NEW JERSEY RESOURCES CORP

Previous wording

We have four primary reporting segments as presented in the chart below:

Current wording

We have four primary reportable segments as presented in the chart below:

Previous wording

In addition to our four reporting segments above, we have nonutility operations that either provide corporate support services or do not meet the criteria to be treated as a separate reporting segment. These operations, which comprise HSO, include: appliance repair services, sales and installations at NJRHS and commercial real estate holdings at Commercial Realty & Resources Corp.

Current wording

In addition to our four reportable segments above, we have nonutility operations that either provide corporate support services or do not meet the criteria to be treated as a separate reportable segment. These operations, which comprise HSO, include: appliance repair services, sales and installations at NJRHS and commercial real estate holdings at Commercial Realty & Resources Corp.

Previous wording

Net (loss) income by reporting segment and other business operations, which are discussed in more detail within the operating results sections of each reporting segment and other business operations, are as follows:

Current wording

Net income by reportable segment and other business operations, which are discussed in more detail within the operating results sections of each reportable segment and other business operations, are as follows:

Previous wording

•$39.1M increase at CEV due primarily to the gain on the sale of the residential solar asset portfolio; and

Current wording

•$38.5M decrease at CEV due to the gain on sale of the residential solar portfolio in the prior period; partially offset by

Previous wording

The primary drivers of the changes noted above are described in more detail in the individual reporting segment and other business operations discussions.

Current wording

The primary drivers of the changes noted above are described in more detail in the individual reportable segment and other business operations discussions.

Previous wording

Assets by reporting segment and operations are as follows:

Current wording

Assets by reportable segment and operations are as follows:

Previous wording

Consolidated assets increased approximately $292.5M as of June 30, 2025, compared with September 30, 2024, due primarily to a $209.3M increase in utility plant expenditures, net and an $80.8M increase in customer receivables at NJNG.

Current wording

Consolidated assets increased approximately $327.4M as of December 31, 2025, compared with September 30, 2025, due primarily to the following factors:

Previous wording

Our management uses NFE, a non-GAAP financial measure, when evaluating our operating results. ES economically hedges its natural gas inventory with financial derivative instruments. NFE is a measure of the earnings based on eliminating timing differences surrounding the recognition of certain gains or losses, to effectively match the earnings effects of the economic hedges with the physical sale of natural gas and, therefore, eliminates the impact of volatility to GAAP earnings associated with the derivative instruments. To the extent we utilize forwards, futures, or other derivatives to hedge forecasted SREC production, unrealized gains and losses are also eliminated from NFE. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE.

Current wording

Our management uses net income and NFE, a non-GAAP financial measure, when evaluating our operating results. ES economically hedges its natural gas inventory with financial derivative instruments. NFE is a measure of the earnings based on eliminating timing differences surrounding the recognition of certain gains or losses, to effectively match the earnings effects of the economic hedges with the physical sale of natural gas and, therefore, eliminates the impact of volatility to GAAP earnings associated with the derivative instruments. To the extent we utilize forwards, futures, or other derivatives to hedge forecasted SREC production, unrealized gains and losses are also eliminated from NFE. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE.

Previous wording

NFE by reporting segment and other business operations, which are discussed in more detail within the operating results sections of each reporting segment and other business operations, is summarized as follows:

Current wording

NFE by reportable segment and other business operations, which are discussed in more detail within the operating results sections of each reportable segment and other business operations, is summarized as follows:

Previous wording

•$39.1M increase at CEV, as previously discussed.

Current wording

•$38.5M decrease at CEV, as previously discussed; partially offset by

Previous wording

•$69.1M increase at NJNG, as previously discussed; and

Current wording

•$16.9M increase at NJNG, as previously discussed; and

Previous wording

Natural Gas Distribution is comprised of NJNG, a natural gas utility that provides regulated natural gas service to residential and commercial customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey and also participates in the off-system sales and capacity release markets. The business is subject to various risks, which may include but are not limited to impacts to customer growth and customer usage, customer collections, the timing and costs of capital expenditures and construction of infrastructure projects, operating and financing costs, fluctuations in commodity prices and customer conservation efforts. In addition, NJNG may be subject to adverse economic conditions such as inflation and rising natural gas costs, certain regulatory actions, environmental remediation and severe weather conditions. It is often difficult to predict the impact of events or trends associated with these risks.

