(Exact name of registrant as specified in its charter) | ||||||||||||||||||||
New Jersey | 22-2376465 | |||||||||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |||||||||||||||||||
1415 Wyckoff Road, | Wall, | New Jersey | 07719 | (732) | 938‑1000 | |||||||||||||||
(Address of principal executive offices) | (Registrant’s telephone number, including area code) |
Securities registered pursuant to Section 12 (b) of the Act: | ||||||||
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Common Stock ‑ $2.50 Par Value | NJR | New York Stock Exchange | ||||||
Securities registered pursuant to Section 12 (g) of the Act: None |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ |
Page | |||||||||||
PART I | |||||||||||
ITEM 1. | |||||||||||
ITEM 1A. | |||||||||||
ITEM 1B. | |||||||||||
ITEM 2. | |||||||||||
ITEM 3. | |||||||||||
ITEM 4. | |||||||||||
PART II | |||||||||||
ITEM 5. | |||||||||||
ITEM 6. | |||||||||||
ITEM 7. | |||||||||||
ITEM 7A. | |||||||||||
ITEM 8. | |||||||||||
Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34) | |||||||||||
ITEM 9. | |||||||||||
ITEM 9A. | |||||||||||
ITEM 9B. | |||||||||||
PART III* | |||||||||||
ITEM 10. | |||||||||||
ITEM 11. | |||||||||||
ITEM 12. | |||||||||||
ITEM 13. | |||||||||||
ITEM 14. | |||||||||||
PART IV | |||||||||||
ITEM 15. | |||||||||||
* Portions of Item 10 and Items 11-14 are Incorporated by Reference from the Proxy Statement. |
Adelphia Gateway | Adelphia Gateway, LLC | ||||
AFUDC | Allowance for Funds Used During Construction | ||||
AMA | Asset Management Agreement | ||||
ARO | Asset Retirement Obligations | ||||
ASC | Accounting Standards Codification | ||||
ASU | Accounting Standards Update | ||||
Bcf | Billion Cubic Feet | ||||
BGSS | Basic Gas Supply Service | ||||
BPU | New Jersey Board of Public Utilities | ||||
CARES Act | Coronavirus Aid, Relief, and Economic Security Act | ||||
CIP | Conservation Incentive Program | ||||
Clean Energy Ventures | Clean Energy Ventures segment | ||||
CME | Chicago Mercantile Exchange | ||||
COVID-19 | Novel coronavirus disease | ||||
CR&R | Commercial Realty & Resources Corp. | ||||
Degree-day | The measure of the variation in the weather based on the extent to which the average daily temperature falls below 65 degrees Fahrenheit | ||||
DEI | Diversity, equity and inclusion | ||||
DRP | NJR Direct Stock Purchase and Dividend Reinvestment Plan | ||||
Dths | Dekatherms | ||||
EDECA | Electric Discount and Energy Competition Act | ||||
EE | Energy Efficiency | ||||
EMP | New Jersey Energy Master Plan | ||||
Energy Services | Energy Services segment | ||||
Exchange Act | Securities Exchange Act of 1934, as amended | ||||
FASB | Financial Accounting Standards Board | ||||
FCM | Futures Commission Merchant | ||||
FERC | Federal Energy Regulatory Commission | ||||
Financial Margin | A non-GAAP financial measure, which represents revenues earned from the sale of natural gas less costs of natural gas sold including any transportation and storage costs, and excludes certain operations and maintenance expense and depreciation and amortization, as well as any accounting impact from the change in the fair value of certain derivative instruments | ||||
Fitch | Fitch Ratings Company | ||||
FMB | First Mortgage Bond | ||||
GAAP | Generally Accepted Accounting Principles of the United States | ||||
GWRA | Global Warming Response Act of 2007 | ||||
HCCTR | Health Care Cost Trend Rate | ||||
Home Services and Other | Home Services and Other Operations | ||||
ICE | Intercontinental Exchange | ||||
IIP | Infrastructure Investment Program | ||||
IRS | Internal Revenue Service | ||||
ISDA | The International Swaps and Derivatives Association | ||||
ITC | Federal Investment Tax Credit | ||||
LDCC | Leadership Development and Compensation Committee | ||||
Leaf River | Leaf River Energy Center LLC | ||||
LNG | Liquefied Natural Gas | ||||
MGP | Manufactured Gas Plant | ||||
MMBtu | Million British Thermal Units | ||||
Moody’s | Moody’s Investors Service, Inc. | ||||
Mortgage Indenture | The Amended and Restated Indenture of Mortgage, Deed of Trust and Security Agreement between NJNG and U.S. Bank National Association dated as of September 1, 2014, as amended | ||||
MW | Megawatts | ||||
MWh | Megawatt Hour | ||||
NAESB | The North American Energy Standards Board |
GLOSSARY OF KEY TERMS (cont.) | |||||
NAV | Net Asset Value | ||||
Natural Gas Distribution | Natural Gas Distribution segment | ||||
NFE | Net Financial Earnings | ||||
NJ RISE | New Jersey Reinvestment in System Enhancement | ||||
NJCEP | New Jersey’s Clean Energy Program | ||||
NJDEP | New Jersey Department of Environmental Protection | ||||
NJNG | New Jersey Natural Gas Company | ||||
NJNG Credit Facility | The $250 million unsecured committed credit facility expiring in September 2027 | ||||
NJR Credit Facility | The $650 million unsecured committed credit facility expiring in September 2027 | ||||
NJR or The Company | New Jersey Resources Corporation | ||||
NJRCEV | NJR Clean Energy Ventures Corporation | ||||
NJRES | NJR Energy Services Company | ||||
NJRHS | NJR Home Services Company | ||||
Non-GAAP | Not in accordance with GAAP | ||||
NPNS | Normal Purchase/Normal Sale | ||||
NYMEX | New York Mercantile Exchange | ||||
OASDI | Old Age, Survivors and Disability Insurance tax | ||||
OCI | Other Comprehensive Income | ||||
O&M | Operations and Maintenance | ||||
OPEB | Other Postemployment Benefit Plans | ||||
PBO | Projected Benefit Obligation | ||||
PennEast | PennEast Pipeline Company, LLC | ||||
PEP | Pension Equalization Plan | ||||
PIM | Pipeline Integrity Management | ||||
PPA | Power Purchase Agreement | ||||
RAC | Remediation Adjustment Clause | ||||
REC | Renewable Energy Certificate | ||||
SAFE II | Safety Acceleration and Facility Enhancement Program, Phase II | ||||
Sarbanes-Oxley | Sarbanes-Oxley Act of 2002 | ||||
SAVEGREEN | The SAVEGREEN Project® | ||||
Savings Plan | Employees’ Retirement Savings Plan | ||||
SBC | Societal Benefits Charge | ||||
SEC | Securities and Exchange Commission | ||||
Securities Act | Securities Act of 1933, as amended | ||||
SOFR | Secured Overnight Financing Rate | ||||
SREC | Solar Renewable Energy Certificate | ||||
SRL | Southern Reliability Link | ||||
S&P | Standard & Poor’s Financial Services, LLC | ||||
Steckman Ridge | Collectively, Steckman Ridge GP, LLC and Steckman Ridge, LP | ||||
Storage and Transportation | Storage and Transportation segment | ||||
TETCO | Texas Eastern Transmission | ||||
The Inflation Reduction Act | The Inflation Reduction Act of 2022 | ||||
The Tax Act | 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 | ||||
TREC | Transition Renewable Energy Certificate | ||||
Trustee | U.S. Bank National Association | ||||
TSR | Total Shareholder Return | ||||
U.S. | The United States of America | ||||
Union | International Brotherhood of Electrical Workers Local 1820 | ||||
USF | Universal Service Fund | ||||
Utility Gross Margin | A non-GAAP financial measure, which represents operating revenues less natural gas purchases, sales tax, and regulatory rider expense, and excludes certain operations and maintenance expense and depreciation and amortization |
2022 | 2021 |
(Thousands) | 2022 | 2021 | 2020 | ||||||||
Net income | $ | 274,922 | $ | 117,890 | $ | 163,007 | |||||
Add: | |||||||||||
Unrealized (gain) loss on derivative instruments and related transactions | (59,906) | 54,203 | (9,644) | ||||||||
Tax effect | 14,248 | (12,887) | 2,296 | ||||||||
Effects of economic hedging related to natural gas inventory | 19,939 | (42,405) | 12,690 | ||||||||
Tax effect | (4,738) | 10,078 | (3,016) | ||||||||
(Gain on) impairment of equity method investment | (5,521) | 92,000 | — | ||||||||
Tax effect | 1,377 | (11,167) | — | ||||||||
NFE | $ | 240,321 | $ | 207,712 | $ | 165,333 | |||||
Basic earnings per share | $ | 2.86 | $ | 1.23 | $ | 1.72 | |||||
Add: | |||||||||||
Unrealized (gain) loss on derivative instruments and related transactions | (0.62) | 0.56 | (0.10) | ||||||||
Tax effect | 0.15 | (0.13) | 0.02 | ||||||||
Effects of economic hedging related to natural gas inventory | 0.21 | (0.44) | 0.13 | ||||||||
Tax effect | (0.05) | 0.10 | (0.03) | ||||||||
(Gain on) impairment of equity method investment | (0.06) | 0.96 | — | ||||||||
Tax effect | 0.01 | (0.12) | — | ||||||||
Basic NFE per share | $ | 2.50 | $ | 2.16 | $ | 1.74 |
2022 | 2021 | 2020 | ||||||||||||||||||||||||
($ in thousands) | Operating Revenue | Bcf | Operating Revenue | Bcf | Operating Revenue | Bcf | ||||||||||||||||||||
Residential | $ | 598,433 | 45.5 | $ | 484,407 | 46.2 | $ | 500,271 | 44.6 | |||||||||||||||||
Commercial and other | 140,727 | 8.7 | 103,341 | 8.6 | 98,463 | 8.2 | ||||||||||||||||||||
Firm transportation | 80,915 | 13.0 | 69,353 | 13.7 | 66,871 | 13.3 | ||||||||||||||||||||
Total residential and commercial | 820,075 | 67.2 | 657,101 | 68.5 | 665,605 | 66.1 | ||||||||||||||||||||
Interruptible/off-tariff agreements | 9,740 | 32.4 | 7,239 | 22.9 | 6,322 | 30.9 | ||||||||||||||||||||
Total system | 829,815 | 99.6 | 664,340 | 91.4 | 671,927 | 97.0 | ||||||||||||||||||||
BGSS incentive programs (1) | 298,952 | 44.5 | 67,456 | 20.8 | 57,996 | 118.4 | ||||||||||||||||||||
Total | $ | 1,128,767 | 144.1 | $ | 731,796 | 112.2 | $ | 729,923 | 215.4 |
Pipeline | Dths (1) | Expiration | |||||||||
Texas Eastern Transmission, L.P. | 383,588 | 2023-2025 | |||||||||
Columbia Gas Transmission Corp. | 50,000 | 2024-2030 | |||||||||
Tennessee Gas Pipeline Co. | 25,166 | 2024-2028 | |||||||||
Transcontinental Gas Pipe Line Corp. | 332,531 | 2023-2033 | |||||||||
Algonquin Gas Transmission | 12,000 | 2024 | |||||||||
Total | 803,285 |
Pipeline | Dths | Expiration | |||||||||
Texas Eastern Transmission, L.P. | 94,557 | 2024 | |||||||||
Transcontinental Gas Pipe Line Corp. | 8,384 | 2028 | |||||||||
Total | 102,941 |
Company | Dths | Expiration | |||||||||
Eastern Gas Transmission and Storage | 286,829 | 2023-2026 | |||||||||
Steckman Ridge, L.P. | 38,000 | 2025 | |||||||||
Stagecoach Pipeline & Storage Company LLC | 25,337 | 2028 | |||||||||
Total | 350,166 |
Name | Age | Officer since | Business experience during last five years | ||||||||
Stephen D. Westhoven | 54 | 2004 | President and Chief Executive Officer (October 2019 - present) President and Chief Operating Officer (October 2018 - September 2019) Executive Vice President and Chief Operating Officer (November 2017 - September 2018) Senior Vice President and Chief Operating Officer, NJRES and NJRCEV (October 2016 - October 2017) | ||||||||
Roberto Bel | 49 | 2019 | Senior Vice President and Chief Financial Officer (January 2022 - present) Vice President, Treasury and Investor Relations (April 2019 - December 2021) Assistant Treasurer at Refinitiv (October 2018 - March 2019) Assistant Treasurer at Thomson Reuters (May 2016 - September 2018) | ||||||||
Patrick J. Migliaccio | 48 | 2013 | Senior Vice President and Chief Operating Officer (January 2022 - present) Senior Vice President and Chief Financial Officer (January 2016 - December 2021) | ||||||||
Amy Cradic | 51 | 2018 | Senior Vice President and Chief Operating Officer of Nonutility Businesses, Strategy and External Affairs (March 2020 - present) Vice President, Corporate Strategy and External Affairs (January 2020 – February 2020) Vice President, Government Affairs and Policy (January 2018 – December 2019) Chief of Staff, Office of New Jersey Governor Chris Christie (April 2016 – January 2018) | ||||||||
Richard Reich | 47 | 2016 | Senior Vice President, General Counsel and Corporate Secretary (September 2021 - present) Corporate Secretary and Assistant General Counsel (January 2016 - September 2021) | ||||||||
Lori DelGiudice | 47 | 2023 | Senior Vice President, Human Resources (November 22 - present) Vice President of Human Resources for Honeywell Advanced Materials (September 2017 – October 2022) | ||||||||
Jacqueline K. Shea | 58 | 2016 | Vice President and Chief Information Officer (June 2016 - present) |
Cumulative Total Return | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | ||||||||||||||
NJR | $100.00 | $112.28 | $112.86 | $70.23 | $93.72 | $107.90 | ||||||||||||||
S&P 500 Utilities | $100.00 | $102.93 | $130.82 | $124.32 | $138.01 | $145.71 | ||||||||||||||
S&P 500 | $100.00 | $117.91 | $122.93 | $141.55 | $184.02 | $155.55 | ||||||||||||||
Peer Group | $100.00 | $104.62 | $121.14 | $92.10 | $100.75 | $115.19 |
Period | Total Number of Shares (or Units) Purchased | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares (or Units) That May Yet Be Purchased Under the Plans or Programs | |||||||||||||
07/01/22 - 07/31/22 | — | $ | — | — | 1,685,053 | ||||||||||||
08/01/22 - 08/31/22 | — | $ | — | — | 1,685,053 | ||||||||||||
09/01/22 - 09/30/22 | — | $ | — | — | 1,685,053 | ||||||||||||
Total | — | $ | — | — | 1,685,053 |
Pension Plans | ||||||||||||||||||||||||||
Actuarial Assumptions | Increase/ (Decrease) | Estimated Increase/(Decrease) on PBO (Thousands) | Estimated Increase/(Decrease) to Expense (Thousands) | |||||||||||||||||||||||
Discount rate | 1.00 | % | $ | (30,196) | $ | (4,599) | ||||||||||||||||||||
Discount rate | (1.00) | % | $ | 36,650 | $ | 5,489 | ||||||||||||||||||||
Rate of return on plan assets | 1.00 | % | n/a | $ | (3,153) | |||||||||||||||||||||
Rate of return on plan assets | (1.00) | % | n/a | $ | 3,153 |
Other Postemployment Benefits | ||||||||||||||||||||||||||
Actuarial Assumptions | Increase/ (Decrease) | Estimated Increase/(Decrease) on PBO (Thousands) | Estimated Increase/(Decrease) to Expense (Thousands) | |||||||||||||||||||||||
Discount rate | 1.00 | % | $ | (21,498) | $ | (3,475) | ||||||||||||||||||||
Discount rate | (1.00) | % | $ | 26,748 | $ | 4,265 | ||||||||||||||||||||
Rate of return on plan assets | 1.00 | % | n/a | $ | (1,123) | |||||||||||||||||||||
Rate of return on plan assets | (1.00) | % | n/a | $ | 1,122 | |||||||||||||||||||||
Actuarial Assumptions | Increase/ (Decrease) | Estimated Increase/(Decrease) on PBO (Thousands) | Estimated Increase/(Decrease) to Expense (Thousands) | |||||||||||||||||||||||
Health care cost trend rate | 1.00 | % | $ | 26,710 | $ | 6,992 | ||||||||||||||||||||
Health care cost trend rate | (1.00) | % | $ | (21,853) | $ | (5,537) |
(Thousands) | 2022 | 2021 | 2020 | |||||||||||||||||
Net Income | Assets | Net Income | Assets | Net Income | Assets | |||||||||||||||
Natural Gas Distribution | $ | 140,124 | $ | 4,030,686 | $ | 107,375 | $ | 3,707,461 | $ | 126,902 | $ | 3,531,477 | ||||||||
Clean Energy Ventures | 39,403 | 1,015,065 | 16,789 | 914,788 | 22,111 | 814,277 | ||||||||||||||
Energy Services | 69,650 | 333,064 | 58,957 | 365,423 | (11,008) | 244,836 | ||||||||||||||
Storage and Transportation | 26,598 | 999,520 | (67,787) | 862,407 | 18,311 | 844,799 | ||||||||||||||
Home Services and Other | (781) | 159,068 | (826) | 162,134 | 5,784 | 138,375 | ||||||||||||||
Intercompany (1) | (72) | (275,987) | 3,382 | (289,935) | 907 | (257,287) | ||||||||||||||
Total | $ | 274,922 | $ | 6,261,416 | $ | 117,890 | $ | 5,722,278 | $ | 163,007 | $ | 5,316,477 |
(Thousands, except per share data) | 2022 | 2021 | 2020 | ||||||||
Net income | $ | 274,922 | $ | 117,890 | $ | 163,007 | |||||
Add: | |||||||||||
Unrealized (gain) loss on derivative instruments and related transactions | (59,906) | 54,203 | (9,644) | ||||||||
Tax effect | 14,248 | (12,887) | 2,296 | ||||||||
Effects of economic hedging related to natural gas inventory (1) | 19,939 | (42,405) | 12,690 | ||||||||
Tax effect | (4,738) | 10,078 | (3,016) | ||||||||
(Gain on) impairment of equity method investment | (5,521) | 92,000 | — | ||||||||
Tax effect | 1,377 | (11,167) | — | ||||||||
Net financial earnings | $ | 240,321 | $ | 207,712 | $ | 165,333 | |||||
Basic earnings per share | $ | 2.86 | $ | 1.23 | $ | 1.72 | |||||
Add: | |||||||||||
Unrealized (gain) loss on derivative instruments and related transactions | (0.62) | 0.56 | (0.10) | ||||||||
Tax effect | 0.15 | (0.13) | 0.02 | ||||||||
Effects of economic hedging related to natural gas inventory (1) | 0.21 | (0.44) | 0.13 | ||||||||
Tax effect | (0.05) | 0.10 | (0.03) | ||||||||
(Gain on) impairment of equity method investment | (0.06) | 0.96 | — | ||||||||
Tax effect | 0.01 | (0.12) | — | ||||||||
Basic NFE per share | $ | 2.50 | $ | 2.16 | $ | 1.74 |
(Thousands) | 2022 | 2021 | 2020 | |||||||||||||||||||||||
Natural Gas Distribution | $ | 140,124 | 58 | % | $ | 107,375 | 52 | % | $ | 126,902 | 77 | % | ||||||||||||||
Clean Energy Ventures | 39,403 | 17 | 16,789 | 8 | 22,111 | 13 | ||||||||||||||||||||
