NEW JERSEY RESOURCES CORP 10-K

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK (Continued) The following is a summary of fair market value of financial derivatives as of September 30, 2025, by method of valuation and by maturity for each fiscal year period: (Thousands) 2026 2027 2028 - 2030 After 2030 Total Fair Value Price based on ICE $ 7,035 $ 343 $ 312 $ — $ 7,690 The following is a summary of financial derivatives by type as of September 30, 2025: Volume Bcf Price per MMBtu Amounts included in Derivatives (Thousands) NJNG Futures 36.1 $1.10 - $4.36 $ 346 ES Futures (4.7) $1.69 - $5.19 7,344 Total $ 7,690 The following table reflects the changes in the fair market value of physical commodity contracts: Balance Increase Less Balance (Thousands) September 30, 2024 (Decrease) in Fair Market Value Amounts Settled September 30, 2025 NJNG - Prices based on other external data $ (558) (7,073) (7,659) $ 28 ES - Prices based on other external data (12,717) 3,015 (4,914) (4,788) Total $ (13,275) (4,058) (12,573) $ (4,760) Our market price risk is predominately linked with changes in the price of natural gas at the Henry Hub, the delivery point for the NYMEX natural gas futures contracts. Based on price sensitivity analysis, an illustrative 10% movement in the natural gas futures contract price, for example, increases (decreases) the reported derivative fair value of all open, unadjusted Henry Hub natural gas futures and fixed price swap positions by approximately $3.5M. This analysis does not include potential changes to reported credit adjustments embedded in the $7.1M reported fair value. Derivative Fair Value Sensitivity Analysis (Thousands) Henry Hub Futures and Fixed Price Swaps Percent increase in NYMEX natural gas futures prices 0% 5% 10% 15% 20% Estimated change in derivative fair value $ — $ (1,732) $ (3,465) $ (5,197) $ (6,929) Ending derivative fair value $ 7,144 $ 5,412 $ 3,679 $ 1,947 $ 215 Percent decrease in NYMEX natural gas futures prices 0% (5)% (10)% (15)% (20)% Estimated change in derivative fair value $ — $ 1,732 $ 3,465 $ 5,197 $ 6,929 Ending derivative fair value $ 7,144 $ 8,876 $ 10,609 $ 12,341 $ 14,073 Wholesale Credit Risk The following is a summary of gross and net credit exposures, grouped by investment and non-investment grade counterparties, as of September 30, 2025. Gross credit exposure for ES is defined as the unrealized fair value of derivative and energy trading contracts, plus any outstanding wholesale receivable for the value of natural gas or power delivered and/or financial derivative commodity contract that has settled for which payment has not yet been received. Gross credit exposure for S&T is defined as demand and estimated usage fees for contracted services and/or market value of loan balances for which payment has not yet been received. Net credit exposure is defined as gross credit exposure reduced by collateral received from counterparties and/or payables, where netting agreements exist. The amounts presented below exclude accounts receivable for NJNG retail natural gas sales and services. Page 59 New Jersey Resources Corporation Part II ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK (Continued) ES’s, CEV’s and S&T’s counterparty credit exposure as of September 30, 2025, is as follows: (Thousands) Gross Credit Exposure Net Credit Exposure Investment grade $ 86,917 $ 83,101 Noninvestment grade 5,543 1,751 Internally-rated investment grade 12,576 12,235 Internally-rated noninvestment grade 20,987 14,742 Total $ 126,023 $ 111,829 NJNG’s counterparty credit exposure as of September 30, 2025, is as follows: (Thousands) Gross Credit Exposure Net Credit Exposure Investment grade $ 9,460 $ 7,507 Noninvestment grade 319 — Internally-rated investment grade 102 — Internally-rated noninvestment grade 682 149 Total $ 10,563 $ 7,656 Due to the inherent volatility in the market price for natural gas, electricity and RECs, the market value of contractual positions with individual counterparties could exceed established credit limits or collateral provided by those counterparties. If a counterparty failed to perform the obligations under its contract (for example, failed to make payment for natural gas received), we could sustain a loss. This loss would comprise the loss on natural gas delivered but not paid for and/or the cost of replacing natural gas not delivered or received at a price that exceeds the original contract price. Any such loss could have a material impact on our financial condition, results of operations or cash flows. Effects of Interest Rate Fluctuations We are also exposed to changes in interest rates on our debt hedges and variable rate debt. We do not believe an immediate 10% increase or decrease in interest rates would have a material effect on our operating results or cash flows. Information regarding NJR’s interest rate risk can be found in the Liquidity and Capital Resources - Debt section of Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations . Effects of Inflation Any change in price levels has an effect on operating results due to the capital-intensive and regulated nature of our utility subsidiary. The Company’s operations are sensitive to increases in the rate of inflation because of its operational and capital spending requirements in both its regulated and non-regulated businesses. We attempt to minimize the effects of inflation through cost control, productivity improvements and regulatory actions, when appropriate. See Item 1A. Risk Factors for additional information related to the impact of recent increases in inflation rates. Page 60 New Jersey Resources Corporation Part II ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING Management of New Jersey Resources Corporation is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act. The Company’s internal control over financial reporting is a process designed to provide reasonable assurance to the Company’s Management and Board of Directors regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP and includes policies and procedures that: • pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; • provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and • provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements. Under the supervision and with the participation of the Company’s management, including its principal executive officer and principal financial officer, management conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting as of September 30, 2025. In making this assessment, management used the criteria for effective internal control over financial reporting described in the Internal Control-Integrated Framework (2013) set forth by the Committee of Sponsoring Organizations of the Treadway Commission. Based on the assessment, management concluded that, as of September 30, 2025, the Company’s internal control over financial reporting was effective to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. The conclusion of the Company’s principal executive officer and principal financial officer is based on the recognition that there are inherent limitations in all systems of internal control over financial reporting. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements, errors or fraud. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. The Company’s independent registered public accounting firm, Deloitte & Touche LLP, has issued its report on the effectiveness of the Company’s internal control over financial reporting as of September 30, 2025, which appears herein. November 20, 2025 Page 61 New Jersey Resources Corporation Part II ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued) REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareowners and the Board of Directors of New Jersey Resources Corporation Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of New Jersey Resources Corporation and subsidiaries (the “Company”) as of September 30, 2025 and 2024, the related consolidated statements of operations, comprehensive income, common stock equity, and cash flows, for each of the three years in the period ended September 30, 2025, and the related notes and the financial statement schedule listed in the Index at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended September 30, 2025, in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of September 30, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated November 20, 2025, expressed an unqualified opinion on the Company’s internal control over financial reporting. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Regulation — Impact of Rate-Regulation on the Financial Statements — Refer to Notes 2 and 4 to the financial statements Critical Audit Matter Description New Jersey Natural Gas Company (“NJNG”), a subsidiary of the Company, is a regulated gas distribution company and is subject to regulation by the New Jersey Board of Public Utilities (the “BPU”). Management has determined NJNG meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements in accordance with ASC 980, Regulated Operations, and reflect the effects of regulatory actions. Page 62 New Jersey Resources Corporation Part II ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued) Regulatory assets are recognized for the effect of transactions or events where future recovery of underlying costs is probable in regulated customer rates. The effect of such accounting is to defer certain or qualifying costs that would otherwise currently be charged to expense. Regulatory liabilities are recognized for amounts that are expected to be returned to customers through future regulated customer rates. Regulatory decisions can have an impact on the recovery of costs, the rate of return earned on investment, and the timing and amount of assets to be recovered by rates. While NJNG expects to recover costs from customers through regulated rates, there is a risk that the BPU will not approve full recovery of such costs or full recovery of all amounts invested in the utility business and a reasonable return on that investment. We identified the impact of rate regulation at NJNG as a critical audit matter due to the significant judgments made by management to support its assertions about the impacted account balances and disclosures, including assessing the probability of both recovery in rates of incurred costs, and refunds to customers. Auditing these judgments requires specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities. How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to the impact of regulatory orders, including the probability of both recovery in rates of incurred costs, and refunds to customers, included the following, among others: • We tested the effectiveness of management’s internal controls over the evaluation of the likelihood of recovery or refund in future rates of costs deferred as regulatory assets and liabilities. We tested the effectiveness of management’s internal controls over the recognition of amounts deferred as regulatory assets or liabilities and the monitoring and evaluation of regulatory developments that may affect the probability of recovering costs in future rates or of a future reduction in rates due to refunds to customers. • We obtained and read relevant regulatory orders issued by the BPU for NJNG and other publicly available information to assess the probability of recovery in future rates or of a future reduction in rates based on precedence of the BPU’s treatment of similar costs under similar circumstances. • We obtained an analysis from management regarding the probability of recovery for regulatory assets or refund or future reduction in rates for regulatory liabilities to assess management’s assertion that amounts are probable of recovery or a future reduction in rates. • We evaluated the Company’s disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments. /s/ Deloitte & Touche LLP Morristown, New Jersey November 20, 2025 We have served as the Company’s auditor since 1951. Page 63 New Jersey Resources Corporation Part II ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued) REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareowners and the Board of Directors of New Jersey Resources Corporation Opinion on Internal Control over Financial Reporting We have audited the internal control over financial reporting of New Jersey Resources Corporation and subsidiaries (the “Company”) as of September 30, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of September 30, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended September 30, 2025, of the Company and our report dated November 20, 2025, expressed an unqualified opinion on those financial statements. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Deloitte & Touche LLP Morristown, New Jersey November 20, 2025 Page 64 New Jersey Resources Corporation Part II ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued) CONSOLIDATED STATEMENTS OF OPERATIONS (Thousands, except per share data) Fiscal years ended September 30, 2025 2024 2023 OPERATING REVENUES Utility $ 1,301,496 $ 1,018,482 $ 1,011,284 Nonutility 734,916 778,057 951,710 Total operating revenues 2,036,412 1,796,539 1,962,994 OPERATING EXPENSES Natural gas purchases: Utility 521,103 405,332 416,158 Nonutility 372,211 304,426 555,579 Related parties 5,952 7,147 7,206 Operation and maintenance 410,506 394,636 373,568 Regulatory rider expenses 87,199 60,327 50,542 Depreciation and amortization 188,774 166,567 152,941 Gain on sale of assets ( 58,200 ) — — Total operating expenses 1,527,545 1,338,435 1,555,994 OPERATING INCOME 508,867 458,104 407,000 Other income, net 46,244 41,553 26,083 Interest expense, net of capitalized interest 128,595 130,275 123,014 INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES 426,516 369,382 310,069 Income tax provision 96,956 84,906 49,275 Equity in earnings of affiliates 6,067 5,299 3,930 NET INCOME $ 335,627 $ 289,775 $ 264,724 EARNINGS PER COMMON SHARE Basic $ 3.35 $ 2.94 $ 2.73 Diluted $ 3.33 $ 2.92 $ 2.71 WEIGHTED AVERAGE SHARES OUTSTANDING Basic 100,244 98,634 97,028 Diluted 100,788 99,289 97,627 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Thousands) Fiscal years ended September 30, 2025 2024 2023 Net income $ 335,627 $ 289,775 $ 264,724 Other comprehensive (loss) income, net of tax Reclassifications of losses to net income on derivatives designated as hedging instruments, net of tax of $( 317 ), $( 317 ) and $( 317 ), respectively 1,052 1,054 1,053 Adjustment to postemployment benefit obligation, net of tax of $ 1,803 , $( 706 ) and $ 1,873 , respectively ( 5,994 ) 2,384 ( 6,186 ) Other comprehensive (loss) income, net of tax ( 4,942 ) 3,438 ( 5,133 ) Comprehensive income $ 330,685 $ 293,213 $ 259,591 See Notes to Consolidated Financial Statements Page 65 New Jersey Resources