Summary of Significant Accounting Policies

6 Months Ended

Mar. 31, 2026

Summary of Significant Accounting Policies

Principles of Consolidation. The Company consolidates all entities in which it has a controlling financial interest. All significant intercompany balances and transactions are eliminated. The Company uses proportionate consolidation when accounting for drilling arrangements related to exploration and production properties accounted for under the full cost method of accounting.

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Reclassifications. As reported in the Company's 2025 Form 10-K, during the quarter ended September 30, 2025, the segment reporting structure was modified to merge the Exploration and Production segment and Gathering segment into one reportable segment called Integrated Upstream and Gathering. As a result, revenue and operation and maintenance expense line items on the consolidated statements of income in prior periods have been reclassified to conform to the current year presentation. Additional discussion is provided at Note 9 — Business Segment Information.

Earnings for Interim Periods. The Company, in its opinion, has included all adjustments (which consist of only normally recurring adjustments, unless otherwise disclosed in this Quarterly Report on Form 10-Q) that are necessary for a fair statement of the results of operations for the reported periods. The consolidated financial statements and notes thereto, included herein, should be read in conjunction with the financial statements and notes for the years ended September 30, 2025, 2024 and 2023 that are included in the Company's 2025 Form 10-K. The consolidated financial statements for the year ended September 30, 2026 will be audited by the Company's independent registered public accounting firm after the end of the fiscal year.

The earnings for the six months ended March 31, 2026 should not be taken as a prediction of earnings for the entire fiscal year ending September 30, 2026. Most of the business of the Utility segment is seasonal in nature and is influenced by weather conditions. Due to the seasonal nature of the heating business in the Utility segment, earnings during the winter months normally represent a substantial part of the earnings that this business is expected to achieve for the entire fiscal year. The Company’s business segments are discussed more fully in Note 9 – Business Segment Information.

Consolidated Statements of Cash Flows. The components, as reported on the Company's Consolidated Balance Sheets, of the total cash, cash equivalents, and restricted cash presented on the Statement of Cash Flows are as follows (in thousands):


	Six Months Ended March 31, 2026				Six Months Ended March 31, 2025
	Balance at March 31, 2026		Balance at October 1, 2025		Balance at March 31, 2025		Balance at October 1, 2024

Cash and Temporary Cash Investments	$	26,596	$	43,166	$	39,954	$	38,222
Cash Held in Trust for Bondholders	—		—		51,352		—

Cash, Cash Equivalents, and Restricted Cash	$	26,596	$	43,166	$	91,306	$	38,222

The Company considers all highly liquid debt instruments purchased with a maturity date of generally three months or less to be cash equivalents. Cash Held in Trust for Bondholders is the only restricted cash recorded on the Consolidated Balance Sheet. It relates to the cancellation and discharge of the Company's obligations under its 1974 indenture covenants.

Allowance for Uncollectible Accounts. The allowance for uncollectible accounts is the Company’s best estimate of the amount of probable credit losses in the existing accounts receivable. The allowance, the majority of which is in the Utility segment, is determined based on historical experience, the age of customer accounts, other specific information about customer accounts, and the economic and regulatory environment. Account balances have historically been written-off against the allowance approximately twelve months after the account is final billed or when it is anticipated that the receivable will not be recovered. Starting in the quarter ended March 31, 2025, account balances are being written-off against the allowance

approximately three months after the account is final billed or when it is anticipated that the receivable will not be recovered. This change in policy was initiated to better match the timing of write-offs with the recovery of uncollectible expense in rates and resulted in a one-time cumulative adjustment to the allowance during the quarter ended March 31, 2025.

