notes | Unsecured Senior Notes 5.49% | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 75,000,000 | |||
Stated interest rate | 5.49% |
EMPLOYEE BENEFIT PLANS - ADDITI
EMPLOYEE BENEFIT PLANS - ADDITIONAL INFORMATION (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Amortization period for plan amendment | 8 years | |
Pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS - COMPON
EMPLOYEE BENEFIT PLANS - COMPONENTS OF NET PERIODIC COST (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pension | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 1,244 | $ 1,350 | $ 3,732 | $ 4,051 |
Interest cost | 4,060 | 3,794 | 12,180 | 11,381 |
Expected return on plan assets | (5,087) | (4,993) | (15,260) | (14,979) |
Recognized actuarial loss | 29 | 75 | 88 | 225 |
Prior service cost (credit) amortization | 16 | 25 | 47 | 76 |
Net periodic benefit cost (credit) | 262 | 251 | 787 | 754 |
OPEB | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 254 | 618 | 1,151 | 1,854 |
Interest cost | 1,809 | 2,286 | 6,519 | 6,859 |
Expected return on plan assets | (2,021) | (1,680) | (5,899) | (5,041) |
Recognized actuarial loss | 1,256 | 0 | 3,007 | 0 |
Prior service cost (credit) amortization | (3,339) | 0 | (6,676) | 0 |
Net periodic benefit cost (credit) | $ (2,041) | $ 1,224 | $ (1,898) | $ 3,672 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | |
Income Tax Contingency [Line Items] | |||
Forecasted effective tax rate | 21.70% | 21.90% | |
Revaluation of deferred tax assets and liabilities | $ (0.8) | $ (16.3) | |
Reversal of a valuation allowance for certain deferred tax assets | $ (15.8) | ||
Actual effective tax rate | 21.40% | 15.90% | |
ITC carryforward | $ 186 | $ 191.2 | |
Effective term | 20 years | ||
Operating loss carryforward, valuation allowance | $ 0.7 | 0.7 | |
State | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | $ 627.1 | $ 631.2 | |
State | Minimum | |||
Income Tax Contingency [Line Items] | |||
Effective term | 7 years | ||
State | Maximum | |||
Income Tax Contingency [Line Items] | |||
Effective term | 20 years |
LEASES - ADDITIONAL INFORMATION
LEASES - ADDITIONAL INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | Jul. 31, 2021 | |
Lessee, Lease, Description [Line Items] | ||||||
ROU asset obtained in exchange for operating lease liability | $ 9,800 | $ 0 | $ 13,900 | $ 400 | ||
Proceeds from sale leaseback transactions - natural gas meters | 8,814 | 8,441 | ||||
ROU asset obtained in exchange for finance lease liability | $ 0 | $ 0 | $ 0 | |||
Weighted average remaining lease term, operating lease | 28 years 10 months 24 days | 28 years 10 months 24 days | 29 years 2 months 12 days | |||
Operating lease, discount rate | 3.80% | 3.80% | 3.50% | |||
Weighted average remaining lease term, finance lease | 3 years 2 months 12 days | 3 years 2 months 12 days | 3 years 3 months 18 days | |||
Finance lease, discount rate | 3.30% | 3.30% | 2.70% | |||
NJNG | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Proceeds from sale leaseback transactions - natural gas meters | $ 8,800 | $ 8,400 | ||||
Solar Property | Minimum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Term of contract | 20 years | 20 years | ||||
Renewal term | 5 years | 5 years | ||||
Solar Property | Maximum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Term of contract | 50 years | 50 years | ||||
Renewal term | 20 years | 20 years | ||||
Office Building | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Term of contract | 16 years | |||||
Office Building | Minimum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Term of contract | 2 years | 2 years | ||||
