New Jersey | 13-1086010 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
6363 Main Street | |
Williamsville, New York | 14221 |
(Address of principal executive offices) | (Zip Code) |
Large Accelerated Filer | þ | Accelerated Filer | ¨ |
Non-Accelerated Filer | ¨ (Do not check if a smaller reporting company) | Smaller Reporting Company | ¨ |
National Fuel Gas Companies | |
Company | The Registrant, the Registrant and its subsidiaries or the Registrant’s subsidiaries as appropriate in the context of the disclosure |
Distribution Corporation | National Fuel Gas Distribution Corporation |
Empire | Empire Pipeline, Inc. |
Midstream Corporation | National Fuel Gas Midstream Corporation |
National Fuel | National Fuel Gas Company |
NFR | National Fuel Resources, Inc. |
Registrant | National Fuel Gas Company |
Seneca | Seneca Resources Corporation |
Supply Corporation | National Fuel Gas Supply Corporation |
Regulatory Agencies | |
CFTC | Commodity Futures Trading Commission |
EPA | United States Environmental Protection Agency |
FASB | Financial Accounting Standards Board |
FERC | Federal Energy Regulatory Commission |
NYDEC | New York State Department of Environmental Conservation |
NYPSC | State of New York Public Service Commission |
PaDEP | Pennsylvania Department of Environmental Protection |
PaPUC | Pennsylvania Public Utility Commission |
SEC | Securities and Exchange Commission |
Other | |
2015 Form 10-K | The Company’s Annual Report on Form 10-K for the year ended September 30, 2015 |
Bbl | Barrel (of oil) |
Bcf | Billion cubic feet (of natural gas) |
Bcfe (or Mcfe) – represents Bcf (or Mcf) Equivalent | The total heat value (Btu) of natural gas and oil expressed as a volume of natural gas. The Company uses a conversion formula of 1 barrel of oil = 6 Mcf of natural gas. |
Btu | British thermal unit; the amount of heat needed to raise the temperature of one pound of water one degree Fahrenheit |
Capital expenditure | Represents additions to property, plant, and equipment, or the amount of money a company spends to buy capital assets or upgrade its existing capital assets. |
Cashout revenues | A cash resolution of a gas imbalance whereby a customer pays Supply Corporation and/or Empire for gas the customer receives in excess of amounts delivered into Supply Corporation’s and Empire’s systems by the customer’s shipper. |
Degree day | A measure of the coldness of the weather experienced, based on the extent to which the daily average temperature falls below a reference temperature, usually 65 degrees Fahrenheit. |
Derivative | A financial instrument or other contract, the terms of which include an underlying variable (a price, interest rate, index rate, exchange rate, or other variable) and a notional amount (number of units, barrels, cubic feet, etc.). The terms also permit for the instrument or contract to be settled net and no initial net investment is required to enter into the financial instrument or contract. Examples include futures contracts, forward contracts, options, no cost collars and swaps. |
Development costs | Costs incurred to obtain access to proved oil and gas reserves and to provide facilities for extracting, treating, gathering and storing the oil and gas |
Dodd-Frank Act | Dodd-Frank Wall Street Reform and Consumer Protection Act. |
Dth | Decatherm; one Dth of natural gas has a heating value of 1,000,000 British thermal units, approximately equal to the heating value of 1 Mcf of natural gas. |
Exchange Act | Securities Exchange Act of 1934, as amended |
Expenditures for long-lived assets | Includes capital expenditures, stock acquisitions and/or investments in partnerships. |
Exploration costs | Costs incurred in identifying areas that may warrant examination, as well as costs incurred in examining specific areas, including drilling exploratory wells. |
FERC 7(c) application | An application to the FERC under Section 7(c) of the federal Natural Gas Act for authority to construct, operate (and provide services through) facilities to transport or store natural gas in interstate commerce. |
Firm transportation and/or storage | The transportation and/or storage service that a supplier of such service is obligated by contract to provide and for which the customer is obligated to pay whether or not the service is utilized. |
GAAP | Accounting principles generally accepted in the United States of America |
Goodwill | An intangible asset representing the difference between the fair value of a company and the price at which a company is purchased. |
Hedging | A method of minimizing the impact of price, interest rate, and/or foreign currency exchange rate changes, often times through the use of derivative financial instruments. |
Hub | Location where pipelines intersect enabling the trading, transportation, storage, exchange, lending and borrowing of natural gas. |
ICE | Intercontinental Exchange. An exchange which maintains a futures market for crude oil and natural gas. |
Interruptible transportation and/or storage | The transportation and/or storage service that, in accordance with contractual arrangements, can be interrupted by the supplier of such service, and for which the customer does not pay unless utilized. |
LDC | Local distribution company |
LIBOR | London Interbank Offered Rate |
LIFO | Last-in, first-out |
Marcellus Shale | A Middle Devonian-age geological shale formation that is present nearly a mile or more below the surface in the Appalachian region of the United States, including much of Pennsylvania and southern New York. |
Mbbl | Thousand barrels (of oil) |
Mcf | Thousand cubic feet (of natural gas) |
MD&A | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
MDth | Thousand decatherms (of natural gas) |
MMBtu | Million British thermal units (heating value of one decatherm of natural gas) |
MMcf | Million cubic feet (of natural gas) |
NEPA | National Environmental Policy Act of 1969, as amended |
NGA | The Natural Gas Act of 1938, as amended; the federal law regulating interstate natural gas pipeline and storage companies, among other things, codified beginning at 15 U.S.C. Section 717. |
NYMEX | New York Mercantile Exchange. An exchange which maintains a futures market for crude oil and natural gas. |
Open Season | A bidding procedure used by pipelines to allocate firm transportation or storage capacity among prospective shippers, in which all bids submitted during a defined time period are evaluated as if they had been submitted simultaneously. |
Precedent Agreement | An agreement between a pipeline company and a potential customer to sign a service agreement after specified events (called “conditions precedent”) happen, usually within a specified time. |
Proved developed reserves | Reserves that can be expected to be recovered through existing wells with existing equipment and operating methods. |
Proved undeveloped (PUD) reserves | Reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required to make these reserves productive. |
Reserves | The unproduced but recoverable oil and/or gas in place in a formation which has been proven by production. |
Revenue decoupling mechanism | A rate mechanism which adjusts customer rates to render a utility financially indifferent to throughput decreases resulting from conservation. |
S&P | Standard & Poor’s Rating Service |
SAR | Stock appreciation right |
Service agreement | The binding agreement by which the pipeline company agrees to provide service and the shipper agrees to pay for the service. |
Stock acquisitions | Investments in corporations |
VEBA | Voluntary Employees’ Beneficiary Association |
WNC | Weather normalization clause; a clause in utility rates which adjusts customer rates to allow a utility to recover its normal operating costs calculated at normal temperatures. If temperatures during the measured period are warmer than normal, customer rates are adjusted upward in order to recover projected operating costs. If temperatures during the measured period are colder than normal, customer rates are adjusted downward so that only the projected operating costs will be recovered. |
INDEX | Page | |
Item 3. Defaults Upon Senior Securities | • | |
Item 4. Mine Safety Disclosures | • | |
Item 5. Other Information | • | |
Three Months Ended December 31, | |||||||
(Thousands of Dollars, Except Per Common Share Amounts) | 2015 | 2014 | |||||
INCOME | |||||||
Operating Revenues | $ | 375,195 | $ | 523,909 | |||
Operating Expenses | |||||||
Purchased Gas | 42,068 | 127,091 | |||||
Operation and Maintenance | 112,692 | 112,582 | |||||
Property, Franchise and Other Taxes | 20,357 | 20,929 | |||||
Depreciation, Depletion and Amortization | 70,551 | 102,747 | |||||
Impairment of Oil and Gas Producing Properties | 435,451 | — | |||||
681,119 | 363,349 | ||||||
Operating Income (Loss) | (305,924 | ) | 160,560 | ||||
Other Income (Expense): | |||||||
Interest Income | 1,799 | 1,258 | |||||
