QUARTERLY FINANCIAL STATEMENTS
FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2026 AND 2025
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||
June 30, | June 30, | |||||||
(Thousands) | 2026 | 2025 | 2026 | 2025 | ||||
OPERATING REVENUES | $ | 201,107 | $ | 205,029 | $ | 1,252,405 | $ | 1,157,439 |
OPERATING EXPENSES | ||||||||
Natural gas purchases | 65,875 | 74,941 | 513,166 | 480,244 | ||||
Operation and maintenance | 64,682 | 61,849 | 179,385 | 175,200 | ||||
Regulatory rider expenses | 10,434 | 10,979 | 103,038 | 81,956 | ||||
Depreciation and amortization | 40,385 | 35,987 | 114,854 | 103,784 | ||||
Total operating expenses | 181,376 | 183,756 | 910,443 | 841,184 | ||||
OPERATING INCOME | 19,731 | 21,273 | 341,962 | 316,255 | ||||
Other income, net | 7,511 | 7,479 | 21,010 | 20,140 | ||||
Interest expense, net of capitalized interest | 19,029 | 16,184 | 57,508 | 50,897 | ||||
INCOME BEFORE INCOME TAXES | 8,213 | 12,568 | 305,464 | 285,498 | ||||
Income tax provision | 2,126 | 2,489 | 67,035 | 63,980 | ||||
NET INCOME | $ | 6,087 | $ | 10,079 | $ | 238,429 | $ | 221,518 |
See Note to Unaudited Condensed Financial Statements
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended June 30,(Thousands) | 2026 | 2025 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 238,429 | $ 221,518 |
Adjustments to reconcile net income to cash flows from operating activities: | ||
Depreciation and amortization | 114,854 | 103,784 |
Allowance for equity used during construction | (10,688) | (6,668) |
Allowance for doubtful accounts | 6,124 | 8,321 |
Deferred income taxes | (3,236) | 25,345 |
Manufactured gas plant remediation costs | (3,321) | (7,289) |
Cost of removal - asset retirement obligations | (1,533) | (1,295) |
Contributions to postemployment benefit plans | (557) | (402) |
Changes in: | ||
Components of working capital | 63,817 | (32,173) |
Other noncurrent assets and liabilities | 5,454 | (14,174) |
Cash flows from operating activities | 409,343 | 296,967 |
CASH FLOWS USED IN INVESTING ACTIVITIES | ||
Expenditures for: | ||
Utility plant | (315,256) | (274,028) |
Cost of removal | (30,600) | (32,610) |
Cash flows used in investing activities | (345,856) | (306,638) |
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES | ||
Proceeds from long-term debt | 15,000 | - |
Payments of long-term debt | (22,566) | (57,757) |
(Payments of) proceeds from short-term debt, net | (43,000) | 51,600 |
Proceeds from sale-leaseback transactions | 15,016 | 11,714 |
Contribution from Parent | - | 50,000 |
Payment of common stock dividends to Parent | - | (45,135) |
Tax withholding payments related to net settled stock compensation | (904) | (57) |
Cash flows (used in) from financing activities | (36,454) | 10,365 |
Change in cash, cash equivalents and restricted cash | 27,033 | 694 |
Cash, cash equivalents and restricted cash at beginning of period | 1,394 | 1,175 |
Cash, cash equivalents and restricted cash at end of period | $ 28,427 | $ 1,869 |
CHANGES IN COMPONENTS OF WORKING CAPITAL | ||
Receivables | $ (59,185) | $ (82,545) |
Inventories | 62,289 | 43,715 |
Recovery of natural gas costs | 80,190 | 5,589 |
Natural gas purchases payable | 1,697 | 8,324 |
Accounts payable and other | (10,192) | (18,869) |
Prepaid expenses | (5,354) | (2,855) |
Prepaid and accrued taxes | 2,137 | (10,287) |
