Other Investments

12 Months Ended

Sep. 30, 2020

OTHER INVESTMENTS

In October 2015, Midstream, acquired a 1% equity interest in the LLC. In November 2019, the Company's Board of Directors approved a pro-rata increase in Midstream's participation that will increase its equity interest to approximately 1.03% at the MVP's completion. Once in service, the MVP will transport approximately 2 million dth of natural gas per day.

Pipeline construction has been delayed due to regulatory and legal challenges that have restricted the recent focus to maintenance and restoration activities. As a result, the projected cost is expected to range from $5.8 to $6.0 billion, with Midstream's total cash contributions expected to range from $60 and $62 million. The managing partner extended the estimated in-service date to the second half of calendar 2021. The Company is utilizing the equity method to account for the transactions related to the MVP investment and recognizes earnings in proportion to its investment.

In April 2018, the LLC announced the MVP Southgate project, which is an approximately 75 mile pipeline extending from the MVP mainline in Virginia to delivery points in North Carolina. Midstream is a less than 1% investor in the project, which is being accounted for under the cost method. Total project cost is estimated to be nearly $500 million, of which Midstream's portion is estimated to be approximately $2.1 million. The Southgate in-service date is currently targeted for calendar year 2022.

Funding for Midstream's investments in the LLC for both the MVP and Southgate projects is being provided through two variable rate unsecured promissory notes, under a non-revolving credit agreement maturing in December 2022, and two additional notes issued in June 2019. See Note 7 for a schedule of debt instruments.

The Company will participate in the earnings generated from the transportation of natural gas through both pipelines proportionate to its level of investment once the pipelines are placed in service.

The investments in the LLC are included in the consolidated financial statements as follows:


	September 30
Balance Sheet location:	2020		2019
Other Assets:
MVP	$	57,183,063	$	47,055,426
Southgate	359,742		320,033
Investment in unconsolidated affiliates	$	57,542,805	$	47,375,459

Current Liabilities:
MVP	$	2,501,883	$	4,958,260
Southgate	10,554		66,564
Capital contributions payable	$	2,512,437	$	5,024,824


	Years ended September 30
Income Statement location:	2020		2019
Equity in earnings of unconsolidated affiliate	$	4,814,874	$	3,020,348


	September 30
	2020		2019
Undistributed earnings, net of income taxes, of MVP in retained earnings	$	6,842,702	$	3,267,176

The change in the investment in unconsolidated affiliates is provided below:


	September 30
	2020		2019
Cash investment	$	7,864,859	$	20,965,907
Change in accrued capital calls	(2,512,387)		(5,117,942)
Equity in earnings of unconsolidated affiliate	4,814,874		3,020,348
Change in investment in unconsolidated affiliates	$	10,167,346	$	18,868,313

Summary unaudited financial statements of MVP are presented below. Southgate financial statements, which are accounted for under the cost method, are not included:


	Income Statements

	Years Ended September 30,
	2020		2019
AFUDC	$	479,586,911	$	295,430,776
Net Other Income	714,128		5,655,644
Net Income	$	480,301,039	$	301,086,420


	Balance Sheets

	September 30
	2020		2019
Assets:
Current Assets	$	513,713,429	$	485,323,892
Construction Work in Progress	5,536,248,668		4,675,267,389
Other Assets	4,597,441		13,190,816
Total Assets	$	6,054,559,538	$	5,173,782,097

Liabilities and Equity:
Current Liabilities	$	187,581,804	$	466,776,233
Noncurrent Liabilities	245,000		—
Capital	5,866,732,734		4,707,005,864
Total Liabilities and Equity	$	6,054,559,538	$	5,173,782,097