Current wording

Natural Gas Distribution is comprised of NJNG, a natural gas utility that provides regulated natural gas service to residential and commercial customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey and also participates in the off-system sales and capacity release markets. The business is subject to various risks, which may include but are not limited to impacts to customer growth and customer usage, customer collections, the timing and costs of capital expenditures and construction of infrastructure projects, operating and financing costs, fluctuations in commodity prices, customer conservation efforts and changes in how customers consume energy. In addition, NJNG may be subject to adverse economic conditions such as inflation and rising natural gas costs, certain regulatory actions, environmental remediation and severe weather conditions. It is often difficult to predict the impact of events or trends associated with these risks.

Previous wording

In January 2024, NJNG filed a base rate case with the BPU requesting a natural gas revenue increase of approximately $222.6M including a recovery of infrastructure investments, a change in the Company’s overall rate of return on rate base to 7.57% and a change in the return on common equity to 10.42%. On November 21, 2024, the BPU issued an order adopting a stipulation of settlement approving a $157.0M increase to base rates, effective November 21, 2024. The increase includes an overall rate of return on rate base of 7.08%, return on common equity of 9.6%, a common equity ratio of 54.0% and a composite depreciation rate of 3.21%.

Current wording

On November 21, 2024, the BPU issued an order adopting a stipulation of settlement approving a $157.0M increase to base rates, effective as of the date of the order. The increase includes an overall rate of return on rate base of 7.08%, return on common equity of 9.6%, a common equity ratio of 54.0% and a composite depreciation rate of 3.21%.

Previous wording

NJNG has significant annual capital expenditures associated with the management of its natural gas distribution and transmission system, including new utility plant expenditures associated with customer growth and its associated pipeline integrity management and infrastructure programs. Below is a summary of NJNG’s capital expenditures, including accruals, for the nine months ended June 30, 2025, and estimates of expected investments for fiscal 2025 and 2026:

Current wording

NJNG has significant annual capital expenditures associated with the management of its natural gas distribution and transmission system, including new utility plant expenditures associated with customer growth and its associated pipeline integrity management and infrastructure programs. Below is a summary of NJNG’s capital expenditures, including accruals, for the three months ended December 31, 2025, and estimates of expected investments for fiscal 2026 and 2027:

Previous wording

In October 2020, the BPU approved NJNG’s five-year IIP filing for $150.0M of transmission and distribution investments, effective November 1, 2020, which will be recovered through annual filings to adjust base rates. On July 25, 2025, NJNG submitted a filing with the BPU to extend the IIP through June 30, 2026.

Current wording

In October 2020, the BPU approved NJNG’s five-year IIP filing for $150.0M of transmission and distribution investments, effective November 1, 2020, which will be recovered through annual filings to adjust base rates.

Previous wording

During the nine months ended June 30, 2025, NJNG added 5,659 new customers. NJNG expects new customer additions, and those customers who added additional natural gas services to their premises to contribute approximately $6.7M of incremental Utility Gross Margin on an annualized basis.

Current wording

NJNG expects new customer additions during the three months ended December 31, 2025, and those customers who added additional natural gas services to their premises, to contribute approximately $2.2M of incremental Utility Gross Margin on an annualized basis.

