What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-11-20 compared with 2024-11-26 · 282 added, 444 removed, 1082 unchanged (40% of the section changed)

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Factors that the Company analyzes in determining whether an impairment in its long-lived assets exists include:

a significant decrease in the market price of a long-lived asset;

a significant adverse change in the extent in which a long-lived asset is being used in its physical condition;

legal proceedings or other contributing factors;

significant business climate changes;

accumulations of costs in significant excess of the amounts expected;

a current-period operating or cash flow loss combined with a history of such events;

and current expectations that more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its estimated useful life.

During fiscal 2024 and 2023, there were no events or circumstances that indicated that the carrying value of long-lived assets or finite-lived intangibles was not recoverable.

Debt Issuance Costs

Debt issuance costs are capitalized and amortized as interest expense on a basis which approximates the effective interest method over the term of the related debt.

Debt issuance costs are presented as a direct deduction from the carrying amount of the related debt.

Debt for the total unamortized debt issuance costs that are recorded as a reduction to long-term debt on the Consolidated Balance Sheets.

Sale Leasebacks

NJNG utilizes sale leaseback arrangements as a financing mechanism to fund certain of its capital expenditures related to natural gas meters, whereby the physical asset is sold concurrent with an agreement to lease the asset back.

These agreements include options to renew the lease or repurchase the asset at the end of the term.

As NJNG retains control of the natural gas meters, these arrangements do not qualify as a sale.

Proceeds from sale leaseback transactions are accounted for as financing arrangements and are included in long-term debt on the Consolidated Balance Sheets.

In addition, for certain of its commercial solar energy projects, the Company enters into lease agreements that provide for the sale of commercial solar energy assets to third parties and the concurrent leaseback of the assets.

For sale leaseback transactions where the Company has concluded that the arrangement does not qualify as a sale as the Company retains control of the underlying assets, the Company uses the financing method to account for the transaction.

Under the financing method, the Company recognizes the proceeds received from the buyer-lessor that constitute a payment to acquire the solar energy asset as a financing arrangement, which is recorded as a component of debt on the Consolidated Balance Sheets.

The Company continues to operate its solar assets and is responsible for related expenses and entitled to retain the revenue generated from RECs and energy sales.

ITCs and other tax attributes associated with these solar projects transfer to the buyer;

however, the payments are structured so that CEV is compensated for the transfer of the related tax attributes.

Accordingly, CEV recognizes the equivalent value of the tax attributes in other income on the Consolidated Statements of Operations over the respective five-year ITC recapture periods, starting with the second year of the lease.

Debt for more details regarding sale leaseback transactions recorded as financing arrangements.

Environmental Contingencies

Loss contingencies are recorded as liabilities when it is probable a liability has been incurred and the amount of the loss is reasonably estimable in accordance with accounting standards for contingencies.

Estimating probable losses requires an analysis of uncertainties that often depend upon judgments about potential actions by third parties.

Accruals for loss contingencies are recorded based on an analysis of potential results.

With respect to environmental liabilities and related costs, NJNG periodically, and at least annually, performs an environmental review of MGP sites, including a review of potential liability for investigation and remedial action.

NJNG’s estimate of these liabilities is based upon known facts, existing technology and enacted laws and regulations in place when the review was completed.

Where it is probable that costs will be incurred, and the information is sufficient to establish a range of possible liability, NJNG accrues the most likely amount in the range.

If no point within the range is more likely than the other, it is NJNG’s policy to accrue the lower end of the range.

The actual costs to be incurred by NJNG are dependent upon several factors, including final determination of remedial action, changing technologies and governmental regulations, the ultimate ability of other responsible parties to pay and any insurance recoveries.

NJNG will continue to seek recovery of MGP-related costs through the RAC.

If any future regulatory position indicates that the recovery of such costs is not probable, the related non-recoverable costs would be charged to income in the period of such determination.

Commitments and Contingent Liabilities for more details.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Pension and Postemployment Plans

The Company has two noncontributory defined pension plans covering eligible employees, including officers.

Benefits are based on each employee’s years of service and compensation.

The Company’s funding policy is to contribute annually to these plans at least the minimum amount required under the Employee Retirement Income Security Act, as amended, and not more than can be deducted for federal income tax purposes.

Plan assets consist of equity securities, fixed-income securities and short-term investments.

The Company also provides two primarily noncontributory medical and life insurance plans for eligible retirees and dependents.

Medical benefits, which make up the largest component of the plans, are based upon an age and years-of-service vesting schedule and other plan provisions.

Funding of these benefits is made primarily into Voluntary Employee Beneficiary Association trust funds.

Employee Benefit Plans for a more detailed description of the Company’s pension and postemployment plans.

Asset Retirement Obligations

The Company recognizes AROs related to the costs associated with cutting and capping NJNG’s main and service natural gas distribution mains, which is required by New Jersey law when taking such natural gas distribution mains out of service.

The Company also recognizes AROs associated with CEV’s solar assets when there are decommissioning provisions in lease agreements that require removal of the asset at the end of the lease term.

AROs are initially recognized when the legal obligation to retire an asset has been incurred and a reasonable estimate of fair value can be made.

The discounted fair value is recognized as an ARO liability with a corresponding amount capitalized as part of the carrying cost of the underlying asset.

The obligation is subsequently accreted to the future value of the expected retirement cost, and the corresponding asset retirement cost is depreciated over the life of the related asset.

Accretion expense associated with CEV’s AROs are recognized as a component of operations and maintenance expense on the Consolidated Statements of Operations.

Accretion amounts associated with NJNG’s AROs are recognized as part of its depreciation expense, and the corresponding regulatory asset and liability will be shown gross on the Consolidated Balance Sheets.

Estimating future removal costs requires management to make significant judgments because most of the removal obligations span long time frames and removal may be conditioned upon future events.

Asset removal technologies are also constantly changing, which makes it difficult to estimate removal costs.

Accordingly, inherent in the estimate of AROs are various assumptions including the ultimate settlement date, expected cash outflows, inflation rates, credit-adjusted risk-free rates and consideration of potential outcomes where settlement of the AROs can be conditioned upon events.

In the latter case, the Company develops possible retirement scenarios and assigns probabilities based on management’s reasonable judgment and knowledge of industry practice.

Accordingly, AROs are subject to change.

The following is an analysis of the change in the Company’s ARO for the fiscal years ended September 30:

(Thousands) Balance at October 1 Accretion Additions Change in assumptions Retirements Balance at period end

NJNG $ 55,285 3,039 152 2,925 ( 1,727 ) $ 59,674

NJRCEV $ 6,708 236 79 — — $ 7,023

NJNG $ 49,874 2,693 155 4,089 ( 1,526 ) $ 55,285

NJRCEV $ 5,161 213 1,334 — — $ 6,708

Accretion for the next five years, for the fiscal years ended September 30, is estimated to be as follows:

(Thousands) 2025 2026 2027 2028 2029 Total

Estimated Accretion $ 3,403 3,573 3,751 3,948 4,165 $ 18,840

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Accumulated Other Comprehensive Income

The following table presents the changes in the components of accumulated other comprehensive income, net of related tax effects:

(Thousands) Cash Flow Hedges Postemployment Benefit Obligation Total

Balance as of September 30, 2022 $ ( 8,322 ) $ 3,496 $ ( 4,826 )

Other comprehensive income, net of tax

Other comprehensive income, before reclassifications, net of tax of $ 0 , $ 1,922 and $ 1,922 , respectively

— ( 6,350 ) ( 6,350 )

Amounts reclassified from accumulated other comprehensive income, net of tax of $( 317 ), $( 49 ) and $( 366 ), respectively

1,053 164 (1) 1,217

Net current-period other comprehensive income, net of tax of $( 317 ), $ 1,873 and $ 1,556 , respectively

1,053 ( 6,186 ) ( 5,133 )

Balance as of September 30, 2023 $ ( 7,269 ) $ ( 2,690 ) $ ( 9,959 )

Other comprehensive income, net of tax

Other comprehensive income, before reclassifications, net of tax of $ 0 , $( 1,002 ) and $( 1,002 ), respectively

— 3,360 3,360

Amounts reclassified from accumulated other comprehensive income, net of tax of $( 317 ), $ 296 and $( 21 ), respectively

1,054 ( 976 ) (1) 78

Net current-period other comprehensive income, net of tax of $( 317 ), $( 706 ) and $( 1,023 ), respectively

1,054 2,384 3,438

Balance as of September 30, 2024 $ ( 6,215 ) $ ( 306 ) $ ( 6,521 )

(1) Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Consolidated Statements of Operations.

For more details, see Note 11.

Employee Benefit Plans .

Reclassification

Certain prior period amounts have been reclassified to conform to the current period presentation.

Intangible assets, net previously classified in its own category on the Consolidated Balance Sheets has been reclassified into other noncurrent assets.

Other noncurrent assets and other noncurrent liabilities previously classified in their own categories on the Consolidated Statements of Cash Flow have been combined into one category.

Recently Adopted Updates to the Accounting Standards Codification

Business Combinations

In October 2021, the FASB issued ASU No.

2021-08 , an amendment to ASC 805, Business Combinations , which requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers .

The guidance was effective for the Company beginning October 1, 2023, and was applied on a prospective basis to new acquisitions following the date of adoption.

As the Company has not executed a transaction that would qualify as a business combination, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption.

Derivatives and Hedging

In March 2022, the FASB issued ASU No.

2022-01 , an amendment to ASC 815, Derivatives and Hedging , which addresses fair value hedge accounting of interest rate risk for portfolios of financial assets.

This update further clarifies guidance previously released in ASU No.

2017-12, which established the ”last-of-layer” method, and this update renames that method as the “portfolio layer” method.

The guidance was effective for the Company beginning October 1, 2023.

As the Company does not currently apply hedge accounting to any of its risk management activities, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Financial Instruments

In March 2022, the FASB issued ASU No.

2022-02 , an amendment to ASC 326, Financial Instruments-Credit Losses , which eliminates the accounting guidance for creditors in troubled debt restructuring.

It also aligns conflicting disclosure requirement guidance in ASC 326 by requiring disclosure of current-period gross write-offs by year of origination.

The amendment also adds new disclosures for creditors with loan refinancing and restructuring for borrowers experiencing financial difficulty.

The guidance was effective for the Company beginning October 1, 2023.

Since the Company has not experienced a troubled debt restructuring, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption.

Other Recent Updates to the Accounting Standards Codification

Fair Value Measurement

In June 2022, the FASB issued ASU No.

2022-03 , an amendment to ASC 820, Fair Value Measurement .

The amendment clarifies the fair value principles when measuring the fair value of an equity security subject to a contractual sale restriction.

The guidance became effective for the Company on October 1, 2024, and the Company elected to apply it on a prospective basis.

At this time, the Company does not have equity securities subject to contractual sale restrictions, and therefore this amendment would only impact the Company if, in the future, it entered into such transactions.

In March 2023, the FASB issued ASU No.

2023-01 , an amendment to ASC 842, Leases, which applies to arrangements between related parties under common control.

This update requires that all entities with common control arrangements classify and account for these leases on the same basis as an arrangement with an unrelated party.

If the lessee in these types of arrangements continues to control the use of the underlying asset through a lease, the leasehold improvements are to be amortized over the improvements’ useful life to the common control group, regardless of the lease term.