Energy Services | 39,121 | 16 | 71,117 | 34 | (7,873) | (5) | ||||||||||||||||||||
Storage and Transportation | 22,454 | 9 | 13,046 | 6 | 18,311 | 11 | ||||||||||||||||||||
Home Services and Other | (781) | — | (826) | — | 5,784 | 4 | ||||||||||||||||||||
Eliminations (1) | — | — | 211 | — | 98 | — | ||||||||||||||||||||
Total | $ | 240,321 | 100 | % | $ | 207,712 | 100 | % | $ | 165,333 | 100 | % |
2022 | 2021 | 2020 | |||||||||
Firm customers | |||||||||||
Residential | 512,264 | 502,546 | 497,779 | ||||||||
Commercial, industrial & other | 31,227 | 30,615 | 28,735 | ||||||||
Residential transport | 17,316 | 21,882 | 22,420 | ||||||||
Commercial transport | 8,397 | 8,815 | 9,184 | ||||||||
Total firm customers | 569,204 | 563,858 | 558,118 | ||||||||
Other | 96 | 47 | 48 | ||||||||
Total customers | 569,300 | 563,905 | 558,166 |
(Thousands) | 2022 | 2021 | ||||||
Loans | $ | 152,000 | $ | 132,800 | ||||
Grants, rebates and related investments | 132,200 | 98,100 | ||||||
Total | $ | 284,200 | $ | 230,900 |
(Thousands) | 2022 | 2021 | 2020 | ||||||||
Weather (1) | $ | 22,263 | $ | 13,273 | $ | 17,882 | |||||
Usage | 2,032 | (1,852) | 292 | ||||||||
Total | $ | 24,295 | $ | 11,421 | $ | 18,174 |
(Thousands) | 2022 | 2021 | 2020 | ||||||||
Operating revenues (1) | $ | 1,128,767 | $ | 731,796 | $ | 729,923 | |||||
Operating expenses | |||||||||||
Natural gas purchases (2) (3) | 557,232 | 260,714 | 287,307 | ||||||||
Operation and maintenance | 198,546 | 203,740 | 162,792 | ||||||||
Regulatory rider expense (4) | 59,437 | 38,304 | 34,529 | ||||||||
Depreciation and amortization | 94,579 | 80,045 | 71,883 | ||||||||
Total operating expenses | 909,794 | 582,803 | 556,511 | ||||||||
Operating income | 218,973 | 148,993 | 173,412 | ||||||||
Other income, net | 7,686 | 13,841 | 11,486 | ||||||||
Interest expense, net of capitalized interest | 46,394 | 36,405 | 30,975 | ||||||||
Income tax provision | 40,141 | 19,054 | 27,021 | ||||||||
Net income | $ | 140,124 | $ | 107,375 | $ | 126,902 |
2022 v. 2021 | ||||||||
(Thousands) | Operating revenues | Natural gas purchases | ||||||
BGSS incentives | $ | 231,496 | $ | 225,324 | ||||
Base rate impact | 65,819 | — | ||||||
Average BGSS rates | 54,347 | 54,347 | ||||||
Bill credits | 20,590 | 20,590 | ||||||
CIP adjustments | 12,874 | — | ||||||
Firm sales | (11,040) | (4,199) | ||||||
Riders and other (1) | 22,885 | 456 | ||||||
Total increase (decrease) | $ | 396,971 | $ | 296,518 |
(Thousands) | 2022 | 2021 | 2020 | ||||||||
Operating revenues | $ | 1,128,767 | $ | 731,796 | $ | 729,923 | |||||
Less: | |||||||||||
Natural gas purchases | 557,232 | 260,714 | 287,307 | ||||||||
Operation and maintenance (1) | 93,164 | 110,364 | 88,883 | ||||||||
Regulatory rider expense | 59,437 | 38,304 | 34,529 | ||||||||
Depreciation and amortization | 94,579 | 80,045 | 71,883 | ||||||||
Gross margin | 324,355 | 242,369 | 247,321 | ||||||||
Add: | |||||||||||
Operation and maintenance (1) | 93,164 | 110,364 | 88,883 | ||||||||
Depreciation and amortization | 94,579 | 80,045 | 71,883 | ||||||||
Utility Gross Margin | $ | 512,098 | $ | 432,778 | $ | 408,087 |
2022 | 2021 | 2020 | ||||||||||||||||||||||||
($ in thousands) | Margin | Bcf | Margin | Bcf | Margin | Bcf | ||||||||||||||||||||
Utility Gross Margin/Throughput | ||||||||||||||||||||||||||
Residential | $ | 341,167 | 45.5 | $ | 288,723 | 46.2 | 275,033 | 44.6 | ||||||||||||||||||
Commercial, industrial and other | 77,629 | 8.7 | 64,950 | 8.6 | 57,929 | 8.2 | ||||||||||||||||||||
Firm transportation | 69,933 | 13.0 | 61,870 | 13.7 | 60,199 | 13.3 | ||||||||||||||||||||
Total utility firm gross margin/throughput | 488,729 | 67.2 | 415,543 | 68.5 | 393,161 | 66.1 | ||||||||||||||||||||
BGSS incentive programs | 19,587 | 95.2 | 13,415 | 101.3 | 9,471 | 118.4 | ||||||||||||||||||||
Interruptible/off-tariff agreements | 3,782 | 32.4 | 3,820 | 22.9 | 5,455 | 30.9 | ||||||||||||||||||||
Total Utility Gross Margin/Throughput | $ | 512,098 | 194.8 | $ | 432,778 | 192.7 | $ | 408,087 | 215.4 |
(Thousands) | 2022 v. 2021 | ||||||||||
Off-system sales | $ | 6,897 | |||||||||
Storage | 1,737 | ||||||||||
Capacity release | (2,462) | ||||||||||
Total increase | $ | 6,172 |
($ in Thousands) | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||
Placed in service | Projects | MW | Costs | Projects | MW | Costs | Projects | MW | Costs | ||||||||||||||||||||
Grid-connected (1) (2) | 3 | 14.0 | $ | 31,411 | 1 | 2.9 | $ | 3,433 | 9 | 60.1 | $ | 121,516 | |||||||||||||||||
Net-metered: | |||||||||||||||||||||||||||||
Commercial (1) | 2 | 1.0 | 2,440 | 1 | 2.7 | 5,576 | — | — | 43 | ||||||||||||||||||||
Residential | 360 | 3.9 | 11,544 | 421 | 4.8 | 13,885 | 481 | 5.9 | 17,474 | ||||||||||||||||||||
Total placed in service | 365 | 18.9 | $ | 45,395 | 423 | 10.4 | $ | 22,894 | 490 | 66.0 | $ | 139,033 |
2022 | 2021 | 2020 | |||||||||||||||||||||
SRECs | TRECs | SRECs | TRECs | SRECs | TRECs | ||||||||||||||||||
Inventory balance as of October 1, | 108,104 | 6,944 | 35,011 | 9,270 | 53,395 | — | |||||||||||||||||
RECs generated | 425,453 | (1) | 38,914 | 406,118 | 31,767 | 389,716 | 9,270 | ||||||||||||||||
RECs delivered | (417,305) | (35,099) | (333,025) | (34,093) | (408,100) | — | |||||||||||||||||
Inventory balance as of September 30, | 116,252 | 10,759 | 108,104 | 6,944 | 35,011 | 9,270 |
Energy Year (1) | Percent of SRECs Hedged | ||||
2023 | 98% | ||||
2024 | 98% | ||||
2025 | 89% | ||||
2026 | 29% | ||||
(Thousands) | 2022 | 2021 | 2020 | ||||||||
Operating revenues | $ | 128,280 | $ | 95,275 | $ | 102,617 | |||||
Operating expenses | |||||||||||
Operation and maintenance | 40,706 | 36,715 | 30,310 | ||||||||
Depreciation and amortization (1) | 21,396 | 20,567 | 25,329 | ||||||||
Total operating expenses (1) | 62,102 | 57,282 | 55,639 | ||||||||
Operating income (1) | 66,178 | 37,993 | 46,978 | ||||||||
Other income, net | 6,554 | 6,392 | 6,420 | ||||||||
Interest expense, net | 21,968 | 22,548 | 20,253 | ||||||||
Income tax provision (1) | 11,361 | 5,048 | 11,034 | ||||||||
Net income (1) | $ | 39,403 | $ | 16,789 | $ | 22,111 |
(Thousands) | 2022 | 2021 | 2020 | ||||||||
Operating revenues (1) | $ | 1,529,272 | $ | 1,228,420 | $ | 1,030,419 | |||||
Operating expenses | |||||||||||
Natural gas purchases (including demand charges (2)(3)) | 1,394,405 | 1,098,261 | 1,024,579 | ||||||||
Operation and maintenance | 39,080 | 50,885 | 17,368 | ||||||||
Depreciation and amortization | 148 | 111 | 123 | ||||||||
Total operating expenses | 1,433,633 | 1,149,257 | 1,042,070 | ||||||||
Operating income (loss) | 95,639 | 79,163 | (11,651) | ||||||||
Other income, net | 512 | 369 | 304 | ||||||||
Interest expense, net | 4,725 | 2,204 | 3,276 | ||||||||
Income tax provision (benefit) | 21,776 | 18,371 | (3,615) | ||||||||
Net income (loss) | $ | 69,650 | $ | 58,957 | $ | (11,008) |
(in Bcf) | 2022 | 2021 | 2020 | ||||||||
Net short futures and swaps contracts | 0.7 | 13.7 | 29.3 | ||||||||
(Thousands) | 2022 | 2021 | 2020 | ||||||||
Operating revenues | $ | 1,529,272 | $ | 1,228,420 | $ | 1,030,419 | |||||
Less: | |||||||||||
Natural gas purchases | 1,394,405 | 1,098,261 | 1,024,579 | ||||||||
Operation and maintenance (1) | 23,709 | 33,263 | 15,477 | ||||||||
Depreciation and amortization | 148 | 111 | 123 | ||||||||
Gross margin | 111,010 | 96,785 | (9,760) | ||||||||
Add: | |||||||||||
Operation and maintenance (1) | 23,709 | 33,263 | 15,477 | ||||||||
Depreciation and amortization | 148 | 111 | 123 | ||||||||
Unrealized (gain) loss on derivative instruments and related transactions (2) | (60,000) | 58,362 | (8,583) | ||||||||
Effects of economic hedging related to natural gas inventory (3) | 19,939 | (42,405) | 12,690 | ||||||||
Financial margin | $ | 94,806 | $ | 146,116 | $ | 9,947 |
(Thousands) | 2022 | 2021 | 2020 | ||||||||
Net income (loss) | $ | 69,650 | $ | 58,957 | $ | (11,008) | |||||
Add: | |||||||||||
Unrealized (gain) loss on derivative instruments and related transactions | (60,000) | 58,362 | (8,583) | ||||||||
Tax effect (1) | 14,270 | (13,875) | 2,044 | ||||||||
Effects of economic hedging related to natural gas inventory | 19,939 | (42,405) | 12,690 | ||||||||
Tax effect | (4,738) | 10,078 | (3,016) | ||||||||
Net financial earnings | $ | 39,121 | $ | 71,117 | $ | (7,873) |
(Thousands) | 2022 | 2021 | 2020 | ||||||||
Operating revenues (1) | $ | 67,735 | $ | 51,020 | $ | 44,728 | |||||
Operating expenses | |||||||||||
Natural gas purchases | 2,702 | 1,266 | 1,122 | ||||||||
Operation and maintenance | 30,568 | 29,135 | 21,862 | ||||||||
Depreciation and amortization | 12,302 | 9,960 | 9,293 | ||||||||
Total operating expenses | 45,572 | 40,361 | 32,277 | ||||||||
Operating income | 22,163 | 10,659 | 12,451 | ||||||||
Other income, net | 8,546 | 5,931 | 7,328 | ||||||||
Interest expense, net | 12,097 | 13,348 | 13,124 | ||||||||
Income tax provision (benefit) | 1,879 | (10,043) | 4,247 | ||||||||
Equity in earnings (loss) of affiliates | 9,865 | (81,072) | 15,903 | ||||||||
Net income (loss) | $ | 26,598 | $ | (67,787) | $ | 18,311 |
(Thousands) | 2022 | 2021 | 2020 | ||||||||
Net income (loss) | $ | 26,598 | $ | (67,787) | $ | 18,311 | |||||
Add: | |||||||||||
(Gain on) impairment of equity method investment | (5,521) | 92,000 | — | ||||||||
Tax effect | 1,377 | (11,167) | — | ||||||||
Net financial earnings | $ | 22,454 | $ | 13,046 | $ | 18,311 |
(Thousands) | 2022 | 2021 | 2020 | ||||||||
Operating revenues | $ | 56,182 | $ | 52,229 | $ | 51,017 | |||||
Income (loss) before income taxes | $ | 278 | $ | (1,022) | $ | 3,306 | |||||
Income tax provision (benefit) | $ | 1,059 | $ | (196) | $ | (2,478) | |||||
Net (loss) income | $ | (781) | $ | (826) | $ | 5,784 |
2022 | 2021 | |||||||
Common stock equity | 38 | % | 38 | % | ||||
Long-term debt | 52 | 51 | ||||||
Short-term debt | 10 | 11 | ||||||
Total | 100 | % | 100 | % |
Moody’s | Fitch | |||||||
Corporate Rating | N/A | A- | ||||||
Commercial Paper | P-2 | F-2 | ||||||
Senior Secured | A1 | A+ | ||||||
Ratings Outlook | Stable | Stable |
Balance | Increase | Less | Balance | |||||||||||||||||||||||
(Thousands) | September 30, 2021 | (Decrease) in Fair Market Value | Amounts Settled | September 30, 2022 | ||||||||||||||||||||||
Natural Gas Distribution | $ | 2,033 | $ | 30,584 | $ | 38,813 | $ | (6,196) | ||||||||||||||||||
Energy Services | (29,487) | (36,019) | (58,820) | (6,686) | ||||||||||||||||||||||
Total | $ | (27,454) | $ | (5,435) | $ | (20,007) | $ | (12,882) |
(Thousands) | 2023 | 2024 | 2025 - 2027 | After 2027 | Total Fair Value | |||||||||||||||||||||
Price based on NYMEX/CME | $ | (168) | $ | — | $ | — | $ | — | $ | (168) | ||||||||||||||||
Price based on ICE | (18,092) | 4,225 | 1,153 | — | (12,714) | |||||||||||||||||||||
Total | $ | (18,260) | $ | 4,225 | $ | 1,153 | $ | — | $ | (12,882) |
Volume Bcf | Price per MMBtu (1) | Amounts included in Derivatives (Thousands) | |||||||||||||||
Natural Gas Distribution | Futures | 30.5 | $2.62 - $15.00 | $ | (6,196) | ||||||||||||
Energy Services | Futures | (0.7) | $2.41 - $13.75 | (6,518) | |||||||||||||
Swaps | — | $2.82 - $3.03 | (168) | ||||||||||||||
Total | $ | (12,882) |
Derivative Fair Value Sensitivity Analysis | |||||||||||||||||
(Thousands) | Henry Hub Futures and Fixed Price Swaps | ||||||||||||||||
Percent increase in NYMEX natural gas futures prices | 0% | 5% | 10% | 15% | 20% | ||||||||||||
Estimated change in derivative fair value | $ | — | $ | (3,266) | $ | (6,532) | $ | (9,798) | $ | (13,064) | |||||||
Ending derivative fair value | $ | 5,826 | $ | 2,560 | $ | (706) | $ | (3,972) | $ | (7,238) | |||||||
Percent decrease in NYMEX natural gas futures prices | 0% | (5)% | (10)% | (15)% | (20)% | ||||||||||||
Estimated change in derivative fair value | $ | — | $ | 3,266 | $ | 6,532 | $ | 9,798 | $ | 13,064 | |||||||
Ending derivative fair value | $ | 5,826 | $ | 9,092 | $ | 12,358 | $ | 15,624 | $ | 18,890 |
(Thousands) | Gross Credit Exposure | Net Credit Exposure | ||||||||||||
Investment grade | $ | 161,677 | $ | 137,934 | ||||||||||
Noninvestment grade | 29,771 | 1,319 | ||||||||||||
Internally-rated investment grade | 17,041 | 14,767 | ||||||||||||
Internally-rated noninvestment grade | 23,567 | 13,724 | ||||||||||||
Total | $ | 232,056 | $ | 167,744 |
(Thousands) | Gross Credit Exposure | Net Credit Exposure | ||||||||||||
Investment grade | $ | 20,461 | $ | 19,959 | ||||||||||
Noninvestment grade | 334 | — | ||||||||||||
Internally-rated investment grade | 72 | 17 | ||||||||||||
Internally-rated noninvestment grade | 22,024 | — | ||||||||||||
Total | $ | 42,891 | $ | 19,976 |
(Thousands, except per share data) | |||||||||||
Fiscal years ended September 30, | 2022 | 2021 | 2020 | ||||||||
OPERATING REVENUES | |||||||||||
Utility | $ | 1,127,417 | $ | 731,459 | $ | 729,923 | |||||
Nonutility | 1,778,562 | 1,425,154 | 1,223,745 | ||||||||
Total operating revenues | 2,905,979 | 2,156,613 | 1,953,668 | ||||||||
OPERATING EXPENSES | |||||||||||
Natural gas purchases: | |||||||||||
Utility | 547,901 | 247,734 | 275,831 | ||||||||
Nonutility | 1,393,656 | 1,096,920 | 1,022,805 | ||||||||
Related parties | 7,395 | 7,013 | 6,083 | ||||||||
Operation and maintenance | 361,866 | 366,905 | 278,143 | ||||||||
Regulatory rider expenses | 59,437 | 38,304 | 34,529 | ||||||||
Depreciation and amortization | 129,249 | 111,387 | 107,368 | ||||||||
Total operating expenses | 2,499,504 | 1,868,263 | 1,724,759 | ||||||||
OPERATING INCOME | 406,475 | 288,350 | 228,909 | ||||||||
Other income, net | 22,295 | 24,597 | 23,878 | ||||||||
Interest expense, net of capitalized interest | 85,830 | 78,559 | 67,597 | ||||||||
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES | 342,940 | 234,388 | 185,190 | ||||||||
Income tax provision | 76,195 | 33,286 | 36,494 | ||||||||
Equity in earnings (loss) of affiliates | 8,177 | (83,212) | 14,311 | ||||||||
NET INCOME | $ | 274,922 | $ | 117,890 | $ | 163,007 | |||||
EARNINGS PER COMMON SHARE | |||||||||||
Basic | $2.86 | $1.23 | $1.72 | ||||||||
Diluted | $2.85 | $1.22 | $1.71 | ||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING | |||||||||||
Basic | 96,100 | 96,227 | 94,798 | ||||||||
Diluted | 96,488 | 96,560 | 95,103 |
(Thousands) | |||||||||||
Fiscal years ended September 30, | 2022 | 2021 | 2020 | ||||||||
Net income | $ | 274,922 | $ | 117,890 | $ | 163,007 | |||||
Other comprehensive income (loss), net of tax: | |||||||||||
Reclassifications of losses to net income on derivatives designated as hedging instruments, net of tax of $(317), $(350) and $(32), respectively | 1,054 | 1,021 | 108 | ||||||||
Loss on derivatives designated as hedging instruments, net of tax of $0, $0 and $3,203, respectively | — | — | (10,505) | ||||||||
Adjustment to postemployment benefit obligation, net of tax of $(8,657), $(2,575) and $567, respectively | 28,648 | 8,766 | (2,131) | ||||||||
Other comprehensive income (loss) | 29,702 | 9,787 | (12,528) | ||||||||
Comprehensive income | $ | 304,624 | $ | 127,677 | $ | 150,479 |
(Thousands) | |||||||||||||||||
Fiscal years ended September 30, | 2022 | 2021 | 2020 | ||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||
Net income | $ | 274,922 | $ | 117,890 | $ | 163,007 | |||||||||||
Adjustments to reconcile net income to cash flows from operating activities | |||||||||||||||||
Unrealized (gain) loss on derivative instruments | (59,906) | 54,203 | (9,644) | ||||||||||||||
Impairment of equity method investment | — | 92,000 | — | ||||||||||||||
Depreciation and amortization | 129,249 | 111,387 | 107,368 | ||||||||||||||
Amortization of acquired wholesale energy contracts | 2,561 | 4,604 | 4,924 | ||||||||||||||
Allowance for equity used during construction | (11,243) | (20,303) | (17,053) | ||||||||||||||
Allowance for doubtful accounts | 2,401 | 18,986 | 2,238 | ||||||||||||||
Non-cash lease expense | 4,850 | 3,920 | 3,851 | ||||||||||||||
Deferred income taxes | 81,659 | 23,796 | 34,346 | ||||||||||||||
Equivalent value of ITCs recognized on equipment financing | (7,542) | (6,482) | (6,482) | ||||||||||||||
Manufactured gas plant remediation costs | (17,538) | (17,532) | (7,651) | ||||||||||||||
Equity in earnings, net of distributions received from equity investees | — | (3,046) | (5,848) | ||||||||||||||
Cost of removal - asset retirement obligations | (1,289) | (1,129) | (245) | ||||||||||||||
Contributions to postemployment benefit plans | (6,785) | (7,669) | (9,032) | ||||||||||||||
Taxes related to stock-based compensation | (144) | (159) | 647 | ||||||||||||||
Changes in: | |||||||||||||||||
Components of working capital | (77,687) | 10,254 | (8,096) | ||||||||||||||