Other Income | 2,418 | 1,183 | |||||
Interest Expense on Long-Term Debt | (30,372 | ) | (22,311 | ) | |||
Other Interest Expense | (1,380 | ) | (790 | ) | |||
Income (Loss) Before Income Taxes | (333,459 | ) | 139,900 | ||||
Income Tax Expense (Benefit) | (144,350 | ) | 55,160 | ||||
Net Income (Loss) Available for Common Stock | (189,109 | ) | 84,740 | ||||
EARNINGS REINVESTED IN THE BUSINESS | |||||||
Balance at Beginning of Period | 1,103,200 | 1,614,361 | |||||
914,091 | 1,699,101 | ||||||
Dividends on Common Stock | (33,472 | ) | (32,442 | ) | |||
Balance at December 31 | $ | 880,619 | $ | 1,666,659 | |||
Earnings Per Common Share: | |||||||
Basic: | |||||||
Net Income (Loss) Available for Common Stock | $ | (2.23 | ) | $ | 1.01 | ||
Diluted: | |||||||
Net Income (Loss) Available for Common Stock | $ | (2.23 | ) | $ | 1.00 | ||
Weighted Average Common Shares Outstanding: | |||||||
Used in Basic Calculation | 84,651,233 | 84,208,645 | |||||
Used in Diluted Calculation | 84,651,233 | 85,118,516 | |||||
Dividends Per Common Share: | |||||||
Dividends Declared | $ | 0.395 | $ | 0.385 |
Three Months Ended December 31, | ||||||||
(Thousands of Dollars) | 2015 | 2014 | ||||||
Net Income (Loss) Available for Common Stock | $ | (189,109 | ) | $ | 84,740 | |||
Other Comprehensive Income (Loss), Before Tax: | ||||||||
Unrealized Gain (Loss) on Securities Available for Sale Arising During the Period | (638 | ) | (412 | ) | ||||
Unrealized Gain (Loss) on Derivative Financial Instruments Arising During the Period | 65,372 | 243,829 | ||||||
Reclassification Adjustment for Realized (Gains) Losses on Derivative Financial Instruments in Net Income | (57,170 | ) | (24,265 | ) | ||||
Other Comprehensive Income (Loss), Before Tax | 7,564 | 219,152 | ||||||
Income Tax Expense (Benefit) Related to Unrealized Gain (Loss) on Securities Available for Sale Arising During the Period | (191 | ) | (160 | ) | ||||
Income Tax Expense (Benefit) Related to Unrealized Gain (Loss) on Derivative Financial Instruments Arising During the Period | 20,676 | 102,949 | ||||||
Reclassification Adjustment for Income Tax Benefit (Expense) on Realized Losses (Gains) from Derivative Financial Instruments in Net Income | (18,005 | ) | (10,089 | ) | ||||
Income Taxes – Net | 2,480 | 92,700 | ||||||
Other Comprehensive Income | 5,084 | 126,452 | ||||||
Comprehensive Income (Loss) | $ | (184,025 | ) | $ | 211,192 |
December 31, 2015 | September 30, 2015 | ||||||
(Thousands of Dollars) | |||||||
ASSETS | |||||||
Property, Plant and Equipment | $ | 9,311,376 | $ | 9,261,323 | |||
Less - Accumulated Depreciation, Depletion and Amortization | 4,428,593 | 3,929,428 | |||||
4,882,783 | 5,331,895 | ||||||
Current Assets | |||||||
Cash and Temporary Cash Investments | 36,329 | 113,596 | |||||
Hedging Collateral Deposits | 9,551 | 11,124 | |||||
Receivables – Net of Allowance for Uncollectible Accounts of $30,946 and $29,029, Respectively | 211,112 | 105,004 | |||||
Unbilled Revenue | 40,178 | 20,746 | |||||
Gas Stored Underground | 28,811 | 34,252 | |||||
Materials and Supplies - at average cost | 32,389 | 30,414 | |||||
Other Current Assets | 66,145 | 60,665 | |||||
424,515 | 375,801 | ||||||
Other Assets | |||||||
Recoverable Future Taxes | 172,205 | 168,214 | |||||
Unamortized Debt Expense | 2,085 | 2,218 | |||||
Other Regulatory Assets | 275,721 | 278,227 | |||||
Deferred Charges | 16,410 | 15,129 | |||||
Other Investments | 108,209 | 92,990 | |||||
Goodwill | 5,476 | 5,476 | |||||
Prepaid Post-Retirement Benefit Costs | 25,357 | 24,459 | |||||
Fair Value of Derivative Financial Instruments | 277,409 | 270,363 | |||||
Other | 162 | 167 | |||||
883,034 | 857,243 | ||||||
Total Assets | $ | 6,190,332 | $ | 6,564,939 |
December 31, 2015 | September 30, 2015 | ||||||
(Thousands of Dollars) | |||||||
CAPITALIZATION AND LIABILITIES | |||||||
Capitalization: | |||||||
Comprehensive Shareholders’ Equity | |||||||
Common Stock, $1 Par Value | |||||||
Authorized - 200,000,000 Shares; Issued And Outstanding – 84,739,068 Shares and 84,594,383 Shares, Respectively | $ | 84,739 | $ | 84,594 | |||
Paid in Capital | 748,867 | 744,274 | |||||
Earnings Reinvested in the Business | 880,619 | 1,103,200 | |||||
Accumulated Other Comprehensive Income | 98,456 | 93,372 | |||||
Total Comprehensive Shareholders’ Equity | 1,812,681 | 2,025,440 | |||||
Long-Term Debt, Net of Unamortized Discount and Debt Issuance Costs | 2,084,562 | 2,084,009 | |||||
Total Capitalization | 3,897,243 | 4,109,449 | |||||
Current and Accrued Liabilities | |||||||
Notes Payable to Banks and Commercial Paper | 31,400 | — | |||||
Current Portion of Long-Term Debt | — | — | |||||
Accounts Payable | 126,917 | 180,388 | |||||
Amounts Payable to Customers | 45,076 | 56,778 | |||||
Dividends Payable | 33,472 | 33,415 | |||||
Interest Payable on Long-Term Debt | 30,285 | 36,200 | |||||
Customer Advances | 23,425 | 16,236 | |||||
Customer Security Deposits | 16,757 | 16,490 | |||||
Other Accruals and Current Liabilities | 95,830 | 96,557 | |||||
Fair Value of Derivative Financial Instruments | 7,969 | 10,076 | |||||
411,131 | 446,140 | ||||||
Deferred Credits | |||||||
Deferred Income Taxes | 999,399 | 1,137,962 | |||||
Taxes Refundable to Customers | 94,468 | 89,448 | |||||
Unamortized Investment Tax Credit | 644 | 731 | |||||
Cost of Removal Regulatory Liability | 184,784 | 184,907 | |||||
Other Regulatory Liabilities | 113,187 | 108,617 | |||||
Pension and Other Post-Retirement Liabilities | 205,431 | 202,807 | |||||
Asset Retirement Obligations | 158,108 | 156,805 | |||||
Other Deferred Credits | 125,937 | 128,073 | |||||
1,881,958 | 2,009,350 | ||||||
Commitments and Contingencies | — | — | |||||
Total Capitalization and Liabilities | $ | 6,190,332 | $ | 6,564,939 |
Three Months Ended December 31, | |||||||
(Thousands of Dollars) | 2015 | 2014 | |||||
OPERATING ACTIVITIES | |||||||
Net Income (Loss) Available for Common Stock | $ | (189,109 | ) | $ | 84,740 | ||
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: | |||||||
Impairment of Oil and Gas Producing Properties | 435,451 | — | |||||
Depreciation, Depletion and Amortization | 70,551 | 102,747 | |||||
Deferred Income Taxes | (140,013 | ) | 33,207 | ||||
Excess Tax Benefits Associated with Stock-Based Compensation Awards | (226 | ) | (7,667 | ) | |||
Stock-Based Compensation | 960 | 3,078 | |||||
Other | 3,418 | 2,358 | |||||
Change in: | |||||||
Hedging Collateral Deposits | 1,573 | (10,734 | ) | ||||
Receivables and Unbilled Revenue | (31,150 | ) | (60,947 | ) | |||
Gas Stored Underground and Materials and Supplies | 3,466 | 9,386 | |||||
Other Current Assets | (5,254 | ) | (5,635 | ) | |||
Accounts Payable | (20,784 | ) | 19,378 | ||||
Amounts Payable to Customers | (11,702 | ) | 2,249 | ||||
Customer Advances | 7,189 | 1,431 | |||||
Customer Security Deposits | 267 | 630 | |||||
Other Accruals and Current Liabilities | (14,353 | ) | (6,416 | ) | |||
Other Assets | 885 | 2,142 | |||||
Other Liabilities | 2,904 | 19,132 | |||||
Net Cash Provided by Operating Activities | 114,073 | 189,079 | |||||
INVESTING ACTIVITIES | |||||||
Capital Expenditures | (186,437 | ) | (244,927 | ) | |||
Net Proceeds from Sale of Oil and Gas Producing Properties | 10,574 | — | |||||
Other | (15,756 | ) | (1,229 | ) | |||
Net Cash Used in Investing Activities | (191,619 | ) | (246,156 | ) | |||
FINANCING ACTIVITIES | |||||||
Changes in Notes Payable to Banks and Commercial Paper | 31,400 | 87,300 | |||||
Excess Tax Benefits Associated with Stock-Based Compensation Awards | 226 | 7,667 | |||||
Dividends Paid on Common Stock | (33,415 | ) | (32,400 | ) | |||
Net Proceeds from Issuance of Common Stock | 2,068 | 1,548 | |||||
Net Cash Provided by Financing Activities | 279 | 64,115 | |||||
Net Increase (Decrease) in Cash and Temporary Cash Investments | (77,267 | ) | 7,038 | ||||
Cash and Temporary Cash Investments at October 1 | 113,596 | 36,886 | |||||
Cash and Temporary Cash Investments at December 31 | $ | 36,329 | $ | 43,924 | |||
Supplemental Disclosure of Cash Flow Information | |||||||
Non-Cash Investing Activities: | |||||||
Non-Cash Capital Expenditures | $ | 93,983 | $ | 101,664 | |||
Receivable from Sale of Oil and Gas Producing Properties | $ | 94,364 | $ | — |
Gains and Losses on Derivative Financial Instruments | Gains and Losses on Securities Available for Sale | Funded Status of the Pension and Other Post-Retirement Benefit Plans | Total | |||||||||
Three Months Ended December 31, 2015 | ||||||||||||
Balance at October 1, 2015 | $ | 157,197 | $ | 5,969 | $ | (69,794 | ) | $ | 93,372 | |||
Other Comprehensive Gains and Losses Before Reclassifications | 44,696 | (447 | ) | — | 44,249 | |||||||
Amounts Reclassified From Other Comprehensive Income | (39,165 | ) | — | — | (39,165 | ) | ||||||
Balance at December 31, 2015 | $ | 162,728 | $ | 5,522 | $ | (69,794 | ) | $ | 98,456 | |||
Three Months Ended December 31, 2014 | ||||||||||||