The guidance became effective for the Company on October 1, 2024, and the Company elected to apply it on a prospective basis.

At this time, the Company does not have leases that are impacted by this amendment, and therefore it would only impact the Company if, in the future, it entered into applicable transactions.

Business Combinations

In August 2023, the FASB issued ASU No.

2023-05 , an amendment to ASC 805, Business Combinations , which addresses how a joint venture should recognize contributions received upon its formation.

Joint ventures must account for initial assets and liabilities received at fair value on the date the joint venture is formed.

The guidance is effective for the Company for joint ventures formed beginning January 1, 2025, and the Company can elect to apply it either prospectively or retrospectively back to a joint venture’s formation date provided adequate information is available.

Early adoption is permitted.

This amendment would only impact the Company upon adoption if, in the future, it entered into an applicable transaction.

Segment Reporting

In November 2023, the FASB issued ASU No.

2023-07 , an amendment to ASC 280, Segment Reporting , which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

The update requires entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker and included within segment profit and loss, and it enhances interim disclosure requirements to conform with annual requirements.

This update became effective for the Company on October 1, 2024, for the first annual period and will become effective on October 1, 2025, for the interim periods.

It will be applied retrospectively to all periods presented and the Company is currently evaluating the amendment to understand the impacts on its future disclosures.

In December 2023, the FASB issued ASU No.

2023-09 , an amendment to ASC 740, Income Taxes , which requires disaggregated information about a reporting entity’s effective tax rate reconciliation and income taxes paid.

It will provide investors more detailed income tax disclosures that would be useful in making capital allocation decisions.

The guidance is effective for the Company on October 1, 2025, and can be applied either prospectively or retrospectively.

Early adoption is permitted.

The Company is currently evaluating the amendment to understand the impacts on its financial position, results of operations, cash flows and disclosures upon adoption.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU No.

2024-03 , an amendment to ASC 220, Income Statement Reporting , which requires more detailed information about specified categories of expenses included in certain captions presented on the face of the income statement.

This update becomes effective for the Company on October 1, 2027, for the first annual period and on October 1, 2028, for the interim periods.

The Company can elect to apply it either prospectively or retrospectively to all periods presented, with early adoption permitted.

The Company is currently evaluating the amendment to understand the impacts on its disclosures upon adoption.

Revenue is recognized when a performance obligation is satisfied by transferring control of a product or service to a customer.

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The Company also elected the practical expedient to exclude from the transaction price all sales taxes that are assessed by a governmental authority and therefore presents sales tax net in operating revenues on the Consolidated Statements of Operations.

Below is a listing of performance obligations that arise from contracts with customers, along with details on the satisfaction of each performance obligation, the significant payment terms and the nature of the goods and services being transferred, by reporting segment and other business operations:

Revenue Recognized Over Time:

Segment/ Operations Performance Obligation Description

Operations Performance Obligation Description

NJNG Natural gas utility sales NJNG’s performance obligation is to provide natural gas to residential, commercial and industrial customers as demanded, based on regulated tariff rates, which are established by the BPU.

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Revenue is recognized as invoiced and the payment is due each month for the previous month’s services.

CEV Residential solar electricity CEV provides access to residential rooftop and ground-mount solar equipment to customers who then pay the Company a monthly fee.

The performance obligation is to provide electricity to the customer based on generation from the underlying residential solar asset and is satisfied upon transfer of electricity generated.

Revenue is derived from the contract terms and is recognized as invoiced, with the payment due each month for the previous month’s services.

CEV Renewable energy certificates Certain CEV projects generate TRECs and SREC IIs under the established ADI Program.

CEV Residential solar electricity CEV provided access to residential rooftop and ground-mount solar equipment to customers who then paid the Company a monthly fee.

The performance obligation was to provide electricity to the customer based on generation from the underlying residential solar asset and was satisfied upon transfer of electricity generated.

Revenue was derived from the contract terms and was recognized as invoiced, with the payment due each month for the previous month’s services.

In November 2024, CEV’s residential solar portfolio was sold to a third party.

CEV Renewable energy certificates Certain CEV projects generate TRECs and SREC IIs under the established ADI & CSI programs.

A TREC or SREC II is created for every MWh of electricity produced by a solar generator.

The performance obligation of CEV is to generate electricity.

TRECs and SREC IIs under the ADI Program are purchased monthly by a REC Administrator.

TRECs and SREC IIs under the ADI & CSI programs are purchased monthly by a REC Administrator.

Revenue is recognized upon generation.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Revenue Recognized Over Time (continued):

Operations Performance Obligation Description

ES Natural gas services The performance obligation of ES is to provide the customer transportation, storage and asset management services on an as-needed basis.

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HSO Service contracts Home Services enters into service contracts with homeowners to provide maintenance and replacement of applicable heating, cooling or ventilation equipment.

NJR Retail enters into warranty contracts with homeowners for various appliances.

All services provided relate to a distinct performance obligation which is to provide services for the specific equipment over the term of the contract.

Revenue is recognized on a straight-line basis over the term of the contract and payment is due upon receipt of the invoice.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Revenue Recognized at a Point in Time:

Operations Performance Obligation Description

ES Natural gas services For a permanent release of pipeline capacity, the performance obligation of ES is the release of the pipeline capacity associated with certain natural gas transportation contracts and the transfer of the underlying contractual rights to the counterparty.

8 unchanged sentences

Revenue is recognized at a point in time upon completion of the installation, which is when the customer is billed.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during fiscal 2024, 2023 and 2022 are as follows:

Disaggregated revenues from contracts with customers by product line and by reportable segment and other business operations during fiscal 2025, 2024 and 2023 are as follows:

(Thousands) NJNG CEV ES S&T HSO Total

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Derivative instruments 240,364 67,686 (4) 405,804 — — 713,854

Eliminations (2)

— — 4,875 — — 4,875

Revenues out of scope 211,617 67,686 405,804 — — 685,107

17 unchanged sentences

Total operating revenues $ 1,018,482 130,563 490,266 94,851 62,377 $ 1,796,539

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

(Thousands) NJNG CEV ES S&T HSO Total

Natural gas utility sales (1)

$ 845,392 — — — — 845,392

Natural gas services — — 76,975 92,859 — 169,834

17 unchanged sentences

(4) Includes SREC revenue.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the fiscal years ended September 30, are as follows:

Disaggregated revenues from contracts with customers by customer type and by reportable segment and other business operations during the fiscal years ended September 30, are as follows:

(Thousands) NJNG CEV ES S&T HSO Total

17 unchanged sentences

Total operating revenues $ 1,011,284 124,131 681,446 88,700 57,433 $ 1,962,994

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Customer Accounts Receivable/Credit Balances and Deposits

3 unchanged sentences

Balance as of September 30, 2023 $ 97,540 $ 19,100 $ 44,910

(Decrease) increase ( 124,757 ) 5,331 11,664

Increase (decrease) 7,991 994 ( 6,315 )

Balance as of September 30, 2024 105,531 20,094 38,595

1 unchanged sentence

Balance as of September 30, 2025 $ 109,366 $ 24,194 $ 31,297

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

The following table provides information about receivables, which are included within accounts receivable, billed and unbilled, and customers’ credit balances and deposits, respectively, on the Consolidated Balance Sheets as of September 30:

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The audit is still in progress.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

NJNG is subject to cost-based regulation;

7 unchanged sentences

In addition, NJNG is permitted to implement certain BGSS rate changes on a provisional basis with proper notification to the BPU.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Regulatory assets and liabilities included on the Consolidated Balance Sheets for NJNG are comprised of the following, as of September 30:

21 unchanged sentences

Tax Act impact $ 170,309 $ 175,328

$ 175,328 $ 180,347

Derivatives at fair value, net — 404

1 unchanged sentence

Total noncurrent regulatory liabilities $ 171,177 $ 175,847

(1) Reflects the re-measurement and subsequent amortization of NJNG’s net deferred tax liabilities as a result of the change in federal tax rates enacted in the Tax Act.

The Tax Act is an Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, previously known as The Tax Cuts and Jobs Act of 2017.

Other noncurrent regulatory assets include deferred pandemic costs of approximately $ 3.9 M as of both September 30, 2024 and 2023, primarily related to a portion of bad debt associated with customer accounts receivable resulting from the impacts of the novel coronavirus disease pandemic.

These costs are eligible for future regulatory recovery and are included in the base rate case filed on January 31, 2024.

Regulatory assets and liabilities included on the Consolidated Balance Sheets for Adelphia are comprised of the following, as of September 30:

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Recovery of regulatory assets is subject to FERC approval.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

New Jersey Clean Energy Program

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NJNG recovers the costs associated with its portion of the NJCEP obligation through its NJCEP rider, with interest.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Conservation Incentive Program

22 unchanged sentences

Consistent with GAAP, amounts recorded within accumulated depreciation for regulatory accounting purposes are reclassified out of accumulated depreciation to either a regulatory asset or a regulatory liability depending on whether actual cost of removal is still subject to collection or amounts overcollected will be refunded back to customers.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Other Regulatory Assets

1 unchanged sentence

NJNG’s related costs to maintain the operational integrity of its distribution and transmission main are recoverable, without interest, subject to BPU review and approval.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Overrecovered Natural Gas Costs

3 unchanged sentences

Conversely, underrecovered natural gas costs generally occur during periods when NJNG’s BGSS rates are lower than actual costs, in which case NJNG records a regulatory asset and requests amounts to be recovered from customers in the future.

Tax Act Impact

The Tax Act is an Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, previously known as The Tax Cuts and Jobs Act of 2017, and reflects the re-measurement and subsequent amortization of net deferred tax liabilities as a result of the change in federal tax rates.

The following is a description of certain regulatory proceedings during fiscal 2024 and 2025 :

On January 31, 2024, NJNG filed a base rate case with the BPU requesting a natural gas revenue increase of approximately $ 222.6 M 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 May 15, 2024, the filing was updated to reflect actual results through March 31, 2024, which reduced the requested increase to approximately $ 219.6 M.

On August 7, 2024, the filing was updated to reflect actual results through June 30, 2024, which modified the requested increase to approximately $ 219.9 M.

On November 21, 2024, the BPU issued an order adopting a stipulation of settlement approving a $ 157.0 M 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 9.60 %, a common equity ratio of 54.0 % and a depreciation rate of 3.21 %.

On November 21, 2024, the BPU issued an order adopting a stipulation of settlement approving a $ 157.0 M 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 %.

BGSS rates are normally revised on an annual basis.

3 unchanged sentences

NJNG’s annual BGSS and CIP filings are summarized as follows:

• In February 2023, NJNG advised the BPU of a bill credit and a reduction to the BGSS rate for residential and small commercial customers, which reduced recoveries by approximately $ 29.9 M, effective March 1, 2023, and was approved on a final basis by the BPU on April 12, 2023.

Bill credits provided to customers from March 2023 through May 2023 totaled approximately $ 32.4 M.

• 2023 BGSS/CIP filing — On April 30, 2024, the BPU approved on a final basis NJNG’s annual filing, which included a decrease of approximately $ 38.6 M to the annual revenues credited to BGSS, an annual decrease of approximately $ 7.4 M related to its balancing charge and an increase of approximately $ 27.0 M to CIP rates for residential and small business customers, effective October 1, 2023.