Other noncurrent assets | (38,424) | 13,715 | (44,129) | ||||||||||||||
Other noncurrent liabilities | 48,396 | (3,481) | 5,280 | ||||||||||||||
Cash flows from operating activities | 323,480 | 390,954 | 213,481 | ||||||||||||||
CASH FLOWS USED IN INVESTING ACTIVITIES | |||||||||||||||||
Expenditures for: | |||||||||||||||||
Utility plant | (259,081) | (376,312) | (290,040) | ||||||||||||||
Solar equipment | (146,676) | (87,852) | (133,841) | ||||||||||||||
Storage and Transportation and other | (153,378) | (110,130) | (24,228) | ||||||||||||||
Cost of removal | (39,293) | (50,316) | (22,059) | ||||||||||||||
Acquisition of assets, net of cash acquired of $5.1 million | — | — | (523,647) | ||||||||||||||
Distribution from equity investees in excess of equity in earnings | 2,336 | 3,183 | 1,907 | ||||||||||||||
Investments in equity investees, net of return of capital | 5,479 | (690) | (2,117) | ||||||||||||||
Cash flows used in investing activities | (590,613) | (622,117) | (994,025) | ||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||
Proceeds from long-term debt | 360,000 | — | 660,000 | ||||||||||||||
Payments of long-term debt | (68,343) | (18,007) | (20,286) | ||||||||||||||
Proceeds from term loan | 150,000 | — | 350,000 | ||||||||||||||
Payments of term loan | — | — | (350,000) | ||||||||||||||
(Payments of) proceeds from short-term debt, net | (103,350) | 251,950 | 99,900 | ||||||||||||||
Proceeds from sale leaseback transactions - solar | 24,071 | 17,673 | 42,927 | ||||||||||||||
Proceeds from sale leaseback transactions - natural gas meters | 17,300 | — | 4,000 | ||||||||||||||
Payments of common stock dividends | (127,704) | (116,960) | (117,804) | ||||||||||||||
Proceeds from equity offering | — | — | 212,900 | ||||||||||||||
Cash settlement of equity forward agreement | — | (2,823) | — | ||||||||||||||
Proceeds from issuance of common stock - DRP | 14,745 | 15,105 | 18,080 | ||||||||||||||
Purchases of treasury stock | — | (27,217) | — | ||||||||||||||
Tax withholding payments related to net settled stock compensation | (4,177) | (1,938) | (3,813) | ||||||||||||||
Cash flows from financing activities | 262,542 | 117,783 | 895,904 | ||||||||||||||
Change in cash, cash equivalents and restricted cash | (4,591) | (113,380) | 115,360 | ||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 6,043 | 119,423 | 4,063 | ||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 1,452 | $ | 6,043 | $ | 119,423 | |||||||||||
CHANGES IN COMPONENTS OF WORKING CAPITAL | |||||||||||||||||
Receivables | $ | (16,658) | $ | (81,366) | $ | 5,065 | |||||||||||
Inventories | (80,801) | (25,257) | (3,254) | ||||||||||||||
Recovery of natural gas costs | 1,037 | (13,124) | 17,479 | ||||||||||||||
Natural gas purchases payable | 66,352 | 72,752 | (41,326) | ||||||||||||||
Natural gas purchases payable - related parties | (10) | 70 | 1 | ||||||||||||||
Deferred revenue | 33,802 | (1,763) | 1,922 | ||||||||||||||
Accounts payable and other | (34,259) | 31,826 | 18,468 | ||||||||||||||
Prepaid expenses | (406) | (1,527) | 2,548 | ||||||||||||||
Prepaid and accrued taxes | (1,516) | (3,449) | (2,376) | ||||||||||||||
Restricted broker margin accounts | (51,165) | 28,013 | (6,097) | ||||||||||||||
Customers’ credit balances and deposits | 660 | 6,652 | (1,182) | ||||||||||||||
Other current assets (liabilities) | 5,277 | (2,573) | 656 | ||||||||||||||
Total | $ | (77,687) | $ | 10,254 | $ | (8,096) | |||||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION | |||||||||||||||||
Cash paid for: | |||||||||||||||||
Interest (net of amounts capitalized) | $ | 84,375 | $ | 78,650 | $ | 66,146 | |||||||||||
Income taxes | $ | 4,252 | $ | 6,381 | $ | 7,594 | |||||||||||
Accrued capital expenditures | $ | 34,674 | $ | 64,626 | $ | 19,434 | |||||||||||
See Notes to Consolidated Financial Statements |
(Thousands) | ||||||||
September 30, | 2022 | 2021 | ||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||
Utility plant, at cost | $ | 3,576,691 | $ | 3,324,611 | ||||
Construction work in progress | 162,087 | 182,196 | ||||||
Nonutility plant and equipment, at cost | 1,577,259 | 1,124,896 | ||||||
Construction work in progress | 199,679 | 365,346 | ||||||
Total property, plant and equipment | 5,515,716 | 4,997,049 | ||||||
Accumulated depreciation and amortization, utility plant | (659,737) | (611,827) | ||||||
Accumulated depreciation and amortization, nonutility plant and equipment | (206,053) | (171,709) | ||||||
Property, plant and equipment, net | 4,649,926 | 4,213,513 | ||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | 1,107 | 4,749 | ||||||
Customer accounts receivable: | ||||||||
Billed | 222,297 | 212,838 | ||||||
Unbilled revenues | 13,769 | 10,351 | ||||||
Allowance for doubtful accounts | (19,379) | (24,652) | ||||||
Regulatory assets | 40,086 | 30,118 | ||||||
Natural gas in storage, at average cost | 273,644 | 193,606 | ||||||
Materials and supplies, at average cost | 20,324 | 19,561 | ||||||
Prepaid expenses | 8,572 | 8,166 | ||||||
Prepaid and accrued taxes | 54,501 | 51,211 | ||||||
Derivatives, at fair value | 24,635 | 35,251 | ||||||
Restricted broker margin accounts | 94,261 | 72,840 | ||||||
Other current assets | 22,270 | 20,235 | ||||||
Total current assets | 756,087 | 634,274 | ||||||
NONCURRENT ASSETS | ||||||||
Investments in equity method investees | 106,571 | 114,529 | ||||||
Regulatory assets | 500,666 | 522,099 | ||||||
Operating lease assets | 168,520 | 173,928 | ||||||
Derivatives, at fair value | 6,385 | 3,403 | ||||||
Intangible assets, net | 2,348 | 5,029 | ||||||
Software costs | 6,120 | 5,582 | ||||||
Other noncurrent assets | 64,793 | 49,921 | ||||||
Total noncurrent assets | 855,403 | 874,491 | ||||||
Total assets | $ | 6,261,416 | $ | 5,722,278 |
(Thousands, except share data) | ||||||||
September 30, | 2022 | 2021 | ||||||
CAPITALIZATION | ||||||||
Common stock, $2.50 par value; authorized 150,000,000 shares; outstanding shares September 30, 2022 — 96,249,859; September 30, 2021 — 95,709,662 | $ | 241,616 | $ | 240,644 | ||||
Premium on common stock | 519,697 | 502,584 | ||||||
Accumulated other comprehensive loss, net of tax | (4,826) | (34,528) | ||||||
Treasury stock at cost and other; shares September 30, 2022 — 611,045; September 30, 2021 — 762,313 | (6,805) | (12,448) | ||||||
Retained earnings | 1,067,528 | 934,610 | ||||||
Common stock equity | 1,817,210 | 1,630,862 | ||||||
Long-term debt | 2,485,402 | 2,162,164 | ||||||
Total capitalization | 4,302,612 | 3,793,026 | ||||||
CURRENT LIABILITIES | ||||||||
Current maturities of long-term debt | 75,069 | 72,840 | ||||||
Short-term debt | 423,950 | 377,300 | ||||||
Natural gas purchases payable | 235,049 | 168,697 | ||||||
Natural gas purchases payable to related parties | 851 | 861 | ||||||
Deferred revenue | 35,547 | 1,745 | ||||||
Accounts payable and other | 156,580 | 223,497 | ||||||
Dividends payable | 37,534 | 34,768 | ||||||
Accrued taxes | 5,130 | 3,356 | ||||||
Regulatory liabilities | 31,090 | 28,007 | ||||||
New Jersey Clean Energy Program | 15,697 | 16,308 | ||||||
Derivatives, at fair value | 49,848 | 87,145 | ||||||
Operating lease liabilities | 4,562 | 4,300 | ||||||
Customers’ credit balances and deposits | 33,246 | 32,586 | ||||||
Total current liabilities | 1,104,153 | 1,051,410 | ||||||
NONCURRENT LIABILITIES | ||||||||
Deferred income taxes | 238,928 | 163,530 | ||||||
Deferred investment tax credits | 2,710 | 3,010 | ||||||
Deferred revenue | 753 | 847 | ||||||
Derivatives, at fair value | 14,191 | 13,497 | ||||||
Manufactured gas plant remediation | 127,060 | 135,012 | ||||||
Postemployment employee benefit liability | 82,867 | 169,267 | ||||||
Regulatory liabilities | 185,634 | 193,051 | ||||||
Operating lease liabilities | 138,382 | 141,363 | ||||||
Asset retirement obligation | 55,035 | 46,306 | ||||||
Other noncurrent liabilities | 9,091 | 11,959 | ||||||
Total noncurrent liabilities | 854,651 | 877,842 | ||||||
Commitments and contingent liabilities (Note 15) | ||||||||
Total capitalization and liabilities | $ | 6,261,416 | $ | 5,722,278 |
(Thousands) | Number of Shares | Common Stock | Premium on Common Stock | Accumulated Other Comprehensive (Loss) Income | Treasury Stock And Other | Retained Earnings | Total | ||||||||||||||||||||||
Balance at September 30, 2019 | 89,999 | $ | 226,649 | $ | 291,331 | $ | (31,787) | $ | (10,436) | $ | 906,076 | $ | 1,381,833 | ||||||||||||||||
Net income | — | — | — | — | — | 163,007 | 163,007 | ||||||||||||||||||||||
Other comprehensive loss | — | — | — | (12,528) | — | — | (12,528) | ||||||||||||||||||||||
Common stock issued: | |||||||||||||||||||||||||||||
Common stock offering | 5,333 | 13,333 | 199,567 | — | — | — | 212,900 | ||||||||||||||||||||||
Incentive compensation plan | 105 | 261 | 3,511 | — | — | — | 3,772 | ||||||||||||||||||||||
Dividend reinvestment plan (1) | 520 | — | 2,833 | — | 15,324 | — | 18,157 | ||||||||||||||||||||||
Cash dividend declared ($1.27 per share) | — | — | — | — | — | (121,582) | (121,582) | ||||||||||||||||||||||
Treasury stock and other | (8) | — | (5,260) | — | 3,597 | — | (1,663) | ||||||||||||||||||||||
Balance at September 30, 2020 | 95,949 | 240,243 | 491,982 | (44,315) | 8,485 | 947,501 | 1,643,896 | ||||||||||||||||||||||
Net income | — | — | — | — | — | 117,890 | 117,890 | ||||||||||||||||||||||
Other comprehensive income | — | — | — | 9,787 | — | — | 9,787 | ||||||||||||||||||||||
Common stock issued: | |||||||||||||||||||||||||||||
Common stock offering | — | — | (2,823) | — | — | — | (2,823) | ||||||||||||||||||||||
Incentive compensation plan | 84 | 210 | 4,053 | — | — | — | 4,263 | ||||||||||||||||||||||
Dividend reinvestment plan (1) | 431 | 191 | 9,372 | — | 5,593 | — | 15,156 | ||||||||||||||||||||||
Cash dividend declared ($1.36 per share) | — | — | — | — | — | (130,781) | (130,781) | ||||||||||||||||||||||
Treasury stock and other | (754) | — | — | — | (26,526) | — | (26,526) | ||||||||||||||||||||||
Balance at September 30, 2021 | 95,710 | 240,644 | 502,584 | (34,528) | (12,448) | 934,610 | 1,630,862 | ||||||||||||||||||||||
Net income | — | — | — | — | — | 274,922 | 274,922 | ||||||||||||||||||||||
Other comprehensive income | — | — | — | 29,702 | — | — | 29,702 | ||||||||||||||||||||||
Common stock issued: | |||||||||||||||||||||||||||||
Incentive compensation plan | 193 | 481 | 8,665 | — | — | — | 9,146 | ||||||||||||||||||||||
Dividend reinvestment plan (1) | 355 | 491 | 8,450 | — | 5,800 | — | 14,741 | ||||||||||||||||||||||
Cash dividend declared ($1.4775 per share) | — | — | — | — | — | (142,004) | (142,004) | ||||||||||||||||||||||
Treasury stock and other | (8) | — | (2) | — | (157) | — | (159) | ||||||||||||||||||||||
Balance at September 30, 2022 | 96,250 | $ | 241,616 | $ | 519,697 | $ | (4,826) | $ | (6,805) | $ | 1,067,528 | $ | 1,817,210 |
(Millions) | 2022 | 2021 | 2020 | ||||||||
Energy Services | $ | 95.4 | $ | 120.5 | $ | 121.8 | |||||
Natural Gas Distribution | 170.3 | 123.2 | 131.9 | ||||||||
Total | $ | 265.7 | $ | 243.7 | $ | 253.7 |
(Thousands) | Estimated | |||||||||||||
Property Classifications | Useful Lives | 2022 | 2021 | |||||||||||
Distribution facilities | 10 to 54 years | $ | 2,797,936 | $ | 2,558,651 | |||||||||
Transmission facilities | 28 to 42 years | 649,241 | 643,942 | |||||||||||
Storage facilities | 35 to 86 years | 85,449 | 79,892 | |||||||||||
Solar property | 20 to 35 years | 710,224 | 675,376 | |||||||||||
Storage and transportation property | 5 to 50 years | 850,186 | 433,678 | |||||||||||
All other property | 5 to 40 years | 60,914 | 57,968 | |||||||||||
Construction work in progress | 361,766 | 547,542 | ||||||||||||
Total property, plant and equipment | 5,515,716 | 4,997,049 | ||||||||||||
Accumulated depreciation and amortization | (865,790) | (783,536) | ||||||||||||
Property, plant and equipment, net | $ | 4,649,926 | $ | 4,213,513 |
($ in thousands) | 2022 | 2021 | 2020 | |||||||||||||||||
AFUDC: | NJNG | Adelphia Gateway | NJNG | Adelphia Gateway | NJNG | Adelphia Gateway | ||||||||||||||
Debt | $ | 1,648 | $ | 4,019 | $ | 5,648 | $ | 2,101 | $ | 5,134 | $ | 1,394 | ||||||||
Equity | 4,169 | 7,074 | 16,605 | 3,698 | 14,599 | 2,454 | ||||||||||||||
Total | $ | 5,817 | $ | 11,093 | $ | 22,253 | $ | 5,799 | $ | 19,733 | $ | 3,848 | ||||||||
Weighted average interest rate | 4.91 | % | 8.28 | % | 5.97 | % | 8.28 | % | 6.79 | % | 8.28 | % |
(Thousands) | 2022 | 2021 | 2020 | ||||||||
Balance Sheet | |||||||||||
Cash and cash equivalents | $ | 1,107 | $ | 4,749 | $ | 117,012 | |||||
Restricted cash in other noncurrent assets | $ | 345 | $ | 1,294 | $ | 2,411 | |||||
Statements of Cash Flow | |||||||||||
Cash, cash equivalents and restricted cash | $ | 1,452 | $ | 6,043 | $ | 119,423 |
2022 | 2021 | |||||||||||||||||||
($ in thousands) | Natural Gas in Storage | Bcf | Natural Gas in Storage | Bcf | ||||||||||||||||
Natural Gas Distribution | $ | 191,175 | 29.0 | $ | 115,824 | 27.6 | ||||||||||||||
Energy Services | 82,469 | 10.8 | 77,782 | 18.8 | ||||||||||||||||
Total | $ | 273,644 | 39.8 | $ | 193,606 | 46.4 |
(Thousands) | 2022 | 2021 | ||||||
Balance Sheets | ||||||||
Utility plant, at cost | $ | 40,437 | $ | 16,543 | ||||
Construction work in progress | $ | 14,381 | $ | 7,801 | ||||
Nonutility plant and equipment, at cost | $ | 344 | $ | 338 | ||||
Construction work in progress | $ | — | $ | 8 | ||||
Accumulated depreciation and amortization, utility plant | $ | (3,361) | $ | (1,333) | ||||
Accumulated depreciation and amortization, nonutility plant and equipment | $ | (25) | $ | (29) | ||||
Software costs | $ | 6,120 | $ | 5,582 | ||||
Statements of Operations | ||||||||
Operation and maintenance (1) | $ | 11,141 | $ | 9,141 | ||||
Depreciation and amortization | $ | 2,024 | $ | 1,078 | ||||
(Thousands) | |||||
2023 | $ | 2,271 | |||
2024 | $ | 77 | |||
2025 | $ | — | |||
2026 | $ | — | |||
2027 | $ | — |
(Thousands) | Cash Flow Hedges | Postemployment Benefit Obligation | Total | ||||||||||||||
Balance at September 30, 2020 | $ | (10,397) | $ | (33,918) | $ | (44,315) | |||||||||||
Other comprehensive income, net of tax | |||||||||||||||||
Other comprehensive income, before reclassifications, net of tax of $0, $(1,618) and $(1,618), respectively | — | 5,494 | 5,494 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $(350), $(957) and $(1,307), respectively | 1,021 | 3,272 | (1) | 4,293 | |||||||||||||
Net current-period other comprehensive income, net of tax of $(350), $(2,575) and $(2,925), respectively | 1,021 | 8,766 | 9,787 | ||||||||||||||
Balance at September 30, 2021 | $ | (9,376) | $ | (25,152) | $ | (34,528) | |||||||||||
Other comprehensive income, net of tax | |||||||||||||||||
Other comprehensive income, before reclassifications, net of tax of $0, $(7,727) and $(7,727), respectively | — | 25,580 | 25,580 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $(317), $(930) and $(1,247), respectively | 1,054 | 3,068 | (1) | 4,122 | |||||||||||||
Net current-period other comprehensive income, net of tax of $(317), $(8,657) and $(8,974), respectively | 1,054 | 28,648 | 29,702 | ||||||||||||||
Balance at September 30, 2022 | $ | (8,322) | $ | 3,496 | $ | (4,826) |
Revenue Recognized Over Time: | ||||||||
Segment/ Operations | Performance Obligation | Description | ||||||
Natural Gas Distribution | Natural gas utility sales | NJNG’s performance obligation is to provide natural gas to residential, commercial and industrial customers as demanded, based on regulated tariff rates, which are established by the BPU. Revenues from the sale of natural gas are recognized in the period that 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. | ||||||
Clean Energy Ventures | Commercial solar electricity | Clean Energy Ventures 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/ Operations | Performance Obligation | Description | ||||||
Clean Energy Ventures | Residential solar electricity | Clean Energy Ventures provides access to residential rooftop and ground-mount solar equipment to customers who then pay the Company a monthly fee. The performance obligation is to provide electricity to the customer based on generation from the underlying residential solar asset and is satisfied upon transfer of electricity generated. Revenue is derived from the contract terms and is recognized as invoiced, with the payment due each month for the previous month's services. | ||||||
Clean Energy Ventures | Transition renewable energy certificates | Clean Energy Ventures generates TRECs, which are created for every MWh of electricity produced by a solar generator. The performance obligation of Clean Energy Ventures is to generate electricity and TRECs, which are purchased monthly by a REC Administrator. Revenue is recognized upon generation. | ||||||