Balance at October 1, 2014 | $ | 43,659 | $ | 8,382 | $ | (56,020 | ) | $ | (3,979 | ) | ||
Other Comprehensive Gains and Losses Before Reclassifications | 140,880 | (252 | ) | — | 140,628 | |||||||
Amounts Reclassified From Other Comprehensive Income | (14,176 | ) | — | — | (14,176 | ) | ||||||
Balance at December 31, 2014 | $ | 170,363 | $ | 8,130 | $ | (56,020 | ) | $ | 122,473 | |||
Details About Accumulated Other Comprehensive Income (Loss) Components | Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Statement Where Net Income (Loss) is Presented | |||||
Three Months Ended December 31, | |||||||
2015 | 2014 | ||||||
Gains (Losses) on Derivative Financial Instrument Cash Flow Hedges: | |||||||
Commodity Contracts | $56,327 | $20,036 | Operating Revenues | ||||
Commodity Contracts | 920 | 4,229 | Purchased Gas | ||||
Foreign Currency Contracts | (77 | ) | — | Operation and Maintenance Expense | |||
57,170 | 24,265 | Total Before Income Tax | |||||
(18,005 | ) | (10,089 | ) | Income Tax Expense | |||
$39,165 | $14,176 | Net of Tax |
At December 31, 2015 | At September 30, 2015 | ||||||
Prepayments | $ | 8,727 | $ | 10,743 | |||
Prepaid Property and Other Taxes | 15,143 | 13,709 | |||||
Federal Income Taxes Receivable | 7,120 | — | |||||
Fair Values of Firm Commitments | 16,618 | 15,775 | |||||
Regulatory Assets | 18,537 | 20,438 | |||||
$ | 66,145 | $ | 60,665 |
At December 31, 2015 | At September 30, 2015 | ||||||
Accrued Capital Expenditures | $ | 61,362 | $ | 53,652 | |||
Regulatory Liabilities | 4,695 | 5,346 | |||||
Reserve for Gas Replacement | 976 | — | |||||
Federal Income Taxes Payable | — | 5,686 | |||||
State Income Taxes Payable | 751 | 1,170 | |||||
Other | 28,046 | 30,703 | |||||
$ | 95,830 | $ | 96,557 |
Recurring Fair Value Measures | At fair value as of December 31, 2015 | ||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Netting Adjustments(1) | Total(1) | ||||||||||||||
Assets: | |||||||||||||||||||
Cash Equivalents – Money Market Mutual Funds | $ | 10,323 | $ | — | $ | — | $ | — | $ | 10,323 | |||||||||
Derivative Financial Instruments: | |||||||||||||||||||
Commodity Futures Contracts – Gas | 5,350 | — | — | (5,350 | ) | — | |||||||||||||
Over the Counter Swaps – Gas and Oil | — | 284,066 | — | (1,598 | ) | 282,468 | |||||||||||||
Foreign Currency Contacts | — | — | — | (5,059 | ) | (5,059 | ) | ||||||||||||
Other Investments: | |||||||||||||||||||
Balanced Equity Mutual Fund | 36,096 | — | — | — | 36,096 | ||||||||||||||
Fixed Income Mutual Fund | 21,980 | — | — | — | 21,980 | ||||||||||||||
Common Stock – Financial Services Industry | 4,179 | — | — | — | 4,179 | ||||||||||||||
Other Common Stock | 494 | — | — | — | 494 | ||||||||||||||
Hedging Collateral Deposits | 9,551 | — | — | — | 9,551 | ||||||||||||||
Total | $ | 87,973 | $ | 284,066 | $ | — | $ | (12,007 | ) | $ | 360,032 | ||||||||
Liabilities: | |||||||||||||||||||
Derivative Financial Instruments: | |||||||||||||||||||
Commodity Futures Contracts – Gas | $ | 11,677 | $ | — | $ | — | $ | (5,350 | ) | $ | 6,327 | ||||||||
Over the Counter Swaps – Gas and Oil | — | 3,240 | — | (1,598 | ) | 1,642 | |||||||||||||
Foreign Currency Contracts | — | 5,059 | — | (5,059 | ) | — | |||||||||||||
Total | $ | 11,677 | $ | 8,299 | $ | — | $ | (12,007 | ) | $ | 7,969 | ||||||||
Total Net Assets/(Liabilities) | $ | 76,296 | $ | 275,767 | $ | — | $ | — | $ | 352,063 |
Recurring Fair Value Measures | At fair value as of September 30, 2015 | ||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Netting Adjustments(1) | Total(1) | ||||||||||||||
Assets: | |||||||||||||||||||
Cash Equivalents – Money Market Mutual Funds | $ | 92,196 | $ | — | $ | — | $ | — | $ | 92,196 | |||||||||
Derivative Financial Instruments: | |||||||||||||||||||
Commodity Futures Contracts – Gas | 6,373 | — | — | (6,373 | ) | — | |||||||||||||
Over the Counter Swaps – Gas and Oil | — | 272,335 | 1,791 | (808 | ) | 273,318 | |||||||||||||
Foreign Currency Contracts | — | — | — | (2,955 | ) | (2,955 | ) | ||||||||||||
Other Investments: | |||||||||||||||||||
Balanced Equity Mutual Fund | 34,884 | — | — | — | 34,884 | ||||||||||||||
Fixed Income Mutual Fund | 8,004 | — | — | — | 8,004 | ||||||||||||||
Common Stock – Financial Services Industry | 4,318 | — | — | — | 4,318 | ||||||||||||||
Other Common Stock | 450 | — | — | — | 450 | ||||||||||||||
Hedging Collateral Deposits | 11,124 | — | — | — | 11,124 | ||||||||||||||
Total | $ | 157,349 | $ | 272,335 | $ | 1,791 | $ | (10,136 | ) | $ | 421,339 | ||||||||
Liabilities: | |||||||||||||||||||
Derivative Financial Instruments: | |||||||||||||||||||
Commodity Futures Contracts – Gas | $ | 15,276 | $ | — | $ | — | $ | (6,373 | ) | $ | 8,903 | ||||||||
Over the Counter Swaps – Gas and Oil | — | 1,981 | — | (808 | ) | 1,173 | |||||||||||||
Foreign Currency Contracts | — | 2,955 | — | (2,955 | ) | — | |||||||||||||
Total | $ | 15,276 | $ | 4,936 | $ | — | $ | (10,136 | ) | $ | 10,076 | ||||||||
Total Net Assets/(Liabilities) | $ | 142,073 | $ | 267,399 | $ | 1,791 | $ | — | $ | 411,263 |
(1) | Netting Adjustments represent the impact of legally-enforceable master netting arrangements that allow the Company to net gain and loss positions held with the same counterparties. The net asset or net liability for each counterparty is recorded as an asset or liability on the Company’s balance sheet. |
Fair Value Measurements Using Unobservable Inputs (Level 3) | ||||||||||||||||
(Thousands of Dollars) | Total Gains/Losses | |||||||||||||||
October 1, 2015 | Gains/Losses Realized and Included in Earnings | Gains/Losses Unrealized and Included in Other Comprehensive Income (Loss) | Transfer In/Out of Level 3 | December 31, 2015 | ||||||||||||
Derivative Financial Instruments(2) | $ | 1,791 | $ | (2,002 | ) | (1) | $ | 211 | $ | — | $ | — |
(1) | Amounts are reported in Operating Revenues in the Consolidated Statement of Income for the three months ended December 31, 2015. |
(2) | Derivative Financial Instruments are shown on a net basis. |
Fair Value Measurements Using Unobservable Inputs (Level 3) | ||||||||||||||||
(Thousands of Dollars) | Total Gains/Losses | |||||||||||||||
October 1, 2014 | Gains/Losses Realized and Included in Earnings | Gains/Losses Unrealized and Included in Other Comprehensive Income (Loss) | Transfer In/Out of Level 3 | December 31, 2014 | ||||||||||||
Derivative Financial Instruments(2) | $ | 1,368 | $ | (3,855 | ) | (1) | $ | 7,824 | $ | — | $ | 5,337 |
(1) | Amounts are reported in Operating Revenues in the Consolidated Statement of Income for the three months ended December 31, 2014. |
(2) | Derivative Financial Instruments are shown on a net basis. |
December 31, 2015 | September 30, 2015 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Long-Term Debt | $ | 2,084,562 | $ | 1,970,742 | $ | 2,084,009 | $ | 2,129,558 |
Commodity | Units | ||
Natural Gas | 159.6 | Bcf (short positions) | |
Natural Gas | 3.0 | Bcf (long positions) | |
Crude Oil | 1,815,000 | Bbls (short positions) |
The Effect of Derivative Financial Instruments on the Statement of Financial Performance for the | ||||||||||||||||||||
Three Months Ended December 31, 2015 and 2014 (Thousands of Dollars) | ||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Amount of Derivative Gain or (Loss) Recognized in Other Comprehensive Income (Loss) on the Consolidated Statement of Comprehensive Income (Loss) (Effective Portion) for the Three Months Ended December 31, | Location of Derivative Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheet into the Consolidated Statement of Income (Effective Portion) | Amount of Derivative Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheet into the Consolidated Statement of Income (Effective Portion) for the Three Months Ended December 31, | Location of Derivative Gain or (Loss) Recognized in the Consolidated Statement of Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Derivative Gain or (Loss) Recognized in the Consolidated Statement of Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) for the Three Months Ended December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||
Commodity Contracts | $ | 65,341 | $ | 240,023 | Operating Revenue | $ | 56,327 | $ | 20,036 | Operating Revenue | $ | 137 | $ | 1,460 | ||||||
Commodity Contracts | $ | 2,213 | $ | 3,806 | Purchased Gas | $ | 920 | $ | 4,229 | Not Applicable | $ | — | $ | — | ||||||
Foreign Currency Contracts | $ | (2,182 | ) | $ | — | Operation and Maintenance Expense | $ | (77 | ) | $ | — | Not Applicable | $ | — | $ | — | ||||
Total | $ | 65,372 | $ | 243,829 | $ | 57,170 | $ | 24,265 | $ | 137 | $ | 1,460 |
Derivatives in Fair Value Hedging Relationships | Location of Gain or (Loss) on Derivative and Hedged Item Recognized in the Consolidated Statement of Income | Amount of Gain or (Loss) on Derivative Recognized in the Consolidated Statement of Income for the Three Months Ended December 31, 2015 (In Thousands) | Amount of Gain or (Loss) on the Hedged Item Recognized in the Consolidated Statement of Income for the Three Months Ended December 31, 2015 (In Thousands) | ||||
