NEW JERSEY RESOURCES CORPNJR
NEW JERSEY RESOURCES CORP Revenue Disclosure
3. REVENUE
Revenue is recognized when a performance obligation is satisfied by transferring control of a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer using the output method of progress. The Company elected to apply the invoice practical expedient for recognizing revenue, whereby the amounts invoiced to customers represent the value to the customer and the Company’s performance completion as of the invoice date. Therefore the Company does not disclose related unsatisfied performance obligations. The Company also elected the practical expedient to exclude from the transaction price all sales taxes that are assessed by a governmental authority and therefore presents sales tax net in operating revenues on the Consolidated Statements of Operations. Below is a listing of performance obligations that arise from contracts with customers, along with details on the satisfaction of each performance obligation, the significant payment terms and the nature of the goods and services being transferred, by reportable segment and other business operations:
| Revenue Recognized Over Time: | ||||||||
| Segment/ Operations | Performance Obligation | Description | ||||||
| NJNG | Natural gas utility sales | NJNG’s performance obligation is to provide natural gas to residential, commercial and industrial customers as demanded, based on regulated tariff rates, which are established by the BPU. Revenues from the sale of natural gas are recognized in the period that natural gas is delivered and consumed by customers, including an estimate for quantities consumed but not billed during the period. Payment is due each month for the previous month's deliveries. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the billing period. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects and the most current tariff rates. NJNG is entitled to be compensated for performance completed until service is terminated. Customers may elect to purchase the natural gas commodity from NJNG or may contract separately to purchase natural gas directly from third-party suppliers. As NJNG is acting as an agent on behalf of the third-party supplier, revenue is recorded for the delivery of natural gas to the customer. | ||||||
| CEV | Commercial solar electricity | CEV operates wholly-owned solar projects that recognize revenue as electricity is generated and transferred to the customer. The performance obligation is to provide electricity to the customer in accordance with contract terms or the interconnection agreement and is satisfied upon transfer of electricity generated. Revenue is recognized as invoiced and the payment is due each month for the previous month’s services. | ||||||
| CEV | Residential solar electricity | CEV provided access to residential rooftop and ground-mount solar equipment to customers who then paid the Company a monthly fee. The performance obligation was to provide electricity to the customer based on generation from the underlying residential solar asset and was satisfied upon transfer of electricity generated. Revenue was derived from the contract terms and was recognized as invoiced, with the payment due each month for the previous month’s services. In November 2024, CEV’s residential solar portfolio was sold to a third party. | ||||||
| CEV | Renewable energy certificates | Certain CEV projects generate TRECs and SREC IIs under the established ADI & CSI programs. A TREC or SREC II is created for every MWh of electricity produced by a solar generator. The performance obligation of CEV is to generate electricity. TRECs and SREC IIs under the ADI & CSI programs are purchased monthly by a REC Administrator. Revenue is recognized upon generation. | ||||||
| ES | Natural gas services | The performance obligation of ES is to provide the customer transportation, storage and asset management services on an as-needed basis. ES generates revenue through management fees, demand charges, reservation fees and transportation charges centered around the buying and selling of the natural gas commodity, representing one series of distinct performance obligations. Revenue is recognized based upon the underlying natural gas quantities physically delivered and the customer obtaining control. ES invoices customers in line with the terms of the contract and based on the services provided. Payment is due upon receipt of the invoice. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed upon term. | ||||||
S&T | Natural gas services | The performance obligation of S&T is to provide the customer with storage and transportation services. S&T generates revenues from firm storage contracts and transportation contracts, injection and withdrawal at the storage facility and the delivery of natural gas to customers. Revenue is recognized over time as customers receive the benefits of its service as it is performed on their behalf using an output method based on actual deliveries. Demand fees are recognized as revenue over the term of the related agreement. | ||||||
| HSO | Service contracts | Home Services enters into service contracts with homeowners to provide maintenance and replacement of applicable heating, cooling or ventilation equipment. All services provided relate to a distinct performance obligation which is to provide services for the specific equipment over the term of the contract. Revenue is recognized on a straight-line basis over the term of the contract and payment is due upon receipt of the invoice. | ||||||
