NEW JERSEY RESOURCES CORP

Cash Flows

Operating Activities

Cash flows from (used in) operating activities during the three months ended December 31, 2025, totaled approximately $26.7M, compared with approximately $(9.0)M during the three months ended December 31, 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 (used in) operating activities increased approximately $35.7M during the three months ended December 31, 2025, compared with the three months ended December 31, 2024, due primarily to higher base rates.

Investing Activities

Cash flows used in investing activities increased approximately $160.3M during the three months ended December 31, 2025, compared with the three months ended December 31, 2024, due primarily to the receipt of proceeds resulting from CEV's sale of the residential solar portfolio in the prior period, along with increased solar asset expenditures.

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 from financing activities increased approximately $125.6M during the three months ended December 31, 2025, compared with the three months ended December 31, 2024, due primarily to higher proceeds from short-term debt and solar sale leasebacks, partially offset by lower proceeds from the waiver discount feature of the DRP.

Part I

Credit Ratings

The table below summarizes NJNG's credit ratings as of December 31, 2025, issued by two rating entities, Moody's and Fitch:

The Moody's ratings and outlook were reaffirmed in June 2025. The Fitch ratings and outlook were reaffirmed in April 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.