Commodity Contracts | Operating Revenues | $ | 3,920 | $ | (3,920 | ) | |
Commodity Contracts | Purchased Gas | $ | (61 | ) | $ | 61 | |
$ | 3,859 | $ | (3,859 | ) |
Three Months Ended December 31, | |||||||
2015 | 2014 | ||||||
Current Income Taxes | |||||||
Federal | $ | (8,227 | ) | $ | 16,528 | ||
State | 3,890 | 5,425 | |||||
Deferred Income Taxes | |||||||
Federal | (97,705 | ) | 26,193 | ||||
State | (42,308 | ) | 7,014 | ||||
(144,350 | ) | 55,160 | |||||
Deferred Investment Tax Credit | (87 | ) | (104 | ) | |||
Total Income Taxes | $ | (144,437 | ) | $ | 55,056 | ||
Presented as Follows: | |||||||
Other Income | (87 | ) | (104 | ) | |||
Income Tax Expense (Benefit) | (144,350 | ) | 55,160 | ||||
Total Income Taxes | $ | (144,437 | ) | $ | 55,056 |
Three Months Ended December 31, | |||||||
2015 | 2014 | ||||||
U.S. Income (Loss) Before Income Taxes | $ | (333,546 | ) | $ | 139,796 | ||
Income Tax Expense (Benefit), Computed at U.S. Federal Statutory Rate of 35% | $ | (116,741 | ) | $ | 48,929 | ||
State Income Taxes (Benefit) | (24,972 | ) | 8,085 | ||||
Miscellaneous | (2,724 | ) | (1,958 | ) | |||
Total Income Taxes | $ | (144,437 | ) | $ | 55,056 |
Quarter Ended December 31, 2015 (Thousands) | |||||||||
Exploration and Production | Pipeline and Storage | Gathering | Utility | Energy Marketing | Total Reportable Segments | All Other | Corporate and Intersegment Eliminations | Total Consolidated | |
Revenue from External Customers | $151,965 | $53,354 | $125 | $143,848 | $24,984 | $374,276 | $706 | $213 | $375,195 |
Intersegment Revenues | $— | $22,183 | $18,640 | $3,664 | $311 | $44,798 | $— | $(44,798) | $— |
Segment Profit: Net Income (Loss) | $(237,086) | $21,276 | $4,921 | $18,606 | $1,223 | $(191,060) | $189 | $1,762 | $(189,109) |
(Thousands) | Exploration and Production | Pipeline and Storage | Gathering | Utility | Energy Marketing | Total Reportable Segments | All Other | Corporate and Intersegment Eliminations | Total Consolidated |
Segment Assets: | |||||||||
At December 31, 2015 | $2,103,633 | $1,597,432 | $467,220 | $1,930,977 | $87,870 | $6,187,132 | $78,293 | $(75,093) | $6,190,332 |
At September 30, 2015 | $2,439,801 | $1,590,525 | $444,358 | $1,934,730 | $90,676 | $6,500,090 | $77,350 | $(12,501) | $6,564,939 |
Quarter Ended December 31, 2014 (Thousands) | |||||||||
Exploration and Production | Pipeline and Storage | Gathering | Utility | Energy Marketing | Total Reportable Segments | All Other | Corporate and Intersegment Eliminations | Total Consolidated | |
Revenue from External Customers | $204,665 | $51,745 | $146 | $210,073 | $56,166 | $522,795 | $884 | $230 | $523,909 |
Intersegment Revenues | $— | $21,461 | $24,428 | $4,534 | $206 | $50,629 | $— | $(50,629) | $— |
Segment Profit: Net Income (Loss) | $26,720 | $20,778 | $11,623 | $22,594 | $2,826 | $84,541 | $(6) | $205 | $84,740 |
Retirement Plan | Other Post-Retirement Benefits | ||||||||||||
Three Months Ended December 31, | 2015 | 2014 | 2015 | 2014 | |||||||||
Service Cost | $ | 2,928 | $ | 3,012 | $ | 583 | $ | 673 | |||||
Interest Cost | 10,579 | 10,304 | 5,096 | 4,821 | |||||||||
Expected Return on Plan Assets | (14,842 | ) | (14,904 | ) | (7,883 | ) | (8,522 | ) | |||||
Amortization of Prior Service Cost (Credit) | 308 | 46 | (228 | ) | (478 | ) | |||||||
Amortization of Losses | 8,062 | 9,032 | 1,382 | 1,037 | |||||||||
Net Amortization and Deferral for Regulatory Purposes (Including Volumetric Adjustments) (1) | 1,906 | 1,292 | 4,121 | 4,920 | |||||||||
Net Periodic Benefit Cost | $ | 8,941 | $ | 8,782 | $ | 3,071 | $ | 2,451 |
(1) | The Company’s policy is to record retirement plan and other post-retirement benefit costs in the Utility segment on a volumetric basis to reflect the fact that the Utility segment experiences higher throughput of natural gas in the winter months and lower throughput of natural gas in the summer months. |
Ceiling Testing Sensitivity to Commodity Price Changes | |||||||||||
(Millions) | $0.25/MMBtu Decrease in Natural Gas Prices | $5.00/Bbl Decrease in Crude Oil Prices | $0.25/MMBtu Decrease in Natural Gas Prices and $5.00/Bbl Decrease in Crude Oil Prices | ||||||||
Calculated Impairment under Sensitivity Analysis | $ | 381.2 | $ | 293.3 | $ | 421.9 | |||||
Actual Impairment Recorded at December 31, 2015 | 252.6 | 252.6 | 252.6 | ||||||||
Additional Impairment | $ | 128.6 | $ | 40.7 | $ | 169.3 |
Three Months Ended December 31, | |||||||||
(Thousands) | 2015 | 2014 | Increase (Decrease) | ||||||
Exploration and Production | $ | (237,086 | ) | $ | 26,720 | $ | (263,806 | ) | |
Pipeline and Storage | 21,276 | 20,778 | 498 | ||||||
Gathering | 4,921 | 11,623 | (6,702 | ) | |||||
Utility | 18,606 | 22,594 | (3,988 | ) | |||||
Energy Marketing | 1,223 | 2,826 | (1,603 | ) | |||||
Total Reportable Segments | (191,060 | ) | 84,541 | (275,601 | ) | ||||
All Other | 189 | (6 | ) | 195 | |||||
Corporate | 1,762 | 205 | 1,557 | ||||||
Total Consolidated | $ | (189,109 | ) | $ | 84,740 | $ | (273,849 | ) |
Three Months Ended December 31, | |||||||||
(Thousands) | 2015 | 2014 | Increase (Decrease) | ||||||
Gas (after Hedging) | $ | 106,174 | $ | 141,657 | $ | (35,483 | ) | ||
Oil (after Hedging) | 44,730 | 60,166 | (15,436 | ) | |||||
Gas Processing Plant | 636 | 1,058 | (422 | ) | |||||
Other | 425 | 1,784 | (1,359 | ) | |||||
$ | 151,965 | $ | 204,665 | $ | (52,700 | ) |
Three Months Ended December 31, | ||||||
2015 | 2014 | Increase (Decrease) | ||||
Gas Production (MMcf) | ||||||
Appalachia | 32,788 | 42,798 | (10,010 | ) | ||
West Coast | 783 | 773 | 10 | |||
Total Production | 33,571 | 43,571 | (10,000 | ) | ||
Oil Production (Mbbl) | ||||||
Appalachia | 6 | 9 | (3 | ) | ||
West Coast | 742 | 762 | (20 | ) | ||
Total Production | 748 | 771 | (23 | ) |
Three Months Ended December 31, | |||||||||
2015 | 2014 | Increase (Decrease) | |||||||
Average Gas Price/Mcf | |||||||||
Appalachia | $ | 1.98 | $ | 2.95 | $ | (0.97 | ) | ||
West Coast | $ | 3.65 | $ | 5.61 | $ | (1.96 | ) | ||
Weighted Average | $ | 2.02 | $ | 3.00 | $ | (0.98 | ) | ||
Weighted Average After Hedging | $ | 3.16 | $ | 3.25 | $ | (0.09 | ) | ||
Average Oil Price/Bbl | |||||||||
Appalachia | $ | 39.78 | $ | 75.56 | $ | (35.78 | ) | ||
West Coast | $ | 36.05 | $ | 66.86 | $ | (30.81 | ) | ||
Weighted Average | $ | 36.08 | $ | 66.96 | $ | (30.88 | ) | ||
Weighted Average After Hedging | $ | 59.76 | $ | 78.09 | $ | (18.33 | ) |
Three Months Ended December 31, | |||||||||
(Thousands) | 2015 | 2014 | Increase (Decrease) | ||||||
Firm Transportation | $ | 56,505 | $ | 54,193 | $ | 2,312 | |||
Interruptible Transportation | 975 | 747 | 228 | ||||||
57,480 | 54,940 | 2,540 | |||||||
Firm Storage Service | 17,278 | 17,489 | (211 | ) | |||||
Interruptible Storage Service | 50 | 1 | 49 | ||||||
Other | 729 | 776 | (47 | ) | |||||
$ | 75,537 | $ | 73,206 | $ | 2,331 |
Three Months Ended December 31, | ||||||
(MMcf) | 2015 | 2014 | Increase (Decrease) | |||
Firm Transportation | 175,832 | 186,322 | (10,490 | ) | ||
Interruptible Transportation | 5,631 | 2,102 | 3,529 | |||
181,463 | 188,424 | (6,961 | ) |
Three Months Ended December 31, | |||||||||
(Thousands) | 2015 | 2014 | Increase (Decrease) | ||||||
Gathering | $ | 18,640 | $ | 24,428 | $ | (5,788 | ) | ||
Processing and Other Revenues | 125 | 146 | (21 | ) | |||||
$ | 18,765 | $ | 24,574 | $ | (5,809 | ) |
Three Months Ended December 31, | ||||||
2015 | 2014 | Increase (Decrease) | ||||
Gathered Volume - (MMcf) | 33,800 | 44,872 | (11,072 | ) |
Three Months Ended December 31, | |||||||||
(Thousands) | 2015 | 2014 | Increase (Decrease) | ||||||
Retail Sales Revenues: | |||||||||
Residential | $ | 98,451 | $ | 146,686 | $ | (48,235 | ) | ||
Commercial | 12,105 | 18,297 | (6,192 | ) | |||||
Industrial | 490 | 751 | (261 | ) | |||||
111,046 | 165,734 | (54,688 | ) | ||||||
Transportation | 33,902 | 39,888 | (5,986 | ) | |||||
Off-System Sales | — | 5,924 | (5,924 | ) | |||||
Other | 2,564 | 3,061 | (497 | ) | |||||
$ | 147,512 | $ | 214,607 | $ | (67,095 | ) |
Three Months Ended December 31, | ||||||
(MMcf) | 2015 | 2014 | Increase (Decrease) | |||
Retail Sales: | ||||||
Residential | 13,133 | 16,467 | (3,334 | ) | ||
Commercial | 1,827 | 2,284 | (457 | ) | ||
Industrial | 66 | 89 | (23 | ) | ||
15,026 | 18,840 | (3,814 | ) | |||
Transportation | 17,615 | 20,949 | (3,334 | ) | ||
Off-System Sales | — | 1,669 | (1,669 | ) | ||
32,641 | 41,458 | (8,817 | ) |
Three Months Ended December 31, | Percent Colder (Warmer) Than | |||||||||
Normal | 2015 | 2014 | Normal(1) | Prior Year(1) | ||||||
Buffalo | 2,253 | 1,677 | 2,136 | (25.6 | )% | (21.5 | )% | |||
Erie | 2,044 | 1,484 | 1,991 | (27.4 | )% | (25.5 | )% | |||
(1) | Percents compare actual 2015 degree days to normal degree days and actual 2015 degree days to actual 2014 degree days. |