| Revenue Recognized at a Point in Time: | ||||||||
| Segment/ Operations | Performance Obligation | Description | ||||||
| ES | Natural gas services | For a permanent release of pipeline capacity, the performance obligation of ES is the release of the pipeline capacity associated with certain natural gas transportation contracts and the transfer of the underlying contractual rights to the counterparty. Revenue is recognized upon the transfer of the underlying contractual rights. | ||||||
S&T | Natural gas services | The performance obligation of S&T is to provide the customer with storage and transportation services. S&T generates revenues from usage fees and hub services for the use of storage space, injection and withdrawal from the storage facility. Hub services include park and loan transactions and wheeling. Usage fees and hub services revenues are recognized as services are performed. | ||||||
| HSO | Installations | Home Services installs appliances, including, but not limited to, furnaces, air conditioning units, boilers and generators, for customers. The distinct performance obligation is the installation of the contracted appliance, which is satisfied at the point in time the item is installed. The transaction price for each installation differs accordingly. Revenue is recognized at a point in time upon completion of the installation, which is when the customer is billed. | ||||||
Disaggregated revenues from contracts with customers by product line and by reportable segment and other business operations during fiscal 2025, 2024 and 2023 are as follows:
| (Thousands) | NJNG | CEV | ES | S&T | HSO | Total | |||||||||||||||||
| 2025 | |||||||||||||||||||||||
Natural gas utility sales (1) | $ | 1,091,000 | — | — | — | — | $ | 1,091,000 | |||||||||||||||
| Natural gas services | — | — | 47,653 | 106,413 | — | 154,066 | |||||||||||||||||
| Service contracts | — | — | — | — | 37,327 | 37,327 | |||||||||||||||||
| Installations and maintenance | — | — | — | — | 25,561 | 25,561 | |||||||||||||||||
| Renewable energy certificates | — | 17,575 | — | — | — | 17,575 | |||||||||||||||||
| Electricity sales | — | 27,240 | — | — | — | 27,240 | |||||||||||||||||
Eliminations (2) | (1,121) | — | — | (41) | (302) | (1,464) | |||||||||||||||||
| Revenues from contracts with customers | 1,089,879 | 44,815 | 47,653 | 106,372 | 62,586 | 1,351,305 | |||||||||||||||||
Alternative revenue programs (3) | (28,747) | — | — | — | — | (28,747) | |||||||||||||||||
| Derivative instruments | 240,364 | 67,686 | (4) | 405,804 | — | — | 713,854 | ||||||||||||||||
| Revenues out of scope | 211,617 | 67,686 | 405,804 | — | — | 685,107 | |||||||||||||||||
| Total operating revenues | $ | 1,301,496 | 112,501 | 453,457 | 106,372 | 62,586 | $ | 2,036,412 | |||||||||||||||
| 2024 | |||||||||||||||||||||||
Natural gas utility sales (1) | $ | 861,882 | — | — | — | — | $ | 861,882 | |||||||||||||||
| Natural gas services | — | — | 164,165 | 96,209 | — | 260,374 | |||||||||||||||||
| Service contracts | — | — | — | — | 36,231 | 36,231 | |||||||||||||||||
| Installations and maintenance | — | — | — | — | 26,404 | 26,404 | |||||||||||||||||
| Renewable energy certificates | — | 15,111 | — | — | — | 15,111 | |||||||||||||||||
| Electricity sales | — | 32,913 | — | — | — | 32,913 | |||||||||||||||||
Eliminations (2) | (1,350) | — | — | (1,358) | (258) | (2,966) | |||||||||||||||||
| Revenues from contracts with customers | 860,532 | 48,024 | 164,165 | 94,851 | 62,377 | 1,229,949 | |||||||||||||||||
Alternative revenue programs (3) | 1,087 | — | — | — | — | 1,087 | |||||||||||||||||
| Derivative instruments | 156,863 | 82,539 | (4) | 321,226 | — | — | 560,628 | ||||||||||||||||
Eliminations (2) | — | — | 4,875 | — | — | 4,875 | |||||||||||||||||
| Revenues out of scope | 157,950 | 82,539 | 326,101 | — | — | 566,590 | |||||||||||||||||
| Total operating revenues | $ | 1,018,482 | 130,563 | 490,266 | 94,851 | 62,377 | $ | 1,796,539 | |||||||||||||||
| (Thousands) | NJNG | CEV | ES | S&T | HSO | Total | |||||||||||||||||
| 2023 | |||||||||||||||||||||||
Natural gas utility sales (1) | $ | 845,392 | — | — | — | — | 845,392 | ||||||||||||||||
| Natural gas services | — | — | 76,975 | 92,859 | — | 169,834 | |||||||||||||||||
| Service contracts | — | — | — | — | 35,210 | 35,210 | |||||||||||||||||
| Installations and maintenance | — | — | — | — | 22,428 | 22,428 | |||||||||||||||||
| Renewable energy certificates | — | 12,636 | — | — | — | 12,636 | |||||||||||||||||
| Electricity sales | — | 31,733 | — | — | — | 31,733 | |||||||||||||||||
Eliminations (2) | (1,349) | — | — | (4,159) | (205) | (5,713) | |||||||||||||||||
| Revenues from contracts with customers | 844,043 | 44,369 | 76,975 | 88,700 | 57,433 | 1,111,520 | |||||||||||||||||
Alternative revenue programs (3) | 27,257 | — | — | — | — | 27,257 | |||||||||||||||||
| Derivative instruments | 139,984 | 79,762 | (4) | 614,641 | — | — | 834,387 | ||||||||||||||||
Eliminations (2) | — | — | (10,170) | — | — | (10,170) | |||||||||||||||||
| Revenues out of scope | 167,241 | 79,762 | 604,471 | — | — | 851,474 | |||||||||||||||||
| Total operating revenues | $ | 1,011,284 | 124,131 | 681,446 | 88,700 | 57,433 | $ | 1,962,994 | |||||||||||||||
(1)Includes building rent related to the Wall headquarters, which is eliminated in consolidation.
(2)Consists of transactions between subsidiaries that are eliminated in consolidation.