• 2024 BGSS/CIP filing — On May 31, 2024, NJNG filed its annual petition to modify its BGSS rates for residential and small business customers, the balancing charge and CIP rates.

On September 25, 2024, the BPU approved, on a provisional basis, a decrease of approximately $ 31.0 M to the annual revenues credited to BGSS, an annual increase of approximately $ 40.3 M related to its balancing charge and a decrease of approximately $ 0.8 M to CIP rates, effective October 1, 2024.

• 2024 BGSS/CIP filing — On May 21, 2025, the BPU approved, on a final basis, NJNG’s 2025 BGSS/CIP filing, which included a decrease of approximately $ 31.0 M to the annual revenues credited to BGSS, an annual increase of approximately $ 40.3 M related to its balancing charge and a decrease of approximately $ 0.8 M to CIP rates, effective October 1, 2024.

• 2025 BGSS/CIP filing — On May 30, 2025, the 2026 BGSS/CIP filing was submitted to the BPU requesting an increase of approximately $ 63.3 M to annual revenues related to BGSS, an annual increase of approximately $ 6.1 M related to its balancing charge and a decrease of approximately $ 25.5 M to CIP rates.

If approved, the rates are expected to be effective during fiscal 2026.

• On October 31, 2025, NJNG notified the BPU that it intends to self-implement an increase to its BGSS rate, effective December 1, 2025, which will result in an increase of approximately $ 38.1 M to revenues related to BGSS for the December 2025 through September 2026 period.

BGSS Incentive Programs

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Energy Efficiency Programs

SAVEGREEN conducts home energy audits and provides various grants, incentives and financing alternatives, which are designed to encourage the installation of high efficiency heating and cooling equipment and other upgrades to promote energy efficiency to its residential and commercial customers while stimulating state and local economies through the creation of jobs.

Depending on the specific initiative 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 that included approximately $ 126.1 M of direct investment, approximately $ 109.4 M in financing options and approximately $ 23.4 M in O&M.

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 $ 126.1 M of direct investment, $ 109.4 M in financing options and $ 23.4 M in O&M.

In April 2024, the BPU approved NJNG’s petition that extended NJNG’s SAVEGREEN program through December 31, 2024, with an additional $ 76.9 M in order to meet customer demand for this program.

On October 30, 2024, the BPU approved a new SAVEGREEN program effective from January 1, 2025 to June 30, 2027, consisting of approximately $ 205.0 M of direct investment, $ 160.5 M in financing options and $ 20.1 M in O&M, which totals approximately $ 385.6 M.

Recoveries through September 30, 2025, were approximately $ 12.3 M.

SAVEGREEN investments and costs are filed with the BPU on an annual basis.

NJNG’s annual EE filings are summarized as follows:

• 2023 EE filing — In June 2023, NJNG submitted its annual EE filing with the BPU for the recovery of SAVEGREEN costs, proposing an increase in annual recoveries of approximately $ 10.7 M.

In September 2023, the BPU approved an increase to the EE rate increasing annual recoveries by approximately $ 9.0 M based on updated information since the initial filing, effective October 1, 2023.

• On November 9, 2023, NJNG filed a letter petition seeking BPU approval to extend NJNG’s current SAVEGREEN program through December 31, 2024, with an additional $ 76.9 M in order to meet customer demand for this program, which was approved by the BPU on April 30, 2024.

• On December 1, 2023, NJNG filed a petition seeking BPU approval of its 2024 SAVEGREEN program, which would support new energy efficiency, demand response and building decarbonization start-up programs from January 1, 2025 through June 30, 2027.

The 2024 SAVEGREEN program includes approximately $ 245.1 M of direct investment, approximately $ 217.2 M in financing options and approximately $ 20.1 M in O&M.

On October 30, 2024, the BPU approved a settlement consisting of $ 205.0 M of direct investment, $ 160.5 M in financing options and $ 20.1 M in O&M, which totals $ 385.6 M.

• 2024 EE filing — On May 31, 2024, NJNG submitted its annual EE filing with the BPU for the recovery of SAVEGREEN costs, proposing an increase in annual recoveries of approximately $ 5.6 M, to be effective January 1, 2025, if approved.

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

• 2025 EE filing — On May 30, 2025, NJNG’s annual SAVEGREEN filing for the recovery of costs was submitted to the BPU, requesting an increase to annual recoveries of approximately $ 17.3 M.

This matter is currently pending.

Societal Benefits Charge

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NJNG has submitted the following filings to the BPU, which include a report of program expenditures incurred each program year:

• 2023 USF filing — In June 2023, NJNG submitted its annual USF filing to the BPU requesting an increase to the statewide USF rate, which will result in an approximately $ 0.7 M increase to annual recoveries.

The BPU approved this matter in September 2023, effective October 1, 2023.

• 2023 SBC filing — In September 2023, NJNG submitted its annual SBC filing to the BPU requesting approval of RAC expenditures through June 2023, which included an increase to the RAC annual recoveries of approximately $ 2.4 M and an increase to the NJCEP annual recoveries of approximately $ 5.5 M, effective April 1, 2024.

On March 20, 2024, the BPU approved NJNG’s annual SBC filing.

• 2024 USF filing — On June 28, 2024, NJNG submitted its annual USF filing to the BPU requesting an increase to the statewide USF rate, which resulted in an approximately $ 6.8 M increase to annual recoveries.

• 2024 USF filing — In June 2024, NJNG submitted its annual USF filing to the BPU requesting an increase to the statewide USF rate, which resulted in an approximately $ 6.8 M increase to annual recoveries.

On September 25, 2024, the BPU approved this filing, effective October 1, 2024.

• 2024 SBC filing — On September 30, 2024, NJNG submitted its annual SBC filing to the BPU requesting approval of RAC expenditures through June 2024, which included an increase to the RAC annual recoveries of approximately $ 2.4 M and an increase to the NJCEP annual recoveries of approximately $ 1.6 M, which would be effective April 1, 2025.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

• 2024 SBC filing — I n September 2024, NJNG submitted its annual SBC filing to the BPU requesting approval of RAC expenditures through June 2024, which included an increase to the RAC annual recoveries of approximately $ 2.4 M and an increase to the NJCEP annual recoveries of approximately $ 1.6 M, effective May 1, 2025.

• 2025 USF Filing — On June 27, 2025, NJNG submitted its annual USF filing to the BPU requesting a decrease to the statewide USF rate.

On September 25, 2025, the BPU approved the filing, which resulted in a decrease to annual recoveries of approximately $ 1.0 M, effective October 1, 2025.

• 2025 SBC Filing — On September 26, 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 $ 0.9 M and a decrease to the NJCEP annual recoveries of approximately $ 5.0 M, which, if approved, are expected to be effective April 1, 2026.

Infrastructure Programs

NJNG has significant annual capital expenditures associated with the management of its natural gas distribution and transmission system, including new utility plant for customer growth and its associated PIM and infrastructure programs.

NJNG continues to implement BPU-approved infrastructure projects that are designed to enhance the reliability of NJNG’s natural gas distribution system.

NJNG implemented BPU-approved infrastructure projects that are designed to enhance the reliability of NJNG’s natural gas distribution system.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Infrastructure Investment Program

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The recovery of information technology replacement and enhancements that was included in the original IIP filing will be included as part of base rate filings as projects are placed in service.

• 2023 IIP filing — In March 2023, NJNG submitted its annual IIP filing to the BPU requesting a rate increase for estimated capital expenditures of approximately $ 31.4 M through June 30, 2023.

This filing was updated in July 2023, with actual expenses of approximately $ 28.2 M through June 30, 2023.

The BPU approved this filing in September 2023, which resulted in an approximately $ 3.2 M revenue increase, effective October 1, 2023.

• 2024 IIP filing — On March 28, 2024, NJNG submitted its annual IIP filing to the BPU requesting a rate increase for capital expenditures of approximately $ 43.5 M through June 30, 2024.

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The BPU approved this filing on September 25, 2024, which resulted in an approximately $ 4.7 M revenue increase, effective October 1, 2024.

• 2025 IIP filing — On September 5, 2025, NJNG submitted its annual IIP filing to the BPU requesting a rate increase for capital expenditures of $ 33.1 M through October 31, 2025, which, if approved, would result in a $ 4.0 M revenue increase, with a proposed effective date of January 1, 2026.

On July 25, 2025, NJNG submitted a filing with the BPU to extend the IIP through June 30, 2026.

DERIVATIVE INSTRUMENTS

The Company is subject primarily to commodity price risk due to fluctuations in the market price of natural gas, SRECs and electricity.

To manage this risk, the Company enters into a variety of derivative instruments including, but not limited to, futures contracts, physical forward contracts, financial options and swaps to economically hedge the commodity price risk associated with its existing and anticipated commitments to purchase and sell natural gas, SRECs and electricity.

In addition, the Company is exposed to foreign currency and interest rate risk and may utilize foreign currency derivatives to hedge Canadian dollar-denominated natural gas purchases and/or sales and interest rate derivatives to reduce exposure to fluctuations in interest rates.

All of these types of contracts are accounted for as derivatives, unless the Company elects NPNS, which is done on a contract-by-contract election.

Accordingly, all of the financial and certain of the Company’s physical derivative instruments are recorded at fair value on the Consolidated Balance Sheets.

In addition, the Company is exposed to interest rate risk and may utilize derivatives to reduce exposure to fluctuations in interest rates.

These contracts are accounted for as derivatives, unless the Company elects NPNS, which is done on a contract-by-contract election.

Accordingly, financial and certain of the Company’s physical contracts are recorded at fair value on the Consolidated Balance Sheets.

For a more detailed discussion of the Company’s fair value measurement policies and level disclosures associated with the Company’s derivative instruments, see Note 6.

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ES chooses not to designate its financial commodity and physical forward commodity derivatives as accounting hedges or to elect NPNS.

The changes in the fair value of these derivatives are recorded as a component of natural gas purchases or operating revenues, as appropriate for ES, on the Consolidated Statements of Operations as unrealized gains or losses.

For ES at settlement, realized gains and losses on all financial derivative instruments are recognized as a component of natural gas purchases, and realized gains and losses on all physical derivatives follow the presentation of the related unrealized gains and losses as a component of either natural gas purchases or operating revenues.

The changes in the fair value of these derivatives are recorded as a component of operating expenses or operating revenues, as appropriate for ES, on the Consolidated Statements of Operations as unrealized gains or losses.

As a result of ES entering into transactions to borrow natural gas, commonly referred to as “park and loans,” an embedded derivative is recognized relating to differences between the fair value of the amount borrowed and the fair value of the amount that will ultimately be repaid, based on changes in the forward price for natural gas prices at the borrowed location over the contract term.

This embedded derivative is accounted for as a forward sale in the month in which the repayment of the borrowed natural gas is expected to occur and is considered a derivative transaction that is recorded at fair value on the Consolidated Balance Sheets, with changes in value recognized in current-period earnings.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Expected production of SRECs is hedged through the use of forward and futures contracts.

Expected production of SRECs are hedged through the use of forward and futures contracts.

All contracts require the Company to physically deliver SRECs through the transfer of certificates as per contractual settlement schedules.

