NEW JERSEY RESOURCES CORP

Storage and Transportation

S&T invests in natural gas assets, such as natural gas transportation and storage facilities. We believe that acquiring, owning and developing these storage and transportation assets, which operate under a tariff structure that has either cost- or market-based rates, can provide us organic growth opportunities. S&T is subject to various risks, including the construction, development and operation of our transportation and storage assets, as well as our ability to obtain necessary governmental, environmental and regulatory approvals, property rights and financing at reasonable costs for the construction, operation and maintenance of our assets.

S&T is comprised of Leaf River, a 32.2M Dekatherms salt dome natural gas storage facility that operates under market-based rates, and Adelphia, a FERC-regulated interstate pipeline in southeastern Pennsylvania that operates under cost-of-service rates but can enter into negotiated rates with counterparties.

On September 30, 2024, Adelphia filed a Section 4 rate case with the FERC seeking approval to revise its transportation cost-of-service rates to reflect investments made in its pipeline system, as well as the ongoing costs of operating and maintaining the system. Adelphia anticipates that FERC will allow it to place the rates into effect during the second half of 2025, subject to refund and the outcome of a hearing to be established by FERC.

S&T has a 50% ownership interest in Steckman Ridge, a storage facility located in western Pennsylvania that operates under market-based rates. As of March 31, 2025, our investment in Steckman Ridge was $101.4M.

Part I

The financial results of S&T are summarized as follows:

(1)Includes related party transactions of approximately $0.7M and $1.3M during the three and six months ended March 31, 2024, respectively, which are eliminated in consolidation. There were no related party transactions during the three and six months ended March 31, 2025.

Net income increased approximately $0.4M during the three months ended March 31, 2025, compared with the three months ended March 31, 2024, due primarily to the following factors:

•$2.3M increase in operating revenues due to higher hub services at Leaf River; partially offset by

•$2.3M increase in O&M due to higher legal and consulting expenses.

Net income increased approximately $2.4M during the six months ended March 31, 2025, compared with the six months ended March 31, 2024, due primarily to the following factors:

•$5.0M increase in operating revenues due to higher hub services at Leaf River; partially offset by

•$2.3M increase in O&M as previously discussed.