Three Months Ended December 31, | |||||||||
(Thousands) | 2015 | 2014 | Increase (Decrease) | ||||||
Natural Gas (after Hedging) | $ | 25,196 | $ | 56,330 | $ | (31,134 | ) | ||
Other | 99 | 42 | 57 | ||||||
$ | 25,295 | $ | 56,372 | $ | (31,077 | ) |
Three Months Ended December 31, | ||||||
2015 | 2014 | Increase (Decrease) | ||||
Natural Gas – (MMcf) | 10,098 | 12,589 | (2,491 | ) |
Total Expenditures for Long-Lived Assets | |||||||||||
Three Months Ended December 31, | 2015 | 2014 | Increase(Decrease) | ||||||||
(Millions) | |||||||||||
Exploration and Production: | |||||||||||
Capital Expenditures | $ | 88.1 | (1) | $ | 157.7 | (2) | $ | (69.6 | ) | ||
Pipeline and Storage: | |||||||||||
Capital Expenditures | 31.6 | (1) | 16.0 | (2) | 15.6 | ||||||
Gathering: | |||||||||||
Capital Expenditures | 21.8 | (1) | 15.0 | (2) | 6.8 | ||||||
Utility: | |||||||||||
Capital Expenditures | 19.9 | (1) | 21.2 | (2) | (1.3 | ) | |||||
All Other: | |||||||||||
Capital Expenditures | 0.1 | (1) | 0.1 | (2) | — | ||||||
$ | 161.5 | $ | 210.0 | $ | (48.5 | ) |
(1) | At December 31, 2015, capital expenditures for the Exploration and Production segment, the Pipeline and Storage segment, the Gathering segment and the Utility segment include $43.7 million, $19.0 million, $18.8 million and $12.5 million, respectively, of non-cash capital expenditures. At September 30, 2015, capital expenditures for the Exploration and Production segment, the Pipeline and Storage segment, the Gathering segment and the Utility segment included $46.2 million, $33.9 million, $22.4 million and $16.5 million, respectively, of non-cash capital expenditures. |
(2) | At December 31, 2014, capital expenditures for the Exploration and Production segment, the Pipeline and Storage segment, the Gathering segment and the Utility segment included $82.3 million, $3.0 million, $11.0 million and $5.4 million, respectively, of non-cash capital expenditures. At September 30, 2014, capital expenditures for the Exploration and Production segment, the Pipeline and Storage segment, the Gathering segment and the Utility segment included $80.1 million, $28.1 million, $20.1 million and $8.3 million, respectively, of non-cash capital expenditures. |
1. | Impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; |
2. | Changes in the price of natural gas or oil; |
3. | Financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; |
4. | Delays or changes in costs or plans with respect to Company projects or related projects of other companies, including difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; |
5. | Factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including among others geology, lease availability, title disputes, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and |
6. | Changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; |
7. | Governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design and retained natural gas), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; |
8. | Changes in price differential between similar quantities of natural gas or oil at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; |
9. | Other changes in price differentials between similar quantities of natural gas or oil having different quality, heating value, hydrocarbon mix or delivery date; |
10. | The cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; |
11. | Uncertainty of oil and gas reserve estimates; |
12. | Significant differences between the Company’s projected and actual production levels for natural gas or oil; |
13. | Changes in demographic patterns and weather conditions; |
14. | Changes in the availability, price or accounting treatment of derivative financial instruments; |
15. | Changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; |
16. | The creditworthiness or performance of the Company’s key suppliers, customers and counterparties; |
17. | Economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities, acts of war, cyber attacks or pest infestation; |
18. | Significant differences between the Company’s projected and actual capital expenditures and operating expenses; |
19. | Changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; |
20. | Increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; or |
21. | Increasing costs of insurance, changes in coverage and the ability to obtain insurance. |
Period | Total Number of Shares Purchased (a) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Share Repurchase Plans or Programs | Maximum Number of Shares That May Yet Be Purchased Under Share Repurchase Plans or Programs (b) | |
Oct. 1 - 31, 2015 | 354 | $50.24 | — | 6,971,019 | |
Nov. 1 - 30, 2015 | — | N/A | — | 6,971,019 | |
Dec. 1 - 31, 2015 | 35,734 | $41.25 | — | 6,971,019 | |
Total | 36,088 | $41.34 | — | 6,971,019 |
(a) | Represents shares of common stock of the Company tendered to the Company by holders of stock options, SARs, restricted stock units or shares of restricted stock for the payment of option exercise prices or applicable withholding taxes. During the quarter ended December 31, 2015, the Company did not purchase any shares of its common stock pursuant to its publicly announced share repurchase program. |
(b) | In September 2008, the Company’s Board of Directors authorized the repurchase of eight million shares of the Company’s common stock. The repurchase program has no expiration date. The Company, however, stopped repurchasing shares after September 17, 2008. Since that time, the Company has increased its emphasis on Marcellus Shale development and pipeline expansion. As such, the Company does not anticipate repurchasing any shares in the near future. |
Exhibit Number | Description of Exhibit | |
10.1 | Form of Award Notice for Return on Capital Performance Shares under the National Fuel Gas Company 2010 Equity Compensation Plan. | |
10.2 | Form of Award Notice for Total Shareholder Return Performance Shares under the National Fuel Gas Company 2010 Equity Compensation Plan. | |
10.3 | Form of Award Notice for Restricted Stock Units under the National Fuel Gas Company 2010 Equity Compensation Plan. | |
12 | Statements regarding Computation of Ratios: Ratio of Earnings to Fixed Charges for the Twelve Months Ended December 31, 2015 and the Fiscal Years Ended September 30, 2012 through 2015. | |
31.1 | Written statements of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act. | |
31.2 | Written statements of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act. | |
32•• | Certification furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
99 | National Fuel Gas Company Consolidated Statements of Income for the Twelve Months Ended December 31, 2015 and 2014. | |
101 | Interactive data files submitted pursuant to Regulation S-T: (i) the Consolidated Statements of Income and Earnings Reinvested in the Business for the three months ended December 31, 2015 and 2014, (ii) the Consolidated Statements of Comprehensive Income for the three months ended December 31, 2015 and 2014, (iii) the Consolidated Balance Sheets at December 31, 2015 and September 30, 2015, (iv) the Consolidated Statements of Cash Flows for the three months ended December 31, 2015 and 2014 and (v) the Notes to Condensed Consolidated Financial Statements. |
NATIONAL FUEL GAS COMPANY | |
(Registrant) | |
/s/ D. P. Bauer | |
D. P. Bauer | |
Treasurer and Principal Financial Officer | |
/s/ K. M. Camiolo | |
K. M. Camiolo | |
Controller and Principal Accounting Officer |
(A) | the remainder of the Company’s rank within the Report Group for the Performance Cycle (measured lowest to highest) based on its Total Return on Capital for the Performance Cycle, minus one (1), |
(B) | the number of companies (excluding the Company) in the Report Group for that Performance Cycle. |
Company’s Percentile Ranking | Percentage of Target Opportunity Paid |
< 45th | 0% |
45th | 50% |
60th | 100% |
75th | 150% |
100th | 200% |
NATIONAL FUEL GAS COMPANY | ||
By: | ||
[Name] | ||
[Title] |
AGREED TO AND ACCEPTED | |
this _____ day of _________________, [year] | |
By: | |
Grantee |
(A) | the remainder of the Company’s rank within the Report Group for the Performance Cycle (measured lowest to highest) based on its Three-Year Total Shareholder Return for the Performance Cycle, minus one (1), |
(B) | the number of companies (excluding the Company) in the Report Group for that Performance Cycle. |
Company’s Percentile Ranking | Percentage of Target Opportunity Paid |
30th or below | 0% |
40th | 50% |
50th | 100% |
70th | 150% |
90th or above | 200% |
NATIONAL FUEL GAS COMPANY | ||
By: | ||
[Name] | ||
[Title] |
AGREED TO AND ACCEPTED | |
this _____ day of _________________, [year] | |
By: | |
Grantee |
NATIONAL FUEL GAS COMPANY | ||
By: | ||
[Name] | ||
[Title] |
AGREED TO AND ACCEPTED | |
this _____ day of _________________, [year] | |
By: | |
Grantee |
