DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Assets and Liabilities

The following table presents the fair value of the Company’s derivative assets and liabilities recognized on the Consolidated Balance Sheets as of September 30:

		Derivatives at Fair Value
			2023					2022
(Thousands)	Balance Sheet Location		Assets		Liabilities			Assets		Liabilities
Derivatives not designated as hedging instruments:
NJNG:
Physical commodity contracts	Derivatives - current		$	43		$	488	$	252		$	11
Financial commodity contracts	Derivatives - current		6,110			20		85			6,281
ES:
Physical commodity contracts	Derivatives - current		6,209			12,757		9,857			17,051
	Derivatives - noncurrent		802			7,870		376			13,561
Financial commodity contracts	Derivatives - current		18,393			2,880		14,423			26,488
	Derivatives - noncurrent		762			97		6,009			630
Foreign currency contracts	Derivatives - current		—			—		18			17
Total fair value of derivatives			$	32,319		$	24,112	$	31,020		$	64,039

Offsetting Assets

The following table summarizes the reported gross amounts, the amounts that the Company has the right to offset but elects not to, financial collateral and the net amounts the Company could present on the Consolidated Balance Sheets but elects not to.

	Asset Derivatives						Liability Derivatives
(Thousands)	Fair Value (1)		Amounts Offset (2)	Collateral Received/Pledged (3)	Net Value (4)		Fair Value (1)		Amounts Offset (2)	Collateral Received/Pledged (3)	Net Value (4)
As of September 30, 2023
ES Contracts
Physical commodity	$	7,011	(1,236)	—	$	5,775	$	20,627	(1,236)	(9,728)	$	9,663
Financial commodity	19,155		(2,977)	(16,178)	—		2,977		(2,977)	—	—
Total ES	$	26,166	(4,213)	(16,178)	$	5,775	$	23,604	(4,213)	(9,728)	$	9,663
NJNG Contracts
Physical commodity	$	43	(3)	—	$	40	$	488	(3)	—	$	485
Financial commodity	6,110		(20)	—	6,090		20		(20)	—	—
Total NJNG	$	6,153	(23)	—	$	6,130	$	508	(23)	—	$	485
As of September 30, 2022
ES Contracts
Physical commodity	$	10,233	(404)	(200)	$	9,629	$	30,612	(404)	—	$	30,208
Financial commodity	20,432		(12,198)	—	8,234		27,118		(12,198)	—	14,920
Foreign currency	18		(17)	—	1		17		(17)	—	—
Total ES	$	30,683	(12,619)	(200)	$	17,864	$	57,747	(12,619)	—	$	45,128
NJNG Contracts
Physical commodity	$	252	—	—	$	252	$	11	—	—	$	11
Financial commodity	85		(85)	—	—		6,281		(85)	—	6,196
Total NJNG	$	337	(85)	—	$	252	$	6,292	(85)	—	$	6,207

(1)Derivative assets and liabilities are presented on a gross basis on the Consolidated Balance Sheets, as the Company does not elect balance sheet offsetting under ASC 210-20.

(2)Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting.

(3)Financial collateral includes cash balances at FCMs, as well as cash received from or pledged to other counterparties.

(4)Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.

Offsetting Liabilities

The following table summarizes the reported gross amounts, the amounts that the Company has the right to offset but elects not to, financial collateral and the net amounts the Company could present on the Consolidated Balance Sheets but elects not to.