Corporation Part II ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued) CONSOLIDATED STATEMENTS OF CASH FLOWS (Thousands) Fiscal years ended September 30, 2025 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 335,627 $ 289,775 $ 264,724 Adjustments to reconcile net income to cash flows from operating activities Unrealized (gain) loss on derivative instruments ( 12,126 ) 19,574 ( 38,081 ) Gain on sale of assets ( 58,200 ) — — Depreciation and amortization 188,774 166,567 152,941 Amortization of acquired wholesale energy contracts — 125 2,271 Allowance for equity used during construction ( 9,973 ) ( 6,874 ) ( 7,137 ) Allowance for doubtful accounts 10,030 1,229 1,570 Non-cash lease expense 4,451 4,674 3,708 Deferred income taxes 76,971 85,735 30,462 Equivalent value of ITCs recognized on equipment financing ( 16,983 ) ( 15,328 ) ( 6,986 ) Manufactured gas plant remediation costs ( 12,854 ) ( 23,451 ) ( 9,571 ) Cost of removal - asset retirement obligations ( 2,044 ) ( 1,727 ) ( 1,526 ) Contributions to postemployment benefit plans ( 1,025 ) ( 2,659 ) ( 4,706 ) Taxes related to stock-based compensation ( 1,934 ) ( 1,219 ) ( 588 ) Changes in: Components of working capital ( 31,899 ) ( 61,058 ) 61,525 Other noncurrent assets and liabilities ( 2,466 ) ( 27,956 ) 30,387 Cash flows from operating activities 466,349 427,407 478,993 CASH FLOWS USED IN INVESTING ACTIVITIES Expenditures for: Utility plant ( 391,906 ) ( 372,019 ) ( 350,304 ) Solar equipment ( 238,185 ) ( 104,287 ) ( 107,303 ) Storage and transportation and other ( 29,957 ) ( 46,628 ) ( 42,757 ) Cost of removal ( 46,030 ) ( 48,385 ) ( 40,555 ) Distribution from equity investees in excess of equity in earnings 612 2,246 2,294 Proceeds from sale of assets 137,195 — — Cash flows used in investing activities ( 568,271 ) ( 569,073 ) ( 538,625 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from long-term debt 300,000 250,000 225,000 Payments of long-term debt ( 206,922 ) ( 125,066 ) ( 71,934 ) Payments of term loan — — ( 150,000 ) (Payments of) proceeds from short-term debt, net ( 96,200 ) 39,700 ( 21,850 ) Proceeds from sale leaseback transactions - solar 251,171 64,694 167,790 Proceeds from sale leaseback transactions - natural gas meters 11,714 8,814 8,441 Payments of common stock dividends ( 180,066 ) ( 165,063 ) ( 150,973 ) Proceeds from waiver discount issuance of common stock 19,910 59,730 42,807 Proceeds from issuance of common stock - DRP 14,918 14,676 14,993 Tax withholding payments related to net settled stock compensation ( 12,566 ) ( 5,724 ) ( 4,577 ) Cash flows from financing activities 101,959 141,761 59,697 Change in cash, cash equivalents and restricted cash 37 95 65 Cash, cash equivalents and restricted cash at beginning of period 1,612 1,517 1,452 Cash, cash equivalents and restricted cash at end of period $ 1,649 $ 1,612 $ 1,517 CHANGES IN COMPONENTS OF WORKING CAPITAL Receivables $ ( 15,100 ) $ ( 12,744 ) $ 112,628 Inventories ( 21,647 ) ( 11,086 ) 67,445 Recovery of natural gas costs 6,931 734 ( 14,427 ) Natural gas purchases payable 5,078 6,238 ( 183,772 ) Natural gas purchases payable - related parties ( 234 ) 16 8 Deferred revenue 1,033 ( 39,832 ) 934 Accounts payable and other 6,188 15,640 7,537 Prepaid expenses 906 ( 2,013 ) ( 1,169 ) Prepaid and accrued taxes 1,052 ( 23,517 ) 16,415 Restricted broker margin accounts ( 1,295 ) 19,535 46,364 Customers’ credit balances and deposits ( 7,298 ) ( 6,315 ) 11,664 Other current assets and liabilities ( 7,513 ) ( 7,714 ) ( 2,102 ) Total $ ( 31,899 ) $ ( 61,058 ) $ 61,525 SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION Cash paid for: Interest (net of amounts capitalized) $ 130,333 $ 120,239 $ 108,194 Income taxes $ 9,883 $ 21,313 $ 4,282 Accrued capital expenditures $ 60,965 $ 22,535 $ 25,867 Notes receivable recognized as non-cash investing activity $ 42,500 $ — $ — See Notes to Consolidated Financial Statements Page 66 New Jersey Resources Corporation Part II ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued) CONSOLIDATED BALANCE SHEETS ASSETS (Thousands) September 30, 2025 2024 PROPERTY, PLANT AND EQUIPMENT Utility plant, at cost $ 4,434,220 $ 4,221,395 Construction work in progress 395,943 233,295 Nonutility plant and equipment, at cost 1,972,811 1,834,956 Construction work in progress 151,404 206,869 Total property, plant and equipment 6,954,378 6,496,515 Accumulated depreciation and amortization, utility plant ( 850,757 ) ( 786,594 ) Accumulated depreciation and amortization, nonutility plant and equipment ( 293,522 ) ( 306,698 ) Property, plant and equipment, net 5,810,099 5,403,223 CURRENT ASSETS Cash and cash equivalents 591 1,017 Customer accounts receivable: Billed 109,366 105,531 Unbilled revenues 24,194 20,094 Allowance for doubtful accounts ( 11,371 ) ( 8,506 ) Regulatory assets 48,898 73,070 Natural gas in storage, at average cost 215,836 199,125 Materials and supplies, at average cost 43,420 38,484 Prepaid expenses 10,848 11,754 Prepaid taxes 67,143 67,066 Derivatives, at fair value 12,514 6,813 Restricted broker margin accounts 8,920 13,243 Other current assets 39,517 26,904 Total current assets 569,876 554,595 NONCURRENT ASSETS Investments in equity method investees 101,243 101,744 Regulatory assets 672,518 609,192 Operating lease assets 185,596 184,485 Derivatives, at fair value 2,319 806 Software costs 11,151 10,522 Deferred income taxes 20,821 20,751 Postemployment employee benefit assets 40,813 24,660 Notes receivable 42,500 — Other noncurrent assets 121,839 71,667 Total noncurrent assets 1,198,800 1,023,827 Total assets $ 7,578,775 $ 6,981,645 See Notes to Consolidated Financial Statements Page 67 New Jersey Resources Corporation Part II ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued) CAPITALIZATION AND LIABILITIES (Thousands, except share data) September 30, 2025 2024 CAPITALIZATION Common stock, $ 2.50 par value; authorized 150,000,000 shares; outstanding shares September 30, 2025 — 100,478,590 ; September 30, 2024 — 99,461,448 $ 250,705 $ 248,159 Premium on common stock 676,635 633,811 Accumulated other comprehensive loss, net of tax ( 11,463 ) ( 6,521 ) Treasury stock at cost and other; shares September 30, 2025 — 17,273 ; September 30, 2024 — 16,302 24,422 26,220 Retained earnings 1,451,367 1,298,774 Common stock equity 2,391,666 2,200,443 Long-term debt 3,250,387 2,879,464 Total capitalization 5,642,053 5,079,907 CURRENT LIABILITIES Current maturities of long-term debt 158,192 189,006 Short-term debt 195,600 291,800 Natural gas purchases payable 62,593 57,515 Natural gas purchases payable to related parties 641 875 Deferred revenue 22,605 21,572 Accounts payable and other 204,478 169,232 Dividends payable 47,719 44,752 Accrued taxes 11,722 10,593 Regulatory liabilities 12,884 32,981 New Jersey Clean Energy Program 17,171 18,491 Derivatives, at fair value 7,620 6,271 Restricted broker margin accounts 3,949 1,146 Operating lease liabilities 4,388 4,945 Customers’ credit balances and deposits 31,297 38,595 Total current liabilities 780,859 887,774 NONCURRENT LIABILITIES Deferred income taxes 438,411 358,783 Deferred investment tax credits 1,878 2,156 Deferred revenue 17,580 3,095 Derivatives, at fair value 4,283 11,490 Manufactured gas plant remediation 166,990 161,650 Postemployment employee benefit liabilities 108,830 64,609 Regulatory liabilities 171,177 175,847 Operating lease liabilities 159,131 159,303 Asset