For the Twelve Months Ended | Fiscal Year Ended September 30, | ||||||||||||||
December 31, 2015 | 2015 | 2014 | 2013 | 2012 | |||||||||||
EARNINGS: | |||||||||||||||
Net Income (Loss) Available for Common Stock | $ | (653,276 | ) | $ | (379,427 | ) | $ | 299,413 | $ | 260,001 | $ | 220,077 | |||
Plus Income Tax Expense (Benefit) | (518,646 | ) | (319,136 | ) | 189,614 | 172,758 | 150,554 | ||||||||
Less Investment Tax Credit (A) | (397 | ) | (414 | ) | (434 | ) | (426 | ) | (581 | ) | |||||
(Less Income) Plus Loss from Unconsolidated Subsidiaries | — | — | (397 | ) | 204 | 1,442 | |||||||||
Plus Distributions from Unconsolidated Subsidiaries | — | — | — | — | — | ||||||||||
Plus Interest Expense on Long-Term Debt | 103,977 | 95,916 | 90,194 | 90,273 | 82,002 | ||||||||||
Plus Other Interest Expense | 4,144 | 3,555 | 4,083 | 3,838 | 4,238 | ||||||||||
Less Amortization of Loss on Reacquired Debt | (529 | ) | (529 | ) | (529 | ) | (721 | ) | (1,093 | ) | |||||
Plus (Less) Allowance for Borrowed Funds Used in Construction | 2,345 | 1,964 | 900 | 827 | 1,231 | ||||||||||
Plus (Less) Other Capitalized Interest | 2,085 | 4,191 | 3,560 | 1,801 | 2,992 | ||||||||||
Plus Rentals (B) | 13,301 | 13,866 | 13,700 | 14,204 | 12,958 | ||||||||||
$ | (1,046,996 | ) | $ | (580,014 | ) | $ | 600,104 | $ | 542,759 | $ | 473,820 | ||||
FIXED CHARGES: | |||||||||||||||
Interest & Amortization of Premium and Discount of Funded Debt | $ | 103,977 | $ | 95,916 | $ | 90,194 | $ | 90,273 | $ | 82,002 | |||||
Plus Other Interest Expense | 4,144 | 3,555 | 4,083 | 3,838 | 4,238 | ||||||||||
Less Amortization of Loss on Reacquired Debt | (529 | ) | (529 | ) | (529 | ) | (721 | ) | (1,093 | ) | |||||
Plus (Less) Allowance for Borrowed Funds Used in Construction | 2,345 | 1,964 | 900 | 827 | 1,231 | ||||||||||
Plus (Less) Other Capitalized Interest | 2,085 | 4,191 | 3,560 | 1,801 | 2,992 | ||||||||||
Plus Rentals (B) | 13,301 | 13,866 | 13,700 | 14,204 | 12,958 | ||||||||||
$ | 125,323 | $ | 118,963 | $ | 111,908 | $ | 110,222 | $ | 102,328 | ||||||
RATIO OF EARNINGS TO FIXED CHARGES | (D) | (C) | 5.36 | 4.92 | 4.63 |
(A) | Investment Tax Credit is included in Other Income. |
(B) | Rentals shown above represent the portion of all rentals (other than delay rentals) deemed representative of the interest factor. |
(C) | The ratio coverage for the fiscal year ended September 30, 2015 was less than 1:1. The Company would have needed to generate additional earnings of $698,977 to achieve a coverage of 1:1 for the fiscal year ended September 30, 2015. |
(D) | The ratio coverage for the twelve months ended December 31, 2015 was less than 1:1. The Company would have needed to generate additional earnings of $1,172,319 to achieve a coverage of 1:1 for the twelve months ended December 31, 2015. |
/s/ R. J. Tanski |
R. J. Tanski |
President and Chief Executive Officer |
/s/ D. P. Bauer |
D. P. Bauer |
Treasurer and Principal Financial Officer |
Exhibit 99 | |||||||
NATIONAL FUEL GAS | |||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||
(UNAUDITED) | |||||||
Twelve Months Ended | |||||||
December 31, | |||||||
(Thousands of Dollars) | 2015 | 2014 | |||||
INCOME | |||||||
Operating Revenues | $ | 1,612,199 | $ | 2,086,918 | |||
Operating Expenses | |||||||
Purchased Gas | 264,962 | 565,323 | |||||
Operation and Maintenance | 470,113 | 467,814 | |||||
Property, Franchise and Other Taxes | 88,991 | 90,713 | |||||
Depreciation, Depletion and Amortization | 303,963 | 393,414 | |||||
Impairment of Oil and Gas Producing Properties | 1,561,709 | — | |||||
2,689,738 | 1,517,264 | ||||||
Operating Income (Loss) | (1,077,539 | ) | 569,654 | ||||
Other Income (Expense): | |||||||
Interest Income | 4,464 | 4,725 | |||||
Other Income | 9,274 | 10,416 | |||||
Interest Expense on Long-Term Debt | (103,977 | ) | (89,620 | ) | |||
Other Interest Expense | (4,144 | ) | (3,925 | ) | |||
Income (Loss) Before Income Taxes | (1,171,922 | ) | 491,250 | ||||
Income Tax Expense (Benefit) | (518,646 | ) | 189,349 | ||||
Net Income (Loss) Available for Common Stock | $ | (653,276 | ) | $ | 301,901 | ||
Earnings Per Common Share: | |||||||
Basic: | |||||||
Net Income (Loss) Available for Common Stock | $ | (7.73 | ) | $ | 3.59 | ||
Diluted: | |||||||
Net Income (Loss) Available for Common Stock | $ | (7.73 | ) | $ | 3.55 | ||
Weighted Average Common Shares Outstanding: | |||||||
Used in Basic Calculation | 84,499,299 | 84,056,263 | |||||
Used in Diluted Calculation | 84,499,299 | 85,013,301 |
Document And Entity Information - shares |
3 Months Ended | |
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Dec. 31, 2015 |
Jan. 31, 2016 |
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Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | NATIONAL FUEL GAS CO | |
Entity Central Index Key | 0000070145 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 84,790,295 | |
Trading Symbol | nfg |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Sep. 30, 2015 |
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Statement of Financial Position [Abstract] | ||
Receivables, Allowance for Uncollectible Accounts | $ 30,946 | $ 29,029 |
Common Stock, Par Value | $ 1 | $ 1 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares Issued | 84,739,068 | 84,594,383 |
Common Stock, Shares Outstanding | 84,739,068 | 84,594,383 |
Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
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Dec. 31, 2015 |
Dec. 31, 2014 |
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OPERATING ACTIVITIES | ||
Net Income (Loss) Available for Common Stock | $ (189,109) | $ 84,740 |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: | ||
Impairment of Oil and Gas Producing Properties | 435,451 | 0 |
Depreciation, Depletion and Amortization | 70,551 | 102,747 |
Deferred Income Taxes | (140,013) | 33,207 |
Excess Tax Benefits Associated with Stock-Based Compensation Awards | (226) | (7,667) |
Stock-Based Compensation | 960 | 3,078 |
Other | 3,418 | 2,358 |
Change in: | ||
Hedging Collateral Deposits | 1,573 | (10,734) |
Receivables and Unbilled Revenue | (31,150) | (60,947) |
Gas Stored Underground and Materials and Supplies | 3,466 | 9,386 |
Other Current Assets | (5,254) | (5,635) |
Accounts Payable | (20,784) | 19,378 |
Amounts Payable to Customers | (11,702) | 2,249 |
Customer Advances | 7,189 | 1,431 |
Customer Security Deposits | 267 | 630 |
Other Accruals and Current Liabilities | (14,353) | (6,416) |
Other Assets | 885 | 2,142 |
Other Liabilities | 2,904 | 19,132 |
Net Cash Provided by Operating Activities | 114,073 | 189,079 |
INVESTING ACTIVITIES | ||
Capital Expenditures | (186,437) | (244,927) |
Net Proceeds from Sale of Oil and Gas Producing Properties | 10,574 | 0 |
Other | (15,756) | (1,229) |
Net Cash Used in Investing Activities | (191,619) | (246,156) |
Financing Activities | ||
Changes in Notes Payable to Banks and Commercial Paper | 31,400 | 87,300 |
Excess Tax Benefits Associated with Stock-Based Compensation Awards | 226 | 7,667 |
Dividends Paid on Common Stock | (33,415) | (32,400) |
Net Proceeds from Issuance of Common Stock | 2,068 | 1,548 |
Net Cash Provided by Financing Activities | 279 | 64,115 |
Net Increase (Decrease) in Cash and Temporary Cash Investments | (77,267) | 7,038 |
Cash and Temporary Cash Investments at October 1 | 113,596 | 36,886 |
Cash and Temporary Cash Investments at December 31 | 36,329 | 43,924 |
Supplemental Disclosure of Cash Flow Information, Non-Cash Investing Activities: | ||
Non-Cash Capital Expenditures | 93,983 | 101,664 |
Receivable from Sale of Oil and Gas Producing Properties | $ 94,364 | $ 0 |