Energy Services | Natural gas services | The performance obligation of Energy Services is to provide the customer transportation, storage and asset management services on an as-needed basis. Energy Services generates revenue through management fees, demand charges, reservation fees and transportation charges centered around the buying and selling of the natural gas commodity, representing one series of distinct performance obligations. Revenue is recognized based upon the underlying natural gas quantities physically delivered and the customer obtaining control. Energy Services invoices customers 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. | ||||||
Storage and Transportation | Natural gas services | The performance obligation of Storage and Transportation is to provide the customer with storage and transportation services. Storage and Transportation 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. | ||||||
Home Services and Other | Service contracts | Home Services enters into service contracts with homeowners to provide maintenance and replacement services of applicable heating, cooling or ventilation equipment. 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: | ||||||||
Energy Services | Natural gas services | For a permanent release of pipeline capacity, the performance obligation of Energy Services 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. | ||||||
Storage and Transportation | Natural gas services | The performance obligation of Storage and Transportation is to provide the customer with storage and transportation services. Storage and Transportation 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. | ||||||
Home Services and Other | 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. |
(Thousands) | Natural Gas Distribution | Clean Energy Ventures | Energy Services | Storage and Transportation | Home Services and Other | Total | |||||||||||||||||
2022 | |||||||||||||||||||||||
Natural gas utility sales (1) | $ | 951,626 | — | — | — | — | $ | 951,626 | |||||||||||||||
Natural gas services | — | — | 83,801 | 67,735 | — | 151,536 | |||||||||||||||||
Service contracts | — | — | — | — | 33,932 | 33,932 | |||||||||||||||||
Installations and maintenance | — | — | — | — | 22,250 | 22,250 | |||||||||||||||||
Renewable energy certificates | — | 5,487 | — | — | — | 5,487 | |||||||||||||||||
Electricity sales | — | 38,317 | — | — | — | 38,317 | |||||||||||||||||
Eliminations (1) | (1,350) | — | — | (2,449) | (364) | (4,163) | |||||||||||||||||
Revenues from contracts with customers | 950,276 | 43,804 | 83,801 | 65,286 | 55,818 | 1,198,985 | |||||||||||||||||
Alternative revenue programs (3) | 11,259 | — | — | — | — | 11,259 | |||||||||||||||||
Derivative instruments | 165,882 | 84,476 | (4) | 1,445,471 | — | — | 1,695,829 | ||||||||||||||||
Eliminations (2) | — | — | (94) | — | — | (94) | |||||||||||||||||
Revenues out of scope | 177,141 | 84,476 | 1,445,377 | — | — | 1,706,994 | |||||||||||||||||
Total operating revenues | $ | 1,127,417 | 128,280 | 1,529,178 | 65,286 | 55,818 | $ | 2,905,979 | |||||||||||||||
2021 | |||||||||||||||||||||||
Natural gas utility sales (1) | $ | 694,635 | — | — | — | — | $ | 694,635 | |||||||||||||||
Natural gas services | — | — | 26,933 | 51,020 | — | 77,953 | |||||||||||||||||
Service contracts | — | — | — | — | 33,250 | 33,250 | |||||||||||||||||
Installations and maintenance | — | — | — | — | 18,979 | 18,979 | |||||||||||||||||
Renewable energy certificates | — | 4,571 | — | — | — | 4,571 | |||||||||||||||||
Electricity sales | — | 25,270 | — | — | — | 25,270 | |||||||||||||||||
Eliminations (2) | — | — | — | (1,768) | (785) | (2,553) | |||||||||||||||||
Revenues from contracts with customers | 694,635 | 29,841 | 26,933 | 49,252 | 51,444 | 852,105 | |||||||||||||||||
Alternative revenue programs (3) | (7,282) | — | — | — | — | (7,282) | |||||||||||||||||
Derivative instruments | 44,443 | 65,434 | (4) | 1,201,487 | — | — | 1,311,364 | ||||||||||||||||
Eliminations (2) | — | — | 426 | — | — | 426 | |||||||||||||||||
Revenues out of scope | 37,161 | 65,434 | 1,201,913 | — | — | 1,304,508 | |||||||||||||||||
Total operating revenues | $ | 731,796 | 95,275 | 1,228,846 | 49,252 | 51,444 | $ | 2,156,613 | |||||||||||||||
2020 | |||||||||||||||||||||||
Natural gas utility sales | $ | 695,858 | — | — | — | — | 695,858 | ||||||||||||||||
Natural gas services | — | — | 24,511 | 44,728 | — | 69,239 | |||||||||||||||||
Service contracts | — | — | — | — | 32,455 | 32,455 | |||||||||||||||||
Installations and maintenance | — | — | — | — | 18,562 | 18,562 | |||||||||||||||||
Renewable energy certificates | — | 1,384 | — | — | — | 1,384 | |||||||||||||||||
Electricity sales | — | 20,099 | — | — | — | 20,099 | |||||||||||||||||
Eliminations (2) | — | — | — | (2,713) | (1,207) | (3,920) | |||||||||||||||||
Revenues from contracts with customers | 695,858 | 21,483 | 24,511 | 42,015 | 49,810 | 833,677 | |||||||||||||||||
Alternative revenue programs (3) | 15,750 | — | — | — | — | 15,750 | |||||||||||||||||
Derivative instruments | 18,315 | 81,134 | (4) | 1,005,908 | — | — | 1,105,357 | ||||||||||||||||
Eliminations (2) | — | — | (1,116) | — | — | (1,116) | |||||||||||||||||
Revenues out of scope | 34,065 | 81,134 | 1,004,792 | — | — | 1,119,991 | |||||||||||||||||
Total operating revenues | $ | 729,923 | 102,617 | 1,029,303 | 42,015 | 49,810 | 1,953,668 |
(Thousands) | Natural Gas Distribution | Clean Energy Ventures | Energy Services | Storage and Transportation | Home Services and Other | Total | ||||||||||||||
2022 | ||||||||||||||||||||
Residential | $ | 586,678 | 12,579 | — | — | 55,629 | $ | 654,886 | ||||||||||||
Commercial and industrial | 265,970 | 31,225 | 83,801 | 65,286 | 189 | 446,471 | ||||||||||||||
Firm transportation | 92,531 | — | — | — | — | 92,531 | ||||||||||||||
Interruptible and off-tariff | 5,097 | — | — | — | — | 5,097 | ||||||||||||||
Revenues out of scope | 177,141 | 84,476 | 1,445,377 | — | — | 1,706,994 | ||||||||||||||
Total operating revenues | $ | 1,127,417 | 128,280 | 1,529,178 | 65,286 | 55,818 | $ | 2,905,979 | ||||||||||||
2021 | ||||||||||||||||||||
Residential | $ | 487,018 | 11,319 | — | — | 50,689 | $ | 549,026 | ||||||||||||
Commercial and industrial | 124,519 | 18,522 | 26,933 | 49,252 | 755 | 219,981 | ||||||||||||||
Firm transportation | 79,256 | — | — | — | — | 79,256 | ||||||||||||||
Interruptible and off-tariff | 3,842 | — | — | — | — | 3,842 | ||||||||||||||
Revenues out of scope | 37,161 | 65,434 | 1,201,913 | — | — | 1,304,508 | ||||||||||||||
Total operating revenues | $ | 731,796 | 95,275 | 1,228,846 | 49,252 | 51,444 | $ | 2,156,613 | ||||||||||||
2020 | ||||||||||||||||||||
Residential | $ | 490,233 | 10,233 | — | — | 48,867 | $ | 549,333 | ||||||||||||
Commercial and industrial | 129,946 | 11,250 | 24,511 | 42,015 | 943 | 208,665 | ||||||||||||||
Firm transportation | 69,357 | — | — | — | — | 69,357 | ||||||||||||||
Interruptible and off-tariff | 6,322 | — | — | — | — | 6,322 | ||||||||||||||
Revenues out of scope | 34,065 | 81,134 | 1,004,792 | — | — | 1,119,991 | ||||||||||||||
Total operating revenues | $ | 729,923 | 102,617 | 1,029,303 | 42,015 | 49,810 | $ | 1,953,668 |
Customer Accounts Receivable | Customers' Credit | ||||||||||
(Thousands) | Billed | Unbilled | Balances and Deposits | ||||||||
Balance as of September 30, 2020 | $ | 134,173 | $ | 9,226 | $ | 25,934 | |||||
Increase | 78,665 | 1,125 | 6,652 | ||||||||
Balance as of September 30, 2021 | 212,838 | 10,351 | 32,586 | ||||||||
Increase | 9,459 | 3,418 | 660 | ||||||||
Balance as of September 30, 2022 | $ | 222,297 | $ | 13,769 | $ | 33,246 |
(Thousands) | Natural Gas Distribution | Clean Energy Ventures | Energy Services | Storage and Transportation | Home Services and Other | Total | ||||||||||||||
2022 | ||||||||||||||||||||
Customer accounts receivable | ||||||||||||||||||||
Billed | $ | 78,508 | 5,566 | 129,199 | 7,012 | 2,012 | $ | 222,297 | ||||||||||||
Unbilled | 10,814 | 2,955 | — | — | — | 13,769 | ||||||||||||||
Customers’ credit balances and deposits | (33,246) | — | — | — | — | (33,246) | ||||||||||||||
Total | $ | 56,076 | 8,521 | 129,199 | 7,012 | 2,012 | $ | 202,820 | ||||||||||||
2021 | ||||||||||||||||||||
Customer accounts receivable | ||||||||||||||||||||
Billed | $ | 54,514 | 5,534 | 147,087 | 3,956 | 1,747 | $ | 212,838 | ||||||||||||
Unbilled | 8,427 | 1,924 | — | — | — | 10,351 | ||||||||||||||
Customers’ credit balances and deposits | (32,586) | — | — | — | — | (32,586) | ||||||||||||||
Total | $ | 30,355 | 7,458 | 147,087 | 3,956 | 1,747 | $ | 190,603 |
(Thousands) | 2022 | 2021 | ||||||
Regulatory assets-current | ||||||||
New Jersey Clean Energy Program | $ | 15,697 | $ | 16,308 | ||||
Conservation Incentive Program | 23,099 | 11,839 | ||||||
Other current regulatory assets | 1,290 | 1,554 | ||||||
Total current regulatory assets | $ | 40,086 | $ | 29,701 | ||||
Regulatory assets-noncurrent | ||||||||
Environmental remediation costs: | ||||||||
Expended, net of recoveries | $ | 66,149 | $ | 58,483 | ||||
Liability for future expenditures | 127,070 | 135,012 | ||||||
Deferred income taxes | 40,520 | 39,694 | ||||||
SAVEGREEN | 52,690 | 32,941 | ||||||
Postemployment and other benefit costs | 56,021 | 117,194 | ||||||
Deferred storm damage costs | 2,172 | 4,343 | ||||||
Cost of removal | 104,850 | 99,238 | ||||||
Other noncurrent regulatory assets | 45,828 | 32,695 | ||||||
Total noncurrent regulatory assets | $ | 495,300 | $ | 519,600 | ||||
Regulatory liability-current | ||||||||
Overrecovered natural gas costs | $ | 17,807 | $ | 5,510 | ||||
Derivatives at fair value, net | 7,972 | 22,497 | ||||||
Total current regulatory liabilities | $ | 25,779 | $ | 28,007 | ||||
Regulatory liabilities-noncurrent | ||||||||
Tax Act impact (1) | $ | 185,367 | $ | 190,386 | ||||
Derivatives at fair value, net | 116 | 1,166 | ||||||
Other noncurrent regulatory liabilities | 151 | 336 | ||||||
Total noncurrent regulatory liabilities | $ | 185,634 | $ | 191,888 |
(Thousands) | 2022 | 2021 | ||||||
Total current regulatory assets | $ | — | $ | 417 | ||||
Total noncurrent regulatory assets | $ | 5,366 | $ | 2,499 | ||||
Total current regulatory liabilities | 5,311 | — | ||||||
Total noncurrent regulatory liabilities | $ | — | $ | 1,163 |
Derivatives at Fair Value | |||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||
(Thousands) | Balance Sheet Location | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||
Natural Gas Distribution: | |||||||||||||||||||||||||||||
Physical commodity contracts | Derivatives - current | $ | 252 | $ | 11 | $ | 36 | $ | 16 | ||||||||||||||||||||
Financial commodity contracts | Derivatives - current | 85 | 6,281 | 2,046 | 13 | ||||||||||||||||||||||||
Energy Services: | |||||||||||||||||||||||||||||
Physical commodity contracts | Derivatives - current | 9,857 | 17,051 | 2,818 | 24,592 | ||||||||||||||||||||||||
Derivatives - noncurrent | 376 | 13,561 | 333 | 13,237 | |||||||||||||||||||||||||
Financial commodity contracts | Derivatives - current | 14,423 | 26,488 | 30,226 | 62,521 | ||||||||||||||||||||||||
Derivatives - noncurrent | 6,009 | 630 | 3,068 | 260 | |||||||||||||||||||||||||
Foreign currency contracts | Derivatives - current | 18 | 17 | 125 | 3 | ||||||||||||||||||||||||
Derivatives - noncurrent | — | — | 2 | — | |||||||||||||||||||||||||
Total fair value of derivatives | $ | 31,020 | $ | 64,039 | $ | 38,654 | $ | 100,642 |
(Thousands) | Amounts Presented on Balance Sheets (1) | Offsetting Derivative Instruments (2) | Financial Collateral Received/Pledged (3) | Net Amounts (4) | ||||||||||||||||||||||
As of September 30, 2022: | ||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||
Energy Services | ||||||||||||||||||||||||||
Physical commodity contracts | $ | 10,233 | $ | (404) | $ | (200) | $ | 9,629 | ||||||||||||||||||
Financial commodity contracts | 20,432 | (12,198) | — | 8,234 | ||||||||||||||||||||||
Foreign currency contracts | 18 | (17) | — | 1 | ||||||||||||||||||||||
Total Energy Services | $ | 30,683 | $ | (12,619) | $ | (200) | $ | 17,864 | ||||||||||||||||||
Natural Gas Distribution | ||||||||||||||||||||||||||
Physical commodity contracts | $ | 252 | $ | — | $ | — | $ | 252 | ||||||||||||||||||
Financial commodity contracts | 85 | (85) | — | — | ||||||||||||||||||||||
Total Natural Gas Distribution | $ | 337 | $ | (85) | $ | — | $ | 252 | ||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||
Energy Services | ||||||||||||||||||||||||||
Physical commodity contracts | $ | 30,612 | $ | (404) | $ | — | $ | 30,208 | ||||||||||||||||||
Financial commodity contracts | 27,118 | (12,198) | — | 14,920 | ||||||||||||||||||||||
Foreign currency contracts | 17 | (17) | — | |||||||||||||||||||||||
Total Energy Services | $ | 57,747 | $ | (12,619) | $ | — | $ | 45,128 | ||||||||||||||||||
Natural Gas Distribution | ||||||||||||||||||||||||||
Physical commodity contracts | $ | 11 | $ | — | $ | — | $ | 11 | ||||||||||||||||||
Financial commodity contracts | 6,281 | (85) | — | 6,196 | ||||||||||||||||||||||
Total Natural Gas Distribution | $ | 6,292 | $ | (85) | $ | — | $ | 6,207 | ||||||||||||||||||
As of September 30, 2021: | ||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||
Energy Services | ||||||||||||||||||||||||||
Physical commodity contracts | $ | 3,151 | $ | (894) | $ | (700) | $ | 1,557 | ||||||||||||||||||
Financial commodity contracts | 33,294 | (33,294) | 20,532 | 20,532 | ||||||||||||||||||||||
Foreign currency contracts | 127 | (3) | — | 124 | ||||||||||||||||||||||
Total Energy Services | $ | 36,572 | $ | (34,191) | $ | 19,832 | $ | 22,213 | ||||||||||||||||||
Natural Gas Distribution | ||||||||||||||||||||||||||
Physical commodity contracts | $ | 36 | $ | (8) | $ | — | $ | 28 | ||||||||||||||||||
Financial commodity contracts | 2,046 | (13) | — | 2,033 | ||||||||||||||||||||||
Total Natural Gas Distribution | $ | 2,082 | $ | (21) | $ | — | $ | 2,061 | ||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||
Energy Services | ||||||||||||||||||||||||||
Physical commodity contracts | $ | 37,829 | $ | (894) | $ | — | $ | 36,935 | ||||||||||||||||||
Financial commodity contracts | 62,781 | (33,294) | — | 29,487 | ||||||||||||||||||||||
Foreign currency contracts | 3 | (3) | — | — | ||||||||||||||||||||||
Total Energy Services | $ | 100,613 | $ | (34,191) | $ | — | $ | 66,422 | ||||||||||||||||||
Natural Gas Distribution | ||||||||||||||||||||||||||
Physical commodity contracts | $ | 16 | $ | (8) | $ | — | $ | 8 | ||||||||||||||||||
Financial commodity contracts | 13 | (13) | — | — | ||||||||||||||||||||||
Total Natural Gas Distribution | $ | 29 | $ | (21) | $ | — | $ | 8 |
(Thousands) | 2022 | 2021 | 2020 | ||||||||||||||
Natural Gas Distribution: | |||||||||||||||||
Physical commodity contracts | $ | 7,116 | $ | 2,174 | $ | 2,077 | |||||||||||
Financial commodity contracts | 32,868 | 32,725 | (3,903) | ||||||||||||||
Total unrealized and realized gains (losses) | $ | 39,984 | $ | 34,899 | $ | (1,826) |
(Thousands) | Amount of pre-tax gain (loss) recognized in OCI on derivatives | Location of gain (loss) reclassified from OCI into income | Amount of pre-tax gain (loss) reclassified from OCI into income | ||||||||||||||
Derivatives in cash flow hedging relationships: | 2022 | 2021 | 2022 | 2021 | |||||||||||||
Interest rate contracts | $ | — | $ | — | Interest expense | $ | (1,371) | $ | (1,371) |
Volume (Bcf) | |||||||||||||||||
Transaction Type | 2022 | 2021 | |||||||||||||||
Natural Gas Distribution | Futures | 30.5 | 22.2 | ||||||||||||||
Physical Commodity | 6.8 | 7.6 | |||||||||||||||
Energy Services | Futures | (0.7) | (13.4) | ||||||||||||||
Swaps | — | (0.3) | |||||||||||||||
Physical Commodity | 2.7 | 0.6 | |||||||||||||||
(Thousands) | Balance Sheet Location | 2022 | 2021 | ||||||||
Natural Gas Distribution | Restricted broker margin accounts - current assets | $ | 26,138 | $ | 2,790 | ||||||
Energy Services | Restricted broker margin accounts - current assets | $ | 68,123 | $ | 70,050 | ||||||
(Thousands) | Gross Credit Exposure | ||||||||||
Investment grade | $ | 182,138 | |||||||||
Noninvestment grade | 30,105 | ||||||||||
Internally-rated investment grade | 17,113 | ||||||||||
Internally-rated noninvestment grade | 45,591 | ||||||||||
Total | $ | 274,947 |
(Thousands) | 2022 | 2021 | ||||||
NJNG (2) (3) | ||||||||
Carrying value | $ | 1,292,845 | $ | 1,092,845 | ||||