Restricted broker margin accounts | (7,065) | 16,342 |
Customers' credit balances and deposits | (15,082) | (14,763) |
Other current assets and liabilities | 14,382 | 23,176 |
Total | $ 63,817 | $ (32,173) |
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION | ||
Cash paid for: | ||
Interest (net of amounts capitalized) | $ 56,563 | $ 58,202 |
Income taxes | $ 38,889 | $ 45 |
Accrued capital expenditures | $ 10,066 | $ 7,425 |
See Note to Unaudited Condensed Financial Statements
CONDENSED BALANCE SHEETS | ||
ASSETS | ||
(Unaudited) | ||
(Thousands) | June 30, 2026 | September 30, 2025 |
PROPERTY, PLANT AND EQUIPMENT | ||
Utility plant, at cost | $ 4,766,529 | $ 4,433,720 |
Construction work in progress | 378,763 | 395,943 |
Nonutility plant and equipment, at cost | 500 | 500 |
Total property, plant and equipment | 5,145,792 | 4,830,163 |
Accumulated depreciation and amortization | (919,587) | (850,757) |
Property, plant and equipment, net | 4,226,205 | 3,979,406 |
CURRENT ASSETS | ||
Cash and cash equivalents | 27,269 | 335 |
Customer accounts receivable: | ||
Billed | 136,646 | 75,789 |
Unbilled | 12,211 | 14,817 |
Allowance for doubtful accounts | (15,882) | (10,692) |
Regulatory assets | 31,733 | 48,898 |
Natural gas in storage, at average cost | 118,286 | 184,099 |
Materials and supplies, at average cost | 39,949 | 36,425 |
Prepaid expenses | 8,364 | 3,010 |
Prepaid taxes | 36,660 | 34,347 |
Derivatives, at fair value | 71 | 379 |
Restricted broker margin account | 5,614 | 5,480 |
Other current assets | 43,462 | 57,971 |
Total current assets | 444,383 | 450,858 |
NONCURRENT ASSETS | ||
Regulatory assets | 645,147 | 667,308 |
Derivatives, at fair value | - | 1 |
Postemployment employee benefit assets | 59,618 | 55,881 |
Other noncurrent assets | 86,560 | 73,178 |
Total noncurrent assets | 791,325 | 796,368 |
Total assets | $ 5,461,913 | $ 5,226,632 |
See Note to Unaudited Condensed Financial Statements
CONDENSED BALANCE SHEETS (Continued) | ||
CAPITALIZATION AND LIABILITIES | ||
(Unaudited) | ||
(Thousands) | June 30, 2026 | September 30, 2025 |
CAPITALIZATION | ||
Common stock equity | $ 2,430,072 | $ 2,191,643 |
Long-term debt | 1,818,903 | 1,811,798 |
Total capitalization | 4,248,975 | 4,003,441 |
CURRENT LIABILITIES | ||
Current maturities of long-term debt | 9,038 | 8,228 |
Short-term debt | - | 43,000 |
Natural gas purchases payable | 36,758 | 35,061 |
Natural gas purchases payable to related party | 540 | 540 |
Accounts payable and other | 97,099 | 109,620 |
Accrued taxes | 4,234 | - |
Regulatory liabilities | 68,136 | 10,643 |
New Jersey Clean Energy Program | 14,588 | 17,171 |
Derivatives, at fair value | 43 | 6 |
Customers' credit balances and deposits | 16,175 | 31,257 |
Total current liabilities | 246,611 | 255,526 |
NONCURRENT LIABILITIES | ||
Deferred income taxes | 524,542 | 520,518 |
Deferred investment tax credits | 1,669 | 1,878 |
Manufactured gas plant remediation | 165,170 | 166,990 |
Postemployment employee benefit liability | 35,345 | 36,028 |
Regulatory liabilities | 167,403 | 171,177 |
Asset retirement obligations | 69,591 | 68,413 |
Other noncurrent liabilities | 2,607 | 2,661 |
Total noncurrent liabilities | 966,327 | 967,665 |
Total capitalization and liabilities | $ 5,461,913 | $ 5,226,632 |
See Note to Unaudited Condensed Financial Statements