Activity in the allowance for uncollectible accounts for the six months ended March 31, 2026 and 2025 are as follows (in thousands):


	Balance at Beginning of Period		Additions Charged to Costs and Expenses		Discounts on Purchased Receivables		Net Accounts Receivable Written-Off		Balance at End of Period
Six Months Ended March 31, 2026
Allowance for Uncollectible Accounts	$	17,099	$	12,678	$	627	$	(6,387)	$	24,017
Six Months Ended March 31, 2025
Allowance for Uncollectible Accounts	$	26,194	$	15,497	$	535	$	(18,775)	$	23,451

Gas Stored Underground. In the Utility segment, gas stored underground is carried at lower of cost or net realizable value, on a LIFO method. Gas stored underground normally declines during the first and second quarters of the year as storage quantities are withdrawn and increases in the third and fourth quarters as storage quantities are replenished. In the Utility segment, the current cost of replacing gas withdrawn from storage is recorded in the Consolidated Statements of Income and a reserve for gas replacement is recorded in the Consolidated Balance Sheets under the caption “Other Accruals and Current Liabilities.” Such reserve, which amounted to $47.4 million at March 31, 2026, is reduced to zero by September 30 of each year as the inventory is replenished.

Property, Plant and Equipment. In the Company’s Integrated Upstream and Gathering segment, upstream property acquisition, exploration and development costs are accounted for under the full cost method of accounting. Under this methodology, all costs associated with property acquisition, exploration and development activities are capitalized, including internal costs directly identified with acquisition, exploration and development activities. The internal costs that are capitalized do not include any costs related to production, general corporate overhead, or similar activities. The Company does not recognize any gain or loss on the sale or other disposition of properties unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves attributable to a cost center. The Company's capitalized costs relating to exploration and production activities, net of accumulated depreciation, depletion and amortization, were $2.59 billion and $2.46 billion at March 31, 2026 and September 30, 2025, respectively.

Capitalized costs include costs related to unproved properties, which are excluded from amortization until proved reserves are found or it is determined that the unproved properties are impaired. Such costs amounted to $109.3 million and $112.4 million at March 31, 2026 and September 30, 2025, respectively. All costs related to unproved properties are reviewed quarterly to determine if impairment has occurred. The amount of any impairment is transferred to the pool of capitalized costs being amortized.

Capitalized costs are subject to the SEC full cost ceiling test. The ceiling test, which is performed each quarter, determines a limit, or ceiling, on the amount of property acquisition, exploration and development costs that can be capitalized. The ceiling under this test represents (a) the present value of estimated future net cash flows, excluding future cash outflows associated with settling asset retirement obligations that have been accrued on the balance sheet, using a discount factor of 10%, which is computed by applying commodity pricing (as adjusted for hedging) to estimated future production of proved reserves as of the date of the latest balance sheet, less estimated future expenditures, plus (b) the cost of unproved properties not being depleted, less (c) income tax effects related to the differences between the book and tax basis of the properties. The commodity prices used to calculate the full cost ceiling are based on an unweighted arithmetic average of first day of the month commodity price for each month within the twelve-month period prior to the end of the reporting period. If capitalized costs, net of accumulated depreciation, depletion and amortization and related deferred income taxes, exceed the ceiling at the end of any quarter, a permanent non-cash impairment is required to be charged to earnings in that quarter. At March 31, 2026, the ceiling exceeded the book value of the exploration and production properties by approximately $1.6 billion. The book value of the exploration and production properties exceeded the ceiling at December 31, 2024. As such, the Company recognized a non-cash, pre-tax ceiling test impairment charge in the Integrated Upstream and Gathering segment of $108.3 million for the quarter ended December 31, 2024. A deferred income tax benefit of $29.2 million related to the non-cash impairment charge was also recognized for the quarter ended December 31, 2024. In adjusting estimated future net cash flows for hedging under the ceiling test at March 31, 2026, estimated future net cash flows were increased by $59.5 million.

The Integrated Upstream and Gathering segment also has items of property, plant and equipment that are accounted for outside of the provisions of the full cost method of accounting, including water disposal assets used in its upstream operations as well as gathering lines and compressor stations associated with its gathering operations, all of which are recorded at historical cost. As discussed in Note 4 – Fair Value Measurements, an impairment charge related to certain water disposal assets was recorded in the Integrated Upstream and Gathering segment at December 31, 2024.