Summary Of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policies | 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 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. Reclassification. Due to the adoption of the authoritative guidance regarding the presentation of deferred income taxes, certain prior year amounts have been reclassified to conform with current year presentation. The Company reclassified Deferred Income Taxes of $137.2 million previously shown as Current Assets to Deferred Income Taxes shown as Deferred Credits on the Consolidated Balance Sheet at September 30, 2015. 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 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, 2015, 2014 and 2013 that are included in the Company's 2015 Form 10-K. The consolidated financial statements for the year ended September 30, 2016 will be audited by the Company's independent registered public accounting firm after the end of the fiscal year. The earnings for the three months ended December 31, 2015 should not be taken as a prediction of earnings for the entire fiscal year ending September 30, 2016. Most of the business of the Utility and Energy Marketing segments is seasonal in nature and is influenced by weather conditions. Due to the seasonal nature of the heating business in the Utility and Energy Marketing segments, earnings during the winter months normally represent a substantial part of the earnings that those segments are expected to achieve for the entire fiscal year. The Company’s business segments are discussed more fully in Note 7 – Business Segment Information. Consolidated Statement of Cash Flows. For purposes of the Consolidated Statement of Cash Flows, the Company considers all highly liquid debt instruments purchased with a maturity of generally three months or less to be cash equivalents. Hedging Collateral Deposits. This is an account title for cash held in margin accounts funded by the Company to serve as collateral for hedging positions. In accordance with its accounting policy, the Company does not offset hedging collateral deposits paid or received against related derivative financial instruments liability or asset balances. Gas Stored Underground. In the Utility segment, gas stored underground is carried at lower of cost or market, on a LIFO method. Gas stored underground normally declines during the first and second quarters of the year and is replenished during the third and fourth quarters. 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 $1.0 million at December 31, 2015, is reduced to zero by September 30 of each year as the inventory is replenished. Property, Plant and Equipment. In the Company’s Exploration and Production segment, oil and gas property acquisition, exploration and development costs are capitalized 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 oil and gas properties unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves of oil and gas attributable to a cost center. 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 $169.5 million and $176.3 million at December 31, 2015 and September 30, 2015, 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 prices of oil and gas (as adjusted for hedging) to estimated future production of proved oil and gas reserves as of the date of the latest balance sheet, less estimated future expenditures, plus (b) the cost of unevaluated properties not being depleted, less (c) income tax effects related to the differences between the book and tax basis of the properties. The natural gas and oil prices used to calculate the full cost ceiling are based on an unweighted arithmetic average of the first day of the month oil and gas prices 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 impairment is required to be charged to earnings in that quarter. The book value of the oil and gas properties exceeded the ceiling at December 31, 2015. As such, the Company recognized a pre-tax impairment charge of $435.5 million for the quarter ended December 31, 2015. A deferred income tax benefit of $182.9 million related to the impairment charge was also recognized for the quarter ended December 31, 2015. In adjusting estimated future cash flows for hedging under the ceiling test at December 31, 2015, estimated future net cash flows were increased by $253.7 million. On December 1, 2015, Seneca and IOG - CRV Marcellus, LLC (IOG), an affiliate of IOG Capital, LP, and funds managed by affiliates of Fortress Investment Group, LLC, executed a joint development agreement that allows IOG to participate in the development of certain oil and gas interests owned by Seneca in Elk, McKean and Cameron Counties, Pennsylvania. Under the terms of the agreement, Seneca and IOG will jointly participate in a program that will develop up to 80 Marcellus wells, with Seneca serving as program operator. IOG will hold an 80% working interest and is obligated to participate in the first 42 wells, and has a one-time option to participate in the remaining 38 wells that can be exercised on or before July 1, 2016. With respect to the first 42 wells, IOG has committed to fund up to $231 million to develop the joint wells. At December 31, 2015, Seneca recorded $10.6 million of cash, a $94.4 million receivable (which was received in January 2016) and a $105 million reduction of property, plant and equipment in recognition of the first installment of IOG funding that is due to Seneca for costs previously incurred to develop a portion of the first 42 wells. As the fee-owner of the property’s mineral rights, Seneca retains a 7.5% royalty interest and the remaining 20% working interest (26% net revenue interest) in the first 42 wells. If IOG exercises its option to participate in the remaining 38 wells, IOG has agreed to fund up to an additional $211 million to develop such joint wells. Seneca will retain a 10% royalty and the remaining 20% working interest (28% net revenue interest) in the remaining 38 wells. Seneca’s working interest under the agreement will increase to 85% after IOG achieves a 15% internal rate of return. Accumulated Other Comprehensive Income. The components of Accumulated Other Comprehensive Income and changes for the three months ended December 31, 2015 and 2014, net of related tax effect, are as follows (amounts in parentheses indicate debits) (in thousands):
Reclassifications Out of Accumulated Other Comprehensive Income. The details about the reclassification adjustments out of accumulated other comprehensive income for the three months ended December 31, 2015 and 2014 are as follows (amounts in parentheses indicate debits to the income statement) (in thousands):
Other Current Assets. The components of the Company’s Other Current Assets are as follows (in thousands):
Other Accruals and Current Liabilities. The components of the Company’s Other Accruals and Current Liabilities are as follows (in thousands):
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 has outstanding are stock options, SARs, restricted stock units and performance shares. As the Company recognized a net loss for the quarter ended December 31, 2015, the aforementioned securities, amounting to 394,205 securities, were not recognized in the diluted earnings per share calculation for the quarter ended December 31, 2015. For 2014, 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. Stock options, SARs, restricted stock units and performance shares that are antidilutive are excluded from the calculation of diluted earnings per common share. There were 2,461 securities excluded as being antidilutive for the quarter ended December 31, 2014. Stock-Based Compensation. The Company granted 309,996 performance shares during the quarter ended December 31, 2015. The weighted average fair value of such performance shares was $30.71 per share for the quarter ended December 31, 2015. 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. Half of the performance shares granted during the quarter ended December 31, 2015 must meet a performance goal related to relative return on capital over the performance cycle of October 1, 2015 to September 30, 2018. The performance goal over the performance cycle is the Company’s total return on capital relative to the total return on capital of other companies in a group selected by the Compensation Committee (“Report Group”). Total return on capital for a given company means the average of the Report Group companies’ returns on capital for each twelve month period corresponding to each of the Company’s fiscal years during the performance cycle, based on data reported for the Report Group companies in the Bloomberg database. The number of these 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 of these performance shares is calculated by multiplying the expected number of shares that will be issued by the average market price of Company common stock on the date of grant reduced by the present value of forgone dividends over the vesting term of the award. The fair value is recorded as compensation expense over the vesting term of the award. The other half of the performance shares granted during the quarter ended December 31, 2015 must meet a performance goal related to relative total shareholder return over the performance cycle of October 1, 2015 to September 30, 2018. The performance goal over the performance cycle is the Company’s three-year total shareholder return relative to the three-year total shareholder return of the other companies in the Report Group. Three-year 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 total shareholder return performance shares ("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 99,843 non-performance based restricted stock units during the quarter ended December 31, 2015. The weighted average fair value of such non-performance based restricted stock units was $35.57 per share for the quarter ended December 31, 2015. 