New Jersey Resources Corporation (NJR): Business Model Canvas [Dec-2025 Updated]

Honestly, when you look at a company like New Jersey Resources Corporation (NJR), it's easy to get lost in the regulatory filings, but their business model is actually quite clear: it's a dual engine. You have the bedrock-a regulated natural gas utility serving about $\mathbf{589,000}$ customers, which provides that stable, predictable gross margin, making up $\mathbf{64\%}$ to $\mathbf{67\%}$ of their NFE (Net Financial Earnings). But the real story for the near term is their pivot into growth, specifically their Clean Energy Ventures arm, which has $\mathbf{479}$ MW of commercial solar in service and is backed by a hefty $\mathbf{\$752.5}$ million in fiscal 2025 capital expenditures. We've mapped out all nine blocks so you can see exactly how this regulated giant funds its clean energy future, right here.

New Jersey Resources Corporation (NJR) - Canvas Business Model: Key Partnerships

When you look at New Jersey Resources Corporation (NJR), its operational stability hinges on a complex web of regulatory bodies and essential suppliers. These relationships keep the gas flowing and the clean energy projects moving forward.

Federal Energy Regulatory Commission (FERC) for Pipeline Rate Approvals

The Federal Energy Regulatory Commission (FERC) is central to the Storage and Transportation (S&T) segment's revenue certainty. For instance, Adelphia Gateway, LLC, an NJR entity, successfully navigated a Section 4 rate case it filed with FERC on September 30, 2024. After reaching a settlement in principle on June 26, 2025, Adelphia filed its offer of settlement and subsequently received the order approving that settlement from FERC on November 4, 2025. Also, Leaf River Energy Center, another S&T asset, submitted an application to FERC on October 31, 2025, seeking approval to increase its working gas capacity by over 70%. These regulatory milestones directly impact the projected earnings for the S&T segment, which is expected to more than double its net financial earnings by 2027.

Rutgers University on the $50,000 Coastal Climate Initiative Project

New Jersey Resources Corporation actively partners on environmental stewardship through its Coastal Climate Initiative (CCI). You can see this commitment in the collaboration with Rutgers University. Specifically, NJR provided a $50,000 commitment to support the development and implementation of a sustainable landscape master plan in Manitou Park, Berkeley Township, via the Rutgers University Vibrant Communities Project. Overall, New Jersey Resources has committed $2 million in funding over a five-year period to support various CCI projects aimed at improving ecosystem resiliency and strengthening environmental education.

Homes for All Nonprofit for Affordable Housing Development

While New Jersey Resources Corporation is deeply involved in community support, direct financial data regarding a specific partnership with the Homes for All nonprofit was not available in the latest filings. However, the context of affordable housing is critical in New Jersey, where the state is addressing a shortage of over 200,000 homes for extremely low-income residents. The New Jersey Department of Community Affairs (DCA) released its Fourth Round Calculations for municipal obligations starting in 2025, providing guidance for development through 2035. NJR's utility, New Jersey Natural Gas (NJNG), is operating under a new generation of its SAVEGREEN® energy efficiency program, a $385.6 million initiative approved in late 2024 that runs through June 30, 2027.

Interstate Pipelines and Domestic Suppliers for Natural Gas Procurement

Procurement from interstate pipelines and domestic suppliers underpins the entire natural gas distribution business. As of September 30, 2025, New Jersey Resources Corporation had guarantees covering approximately $138.8 million of Energy Services' natural gas purchases and demand fee commitments that hadn't yet hit the balance sheet. Looking at a specific period, for the first quarter of fiscal 2025 (ended December 31, 2024), the natural gas purchases for Energy Services were reported at $67,868 thousand. These supply arrangements are crucial, especially as NJNG continues to grow its customer base, servicing approximately 589,000 customers at the end of fiscal 2025.

Commercial Solar Project Developers and EPC Contractors

The Clean Energy Ventures (CEV) subsidiary relies on developers and Engineering, Procurement, and Construction (EPC) contractors to execute its renewable energy strategy. In fiscal 2025, CEV placed a record 93 megawatts (MW) of new commercial solar capacity into service. This addition grew the total in-service portfolio to 479 megawatts (MW) as of September 30, 2025. CEV plans to expand capacity by more than 50% over the next 2 years from this point. This activity occurs within a broader market where the global Solar Engineering Services (EPC + O&M + technical advisory) market was valued at USD 12.3 Billion in 2024.