Fair market value | $ | 979,388 | $ | 1,188,261 | ||||
NJR (4) | ||||||||
Carrying value | $ | 1,070,000 | $ | 1,010,000 | ||||
Fair market value | $ | 966,968 | $ | 1,100,283 |
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, 2022: | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Physical commodity contracts | $ | — | $ | 10,485 | $ | — | $ | 10,485 | ||||||||||||||||||||||||
Financial commodity contracts | 20,517 | — | — | 20,517 | ||||||||||||||||||||||||||||
Financial commodity contracts - foreign exchange | — | 18 | — | 18 | ||||||||||||||||||||||||||||
Money market funds | 59 | — | — | 59 | ||||||||||||||||||||||||||||
Other | 1,884 | — | — | 1,884 | ||||||||||||||||||||||||||||
$ | 22,460 | $ | 10,503 | $ | — | $ | 32,963 | |||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Physical commodity contracts | $ | — | $ | 30,623 | $ | — | $ | 30,623 | ||||||||||||||||||||||||
Financial commodity contracts | 33,231 | 168 | — | 33,399 | ||||||||||||||||||||||||||||
Financial commodity contracts - foreign exchange | — | 17 | — | 17 | ||||||||||||||||||||||||||||
$ | 33,231 | $ | 30,808 | $ | — | $ | 64,039 | |||||||||||||||||||||||||
As of September 30, 2021: | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Physical commodity contracts | $ | — | $ | 3,187 | $ | — | $ | 3,187 | ||||||||||||||||||||||||
Financial commodity contracts | 35,340 | — | — | 35,340 | ||||||||||||||||||||||||||||
Financial commodity contracts - foreign exchange | — | 127 | — | 127 | ||||||||||||||||||||||||||||
Money market funds | 41 | — | — | 41 | ||||||||||||||||||||||||||||
Other | 1,815 | — | — | 1,815 | ||||||||||||||||||||||||||||
Total assets at fair value | $ | 37,196 | $ | 3,314 | $ | — | $ | 40,510 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Physical commodity contracts | $ | — | $ | 37,845 | $ | — | $ | 37,845 | ||||||||||||||||||||||||
Financial commodity contracts | 62,188 | 606 | — | 62,794 | ||||||||||||||||||||||||||||
Financial commodity contracts - foreign exchange | — | 3 | — | 3 | ||||||||||||||||||||||||||||
Total liabilities at fair value | $ | 62,188 | $ | 38,454 | $ | — | $ | 100,642 |
(Thousands) | 2022 | 2021 | ||||||
Steckman Ridge (1) | $ | 106,571 | $ | 109,050 | ||||
PennEast | — | 5,479 | ||||||
Total | $ | 106,571 | $ | 114,529 |
(Thousands) | 2022 | 2021 | 2020 | ||||||||
Steckman Ridge | |||||||||||
Operating revenues | $ | 19,812 | $ | 21,847 | $ | 28,814 | |||||
Gross profit | $ | 11,349 | $ | 13,350 | $ | 20,537 | |||||
Income from continuing operations | $ | 8,686 | $ | 11,483 | $ | 16,926 | |||||
Net income | $ | 8,686 | $ | 11,483 | $ | 16,926 | |||||
Net income attributable to NJR | $ | 4,343 | $ | 5,741 | $ | 8,463 | |||||
Current assets | $ | 28,609 | $ | 14,786 | |||||||
Noncurrent assets | $ | 198,052 | $ | 202,670 | |||||||
Current liabilities | $ | 23,618 | $ | 9,738 | |||||||
Noncurrent liabilities | $ | 140,810 | $ | 140,810 | |||||||
PennEast | |||||||||||
Operating revenues | $ | — | $ | — | $ | — | |||||
Gross profit | $ | — | $ | — | $ | — | |||||
Income from continuing operations | $ | (3,778) | $ | (406,305) | $ | 34,376 | |||||
Net (loss) income | $ | (3,778) | $ | (406,305) | $ | 34,376 | |||||
Net (loss) income attributable to NJR | $ | (756) | $ | (81,261) | $ | 6,875 | |||||
Current assets | $ | 1,801 | $ | 822 | |||||||
Noncurrent assets | $ | — | $ | 44,998 | |||||||
Current liabilities | $ | 82 | $ | 248 | |||||||
Noncurrent liabilities | $ | 500 | $ | 500 |
(Thousands, except per share amounts) | 2022 | 2021 | 2020 | ||||||||
Net income, as reported | $ | 274,922 | $ | 117,890 | $ | 163,007 | |||||
Basic earnings per share | |||||||||||
Weighted average shares of common stock outstanding-basic | 96,100 | 96,227 | 94,798 | ||||||||
Basic earnings per common share | $2.86 | $1.23 | $1.72 | ||||||||
Diluted earnings per share | |||||||||||
Weighted average shares of common stock outstanding-basic | 96,100 | 96,227 | 94,798 | ||||||||
Incremental shares (1) | 388 | 333 | 305 | ||||||||
Weighted average shares of common stock outstanding-diluted | 96,488 | 96,560 | 95,103 | ||||||||
Diluted earnings per common share (2) | $2.85 | $1.22 | $1.71 |
(Thousands) | 2022 | 2021 | ||||||||||||
NJNG | ||||||||||||||
First mortgage bonds: | Maturity date: | |||||||||||||
3.00% | Series OO | August 1, 2041 | 46,500 | 46,500 | ||||||||||
3.15% | Series PP | April 15, 2028 | 50,000 | 50,000 | ||||||||||
3.58% | Series QQ | March 13, 2024 | 70,000 | 70,000 | ||||||||||
4.61% | Series RR | March 13, 2044 | 55,000 | 55,000 | ||||||||||
2.82% | Series SS | April 15, 2025 | 50,000 | 50,000 | ||||||||||
3.66% | Series TT | April 15, 2045 | 100,000 | 100,000 | ||||||||||
3.63% | Series UU | June 21, 2046 | 125,000 | 125,000 | ||||||||||
4.01% | Series VV | May 11, 2048 | 125,000 | 125,000 | ||||||||||
3.50% | Series WW | April 1, 2042 | 10,300 | 10,300 | ||||||||||
3.38% | Series XX | April 1, 2038 | 10,500 | 10,500 | ||||||||||
2.45% | Series YY | April 1, 2059 | 15,000 | 15,000 | ||||||||||
3.76% | Series ZZ | July 17, 2049 | 100,000 | 100,000 | ||||||||||
3.86% | Series AAA | July 17, 2059 | 85,000 | 85,000 | ||||||||||
2.75% | Series BBB | August 1, 2039 | 9,545 | 9,545 | ||||||||||
3.00% | Series CCC | August 1, 2043 | 41,000 | 41,000 | ||||||||||
3.13% | Series DDD | June 30, 2050 | 50,000 | 50,000 | ||||||||||
3.13% | Series EEE | July 23, 2050 | 50,000 | 50,000 | ||||||||||
3.33% | Series FFF | July 23, 2060 | 25,000 | 25,000 | ||||||||||
2.87% | Series GGG | September 1, 2050 | 25,000 | 25,000 | ||||||||||
2.97% | Series HHH | September 1, 2060 | 50,000 | 50,000 | ||||||||||
2.97% | Series III | October 28, 2051 | 50,000 | — | ||||||||||
3.07% | Series JJJ | October 28, 2061 | 50,000 | — | ||||||||||
4.37% | Series LLL | May 27, 2037 | 50,000 | — | ||||||||||
4.71% | Series MMM | May 27, 2052 | 50,000 | — | ||||||||||
Finance lease obligation-meters | Various dates | 30,290 | 20,135 | |||||||||||
Less: Debt issuance costs | (9,528) | (9,093) | ||||||||||||
Less: Current maturities of long-term debt | (6,538) | (5,393) | ||||||||||||
Total NJNG long-term debt | 1,307,069 | 1,098,494 | ||||||||||||
NJR | ||||||||||||||
3.25% | Unsecured senior notes | September 17, 2022 | — | 50,000 | ||||||||||
3.20% | Unsecured senior notes | August 18, 2023 | 50,000 | 50,000 | ||||||||||
3.48% | Unsecured senior notes | November 7, 2024 | 100,000 | 100,000 | ||||||||||
3.54% | Unsecured senior notes | August 18, 2026 | 100,000 | 100,000 | ||||||||||
3.96% | Unsecured senior notes | June 8, 2028 | 100,000 | 100,000 | ||||||||||
3.29% | Unsecured senior notes | July 17, 2029 | 150,000 | 150,000 | ||||||||||
3.60% | Unsecured senior notes | July 23, 2032 | 130,000 | 130,000 | ||||||||||
3.50% | Unsecured senior notes | July 23, 2030 | 130,000 | 130,000 | ||||||||||
3.25% | Unsecured senior notes | September 1, 2033 | 80,000 | 80,000 | ||||||||||
3.13% | Unsecured senior notes | September 1, 2031 | 120,000 | 120,000 | ||||||||||
4.38% | Unsecured senior notes | June 23, 2027 | 110,000 | — | ||||||||||
3.64% | Unsecured senior notes | September 19, 2034 | 50,000 | — | ||||||||||
Less: Debt issuance costs | (3,753) | (3,269) | ||||||||||||
Less: Current maturities of long-term debt | (50,000) | (50,000) | ||||||||||||
Total NJR long-term debt | 1,066,247 | 956,731 | ||||||||||||
Clean Energy Ventures | ||||||||||||||
Solar asset financing obligation | Various dates | 130,618 | 124,387 | |||||||||||
Less: Current maturities of long-term debt | (18,532) | (17,448) | ||||||||||||
Total Clean Energy Ventures long-term debt | 112,086 | 106,939 | ||||||||||||
Total long-term debt | $ | 2,485,402 | $ | 2,162,164 |
(Thousands) | NJR | NJNG | ||||||
2023 | $ | 50,000 | $ | — | ||||
2024 | $ | — | $ | 70,000 | ||||
2025 | $ | 100,000 | $ | 50,000 | ||||
2026 | $ | 100,000 | $ | — | ||||
2027 | $ | 110,000 | $ | — | ||||
Thereafter | $ | 760,000 | $ | 1,172,845 |
(Thousands) | Lease Payments | |||||||
2023 | $ | 7,252 | ||||||
2024 | 7,909 | |||||||
2025 | 6,026 | |||||||
2026 | 4,955 | |||||||
2027 | 2,630 | |||||||
Thereafter | 3,262 | |||||||
Subtotal | 32,034 | |||||||
Less: Interest component | (1,744) | |||||||
Total | $ | 30,290 |
(Thousands) | Lease Payments | |||||||
2023 | $ | 15,755 | ||||||
2024 | 43,000 | |||||||
2025 | 39,629 | |||||||
2026 | 2,841 | |||||||
2027 | 5,352 | |||||||
Thereafter | 16,442 | |||||||
Subtotal | 123,019 | |||||||
Less: Interest component | (11,443) | |||||||
Total | $ | 111,576 |
(Thousands) | 2022 | 2021 | Expiration Dates | ||||||||||||||
NJR | |||||||||||||||||
Bank revolving credit facilities (1) | $ | 650,000 | $ | 500,000 | September 2027 | ||||||||||||
Notes outstanding at end of period | $ | 200,150 | $ | 219,100 | |||||||||||||
Weighted average interest rate at end of period | 3.97 | % | 1.05 | % | |||||||||||||
Amount available at end of period (2) | $ | 440,177 | $ | 270,312 | |||||||||||||
Bank term loan credit agreement | $ | 150,000 | $ | — | February 2023 | ||||||||||||
Loans outstanding at end of period | $ | 150,000 | $ | — | |||||||||||||
Weighted average interest rate at end of period | 3.81 | % | — | % | |||||||||||||
Amount available at end of period | $ | — | $ | — | |||||||||||||
NJNG | |||||||||||||||||
Bank revolving credit facilities (3) | $ | 250,000 | $ | 250,000 | September 2027 | ||||||||||||
Commercial paper outstanding at end of period | $ | 73,800 | $ | 158,200 | |||||||||||||
Weighted average interest rate at end of period | 3.34 | % | .17 | % | |||||||||||||
Amount available at end of period (4) | $ | 175,469 | $ | 91,069 | |||||||||||||
(Thousands) | 2022 | 2021 | 2020 | ||||||||
Stock-based compensation expense: | |||||||||||
Performance share awards | $ | 4,131 | $ | 3,856 | $ | 1,943 | |||||
Restricted and non-restricted stock | 3,189 | 3,193 | 2,868 | ||||||||
Deferred retention stock | 7,507 | 100 | 1,725 | ||||||||
Compensation expense included in operation and maintenance expense | 14,827 | 7,149 | 6,536 | ||||||||
Income tax benefit (1) | (3,624) | (1,613) | (1,900) | ||||||||
Total, net of tax | $ | 11,203 | $ | 5,536 | $ | 4,636 |
Shares (1) | Weighted Average Grant Date Fair Value | Total Fair Value of Vested Shares (in Thousands) | |||||||||||||||||||||
Non-vested and outstanding at September 30, 2019 | 130,509 | $46.53 | — | ||||||||||||||||||||
Granted | 82,064 | $40.61 | — | ||||||||||||||||||||
Vested (2) | (55,025) | $44.27 | $ | 2,083 | |||||||||||||||||||
Cancelled/forfeited | (1,817) | $44.38 | — | ||||||||||||||||||||
Non-vested and outstanding at September 30, 2020 | 155,731 | $44.22 | — | ||||||||||||||||||||
Granted | 116,951 | $33.34 | — | ||||||||||||||||||||
Vested (3) | (54,918) | $44.64 | $ | 1,673 | |||||||||||||||||||
Cancelled/forfeited | (51,673) | $45.32 | — | ||||||||||||||||||||
Non-vested and outstanding at September 30, 2021 | 166,091 | $36.08 | — | ||||||||||||||||||||
Granted | 118,526 | $38.84 | — | ||||||||||||||||||||
Vested (4) | (76,708) | $39.57 | $ | 2,765 | |||||||||||||||||||
Cancelled/forfeited | (15,788) | $37.33 | — | ||||||||||||||||||||
Non-vested and outstanding at September 30, 2022 | 192,121 | $36.29 | — |
Shares | Weighted Average Grant Date Fair Value | Total Fair Value of Vested Shares (in Thousands) | |||||||||||||||||||||
Non-vested and outstanding at September 30, 2019 | 58,156 | $46.18 | — | ||||||||||||||||||||
Granted | 42,478 | $40.61 | — | ||||||||||||||||||||
Vested | (25,973) | $44.71 | $ | 1,073 | |||||||||||||||||||
Cancelled/forfeited | (1,175) | $43.62 | — | ||||||||||||||||||||
Non-vested and outstanding at September 30, 2020 | 73,486 | $43.52 | — | ||||||||||||||||||||
Granted | 67,726 | $33.34 | — | ||||||||||||||||||||
Vested | (34,000) | $44.30 | $ | 996 | |||||||||||||||||||
Cancelled/forfeited | (5,591) | $36.34 | — | ||||||||||||||||||||
Non-vested and outstanding at September 30, 2021 | 101,621 | $36.87 | — | ||||||||||||||||||||
Granted | 54,826 | $38.84 | — | ||||||||||||||||||||
Vested | (47,867) | $39.01 | $ | 1,824 | |||||||||||||||||||
Cancelled/forfeited | (10,756) | $37.06 | — | ||||||||||||||||||||
Non-vested and outstanding at September 30, 2022 | 97,824 | $36.90 | — |
Shares | Weighted Average Grant Date Fair Value | Total Fair Value of Vested Shares (in Thousands) | |||||||||||||||||||||
Outstanding at September 30, 2019 | 243,561 | $44.67 | — | ||||||||||||||||||||
Granted/Vested | 42,358 | $40.72 | — | ||||||||||||||||||||
Delivered | (57,673) | $35.25 | $ | 2,423 | |||||||||||||||||||
Outstanding at September 30, 2020 | 228,246 | $46.32 | — | ||||||||||||||||||||
Granted/Vested | 2,999 | $33.34 | — | ||||||||||||||||||||
Delivered | (22,389) | $45.00 | $ | 641 | |||||||||||||||||||
Outstanding at September 30, 2021 | 208,856 | $46.28 | — | ||||||||||||||||||||
Granted/Vested | 192,728 | $38.95 | — | ||||||||||||||||||||
Delivered | (163,499) | $47.95 | $ | 6,167 | |||||||||||||||||||
Forfeited | (6,818) | 40.33 | — | ||||||||||||||||||||
Outstanding at September 30, 2022 | 231,267 | $39.16 | — |
2022 | 2021 | 2020 | ||||||||||||
Shares granted | 30,908 | (1) | 34,994 | 27,696 | ||||||||||
Weighted average grant date fair value | $39.09 | $35.72 | $42.88 |
Pension (1) | OPEB | |||||||||||||
(Thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Change in Benefit Obligation | ||||||||||||||
Benefit obligation at beginning of year | $ | 395,547 | $ | 397,164 | $ | 244,674 | $ | 245,862 | ||||||
Service cost | 8,291 | 8,730 | 4,305 | 4,844 | ||||||||||
Interest cost | 9,632 | 9,112 | 6,355 | 6,071 | ||||||||||
Plan participants’ contributions (2) | 59 | 27 | 423 | 451 | ||||||||||
Actuarial (gain) | (109,320) | (7,319) | (77,775) | (4,715) | ||||||||||
Benefits paid, net of retiree subsidies received | (13,386) | (12,167) | (4,765) | (7,839) | ||||||||||
Benefit obligation at end of year | $ | 290,823 | $ | 395,547 | $ | 173,217 | $ | 244,674 | ||||||
Change in plan assets | ||||||||||||||
Fair value of plan assets at beginning of year | $ | 355,284 | $ | 307,968 | $ | 114,183 | $ | 96,406 | ||||||
Actual (loss) return on plan assets | (58,239) | 58,874 | (15,996) | 18,144 | ||||||||||
Employer contributions | 628 | 548 | 6,082 | 7,198 | ||||||||||
Benefits paid, net of plan participants’ contributions (2) | (13,326) | (12,106) | (4,533) | (7,565) | ||||||||||
Fair value of plan assets at end of year | $ | 284,347 | $ | 355,284 | $ | 99,736 | $ | 114,183 | ||||||
Funded status | $ | (6,476) | $ | (40,263) | $ | (73,481) | $ | (130,491) | ||||||
Amounts recognized on Consolidated Balance Sheets | ||||||||||||||
Postemployment employee benefit asset | ||||||||||||||
Noncurrent | $ | 4,388 | $ | — | $ | — | $ | — | ||||||
Postemployment employee benefit liability | ||||||||||||||
Current | $ | (578) | $ | (587) | $ | (900) | $ | (900) | ||||||
Noncurrent | (10,286) | (39,676) | (72,581) | (129,591) | ||||||||||
Total | $ | (6,476) | $ | (40,263) | $ | (73,481) | $ | (130,491) |
Regulatory Assets | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
Pension | OPEB | Pension | OPEB | ||||||||||||||
Balance at September 30, 2020 | $ | 103,564 | $ | 83,301 | $ | 33,004 | $ | 13,823 | |||||||||
Amounts arising during the period: | |||||||||||||||||
Net actuarial (gain) | (39,006) | (16,286) | (7,036) | (76) | |||||||||||||
Amounts amortized to net periodic costs: | |||||||||||||||||
Net actuarial (loss) | (8,269) | (6,846) | (3,178) | (1,064) | |||||||||||||
Prior service (cost) credit | (102) | 166 | — | 13 | |||||||||||||
Balance at September 30, 2021 | $ | 56,187 | $ | 60,335 | $ | 22,790 | $ | 12,696 | |||||||||
Amounts arising during the period: | |||||||||||||||||
Net actuarial (gain) | (14,922) | (35,781) | (14,885) | (18,422) | |||||||||||||
Amounts amortized to net periodic costs: | |||||||||||||||||
Net actuarial (loss) | (5,843) | (4,577) | (2,902) | (1,107) | |||||||||||||
Prior service (cost) credit | (101) | 133 | — | 11 | |||||||||||||
Balance at September 30, 2022 | $ | 35,321 | $ | 20,110 | $ | 5,003 | $ | (6,822) |
Regulatory Assets | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||
Pension | OPEB | Pension | OPEB | |||||||||||||||||||||||
(Thousands) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Net actuarial loss (gain) | $ | 35,157 | $ | 55,922 | $ | 20,110 | $ | 60,468 | $ | 5,003 | $ | 22,790 | $ | (6,822) | $ | 12,707 | ||||||||||
Prior service cost (credit) | 164 | 265 | — | (133) | — | — | — | (11) | ||||||||||||||||||
Total | $ | 35,321 | $ | 56,187 | $ | 20,110 | $ | 60,335 | $ | 5,003 | $ | 22,790 | $ | (6,822) | $ | 12,696 |
Regulatory Assets | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