Office Building | Maximum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Term of contract | 11 years | 11 years | ||||
Meter License | Minimum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Term of contract | 6 years | 6 years | ||||
Meter License | Maximum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Term of contract | 10 years | 10 years | ||||
Equipment | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Term of contract | 9 years | 9 years | ||||
Storage and Capacity | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Term of contract | 50 years | 50 years |
LEASES - LEASE COST (Details)
LEASES - LEASE COST (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||||
Operating lease cost | $ 2,595 | $ 2,276 | $ 7,659 | $ 7,000 |
Amortization of right-of-use assets | 540 | 540 | 1,620 | 1,565 |
Interest on lease liabilities | 222 | 283 | 710 | 816 |
Total finance lease cost | 762 | 823 | 2,330 | 2,381 |
Variable lease cost | 105 | 158 | 551 | 653 |
Total lease cost | $ 3,462 | $ 3,257 | $ 10,540 | $ 10,034 |
LEASES - SUPPLEMENTAL CASH FLOW
LEASES - SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||
Operating cash flows for operating leases | $ 5,947 | $ 5,739 |
Operating cash flows for finance leases | 710 | 816 |
Financing cash flows for finance leases | $ 5,820 | $ 5,470 |
LEASES - RIGHT-OF-USE ASSETS AN
LEASES - RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Noncurrent | ||
Operating lease assets | $ 185,506 | $ 175,740 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Utility plant, at cost | Utility plant, at cost |
Finance lease assets | $ 26,628 | $ 28,248 |
Total lease assets | 212,134 | 203,988 |
Current | ||
Operating lease liabilities | $ 5,125 | $ 4,772 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current maturities of long-term debt | Current maturities of long-term debt |
Finance lease liabilities | $ 8,183 | $ 8,477 |
Noncurrent | ||
Operating lease liabilities | $ 159,988 | $ 148,023 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt | Long-term debt |
Finance lease liabilities | $ 17,349 | $ 22,875 |
Total lease liabilities | $ 190,645 | $ 184,147 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES - SCHEDULE OF FUTURE COMMITTED EXPENSES (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2024 USD ($) | |
Long-term Purchase Commitment [Line Items] | |
Current charges recoverable through BGSS | $ 237,700 |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2024 | 92,202 |
2025 | 325,994 |
2026 | 222,698 |
2027 | 172,253 |
2028 | 138,802 |
Thereafter | 1,004,236 |
ES | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2024 | 34,561 |
2025 | 79,983 |
2026 | 51,556 |
2027 | 31,855 |
2028 | 19,961 |
Thereafter | 37,230 |
ES | Natural gas purchases | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2024 | 9,998 |
2025 | 17,151 |
2026 | 1,090 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
ES | Storage demand fees | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2024 | 4,135 |
2025 | 16,119 |
2026 | 11,716 |
2027 | 5,452 |
2028 | 3,500 |
Thereafter | 6,780 |
ES | Pipeline demand fees | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2024 | 20,428 |
2025 | 46,713 |
2026 | 38,750 |
2027 | 26,403 |
2028 | 16,461 |
Thereafter | 30,450 |
Annual pipeline obligation to be paid over 10 year period | 4,000 |
NJNG | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2024 | 57,641 |
2025 | 246,011 |
2026 | 171,142 |
2027 | 140,398 |
2028 | 118,841 |
Thereafter | 967,006 |
NJNG | Natural gas purchases | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2024 | 7,517 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
NJNG | Storage demand fees | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2024 | 11,284 |