ES recognizes changes in the fair value of these derivatives as a component of operating revenues.

Upon settlement of the contract, the related revenue is recognized when the SREC is transferred to the counterparty.

For SRECs that are acquired by ES, changes in the fair value of these derivatives are reported as a component of operating expenses.

Upon settlement of these contracts, the related revenue or expense is recognized when the SREC is transferred to the counterparty or acquired by ES, respectively.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Natural Gas Distribution

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Physical commodity contracts Derivatives - current $ 3,709 $ 5,878 $ 1,660 $ 4,346

Derivatives - noncurrent 1,312 3,931 727 10,758

Financial commodity contracts Derivatives - current 8,426 1,736 5,132 1,344

Physical commodity contracts Derivatives - current 1,660 4,346 6,209 12,757

Derivatives - noncurrent 1,006 352 79 732

Physical commodity contracts Derivatives - current 30 2 21 579

Financial commodity contracts Derivatives - current 349 4 — 2

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Financial commodity contracts Natural gas purchases 12,407 11,722 80,406

Foreign currency contracts Natural gas purchases — — ( 14 )

Physical commodity contracts Operation and maintenance 845 — —

Total unrealized and realized gain $ 14,888 $ 21,401 $ 107,170

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

NJNG’s derivative contracts are part of the Company’s risk management activities that relate to its natural gas purchases and BGSS incentive programs.

At settlement, the resulting gains and/or losses are payable to or recoverable from utility customers and are deferred in regulatory assets or liabilities resulting in no impact to earnings.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

The following table reflects the gains and/or (losses) associated with NJNG’s derivative instruments as of September 30:

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Financial commodity contracts ( 3,295 ) 11,064 ( 50,130 )

Total unrealized and realized gain (loss) $ 5,849 $ ( 84,371 ) $ 39,984

NJNG and ES had the following outstanding long (short) derivatives as of September 30:

Natural Gas Distribution Energy Services

Volumes (Bcf) Futures Physical Commodity Futures Physical Commodity

2024 31.9 10.9 ( 7.7 ) 2.8

2023 32.1 12.1 ( 6.9 ) 0.2

Total unrealized and realized (loss) gain $ ( 20,208 ) $ 5,849 $ ( 84,371 )

ES and NJNG had the following outstanding long (short) derivatives as of September 30:

Volumes (Bcf) 2025 2024 2025 2024

Futures ( 4.7 ) ( 7.7 ) 36.1 31.9

Physical Commodity 5.5 2.8 6.0 10.9

Not included in the above table are 0.9 M and 1.2 M SRECs that were open as of September 30, 2025 and 2024, respectively .

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The Company maintains separate broker margin accounts for NJNG and ES.

The balances as of September 30, by reporting segment, are as follows:

The balances as of September 30, by reportable segment, are as follows:

(Thousands) Balance Sheet Location 2025 2024

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The netting provisions refer to payment netting, whereby receivables and payables with the same counterparty are offset and the resulting net amount is paid to the party to which it is due.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Internally-rated exposure applies to counterparties that are not rated by Fitch or Moody’s.

In these cases, the counterparty’s or guarantor’s financial statements are reviewed, and similar methodologies and ratios used by Fitch and/or Moody’s are applied to arrive at a substitute rating.

In these cases, the counterparty’s or guarantor’s financial statements are reviewed, and similar methodologies and ratios used by credit rating agencies are applied to arrive at a substitute rating.

Gross credit exposure is defined as the unrealized fair value of physical and financial derivative commodity contracts, plus any outstanding wholesale receivable for the value of natural gas delivered and/or financial derivative commodity contract that has settled for which payment has not yet been received.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of September 30, 2025.

The amounts presented below have not been reduced by any collateral received or netting and exclude accounts receivable for NJNG retail natural gas sales and services and CEV residential solar installations.

The amounts presented below have not been reduced by any collateral received or netting and exclude accounts receivable for NJNG retail natural gas sales and services.

(Thousands) Gross Credit

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Debt f or a reconciliation to long-term and short-term debt .

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

The Company enters into sale leaseback transactions for certain commercial solar assets and natural gas meters.

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The carrying value of the natural gas meter sale leasebacks was approximately $ 33.5 M and $ 31.6 M and the estimated fair value of certain natural gas meter sale leasebacks amounted to approximately $ 32.5 M and $ 26.7 M as of September 30, 2025 and 2024, respectively.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

The Company utilizes a discounted cash flow method to determine the fair value of its debt.

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Exchange-traded futures and options contracts include all energy contracts traded on the NYMEX, CME and ICE that the Company refers to internally as basis swaps, fixed swaps, futures and financial options that are cleared through an FCM.

Level 2 Other significant observable inputs, such as interest rates or price data, including both commodity and basis pricing that is observed either directly or indirectly from publications or pricing services The Company’s Level 2 assets and liabilities include over-the-counter physical forward commodity contracts and swap contracts, SREC forward sales or derivatives that are initially valued using observable quotes and are subsequently adjusted to include time value, credit risk or estimated transport pricing components for which no basis price is available.

Level 2 Other significant observable inputs, such as interest rates or price data, including both commodity and basis pricing that is observed either directly or indirectly from publications or pricing services The Company’s Level 2 assets and liabilities include over-the-counter physical forward commodity contracts and swap contracts, SREC contracts or derivatives that are initially valued using observable quotes and are subsequently adjusted to include time value, credit risk or estimated transport pricing components for which no basis price is available.

Level 2 financial derivatives consist of transactions with non-FCM counterparties (basis swaps, fixed swaps and/or options).

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therefore, the primary sources for its price inputs are CME, NYMEX and ICE.

ES uses Platts and Natural Gas Exchange for Canadian delivery points.

However, ES also engages in transactions that result in transporting natural gas to delivery points for which there is no actively quoted market price.

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If required, ES’s policy is to use the best information available to determine fair value based on internal pricing models, which would include estimates extrapolated from broker quotes or other pricing services.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

The Company also has other financial assets that include listed equities, mutual funds and money market funds for which there are active exchange quotes available.

1 unchanged sentence

The Company determines these adjustments by using historical default probabilities that correspond to the applicable S&P issuer ratings, while also taking into consideration collateral and netting arrangements that serve to mitigate risk.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Assets and liabilities measured at fair value on a recurring basis are summarized as follows:

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INVESTMENTS IN EQUITY INVESTEES

Steckman Ridge

The Company holds a 50 % equity method investment in Steckman Ridge, a jointly owned and controlled natural gas storage facility located in Bedford County, Pennsylvania.

The Company’s investment in Steckman Ridge was $ 101.7 M and $ 104.1 M as of September 30, 2024 and 2023, respectively, which includes loans with a total outstanding principal balance of $ 70.4 M for both September 30, 2024 and 2023.

On October 1, 2023, the Company entered into an Amended and Restated Loan Agreement with Steckman Ridge to extend the existing loan agreement and moved from London Interbank Offered Rate to Secured Overnight Financing Rate.

These loans accrue interest at a variable rate that resets quarterly and are now due October 1, 2027.

The Company’s investment in Steckman Ridge was approximately $ 101.2 M and $ 101.7 M as of September 30, 2025 and 2024, respectively, which includes loans with a total outstanding principal balance of approximately $ 70.4 M for both September 30, 2025 and 2024.

These loans accrue interest at a variable rate that resets quarterly and are due October 1, 2027.

NJNG and ES have entered into storage and park and loan agreements with Steckman Ridge.

Related Party Transactions for more information on these intercompany transactions.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

EARNINGS PER SHARE

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(1) Incremental shares consist primarily of unvested stock awards and performance units, which are calculated using the treasury stock method.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

NJNG and NJR finance working capital requirements and capital expenditures through various short-term debt and long-term financing arrangements, including a commercial paper program and committed unsecured credit facilities.

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Series PP 3.15 % April 15, 2028 50,000 50,000

Series QQ 3.58 % March 13, 2024 — 70,000

Series RR 4.61 % March 13, 2044 55,000 55,000

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Series RRR 5.49 % September 30, 2034 75,000 75,000

Series SSS 5.16 % August 21, 2035 100,000 —

Series TTT 5.85 % August 21, 2055 100,000 —

Meter financing obligation Various dates 33,477 31,574

2 unchanged sentences

Total NJNG long-term debt 1,811,798 1,609,871

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

NJR 2024 2023

First mortgage bonds:

Maturity date:

Unsecured senior notes 3.48 % November 7, 2024 — 100,000

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Unsecured senior notes 6.14 % December 15, 2032 50,000 50,000

Unsecured senior notes 5.55 % November 7, 2034 100,000 —

Debt issuance costs ( 2,916 ) ( 3,011 )

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Total NJR long-term debt 1,017,084 1,016,989

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

CEV 2025 2024

Maturity date:

Solar asset financing obligation Various dates 471,469 282,962

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As of September 30, 2025, NJNG’s equity-to-total-capitalization ratio is 54.1 % and NJNG has the capacity to issue up to $ 1.5 B of FMB under the terms of the Mortgage Indenture.

In September 2023, NJNG entered into a Note Purchase Agreement for $ 100 M aggregate principal amount of its senior notes consisting of $ 50 M of 5.56 % senior notes due September 28, 2033, which closed on September 28, 2023, and $ 50 M of 5.85 % senior notes due October 30, 2053, which closed on October 30, 2023.

On June 26, 2024, NJNG entered into a Note Purchase Agreement for $ 200 M aggregate principal amount of its senior notes consisting of $ 125 M of 5.82 % senior notes due June 26, 2054, which closed on June 26, 2024, and $ 75 M of 5.49 % senior notes due September 30, 2034, which closed on September 30, 2024.

On April 15, 2025, NJNG’s 10-year , 2.82 % $ 50 M senior notes matured.

On August 21, 2025, NJNG entered into a Note Purchase Agreement for $ 200 M aggregate principal amount of its senior notes consisting of $ 100 M of 5.16 % senior notes due August 21, 2035, and $ 100 M of 5.85 % senior notes due August 21, 2055.

The senior notes are secured by an equal principal amount of NJNG’s FMBs issued under NJNG’s Mortgage Indenture.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Sale Leasebacks

NJNG received approximately $ 8.8 M and $ 8.4 M during fiscal 2024 and 2023, respectively, in connection with the sale leaseback of its natural gas meters, with terms ranging from six to 10 years.

NJNG records the sale leaseback as a financing obligation for accounting purposes that is paid over the term of the arrangement and has the option to purchase the meters back at fair value upon expiration of the lease.

NJNG received approximately $ 11.7 M and $ 8.8 M during fiscal 2025 and 2024, respectively, in connection with the sale leaseback of its natural gas meters, with terms ranging from seven to 10 years.

NJNG records the proceeds received from the sale leaseback as a financing obligation for accounting purposes that is paid over the term of the arrangement and has the option to purchase the meters back at fair value upon expiration of the lease.

Contractual commitments for meter sale leaseback arrangements, which represent the most likely outcome of cash payments, as of the fiscal years ended September 30, are as follows:

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Total $ 33,477

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Clean Energy Ventures

CEV enters into transactions to sell the commercial solar assets concurrent with agreements to lease the assets back over a period of five to seven years .