The principal assets of the Utility and Pipeline and Storage segments, consisting primarily of gas distribution pipelines, transmission pipelines, storage facilities and compressor stations, are recorded at historical cost. There were no indications of any impairments to property, plant and equipment in the Utility and Pipeline and Storage segments at March 31, 2026.

Accumulated Other Comprehensive Income (Loss). The components of Accumulated Other Comprehensive Income (Loss) and changes for the six months ended March 31, 2026 and 2025, net of related tax effect, are as follows (amounts in parentheses indicate debits) (in thousands):


	Gains and Losses on Derivative Financial Instruments		Funded Status of the Pension and Other Post-Retirement Benefit Plans		Total
Three Months Ended March 31, 2026
Balance at January 1, 2026	$	46,182	$	(79,172)	$	(32,990)
Other Comprehensive Gains and Losses Before Reclassifications	(1,604)		—		(1,604)
Amounts Reclassified From Other Comprehensive Loss	35,705		—		35,705

Balance at March 31, 2026	$	80,283	$	(79,172)	$	1,111
Six Months Ended March 31, 2026
Balance at October 1, 2025	$	19,950	$	(79,172)	$	(59,222)
Other Comprehensive Gains and Losses Before Reclassifications	34,349		—		34,349
Amounts Reclassified From Other Comprehensive Loss	25,984		—		25,984


Balance at March 31, 2026	$	80,283	$	(79,172)	$	1,111
Three Months Ended March 31, 2025
Balance at January 1, 2025	$	(4,878)	$	(71,275)	$	(76,153)
Other Comprehensive Gains and Losses Before Reclassifications	(152,786)		—		(152,786)
Amounts Reclassified From Other Comprehensive Loss	5,964		—		5,964

Balance at March 31, 2025	$	(151,700)	$	(71,275)	$	(222,975)
Six Months Ended March 31, 2025
Balance at October 1, 2024	$	55,799	$	(71,275)	$	(15,476)
Other Comprehensive Gains and Losses Before Reclassifications	(191,899)		—		(191,899)
Amounts Reclassified From Other Comprehensive Loss	(15,600)		—		(15,600)

Balance at March 31, 2025	$	(151,700)	$	(71,275)	$	(222,975)

Reclassifications Out of Accumulated Other Comprehensive Income (Loss). The details about the reclassification adjustments out of accumulated other comprehensive income (loss) for the six months ended March 31, 2026 and 2025 are as follows (amounts in parentheses indicate debits to the income statement) (in thousands):


Details About Accumulated Other Comprehensive Income (Loss) Components	Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss)				Affected Line Item in the Statement Where Net Income is Presented
	Three Months Ended March 31,		Six Months Ended March 31,
	2026	2025	2026	2025
Gains (Losses) on Derivative Financial Instrument Cash Flow Hedges:
Commodity Contracts	($48,694)	($7,834)	($35,299)	$21,894	Operating Revenues

Foreign Currency Contracts	(66)	(326)	(186)	(550)	Operating Revenues
	(48,760)	(8,160)	(35,485)	21,344	Total Before Income Tax
	13,055	2,196	9,501	(5,744)	Income Tax Expense
	($35,705)	($5,964)	($25,984)	$15,600	Net of Tax

Other Current Assets. The components of the Company’s Other Current Assets are as follows (in thousands):


	At March 31, 2026		At September 30, 2025

Prepayments	$	8,699	$	16,477
Prepaid Property and Other Taxes	22,207		13,920
Federal Income Taxes Receivable	—		14,511
State Income Taxes Receivable	—		489

Regulatory Assets	33,037		35,362
	$	63,943	$	80,759

Other Accruals and Current Liabilities. The components of the Company’s Other Accruals and Current Liabilities are as follows (in thousands):


