SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Sep. 30, 2025

The following table summarizes the demand charges, which are net of capacity releases, and are included as a component of natural gas purchases on the Consolidated Statements of Operations for the fiscal years ended September 30:


(Millions)	2025		2024		2023
ES	$	65.3	$	72.6	$	74.6
NJNG	247.1		200.4		183.4
Total	$	312.4	$	273.0	$	258.0

Schedule of Property, Plant and Equipment

Property, plant and equipment was comprised of the following as of September 30:


(Thousands)	Estimated
Property Classifications	Useful Lives	2025		2024
Distribution facilities	10 to 54 years	$	3,642,492	$	3,436,308
Transmission facilities	28 to 40 years	662,801		656,098
Storage facilities	26 to 87 years	86,448		86,329
Solar property	15 to 35 years	988,445		885,518
Storage and transportation property	5 to 55 years	960,547		929,850
All other property	5 to 40 years	66,298		62,248
Construction work in progress		547,347		440,164
Total property, plant and equipment		6,954,378		6,496,515
Accumulated depreciation and amortization		(1,144,279)		(1,093,292)
Property, plant and equipment, net		$	5,810,099	$	5,403,223

Schedule of Capitalized Amounts Associated with Debt and Equity Component of AFUDC

Capitalized and deferred interest include the following for the fiscal years ended September 30:


($ in thousands)	2025						2024						2023
AFUDC:	NJNG			Adelphia			NJNG			Adelphia			NJNG			Adelphia
Debt	$	6,486		$	57		$	4,729		$	64		$	3,546		$	90
Equity	9,859			114			6,761			113			6,979			158
Total	$	16,345		$	171		$	11,490		$	177		$	10,525		$	248
Weighted average interest rate	6.41		%	7.84		%	6.48		%	8.28		%	6.41		%	8.28		%

Schedule of Restricted Cash

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheets to the total amounts in the Consolidated Statements of Cash Flows, as of September 30:


(Thousands)	2025		2024		2023
Balance Sheet
Cash and cash equivalents	$	591	$	1,017	$	954
Restricted cash in other noncurrent assets	$	1,058	$	595	$	563
Statements of Cash Flow
Cash, cash equivalents and restricted cash	$	1,649	$	1,612	$	1,517

Schedule of Gas in Storage

The following table summarizes natural gas in storage, at average cost by reportable segment, as of September 30:


	2025				2024
($ in thousands)	Natural Gas in Storage			Bcf	Natural Gas in Storage			Bcf
NJNG		$	184,099	30.8		$	177,655	30.8
ES		30,686		13.2		21,378		13.1
S&T		1,051		0.3		92		—
Total		$	215,836	44.3		$	199,125	43.9

Schedule of Software Costs Included in the Consolidated Financial Statements

The following table presents the software costs included in the Consolidated Financial Statements, as of September 30:


(Thousands)	2025		2024
Balance Sheets
Utility plant, at cost	$	132,868	$	133,158
Construction work in progress	$	87,274	$	26,659
Nonutility plant and equipment, at cost	$	344	$	344

Accumulated depreciation and amortization, utility plant	$	(24,906)	$	(13,632)
Accumulated depreciation and amortization, nonutility plant and equipment	$	(70)	$	(48)
Software costs	$	11,151	$	10,522
Statements of Operations
Operation and maintenance	$	1,376	$	13,087
Depreciation and amortization	$	11,296	$	6,164

Schedule of Analysis of Change in ARO Liability

The following is an analysis of the change in the Company’s AROs for the fiscal years ended September 30:


(Thousands)	Balance at October 1		Accretion	Additions	Change in assumptions	Retirements	Balance at period end
2025
NJNG	$	59,674	3,353	351	7,079	(2,044)	$	68,413
NJRCEV	$	7,023	256	815	—	—	$	8,094
2024
NJNG	$	55,285	3,039	152	2,925	(1,727)	$	59,674
NJRCEV	$	6,708	236	79	—	—	$	7,023

Schedule of Future Accretion

Accretion for the next five years, for the fiscal years ended September 30, is estimated to be as follows:


(Thousands)	2026		2027	2028	2029	2030	Total
Estimated Accretion	$	3,955	4,156	4,376	4,616	4,868	$	21,971

Schedule of Accumulated Other Comprehensive Income

The following table presents the changes in the components of accumulated other comprehensive income, net of related tax effects:


(Thousands)	Cash Flow Hedges		Postemployment Benefit Obligation			Total
Balance as of September 30, 2023	$	(7,269)	$	(2,690)		$	(9,959)
Other comprehensive income, net of tax
Other comprehensive income, before reclassifications, net of tax of $0, $(1,002) and $(1,002), respectively	—		3,360			3,360
Amounts reclassified from accumulated other comprehensive income, net of tax of $(317), $296 and $(21), respectively	1,054		(976)		(1)	78
Net current-period other comprehensive income, net of tax of $(317), $(706) and $(1,023), respectively	1,054		2,384			3,438
Balance as of September 30, 2024	$	(6,215)	$	(306)		$	(6,521)
Other comprehensive income, net of tax
Other comprehensive income, before reclassifications, net of tax of $0, $1,571 and $1,571, respectively	—		(5,213)			(5,213)
Amounts reclassified from accumulated other comprehensive income, net of tax of $(317), $232 and $(85), respectively	1,052		(781)		(1)	271
Net current-period other comprehensive income, net of tax of $(317), $1,803 and $1,486, respectively	1,052		(5,994)			(4,942)
Balance as of September 30, 2025	$	(5,163)	$	(6,300)		$	(11,463)

(1)Included in the computation of net periodic pension cost, a component of O&M on the Consolidated Statements of Operations. For more details, see Note 11. Employee Benefit Plans.

NEW JERSEY RESOURCES CORP 10-K