2025 | 38,199 |
2026 | 22,632 |
2027 | 11,160 |
2028 | 4,877 |
Thereafter | 0 |
NJNG | Pipeline demand fees | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2024 | 38,840 |
2025 | 207,812 |
2026 | 148,510 |
2027 | 129,238 |
2028 | 113,964 |
Thereafter | $ 967,006 |
Minimum | ES | |
Long-term Purchase Commitment [Line Items] | |
Storage and pipeline capacity, contract term | 1 year |
Maximum | ES | |
Long-term Purchase Commitment [Line Items] | |
Storage and pipeline capacity, contract term | 10 years |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES - LEGAL PROCEEDINGS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2024 | Sep. 30, 2023 | |
Site Contingency [Line Items] | ||
Manufactured gas plant remediation | $ 153,818 | $ 169,390 |
Recovery from third party of environmental remediation cost, period | 7 years | |
Regulatory assets | $ 557,280 | $ 584,830 |
Expended, net of recoveries | ||
Site Contingency [Line Items] | ||
Regulatory assets | 74,300 | |
Minimum | ||
Site Contingency [Line Items] | ||
Product liability contingency, loss exposure in excess of accrual, best estimate | 139,700 | |
Maximum | ||
Site Contingency [Line Items] | ||
Product liability contingency, loss exposure in excess of accrual, best estimate | $ 203,900 |
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 | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 275,636 | $ 264,075 | $ 1,400,759 | $ 1,631,669 |
Depreciation and amortization | 40,907 | 38,877 | 121,269 | 113,650 |
Interest income | 2,235 | 2,390 | 6,297 | 6,585 |
Interest expense, net of capitalized interest | 31,169 | 30,119 | 94,263 | 89,871 |
Income tax (benefit) provision | (2,764) | (20,505) | 54,119 | 43,059 |
Equity in earnings of affiliates | 1,340 | 701 | 3,738 | 2,778 |
Net financial earnings (loss) | (8,899) | 9,670 | 202,121 | 232,264 |
Capital expenditures | 158,484 | 117,103 | 395,786 | 380,214 |
ES | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 9,500 | 9,500 | 28,500 | 39,000 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 259,337 | 249,126 | 1,354,874 | 1,589,202 |
Depreciation and amortization | 41,756 | 38,650 | 122,483 | 112,981 |
Interest income | 3,296 | 2,647 | 9,550 | 7,170 |
Interest expense, net of capitalized interest | 30,985 | 29,971 | 93,655 | 89,412 |
Income tax (benefit) provision | (3,348) | (20,440) | 47,772 | 41,544 |
Equity in earnings of affiliates | 782 | 377 | 1,860 | 2,263 |
Net financial earnings (loss) | (10,957) | 8,912 | 203,584 | 233,663 |
Capital expenditures | 158,232 | 116,910 | 394,048 | 379,121 |
Operating Segments | NJNG | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 157,773 | 144,971 | 913,729 | 902,880 |
Depreciation and amortization | 28,491 | 25,825 | 82,872 | 76,034 |
Interest income | 571 | 496 | 1,666 | 1,285 |
Interest expense, net of capitalized interest | 14,239 | 13,226 | 43,840 | 40,814 |
Income tax (benefit) provision | (1,132) | 196 | 34,000 | 38,503 |
Equity in earnings of affiliates | 0 | 0 | 0 | 0 |
Net financial earnings (loss) | (6,139) | 891 | 152,400 | 156,252 |
Capital expenditures | 110,302 | 102,555 | 287,727 | 277,226 |
Operating Segments | CEV | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 14,648 | 13,178 | 59,268 | 40,376 |
Depreciation and amortization | 6,981 | 6,672 | 20,834 | 18,713 |
Interest income | 0 | 0 | 0 | 0 |
Interest expense, net of capitalized interest | 7,027 | 7,848 | 21,656 | 21,059 |
Income tax (benefit) provision | (2,008) | (18,237) | (471) | (23,079) |
Equity in earnings of affiliates | 0 | 0 | 0 | 0 |
Net financial earnings (loss) | (6,714) | 7,267 | (1,808) | (5,694) |
Capital expenditures | 37,013 | 10,905 | 74,096 | 68,604 |