Here is a quick look at the scale of these key relationships:

Partner Type/Entity	Metric/Value	Date/Period Reference
FERC (Adelphia Settlement)	Approval Date: November 4, 2025	Fiscal Year 2025 Q4
FERC (Leaf River Expansion)	Capacity Increase: Over 70%	Application Date: October 31, 2025
Rutgers CCI Project	Specific Commitment: $50,000	Reported Project Funding
Interstate Suppliers (ES Guarantees)	Commitment Value: $138.8 million	As of September 30, 2025
Commercial Solar Portfolio	New Capacity Added: 93 MW	Fiscal 2025
Commercial Solar Portfolio	Total Capacity: 479 MW	As of September 30, 2025

You should track the progress of the Leaf River application, as that directly impacts the S&T segment's rate base filing with FERC.

New Jersey Resources Corporation (NJR) - Canvas Business Model: Key Activities

You're looking at the core engine driving New Jersey Resources Corporation (NJR) as of late 2025. These aren't just tasks; they are the revenue-generating and infrastructure-maintaining activities that define the company's diversified energy model. Here's the quick math on what they were actively doing in fiscal 2025.

Operating and maintaining 589,000 customer natural gas distribution system

The regulated utility, New Jersey Natural Gas (NJNG), is the bedrock. Its key activity is reliably delivering natural gas across its service territory. This activity is supported by recent regulatory adjustments and ongoing investment in the physical network.

• Serviced approximately 589,000 customers as of September 30, 2025.
• Achieved a Utility Gross Margin of $686.4 million in fiscal 2025.
• NJNG segment Net Income for fiscal 2025 was $213.5 million.
• Invested $437.6 million in capital expenditures within this segment in fiscal 2025.

The utility also actively manages energy efficiency programs. For instance, SAVEGREEN® invested $98.0 million in fiscal 2025 for customer upgrades, recovering $15.7 million of those program expenses through its energy-efficiency rate during the year.

Investing in and operating commercial solar projects (479 MW capacity)

Through the Clean Energy Ventures (CEV) segment, New Jersey Resources Corporation is executing on clean energy deployment, which is critical given federal tax credit deadlines. This involves developing, building, and operating solar facilities across multiple states.

Metric	2025 Result	Context
Total Commercial Solar Capacity In-Service (as of 9/30/2025)	479 MW	Across projects in New Jersey, New York, Connecticut, Pennsylvania, Rhode Island, Indiana, and Michigan.
New Commercial Solar Capacity Placed In-Service (FY 2025)	93.6 MW	This was a record annual installed capacity for CEV.
CEV Segment Net Income (FY 2025)	$61.2 million	This figure was largely driven by the gain on sale of its residential solar portfolio.

The activity of deploying solar projects is time-sensitive due to the Investment Tax Credits (ITCs).

Managing natural gas storage and transportation assets (e.g., Leaf River)

The Storage & Transportation (S&T) segment focuses on owning and operating midstream assets, providing services like supply arbitrage and balancing. This includes managing the Leaf River Energy Center and the Adelphia Gateway pipeline.

• Leaf River Energy Center has a combined working natural gas storage capacity of 32 Bcf across three salt dome caverns.
• Leaf River submitted an application to FERC on October 31, 2025, seeking to increase its certificated capacity by 17.6 BCF.
• The S&T segment also holds a 50 percent equity interest in the Steckman Ridge natural gas storage facility, which has a capacity of 12 Bcf.
• Adelphia Gateway pipeline has the capacity to deliver up to 0.85 Bcf per day.
• S&T Segment Net Income for fiscal 2025 totaled $18.5 million.

Executing the $150 million Infrastructure Investment Program

This is a dedicated, multi-year capital program within NJNG to enhance system safety and reliability. It is a five-year program that began in fiscal 2021.

The total authorized investment over the five years is $150 million. For the fiscal 2025 period, NJNG spent $16.1 million in the first six months alone on various distribution system reinforcement projects under this program.

Overall, New Jersey Resources Corporation deployed $703.6 million in capital expenditures across all segments in fiscal 2025.

Energy commodity management and physical natural gas services

This activity, primarily executed by the Energy Services (ES) segment, involves unregulated wholesale and retail natural gas operations, including managing Asset Management Agreements (AMAs).

