Q - NEW JERSEY RESOURCES

Cash Flows

Operating Activities

Cash flows from operating activities during the nine months ended June 30, 2025, totaled approximately $385.2M, compared with approximately $362.9M during the nine months ended June 30, 2024. Operating cash flows are primarily affected by variations in working capital, which can be impacted by several factors, including:

•seasonality of our business;

•fluctuations in wholesale natural gas prices and other energy prices, including changes in derivative asset and liability values;

•timing of storage injections and withdrawals;

•deferral and recovery of natural gas costs;

•changes in contractual assets utilized to optimize margins related to natural gas transactions;

•broker margin requirements;

•impact of unusual weather patterns on our wholesale business;

•timing of the collections of receivables and payments of current liabilities;

•volumes of natural gas purchased and sold; and

•timing of SREC deliveries.

Cash flows from operating activities increased approximately $22.3M during the nine months ended June 30, 2025, compared with the nine months ended June 30, 2024, due primarily to higher base rates along with the changes in the mix of working capital components.

Investing Activities

Cash flows used in investing activities decreased approximately $86.7M during the nine months ended June 30, 2025, compared with the nine months ended June 30, 2024, due primarily to proceeds from the sale of the CEV's residential solar asset portfolio, partially offset by increased utility plant and solar asset expenditures.

Part I

Financing Activities

Financing cash flows generally are seasonal in nature and are impacted by the volatility in pricing in the natural gas and other energy markets. NJNG's inventory levels are built up during its natural gas injection season (April through October) and reduced during withdrawal season (November through March) in response to the supply requirements of its customers. Changes in financing cash flows can also be impacted by natural gas management and marketing activities at ES and clean energy investments at CEV.

Cash flows (used in) from financing activities increased approximately $130.2M during the nine months ended June 30, 2025, compared with the nine months ended June 30, 2024, due primarily to increased payments of long-term debt of approximately $100.8M, along with lower proceeds from long-term debt and the waiver discount feature of the DRP of approximately $75M and $27.4M, respectively, partially offset by higher proceeds from solar sale leasebacks and net short-term debt of $75.9M and $12.2M, respectively.

Credit Ratings

The table below summarizes NJNG's credit ratings as of June 30, 2025, issued by two rating entities, Moody's and Fitch:

The Moody's ratings and outlook were reaffirmed on June 27, 2025. The Fitch ratings and outlook were reaffirmed on April 4, 2025. NJNG's Moody's and Fitch ratings are investment-grade ratings. NJR is not rated by Moody’s or Fitch.

Although NJNG is not party to any lending agreements that would accelerate the maturity date of any obligation caused by a failure to maintain any specific credit rating, if such ratings are downgraded below investment grade, borrowing costs could increase, as would the costs of maintaining certain contractual relationships and future financing and our access to capital markets would be reduced. Even if ratings are downgraded without falling below investment grade, NJR and NJNG could face increased borrowing costs under their credit facilities. A rating set forth above is not a recommendation to buy, sell or hold NJR's or NJNG's securities and may be subject to revision or withdrawal at any time. Each rating set forth above should be evaluated independently of any other rating.

The timing and mix of any external financings will target a common equity ratio that is consistent with maintaining NJNG's current short-term and long-term credit ratings.