Previous wording

SAVEGREEN conducts home energy audits and provides various grants, incentives and financing alternatives designed to encourage the installation of high-efficiency heating and cooling equipment and other energy efficiency upgrades. Depending on the specific incentive or approval, NJNG recovers costs associated with the programs over a three- to 10-year period through a tariff rider mechanism. In March 2021, the BPU approved a three-year SAVEGREEN program consisting of approximately $126.1M of direct investment, $109.4M in financing options, and $23.4M in O&M. On October 30, 2024, the BPU approved a settlement of the new SAVEGREEN program effective from January 1, 2025 to June 30, 2027, consisting of $205.0M of direct investment, $160.5M in financing options and $20.1M in O&M, which totals approximately $385.6M, with expected recoveries through September 30, 2025, of approximately $12.3M.

Current wording

SAVEGREEN conducts home energy audits and provides various grants, incentives and financing alternatives designed to encourage the installation of high-efficiency heating and cooling equipment and other energy efficiency upgrades. Depending on the specific incentive or approval, NJNG recovers costs associated with the programs over a three- to 10-year period through a tariff rider mechanism.

Previous wording

On December 18, 2024, the BPU approved NJNG's annual SAVEGREEN filing for the recovery of costs, which increased annual recoveries by approximately $3.1M, effective January 1, 2025.

Current wording

In December 2024, the BPU approved NJNG's annual SAVEGREEN filing for the recovery of costs, which increased annual recoveries by approximately $3.1M, effective January 1, 2025.

Previous wording

The following table summarizes loans, grants, rebates and related investments as of:

Current wording

The following table summarizes loans, grants, rebates and related investments through:

Previous wording

The CIP facilitates normalizing NJNG’s Utility Gross Margin for variances not only due to weather but also for other factors affecting customer usage, such as conservation and energy efficiency. Recovery of Utility Gross Margin for the non-weather variance through the CIP is limited to the amount of certain natural gas supply cost savings achieved and is subject to a variable margin revenue test. Additionally, recovery of the CIP Utility Gross Margin is subject to an annual earnings test. An annual review of the CIP must be filed by June 1, coincident with NJNG’s annual BGSS filing, during which NJNG can request rate changes to the CIP.

Current wording

The CIP facilitates normalizing NJNG’s Utility Gross Margin for variances due not only to weather but also other factors affecting customer usage, such as conservation and energy efficiency. Recovery of Utility Gross Margin for the non-weather variance through the CIP is limited to the amount of certain natural gas supply cost savings achieved and is subject to a variable margin revenue test. Additionally, recovery of the CIP Utility Gross Margin is subject to an annual earnings test. An annual review of the CIP must be filed by June 1, coincident with NJNG’s annual BGSS filing, during which NJNG can request rate changes to the CIP.

Previous wording

(1)Compared with the 20-year average, weather was 17.8% and 4.9% warmer-than-normal during the three and nine months ended June 30, 2025, respectively, and 12.6% and 11.0% warmer-than-normal during the three and nine months ended June 30, 2024, respectively.

Current wording

(1)Compared with the 20-year average, weather was 9.7% colder-than-normal during the three months ended December 31, 2025, and 8.1% warmer-than-normal during the three months ended December 31, 2024.

Previous wording

On May 30, 2025, the 2026 BGSS/CIP filing was submitted to the BPU requesting an increase of approximately $63.3M to annual revenues related to BGSS, an annual increase of approximately $6.1M related to its balancing charge and a decrease of approximately $25.5M to CIP rates, effective October 1, 2025. The balancing charge rate includes the cost of balancing natural gas deliveries with customer usage for sales and transportation customers, and balancing charge revenues are credited to BGSS.

Current wording

On December 17, 2025, the BPU approved, on a provisional basis, NJNG's annual BGSS/CIP filing, which included an increase of approximately $6.1M related to its balancing charge and a decrease of approximately $26.2M to CIP rates, effective January 1, 2026. The balancing charge rate includes the cost of balancing natural gas deliveries with customer usage for sales and transportation customers, and balancing charge revenues are credited to BGSS.