The ES segment's Net Financial Earnings (NFE) for fiscal 2025 was $34.9 million. You should note that the underlying cash flow from the AMAs signed in December 2020 is expected to remain steady at $34 million annually through 2031, providing a predictable component to this otherwise volatile activity.

Finance: draft 13-week cash view by Friday.

New Jersey Resources Corporation (NJR) - Canvas Business Model: Key Resources

You're looking at the tangible and intangible assets New Jersey Resources Corporation (NJR) relies on to run its business as of late 2025. These are the core things the company owns or controls that make its value propositions possible.

Regulated utility franchise for New Jersey Natural Gas (NJNG)

The foundation of New Jersey Resources Corporation is its regulated utility, New Jersey Natural Gas (NJNG), which operates under cost-based regulation approved by the New Jersey Board of Public Utilities (BPU). This franchise grants the exclusive right to provide service within its territory, allowing recovery of authorized operating expenses and a reasonable return on capital investments.

• NJNG serviced approximately 589,000 customers as of September 30, 2025.
• The service territory covers 1,538 square miles in central and northern New Jersey.
• The utility supports an estimated population of 1.7 million people.
• New rates authorized by the BPU support the recovery of $850 million in investments made since the last rate case, supporting a rate base of $3.2 billion.

Natural gas pipeline and storage infrastructure (e.g., Adelphia Gateway)

New Jersey Resources Corporation owns critical midstream assets through its Storage and Transportation segment, which includes the FERC-regulated Adelphia Gateway Pipeline, LLC. This infrastructure is key for delivering natural gas to constrained markets in the greater Philadelphia region.

Infrastructure Asset	Metric	Value
Adelphia Gateway Pipeline	Length	93-mile interstate pipeline
Adelphia Gateway Pipeline	Capacity	Up to 850,000 dekatherms per day
Adelphia Gateway Pipeline	Households Served Annually	More than 250,000 mid-Atlantic households
Storage Assets	Ownership Stake in Steckman Ridge	50 percent equity ownership

The Storage and Transportation segment also includes ownership of the Leaf River Energy Center.

Commercial solar asset portfolio totaling 479 MW in service

The Clean Energy Ventures (CEV) segment holds a substantial portfolio of clean energy assets, primarily commercial solar projects across seven states. These assets generate revenue through long-term contracts, REC sales, and electricity sales.

• Total commercial solar capacity in service as of September 30, 2025, was approximately 479 MW.
• During fiscal 2025, CEV placed eleven commercial projects into service, adding 93.6 MW to installed capacity.
• Projects placed in service after December 31, 2022, qualify for a 30% Investment Tax Credit (ITC).

Financial capital for $752.5 million in fiscal 2025 capital expenditures

New Jersey Resources Corporation deploys significant financial capital to maintain and grow its assets, with a clear focus on its utility and clean energy segments.

The total capital expenditures for fiscal 2025 reached $752.5 million, an increase from $575.1 million in fiscal 2024. The company expects to deploy between $4.8 billion and $5.2 billion in capital expenditures through 2030.

Here's the quick math on that planned long-term deployment:

• Utility spending at NJNG is planned to represent over 60% of the total investment through 2030.
• The company raised approximately $14.9 million through its Dividend Reinvestment Plan (DRP) in fiscal 2025.

Skilled workforce for utility operations and energy trading

The operational expertise is supported by a dedicated team across its various business affiliates. This human capital is essential for managing complex regulated utility operations, energy trading, and project development.

• New Jersey Resources Corporation and its affiliates employ over 1,300 employees.
• The company is committed to efficiency through programs like SAVEGREEN™ and The Sunlight Advantage®.

Finance: draft 13-week cash view by Friday.

New Jersey Resources Corporation (NJR) - Canvas Business Model: Value Propositions

You're looking at the core promises New Jersey Resources Corporation (NJR) makes to its various customer groups. It's a mix of regulated stability and growth-oriented clean energy plays, which is how they manage risk and deliver value across the board.

Safe, reliable, and regulated natural gas distribution service

The foundation is New Jersey Natural Gas (NJNG), the regulated utility. They operate and maintain the infrastructure to deliver gas safely. This stability is reinforced by regulatory actions, like the $157.0 million annual increase to base rates authorized by the New Jersey Board of Public Utilities (BPU) effective November 21, 2024. This helps secure predictable returns on their physical assets. They are also actively modernizing this system through the Infrastructure Investment Program (IIP), a five-year, $150 million accelerated recovery program that began in fiscal 2021; they spent $24.0 million under this program in the first nine months of fiscal 2025 alone. That's how they keep the service reliable.