(3)Includes CIP revenue.
(4)Includes SREC revenue.
Disaggregated revenues from contracts with customers by customer type and by reportable segment and other business operations during the fiscal years ended September 30, are as follows:
| (Thousands) | NJNG | CEV | ES | S&T | HSO | Total | ||||||||||||||
| 2025 | ||||||||||||||||||||
| Residential | $ | 805,351 | 2,110 | — | — | 62,396 | $ | 869,857 | ||||||||||||
| Commercial and industrial | 164,796 | 42,705 | 47,653 | 106,372 | 190 | 361,716 | ||||||||||||||
| Firm transportation | 110,042 | — | — | — | — | 110,042 | ||||||||||||||
| Interruptible, off-tariff and other | 9,690 | — | — | — | — | 9,690 | ||||||||||||||
| Revenues out of scope | 211,617 | 67,686 | 405,804 | — | — | 685,107 | ||||||||||||||
| Total operating revenues | $ | 1,301,496 | 112,501 | 453,457 | 106,372 | 62,586 | $ | 2,036,412 | ||||||||||||
| 2024 | ||||||||||||||||||||
| Residential | $ | 641,606 | 13,960 | — | — | 62,219 | $ | 717,785 | ||||||||||||
| Commercial and industrial | 123,727 | 34,064 | 164,165 | 94,851 | 158 | 416,965 | ||||||||||||||
| Firm transportation | 86,600 | — | — | — | — | 86,600 | ||||||||||||||
| Interruptible, off-tariff and other | 8,599 | — | — | — | — | 8,599 | ||||||||||||||
| Revenues out of scope | 157,950 | 82,539 | 326,101 | — | — | 566,590 | ||||||||||||||
| Total operating revenues | $ | 1,018,482 | 130,563 | 490,266 | 94,851 | 62,377 | $ | 1,796,539 | ||||||||||||
| 2023 | ||||||||||||||||||||
| Residential | $ | 621,663 | 13,668 | — | — | 57,091 | $ | 692,422 | ||||||||||||
| Commercial and industrial | 136,011 | 30,701 | 76,975 | 88,700 | 342 | 332,729 | ||||||||||||||
| Firm transportation | 77,722 | — | — | — | — | 77,722 | ||||||||||||||
| Interruptible, off-tariff and other | 8,647 | — | — | — | — | 8,647 | ||||||||||||||
| Revenues out of scope | 167,241 | 79,762 | 604,471 | — | — | 851,474 | ||||||||||||||
| Total operating revenues | $ | 1,011,284 | 124,131 | 681,446 | 88,700 | 57,433 | $ | 1,962,994 | ||||||||||||
Customer Accounts Receivable/Credit Balances and Deposits
The timing of revenue recognition, customer billings and cash collections resulting in accounts receivables, billed and unbilled, and customers’ credit balances and deposits on the Consolidated Balance Sheets are as follows:
| Customer Accounts Receivable | Customers’Credit | ||||||||||
| (Thousands) | Billed | Unbilled | Balances and Deposits | ||||||||
| Balance as of September 30, 2023 | $ | 97,540 | $ | 19,100 | $ | 44,910 | |||||
| Increase (decrease) | 7,991 | 994 | (6,315) | ||||||||
| Balance as of September 30, 2024 | 105,531 | 20,094 | 38,595 | ||||||||
| Increase (decrease) | 3,835 | 4,100 | (7,298) | ||||||||
| Balance as of September 30, 2025 | $ | 109,366 | $ | 24,194 | $ | 31,297 | |||||
The following table provides information about receivables, which are included within accounts receivable, billed and unbilled, and customers’ credit balances and deposits, respectively, on the Consolidated Balance Sheets as of September 30:
| (Thousands) | NJNG | CEV | ES | S&T | HSO | Total | ||||||||||||||
| 2025 | ||||||||||||||||||||
| Customer accounts receivable | ||||||||||||||||||||
| Billed | $ | 75,789 | 6,818 | 17,483 | 8,172 | 1,104 | $ | 109,366 | ||||||||||||
| Unbilled | 14,817 | 9,377 | — | — | — | 24,194 | ||||||||||||||
| Customers’ credit balances and deposits | (31,257) | — | — | (40) | — | (31,297) | ||||||||||||||
| Total | $ | 59,349 | 16,195 | 17,483 | 8,132 | 1,104 | $ | 102,263 | ||||||||||||
| 2024 | ||||||||||||||||||||
| Customer accounts receivable | ||||||||||||||||||||
| Billed | $ | 51,613 | 8,441 | 34,002 | 8,598 | 2,877 | $ | 105,531 | ||||||||||||
| Unbilled | 11,839 | 8,255 | — | — | — | 20,094 | ||||||||||||||
| Customers’ credit balances and deposits | (38,572) | — | — | (23) | — | (38,595) | ||||||||||||||
| Total | $ | 24,880 | 16,696 | 34,002 | 8,575 | 2,877 | $ | 87,030 | ||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 20, 2025 | Showing above |
| 2021 | Nov 18, 2021 | |
| 2020 | Nov 30, 2020 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.