FAIR VALUE (Tables)

6 Months Ended

Mar. 31, 2023

The estimated fair value of long-term debt, including current maturities, excluding natural gas meter finance arrangements, debt issuance costs and solar asset financing obligations, is as follows:


(Thousands)	March 31, 2023		September 30, 2022
Carrying value (1) (2) (3)	$	2,537,845	$	2,362,845
Fair market value	$	2,227,816	$	1,946,356

(1)Excludes the sale leasebacks of natural gas meters of $35.2 million and $30.3 million as of March 31, 2023 and September 30, 2022, respectively. The fair value of certain sale leasebacks of natural gas meters amounted to $23.4 million and $15.7 million as of March 31, 2023 and September 30, 2022, respectively.

(2)Excludes NJNG's debt issuance costs of $9.8 million and $9.5 million as of March 31, 2023 and September 30, 2022, respectively.

(3)Excludes NJR's debt issuance costs of $4.0 million and $3.8 million as of March 31, 2023 and September 30, 2022, respectively.

Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized as follows:


	Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
(Thousands)	(Level 1)			(Level 2)			(Level 3)			Total
As of March 31, 2023:
Assets:
Physical commodity contracts		$	—		$	4,366		$	—	$	4,366
Financial commodity contracts		22,932			—			—		22,932


Money market funds		25,099			—			—		25,099
Other		2,677			—			—		2,677
Total assets at fair value		$	50,708		$	4,366		$	—	$	55,074
Liabilities:
Physical commodity contracts		$	—		$	27,532		$	—	$	27,532
Financial commodity contracts		14,019			—			—		14,019


Total liabilities at fair value		$	14,019		$	27,532		$	—	$	41,551




As of September 30, 2022:
Assets:
Physical commodity contracts	$	—	$	10,485	$	—	$	10,485
Financial commodity contracts	20,517		—		—		20,517
Financial commodity contracts - foreign exchange	—		18		—		18

Money market funds	59		—		—		59
Other	1,884		—		—		1,884
Total assets at fair value	$	22,460	$	10,503	$	—	$	32,963
Liabilities:
Physical commodity contracts	$	—	$	30,623	$	—	$	30,623
Financial commodity contracts	33,231		168		—		33,399
Financial commodity contracts - foreign exchange	—		17		—		17
Total liabilities at fair value	$	33,231	$	30,808	$	—	$	64,039