These transactions are treated as financing obligations for accounting purposes and are typically secured by the renewable energy facility asset and its future cash flows from RECs and energy sales.

CEV records the proceeds received from the sale leasebacks as financing obligations for accounting purposes.

These transactions are typically secured by the renewable energy facility asset and its future cash flows from RECs and energy sales.

ITCs and other tax benefits associated with these solar projects are transferred to the buyer, if applicable;

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Credit Facilities and Short-term Debt

The following table summarizes NJR’s credit facility and NJNG’s commercial paper program and credit facility as of September 30:

A summary of NJR’s credit facility and NJNG’s commercial paper program and credit facility as of September 30, is as follows:

At end of period

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2025 $ 575,000 $ 152,600 5.38 % $ 401,018 (2) August 2029

2023 $ 650,000 $ 217,300 6.53 % $ 426,967 (2) September 2027

2024 $ 575,000 $ 236,700 6.23 % $ 325,951 (2) August 2029

NJNG bank revolving credit facility (3)

2025 $ 250,000 $ 43,000 4.30 % $ 206,269 (4) August 2029

2023 $ 250,000 $ 34,800 5.48 % $ 214,469 (4) September 2027

2024 $ 250,000 $ 55,100 4.98 % $ 194,169 (4) August 2029

(1) Committed credit facility, which requires commitment fees of 0.10 % on the unused amount.

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(4) Letters of credit outstanding total approximately $ 0.7 M at both September 30, 2025 and 2024, which reduces the amount available by the same amount.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Amounts available under credit facilities are reduced by bank or commercial paper borrowings, as applicable, and any outstanding letters of credit.

Neither NJNG nor the results of its operations are obligated or pledged to support the NJR Credit Facility.

On August 7, 2024, NJR entered into a second amendment to NJR’s Second Amended and Restated Credit Agreement, which reduced the NJR Credit Facility from $ 650 M to $ 575 M and extended the maturity date to August 7, 2029, pursuant to NJR’s option to extend the maturity date under the NJR Second Amended and Restated Credit Agreement, and permits NJR to request that the maturity date be extended up to two times for an additional period of one year each.

In August 2024, NJR entered into a second amendment to NJR’s Second Amended and Restated Credit Agreement, which reduced the NJR Credit Facility from $ 650 M to $ 575 M and extended the maturity date to August 7, 2029, pursuant to NJR’s option to extend the maturity date under the NJR Second Amended and Restated Credit Agreement, and permits NJR to request that the maturity date be extended up to two times for an additional period of one year each.

The NJR Credit Facility includes an accordion feature, which allows NJR, in the absence of a default or event of default, to increase from time to time, with the existing or new lenders, the revolving credit commitments under the NJR Credit Facility in increments of at least $ 50 M, with the total revolving credit commitments not exceeding $ 750 M.

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The credit facility is used primarily to finance its share repurchases, to satisfy ES’s short-term liquidity needs and to finance, on an initial basis, unregulated investments.

As of September 30, 2024, NJR had eleven letters of credit outstanding totaling $ 12.3 M, which reduced the amount available under the NJR Credit Facility by the same amount.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

As of September 30, 2025, NJR had 24 letters of credit outstanding totaling approximately $ 21.4 M, which reduced the amount available under the NJR Credit Facility by the same amount.

NJR does not anticipate that these letters of credit will be drawn upon by the counterparties, and they will be renewed as necessary.

Neither NJNG nor the results of its operations are obligated or pledged to support the NJR credit or debt shelf facilities.

On August 7, 2024, NJNG entered into a second amendment to NJNG’s Second Amended and Restated Credit Agreement governing a $ 250 M NJNG Credit Facility, which extended the maturity date of the facility to August 7, 2029, pursuant to NJNG’s option to extend the maturity date under the NJNG Second Amended and Restated Credit Agreement, and permits NJNG to request that the maturity date be extended up to two times for an additional period of one year each.

In August 2024, NJNG entered into a second amendment to NJNG’s Second Amended and Restated Credit Agreement governing a $ 250 M NJNG Credit Facility, which extended the maturity date of the facility to August 7, 2029, pursuant to NJNG’s option to extend the maturity date under the NJNG Second Amended and Restated Credit Agreement, and permits NJNG to request that the maturity date be extended up to two times for an additional period of one year each.

The NJNG Credit Facility includes an accordion feature, which allows NJNG, in the absence of a default or event of default, to increase from time to time, with the existing or new lenders, the revolving credit commitments under the NJNG Credit Facility in increments of at least $ 50 M with the total revolving credit commitments not exceeding $ 350 M.

The NJNG Credit Facility also permits the borrowing of revolving loans and swingline loans, as well as a $ 30 M sublimit for the issuance of letters of credit.

As of September 30, 2024, NJNG has two letters of credit outstanding for $ 0.7 M, which reduced the amount available under the NJNG Credit Facility by the same amount.

As of September 30, 2025, NJNG has two letters of credit outstanding for approximately $ 0.7 M, which reduced the amount available under the NJNG Credit Facility by the same amount.

NJNG does not anticipate that these letters of credit will be drawn upon by the counterparties.

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Total, net of tax $ 13,469 $ 12,130 $ 11,153

(1) Excludes additional tax expense related to delivered shares of $ 1.2 M, $ 0.6 M and $ 0.1 M as of September 30, 2024, 2023 and 2022, respectively.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

(1) Excludes additional tax benefit related to delivered shares of approximately $ 1.9 M, $ 1.2 M and $ 0.6 M as of September 30, 2025, 2024 and 2023, respectively.

Performance Share Units

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In fiscal 2024, the Company also granted to certain officers 88,107 performance shares, of which 50,504 vest on September 30, 2026, and 37,603 vest annually over a three-year period beginning in September 2024, both of which are subject to the Company meeting certain performance conditions.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

In fiscal 2023, the Company granted to certain officers 39,614 performance shares, which are market condition awards that vested on September 30, 2025, subject to the Company meeting certain conditions.

In fiscal 2023, the Company also granted to certain officers 73,047 performance shares, of which 42,449 vested on September 30, 2025, and 30,598 vest annually over a three-year period beginning in September 2023, both of which were subject to the Company meeting certain performance conditions.

The vesting of these awards are shown in the table below.

The vesting of these awards is shown in the table below.

There is approximately $ 6.7 M of deferred compensation related to unvested performance shares that is expected to be recognized over the weighted average period of 1.7 years.

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The Company measures compensation expense related to performance shares based on the fair value of these awards at their date of grant.

In accordance with ASC 718, Compensation - Stock Compensation , compensation expense for market condition grants are recognized for awards granted, and are not adjusted based on actual achievement of the performance goals.

In accordance with ASC 718, Compensation - Stock Compensation , compensation expense for market condition grants is recognized for awards granted and is not adjusted based on actual achievement of the performance goals.

The Company estimated the fair value of these grants on the date of grant using a lattice model.

Performance condition grants are initially fair valued at the Company’s stock price on the grant date and are subsequently adjusted for actual achievement of the performance goals.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Restricted Stock Units

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The shares vest annually over a three-year period beginning in October of the fiscal year in which they were granted.

On April 25, 2024, the Company also granted an additional 3,465 shares of restricted stock that vest annually over a three-year period beginning in April of the fiscal year in which they were granted.

The Company may choose to grant additional shares of restricted stock that vest annually over a three-year period beginning in the period of the fiscal year in which they were granted.

The Company granted 2,191 and 3,465 additional shares of restricted stock during fiscal 2025 and 2024, respectively.

There were no additional shares of restricted stock granted during fiscal 2023.

There is approximately $ 1.6 M of deferred compensation related to unvested restricted stock shares that is expected to be recognized over the weighted average period of 1.8 years.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

The following table summarizes the restricted stock activity under the stock award and incentive plans for the past three fiscal years:

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Vested ( 61,316 ) $ 42.93 $ 2,869

Cancelled/forfeited ( 970 ) $ 44.52 —

Non-vested and outstanding at September 30, 2025 123,792 $ 44.80 —

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Delivered ( 38,115 ) $ 40.67 $ 1,517

Forfeited ( 6,818 ) $ 40.33 —

Outstanding at September 30, 2023 328,093 $ 41.74 —

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Delivered ( 5,089 ) $ 35.86 $ 213

Forfeited ( 235 ) $ 42.55 —

Outstanding at September 30, 2024 477,957 $ 42.07 —

1 unchanged sentence

Delivered ( 191,115 ) $ 38.95 $ 8,906

Forfeited ( 235 ) $ 42.55 —

Outstanding at September 30, 2025 434,497 $ 45.10 —

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The shares vest upon the earlier of the first anniversary of the grant date or the date of the Company’s next annual meeting of shareowners following the grant date and are amortized to expense over a 12-month period.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

The following summarizes non-employee director share awards for the past three fiscal years:

2 unchanged sentences

Weighted average grant date fair value $ 47.65 $ 41.67 $ 49.58

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

EMPLOYEE BENEFIT PLANS

13 unchanged sentences

However, the Company is required to fund certain amounts due to regulatory agreements with the BPU.

The Company contributed $ 7.8 M and $ 4.2 M in fiscal 2024 and 2023, respectively, and estimates that it will contribute between $ 5 M and $ 10 M over each of the next five years.

The Company contributed approximately $ 0.5 M and $ 7.8 M in fiscal 2025 and 2024, respectively, and estimates that it may contribute up to $ 3.0 M over each of the next five years.

Additional contributions may be required based on market conditions and changes to assumptions.

In January 2024, the Company announced changes to its postretirement medical benefits plan.

Beginning on January 1, 2025, the Company will replace the existing retiree medical coverage for certain eligible employees age 65 and older and their Medicare-eligible dependents with an employer-funded Health Reimbursement Arrangement.

Beginning on January 1, 2025, the Company replaced the existing retiree medical coverage for certain eligible employees age 65 and older and their Medicare-eligible dependents with an employer-funded Health Reimbursement Arrangement.

Medicare-eligible participants may use the Health Reimbursement Arrangement toward the purchase of supplemental insurance coverage and for other qualified medical expenses.

12 unchanged sentences

20 27 1,401 703

Actuarial loss (gain) 36,863 ( 7,057 ) 54,518 25,363

Actuarial (gain) loss ( 12,216 ) 36,863 39,942 54,518

Benefits paid, net of retiree subsidies received ( 16,838 ) ( 14,895 ) ( 7,808 ) ( 6,679 )

4 unchanged sentences

Employer contributions 539 535 486 7,846

Reimbursement from Trust (3)

— — ( 9,139 ) —

Benefits paid, net of plan participants’ contributions (2)

10 unchanged sentences

(1) Includes the Company’s PEP.

(2) Contributions made by employees hired prior to July 1, 1998, that were eligible to elect an additional participant contribution to enhance their benefits, were immaterial during the periods.

(2) Contributions made by employees hired prior to July 1, 1998, who were eligible to elect an additional participant contribution to enhance their benefits, were immaterial during the periods.

(3) Reimbursements for benefit premiums paid by the Company on behalf of the Trust.

The Company recognizes a liability for its underfunded benefit plans as required by ASC 715, Compensation - Retirement Benefits .

The Company records the offset to regulatory assets for the portion of liability relating to NJNG and to accumulated OCI for the portion of the liability related to its unregulated operations.