Previous wording

NJNG is eligible to receive financial incentives for reducing BGSS costs through a series of Utility Gross Margin-sharing programs that include off-system sales, capacity release and storage incentive programs. These programs are designed to encourage better utilization and hedging of NJNG’s natural gas supply and transportation and storage assets. Depending on the program, NJNG shares 80% or 85% of Utility Gross Margin generated by these programs with firm customers. Utility Gross Margin from incentive programs was approximately $3.9M and $2.9M during the three months ended June 30, 2025 and 2024, respectively, and approximately $14.5M and $16.2M during the nine months ended June 30, 2025 and 2024, respectively.

Current wording

NJNG is eligible to receive financial incentives for reducing BGSS costs through a series of Utility Gross Margin-sharing programs that include off-system sales, capacity release and storage incentive programs. These programs are designed to encourage better utilization and hedging of NJNG’s natural gas supply and transportation and storage assets. Depending on the program, NJNG shares 80% or 85% of Utility Gross Margin generated by these programs with firm customers. Utility Gross Margin from incentive programs was approximately $5.6M and $3.2M during the three months ended December 31, 2025 and 2024, respectively.

Previous wording

The maximum price per MMBtu was $40.02 and $20.98 and the minimum price was $1.05 and $0.89 for the nine months ended June 30, 2025 and 2024, respectively. A more detailed discussion of the impacts of the price of natural gas on operating revenues, natural gas purchases and cash flows can be found in the Operating Results and Cash Flow sections of Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

Current wording

The maximum price per MMBtu was $11.83 and $8.64 and the minimum price was $1.42 and $1.05 for the three months ended December 31, 2025 and 2024, respectively. A more detailed discussion of the impacts of the price of natural gas on operating revenues, natural gas purchases and cash flows can be found in the Operating Results and Cash Flow sections of Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

Previous wording

In March 2024, the BPU approved NJNG's annual SBC filing of RAC expenditures through June 30, 2023, which included an increase to the RAC annual recoveries of approximately $2.4M and an increase to the NJCEP annual recoveries of approximately $5.5M, effective April 1, 2024.

Current wording

In April 2025, the BPU approved NJNG's annual SBC filing of RAC expenditures through June 30, 2024, which included an increase to the RAC annual recoveries of approximately $2.4M and an increase to the NJCEP annual recoveries of approximately $1.6M, effective May 1, 2025.

Previous wording

On June 27, 2025, NJNG submitted its annual USF filing to the BPU requesting a decrease to annual recoveries of approximately $0.5M, effective October 1, 2025.

Current wording

In September 2025, the BPU approved NJNG's annual USF filing, which resulted in a decrease to annual recoveries of approximately $1.0M, effective October 1, 2025.

Previous wording

On April 23, 2025, the BPU approved NJNG's annual SBC filing of RAC expenditures through June 30, 2024, which included an increase to the RAC annual recoveries of approximately $2.4M and an increase to the NJCEP annual recoveries of approximately $1.6M, effective May 1, 2025.

Current wording

In September 2025, NJNG submitted its annual SBC filing to the BPU requesting approval of RAC expenditures through June 2025, which included a decrease to the RAC annual recoveries of approximately $0.9M and a decrease to the NJCEP annual recoveries of approximately $5.0M, which would be effective April 1, 2026.

Previous wording

NJNG is responsible for the environmental remediation of former MGP sites, which contain contaminated residues from former gas manufacturing operations that ceased operating at these sites by the mid-1950s and, in some cases, had been discontinued many years earlier. Actual MGP remediation costs may vary from management’s estimates due to the developing nature of remediation requirements, regulatory decisions by the NJDEP and related litigation. NJNG reviews these costs periodically, and at least annually, and adjusts its liability and corresponding regulatory asset as necessary to reflect its expected future remediation obligation. Accordingly, NJNG recognized a regulatory asset and an obligation of approximately $155.9M as of June 30, 2025, a decrease of approximately $5.8M compared with September 30, 2024. See Note 13. Commitments and Contingent Liabilities for more details.