Low-carbon energy solutions through commercial solar projects

Through Clean Energy Ventures (CEV), NJR invests in and operates solar projects, offering low-carbon alternatives. They placed a record 93.6 MW of solar capacity into service in fiscal 2025. As of June 30, 2025, CEV had about 418MW of commercial solar capacity in service across states like New Jersey, New York, and Michigan. This segment is clearly focused on growth, having added 32.1MW from five commercial projects in the first nine months of fiscal 2025.

Energy efficiency and savings via the SAVEGREEN® program ($98 million invested in FY2025)

NJR helps customers reduce usage and save money through energy efficiency. The company reported record investments under its SAVEGREEN energy efficiency program in fiscal 2025, with a stated investment of $98 million for the full fiscal year. This is supported by a massive new program approved in late 2024, the next generation of SAVEGREEN®, valued at $385.6 million and effective from January 1, 2025, through June 30, 2027. For the first nine months of fiscal 2025, NJNG invested $72.9 million in these upgrades and recovered $13.0 million through the efficiency rate.

Customized energy solutions and asset management for wholesale customers

NJR Energy Services manages a diverse portfolio of natural gas transportation and storage assets, providing physical gas services and tailored solutions across North America. The Storage and Transportation segment, which includes assets like Leaf River Energy Center and a 50 percent stake in Steckman Ridge, generated a fiscal 2025 year-to-date Net Financial Earnings (NFE) contribution of $13.9 million as of June 30, 2025. Energy Services contributed $39.4 million in NFE over the same nine-month period. Furthermore, Adelphia Gateway, LLC reached a settlement in principle with customers on its Section 4 rate case on June 26, 2025, addressing transportation cost-of-service rates.

Home comfort products and service contracts for residential customers

NJR Home Services provides residential customers in New Jersey with service contracts and comfort products, including HVAC and standby generators. This segment provides a steady, albeit smaller, stream of earnings, reporting a fiscal 2025 year-to-date NFE contribution of $0.4 million through the first nine months of the year.

Here's a quick look at the scale of the utility and clean energy operations as of mid-2025:

Metric	New Jersey Natural Gas (NJNG)	Clean Energy Ventures (CEV)
Customers/Capacity Served (as of June 30, 2025)	Approximately 588,000 customers	Approximately 418MW of commercial solar capacity in service
Infrastructure/Asset Value Context	$157.0 million annual base rate increase effective late 2024	$385.6 million new SAVEGREEN program approved (Jan 2025 start)
FY2025 Year-to-Date Investment/Deployment (9 Months)	$24.0 million spent on Infrastructure Investment Program (IIP)	32.1MW added to total installed capacity

The regulated utility's stability is clear, supporting about 64% to 67% of the parent company's expected fiscal 2025 Net Financial Earnings contribution, while Clean Energy Ventures is targeted for 20% to 22% of the expected contribution.

New Jersey Resources Corporation (NJR) - Canvas Business Model: Customer Relationships

You're looking at how New Jersey Resources Corporation (NJR) manages its direct interactions and ongoing commitments with its diverse customer base across its utility and non-utility segments. It's a mix of regulated service mandates and market-driven service offerings.

Regulated service model with state oversight (New Jersey Board of Public Utilities)

New Jersey Natural Gas (NJNG), the utility arm, provides regulated natural gas service to customers across Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey. This operation is directly subject to rate regulation by the New Jersey Board of Public Utilities (BPU). For instance, following a base rate case settlement approved by the BPU on November 21, 2024, NJNG implemented a $157.0 million annual increase to its base rates. The Storage and Transportation (S&T) segment's subsidiaries, like Adelphia Gateway, LLC, are subject to rate regulation by the Federal Energy Regulatory Commission (FERC), with Adelphia reaching a settlement in principle with customers on June 26, 2025.

Dedicated energy efficiency program support (SAVEGREEN®)

New Jersey Resources Corporation supports customer energy management through its dedicated energy efficiency program, SAVEGREEN®. The BPU approved a new, large-scale SAVEGREEN® program on October 30, 2024, totaling $385.6 million, set to run from January 1, 2025, through June 30, 2027. For the full fiscal year 2025, the investment under the SAVEGREEN® energy efficiency program reached a record $98 million. Year-to-date through the third quarter of fiscal 2025 (ended June 30, 2025), the investment totaled $72.9 million in energy-efficiency upgrades for homes and businesses.