	At March 31, 2026		At September 30, 2025

Accrued Capital Expenditures	$	57,675	$	45,932
Regulatory Liabilities	20,235		20,624
Reserve for Gas Replacement	47,387		—
Liability for Royalty and Working Interests	44,108		28,076
Federal Income Taxes Payable	7,029		—
State Income Taxes Payable	4,997		—

Pennsylvania Impact Fee	3,680		14,923
Non-Qualified Benefit Plan Liability	11,567		11,567
Other	46,082		53,567
	$	242,760	$	174,689

Earnings Per Common Share. Basic earnings per common share is computed by dividing income or loss by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For purposes of determining earnings per common share, the potentially dilutive securities the Company had outstanding were restricted stock units and performance shares. For the quarter and six months ended March 31, 2026, the diluted weighted average shares outstanding shown on the Consolidated Statements of Income reflects the potential dilution as a result of these

securities as determined using the Treasury Stock Method. Restricted stock units and performance shares that are antidilutive are excluded from the calculation of diluted earnings per common share. There were 99 securities and 2,072 securities excluded as being antidilutive for the quarter and six months ended March 31, 2026, respectively. There were 30 securities excluded as being antidilutive for the quarter ended March 31, 2025. There were no securities excluded as being antidilutive for the six months ended March 31, 2025.

Share Repurchases. The Company considers all shares repurchased as cancelled shares restored to the status of authorized but unissued shares, in accordance with New Jersey law. The repurchases are accounted for on the date the share repurchase is traded as an adjustment to common stock (at par value) with the excess repurchase price allocated between paid in capital and retained earnings.

Stock-Based Compensation. The Company granted 137,995 performance shares during the six months ended March 31, 2026. The weighted average fair value of such performance shares was $62.07 per share for the six months ended March 31, 2026. Performance shares are an award constituting units denominated in common stock of the Company, the number of which may be adjusted over a performance cycle based upon the extent to which performance goals have been satisfied. Earned performance shares may be distributed in the form of shares of common stock of the Company, an equivalent value in cash or a combination of cash and shares of common stock of the Company, as determined by the Company. The performance shares do not entitle the participant to receive dividends during the vesting period.

The performance shares granted during the six months ended March 31, 2026 include awards that must meet a performance goal related to relative total shareholder return over a three-year performance cycle ("TSR Performance Shares"). The performance goal related to the TSR Performance Shares over the three-year performance cycle is the Company’s three-year total shareholder return relative to the three-year total shareholder return of other companies in a group selected by the Compensation Committee ("Report Group"). Three-year total shareholder return for a given company will be based on the data reported for that company (with the starting and ending stock prices over the performance cycle calculated as the average closing stock price for the prior calendar month and with dividends reinvested in that company’s securities at each ex-dividend date) in the Bloomberg database. The number of these TSR Performance Shares that will vest and be paid will depend upon the Company’s performance relative to the Report Group and not upon the absolute level of return achieved by the Company. The fair value price at the date of grant for the TSR Performance Shares is determined using a Monte Carlo simulation technique, which includes a reduction in value for the present value of forgone dividends over the vesting term of the award. This price is multiplied by the number of TSR Performance Shares awarded, the result of which is recorded as compensation expense over the vesting term of the award.

The Company granted 128,755 restricted stock units during the six months ended March 31, 2026. The weighted average fair value of such restricted stock units was $77.75 per share for the six months ended March 31, 2026. Restricted stock units represent the right to receive shares of common stock of the Company (or the equivalent value in cash or a combination of cash and shares of common stock of the Company, as determined by the Company) at the end of a specified time period. These restricted stock units do not entitle the participant to receive dividends during the vesting period. The fair value at the date of grant of the restricted stock units (represented by the market value of Company common stock on the date of the award) must be reduced by the present value of forgone dividends over the vesting term of the award. The fair value of restricted stock units on the date of award is recorded as compensation expense over the vesting period.