SUBSEQUENT EVENTS

9 Months Ended

Jun. 30, 2017

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

On July 27, 2017, the Company, through a wholly owned subsidiary, signed an asset purchase agreement with Talen to acquire certain assets related to Talen's retail and wholesale natural gas businesses. The total purchase price associated with the transaction was approximately $54.3 million, of which $44.3 million was paid at closing, with the remaining amount due upon satisfaction of certain conditions as set forth in the asset purchase agreement. The acquisition includes sales agreements with large industrial retail customers, pipeline and storage capacity agreements on various pipelines as well as various wholesale transactions.

In conjunction with the asset purchase agreement, the Company, through a subsidiary designee, entered into an asset management agreement with Talen to assume management of certain Talen firm natural gas transportation and storage agreements until the permanent regulatory release of these agreements is obtained. Upon the satisfaction of certain conditions as set forth in the asset purchase agreement, Talen will also assign its retail natural gas sales agreements to a subsidiary of NJR.

The Company is still evaluating the fair value of assets acquired and liabilities assumed; therefore the final allocation of the purchase price has not been completed. The allocation of the purchase price will be finalized upon the receipt of final valuations for the underlying assets and the necessary management reviews.