Direct customer service and billing for 589,000 utility accounts

The direct relationship with the core utility customer base is substantial. As of September 30, 2025, NJNG serviced approximately 589,000 customers across its service territory. This involves direct customer service and billing operations for these accounts. The base rate increase effective in late 2024 was expected to result in an initial overall increase of $27.30, or 1.8 percent, on a typical 1,000-therm annual residential bill.

Here's a quick look at the utility customer base and related program investment figures:

Metric	Value	As of Date/Period
NJNG Utility Customers	589,000	September 30, 2025
New SAVEGREEN® Program Total Cost	$385.6 million	Approved October 30, 2024
Fiscal 2025 SAVEGREEN® Investment (YTD Q3)	$72.9 million	First nine months of fiscal 2025
Fiscal 2025 Record SAVEGREEN® Investment (Annual)	$98 million	Fiscal 2025 Year-End
Annual Base Rate Increase Authorized by BPU	$157.0 million	Effective November 21, 2024

Long-term contracts for natural gas transportation and storage capacity

For the Storage and Transportation (S&T) segment, customer relationships are formalized through long-term agreements. The performance obligation involves providing customers with storage and transportation services. Revenue is generated from firm storage contracts and transportation contracts. For example, Adelphia Gateway, LLC, filed its Section 4 rate case with FERC on September 30, 2024, and reached a settlement in principle with customers on June 26, 2025.

Home Services subscription and installation contracts

The Home Services and Other Operations segment engages customers through service contracts for maintenance and replacement of heating, cooling, or ventilation equipment. These contracts recognize revenue on a straight-line basis over the contract term. For the full fiscal year 2025 (ended September 30, 2025), Home Services reported a net financial loss of $(0.4) million, an improvement from breakeven Net Financial Earnings (NFE) in fiscal 2024. For the year-to-date period ended June 30, 2025, the segment reported higher installation and service contract revenue compared to the prior year period.

Key financial performance indicators for Home Services:

• Fiscal 2025 full-year net financial loss: $(0.4) million.
• Fiscal 2024 full-year NFE: breakeven.
• Fiscal 2025 year-to-date net financial loss (ended June 30): $(0.4) million.
• Fiscal 2024 year-to-date net financial loss (ended June 30): $(0.7) million.

Still, the segment saw higher installation and service contract revenue for the year-to-date period ended June 30, 2025.

Finance: draft 13-week cash view by Friday.

New Jersey Resources Corporation (NJR) - Canvas Business Model: Channels

You're looking at how New Jersey Resources Corporation (NJR) gets its value proposition to its customers and stakeholders as of late 2025. It's a mix of physical infrastructure, direct service, and digital interaction.

Physical natural gas distribution network and pipelines

The core channel is the physical network managed by New Jersey Natural Gas (NJNG). As of September 30, 2025, NJNG serviced approximately 589,000 customers across New Jersey's Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington counties. This distribution system covers 1,538 square miles, reaching an estimated population of 1.7 million people. Capital spending reflects this channel's importance; total capital expenditures for fiscal 2025 were $752.5 million. The Storage and Transportation segment also uses pipelines, like the Adelphia Gateway Pipeline, to reach wholesale marketers and electric generators.

Here's a snapshot of the physical asset scale and related investment:

Asset/Metric	Entity	Value (as of FY2025 End)
Customers Served	NJNG	589,000
Service Area Square Miles	NJNG	1,538
Total Fiscal 2025 Capital Expenditures	NJR (Consolidated)	$752.5 million
IIP Program Value	NJNG	$150 million over five years

Direct sales force and service technicians for Home Services

For the Home Services division, the channel is direct interaction via sales and service technicians. NJR has over 1,300 employees overall committed to customer support, conservation, and efficiency. This division offers service contracts and comfort products directly to residential homes in New Jersey. While this segment is smaller in terms of Net Financial Earnings (NFE) contribution-reporting a fiscal 2025 net financial loss of $(0.4) million for the full year-it represents a crucial, hands-on touchpoint for the customer base.

