XML 42 R29.htm IDEA: XBRL DOCUMENT
v3.22.0.1

DERIVATIVE INSTRUMENTS (Tables) | 3 Months Ended
--- | ---
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Fair Value of Derivative Assets and Liabilities | The following table presents the fair value of the Company's derivative assets and liabilities recognized on the Unaudited Condensed Consolidated Balance Sheets as of:
|  |  | Derivatives at Fair Value
|  | December 31, 2021 |  | September 30, 2021
(Thousands) | Balance Sheet Location | Assets | Liabilities | Assets | Liabilities
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
Natural Gas Distribution: |  |  |  |  |  |  |  |  |
Physical commodity contracts | Derivatives - current |  | $ | 234 |  |  | $ | 4 |  |  | $ | 36 |  |  | $ | 16 |
Financial commodity contracts | Derivatives - current |  | 5,032 |  |  | 240 |  |  | 2,046 |  |  | 13 |
Energy Services: |  |  |  |  |  |  |  |  |
Physical commodity contracts | Derivatives - current |  | 2,285 |  |  | 18,592 |  |  | 2,818 |  |  | 24,592 |
| Derivatives - noncurrent |  | 135 |  |  | 15,261 |  |  | 333 |  |  | 13,237 |
Financial commodity contracts | Derivatives - current |  | 32,164 |  |  | 11,209 |  |  | 30,226 |  |  | 62,521 |
| Derivatives - noncurrent |  | 1,843 |  |  | — |  |  | 3,068 |  |  | 260 |
Foreign currency contracts | Derivatives - current |  | 68 |  |  | 4 |  |  | 125 |  |  | 3 |
| Derivatives - noncurrent |  | — |  |  | — |  |  | 2 |  |  | — |
Total fair value of derivatives |  |  | $ | 41,761 |  |  | $ | 45,310 |  |  | $ | 38,654 |  |  | $ | 100,642 |
Offsetting Assets | The following table summarizes the reported gross amounts, the amounts that the Company has the right to offset but elects not to, financial collateral, as well as the net amounts the Company could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to.
(Thousands) | Amounts Presented on Balance Sheets (1) | Offsetting Derivative Instruments (2) | Financial Collateral Received/Pledged (3) | Net Amounts (4)
As of December 31, 2021: |  |  |  |  |  |  |  |
Derivative assets: |  |  |  |  |  |  |  |
Energy Services |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 2,420 |  |  | $ | (908) |  |  | $ | (200) |  |  | $ | 1,312 |
Financial commodity contracts |  | 34,007 |  |  | (9,247) |  |  | — |  |  | 24,760 |
Foreign currency contracts |  | 68 |  |  | (4) |  |  | — |  |  | 64 |
Total Energy Services |  | $ | 36,495 |  |  | $ | (10,159) |  |  | $ | (200) |  |  | $ | 26,136 |
Natural Gas Distribution |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 234 |  |  | $ | — |  |  | $ | — |  |  | $ | 234 |
Financial commodity contracts |  | 5,032 |  |  | (240) |  |  | — |  |  | 4,792 |
Total Natural Gas Distribution |  | $ | 5,266 |  |  | $ | (240) |  |  | $ | — |  |  | $ | 5,026 |
Derivative liabilities: |  |  |  |  |  |  |  |
Energy Services |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 33,853 |  |  | $ | (908) |  |  | $ | — |  |  | $ | 32,945 |
Financial commodity contracts |  | 11,209 |  |  | (9,247) |  |  | — |  |  | 1,962 |
Foreign currency contracts |  | 4 |  |  | (4) |  |  | — |  |  | — |
Total Energy Services |  | $ | 45,066 |  |  | $ | (10,159) |  |  | $ | — |  |  | $ | 34,907 |
Natural Gas Distribution |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 4 |  |  | $ | — |  |  | $ | — |  |  | $ | 4 |
Financial commodity contracts |  | 240 |  |  | (240) |  |  | — |  |  | — |
Total Natural Gas Distribution |  | $ | 244 |  |  | $ | (240) |  |  | $ | — |  |  | $ | 4 |
As of September 30, 2021: |  |  |  |  |  |  |  |
Derivative assets: |  |  |  |  |  |  |  |
Energy Services |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 3,151 |  |  | $ | (894) |  |  | $ | (700) |  |  | $ | 1,557 |
Financial commodity contracts |  | 33,294 |  |  | (33,294) |  |  | 20,532 |  |  | 20,532 |
Foreign currency contracts |  | 127 |  |  | (3) |  |  |  |  | 124 |
Total Energy Services |  | $ | 36,572 |  |  | $ | (34,191) |  |  | $ | 19,832 |  |  | $ | 22,213 |
Natural Gas Distribution |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 36 |  |  | $ | (8) |  |  | $ | — |  |  | $ | 28 |
Financial commodity contracts |  | 2,046 |  |  | (13) |  |  | — |  |  | 2,033 |
Total Natural Gas Distribution |  | $ | 2,082 |  |  | $ | (21) |  |  | $ | — |  |  | $ | 2,061 |
Derivative liabilities: |  |  |  |  |  |  |  |
Energy Services |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 37,829 |  |  | $ | (894) |  |  | $ | — |  |  | $ | 36,935 |
Financial commodity contracts |  | 62,781 |  |  | (33,294) |  |  | — |  |  | 29,487 |
Foreign currency contracts |  | 3 |  |  | (3) |  |  | — |  |  | — |
Total Energy Services |  | $ | 100,613 |  |  | $ | (34,191) |  |  | $ | — |  |  | $ | 66,422 |
Natural Gas Distribution |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 16 |  |  | $ | (8) |  |  | $ | — |  |  | $ | 8 |
Financial commodity contracts |  | 13 |  |  | (13) |  |  | — |  |  | — |
Total Natural Gas Distribution |  | $ | 29 |  |  | $ | (21) |  |  | $ | — |  |  | $ | 8 |
(1)Derivative assets and liabilities are presented on a gross basis on the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20. (2)Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting. (3)Financial collateral includes cash balances at FCMs as well as cash received from or pledged to other counterparties. (4)Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.