The increase in actuarial loss during fiscal 2024 compared with fiscal 2023 for both pension and OPEB was due primarily to the decrease in the discount rate.

The increase in actuarial gain for the pension and the decrease in actuarial loss for the OPEB were due primarily to the increase in the discount rate during fiscal 2025 compared with fiscal 2024 .

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

The following table summarizes the amounts recognized in regulatory assets and accumulated OCI as of September 30:

4 unchanged sentences

Net actuarial (gain) loss ( 2,407 ) 27,108 934 14,080

Prior service (credit) — ( 60,504 ) — ( 19,376 )

Amounts amortized to net periodic costs:

Net actuarial (loss) ( 87 ) — ( 213 ) —

Prior service (cost) ( 103 ) — — —

Net actuarial gain (loss) 2 ( 3,098 ) ( 119 ) ( 1,164 )

Prior service (cost) credit ( 61 ) 7,458 — 2,555

Balance at September 30, 2024 $ 22,172 $ 1,010 $ 1,557 $ 1,593

1 unchanged sentence

Net actuarial (gain) loss ( 13,368 ) 27,178 ( 3,303 ) 10,086

Prior service (credit) — ( 60,504 ) — ( 19,376 )

Amounts amortized to net periodic costs:

Net actuarial gain (loss) 2 ( 3,098 ) ( 119 ) ( 1,164 )

Prior service (cost) credit ( 61 ) 7,458 — 2,555

Net actuarial (loss) ( 994 ) ( 5,114 ) ( 209 ) ( 2,057 )

Prior service credit — 9,801 — 3,279

Balance at September 30, 2025 $ 7,810 $ 32,875 $ ( 1,955 ) $ 12,901

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

The amounts in regulatory assets and accumulated OCI not yet recognized as components of net periodic benefit cost as of September 30 are:

3 unchanged sentences

(Thousands) 2025 2024 2025 2024 2025 2024 2025 2024

Net actuarial loss $ 22,172 $ 24,577 $ 54,056 $ 30,046 $ 1,557 $ 742 $ 18,414 $ 5,498

Net actuarial loss (gain) $ 7,810 $ 22,172 $ 76,120 $ 54,056 $ ( 1,955 ) $ 1,557 $ 26,443 $ 18,414

Prior service cost (credit) — — ( 43,245 ) ( 53,046 ) — — ( 13,542 ) ( 16,821 )

14 unchanged sentences

Net periodic benefit cost recognized as expense $ ( 1,541 ) $ 1,048 $ 1,007 $ ( 5,815 ) $ ( 3,938 ) $ 4,896

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

The weighted average assumptions used to determine the Company’s benefit costs during the fiscal years below and obligations as of September 30, are as follows:

27 unchanged sentences

(1) Percentages for represented and non-represented plans, respectively.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

When measuring its PBO, the Company uses an aggregate discount rate at which its obligation could be effectively settled.

20 unchanged sentences

The Company used projection scale MP-2021 and the Pri-2012 mortality study as of September 30, 2025 and 2024.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following fiscal years:

4 unchanged sentences

Therefore, under the Medicare Prescription Drug, Improvement and Modernization Act of 2003, the Company qualifies for federal subsidies.

Estimated subsidy payments for fiscal 2024 and 2025 are immaterial and zero thereafter.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Estimated subsidy payments for fiscal 2026 and thereafter are immaterial.

Pension and OPEB assets held in the master trust, measured at fair value, are summarized as follows:

3 unchanged sentences

As of September 30, 2025

Money market funds $ — $ — $ 24 $ 24

Registered Investment Companies:

13 unchanged sentences

As of September 30, 2024

Money market funds $ — $ — $ 24 $ 24

Registered Investment Companies:

12 unchanged sentences

Total assets at fair value $ 342,710 $ 129,721

The Plan had no Level 2 or Level 3 fair value measurements during fiscal 2024 and 2023, and there have been no changes

in valuation methodologies as of September 30, 2024.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

The Plan had no Level 2 or Level 3 fair value measurements during fiscal 2025 and 2024, and there have been no changes in valuation methodologies as of September 30, 2025.

The Plan held assets that are valued using NAV as a practical expedient, which are excluded from the fair value hierarchy.

7 unchanged sentences

Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Defined Contribution Plan

The Company offers a Savings Plan to eligible employees.

The Company matched 85 % of participants’ contributions up to 6 % of base compensation.

Beginning on March 6, 2024, the Company’s contribution changed to 100 % of the first 3 % and 80 % of the next 3 % of base compensation.

The Company formally matched 85 % of participants’ contributions up to 6 % of base compensation.

Beginning in March 2024, the Company’s contribution changed to 100 % of the first 3 % and 80 % of the next 3 % of base compensation.

Represented NJRHS employees, non-represented employees hired on or after October 1, 2009, and NJNG represented employees hired on or after January 1, 2012, are eligible for an employer special contribution of between 4.0 % and 5.0 % of base compensation, depending on years of service, into the Savings Plan on their behalf.

The amount expensed and contributed for the matching provision of the Savings Plan was $ 6.8 M in fiscal 2024, $ 5.9 M in fiscal 2023 and $ 5.5 M in fiscal 2022.

The amount contributed for the employer special contribution of the Savings Plan was $ 3.6 M in fiscal 2024, $ 2.1 M in fiscal 2023 and $ 2.4 M in fiscal 2022.

The amount expensed and contributed for the matching provision of the Savings Plan was approximately $ 7.2 M in fiscal 2025, $ 6.8 M in fiscal 2024 and $ 5.9 M in fiscal 2023.

The amount contributed for the employer special contribution of the Savings Plan was approximately $ 4.2 M in fiscal 2025, $ 3.6 M in fiscal 2024 and $ 2.1 M in fiscal 2023.

The income tax provision from operations for the fiscal years ended September 30, consists of the following:

6 unchanged sentences

Income tax provision $ 96,956 $ 84,906 $ 49,275

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

As of September 30, the temporary differences, which give rise to deferred tax assets (liabilities), consist of the following:

24 unchanged sentences

Total net deferred tax liabilities $ ( 417,591 ) $ ( 338,033 )

(1) Includes approximately $ 0.7 M for NJNG for both fiscal 2024 and 2023, which is being amortized over the life of the related assets.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

(1) Includes approximately $ 0.5 M and $ 0.7 M for NJNG for fiscal 2025 and 2024, respectively, which is being amortized over the life of the related assets.

A reconciliation of the U.S.

12 unchanged sentences

Effective income tax rate 22.4 % 22.7 % 15.7 %

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

The Company and one or more of its subsidiaries files or expects to file income and/or franchise tax returns in the U.S.

federal jurisdiction and in the states of Colorado, Connecticut, Delaware, Florida, Georgia, Indiana, Louisiana, Maryland, Michigan, Mississippi, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas, Virginia and West Virginia.

federal jurisdiction and in the states of Connecticut, Delaware, Florida, Georgia, Indiana, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Mississippi, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas, Virginia and West Virginia.

The Company neither files in, nor believes it has a filing requirement in, any foreign jurisdictions.

4 unchanged sentences

In March 2024, the State of New Jersey commenced an examination of the Company’s Corporate Business Tax return for NJR and certain subsidiaries for the fiscal periods ended September 30, 2019 through September 30, 2022.

On January 8, 2025, this audit was completed by the State of New Jersey, and no other action is necessary.

NJR evaluates its tax positions to determine the appropriate accounting and recognition of potential future obligations associated with uncertain tax positions.

3 unchanged sentences

In August 2022, the President of the U.S.

signed the Inflation Reduction Act, which contains provisions addressing inflation, clean energy, healthcare and taxes beginning in 2023.

The Inflation Reduction Act imposes a 15% minimum tax rate on corporations with higher than $1B of annual income, along with a 1% excise tax on corporate stock repurchases.

The Inflation Reduction Act raised the ITC from 26% to 30% through the end of 2032, dropping to 26% for property under construction before the end of 2033 and to 22% for property under construction before the end of 2034.

The ITC expires starting in 2035 unless it is renewed.

There are additional opportunities to increase the credit amount for certain facilities that are placed in service after December 31, 2022.

The credit amount can be increased by 10% if certain domestic content requirements are satisfied or if the facility is located in an energy community, such as a brownfield site.

ITCs are also expanded to include stand-alone energy storage projects without being integrated into a solar facility, allowing solar to claim production tax credits that are a production-based credit extending for 10 years following the placed-in-service date of the facility, and introducing the concept of transferability of tax credits, providing an additional option to monetize such credits.

The Company evaluated the impacts of the Inflation Reduction Act on its financial position, results of operations and cash flows, noting the corporate alternative minimum tax does not impact the Company as the applicable income thresholds have not been met.

Upon the repurchase of common stock through the Company’s share repurchase program, the Company would be subject to the 1% excise tax.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

signed the Inflation Reduction Act, which contained provisions addressing inflation, clean energy, healthcare and taxes beginning in 2023.

The Inflation Reduction Act imposed a 15% minimum tax rate on corporations with higher than $1B of annual income, along with a 1% excise tax on corporate stock repurchases.

The Inflation Reduction Act raised the ITC from 26% to 30% through the end of 2032, with opportunities to increase the credit amount if certain domestic content requirements are satisfied or if the facility is located in an energy community, such as a brownfield site.

On July 4, 2025, the President of the U.S.

signed OBBBA into law, which includes a broad range of tax reform provisions, including extending and modifying certain key provisions of the federal Tax Cuts and Jobs Act of 2017, as enacted on December 22, 2017, and expanding certain incentives under the federal Inflation Reduction Act.

OBBBA also modified tax legislation affecting clean energy tax credits and accelerated the phase-out of ITCs.

The Company evaluated the provisions of OBBBA and concluded it did not have a material impact on its Consolidated Financial Statements.

Other Tax Items

3 unchanged sentences

During the fourth quarter of fiscal 2023, the Company determined that the tax losses created by the impairment may qualify as an ordinary loss, rather than a capital loss.

As of September 30, 2024 and 2023, the Company had a valuation allowance of approximately $ 5.1 M and $ 5.0 M, respectively.

As of both September 30, 2025 and 2024, the Company had a valuation allowance of approximately $ 5.1 M.

As of September 30, 2023, it was determined that the realization of certain deferred tax assets was more likely than not, and thus the valuation allowance previously recorded, of approximately $ 15.8 M, was no longer required.

Reversal of the valuation allowance resulted in a corresponding income tax benefit on the Consolidated Statement of Operations.

As of September 30, 2025, the remaining valuation allowance of approximately $ 0.4 M related primarily to other state income tax attributes that the Company could not conclude were realizable on a more-likely-than-not basis.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

As of September 30, 2025, the Company evaluated certain tax benefits recorded in the Consolidated Financial Statements and concluded that a portion of the tax benefits are uncertain at this time.

5 unchanged sentences

Balance at September 30, $ 4,993 $ 4,993

As of September 30, 2024 and 2023, there are $ 5.0 M of unrecognized tax benefits that if recognized would affect the annual effective tax rate.

As of September 30, 2025 and 2024, there are approximately $ 5.0 M of unrecognized tax benefits that if recognized would affect the annual effective tax rate.

The tax benefits relate to fiscal tax years open to examination by the IRS and the state of Pennsylvania and may be subject to subsequent adjustment.