Current wording

NJNG is responsible for the environmental remediation of former MGP sites, which contain contaminated residues from former gas manufacturing operations that ceased operating at these sites by the mid-1950s and, in some cases, had been discontinued many years earlier. Actual MGP remediation costs may vary from management’s estimates due to the developing nature of remediation requirements, regulatory decisions by the NJDEP and related litigation. NJNG reviews these costs periodically, and at least annually, and adjusts its liability and corresponding regulatory asset as necessary to reflect its expected future remediation obligation. Accordingly, NJNG recognized a regulatory asset and an obligation of approximately $167.5M as of December 31, 2025, an increase of approximately $0.5M compared with September 30, 2025. See Note 13. Commitments and Contingent Liabilities for a more detailed description of MGP expenditures.

Previous wording

(1)Includes nonutility revenue of approximately $0.2M and $0.3M during the three months ended June 30, 2025 and 2024, respectively, and $0.9M and $1.0M for the nine months ended June 30, 2025 and 2024, respectively, for lease agreements with various NJR subsidiaries leasing office space from NJNG at the Company’s headquarters, which are eliminated in consolidation.

Current wording

(1)Includes nonutility revenue of approximately $0.2M and $0.3M for the three months ended December 31, 2025 and 2024, respectively, for lease agreements with various NJR subsidiaries leasing office space from NJNG at the Company’s headquarters, which are eliminated in consolidation.

Previous wording

(3)Includes related party transactions of approximately $1.6M and$2.3M during the three months ended June 30, 2025 and 2024, respectively, and $6.3M and $7.0M during nine months ended June 30, 2025 and 2024, respectively, a portion of which is eliminated in consolidation.

Current wording

(3)Includes related party transactions of approximately $1.6M and $2.3M during the three months ended December 31, 2025 and 2024, respectively, a portion of which is eliminated in consolidation.

Previous wording

Operating revenues increased 29.7% and natural gas purchases increased 34.5% during the three months ended June 30, 2025, compared with the three months ended June 30, 2024. Operating revenues increased 26.5% and natural gas purchases increased 26.1% during the nine months ended June 30, 2025, compared with the nine months ended June 30, 2024.

Current wording

Operating revenues increased 22.9% and natural gas purchases increased 31.3% during the three months ended December 31, 2025, compared with the three months ended December 31, 2024.

Previous wording

(1)Riders and other includes changes in rider rates, including those related to Energy Efficiency, NJCEP and other programs, which is offset in regulatory rider expense.

Current wording

(1)Riders and other includes changes in rider rates, including those related to SAVEGREEN, NJCEP and other programs, which is offset in regulatory rider expense.

Previous wording

Management uses Utility Gross Margin, a non-GAAP financial measure, when evaluating the operating results of NJNG. NJNG's Utility Gross Margin is defined as operating revenues less natural gas purchases, sales tax, and regulatory rider expenses. This measure differs from gross margin as presented on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization. Utility Gross Margin may also not be comparable to the definition of gross margin used by others in the natural gas distribution business and other industries. Management believes that Utility Gross Margin provides a meaningful basis for evaluating utility operations since natural gas costs, sales tax and regulatory rider expenses are included in operating revenues and passed through to customers and, therefore, have no effect on Utility Gross Margin. Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, the comparable GAAP measure.

Current wording

Management uses Utility Gross Margin, a non-GAAP financial measure, when evaluating the operating results of NJNG. NJNG's Utility Gross Margin is defined as operating revenues less natural gas purchases, sales tax, and regulatory rider expenses. This measure differs from gross margin as presented on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization. Utility Gross Margin may also not be comparable to the definition of gross margin used by others in the natural gas distribution business and other industries. We believe that Utility Gross Margin provides a meaningful basis for evaluating utility operations since natural gas costs, sales tax and regulatory rider expenses are included in operating revenues and passed through to customers and, therefore, have no effect on Utility Gross Margin. Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, the comparable GAAP measure.