Offsetting Liabilities | The following table summarizes the reported gross amounts, the amounts that the Company has the right to offset but elects not to, financial collateral, as well as the net amounts the Company could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to.
(Thousands) | Amounts Presented on Balance Sheets (1) | Offsetting Derivative Instruments (2) | Financial Collateral Received/Pledged (3) | Net Amounts (4)
As of December 31, 2021: |  |  |  |  |  |  |  |
Derivative assets: |  |  |  |  |  |  |  |
Energy Services |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 2,420 |  |  | $ | (908) |  |  | $ | (200) |  |  | $ | 1,312 |
Financial commodity contracts |  | 34,007 |  |  | (9,247) |  |  | — |  |  | 24,760 |
Foreign currency contracts |  | 68 |  |  | (4) |  |  | — |  |  | 64 |
Total Energy Services |  | $ | 36,495 |  |  | $ | (10,159) |  |  | $ | (200) |  |  | $ | 26,136 |
Natural Gas Distribution |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 234 |  |  | $ | — |  |  | $ | — |  |  | $ | 234 |
Financial commodity contracts |  | 5,032 |  |  | (240) |  |  | — |  |  | 4,792 |
Total Natural Gas Distribution |  | $ | 5,266 |  |  | $ | (240) |  |  | $ | — |  |  | $ | 5,026 |
Derivative liabilities: |  |  |  |  |  |  |  |
Energy Services |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 33,853 |  |  | $ | (908) |  |  | $ | — |  |  | $ | 32,945 |
Financial commodity contracts |  | 11,209 |  |  | (9,247) |  |  | — |  |  | 1,962 |
Foreign currency contracts |  | 4 |  |  | (4) |  |  | — |  |  | — |
Total Energy Services |  | $ | 45,066 |  |  | $ | (10,159) |  |  | $ | — |  |  | $ | 34,907 |
Natural Gas Distribution |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 4 |  |  | $ | — |  |  | $ | — |  |  | $ | 4 |
Financial commodity contracts |  | 240 |  |  | (240) |  |  | — |  |  | — |
Total Natural Gas Distribution |  | $ | 244 |  |  | $ | (240) |  |  | $ | — |  |  | $ | 4 |
As of September 30, 2021: |  |  |  |  |  |  |  |
Derivative assets: |  |  |  |  |  |  |  |
Energy Services |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 3,151 |  |  | $ | (894) |  |  | $ | (700) |  |  | $ | 1,557 |
Financial commodity contracts |  | 33,294 |  |  | (33,294) |  |  | 20,532 |  |  | 20,532 |
Foreign currency contracts |  | 127 |  |  | (3) |  |  |  |  | 124 |
Total Energy Services |  | $ | 36,572 |  |  | $ | (34,191) |  |  | $ | 19,832 |  |  | $ | 22,213 |
Natural Gas Distribution |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 36 |  |  | $ | (8) |  |  | $ | — |  |  | $ | 28 |
Financial commodity contracts |  | 2,046 |  |  | (13) |  |  | — |  |  | 2,033 |
Total Natural Gas Distribution |  | $ | 2,082 |  |  | $ | (21) |  |  | $ | — |  |  | $ | 2,061 |
Derivative liabilities: |  |  |  |  |  |  |  |
Energy Services |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 37,829 |  |  | $ | (894) |  |  | $ | — |  |  | $ | 36,935 |
Financial commodity contracts |  | 62,781 |  |  | (33,294) |  |  | — |  |  | 29,487 |
Foreign currency contracts |  | 3 |  |  | (3) |  |  | — |  |  | — |
Total Energy Services |  | $ | 100,613 |  |  | $ | (34,191) |  |  | $ | — |  |  | $ | 66,422 |
Natural Gas Distribution |  |  |  |  |  |  |  |
Physical commodity contracts |  | $ | 16 |  |  | $ | (8) |  |  | $ | — |  |  | $ | 8 |
Financial commodity contracts |  | 13 |  |  | (13) |  |  | — |  |  | — |
Total Natural Gas Distribution |  | $ | 29 |  |  | $ | (21) |  |  | $ | — |  |  | $ | 8 |
(1)Derivative assets and liabilities are presented on a gross basis on the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20. (2)Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting. (3)Financial collateral includes cash balances at FCMs as well as cash received from or pledged to other counterparties. (4)Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.