(Thousands) | Pension | OPEB | Pension | OPEB | |||||||||||||
Net actuarial (gain) loss | $ | (36) | $ | — | $ | 217 | $ | — | |||||||||
Total | $ | (36) | $ | — | $ | 217 | $ | — |
Pension | ||||||||
(Thousands) | 2022 | 2021 | ||||||
Projected benefit obligation | $ | 290,823 | $ | 395,547 | ||||
Accumulated benefit obligation | $ | 265,933 | $ | 353,852 | ||||
Fair value of plan assets | $ | 284,347 | $ | 355,284 |
Pension | OPEB | |||||||||||||||||||
(Thousands) | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | ||||||||||||||
Service cost | $ | 8,291 | $ | 8,730 | $ | 8,223 | $ | 4,305 | $ | 4,844 | $ | 4,854 | ||||||||
Interest cost | 9,632 | 9,112 | 10,587 | 6,355 | 6,071 | 7,026 | ||||||||||||||
Expected return on plan assets | (21,275) | (20,150) | (20,579) | (7,575) | (6,497) | (6,510) | ||||||||||||||
Recognized actuarial loss | 8,745 | 11,446 | 10,424 | 5,684 | 7,909 | 7,442 | ||||||||||||||
Prior service cost (credit) amortization | 101 | 102 | 102 | (144) | (179) | (197) | ||||||||||||||
$ | 5,494 | $ | 9,240 | $ | 8,757 | $ | 8,625 | $ | 12,148 | $ | 12,615 |
Pension | OPEB | |||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Benefit costs: | ||||||||||||||||||||||||||||||||||||||
Discount rate | 3.10/3.07% | (1) | 2.95/2.92% | (1) | 3.37/3.35% | (1) | 3.24/3.17% | (1) | 3.08/3.03% | (1) | 3.48/3.44% | (1) | ||||||||||||||||||||||||||
Expected asset return | 6.75 | % | 6.75 | % | 7.25 | % | 6.75 | % | 6.75 | % | 7.25 | % | ||||||||||||||||||||||||||
Compensation increase | 3.00/3.50% | (1) | 3.00/3.50% | (1) | 3.00/3.50% | (1) | 3.00/3.50% | (1) | 3.00/3.50% | (1) | 3.00/3.50% | (1) | ||||||||||||||||||||||||||
Obligations: | ||||||||||||||||||||||||||||||||||||||
Discount rate | 5.50/5.50% | (1) | 3.10/3.07% | (1) | 2.95/2.92% | (1) | 5.51/5.51% | (1) | 3.24/3.17% | (1) | 3.08/3.03% | (1) | ||||||||||||||||||||||||||
Compensation increase | 3.00/3.50% | (1) | 3.00/3.50% | (1) | 3.00/3.50% | (1) | 3.00/3.50% | (1) | 3.00/3.50% | (1) | 3.00/3.50% | (1) |
($ in thousands) | 2022 | 2021 | 2020 | ||||||||||||||
HCCTR | 6.6% | 6.9% | 7.6% | ||||||||||||||
Ultimate HCCTR | 4.5% | 4.5% | 4.5% | ||||||||||||||
Year ultimate HCCTR reached | 2027 | 2027 | 2026 | ||||||||||||||
Effect of a 1 percentage point increase in the HCCTR on: | |||||||||||||||||
Year-end benefit obligation | $ | 26,710 | $ | 43,217 | $ | 49,106 | |||||||||||
Total service and interest cost | $ | 2,544 | $ | 2,959 | $ | 2,799 | |||||||||||
Effect of a 1 percentage point decrease in the HCCTR on: | |||||||||||||||||
Year-end benefit obligation | $ | (21,853) | $ | (34,669) | $ | (38,844) | |||||||||||
Total service and interest costs | $ | (1,966) | $ | (2,253) | $ | (2,151) |
2023 | Assets at | |||||||||||||||||||
Target | September 30, | |||||||||||||||||||
Asset Allocation | Allocation | 2022 | 2021 | |||||||||||||||||
U.S. equity securities | 34 | % | 32 | % | 36 | % | ||||||||||||||
International equity securities | 17 | 16 | 17 | |||||||||||||||||
Fixed income | 33 | 32 | 40 | |||||||||||||||||
Collective investment trusts at NAV | 16 | 20 | 7 | |||||||||||||||||
Total | 100 | % | 100 | % | 100 | % |
(Thousands) | Pension | OPEB | ||||||
2023 | $ | 14,112 | $ | 6,878 | ||||
2024 | $ | 15,143 | $ | 7,508 | ||||
2025 | $ | 16,150 | $ | 8,220 | ||||
2026 | $ | 17,137 | $ | 8,938 | ||||
2027 | $ | 18,104 | $ | 9,656 | ||||
2028 - 2032 | $ | 104,614 | $ | 57,488 |
Estimated Subsidy | ||||||||
(Thousands) | Payments | |||||||
2023 | $ | 356 | ||||||
2024 | $ | 393 | ||||||
2025 | $ | 433 | ||||||
2026 | $ | 475 | ||||||
2027 | $ | 520 | ||||||
2028 - 2032 | $ | 3,426 |
(Thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Total | |||||||||||||||||||
As of September 30, 2022 | Pension | OPEB | |||||||||||||||||||||
Assets | |||||||||||||||||||||||
Money market funds | $ | — | $ | — | $ | 28 | $ | 28 | |||||||||||||||
Registered Investment Companies: | |||||||||||||||||||||||
Equity Funds: | |||||||||||||||||||||||
Large Cap Index | 75,394 | 75,394 | 26,939 | 26,939 | |||||||||||||||||||
Extended Market Index | 15,783 | 15,783 | 5,578 | 5,578 | |||||||||||||||||||
International Stock | 44,846 | 44,846 | 16,106 | 16,106 | |||||||||||||||||||
Fixed Income Funds: | |||||||||||||||||||||||
Emerging Markets | 11,074 | 11,074 | 4,026 | 4,026 | |||||||||||||||||||
Core Fixed Income | — | — | 16,594 | 16,594 | |||||||||||||||||||
Opportunistic Income | — | — | 3,283 | 3,283 | |||||||||||||||||||
Ultra Short Duration | — | — | 3,296 | 3,296 | |||||||||||||||||||
High Yield Bond Fund | 19,816 | 19,816 | 7,320 | 7,320 | |||||||||||||||||||
Long Duration Fund | 59,084 | 59,084 | — | — | |||||||||||||||||||
Total assets in the fair value hierarchy | $ | 225,997 | 225,997 | $ | 83,170 | 83,170 | |||||||||||||||||
Investments measured at net asset value | |||||||||||||||||||||||
Collective investment trusts | 58,350 | 16,566 | |||||||||||||||||||||
Total assets at fair value | $ | 284,347 | $ | 99,736 |
(Thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Total | |||||||||||||||||||
As of September 30, 2021: | Pension | OPEB | |||||||||||||||||||||
Assets | |||||||||||||||||||||||
Money market funds | $ | — | $ | — | $ | 32 | $ | 32 | |||||||||||||||
Registered Investment Companies: | |||||||||||||||||||||||
Equity Funds: | |||||||||||||||||||||||
Large Cap Index | 103,961 | 103,961 | 33,644 | 33,644 | |||||||||||||||||||
Extended Market Index | 21,948 | 21,948 | 7,096 | 7,096 | |||||||||||||||||||
International Stock | 61,286 | 61,286 | 20,063 | 20,063 | |||||||||||||||||||
Fixed Income Funds: | |||||||||||||||||||||||
Emerging Markets | 18,291 | 18,291 | 6,001 | 6,001 | |||||||||||||||||||
Core Fixed Income | — | — | 13,345 | 13,345 | |||||||||||||||||||
Opportunistic Income | — | — | 8,568 | 8,568 | |||||||||||||||||||
Ultra Short Duration | — | — | 8,536 | 8,536 | |||||||||||||||||||
High Yield Bond Fund | 30,300 | 30,300 | 9,912 | 9,912 | |||||||||||||||||||
Long Duration Fund | 93,849 | 93,849 | — | — | |||||||||||||||||||
Total assets in the fair value hierarchy | $ | 329,635 | 329,635 | $ | 107,197 | 107,197 | |||||||||||||||||
Investments measured at net asset value | |||||||||||||||||||||||
Collective investment trusts | 25,649 | 6,986 | |||||||||||||||||||||
Total assets at fair value | $ | 355,284 | $ | 114,183 |
2022 | 2021 | ||||||||||||||||
(Thousands) | NJNG | NJRCEV | NJNG | NJRCEV | |||||||||||||
Balance at October 1 | $ | 41,611 | $ | 4,694 | $ | 29,280 | $ | 4,444 | |||||||||
Accretion | 2,052 | 186 | 1,612 | 182 | |||||||||||||
Additions | 161 | 281 | 5,697 | 68 | |||||||||||||
Change in assumptions | 7,339 | — | 6,151 | — | |||||||||||||
Retirements | (1,289) | — | (1,129) | — | |||||||||||||
Balance at period end | $ | 49,874 | $ | 5,161 | $ | 41,611 | $ | 4,694 |
Estimated | |||||
(Thousands) | Accretion | ||||
2023 | $ | 2,767 | |||
2024 | 2,900 | ||||
2025 | 3,038 | ||||
2026 | 3,180 | ||||
2027 | 3,328 | ||||
Total | $ | 15,213 |
(Thousands) | 2022 | 2021 | 2020 | ||||||||
Current: | |||||||||||
Federal | $ | 4,238 | $ | 651 | $ | (2,164) | |||||
State | 2,104 | 1,703 | 6,763 | ||||||||
Deferred: | |||||||||||
Federal | 55,968 | 25,030 | 28,817 | ||||||||
State | 14,185 | 6,224 | 3,400 | ||||||||
Investment/production tax credits | (300) | (322) | (322) | ||||||||
Income tax provision | $ | 76,195 | $ | 33,286 | $ | 36,494 |
(Thousands) | 2022 | 2021 | |||||||||
Deferred tax assets | |||||||||||
Investment tax credits (1) | $ | 212,506 | $ | 225,036 | |||||||
State net operating losses | 36,950 | 38,108 | |||||||||
Fair value of derivatives | 6,506 | 16,333 | |||||||||
Impairment of equity method investment | 14,124 | 15,395 | |||||||||
Postemployment benefits | 2,751 | 9,665 | |||||||||
Incentive compensation | 7,297 | 6,894 | |||||||||
Amortization of intangibles | 6,474 | 6,540 | |||||||||
Overrecovered natural gas costs | 4,977 | 1,540 | |||||||||
Allowance for doubtful accounts | 5,761 | 6,561 | |||||||||
Other | 5,748 | 6,140 | |||||||||
Total deferred tax assets | 303,094 | 332,212 | |||||||||
Less: Valuation allowance | (22,241) | (23,613) | |||||||||
Total deferred tax assets net of valuation allowance | $ | 280,853 | $ | 308,599 | |||||||
Deferred tax liabilities | |||||||||||
Property-related items | $ | (468,115) | $ | (419,753) | |||||||
Remediation costs | (18,490) | (16,347) | |||||||||
Investments in equity investees | (19,176) | (21,739) | |||||||||
Conservation incentive plan | (6,457) | (3,309) | |||||||||
Other | (4,615) | (6,203) | |||||||||
Total deferred tax liabilities | $ | (516,853) | $ | (467,351) | |||||||
Total net deferred tax liabilities | $ | (236,000) | $ | (158,752) |
(Thousands) | 2022 | 2021 | 2020 | ||||||||
Statutory income tax expense | $ | 73,735 | $ | 31,747 | $ | 41,896 | |||||
Change resulting from: | |||||||||||
Investment/production tax credits | (300) | (322) | (322) | ||||||||
Cost of removal of assets placed in service prior to 1981 | (3,533) | (5,366) | (5,362) | ||||||||
AFUDC equity | (2,361) | (786) | (4,933) | ||||||||
State income taxes, net of federal benefit | 13,072 | 6,124 | 11,965 | ||||||||
NJ Unitary method change | — | — | (15,345) | ||||||||
Valuation allowance | (1,372) | 5,974 | 13,604 | ||||||||
Tax Act - utility excess deferred income taxes amortized | (3,573) | (3,573) | (3,573) | ||||||||
Other | 527 | (512) | (1,436) | ||||||||
Income tax provision | $ | 76,195 | $ | 33,286 | $ | 36,494 | |||||
Effective income tax rate | 21.7 | % | 22.0 | % | 18.3 | % |
(Thousands) | 2022 | 2021 | ||||||
Balance at October 1, | $ | — | $ | 4,930 | ||||
Reversal of settled tax positions during the current fiscal period | — | (4,930) | ||||||
Balance at period end | $ | — | $ | — |
(Thousands) | Income Statement Location | 2022 | 2021 | ||||||||
Operating lease cost (1) | Operation and maintenance | $ | 9,702 | $ | 8,182 | ||||||
Finance lease cost | |||||||||||
Amortization of right-of-use assets | Depreciation and amortization | 1,769 | 3,442 | ||||||||
Interest on lease liabilities | Interest expense, net of capitalized interest | 612 | 710 | ||||||||
Total finance lease cost | $ | 2,381 | $ | 4,152 | |||||||
Short-term lease cost | Operation and maintenance | 34 | 543 | ||||||||
Variable lease cost | Operation and maintenance | 781 | 1,381 | ||||||||
Total lease cost | $ | 12,898 | $ | 14,258 |
(Thousands) | 2022 | 2021 | ||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||
Operating cash flows for operating leases | $ | 7,417 | $ | 6,675 | ||||
Operating cash flows for finance leases | $ | 831 | $ | 1,167 | ||||
Financing cash flows for finance leases | $ | 7,145 | $ | 8,180 |
(Thousands) | Balance Sheet Location | 2022 | 2021 | ||||||||
Assets | |||||||||||
Noncurrent | |||||||||||
Operating lease assets | Operating lease assets | $ | 168,520 | $ | 173,928 | ||||||
Utility plant | 21,913 | 13,489 | |||||||||
Total lease assets | $ | 190,433 | $ | 187,417 | |||||||
Liabilities | |||||||||||
Current | |||||||||||
Operating lease liabilities | Operating lease liabilities | $ | 4,562 | $ | 4,300 | ||||||
Current maturities of long-term debt | 6,538 | 5,393 | |||||||||
Noncurrent | |||||||||||
Operating lease liabilities | Operating lease liabilities | 138,382 | 141,363 | ||||||||
Long-term debt | 23,752 | 14,742 | |||||||||
Total lease liabilities | $ | 173,234 | $ | 165,798 |
(Thousands) | Operating Leases | Finance Leases | ||||||
2023 | $ | 8,024 | $ | 7,252 | ||||
2024 | 7,652 | 7,909 | ||||||
2025 | 7,087 | 6,026 | ||||||
2026 | 6,998 | 4,955 | ||||||
2027 | 6,972 | 2,630 | ||||||
Thereafter | 190,972 | 3,262 | ||||||
Total future lease payments | 227,705 | 32,034 | ||||||
Less: interest | (84,761) | (1,744) | ||||||
Total lease liability | $ | 142,944 | $ | 30,290 |
(Thousands) | 2022 | 2023 | 2024 | 2025 | 2026 | Thereafter | ||||||||||||||
Energy Services: | ||||||||||||||||||||
Natural gas purchases | $ | 199,629 | $ | 2,355 | $ | — | $ | — | $ | — | $ | — | ||||||||
Storage demand fees | 21,160 | 12,607 | 6,450 | 3,797 | 2,208 | 819 | ||||||||||||||
Pipeline demand fees | 56,757 | 44,466 | 32,285 | 31,876 | 23,061 | 20,724 | ||||||||||||||
Sub-total Energy Services | $ | 277,546 | $ | 59,428 | $ | 38,735 | $ | 35,673 | $ | 25,269 | $ | 21,543 | ||||||||
NJNG: | ||||||||||||||||||||
Natural gas purchases | $ | 30,730 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Storage demand fees | 47,513 | 35,345 | 17,370 | 10,268 | 9,546 | 4,775 | ||||||||||||||
Pipeline demand fees | 149,071 | 120,805 | 138,949 | 127,722 | 124,163 | 1,057,942 | ||||||||||||||
Sub-total NJNG | $ | 227,314 | $ | 156,150 | $ | 156,319 | $ | 137,990 | $ | 133,709 | $ | 1,062,717 | ||||||||
Total | $ | 504,860 | $ | 215,578 | $ | 195,054 | $ | 173,663 | $ | 158,978 | $ | 1,084,260 |
(Thousands) | |||||||||||
Fiscal Years Ended September 30, | 2022 | 2021 | 2020 | ||||||||
Operating revenues | |||||||||||
Natural Gas Distribution | |||||||||||
External customers | $ | 1,127,417 | $ | 731,796 | $ | 729,923 | |||||
Intercompany | 1,350 | — | — | ||||||||
Clean Energy Ventures | |||||||||||
External customers | 128,280 | 95,275 | 102,617 | ||||||||
Energy Services | |||||||||||
External customers (1) | 1,529,178 | 1,228,846 | 1,029,303 | ||||||||
Intercompany | 94 | (426) | 1,116 | ||||||||
Storage and Transportation | |||||||||||
External customers | 65,286 | 49,252 | 42,015 | ||||||||
Intercompany | 2,449 | 1,768 | 2,713 | ||||||||
Subtotal | 2,854,054 | 2,106,511 | 1,907,687 | ||||||||
Home Services and Other | |||||||||||
External customers | 55,818 | 51,444 | 49,810 | ||||||||
Intercompany | 364 | 785 | 1,207 | ||||||||
Eliminations | (4,257) | (2,127) | (5,036) | ||||||||
Total | $ | 2,905,979 | $ | 2,156,613 | $ | 1,953,668 | |||||
Depreciation and amortization | |||||||||||
Natural Gas Distribution | $ | 94,579 | $ | 80,045 | $ | 71,883 | |||||
Clean Energy Ventures | 21,396 | 20,567 | 25,329 | ||||||||
Energy Services (2) | 148 | 111 | 123 | ||||||||
Storage and Transportation | 12,302 | 9,960 | 9,293 | ||||||||
Subtotal | 128,425 | 110,683 | 106,628 | ||||||||
Home Services and Other | 824 | 980 | 1,032 | ||||||||
Eliminations | — | (276) | (292) | ||||||||
Total | $ | 129,249 | $ | 111,387 | $ | 107,368 | |||||
Interest income (3) | |||||||||||
Natural Gas Distribution | $ | 895 | $ | 85 | $ | 538 | |||||
Clean Energy Ventures | — | 241 | 240 | ||||||||
Energy Services | 16 | 11 | 99 | ||||||||
Storage and Transportation | 2,110 | 2,243 | 3,510 | ||||||||
Subtotal | 3,021 | 2,580 | 4,387 | ||||||||
Home Services and Other | 944 | 522 | 8,633 | ||||||||
Eliminations | (1,249) | (935) | (10,061) | ||||||||
Total | $ | 2,716 | $ | 2,167 | $ | 2,959 |
(Thousands) | |||||||||||
Fiscal Years Ended September 30, | 2022 | 2021 | 2020 | ||||||||
Interest expense, net of capitalized interest | |||||||||||
Natural Gas Distribution | $ | 46,394 | $ | 36,405 | $ | 30,975 | |||||
Clean Energy Ventures | 21,968 | 22,548 | 20,253 | ||||||||
Energy Services | 4,725 | 2,204 | 3,276 | ||||||||
Storage and Transportation | 12,097 | 13,348 | 13,124 | ||||||||
Subtotal | 85,184 | 74,505 | 67,628 | ||||||||
Home Services and Other | 646 | 4,054 | 10,327 | ||||||||
Eliminations | — | — | (10,358) | ||||||||
Total | $ | 85,830 | $ | 78,559 | $ | 67,597 | |||||
Income tax provision (benefit) | |||||||||||
Natural Gas Distribution | $ | 40,141 | $ | 19,054 | $ | 27,021 | |||||
Clean Energy Ventures | 11,361 | 5,048 | 11,034 | ||||||||
Energy Services | 21,776 | 18,371 | (3,615) | ||||||||
Storage and Transportation | 1,879 | (10,043) | 4,247 | ||||||||
Subtotal | 75,157 | 32,430 | 38,687 | ||||||||
Home Services and Other | 1,059 | (196) | (2,478) | ||||||||
Eliminations | (21) | 1,052 | 285 | ||||||||
Total | $ | 76,195 | $ | 33,286 | $ | 36,494 | |||||
Equity in earnings (loss) of affiliates | |||||||||||
Storage and Transportation | $ | 9,865 | $ | (81,072) | $ | 15,903 | |||||
Eliminations | (1,688) | (2,140) | (1,592) | ||||||||
Total | $ | 8,177 | $ | (83,212) | $ | 14,311 | |||||
Net financial earnings (loss) | |||||||||||
Natural Gas Distribution | $ | 140,124 | $ | 107,375 | $ | 126,902 | |||||
Clean Energy Ventures | 39,403 | 16,789 | 22,111 | ||||||||
Energy Services | 39,121 | 71,117 | (7,873) | ||||||||
Storage and Transportation | 22,454 | 13,046 | 18,311 | ||||||||
Subtotal | 241,102 | 208,327 | 159,451 | ||||||||
Home Services and Other | (781) | (826) | 5,784 | ||||||||
Eliminations | — | 211 | 98 | ||||||||
Total | $ | 240,321 | $ | 207,712 | $ | 165,333 | |||||
Capital expenditures | |||||||||||
Natural Gas Distribution | $ | 298,374 | $ | 426,628 | $ | 290,040 | |||||
