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-of-service 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 Dths 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.

In September 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. In June 2025, Adelphia reached a settlement in principle with customers participating in the rate case. In August 2025, Adelphia and the rate case participants filed an offer of settlement with the FERC, which was approved on November 4, 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, 2026, 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 that were immaterial during the three and nine months ended June 30, 2026 and 2025.

Net income increased approximately $2.9M and $9.9M during the three and nine months ended June 30, 2026, compared with the three and nine months ended June 30, 2025, respectively, due primarily to higher operating income at Adelphia due primarily to the impact of its recent rate case settlement, as previously discussed, and higher firm storage rates at Leaf River.

Management uses Adjusted EBITDA, a non-GAAP financial measure, when evaluating the operating results of S&T. Adjusted EBITDA is net income before interest, income taxes, depreciation and amortization, corporate overhead and other income, net. 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.

Adjusted EBITDA

A reconciliation of S&T's net income, the most directly comparable GAAP financial measure, to Adjusted EBITDA is as follows:

(1)Consists primarily of interest income.

Adjusted EBITDA increased approximately $4.3M and $11.6M during the three and nine months ended June 30, 2026 compared with the three and nine months ended June 30, 2025, respectively, due primarily to higher net income, as previously discussed.

Part I