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INVESTMENTS IN EQUITY INVESTEES
 12 Months Ended
Sep. 30, 2022
Investments, All Other Investments [Abstract]  
INVESTMENTS IN EQUITY INVESTEES
7. INVESTMENTS IN EQUITY INVESTEES

As of September 30, the Company’s investments in equity method investees includes the following:
(Thousands)20222021
Steckman Ridge (1)
$106,571 $109,050 
PennEast— 5,479 
Total$106,571 $114,529 
(1)Includes loans with a total outstanding principal balance of $70.4 million for both fiscal 2022 and 2021, which accrue interest at a variable rate that resets quarterly and are due October 1, 2023.
Steckman Ridge

The Company holds a 50 percent equity method investment in Steckman Ridge, a jointly owned and controlled natural gas storage facility located in Bedford County, Pennsylvania. NJNG and Energy Services have entered into storage and park and loan agreements with Steckman Ridge. See Note 18. Related Party Transactions for more information on these intercompany transactions.

PennEast

The Company, through its subsidiary NJR Midstream Company, is a 20 percent investor in PennEast, a partnership whose purpose was to construct and operate a 120-mile natural gas pipeline that would have extended from northeast Pennsylvania to western New Jersey.

During the third quarter of fiscal 2021, the Company recognized an other-than-temporary impairment charge of $92.0 million, or approximately $74.5 million, net of income taxes, which represents the best estimate of the salvage value of the remaining assets of the project. Other-than-temporary impairments are recorded in equity in earnings (losses) of affiliates in the Consolidated Statements of Operations.

In September 2021, the PennEast partnership determined that this project is no longer supported, and all further development has ceased. On December 16, 2021, the FERC dismissed PennEast’s pending applications. The order vacates the certificate authorization for the PennEast pipeline project in light of PennEast’s response to FERC staff’s November 23, 2021 request for a status update, in which PennEast informed the FERC it is no longer developing the project.

During fiscal 2022, the PennEast board of managers approved cash distributions to members of the partnership following the sale of certain project-related assets and refunds of interconnection fees received from interstate pipelines. The return of capital received by the Company, which totaled $11.0 million, reduced the remaining carrying value of its equity method investment in PennEast to zero in the Consolidated Balance Sheet, with the excess recorded in equity in earnings (loss) of affiliates in the Consolidated Statements of Operations.

The following is the summarized financial information for Steckman Ridge and PennEast for fiscal years ended September 30:

(Thousands)202220212020
Steckman Ridge
Operating revenues$19,812 $21,847 $28,814 
Gross profit$11,349 $13,350 $20,537 
Income from continuing operations$8,686 $11,483 $16,926 
Net income $8,686 $11,483 $16,926 
Net income attributable to NJR$4,343 $5,741 $8,463 
Current assets$28,609 $14,786 
Noncurrent assets$198,052 $202,670 
Current liabilities$23,618 $9,738 
Noncurrent liabilities$140,810 $140,810 
PennEast
Operating revenues$— $— $— 
Gross profit$— $— $— 
Income from continuing operations$(3,778)$(406,305)$34,376 
Net (loss) income$(3,778)$(406,305)$34,376 
Net (loss) income attributable to NJR$(756)$(81,261)$6,875 
Current assets$1,801 $822 
Noncurrent assets$— $44,998 
Current liabilities$82 $248 
Noncurrent liabilities$500 $500