Clean Energy Ventures | 146,676 | 87,852 | 133,841 | ||||||||
Storage and Transportation | 151,988 | 107,500 | 20,998 | ||||||||
Subtotal | 597,038 | 621,980 | 444,879 | ||||||||
Home Services and Other | 1,390 | 2,630 | 3,230 | ||||||||
Total | $ | 598,428 | $ | 624,610 | $ | 448,109 | |||||
(Return of capital from) investments in equity investees | |||||||||||
Storage and Transportation | $ | (5,479) | $ | 690 | $ | 2,117 | |||||
Total | $ | (5,479) | $ | 690 | $ | 2,117 |
(Thousands) | 2022 | 2021 | 2020 | ||||||||
Assets at end of period: | |||||||||||
Natural Gas Distribution | $ | 4,030,686 | $ | 3,707,461 | $ | 3,531,477 | |||||
Clean Energy Ventures | 1,015,065 | 914,788 | 814,277 | ||||||||
Energy Services | 333,064 | 365,423 | 244,836 | ||||||||
Storage and Transportation | 999,520 | 862,407 | 844,799 | ||||||||
Subtotal | 6,378,335 | 5,850,079 | 5,435,389 | ||||||||
Home Services and Other | 159,068 | 162,134 | 138,375 | ||||||||
Intercompany assets (1) | (275,987) | (289,935) | (257,287) | ||||||||
Total | $ | 6,261,416 | $ | 5,722,278 | $ | 5,316,477 |
(Thousands) | 2022 | 2021 | 2020 | ||||||||
Net financial earnings | $ | 240,321 | $ | 207,712 | $ | 165,333 | |||||
Less: | |||||||||||
Unrealized (gain) loss on derivative instruments and related transactions | (59,906) | 54,203 | (9,644) | ||||||||
Tax effect | 14,248 | (12,887) | 2,296 | ||||||||
Effects of economic hedging related to natural gas inventory | 19,939 | (42,405) | 12,690 | ||||||||
Tax effect | (4,738) | 10,078 | (3,016) | ||||||||
(Gain on) impairment of equity method investment | (5,521) | 92,000 | — | ||||||||
Tax effect | 1,377 | (11,167) | — | ||||||||
Net income | $ | 274,922 | $ | 117,890 | $ | 163,007 |
(Thousands) | 2022 | 2021 | 2020 | ||||||||
Natural Gas Distribution | $ | 6,663 | $ | 6,449 | $ | 5,900 | |||||
Energy Services | 732 | 564 | 183 | ||||||||
Total | $ | 7,395 | $ | 7,013 | $ | 6,083 |
(Thousands) | 2022 | 2021 | ||||||
Natural Gas Distribution | $ | 775 | $ | 778 | ||||
Energy Services | 76 | 83 | ||||||
Total | $ | 851 | $ | 861 |
(a) 1. Financial Statements. | ||||||||
All Financial Statements of the Registrant are filed as part of this report and included in Item 8 of Part II of this Form 10-K. | ||||||||
137. |
Page | ||||||||
Schedule II - Valuation and qualifying accounts and reserves for each of the three years in the period ended September 30, 2022 |
(Thousands) | ADDITIONS | ||||||||||||||||
CLASSIFICATION | BEGINNING BALANCE | CHARGED TO EXPENSE | OTHER | ENDING BALANCE | |||||||||||||
2022 | |||||||||||||||||
Valuation allowance for deferred tax assets | $ | 23,613 | (1,372) | — | $ | 22,241 | |||||||||||
Allowance for doubtful accounts | $ | 24,652 | 2,401 | (7,674) | (1) | $ | 19,379 | ||||||||||
2021 | |||||||||||||||||
Valuation allowance for deferred tax assets | $ | 17,639 | 6,355 | (381) | $ | 23,613 | |||||||||||
Allowance for doubtful accounts | $ | 7,242 | 18,986 | (1,576) | (1) | $ | 24,652 | ||||||||||
2020 | |||||||||||||||||
Valuation allowance for deferred tax assets | $ | 4,035 | 15,869 | (2,265) | $ | 17,639 | |||||||||||
Allowance for doubtful accounts | $ | 6,148 | 2,238 | (1,144) | (1) | $ | 7,242 |
Exhibit Number | Exhibit Description | ||||
2.1 | Purchase and Sale Agreement, dated as of October 27, 2017, by and between Talen Generation, LLC, and Adelphia Gateway, LLC (incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K, as filed on November 2, 2017) | ||||
2.2 | Membership Interest Purchase Agreement, between NJR Clean Energy Ventures II Corporation and SRIV Partnership, LLC, dated as of November 21, 2018 (incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K, as filed on November 21, 2018) | ||||
2.3 | Membership Interest Purchase Agreement, dated September 3, 2019, by and between Leaf River Energy Holdings, LLC and NJR Pipeline Company (incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K, as filed on September 5, 2019) | ||||
3.1 | Restated Certificate of Incorporation of New Jersey Resources Corporation, as amended through March 3, 2015 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K, as filed on January 23, 2014, and Exhibit 3.1 to the Current Report on Form 8-K, as filed on March 3, 2015) | ||||
3.2 | Bylaws of New Jersey Resources Corporation, as amended and restated on July 14, 2020 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K, as filed on July 20, 2020) | ||||
4.1 | Description of Common Stock (incorporated by reference to Exhibit 4.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2019, as filed on November 22, 2019) | ||||
4.2 | Specimen Common Stock Certificate (incorporated by reference to Exhibit 4.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2013, as filed on November 25, 2013) | ||||
4.3 | Amended and Restated Indenture of Mortgage, Deed of Trust and Security Agreement, dated as of September 1, 2014, between NJNG and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 99.3 to the Current Report on Form 8-K, as filed on September 30, 2014) | ||||
4.3(a) | 36th Supplemental Indenture dated as of September 1, 2014, between NJNG and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 99.2 to the Current Report on Form 8-K, as filed on September 30, 2014) | ||||
4.3(b) | First Supplemental Indenture dated as of April 1, 2015 between NJNG and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.2 to the Quarterly Report on Form 10-Q, as filed on May 7, 2015) | ||||
4.3(c) | Second Supplemental Indenture dated as of June 1, 2016, between New Jersey Natural Gas Company and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.2 to Form 8-K as filed on June 22, 2016) | ||||
4.3(d) | Third Supplemental Indenture, dated as of May 1, 2018, by and between New Jersey Natural Gas Company and U.S. Bank National Association (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, as filed on May 11, 2018) | ||||
4.3(e) | Fourth Supplemental Indenture, dated as of April 1, 2019, between NJNG and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.4 to the Quarterly Report on Form 10-Q, as filed on May 3, 2019) | ||||
4.3(f) | Fifth Supplemental Indenture, dated as of July 1, 2019, by and between New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K, as filed on July 17, 2019) | ||||
4.3(g) | Sixth Supplemental Indenture, dated as of August 1, 2019, between NJNG and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.3(g) to the Annual Report on Form 10-K for the fiscal year ended September 30, 2019, as filed on November 22, 2019) | ||||
4.3(h) | Seventh Supplemental Indenture, dated as of June 1, 2020, between NJNG and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on July 2, 2020) | ||||
4.3(i) | Eighth Supplemental Indenture, dated as of July 23, 2020, between NJNG and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on July 23, 2020) | ||||
4.3(j) | Ninth Supplemental Indenture, dated as of September 2, 2020, between NJNG and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K, as filed on September 2, 2020) |
Exhibit Number | Exhibit Description | ||||
4.3(k) | Tenth Supplemental Indenture, dated as of October 1, 2021, by and between New Jersey Natural Gas Company and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, as filed on November 3, 2021) | ||||
4.3(l) | Eleventh Supplemental Indenture, dated as of May 1, 2022, by and between New Jersey Natural Gas Company and U.S. Bank Trust Company, National Association, as Trustee (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, as filed on June 1, 2022) | ||||
4.3(m) | Twelfth Supplemental Indenture, dated as of October 1, 2022, by and between New Jersey Natural Gas Company and U.S. Bank Trust Company, National Association, as Trustee (incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K, as filed on October 28, 2022) | ||||
4.4 | $75,000,000 Shelf Note Purchase Agreement, dated as of June 30, 2011, between New Jersey Resources Corporation and Prudential Investment Management, Inc. (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K as filed on July 6, 2011) | ||||
4.4(a) | First Amendment to the Prudential Facility, dated as of July 25, 2014, between the Company and Prudential Investment Management, Inc. (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K as filed on November 12, 2014) | ||||
4.4(b) | Second Amendment to the Prudential Facility, dated as of September 28, 2015, between the Company and Prudential Investment Management, Inc. (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K as filed on October 2, 2015) | ||||
4.4(c) | Third Amendment to the Shelf Note Purchase Agreement dated as of June 30, 2011, dated as of November 1, 2021 among New Jersey Resources Corporation, each Guarantor signatory thereto, and each Noteholder party thereto (incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K, as filed on November 3, 2021) | ||||
4.4(d) | Fourth Amendment to the Shelf Note Purchase Agreement, among New Jersey Resources Corporation, PGIM, Inc. (formerly Prudential Investment Management, Inc.) and the Purchasers party thereto dated as of September 16, 2022 (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K as filed on September 20, 2022) | ||||
4.5 | $125,000,000 Note Purchase Agreement, dated as of February 7, 2014, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.5 to the Quarterly Report on Form 10-Q, as filed on May 7, 2014) | ||||
4.6 | Loan Agreement between New Jersey Economic Development Authority and New Jersey Natural Gas Company, dated as of August 1, 2011 (incorporated by reference to Exhibit 4.10 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2011, as filed on November 23, 2011) | ||||
4.7 | First Amendment to the Loan Agreement, dated as of August 1, 2019, between NJNG and New Jersey Economic Development Authority (incorporated by reference to Exhibit 4.7 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2019, as filed on November 22, 2019) | ||||
4.8 | First Supplemental Indenture, dated as of August 1, 2019, between NJNG and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.8 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2019, as filed on November 22, 2019) | ||||
4.9 | $50,000,000 Note Purchase Agreement, dated as of February 8, 2013, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.12 to the Quarterly Report on Form 10-Q, as filed on May 3, 2013) | ||||
4.10 | $150,000,000 Note Purchase Agreement, dated as of February 12, 2015, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on February 17, 2015) | ||||
4.11 | Note Purchase Agreement, dated as of March 22, 2016, among New Jersey Resources Corporation and each of the Purchasers listed in Schedule A thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on March 25, 2016) | ||||
4.12 | $125,000,000 Note Purchase Agreement, dated as of June 21, 2016, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on June 22, 2016) | ||||
Exhibit Number | Exhibit Description | ||||
4.13 | $125,000,000 Note Purchase Agreement, dated as of May 11, 2018, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on May 11, 2018) | ||||
4.14 | $100,000,000 Note Purchase Agreement, dated as of June 8, 2018, by and among New Jersey Resources Corporation and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on June 8, 2018) | ||||
4.15 | Amended and Restated Indenture, dated as of April 1, 2019, between NJNG and New Jersey Economic Development Authority and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Quarterly Report on Form 10-Q, as filed on May 3, 2019) | ||||
4.16 | Second Amendment to the Loan Agreement, dated as of April 1, 2019, between NJNG and New Jersey Economic Development Authority (incorporated by reference to Exhibit 4.2 to the Quarterly Report on Form 10-Q, as filed on May 3, 2019) | ||||
4.17 | Amended and Restated Continuing Disclosure Undertaking, dated as of April 18, 2019 (incorporated by reference to Exhibit 4.3 to the Quarterly Report on Form 10-Q, as filed on May 3, 2019) | ||||
4.18 | $150,000,000 Note Purchase Agreement, dated as of July 17, 2019, by and among New Jersey Resources Corporation and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on July 17, 2019) |
4.19 | $185,000,000 Note Purchase Agreement, dated as of July 17, 2019, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, as filed on July 17, 2019) | ||||
4.20 | Amended and Restated Continuing Disclosure Undertaking, dated as of August 22, 2019 (incorporated by reference to Exhibit 4.20 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2019, as filed on November 22, 2019) | ||||
4.21 | $260,000,000 Note Purchase Agreement, dated as of May 14, 2020, by and among New Jersey Resources Corporation and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on May 18, 2020) | ||||
4.22 | $125,000,000 Note Purchase Agreement, dated as of May 14, 2020, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, as filed on May 18, 2020) | ||||
4.23 | $200,000,000 Note Purchase Agreement, dated as of September 1, 2020, by and among New Jersey Resources Corporation and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on September 2, 2020) | ||||
4.24 | $75,000,000 Note Purchase Agreement, dated as of September 1, 2020, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, as filed on September 2, 2020) | ||||
4.25 | $100,000,000 Note Purchase Agreement, dated as of October 28, 2021, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on November 3, 2021) | ||||
4.26 | First Amendment to the Note Purchase Agreement dated as of March 22, 2016, dated as of November 1, 2021 among New Jersey Resources Corporation, each Guarantor signatory thereto, and each Noteholder party thereto (incorporated by reference to Exhibit 4.4 to the Current Report on Form 8-K, as filed on November 3, 2021) | ||||
4.27 | First Amendment to the Note Purchase Agreement dated as of June 8, 2018, dated as of November 1, 2021 among New Jersey Resources Corporation, each Guarantor signatory thereto, and each Noteholder party thereto (incorporated by reference to Exhibit 4.5 to the Current Report on Form 8-K, as filed on November 3, 2021) | ||||
4.28 | First Amendment to the Note Purchase Agreement dated as of July 17, 2019, dated as of November 1, 2021 among New Jersey Resources Corporation, each Guarantor signatory thereto, and each Noteholder party thereto (incorporated by reference to Exhibit 4.6 to the Current Report on Form 8-K, as filed on November 3, 2021) | ||||
4.29 | First Amendment to the Note Purchase Agreement dated as of May 14, 2020, dated as of November 1, 2021 among New Jersey Resources Corporation, each Guarantor signatory thereto, and each Noteholder party thereto (incorporated by reference to Exhibit 4.7 to the Current Report on Form 8-K, as filed on November 3, 2021) |
Exhibit Number | Exhibit Description | ||||
4.30 | First Amendment to the Note Purchase Agreement dated as of September 1, 2020, dated as of November 1, 2021 among New Jersey Resources Corporation, each Guarantor signatory thereto, and each Noteholder party thereto (incorporated by reference to Exhibit 4.8 to the Current Report on Form 8-K, as filed on November 3, 2021) | ||||
4.31 | $100,000,000 Note Purchase Agreement, dated as of May 27, 2022, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on June 1, 2022) | ||||
4.32 | $110,000,000 Note Purchase Agreement, dated as of June 23, 2022, by and among New Jersey Resources Corporation and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on June 27, 2022) | ||||
4.33 | $125,000,000 Note Purchase Agreement, dated as of October 24, 2022, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on October 28, 2022) | ||||
4.34 | $50,000,000 Note Purchase Agreement, dated as of October 24, 2022, by and among New Jersey Resources Corporation and the Purchasers party thereto (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, as filed on October 28, 2022) | ||||
10.1* | Form of Amended and Restated Supplemental Executive Retirement Plan Agreement between the Company and Named Executive Officer (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020) | ||||
10.1(a)* | Schedule of Supplemental Executive Retirement Plan Agreements for named executive officers (incorporated by reference to Exhibit 10.1(a) to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020) | ||||
10.2 | Service Agreement for Rate Schedule SS-1 by and between NJNG and Texas Eastern Transmission Company, dated as of June 21, 1995 (incorporated by reference to Exhibit 10-5B to the Annual Report on Form 10-K for the fiscal year ended September 30, 1996, as filed on December 30, 1996) | ||||