retirement obligations 76,507 66,698 Other noncurrent liabilities 11,076 10,333 Total noncurrent liabilities 1,155,863 1,013,964 Commitments and contingent liabilities (Note 14) Total capitalization and liabilities $ 7,578,775 $ 6,981,645 See Notes to Consolidated Financial Statements Page 68 New Jersey Resources Corporation Part II ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued) CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY (Thousands) Number of Shares Common Stock Premium on Common Stock Accumulated Other Comprehensive (Loss) Income Treasury Stock And Other Retained Earnings Total Balance as of September 30, 2022 96,250 $ 241,616 $ 519,697 $ ( 4,826 ) $ ( 6,805 ) $ 1,067,528 $ 1,817,210 Net income — — — — — 264,724 264,724 Other comprehensive loss — — — ( 5,133 ) — — ( 5,133 ) Common stock issued: Incentive compensation plan 136 339 4,829 — — — 5,168 Dividend reinvestment plan (1) 258 205 6,069 — 8,760 — 15,034 Waiver discount 948 1,298 28,059 — 13,450 — 42,807 Cash dividend declared ($ 1.59 per share) — — — — — ( 154,418 ) ( 154,418 ) Treasury stock and other ( 8 ) — — — 5,343 — 5,343 Balance as of September 30, 2023 97,584 243,458 558,654 ( 9,959 ) 20,748 1,177,834 1,990,735 Net income — — — — — 289,775 289,775 Other comprehensive income — — — 3,438 — — 3,438 Common stock issued: Incentive compensation plan 154 385 5,099 — — — 5,484 Dividend reinvestment plan (1) 346 864 13,780 — — — 14,644 Waiver discount 1,380 3,452 56,278 — — — 59,730 Cash dividend declared ($ 1.71 per share) — — — — — ( 168,835 ) ( 168,835 ) Treasury stock and other ( 3 ) — — — 5,472 — 5,472 Balance as of September 30, 2024 99,461 248,159 633,811 ( 6,521 ) 26,220 1,298,774 2,200,443 Net income — — — — — 335,627 335,627 Other comprehensive loss — — — ( 4,942 ) — — ( 4,942 ) Common stock issued: Incentive compensation plan 283 708 9,905 — — — 10,613 Dividend reinvestment plan 318 793 14,054 — — — 14,847 Waiver discount 418 1,045 18,865 — — — 19,910 Cash dividend declared ($ 1.825 per share) — — — — — ( 183,034 ) ( 183,034 ) Treasury stock and other ( 1 ) — — — ( 1,798 ) — ( 1,798 ) Balance as of September 30, 2025 100,479 $ 250,705 $ 676,635 $ ( 11,463 ) $ 24,422 $ 1,451,367 $ 2,391,666 (1) Certain shares sold through the DRP issued from treasury stock are at average cost, which may differ from the actual market price paid. See Notes to Consolidated Financial Statements Page 69 New Jersey Resources Corporation Part II ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued) 1. NATURE OF THE BUSINESS The Company provides regulated natural gas distribution services, transmission and storage services and operates certain unregulated businesses primarily through the following: NJNG provides natural gas utility service to residential and commercial customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean and Sussex counties in New Jersey and is subject to rate regulation by the BPU. NJNG comprises the Natural Gas Distribution segment. NJRCEV, the Company’s clean energy subsidiary, comprises the CEV segment, which owns and operates clean energy projects, including commercial solar installations located in New Jersey, Rhode Island, New York, Connecticut, Michigan, Indiana and Pennsylvania. On November 25, 2024, CEV completed the sale of its residential solar portfolio, and related assets and liabilities, to a third party for a purchase price of $ 132.5 M. See Note 17. Dispositions for more information regarding the transaction. NJRES comprises the ES segment. ES maintains and transacts around a portfolio of natural gas transportation and storage capacity contracts and provides physical wholesale energy, retail energy and energy management services in the U.S. NJR Midstream Holdings Corporation, which comprises the S&T segment, invests in energy-related ventures through its subsidiaries. The Company operates natural gas storage and transmission assets through the wholly-owned subsidiaries of Leaf River and Adelphia and is subject to rate regulation by FERC. The Company holds a 50 % combined ownership interest in Steckman Ridge, a FERC-jurisdictional natural gas storage facility located in Pennsylvania, which is accounted for under the equity method of accounting. NJR Retail Holdings Corporation has one principal subsidiary: NJRHS, which provides heating, central air conditioning, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey. NJRHS is included in HSO. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. Other financial investments or contractual interests that lack the characteristics of a voting interest entity, which are commonly referred to as variable interest entities, are evaluated by the Company to determine if the entity has the power to direct business activities and, therefore, would be considered a controlling interest that the Company would have to consolidate. Based on those evaluations, NJR has determined that it does not have any investments in variable interest entities as of September 30, 2025, 2024 and 2023. Investments in entities over which the Company does not have a controlling financial interest are accounted for under the equity method. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingencies during the reporting period. On a quarterly basis, or more frequently whenever events or changes in circumstances indicate a need, the Company evaluates its estimates, including those related to the calculation of equity method investments, lease liabilities, unbilled revenues, allowance for doubtful accounts, provisions for depreciation and amortization, long-lived assets, regulatory assets and liabilities, income taxes, pensions and other postemployment benefits, contingencies related to environmental matters and litigation and the fair value of derivative instruments and debt. AROs are evaluated periodically as required. The Company’s estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Page 70 New Jersey Resources Corporation Part II ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued) The Company has legal, regulatory and environmental proceedings during the normal course of business that can result in loss contingencies. When evaluating the potential for a loss, the Company will establish a reserve if a loss is probable and can be reasonably estimated, in which case it is the Company’s policy to accrue the full amount of such estimates. Where the information is sufficient only to establish a range of probable liability, and no point within the range is more likely than any other, it is the Company’s policy to accrue the lower end of the range. In the normal course of business, estimated amounts are subsequently adjusted to actual results that may differ from estimates. Revenues Revenues from the sale of natural gas to NJNG customers are recognized in the period that natural gas is delivered and consumed by customers, including an estimate for unbilled revenue. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the month. At the end of each month, the amount of natural gas delivered to each customer after the last meter reading through the end of the respective accounting period is estimated, and recognizes unbilled revenues related to these amounts. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects, unaccounted-for natural gas and the most current tariff rates. CEV recognizes revenue when SRECs are transferred to counterparties. SRECs are physically delivered through the transfer of certificates as per contractual settlement schedules. The SREC program officially closed to new qualified solar projects in April 2020. In December 2019, the BPU established the TREC as the successor to the SREC program. TRECs provide a fixed compensation base multiplied by an assigned project factor in order to determine their value. The project factor is determined by the type and location of the project, as defined. In July 2021, the BPU established a new successor solar incentive program, or SREC IIs. The ADI Program provides administratively set incentives for net metered projects of 5 MW or less. RECs generated through the production of electricity under this program are known as SREC IIs. TRECs and SREC IIs generated are required to be purchased monthly by a REC program administrator as appointed by the BPU. Revenue for TRECs and SREC IIs are recognized upon generation and are transferred monthly based upon metered solar electricity activity. Revenues for ES are recognized when the natural gas is physically delivered to the customer. In addition, changes in the fair value of derivatives that economically hedge the forecasted sales of the natural gas are recognized in operating revenues as they occur. ES also recognizes changes in the fair value of SREC derivative contracts for forward sales as a component of operating revenues. In December 2020, ES entered into a series of AMAs with an investment grade public utility to release pipeline capacity associated with certain natural gas transportation contracts, which commenced in November 2021. The AMAs include a series of temporary and permanent releases, and revenue under these agreements is recognized as the performance obligations are satisfied. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed-upon term. For permanent releases of pipeline capacity, which represent a transfer of contractual rights for such capacity, revenue is recognized upon the transfer of the underlying contractual rights. ES recognized approximately $ 19.7 M, $ 137.2 M and $ 48.5 M of operating revenue related to the AMAs on the Consolidated Statements of Operations during fiscal 2025, 2024 and 2023, respectively. Amounts received in excess of revenue recognized totaling approximately $ 36.8 M and $ 22.3 M are included in deferred revenue on the Consolidated Balance Sheets as of September 30, 2025 and 2024, respectively. S&T generates revenues from firm storage contracts and transportation contracts, related usage fees and hub services for the use of storage space, injections and withdrawals from their natural gas storage facility and the delivery of natural gas to customers. Demand fees are recognized as revenue over the term of the related agreement while usage fees and hub services revenues are recognized as services are performed. Revenues from all other activities are recorded in the period during which products or services are delivered and accepted by customers, or over the related contractual term. See Note 3. Revenue for further information. Page 71 New Jersey Resources Corporation Part II ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued) Natural Gas Purchases NJNG’s tariff includes a component for BGSS, which is designed to allow it to recover the cost of natural gas through rates charged to its customers and is typically revised on an annual basis. As part of computing its BGSS rate, NJNG projects its cost of natural gas, net of supplier refunds, the impact of hedging activities and cost savings created by BGSS incentive programs. NJNG subsequently recovers or credits the difference, if any, of actual costs compared with those included in current rates. Any underrecoveries or overrecoveries are either credited to customers or deferred and, subject to BPU approval, reflected in the BGSS rates in subsequent years. Natural gas purchases at ES are composed of natural gas costs to be paid upon completion of a variety of transactions, as well as realized gains and losses from settled derivative instruments and unrealized gains and losses on the change in fair value of derivative instruments that have not yet settled. Changes in the fair value of derivatives that economically hedge the forecasted purchases of natural gas are recognized in natural gas purchases as they occur. Demand Fees For the purpose of securing storage and pipeline capacity in support of their respective businesses, ES and NJNG enter into storage and pipeline capacity contracts, which require the payment of associated demand fees and charges that allow them access to a high priority of service in order to maintain the ability to access storage or pipeline capacity during a fixed time period, which generally ranges from one to 10 years. Many of these demand fees and charges are based on tariff rates as established and regulated by FERC. These charges represent commitments to pay storage providers and pipeline companies for the priority right to transport and/or store natural gas utilizing their respective assets. The following table summarizes the demand charges, which are net of capacity releases, and are included as a component of natural gas purchases on the Consolidated Statements of Operations for the fiscal years ended September 30: (Millions) 2025 2024 2023 ES $ 65.3 $ 72.6 $ 74.6 NJNG 247.1 200.4 183.4 Total $ 312.4 $ 273.0 $ 258.0 ES expenses demand charges over the term of the service being provided. NJNG’s costs associated with demand charges are included in its weighted average cost of natural gas. The demand charges are expensed based on NJNG’s BGSS sales and recovered as part of the natural gas commodity component of its BGSS tariff. Operations and Maintenance Expenses O&M includes salaries and benefits, materials and supplies, usage of vehicles, tools and equipment, payments to contractors, utility plant maintenance, amortization of software costs for unregulated entities, customer service, professional fees and other outside services, insurance expense, accretion of cost of removal for future retirements of utility assets and other administrative expenses, and are expensed as incurred. Stock-Based Compensation Stock-based compensation represents costs related to stock-based awards granted to employees and members of NJR’s Board of Directors. NJR recognizes stock-based compensation based upon the estimated fair value of awards. The recognition period for these costs begins at either the applicable service inception date or grant date and continues throughout the requisite service period. The related compensation cost is recognized as O&M on the Consolidated Statements of Operations. See Note 10. Stock-Based Compensation for further information. Page 72 New Jersey Resources Corporation Part II ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued) Income Taxes The Company computes income taxes using the asset and liability method, whereby deferred income taxes are generally determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. See Note 12. Income Taxes . In addition, the Company evaluates its tax positions to determine the appropriate accounting and recognition of future obligations associated with unrecognized tax benefits. NJR evaluates its tax positions to determine the appropriate accounting and recognition of potential future obligations associated with unrecognized tax benefits. A tax benefit claimed, or expected to be claimed, on a tax