	Asset Derivatives						Liability Derivatives
(Thousands)	Fair Value (1)		Amounts Offset (2)	Collateral Received/Pledged (3)	Net Value (4)		Fair Value (1)		Amounts Offset (2)	Collateral Received/Pledged (3)	Net Value (4)
As of September 30, 2023
ES Contracts
Physical commodity	$	7,011	(1,236)	—	$	5,775	$	20,627	(1,236)	(9,728)	$	9,663
Financial commodity	19,155		(2,977)	(16,178)	—		2,977		(2,977)	—	—
Total ES	$	26,166	(4,213)	(16,178)	$	5,775	$	23,604	(4,213)	(9,728)	$	9,663
NJNG Contracts
Physical commodity	$	43	(3)	—	$	40	$	488	(3)	—	$	485
Financial commodity	6,110		(20)	—	6,090		20		(20)	—	—
Total NJNG	$	6,153	(23)	—	$	6,130	$	508	(23)	—	$	485
As of September 30, 2022
ES Contracts
Physical commodity	$	10,233	(404)	(200)	$	9,629	$	30,612	(404)	—	$	30,208
Financial commodity	20,432		(12,198)	—	8,234		27,118		(12,198)	—	14,920
Foreign currency	18		(17)	—	1		17		(17)	—	—
Total ES	$	30,683	(12,619)	(200)	$	17,864	$	57,747	(12,619)	—	$	45,128
NJNG Contracts
Physical commodity	$	252	—	—	$	252	$	11	—	—	$	11
Financial commodity	85		(85)	—	—		6,281		(85)	—	6,196
Total NJNG	$	337	(85)	—	$	252	$	6,292	(85)	—	$	6,207

(1)Derivative assets and liabilities are presented on a gross basis on the Consolidated Balance Sheets, as the Company does not elect balance sheet offsetting under ASC 210-20.

(2)Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting.

(3)Financial collateral includes cash balances at FCMs, as well as cash received from or pledged to other counterparties.

(4)Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.

Effect of Derivative Instruments on Consolidated Statements of Operations

The following table presents the effect of derivative instruments recognized on the Consolidated Statements of Operations as of September 30:

(Thousands)	Location of gain (loss) recognized in income on derivatives	Amount of gain (loss) recognized in income on derivatives
Derivatives not designated as hedging instruments:		2023		2022		2021
ES:
Physical commodity contracts	Operating revenues	$	33,610	$	(8,569)	$	30,011
Physical commodity contracts	Natural gas purchases	(6,846)		3,580		1,052
Financial commodity contracts	Natural gas purchases	80,406		14,403		(43,997)
Foreign currency contracts	Natural gas purchases	—		(14)		238
Total unrealized and realized gain (loss)		$	107,170	$	9,400	$	(12,696)

Effect of Derivative Instruments Designated as Cash Flow Hedges on OCI

The following table reflects the gains and/or (losses) associated with NJNG’s derivative instruments as of September 30:

(Thousands)	2023		2022		2021
NJNG:
Physical commodity contracts	$	(34,241)	$	7,116	$	2,174
Financial commodity contracts	(50,130)		32,868		32,725
Total unrealized and realized (loss) gain	$	(84,371)	$	39,984	$	34,899

Schedule of Outstanding Long (Short) Derivatives

NJNG and ES had the following outstanding long (short) derivatives as of September 30:

	Natural Gas Distribution		Energy Services
Volumes (Bcf)	Futures	Physical Commodity	Futures	Physical Commodity
2023	32.1	12.1	(6.9)	0.2
2022	30.5	6.8	(0.7)	2.7

Schedule of Broker Margin Accounts by Company

The balances as of September 30, by reporting segment, are as follows:

(Thousands)	Balance Sheet Location	2023		2022
NJNG	Restricted broker margin accounts - current assets	$	5,915	$	26,138
ES	Restricted broker margin accounts - current assets	$	14,881	$	68,123
	Restricted broker margin accounts - current liabilities	$	8,029	$	—

Summary of Gross Credit Exposures

The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of September 30, 2023. The amounts presented below have not been reduced by any collateral received or netting and exclude accounts receivable for NJNG retail natural gas sales and services and CEV residential solar installations.

(Thousands)	Gross Credit Exposure
Investment grade		$	119,229
Noninvestment grade		4,775
Internally-rated investment grade		20,343
Internally-rated noninvestment grade		20,153
Total		$	164,500