Operating Segments | ES | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 62,441 | 69,542 | 311,846 | 579,494 |
Depreciation and amortization | 45 | 51 | 158 | 170 |
Interest income | 151 | 310 | 422 | 959 |
Interest expense, net of capitalized interest | 3,946 | 2,467 | 10,585 | 8,274 |
Income tax (benefit) provision | (1,553) | (2,934) | 11,247 | 23,046 |
Equity in earnings of affiliates | 0 | 0 | 0 | 0 |
Net financial earnings (loss) | (2,244) | (1,604) | 43,231 | 72,054 |
Capital expenditures | 0 | 0 | 0 | 0 |
Operating Segments | S&T | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 24,475 | 21,435 | 70,031 | 66,452 |
Depreciation and amortization | 6,239 | 6,102 | 18,619 | 18,064 |
Interest income | 2,574 | 1,841 | 7,462 | 4,926 |
Interest expense, net of capitalized interest | 5,773 | 6,430 | 17,574 | 19,265 |
Income tax (benefit) provision | 1,345 | 535 | 2,996 | 3,074 |
Equity in earnings of affiliates | 782 | 377 | 1,860 | 2,263 |
Net financial earnings (loss) | 4,140 | 2,358 | 9,761 | 11,051 |
Capital expenditures | 10,917 | 3,450 | 32,225 | 33,291 |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 337 | 1,733 | (2,515) | 13,676 |
Intersegment Eliminations | NJNG | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 337 | 337 | 1,012 | 1,012 |
Intersegment Eliminations | CEV | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Intersegment Eliminations | ES | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 630 | (4,875) | 9,190 |
Intersegment Eliminations | S&T | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 766 | 1,348 | 3,474 |
Corporate, Non-Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 16,299 | 14,949 | 45,885 | 42,467 |
Depreciation and amortization | 308 | 227 | 808 | 669 |
Interest income | 386 | 753 | 1,074 | 2,141 |
Interest expense, net of capitalized interest | 184 | 148 | 608 | 459 |
Income tax (benefit) provision | 640 | 429 | 1,108 | 1,134 |
Equity in earnings of affiliates | 0 | 0 | 0 | 0 |
Net financial earnings (loss) | 881 | 523 | 665 | 1,307 |
Capital expenditures | 252 | 193 | 1,738 | 1,093 |
Corporate Reconciling Items And Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 57 | 6 | 210 | 202 |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | (1,739) | (13,878) | ||
Depreciation and amortization | (1,157) | 0 | (2,022) | 0 |
Interest income | (1,447) | (1,010) | (4,327) | (2,726) |
Interest expense, net of capitalized interest | 0 | 0 | 0 | 0 |
Income tax (benefit) provision | (56) | (494) | 5,239 | 381 |
Equity in earnings of affiliates | 558 | 324 | 1,878 | 515 |
Net financial earnings (loss) | 1,177 | 235 | (2,128) | (2,706) |
Capital expenditures | 0 | $ 0 | 0 | $ 0 |
Eliminations And Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ (394) | $ 2,305 |
REPORTING SEGMENT AND OTHER O_4
REPORTING SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT ASSETS TO CONSOLIDATED (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 6,784,121 | $ 6,537,496 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 6,898,814 | 6,679,140 |
Operating Segments | NJNG | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 4,612,429 | 4,414,829 |
Operating Segments | CEV | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 1,166,799 | 1,128,577 |
Operating Segments | ES | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 100,522 | 123,775 |
Operating Segments | S&T | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 1,019,064 | 1,011,959 |
Corporate, Non-Segment | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 181,479 | 171,275 |
Intercompany Assets | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ (296,172) | $ (312,919) |