Investor Relations for financial community and shareowners

The financial community and shareowners are reached through formal Investor Relations channels. For fiscal 2025, the company delivered consolidated Net Financial Earnings (NFE) of $329.6 million, or $3.29 per share. Total fiscal 2025 Net Income was $335.6 million. Direct engagement with shareowners is evidenced by capital raised through the Dividend Reinvestment Plan (DRP), which brought in approximately $14.9 million, plus an additional $19.9 million from the DRP's waiver discount feature during fiscal 2025.

Digital channels for billing, conservation, and energy-saving information

Digital channels are used to deliver billing information and promote energy savings. The next generation of the SAVEGREEN® energy efficiency program, approved through June 30, 2027, represents a $385.6 million investment. In fiscal 2025 alone, the investment under the SAVEGREEN® program reached a record of $98 million. These digital and program-based channels help communicate conservation efforts like Conserve to Preserve®.

Wholesale market trading platforms for Energy Services

The Energy Services (ES) segment uses wholesale market trading platforms to transact. For the full fiscal year 2025, ES reported an NFE of $34.9 million. The fourth quarter of fiscal 2025 saw an NFE of $(4.5) million for ES, which management attributed to lower contributions from Asset Management Agreements (AMAs) signed in December 2020 compared to the prior year. The Storage and Transportation segment also interacts with wholesale markets via its assets, such as the Leaf River Energy Center.

The overall annual revenue for New Jersey Resources Corporation for the last reported fiscal year ending September 30, 2025, was $2.0 billion.

Finance: draft 13-week cash view by Friday.

New Jersey Resources Corporation (NJR) - Canvas Business Model: Customer Segments

Regulated residential and commercial natural gas customers in six NJ counties

New Jersey Natural Gas (NJNG), the principal subsidiary, serves customers across Monmouth, Ocean, Morris, Middlesex, Sussex, and Burlington counties in New Jersey. As of September 30, 2025, NJNG serviced approximately 589,000 firm customers.

Here's the quick math on the customer breakdown for the six months ended March 31, 2025, which gives a good view of the regulated base:

Customer Type	Number of Customers (Six Months Ended March 31, 2025)
Residential	532,699
Commercial, Industrial & Other	33,291
Total Firm Customers	588,050

The regulated segment's stability is enhanced by a decoupling mechanism, the Conservation Incentive Program (CIP), which insulates margin from usage volatility.

Wholesale energy marketers, electric generators, and local distributors

NJR Energy Services (NJRES) and the Storage & Transportation segment cater to these business-to-business customers across North America. The Storage & Transportation segment specifically serves customers including:

• Local distributors
• Producers
• Electric generators
• Wholesale marketers

These wholesale and transportation services are supported by assets like the Leaf River Energy Center and the Adelphia Gateway Pipeline Project.

Commercial and industrial businesses utilizing solar power solutions

NJR Clean Energy Ventures (NJRCEV) focuses on providing low-carbon solutions to commercial customers through owned solar projects. NJRCEV maintains a portfolio of approximately 417 megawatts of commercial solar capacity. As of an earlier report, the company maintained 70 commercial solar assets across six states. This segment is distinct from the residential solar portfolio, which was sold in November 2024.

Residential homeowners needing appliance service contracts and installations

NJR Home Services (NJRHS) targets residential homeowners throughout New Jersey with comfort products and related services. This segment provides:

• Service contracts
• Installation and repair of heating, central air conditioning, and water heaters
• Standby generators and other indoor/outdoor comfort products

NJRHS focuses on helping customers save energy and money through conservation and efficiency initiatives.

New Jersey Resources Corporation (NJR) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive New Jersey Resources Corporation (NJR) operations, which are heavily weighted toward regulated utility assets and commodity markets. These costs are the foundation upon which their revenue streams are built.

High fixed costs from utility infrastructure and pipeline depreciation are a defining feature for NJR, especially through its New Jersey Natural Gas (NJNG) segment. These assets require constant upkeep and represent significant sunk capital. The depreciation expense reflects this investment in the physical network.

Significant capital expenditures show the ongoing commitment to maintaining and growing this infrastructure. You can see this commitment clearly in the full-year 2025 figures.

Here's a quick look at the major costs reported for the fiscal year 2025 (ending September 30, 2025), based on consolidated operating expenses:

Cost Category (GAAP Basis, Thousands)	Fiscal Year 2025 Amount
Natural gas purchases (Commodity Cost)	$528,992
Operation and maintenance	$230,876
Regulatory rider expense	$87,199
Depreciation and amortization	$140,368

Natural gas purchases and commodity costs are the largest variable expense, reported at $528,992 thousand for fiscal 2025. Remember, for the regulated utility business, these costs are generally passed through to customers via rates, meaning they are offset by corresponding revenues, but they still represent a massive cash flow component.