3 unchanged sentences

The Company expects to utilize this entire carryforward, other than as described below.

As of September 30, 2022, the Company had a valuation allowance of approximately $ 17.2 M related to the recognition of state net operating loss carryforwards.

As of September 30, 2023, it was determined that the realization of certain deferred tax assets was more likely than not, and thus the associated valuation allowance of approximately $ 15.8 M was no longer required.

Reversal of the valuation allowance resulted in a corresponding income tax benefit on the Consolidated Statement of Operations.

As of September 30, 2024, the remaining valuation allowance of approximately $ 0.6 M related primarily to other state income tax attributes which the Company could not conclude were realizable on a more-likely-than-not basis.

The Consolidated Appropriations Act extended the 30% ITC for solar property that is under construction on or before December 31, 2019.

Projects placed in service after December 31, 2019, may also qualify for a 30% federal ITC if 5% or more of the total costs of a solar property are incurred before the end of the applicable year and there are continuous efforts to advance toward completion of the project, based on the IRS guidance around ITC safe harbor determination.

The credit declined to 26 % for property under construction before the end of 2020.

The Consolidated Appropriations Act of 2021 extended the 26 % tax credit for property under construction during 2021 and 2022.

The Inflation Reduction Act raised the ITC from 26% to 30% through the end of 2032, as previously stated.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

Lessee Accounting

3 unchanged sentences

Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate.

Most leases in which the Company is the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments.

Leases in which the Company is the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments.

When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate.

10 unchanged sentences

The Company’s office leases vary in duration, ranging from two to 11 years, and may or may not include extension or early purchase options.

The Company’s meter lease terms are between six and 10 years with purchase options available prior to the end of the term.

Equipment leases, including general office equipment, also vary in duration, with an average term of nine years .

The Company’s meter lease terms are between seven and 10 years with purchase options available prior to the end of the term.

Equipment leases, including general office equipment, also vary in duration, with an average term of ten years .

The Company’s storage and capacity leases have assumed terms of 50 years to coincide with the expected useful lives of the cavern assets with which the leases are associated.

The Company’s lease terms may include options to extend, purchase the leased asset or terminate a lease, and they are included in the lease liability calculation when it is reasonably certain that those options will be exercised.

The Company has elected an accounting policy that exempts leases with an original term of one year or less from the recognition requirements of ASC 842, Leases .

The Company has lease agreements with lease and non-lease components and has elected the practical expedient to combine lease and non-lease components for certain classes of leases, such as office buildings, solar land leases and office equipment.

Variable payments are not considered material to the Company.

The Company’s lease agreements do not contain any material residual value guarantees, material restrictions or material covenants.

In July 2021, NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, the effects of which are eliminated in consolidation.

The Company has elected an accounting policy, which applies to all asset classes, that exempts leases with an original term of one year or less from the recognition requirements of ASC 842, Leases .

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

The Company has lease agreements with lease and non-lease components and has elected the practical expedient not to separate lease components from the associated non-lease components for certain classes of leases, such as office buildings, solar land leases and office equipment.

The Company’s lease agreements do not contain any material residual value guarantees, material restrictions or material covenants.

The following table presents the Company’s lease costs included in the Consolidated Statements of Operations for the fiscal year ended September 30:

6 unchanged sentences

Total finance lease cost $ 2,317 $ 3,074 $ 3,189

Short-term lease cost Operation and maintenance — — 34

Variable lease cost Operation and maintenance 894 1,099 1,128

7 unchanged sentences

Financing cash flows for finance leases $ 7,574 $ 7,792 $ 7,379

Assets obtained or modified through operating lease liabilities totaled approximately $ 14.1 M and $ 13.2 M during fiscal 2024 and 2023, respectively.

Assets obtained or modified through other leases, including those which are finance leases and financing transactions for accounting purposes, totaled $ 8.4 M during fiscal 2023.

There were no assets obtained or modified through finance leases during fiscal 2024.

Operating lease assets obtained in exchange for new or modified operating lease liabilities totaled approximately $ 6.4 M and $ 14.1 M during fiscal 2025 and 2024, respectively.

There were no finance lease assets obtained in exchange for new or modified finance lease liabilities during fiscal 2025 and 2024.

The following table presents the balance and classifications of the Company’s right of use assets and lease liabilities included in the Consolidated Balance Sheets for the fiscal year ended September 30:

9 unchanged sentences

For operating lease assets and liabilities, the weighted average remaining lease term was 28.4 years and 28.6 years and the weighted average discount rate used in the valuation over the remaining lease term was 4.0 % and 3.8 % as of September 30, 2025 and 2024, respectively.

For finance lease assets and liabilities, the weighted average remaining lease term was 3.0 years and 3.3 years and the weighted average discount rate used in the valuation over the remaining lease term was 3.4 % and 2.7 % as of September 30, 2024 and 2023, respectively.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

For finance lease assets and liabilities, the weighted average remaining lease term was 2.4 years and 3.0 years and the weighted average discount rate used in the valuation over the remaining lease term was 3.4 % and 3.4 % as of September 30, 2025 and 2024, respectively.

The following table presents the Company’s maturities of lease liabilities as of September 30, 2025:

4 unchanged sentences

2029 9,279 1,676

2029 8,994 1,676

Thereafter 237,169 —

20 unchanged sentences

Total $ 369,579 $ 282,001 $ 178,774 $ 137,863 $ 129,839 $ 790,509

Certain pipeline demand fees totaling approximately $ 4.0 M per year, for which ES is the responsible party, are being paid for by the counterparty to a capacity release transaction beginning November 1, 2021 for a period of 10 years.

Certain pipeline demand fees totaling approximately $ 4.0 M per year, for which ES is the responsible party, are being paid for by the counterparty to a capacity release transaction, which began in November 2021, for a period of 10 years.

As of September 30, 2025, the Company’s future minimum lease payments under various operating leases will not be more than $ 9.3 M annually for the next five years and $ 237.2 M in the aggregate for all years thereafter.

As of September 30, 2024, there were NJR guarantees covering approximately $ 174.3 M of ES’s natural gas purchases and demand fee commitments not yet reflected in accounts payable on the Consolidated Balance Sheets.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

As of September 30, 2025, there were NJR guarantees covering approximately $ 138.8 M of ES’s natural gas purchases and demand fee commitments not yet reflected in accounts payable on the Consolidated Balance Sheets.

Legal Proceedings

10 unchanged sentences

NJNG recovers its remediation expenditures, including carrying costs, over rolling seven-year periods pursuant to a RAC approved by the BPU.

As of September 30, 2024, $ 77.5 M of previously incurred remediation costs, net of recoveries from customers and insurance proceeds, are included in regulatory assets on the Consolidated Balance Sheets.

As of September 30, 2025, approximately $ 75.0 M of previously incurred remediation costs, net of recoveries from customers and insurance proceeds, are included in regulatory assets on the Consolidated Balance Sheets.

NJNG will continue to seek recovery of MGP-related costs through the RAC.

10 unchanged sentences

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

REPORTING SEGMENT AND OTHER OPERATIONS DATA

The Company organizes its businesses based on a combination of factors, including its products and its regulatory environment.

As a result, the Company manages its businesses through the following reporting segments and other business operations:

NJNG consists of regulated energy and off-system, capacity and storage management operations;

CEV consists of capital investments in clean energy projects;

ES consists of unregulated wholesale and retail energy operations;

REPORTABLE SEGMENT DATA

The Company has four reportable segments which are determined based upon a combination of factors, including the nature of business activities, product and service offerings and the regulatory environment in which the businesses operate.

NJNG consists of regulated utility operations that provide energy and off-system, capacity and storage management operations primarily to residential and commercial customers;

CEV consists of capital investments in clean energy projects, primarily in commercial solar installations;

ES consists of unregulated wholesale and retail energy operations and asset management services;

S&T consists of the Company’s investments in natural gas transportation and storage facilities.

the HSO business operations consist of heating, cooling and water appliance sales, installations and services, other investments and general corporate activities.

Information related to the Company’s various reporting segments and other business operations, as of September 30, is detailed below:

(Thousands) NJNG CEV ES S&T Subtotal HSO Elims Total

Operating revenues

External customers $ 1,018,482 130,563 490,266 (1) 94,851 $ 1,734,162 62,377 — $ 1,796,539

Intercompany $ 1,350 — ( 4,875 ) 1,358 $ ( 2,167 ) 258 1,909 $ —

The accounting policies of the Company as described in Note 2.

Summary of Significant Accounting Policies are the same as those of the reportable segments.

Intercompany transactions are eliminated in consolidation.

The CODM, the CEO of the Company, uses net income, NFE, as well as various other financial and operational metrics as measures of profitability.

Net income is the measure of segment profit or loss that most closely aligns with GAAP.

Performance is evaluated based upon profitability and budget and/or forecast-to-actual variances when making decisions about the allocation of resources and capital to segment operations.

Information related to the Company’s various reportable segments, as of September 30, is detailed below:

(Thousands) NJNG CEV ES S&T Total

Operating revenues attributable to reportable segments $ 1,301,496 $ 112,501 $ 453,457 $ 106,372 $ 1,973,826

Intercompany revenues 1,121 — — 41 1,162

Reconciliation to consolidated revenue

Corporate and other (1)

Total operating revenues $ 2,036,412

Natural gas purchases 528,992 — 372,431 1,006 902,429

Operation and maintenance 230,876 56,167 16,089 46,930 350,062

Regulatory rider expenses 87,199 — — — 87,199

Depreciation and amortization 140,368 24,105 187 23,010 187,670

Gain on sale of assets — ( 56,187 ) — — ( 56,187 )

Interest income (2)

2,552 685 157 9,147 12,541

Other segment income (expense), net (3)

25,236 16,971 1,365 ( 731 ) 42,841

Interest expense, net of capitalized interest 69,893 26,702 13,097 23,170 132,862

1 unchanged sentence

Equity in earnings of affiliates — — — 3,813 3,813

Net financial earnings $ 133,400 33,662 111,515 12,229 $ 290,806 26 ( 4 ) $ 290,828

Capital expenditures $ 419,453 104,287 — 45,338 $ 569,078 2,241 — $ 571,319

Operating revenues

External customers $ 1,011,284 124,131 681,446 (1) 88,700 $ 1,905,561 57,433 — $ 1,962,994

Intercompany $ 1,349 — 10,170 4,159 $ 15,678 205 ( 15,883 ) $ —

Net income attributable to reportable segments $ 213,541 $ 61,156 $ 40,878 $ 18,541 $ 334,116

Reconciliation to consolidated net income

Corporate and other (1)

Total net income $ 335,627

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

(Thousands) NJNG CEV ES S&T Total

Operating revenues attributable to reportable segments $ 1,018,482 $ 130,563 $ 490,266 $ 94,851 $ 1,734,162

Intercompany revenues 1,350 — ( 4,875 ) 1,358 ( 2,167 )

Reconciliation to consolidated revenue

Corporate and other (1)

Total operating revenues $ 1,796,539

Natural gas purchases 414,635 — 305,938 1,028 721,601

Operation and maintenance 225,260 44,042 24,969 43,083 337,354

Regulatory rider expenses 60,327 — — — 60,327

Depreciation and amortization 112,492 27,869 205 24,900 165,466

1 unchanged sentence

2,448 — 452 10,172 13,072

Other segment income (expense), net (3)