Effect of Derivative Instruments on Consolidated Statements of Operations | The following table presents the effect of derivative instruments recognized on the Unaudited Condensed Consolidated Statements of Operations for the periods set forth below:
(Thousands) | Location of gain (loss) recognized in income on derivatives |  |  |  | Amount of gain (loss) recognized in income on derivatives
|  |  | Three Months Ended
|  |  | December 31,
Derivatives not designated as hedging instruments: |  |  |  | 2021 |  | 2020
Energy Services: |  |  |  |  |  |  |
Physical commodity contracts | Operating revenues |  |  |  | $ | 150 |  |  | $ | 5,252 |
Physical commodity contracts | Natural gas purchases |  |  |  | 1,505 |  |  | (5,054) |
Financial commodity contracts | Natural gas purchases |  |  |  | 61,189 |  |  | 47,755 |
Foreign currency contracts | Natural gas purchases |  |  |  | — |  |  | 200 |
Total unrealized and realized loss |  |  |  | $ | 62,844 |  |  | $ | 48,153 |
Effect of Derivative Instruments Designated as Cash Flow Hedges on OCI | The following table reflects the gains (losses) associated with NJNG's derivative instruments for the periods set forth below:
|  | Three Months Ended
|  | December 31,
(Thousands) |  |  |  | 2021 |  | 2020
Natural Gas Distribution: |  |  |  |  |  |
Physical commodity contracts |  |  |  | $ | 1,696 |  |  | $ | 342 |
Financial commodity contracts |  |  |  | (14,647) |  |  | (4,272) |
Total unrealized and realized (loss) |  |  |  | $ | (12,951) |  |  | $ | (3,930) |
Schedule of Outstanding Long (Short) Derivatives | NJNG and Energy Services had the following outstanding long (short) derivatives as of:
|  |  |  |  | Volume (Bcf)
|  | Transaction Type |  |  | December 31, 2021 |  | September 30, 2021
Natural Gas Distribution |  | Futures |  |  | 24.0 |  |  | 22.2 |
|  | Physical Commodity |  |  | 1.5 |  |  | 7.6 |
Energy Services |  | Futures |  |  | (22.0) |  |  | (13.4) |
|  | Swaps |  |  | (0.2) |  |  | (0.3) |
|  | Physical Commodity |  |  | (4.9) |  |  | 0.6 |
Schedule of Broker Margin Accounts by Company | The balances are as follows:
(Thousands) | Balance Sheet Location | December 31, 2021 | September 30, 2021
Natural Gas Distribution | Restricted broker margin accounts-current assets | $ | 5,358 |  | $ | 2,790 |
Energy Services | Restricted broker margin accounts-current assets | $ | 37,358 |  | $ | 70,050 |
| Restricted broker margin accounts-current liabilities | $ | (15,475) |  | $ | — |
Summary of Gross Credit Exposures | The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of December 31, 2021. 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 Clean Energy Ventures residential solar installations.
(Thousands) | Gross Credit Exposure
Investment grade |  | $ | 185,828 |  |
Noninvestment grade |  | 11,016 |  |
Internally rated investment grade |  | 23,742 |  |
Internally rated noninvestment grade |  | 30,016 |  |
Total |  | $ | 250,602 |  |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial assets that are subject to offsetting, including master netting arrangements. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 + Details
Name: | us-gaap_OffsettingAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial liabilities that are subject to offsetting, including master netting arrangements. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 + Details
Name: | us-gaap_OffsettingLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624181-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5618551-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of amounts receivable from and payable to broker-dealers and clearing organizations, including securities failed to receive, deposits received for securities loaned, amounts payable to clearing organizations related to open transactions, floor brokerage payables and payables for commodities futures accounts liquidating to an equity balance on a broker-dealer's records. + References No definition available. + Details
Name: | us-gaap_ScheduleOfDueToFromBrokerDealersAndClearingOrganizationsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the notional amounts of outstanding derivative positions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5579245-113959 + Details
Name: | us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative instrument not designated or qualifying as hedging instrument. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4CC -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL109998890-113959 + Details
Name: | us-gaap_ScheduleOfOtherDerivativesNotDesignatedAsHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the nature of a concentration, a benchmark to which it is compared, and the percentage that the risk is to the benchmark. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=123594938&loc=d3e13537-108611 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 20 -URI http://asc.fasb.org/extlink&oid=123594938&loc=d3e13531-108611 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 20 -URI http://asc.fasb.org/extlink&oid=99393423&loc=d3e6404-108592 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=99393423&loc=d3e6327-108592 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 18 -URI http://asc.fasb.org/extlink&oid=99393423&loc=d3e6351-108592 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=99393423&loc=d3e6442-108592 + Details
Name: | us-gaap_SchedulesOfConcentrationOfRiskByRiskFactorTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration