Q - NEW JERSEY RESOURCES
For the period ended Jun 30, 2025. Filed Aug 5, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 5, 2025
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Storage and Transportation Segment
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. On June 26, 2025, Adelphia reached a settlement in principle with customers participating in the rate case. Adelphia and the rate case participants plan to file an offer of settlement with the FERC during the fourth quarter of fiscal 2025, the results of which are considered immaterial to the Company’s Unaudited Condensed Consolidated Financial Statements.
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 June 30, 2025, our investment in Steckman Ridge was $101.0M.
The financial results of S&T are summarized as follows:
| Three Months Ended · Nine Months Ended | ||||
|---|---|---|---|---|
| June 30, | June 30, | |||
| (Thousands) | 2025 | 2024 | 2025 | 2024 |
| Operating revenues (1) | $27,129 | $24,475 | $79,064 | $71,379 |
| Operating expenses | ||||
| Natural gas purchases | 366 | 220 | 705 | 847 |
| Operation and maintenance | 11,410 | 10,079 | 34,403 | 30,742 |
| Depreciation and amortization | 4,809 | 6,239 | 17,843 | 18,619 |
| Total operating expenses | 16,585 | 16,538 | 52,951 | 50,208 |
| Operating income | 10,544 | 7,937 | 26,113 | 21,171 |
| Other income, net | 2,059 | 2,539 | 6,384 | 7,300 |
| Interest expense, net | 5,741 | 5,773 | 17,527 | 17,574 |
| Income tax provision | 1,872 | 1,345 | 4,095 | 2,996 |
| Equity in earnings of affiliates | 908 | 782 | 3,030 | 1,860 |
| Net income | $5,898 | $4,140 | $13,905 | $9,761 |
(1)Includes related party transactions of approximately $1.3M during the nine months ended June 30, 2024, which are eliminated in consolidation. There were no related party transactions during the three and nine months ended June 30, 2025, and the three months ended June 30, 2024.
Net income remained relatively consistent during the three months ended June 30, 2025, compared with the three months ended June 30, 2024.
Net income increased approximately $4.1M during the nine months ended June 30, 2025, compared with the nine months ended June 30, 2024, due primarily to the following factors:
$7.7M increase in operating revenues due to higher hub services at Leaf River; partially offset by
$3.7M increase in O&M due to higher legal and consulting expenses.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.