Previous wording

(1)Excludes SG&A of approximately $27.1M and $28.8M for the three months ended June 30, 2025 and 2024, respectively, and $85.0M and $87.7M for the nine months ended June 30, 2025 and 2024, respectively.

Current wording

(1)Excludes SG&A of approximately $23.7M and $26.1M for the three months ended December 31, 2025 and 2024, respectively.

Previous wording

•Utility Gross Margin generated from off-tariff customers, as well as interruptible customers.

Current wording

•Utility Gross Margin generated from off-tariff and interruptible customers.

Previous wording

Utility firm gross margin increased approximately $23.7M and $119.2M during the three and nine months ended June 30, 2025, compared with the three and nine months ended June 30, 2024, respectively, due primarily to an increase in base rates, effective November 21, 2024.

Current wording

Utility firm gross margin increased approximately $22.6M during the three months ended December 31, 2025, compared with the three months ended December 31, 2024, due primarily to an increase in base rates, effective November 21, 2024.

Previous wording

BGSS incentive programs increased during the three months ended June 30, 2025, compared with the three months ended June 30, 2024, due primarily to increased margins from storage and off-system sales. BGSS incentive programs decreased during the nine months ended June 30, 2025, compared with the nine months ended June 30, 2024, due primarily to decreased margins from storage due to timing differences.

Current wording

BGSS incentive programs increased during the three months ended December 31, 2025, compared with the three months ended December 31, 2024, due primarily to higher margins from off-system sales and capacity release related to market volatility due to colder weather.

Previous wording

•$7.5M increase in depreciation expense as a result of additional utility plant being placed into service.

Current wording

•$4.9M increase in depreciation expense as a result of additional utility plant being placed into service.

Previous wording

Capital expenditures related to clean energy projects are subject to change due to a variety of factors that may affect our ability to commence operations at these projects on a timely basis or at all, including logistics associated with the start-up of commercial solar projects, such as timing of construction schedules, the permitting and regulatory process, any delays related to electric grid interconnection, economic trends, changes in law, governmental policies, or incentives that support clean energy projects, including changes to U.S. trade policy and the impact tariffs and other costs and assessments may have on equipment used to construct, generate, and deliver clean energy, unforeseen events and the ability to access capital or allocation of capital to other investments or business opportunities. CEV is also subject to various risks, which may include our ability to identify and develop commercial solar asset investments, impacts to our supply chain and our ability to source materials for construction.

Current wording

Capital expenditures related to clean energy projects are subject to change due to a variety of factors that may affect our ability to commence operations at these projects on a timely basis or at all, including logistics associated with the start-up of commercial solar projects, changes to U.S. trade policy and the impact tariffs and other costs and assessments may have on equipment used to construct, generate, and deliver clean energy, such as timing of construction schedules, the permitting and regulatory process, any delays related to electric grid interconnection. Other factors include economic trends, changes in law, governmental policies, or incentives that support clean energy projects, unforeseen events and the ability to access capital or allocation of capital to other investments or business opportunities. CEV is also subject to various risks, which may include our ability to identify and develop commercial solar asset investments, impacts to our supply chain and our ability to source materials for construction.

Previous wording

On July 4, 2025, OBBBA was signed into law, which modifies several pre-existing provisions of the Inflation Reduction Act, including the phase-out of certain clean energy tax credits. To be eligible for ITCs, solar facilities must be placed in service by December 31, 2027, unless construction begins before July 4, 2026, and must satisfy the prohibited foreign entity material assistance requirements, unless construction begins before December 31, 2025.

Current wording

In July 2025, OBBBA was signed into law, which modifies several pre-existing provisions of the Inflation Reduction Act and other laws, including the phase-out of certain clean energy tax credits. In order to be eligible for ITCs, solar facilities must be placed in service by December 31, 2027, unless construction begins before July 4, 2026, and must satisfy the prohibited foreign entity material assistance requirements, unless construction begins before December 31, 2025.