10.3* | Summary of 2023 Non-Employee Director Compensation Plan (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, as filed on September 20, 2022) | ||||
10.4* | Summary of 2022 Non-Employee Director Compensation Plan (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K, as filed on September 9, 2021) | ||||
10.5* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - Total Shareholder Return Fiscal Year 2018 (incorporated by reference to Exhibit 10.8 to the Quarterly Report on Form 10-Q, as filed on February 8, 2018) | ||||
10.6* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - NFE Fiscal Year 2018 (incorporated by reference to Exhibit 10.6 to the Quarterly Report on Form 10-Q, as filed on February 8, 2018) | ||||
10.7* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Based Restricted Stock Units Agreement Fiscal Year 2018 (incorporated by reference to Exhibit 10.10 to the Quarterly Report on Form 10-Q, as filed on February 8, 2018) | ||||
10.8* | New Jersey Resources Corporation Deferred Stock Retention Award Agreement Fiscal Year 2018 (incorporated by reference to Exhibit 10.7 to the Quarterly Report on Form 10-Q, as filed on February 8, 2018) | ||||
10.9* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Restricted Stock Units Agreement Fiscal Year 2018 (incorporated by reference to Exhibit 10.9 to the Quarterly Report on Form 10-Q, as filed on February 8, 2018) | ||||
10.10* | The Company’s 2017 Stock Award and Incentive Plan (incorporated by reference to Appendix A to the Proxy Statement for the 2017 Annual Meeting as filed on December 15, 2016) | ||||
10.11* | New Jersey Resources Savings Equalization Plan (as amended and restated as of November 16, 2020) (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020) | ||||
Exhibit Number | Exhibit Description | ||||
10.12* | New Jersey Resources Pension Equalization Plan (as amended and restated as of November 16, 2020) (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020) | ||||
10.13* | New Jersey Resources Corporation Directors’ Deferred Compensation Plan (incorporated by reference to Exhibit 10.25 to the Quarterly Report on Form 10-Q, as filed on February 6, 2009) | ||||
10.14* | New Jersey Resources Corporation Officers’ Deferred Compensation Plan (as amended and restated on November 16, 2020) (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020) | ||||
10.15* | Amended and Restated New Jersey Resources Corporation Directors’ Deferred Compensation Plan (amended and restated as of November 16, 2020) (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020) | ||||
10.16* | Form of Amended and Restated Employment Continuation Agreement between the Company and named executive officer (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, as filed on November 18, 2019) | ||||
10.16(a)* | Schedule of Employee Continuation Agreements (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020) | ||||
10.16(b)* | Form of Amended and Restated Employment Continuation Agreement for officers of NJR Energy Services Company dated as of November 12, 2019 (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, as filed on November 18, 2019) | ||||
10.17 | Limited Liability Company Agreement of Steckman Ridge GP, LLC, dated as of March 2, 2007 (incorporated by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q, as filed on May 3, 2007) | ||||
10.18 | Limited Partnership Agreement of Steckman Ridge, LP dated as of March 2, 2007 (incorporated by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q, as filed on May 3, 2007) | ||||
10.19* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - NFE Fiscal Year 2019 (incorporated by reference to Exhibit 10.6 to the Quarterly Report on Form 10-Q, as filed on February 6, 2019) | ||||
10.20* | New Jersey Resources Corporation Deferred Stock Retention Award Agreement Fiscal Year 2019 (incorporated by reference to Exhibit 10.7 to the Quarterly Report on Form 10-Q, as filed on February 6, 2019) | ||||
10.21* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - Total Shareholder Return Fiscal Year 2019 (incorporated by reference to Exhibit 10.8 to the Quarterly Report on Form 10-Q, as filed on February 6, 2019) | ||||
10.22* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Restricted Stock Units Agreement Fiscal Year 2019 (incorporated by reference to Exhibit 10.9 to the Quarterly Report on Form 10-Q, as filed on February 6, 2019) | ||||
10.23* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Based Restricted Stock Units Agreement Fiscal Year 2019 (incorporated by reference to Exhibit 10.10 to the Quarterly Report on Form 10-Q, as filed on February 6, 2019) | ||||
10.24* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Restricted Stock Units Agreement Fiscal Year 2020 (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020) | ||||
10.25* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - Total Shareholder Return Fiscal Year 2020 (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020) | ||||
10.26* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - NFE Fiscal Year 2020 (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020) | ||||
10.27* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance-Based Restricted Stock Unit Agreement Fiscal Year 2020 (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020) | ||||
10.28* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Deferred Retention Stock Award Agreement Fiscal Year 2020 (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020) |
Exhibit Number | Exhibit Description | ||||
10.29* | 2017 Stock Award and Incentive Plan Form of Director Restricted Stock Units Agreement (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, as filed on January 23, 2020) | ||||
10.30* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Restricted Stock Units Agreement Fiscal Year 2021 (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K, as filed on November 13, 2020) | ||||
10.31* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - Total Shareholder Return Fiscal Year 2021 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, as filed on November 13, 2020) | ||||
10.32* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - NFE Fiscal Year 2021 (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, as filed on November 13, 2020) | ||||
10.33* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance-Based Restricted Stock Unit Agreement Fiscal Year 2021 (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K, as filed on November 13, 2020) | ||||
10.34* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Restricted Stock Units Agreement Fiscal Year 2022 (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K, as filed on November 15, 2021) | ||||
10.35* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - Total Shareholder Return Fiscal Year 2022 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, as filed on November 15, 2021) | ||||
10.36* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - NFE Fiscal Year 2022 (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, as filed on November 15, 2021) | ||||
10.37* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance-Based Restricted Stock Unit Agreement Fiscal Year 2022 (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K, as filed on November 15, 2021) | ||||
10.38* | Incentive Award Agreement, by and between New Jersey Resources Corporation and Timothy F. Shea, dated as of January 26, 2022 (incorporated by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q, as filed on February 3, 2022) | ||||
10.39* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Restricted Stock Units Agreement Fiscal Year 2023 (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K, as filed on November 17, 2022) | ||||
10.40* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - Total Shareholder Return Fiscal Year 2023 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, as filed on November 17, 2022) | ||||
10.41* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - NFE Fiscal Year 2023 (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, as filed on November 17, 2022) | ||||
10.42* | New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - NFE Fiscal Year 2023 (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, as filed on November 17, 2022) | ||||
10.43 | 364-Day $250,000,000 Revolving Credit Facility, dated as of April 24, 2020 by and among New Jersey Resources Corporation and each of the Guarantors party thereto and the lenders party thereto, and PNC Bank, National Association and PNC Capital Markets LLC, SunTrust Robinson Humphrey, Inc. and TD Bank, N.A., as Joint Lead Arrangers, and Truist Bank and TB Bank, N.A., as Co- Syndication Agents (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, as filed on April 27, 2020) | ||||
10.44 | $500,000,000 Second Amended and Restated Credit Agreement, dated as of September 2, 2021, by and among New Jersey Resources Corporation, the guarantors thereto, the lenders party thereto, PNC Bank, National Association, as Administrative Agent, JPMorgan Chase Bank, N.A., Wells Fargo Bank, National Association and Mizuho Bank, Ltd., as Syndication Agents, and U.S. Bank National Association, Bank of America, N.A., TD Bank, N.A. and The Bank of Nova Scotia, as Documentation Agents (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, as filed on September 9, 2021) |
Exhibit Number | Exhibit Description | ||||
10.45 | $250,000,000 Second Amended and Restated Credit Agreement dated as of September 2, 2021, by and among New Jersey Natural Gas Company, the lenders party thereto, PNC Bank, National Association, as Administrative Agent, JPMorgan Chase Bank, N.A., Wells Fargo Bank, National Association and Mizuho Bank, Ltd., as Syndication Agents, and U.S. Bank National Association, Bank of America, N.A., TD Bank, N.A., and The Bank of Nova Scotia, as Documentation Agents (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, as filed on September 9, 2021) | ||||
10.46 | $150,000,000 Term Loan Credit Agreement, dated as of February 8, 2022, by and among NJR, the guarantors thereto and PNC Bank, National Association, as Lender (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, as filed on February 11, 2022) | ||||
10.47 | First Amendment to Second Amended and Restated Credit Agreement, dated as of August 30, 2022, by and among NJR, the guarantors thereto, the lenders party thereto and PNC Bank, National Association, as Administrative Agent (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, as filed on September 6, 2022) | ||||
10.48 | First Amendment to Second Amended and Restated Credit Agreement dated as of August 30, 2022, by and among NJNG, the lenders party thereto and PNC Bank, National Association, as Administrative Agent (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, as filed on September 6, 2022) | ||||
21.1+ | |||||
23.1+ | |||||
31.1+ | |||||
31.2+ | |||||
32.1+ † | |||||
32.2+ † | |||||
101+ | Interactive Data File {Annual Report on Form 10-K, for the fiscal year ended September 30, 2022, furnished in iXBRL (Inline eXtensible Business Reporting Language)} | ||||
104+ | Cover Page Interactive Data File included in Exhibit 101 |
NEW JERSEY RESOURCES CORPORATION | ||||||||
(Registrant) | ||||||||
Date: | November 17, 2022 | By:/s/ Roberto Bel | ||||||
Roberto Bel | ||||||||
Senior Vice President and | ||||||||
Chief Financial Officer |
November 17, 2022 | /s/ Stephen D. Westhoven | November 17, 2022 | /s/ Roberto Bel | ||||||||
Stephen D. Westhoven President and Chief Executive Officer Director (Principal Executive Officer) | Roberto Bel Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) | ||||||||||
November 17, 2022 | /s/ Donald L. Correll | November 17, 2022 | /s/ Thomas C. O’Connor | ||||||||
Donald L. Correll Chairman | Thomas C. O’Connor Director | ||||||||||
November 17, 2022 | /s/ Gregory E. Aliff | November 17, 2022 | /s/ Michael O’Sullivan | ||||||||
Gregory E. Aliff Director | Michael O’Sullivan Director | ||||||||||
November 17, 2022 | /s/ James H. DeGraffenreidt, Jr. | November 17, 2022 | /s/ Sharon C. Taylor | ||||||||
James H. DeGraffenreidt, Jr. Director | Sharon C. Taylor Director | ||||||||||
November 17, 2022 | /s/ Robert B. Evans | November 17, 2022 | /s/ David A. Trice | ||||||||
Robert B. Evans Director | David A. Trice Director | ||||||||||
November 17, 2022 | /s/ M. Susan Hardwick | November 17, 2022 | /s/ George R. Zoffinger | ||||||||
M. Susan Hardwick Director | George R. Zoffinger Director | ||||||||||
November 17, 2022 | /s/ Jane M. Kenny | ||||||||||
Jane M. Kenny Director |
SUBSIDIARY | STATE OF INCORPORATION | ||||||||||||||||||||||||||||
New Jersey Natural Gas Company | New Jersey | ||||||||||||||||||||||||||||
NJR Service Corporation | New Jersey | ||||||||||||||||||||||||||||
NJR Energy Services Company | New Jersey | ||||||||||||||||||||||||||||
NJR Clean Energy Ventures Corporation | New Jersey | ||||||||||||||||||||||||||||
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NJR Clean Energy Ventures II Corporation | New Jersey | ||||||||||||||||||||||||||||
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Bernards Solar, LLC (Limited Liability Company) | New Jersey | ||||||||||||||||||||||||||||
NJR Clean Energy Ventures III Corporation | New Jersey | ||||||||||||||||||||||||||||
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AR Solar, LLC (Limited Liability Company) | New York | ||||||||||||||||||||||||||||
Bernards Solar, LLC (Limited Liability Company) | New Jersey | ||||||||||||||||||||||||||||
Canal Road Solar Partners, LLC (Limited Liability Company) | Delaware | ||||||||||||||||||||||||||||
Canal Brook Solar Partners, LLC (Limited Liability Company) | Delaware | ||||||||||||||||||||||||||||
CleanLight Energy, LLC (Limited Liability Company) | Delaware | ||||||||||||||||||||||||||||
CP East Hampton Solar I, LLC (Limited Liability Company) | Connecticut | ||||||||||||||||||||||||||||
CP East Hampton Solar II, LLC (Limited Liability Company) | Connecticut | ||||||||||||||||||||||||||||
Greenville Road Solar, LLC (Limited Liability Company) | Rhode Island | ||||||||||||||||||||||||||||
Howard Lane Solar, LLC (Limited Liability Company) | Rhode Island | ||||||||||||||||||||||||||||
Maybrook Solar, LLC (Limited Liability Company) | New York | ||||||||||||||||||||||||||||
NHV Solar, LLC (Limited Liability Company) | New Jersey | ||||||||||||||||||||||||||||
NJ Oak Solar, LLC (Limited Liability Company) | Delaware | ||||||||||||||||||||||||||||
NJR Energy Investments Corporation | New Jersey | ||||||||||||||||||||||||||||
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NJR Midstream Holdings Corporation | New Jersey | ||||||||||||||||||||||||||||
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NJNR Pipeline Company | New Jersey | ||||||||||||||||||||||||||||
NJR Midstream Company (formerly NJR Pipeline Company) | New Jersey | ||||||||||||||||||||||||||||
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Adelphia Gateway, LLC (Limited Liability Company) | Delaware | ||||||||||||||||||||||||||||
Leaf River Energy Center LLC (Limited Liability Company) | Delaware | ||||||||||||||||||||||||||||
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LR Finance LLC (Limited Liability Company) | Delaware | ||||||||||||||||||||||||||||
NJR Storage Holdings Company | Delaware | ||||||||||||||||||||||||||||
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NJR Steckman Ridge Storage Company | Delaware | ||||||||||||||||||||||||||||
NJR Retail Holdings Corporation | New Jersey | ||||||||||||||||||||||||||||
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Commercial Realty and Resources Corp | New Jersey | ||||||||||||||||||||||||||||
Phoenix Fuel Management Company | New Jersey | ||||||||||||||||||||||||||||
NJR Home Services Company | New Jersey | ||||||||||||||||||||||||||||
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NJR Plumbing Services, Inc | New Jersey | ||||||||||||||||||||||||||||
NJR Retail Company | New Jersey |
Date: | November 17, 2022 | By: | /s/ Stephen D. Westhoven | ||||||||
Stephen D. Westhoven | |||||||||||
President and Chief Executive Officer |
Date: | November 17, 2022 | By: | /s/ Roberto F. Bel | ||||||||
Roberto F. Bel | |||||||||||
Senior Vice President and Chief Financial Officer |
Date: | November 17, 2022 | By: | /s/ Stephen D. Westhoven | ||||||||
Stephen D. Westhoven | |||||||||||
President and Chief Executive Officer |
Date: | November 17, 2022 | By: | /s/ Roberto F. Bel | ||||||||
Roberto F. Bel | |||||||||||
Senior Vice President and Chief Financial Officer |