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REPORTING SEGMENT AND OTHER OPERATIONS DATA
 9 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
REPORTING SEGMENT AND OTHER OPERATIONS DATA
14. REPORTING SEGMENT AND OTHER OPERATIONS DATA

The Company organizes its businesses based on a combination of factors, including its products and its regulatory environment. As a result, the Company manages its businesses through the following reporting segments and other business operations: NJNG consists of regulated energy and off-system, capacity and storage management operations; CEV consists of capital investments in clean energy projects; ES consists of unregulated wholesale and retail energy operations; S&T consists of the Company’s investments in natural gas transportation and storage facilities; the HSO business operations consist of heating, cooling and water appliance sales, installations and services, other investments and general corporate activities.

Information related to the Company's various reporting segments and other business operations during the three months ended June 30, 2025 and 2024, are as follows:
Segments
(Thousands)NJNGCEVESS&TSubtotalHSOElimsTotal
2025
Operating revenues
External customers$204,790 12,030 38,850 27,129 $282,799 16,147 — $298,946 
Intercompany$238 — — — $238 30 (268)$— 
Depreciation and amortization$35,987 5,772 30 4,809 $46,598 403 (1)$47,000 
Interest income (1)
$687 280 36 2,275 $3,278 324 (1,262)$2,340 
Interest expense, net of capitalized interest$16,184 6,629 2,893 5,741 $31,447 247 — $31,694 
Income tax (benefit) provision$2,489 (2,068)(7,792)1,872 $(5,499)687 (330)$(5,142)
Equity in earnings of affiliates$— — — 908 $908 — 615 $1,523 
Net financial (loss) earnings$10,079 (6,857)(3,734)5,898 $5,386 481 331 $6,198 
Capital expenditures$103,402 49,276 — 4,227 $156,905 25 — $156,930 
2024
Operating revenues
External customers$157,773 14,648 62,441 24,475 $259,337 16,299 — $275,636 
Intercompany$337 — — — $337 57 (394)$— 
Depreciation and amortization$28,491 6,981 45 (2)6,239 $41,756 308 (1,157)$40,907 
Interest income (1)
$571 — 151 2,574 $3,296 386 (1,447)$2,235 
Interest expense, net of capitalized interest$14,239 7,027 3,946 5,773 $30,985 184 — $31,169 
Income tax provision (benefit)$(1,132)(2,008)(1,553)1,345 $(3,348)640 (56)$(2,764)
Equity in earnings of affiliates$— — — 782 $782 — 558 $1,340 
Net financial earnings (loss)$(6,139)(6,714)(2,244)4,140 $(10,957)881 1,177 $(8,899)
Capital expenditures$110,302 37,013 — 10,917 $158,232 252 — $158,484 
(1)Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations.
(2)The amortization of acquired wholesale energy contracts is excluded above and is included in natural gas purchases - nonutility on the Unaudited Condensed Consolidated Statements of Operations.
Information related to the Company's various reporting segments and other business operations during the nine months ended June 30, 2025 and 2024, are as follows:
Segments
(Thousands)NJNGCEVESS&TSubtotalHSOElimsTotal
2025
Operating revenues
External customers$1,156,558 46,403 371,548 79,023 $1,653,532 46,802 — $1,700,334 
Intercompany$881 — — 41 $922 287 (1,209)$— 
Depreciation and amortization$103,784 17,701 139 17,843 $139,467 830 (1)$140,296 
Interest income (1)
$1,934 530 109 6,927 $9,500 898 (3,844)$6,554 
Interest expense, net of capitalized interest$50,897 18,940 10,040 17,527 $97,404 708 — $98,112 
Income tax provision$63,980 10,994 14,088 4,095 $93,157 1,510 (832)$93,835 
Equity in earnings of affiliates$— — — 3,030 $3,030 — 1,345 $4,375 
Net financial earnings (loss)$221,518 37,315 39,400 13,905 $312,138 418 832 $313,388 
Capital expenditures$306,638 117,978 — 18,289 $442,905 598 — $443,503 
2024
Operating revenues
External customers$913,729 59,268 311,846 70,031 $1,354,874 45,885 — $1,400,759 
Intercompany$1,012 — (4,875)1,348 $(2,515)210 2,305 $— 
Depreciation and amortization$82,872 20,834 158 (2)18,619 $122,483 808 (2,022)$121,269 
Interest income (1)
$1,666 — 422 7,462 $9,550 1,074 (4,327)$6,297 
Interest expense, net of capitalized interest$43,840 21,656 10,585 17,574 $93,655 608 — $94,263 
Income tax provision (benefit)$34,000 (471)11,247 2,996 $47,772 1,108 5,239 $54,119 
Equity in earnings of affiliates$— — — 1,860 $1,860 — 1,878 $3,738 
Net financial earnings (loss)$152,400 (1,808)43,231 9,761 $203,584 665 (2,128)$202,121 
Capital expenditures$287,727 74,096 — 32,225 $394,048 1,738 — $395,786 
(1)Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations.
(2)The amortization of acquired wholesale energy contracts is excluded above and is included in natural gas purchases - nonutility on the Unaudited Condensed Consolidated Statements of Operations.

The Company's assets for the various reporting segments and other business operations are detailed below:
SegmentsIntercompany
(Thousands)NJNGCEVESS&TSubtotalHSO
Assets (1)
Total
June 30, 2025$5,039,492 1,199,871 119,101 1,026,379 $7,384,843 127,208 (237,890)$7,274,161 
September 30, 2024$4,789,835 1,157,573 108,710 1,025,457 $7,081,575 159,444 (259,374)$6,981,645 
(1)Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation.
The Chief Executive Officer, who uses NFE as a measure of profit or loss in measuring the results of the Company's reporting segments and other business operations, is the chief operating decision maker of the Company. A reconciliation of consolidated NFE to consolidated net income is as follows:
Three Months EndedNine Months Ended
June 30,June 30,
(Thousands)2025202420252024
Net financial earnings (loss)$6,198 $(8,899)$313,388 $202,121 
Less:
Unrealized loss (gain) on derivative instruments and related transactions10,766 3,803 (10,072)23,860 
Tax effect(2,559)(903)2,394 (5,670)
Effects of economic hedging related to natural gas inventory16,924 (385)747 (19,458)
Tax effect(4,022)91 (178)4,624 
NFE tax adjustment140 69 (58)116 
Net (loss) income$(15,051)$(11,574)$320,555 $198,649 

The Company uses derivative instruments as economic hedges of purchases and sales of physical natural gas inventory. For GAAP purposes, these derivatives are recorded at fair value and related changes in fair value are included in reported earnings. Revenues and cost of natural gas related to physical natural gas flow are recognized when the natural gas is delivered to customers. Consequently, there is a mismatch in the timing of earnings recognition between the economic hedges and physical natural gas flows. Timing differences occur in two ways:

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

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

NFE is a measure of the earnings based on eliminating these timing differences, to effectively match the earnings effects of the economic hedges with the physical sale of natural gas and SRECs. Consequently, to reconcile between net income and NFE, current period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item. Realized derivative gains and losses are also included in current period net income. However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the derivatives with realized margins on physical natural gas flows. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE. The Company also calculates a quarterly tax adjustment based on an estimated annual effective tax rate for NFE purposes.