return may be recognized if it is more likely than not that the position will be upheld upon examination by the applicable taxing authority. Interest and penalties related to unrecognized tax benefits, if any, are recognized within income tax expense and accrued interest, and penalties are recognized within other noncurrent liabilities on the Consolidated Balance Sheets. To the extent that NJNG invests in property that qualifies for ITCs, the ITC is deferred and amortized to income over the life of the equipment in accordance with regulatory treatment. ITCs at the unregulated subsidiaries of NJR are recorded on the balance sheet as a reduction to property, plant and equipment when the property is placed in service, and recognized in earnings as a reduction of depreciation expense over the useful lives of the related assets. Investments in Equity Investees The Company accounts for its investment in Steckman Ridge using the equity method of accounting where it is not the primary beneficiary, as defined under ASC 810, Consolidation ; its respective ownership interests are 50% or less and/or it has significant influence over operating and management decisions. The Company’s share of earnings is recognized as equity in earnings of affiliates on the Consolidated Statements of Operations. Equity method investments are reviewed for impairment when changes in facts and circumstances indicate that the current fair value may be less than the asset’s carrying amount. If the Company determines the decline in the value of its equity method investment is other than temporary, an impairment charge is recorded in an amount equal to the excess of the carrying value of the asset over its fair value. See Note 7. Investments in Equity Investees for more information regarding impairments. Property, Plant and Equipment Property, plant and equipment is stated at original cost. Costs include direct labor, materials and third-party construction contractor costs, capitalized interest and certain indirect costs related to equipment and employees engaged in construction. Utility plant and nonutility plant for Adelphia also includes AFUDC. Upon retirement, the cost of depreciable property, plus removal costs less salvage, is charged to accumulated depreciation with no gain or loss recorded. Depreciation is computed on a straight-line basis over the useful life of the assets for the Company’s nonutility entities, using rates based on the estimated average lives of the various classes of depreciable property for NJNG. The composite rate of depreciation used for NJNG was 3.19 % of average depreciable property in fiscal 2025, 2.69 % in fiscal 2024 and 2.68 % in fiscal 2023. The Company recorded $ 188.8 M, $ 166.6 M and $ 152.9 M in depreciation expense during fiscal 2025, 2024 and 2023, respectively. Property, plant and equipment was comprised of the following as of September 30: (Thousands) Estimated Property Classifications Useful Lives 2025 2024 Distribution facilities 10 to 54 years $ 3,642,492 $ 3,436,308 Transmission facilities 28 to 40 years 662,801 656,098 Storage facilities 26 to 87 years 86,448 86,329 Solar property 15 to 35 years 988,445 885,518 Storage and transportation property 5 to 55 years 960,547 929,850 All other property 5 to 40 years 66,298 62,248 Construction work in progress 547,347 440,164 Total property, plant and equipment 6,954,378 6,496,515 Accumulated depreciation and amortization ( 1,144,279 ) ( 1,093,292 ) Property, plant and equipment, net $ 5,810,099 $ 5,403,223 Page 73 New Jersey Resources Corporation Part II ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued) Within storage and transportation property, base gas is required to maintain the necessary pressure and to allow for efficient operation of the Leaf River storage facility. The base gas is determined to be recoverable and is considered part of the facility and thus presented as a component in property, plant and equipment. This natural gas is not depreciated, as it is expected to be recovered and sold. The base gas had a cost basis of $ 21.4 M for both September 30, 2025 and 2024. Capitalized and Deferred Interest NJNG’s base rates include the ability to recover AFUDC on its construction work in progress. For all NJNG construction projects, an incremental cost of equity is recoverable during periods when NJNG’s short-term debt balances are lower than its construction work in progress. For more information on AFUDC treatment with respect to certain accelerated infrastructure projects, see Note 4. Regulation - Infrastructure Programs. Capitalized amounts associated with the debt and equity components of NJNG’s AFUDC are recorded in utility plant on the Consolidated Balance Sheets. Corresponding amounts for the debt component are recognized in interest expense and in other income for the equity component on the Consolidated Statements of Operations. Adelphia’s base rates include the ability to recover AFUDC on its construction work in progress. Capitalized amounts associated with Adelphia’s AFUDC are recorded in nonutility plant on the Consolidated Balance Sheets. Corresponding amounts for the debt component are recognized in interest expense and in other income for the equity component on the Consolidated Statements of Operations. Capitalized and deferred interest include the following for the fiscal years ended September 30: ($ in thousands) 2025 2024 2023 AFUDC: NJNG Adelphia NJNG Adelphia NJNG Adelphia Debt $ 6,486 $ 57 $ 4,729 $ 64 $ 3,546 $ 90 Equity 9,859 114 6,761 113 6,979 158 Total $ 16,345 $ 171 $ 11,490 $ 177 $ 10,525 $ 248 Weighted average interest rate 6.41 % 7.84 % 6.48 % 8.28 % 6.41 % 8.28 % Pursuant to a BPU order, NJNG is permitted to recover carrying costs on uncollected balances related to SBC program costs, which include NJCEP, RAC and USF expenditures. The NJCEP and RAC interest rates change each September based on the August 31 seven-year constant maturity treasury rate plus 60 basis points. The SBC rate was 4.58 %, 4.33 % and 4.79 % for the fiscal years ended September 30, 2025, 2024 and 2023, respectively. Accordingly, other income included $ 2.4 M, $ 2.6 M and $ 1.8 M in the fiscal years ended September 30, 2025, 2024 and 2023, respectively. CEV capitalizes interest on the allocation of the costs of debt borrowed for the financing of solar investments. Capitalized amounts are included in nonutility plant and equipment on the Consolidated Balance Sheets. Corresponding amounts are recognized in interest expense on the Consolidated Statements of Operations. Cash and Cash Equivalents Cash and cash equivalents consist of cash on deposit and temporary investments with maturities of three months or less, and excludes restricted cash related to escrow balances for utility plant projects at NJNG, which are recorded in other noncurrent assets on the Consolidated Balance Sheets. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheets to the total amounts in the Consolidated Statements of Cash Flows, as of September 30: (Thousands) 2025 2024 2023 Balance Sheet Cash and cash equivalents $ 591 $ 1,017 $ 954 Restricted cash in other noncurrent assets $ 1,058 $ 595 $ 563 Statements of Cash Flow Cash, cash equivalents and restricted cash $ 1,649 $ 1,612 $ 1,517 Page 74 New Jersey Resources Corporation Part II ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued) Allowance for Doubtful Accounts The Company segregates financial assets, primarily trade receivables and unbilled revenues due in one year or less, into portfolio segments based on shared risk characteristics, such as geographical location and regulatory environment, for evaluation of expected credit losses. Historical and current information, such as average write-offs, is applied to each portfolio segment to estimate the allowance for losses on uncollectible receivables. Additionally, the allowance for losses on uncollectible receivables is adjusted for reasonable and supportable forecasts of future economic conditions, which can include changing weather, commodity prices, regulations and macroeconomic factors, such as unemployment rates, among others. Loans and Notes Receivable NJNG currently provides loans, with terms ranging from five to 10 years, to customers that elect to purchase and install certain energy-efficient equipment in accordance with its BPU-approved SAVEGREEN program. The loans are recognized at fair value on the Consolidated Balance Sheets. The Company has approximately $ 21.5 M and $ 18.1 M recorded in other current assets and approximately $ 69.4 M and $ 53.6 M in other noncurrent assets as of September 30, 2025 and 2024, respectively, on the Consolidated Balance Sheets, related to the loans. On August 28, 2025, CEV entered into a seller-based financing arrangement with a third party for the sale of certain solar energy modules totaling $ 42.5 M. Amounts related to the financing are due to CEV no later than December 31, 2027, and are recorded as notes receivable within the Company’s consolidated balance sheet as of September 30, 2025. The Company evaluates loans and notes receivable for collectability each reporting period in accordance with the current expected credit loss model. If necessary, an allowance is recorded to reflect potential losses. As of September 30, 2025, the Company has not recorded a reserve for credit losses associated with outstanding loans and notes receivable. Regulatory Assets & Liabilities Under cost-based regulation, regulated utility enterprises generally are permitted to recover their operating expenses and earn a reasonable rate of return on their utility investment. NJNG is subject to accounting requirements resulting from the effects of rate regulation by the BPU. Accordingly, NJNG capitalizes or defers certain costs that are expected to be recovered from its customers as regulatory assets and recognizes certain obligations representing probable future expenditures as regulatory liabilities on the Consolidated Balance Sheets. See Note 4. Regulation for a more detailed description of NJNG’s regulatory assets and liabilities. Adelphia capitalizes or defers certain costs that are expected to be recovered from its customers as regulatory assets and recognizes certain obligations representing probable future expenditures as regulatory liabilities on the Consolidated Balance Sheets. See Note 4. Regulation for a more detailed description of Adelphia’s regulatory assets and liabilities. Natural Gas in Storage Natural gas in storage is reflected at average cost on the Consolidated Balance Sheets and represents natural gas and LNG that will be utilized in the ordinary course of business. The following table summarizes natural gas in storage, at average cost by reportable segment, as of September 30: 2025 2024 ($ in thousands) Natural Gas in Storage Bcf Natural Gas in Storage Bcf NJNG $ 184,099 30.8 $ 177,655 30.8 ES 30,686 13.2 21,378 13.1 S&T 1,051 0.3 92 — Total $ 215,836 44.3 $ 199,125 43.9 Page 75 New Jersey Resources Corporation Part II ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued) Derivative Instruments The Company accounts for its financial instruments, such as futures, options and interest rate contracts, as well as its physical commodity contracts related to the purchase and sale of natural gas at ES, as derivatives, and therefore recognizes them at fair value on the Consolidated Balance Sheets. The Company’s unregulated subsidiaries record changes in the fair value of their financial commodity derivatives in natural gas purchases and changes in the fair value of their physical forward contracts in natural gas purchases or operating revenues, as appropriate, on the Consolidated Statements of Operations. Ineffective portions of the cash flow hedges are recognized immediately in earnings. Cash flows from derivative financial instruments are included in cash flows from operating activities on the Consolidated Statements of Cash Flows. ASC 815, Derivatives and Hedging, also provides for a NPNS scope exception for qualifying physical commodity contracts for which physical delivery is probable and the quantities delivered are expected to be used or sold over a reasonable period of time in the normal course of business. The Company prospectively applies this normal scope exception on a case-by-case basis to physical commodity contracts at NJNG and PPAs at CEV. When applied, it does not account for these contracts until the contract settles and the related underlying natural gas or power is delivered. Gains and/or losses on NJNG’s derivatives used to economically hedge its regulated natural gas supply obligations, as well as its exposure to interest rate variability, are recoverable through its BGSS, a component of its tariff. Accordingly, the offset to the change in fair value of these derivatives is recorded as a regulatory asset or liability on the Consolidated Balance Sheets. See Note 5. Derivative Instruments for additional details regarding natural gas trading and hedging activities. Fair values of exchange-traded instruments, including futures and swaps, are based on unadjusted, quoted prices in active markets. The Company’s non-exchange-traded financial instruments, over-the-counter physical commodity contracts at ES and interest rate contracts are valued using observable, quoted prices for similar or identical assets when available. In establishing the fair value of contracts for which a quoted basis price is not available at the measurement date, management utilizes available market data and pricing models to estimate fair values. Fair values are subject to change in the near term and reflect management’s best estimate based on a variety of factors. Estimating fair values of instruments that do not have quoted market prices requires management’s judgment in determining amounts that could reasonably be expected to be received from, or paid to, a third party in settlement of the instruments. These amounts could be materially different from amounts that might be realized in an actual sale transaction. During fiscal 2020, the Company entered into treasury lock transactions to fix the benchmark treasury rate associated with debt issuances for NJNG and NJR that occurred during the fiscal year. Settlement of the NJNG treasury locks resulted in a loss, which was recorded as a component of regulatory assets on the Consolidated Balance Sheets and will be amortized in earnings over the term of the debt as a component of interest expense on the Consolidated Statements of Operations. NJR designated its treasury lock contracts as cash flow hedges; therefore, changes in fair value of the effective portion of the hedges were recorded in OCI. Settlement of the treasury locks resulted in a loss, which was recorded within OCI and is amortized into earnings over the term of the associated debt as a component of interest expense on the Consolidated Statements of Operations. Software Costs The Company capitalizes certain costs, such as software design and configuration, coding, testing and installation, that are incurred to purchase or create and implement computer software for internal use. Capitalized costs include external costs of materials and services utilized in developing or obtaining internal-use software and payroll and payroll-related costs for employees who are directly associated with and devote time to the internal-use software project. Maintenance costs are expensed as incurred. Upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Amortization is recorded on the straight-line basis over the estimated useful lives. Page 76 New Jersey Resources Corporation Part II ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued) The following table presents the software costs included in the Consolidated Financial Statements, as of September 30: (Thousands) 2025 2024 Balance Sheets Utility plant, at cost $ 132,868 $ 133,158 Construction work in progress $ 87,274 $ 26,659 Nonutility plant and equipment, at cost $ 344 $ 344 Accumulated depreciation and amortization, utility plant $ ( 24,906 ) $ ( 13,632 ) Accumulated depreciation and amortization, nonutility plant and equipment $ ( 70 ) $ ( 48 ) Software costs $ 11,151 $ 10,522 Statements of Operations Operation and maintenance $ 1,376 $ 13,087 Depreciation and amortization $ 11,296 $ 6,164 Long-lived Assets The Company reviews the recoverability of long-lived assets and finite-lived intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable, such as significant adverse changes in regulation, business climate or market conditions, including prolonged periods of adverse commodity and capacity prices. If there are changes indicating that the carrying value of such assets may not be recoverable, an undiscounted cash flows test is performed. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the asset, an impairment loss is recognized by reducing the recorded value of the asset to its fair value. 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 2025 and 2024, 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 that 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. See Note 9. 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. See Note 9. Debt for more details regarding sale leaseback transactions recorded as financing arrangements. Page 77 New Jersey Resources Corporation Part II ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued) 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. See Note 14. Commitments and Contingent Liabilities for more details. 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. See Note 11. 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 is 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. Page 78 New Jersey Resources Corporation Part II ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued) The following is an analysis of the change in the Company’s AROs for the fiscal years ended September 30: (Thousands) Balance at October 1 Accretion Additions Change in assumptions Retirements Balance at period end 2025 NJNG $ 59,674 3,353 351 7,079 ( 2,044 ) $ 68,413 NJRCEV $ 7,023 256 815 — — $ 8,094 2024 NJNG $ 55,285 3,039 152 2,925 ( 1,727 ) $ 59,674 NJRCEV $ 6,708 236 79 — — $ 7,023 Accretion for the next five years, for the fiscal years ended September 30, is estimated to be as follows: (Thousands) 2026 2027 2028 2029 2030 Total Estimated Accretion $ 3,955 4,156 4,376 4,616 4,868 $ 21,971 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, 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 ) Other comprehensive income, net of tax Other comprehensive income, before reclassifications, net of tax of $ 0 , $ 1,571 and $ 1,571 , respectively — ( 5,213 ) ( 5,213 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $( 317 ), $ 232 and $( 85 ), respectively 1,052 ( 781 ) (1) 271 Net current-period other comprehensive income, net of tax of $( 317 ), $ 1,803 and $ 1,486 , respectively 1,052 ( 5,994 ) ( 4,942 ) Balance as of September 30, 2025 $ ( 5,163 ) $ ( 6,300 ) $ ( 11,463 ) (1) Included in the computation of net periodic pension cost, a component of O&M on the Consolidated Statements of Operations. For more details, see Note 11. Employee Benefit Plans . Recently Adopted 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 was applied on a prospective basis. As the Company does not have equity securities subject to contractual sale restrictions, there was no impact on the Company’s financial position, results of operations, cash flows, and disclosures upon adoption. Page 79 New Jersey Resources Corporation Part II ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued) Leases 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. The ASU requires leasehold improvements associated with common control leases 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 was applied on a prospective basis. As the Company does not have leases that are impacted by this amendment, there was no impact on the Company’s financial position, results of operations, cash flows and disclosures upon adoption. 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 CODM and included within segment profit and loss, and it enhances interim disclosure requirements to conform with annual requirements. The guidance became effective for the Company on October 1, 2024, for the first annual period and on October 1, 2025, for the interim periods. It was applied retrospectively to all periods presented. As the amendments in this update only impact disclosures, there was no impact on the Company’s financial position, results of operations, and cash flows upon adoption. 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 became effective for the Company for joint ventures formed beginning January 1, 2025, and was applied on a prospective basis. As the Company does not have any applicable transactions, there was no impact to the Company's financial position, results of operations, cash flows and disclosures upon adoption. Other Recent Updates to the Accounting Standards Codification Income Taxes 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 becomes effective for the Company beginning with our annual report for the fiscal year ended September 30, 2026, and can be applied either prospectively or retrospectively. As the amendments in this update only impact disclosures, there are no anticipated impacts on the Company’s financial position, results of operations, and cash flows upon adoption. 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. The guidance 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. Internal-Use Software In September 2025, the FASB issued ASU No. 2025-06 , an amendment to ASC 350, Intangibles—Goodwill and Other , which simplifies the capitalization guidance as it relates to Internal-Use Software by removing all references to project stages and clarifying the threshold to apply to begin capitalizing costs. The guidance becomes effective for the Company on October 1, 2028. The Company can elect to apply it prospectively, retrospectively or through a modified transition approach, with early adoption permitted. The Company is currently evaluating the amendment to understand the impacts on its financial position, results of operations and cash flows upon adoption. Page 80 New Jersey Resources Corporation Part II