Operating and maintenance expenses for utility and solar assets are substantial. For the full fiscal year 2025, these expenses totaled $230,876 thousand. This covers keeping the gas mains safe and the solar facilities generating power.

The costs associated with maintaining the asset base are clear:

• Depreciation and amortization for fiscal 2025 totaled $140,368 thousand.
• The composite depreciation rate approved in the November 2024 base rate case settlement was 3.21 percent on rate base.
• NJNG invested $40.0 million under its Infrastructure Investment Program (IIP) during fiscal 2025.

Regulatory compliance and legal costs manifest in several ways. The Regulatory rider expense for fiscal 2025 was $87,199 thousand, covering state-mandated programs like energy efficiency. On the legal front, Adelphia Gateway, LLC (Adelphia), which is part of Storage and Transportation, filed a Section 4 rate case with FERC on September 30, 2024, and reached a settlement in principle with customers on June 26, 2025. While the final cost impact isn't fully detailed as a one-time charge here, rate case proceedings themselves involve significant legal and consulting expenses.

The overall investment picture for the year is stark:

• Total capital expenditures for fiscal 2025 were $752.5 million.
• This was an increase from $575.1 million in fiscal 2024.

Finance: draft 13-week cash view by Friday.

New Jersey Resources Corporation (NJR) - Canvas Business Model: Revenue Streams

The revenue streams for New Jersey Resources Corporation (NJR) are anchored by regulated utility operations, supplemented by contracted clean energy investments and midstream services. As of late 2025, the company's Total Revenue (TTM) was reported at $2.04 Billion USD for the twelve months ending September 30, 2025.

The core revenue driver remains the regulated utility gross margin generated by New Jersey Natural Gas (NJNG). For fiscal year 2025, this segment's Net Financial Earnings (NFE) totaled $213.5 million. This utility gross margin is projected to account for between 64% to 67% of total NFE. The stability of this revenue is supported by a recent base rate increase and the Conservation Incentive Program (CIP), a decoupling mechanism.

Second, earnings from Clean Energy Ventures (CEV) commercial solar projects provide a significant, growing component. CEV placed a record 93 megawatts (MW) of in-service capacity in fiscal 2025, bringing total installed capacity to 479 MW. This segment is expected to contribute between 20% to 22% of NFE. CEV is targeting installed capacity growth of over 50% by 2027.

Third, natural gas transportation and storage fees from the Storage & Transportation (S&T) business are a contracted revenue source, anticipated to represent 4% to 6% of NFE. S&T NFE for fiscal 2025 totaled $18.5 million. Management projects S&T NFE to more than double by 2027.

Finally, Energy Services (ES) generates earnings from asset management and physical natural gas sales, benefiting from natural gas price volatility. Fiscal 2025 NFE for Energy Services was $34.9 million, though this was down from $111.5 million in fiscal 2024 due to lower contributions from Asset Management Agreements (AMAs) signed in December 2020. The company has maintained profitability for over two decades, showing operational resilience.

Here's a look at the NFE contribution breakdown based on the guidance percentages and the total reported FY2025 NFE of $329.6 million:

Revenue Stream Segment	FY 2025 NFE (Reported USD)	Expected NFE Contribution Range (as per outline)
New Jersey Natural Gas (NJNG) - Regulated Utility Gross Margin	$213.5 million	64% to 67%
Clean Energy Ventures (CEV) - Solar Projects	Not explicitly stated as a percentage of NFE in final reports, but guidance suggests 20-25%	20% to 22%
Storage & Transportation (S&T) - Fees	$18.5 million	4% to 6%
Energy Services (ES) - Asset Management/Physical Sales	$34.9 million	Segment Earnings

The total consolidated NFE for fiscal 2025 was $329.6 million, up from $290.8 million in fiscal 2024.

• NJNG serviced approximately 588,000 customers as of June 30, 2025.
• CEV placed a record 93 MW of in-service capacity in fiscal 2025.
• The company is executing a $4.8 billion to $5.2 billion Capital Expenditure (CAPEX) plan through fiscal 2030.
• NJR has a long-term NFEPS growth target of 7 to 9 percent.