17,915 14,961 578 35 33,489

Interest expense, net of capitalized interest 62,288 28,545 15,233 23,441 129,507

Income tax provision (benefit) $ 33,065 ( 7,683 ) 24,343 3,444 $ 53,169 ( 1,477 ) ( 2,417 ) $ 49,275

Income tax provision 31,793 11,406 33,331 4,551 81,081

Equity in earnings of affiliates — — — 2,816 2,816

Net financial earnings $ 131,414 44,458 68,517 12,835 $ 257,224 4,758 ( 155 ) $ 261,827

Capital expenditures $ 390,394 107,303 — 40,916 $ 538,613 2,306 — $ 540,919

Operating revenues

External customers $ 1,127,417 128,280 1,529,178 (1) 65,286 $ 2,850,161 55,818 — $ 2,905,979

Intercompany $ 1,350 — 94 2,449 $ 3,893 364 ( 4,257 ) $ —

Net income attributable to reportable segments $ 133,400 33,662 106,745 12,229 $ 286,036

Reconciliation to consolidated net income

Corporate and other (1)

Total net income $ 289,775

Operating revenues attributable to reportable segments $ 1,011,284 $ 124,131 $ 681,446 $ 88,700 $ 1,905,561

Intercompany revenues 1,349 — 10,170 4,159 15,678

Reconciliation to consolidated revenue

Corporate and other (1)

Total operating revenues $ 1,962,994

Natural gas purchases 425,457 — 558,932 1,601 985,990

Operation and maintenance 226,780 40,089 19,351 34,648 320,868

Regulatory rider expenses 50,542 — — — 50,542

Depreciation and amortization 102,326 25,320 221 24,185 152,052

1 unchanged sentence

1,713 — 1,119 6,957 9,789

Other segment income (expense), net (3)

11,833 6,622 360 ( 107 ) 18,708

Interest expense, net of capitalized interest 56,595 28,569 11,400 25,803 122,367

Income tax provision $ 40,141 11,361 21,776 1,879 $ 75,157 1,059 ( 21 ) $ 76,195

Equity in loss of affiliates $ — — — 9,865 $ 9,865 — ( 1,688 ) $ 8,177

Net financial earnings $ 140,124 39,403 39,121 22,454 $ 241,102 ( 781 ) — $ 240,321

Capital expenditures $ 298,374 146,676 — 151,988 $ 597,038 1,390 — $ 598,428

Return of capital from equity investees $ — — — ( 5,479 ) $ ( 5,479 ) — — $ ( 5,479 )

(1) Includes sales to Canada for ES, which were $ 8.4 M and $ 2.4 M during the fiscal years ended September 30, 2023 and 2022, respectively.

There were no sales to Canada for ES during the fiscal year ended September 30, 2024.

(2) The amortization of acquired wholesale energy contracts is excluded above and is included in natural gas purchases - nonutility on the Consolidated Statements of Operations.

(3) Included in other income, net on the Consolidated Statements of Operations.

Income tax provision (benefit) 33,065 ( 7,683 ) 24,343 3,444 53,169

Equity in earnings of affiliates — — — 3,126 3,126

Net income attributable to reportable segments $ 131,414 44,458 78,848 13,154 267,874

Reconciliation to consolidated net income

Corporate and other (1)

Total net income $ 264,724

(1) Corporate and other includes HSO and intercompany eliminations.

(2) Interest income is included in other income, net on the Consolidated Statements of Operations.

(3) Includes other income, net less interest income on the Consolidated Statements of Operations.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

The Company’s assets at end of period for the various reporting segments and other business operations, as of September 30, are detailed below:

Segments Intercompany

(Thousands) NJNG CEV ES S&T Subtotal HSO Assets (1)

2024 $ 4,789,835 1,157,573 108,710 1,025,457 $ 7,081,575 159,444 ( 259,374 ) $ 6,981,645

2023 $ 4,414,829 1,128,577 123,775 1,011,959 $ 6,679,140 171,275 ( 312,919 ) $ 6,537,496

2022 $ 4,030,686 1,015,065 333,064 999,520 $ 6,378,335 159,068 ( 275,987 ) $ 6,261,416

(1) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation.

The CEO, who uses NFE as a measure of profit or loss in measuring the results of the Company’s reporting segments and other business operations, is the chief operating decision maker of the Company.

A reconciliation of consolidated NFE to consolidated net income, as of September 30, is as follows:

(Thousands) 2024 2023 2022

Net financial earnings $ 290,828 $ 261,827 $ 240,321

Unrealized loss (gain) on derivative instruments and related transactions 19,574 ( 38,081 ) ( 59,906 )

Tax effect ( 4,652 ) 9,050 14,248

Effects of economic hedging related to natural gas inventory ( 18,192 ) 34,699 19,939

Tax effect 4,323 ( 8,246 ) ( 4,738 )

Gain on equity method investment — ( 300 ) ( 5,521 )

Tax effect — ( 19 ) 1,377

Net income $ 289,775 $ 264,724 $ 274,922

The Company uses derivative instruments as economic hedges of purchases and sales of physical natural gas inventory.

For GAAP purposes, these derivatives are recorded at fair value and related changes in fair value are included in reported earnings.

Revenues and cost of natural gas related to physical natural gas flow are recognized when the natural gas is delivered to customers.

Consequently, there is a mismatch in the timing of earnings recognition between the economic hedges and physical natural gas flows.

Timing differences occur in two ways:

• unrealized gains and losses on derivatives are recognized in reported earnings in periods prior to physical natural gas inventory flows;

• unrealized gains and losses of prior periods are reclassified as realized gains and losses when derivatives are settled in the same period as physical natural gas inventory movements occur.

NFE is a measure of the earnings based on eliminating these timing differences, to effectively match the earnings effects of the economic hedges with the physical sale of natural gas, SRECs and foreign currency contracts.

Consequently, to reconcile between net income and NFE, current-period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item.

Realized derivative gains and losses are also included in current-period net income.

However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the derivatives with realized margins on physical natural gas flows.

NFE also excludes certain transactions associated with equity method investments, including impairment charges, which are non-cash charges, and return of capital in excess of the carrying value of our investment.

These are considered unusual in nature and occur infrequently such that they are not indicative of the Company’s performance for its ongoing operations.

Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE.

The Company ’ s capital expenditures and assets for the various reportable segments, as of September 30, are detailed below:

(Thousands) NJNG CEV ES S&T Total

Capital expenditures $ 437,635 238,185 — 27,763 $ 703,583

Segment assets $ 5,198,116 1,308,969 98,429 1,033,439 $ 7,638,953

Corporate and other $ ( 60,178 )

Total assets $ 7,578,775

Capital expenditures $ 419,453 104,287 — 45,338 $ 569,078

Segment assets $ 4,789,835 1,157,573 108,710 1,025,457 $ 7,081,575

Corporate and other $ ( 99,930 )

Total assets $ 6,981,645

(1) Corporate and other includes HSO and intercompany eliminations.

RELATED PARTY TRANSACTIONS

In April 2020, NJNG entered into a five-year agreement for 3 Bcf of firm storage capacity with Steckman Ridge, which expires on March 31, 2025.

Under the terms of the agreement, NJNG incurs demand fees, at market rates, of approximately $ 9.3 M annually, a portion of which is eliminated in consolidation.

In April 2020, NJNG entered into a five-year agreement for 3 Bcf of firm storage capacity with Steckman Ridge, which expired on March 31, 2025.

In March 2025, NJNG entered into a new two-year agreement for 3 Bcf of firm storage capacity with Steckman Ridge, which expires on March 31, 2027.

Under the terms of the new agreement, NJNG incurs demand fees, at market rates, of approximately $ 6.5 M annually, a portion of which is eliminated in consolidation.

These fees are recoverable through NJNG’s BGSS mechanism and are included as a component of regulatory assets.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

ES may periodically enter into storage or park and loan agreements with its affiliated FERC-jurisdictional natural gas storage facility, Steckman Ridge.

ES may periodically enter into storage or park and loan agreements with Steckman Ridge.

As of September 30, 2025, ES entered into transactions with Steckman Ridge for varying terms, all of which expire by March 31, 2027.

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NJNG entered into two transportation agreements with Adelphia, each for committed capacity of 130,000 Dths per day.

The first is for five years in Zone South with an expiration date of August 8, 2027, and the second is for 15 years in Zone North, with an expiration date of October 31, 2038.

The first is for five years in Zone South with an expiration date of August 8, 2027, and the second is for 15 years in Zone North, which began in November 2023, with an expiration date of October 31, 2038.

New Jersey Resources Corporation

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)

ES had a five-year agreement for 3 Bcf of firm storage capacity with Leaf River, the effects of which were eliminated in consolidation.

1 unchanged sentence

NJNG and CEV entered into a 15-year sublease and PPA related to an onsite solar array and the related energy output at the Company’s headquarters in Wall, New Jersey, with an expiration date of March 1, 2036, the effects of which are immaterial to the Consolidated Financial Statements.

NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, with an expiration date of July 1, 2037, the effects of which are eliminated in consolidation.

NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, each with an expiration date of July 1, 2037, the effects of which are eliminated in consolidation.

NJNG and CEV entered into a 20-year sublease and PPA related to an onsite solar array and the related energy output at the Company’s LNG plant in Howell, New Jersey, with an expiration date of June 1, 2042, the effects of which are immaterial to the Consolidated Financial Statements.

On January 3, 2025, Adelphia and ES entered into a transportation agreement for committed capacity of 10,000 Dths per day, which expired on February 28, 2025, and was not renewed.

The intercompany profits for certain transactions between NJNG and ES and NJNG and Adelphia are not eliminated in accordance with ASC 980, Regulated Operations.

SUBSEQUENT EVENT

On November 25, 2024, CEV completed the sale of its residential solar portfolio and related assets and liabilities included in The Sunlight Advantage® program to a third party for a total purchase price of $ 132.5 M.

The transaction is expected to generate a pre-tax gain of approximately $ 45 M to $ 60 M, which will be recognized in the Consolidated Statements of Operations in the first quarter of fiscal 2025.

On November 25, 2024, CEV completed the sale of its residential solar portfolio to a third party, which primarily included residential solar energy projects and host customer contracts, for a purchase price of $ 132.5 M.

The transaction also included a post-closing working capital adjustment and was subject to a transition services agreement.

CEV had certain residential solar energy projects under contract and in various stages of development that were transferred to the buyer once the assets became operational.

The transfer of these projects commenced in January 2025 and continued throughout fiscal 2025.

As of September 30, 2025, CEV received approximately $ 4.7 M related to the transfer of these assets.

During fiscal 2025, the Company recognized a pre-tax gain on sale of assets of approximately $ 58.2 M on the Consolidated Statements of Operations.

Also, in connection with the sale, CEV entered into an agreement with the buyer to leaseback certain residential solar energy projects that have not yet passed the fifth anniversary of their placed-in-service dates.

The assets are subject to leaseback until the fifth anniversary of the applicable placed-in-service date of the project.

The impact of these transactions is considered immaterial to the Company’s Consolidated Financial Statements.

New Jersey Resources Corporation

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data