REPORTING SEGMENT AND OTHER O_5
REPORTING SEGMENT AND OTHER OPERATIONS DATA - NET FINANCIAL EARNINGS (LOSS) RECONCILIATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting [Abstract] | ||||||||
Net financial (loss) earnings | $ (8,899) | $ 9,670 | $ 202,121 | $ 232,264 | ||||
Less: | ||||||||
Unrealized loss (gain) on derivative instruments and related transactions | 3,803 | (12,970) | 23,860 | (30,502) | ||||
Tax effect | (903) | 3,083 | (5,670) | 7,250 | ||||
Effects of economic hedging related to natural gas inventory | (385) | 24,116 | (19,458) | 36,885 | ||||
Tax effect | 91 | (5,731) | 4,624 | (8,766) | ||||
Gain on equity method investment | 0 | (100) | 0 | (300) | ||||
Tax effect | 0 | 24 | 0 | 74 | ||||
NFE tax adjustment | 69 | (284) | 116 | (77) | ||||
NET (LOSS) INCOME | $ (11,574) | $ 120,812 | $ 89,411 | $ 1,532 | $ 110,247 | $ 115,921 | $ 198,649 | $ 227,700 |
RELATED PARTY TRANSACTIONS - AD
RELATED PARTY TRANSACTIONS - ADDITIONAL INFORMATION (Details) $ in Millions | 1 Months Ended | 9 Months Ended |
Apr. 30, 2020 USD ($) Bcf | Jun. 30, 2024 dth / d numberOfAgreement Bcf | |
NJNG to NJRES Affiliate | ||
Related Party Transaction [Line Items] | ||
Asset management agreement, period | 5 years | |
NJNG to Steckman RIdge Affiliate | ||
Related Party Transaction [Line Items] | ||
Natural gas sold at cost under asset management agreement (in Bcf) | Bcf | 3 | |
Approximate annual demand fees under agreement | $ | $ 9.3 | |
NJNG to Adelphia Affiliate | ||
Related Party Transaction [Line Items] | ||
Number of transportation agreements | numberOfAgreement | 2 | |
NJNG to Adelphia Affiliate | Transportation Precedent Agreement One | ||
Related Party Transaction [Line Items] | ||
Transportation capacity under precedent agreement (in bcf per day) | dth / d | 130,000 | |
Transportation precedent agreement term | 5 years | |
NJNG to Adelphia Affiliate | Transportation Precedent Agreement Two | ||
Related Party Transaction [Line Items] | ||
Transportation capacity under precedent agreement (in bcf per day) | dth / d | 130,000 | |
Transportation precedent agreement term | 15 years | |
Leaf River Energy Center LLC | ||
Related Party Transaction [Line Items] | ||
Natural gas sold at cost under asset management agreement (in Bcf) | Bcf | 3 | |
Storage capacity agreement term | 5 years | |
NJNG and Clean Energy Ventures to PPA | Sublease Agreement One | ||
Related Party Transaction [Line Items] | ||
Sublease agreement term | 15 years | |
NJNG and Clean Energy Ventures to PPA | Sublease Agreement Two | ||
Related Party Transaction [Line Items] | ||
Sublease agreement term | 20 years | |
NJNG To NJR Subsidiaries | ||
Related Party Transaction [Line Items] | ||
Term of contract | 16 years |
RELATED PARTY TRANSACTIONS - DE
RELATED PARTY TRANSACTIONS - DEMAND FEES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | |
Related Party Transaction [Line Items] | |||||
Demand fees payable | $ 875 | $ 875 | $ 859 | ||
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Demand fees expense recognized pertaining to related party agreement | 1,729 | $ 1,870 | 5,407 | $ 5,467 | |
Demand fees payable | 875 | 875 | 859 | ||
Related Party | NJNG to Steckman RIdge Affiliate | |||||
Related Party Transaction [Line Items] | |||||
Demand fees expense recognized pertaining to related party agreement | 1,541 | 1,703 | 4,781 | 4,973 | |
Demand fees payable | 775 | 775 | 775 | ||
Related Party | NJRES to Steckman Ridge Affiliate | |||||
Related Party Transaction [Line Items] | |||||
Demand fees expense recognized pertaining to related party agreement | 188 | $ 167 | 626 | $ 494 | |
Demand fees payable | $ 100 | $ 100 | $ 84 |