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 non-performance based restricted stock units do not entitle the participant to receive dividends during the vesting period. The accounting for non-performance based restricted stock units is the same as the accounting for restricted share awards, except that the fair value at the date of grant of the restricted stock units must be reduced by the present value of forgone dividends over the vesting term of the award. No stock options, SARs or restricted share awards were granted by the Company during the quarter ended December 31, 2015. New Authoritative Accounting and Financial Reporting Guidance. In May 2014, the FASB issued authoritative guidance regarding revenue recognition. The authoritative guidance provides a single, comprehensive revenue recognition model for all contracts with customers to improve comparability. The revenue standard contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. The original effective date of this authoritative guidance was as of the Company's first quarter of fiscal 2018. However, the FASB has delayed the effective date of the new revenue standard by one year, and the guidance will now be effective as of the Company's first quarter of fiscal 2019. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements and disclosures. In June 2014, the FASB issued authoritative guidance regarding accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the employee has completed the requisite service period. This authoritative guidance requires that such performance targets that affect vesting be treated as performance conditions, meaning that the performance target should not be factored in the calculation of the award at the grant date. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved. This authoritative guidance will be effective as of the Company's first quarter of fiscal 2017, with early adoption permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements. In July 2015, the FASB issued authoritative guidance simplifying inventory measurement by requiring companies to value inventory at the lower of cost and net realizable value. The authoritative guidance applies to all inventory other than inventory that is measured using last-in, first-out or the retail inventory method. The intention of this authoritative guidance is to eliminate some diversity in practice. This authoritative guidance will be effective as of the Company's first quarter of fiscal 2018, with early adoption permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements. In November 2015, the FASB issued authoritative guidance simplifying the presentation of deferred income taxes. The authoritative guidance requires entities with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. The Company early adopted this guidance at December 31, 2015 on a retrospective basis. In January 2016, the FASB issued authoritative guidance regarding the recognition and measurement of financial assets and liabilities. The authoritative guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. All equity investments in unconsolidated entities will be measured at fair value through earnings rather than through other comprehensive income. This authoritative guidance will be effective as of the Company's first quarter of fiscal 2019. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The FASB authoritative guidance regarding fair value measurements establishes a fair-value hierarchy and prioritizes the inputs used in valuation techniques that measure fair value. Those inputs are prioritized into three levels. Level 1 inputs are unadjusted quoted prices in active markets for assets or liabilities that the Company can access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly at the measurement date. Level 3 inputs are unobservable inputs for the asset or liability at the measurement date. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The following table sets forth, by level within the fair value hierarchy, the Company's financial assets and liabilities (as applicable) that were accounted for at fair value on a recurring basis as of December 31, 2015 and September 30, 2015. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The fair value presentation for over the counter swaps combines gas and oil swaps because a significant number of the counterparties enter into both gas and oil swap agreements with the Company.
Derivative Financial Instruments At December 31, 2015 and September 30, 2015, the derivative financial instruments reported in Level 1 consist of natural gas NYMEX and ICE futures contracts used in the Company’s Energy Marketing segment. Hedging collateral deposits of $9.6 million at December 31, 2015 and $11.1 million at September 30, 2015, which are associated with these futures contracts, have been reported in Level 1 as well. The derivative financial instruments reported in Level 2 at December 31, 2015 and September 30, 2015 consist of natural gas price swap agreements used in the Company’s Exploration and Production and Energy Marketing segments, the majority of the crude oil price swap agreements used in the Company’s Exploration and Production segment and foreign currency contracts used in the Company's Exploration and Production segment. The fair value of the Level 2 price swap agreements is based on an internal, discounted cash flow model that uses observable inputs (i.e. LIBOR based discount rates and basis differential information, if applicable, at active natural gas and crude oil trading markets). The fair value of the Level 2 foreign currency contracts is determined using the market approach based on observable market transactions of forward Canadian currency rates. The derivative financial instruments reported in Level 3 consist of a small portion of the crude oil price swap agreements used in the Company’s Exploration and Production segment at September 30, 2015 that settled prior to December 31, 2015. The fair value of the Level 3 crude oil price swap agreements was based on an internal, discounted cash flow model that uses both observable (i.e. LIBOR based discount rates) and unobservable inputs (i.e. basis differential information of crude oil trading markets with low trading volume). The accounting rules for fair value measurements and disclosures require consideration of the impact of nonperformance risk (including credit risk) from a market participant perspective in the measurement of the fair value of assets and liabilities. At December 31, 2015, the Company determined that nonperformance risk would have no material impact on its financial position or results of operation. To assess nonperformance risk, the Company considered information such as any applicable collateral posted, master netting arrangements, and applied a market-based method by using the counterparty's (assuming the derivative is in a gain position) or the Company’s (assuming the derivative is in a loss position) credit default swaps rates. The tables listed below provide reconciliations of the beginning and ending net balances for assets and liabilities measured at fair value and classified as Level 3 for the quarters ended December 31, 2015 and 2014, respectively. For the quarters ended December 31, 2015 and December 31, 2014, no transfers in or out of Level 1 or Level 2 occurred. There were no purchases or sales of derivative financial instruments during the periods presented in the tables below. All settlements of the derivative financial instruments are reflected in the Gains/Losses Realized and Included in Earnings column of the tables below (amounts in parentheses indicate credits in the derivative asset/liability accounts).
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Financial Instruments |
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Financial Instruments, Owned, at Fair Value [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments | Financial Instruments Long-Term Debt. The fair market value of the Company’s debt, as presented in the table below, was determined using a discounted cash flow model, which incorporates the Company’s credit ratings and current market conditions in determining the yield, and subsequently, the fair market value of the debt. Based on these criteria, the fair market value of long-term debt, including current portion, was as follows (in thousands):
The fair value amounts are not intended to reflect principal amounts that the Company will ultimately be required to pay. Carrying amounts for other financial instruments recorded on the Company’s Consolidated Balance Sheets approximate fair value. The fair value of long-term debt was calculated using observable inputs (U.S. Treasuries/LIBOR for the risk free component and company specific credit spread information – generally obtained from recent trade activity in the debt). As such, the Company considers the debt to be Level 2. Any temporary cash investments, notes payable to banks and commercial paper are stated at cost. Temporary cash investments are considered Level 1, while notes payable to banks and commercial paper are considered to be Level 2. Given the short-term nature of the notes payable to banks and commercial paper, the Company believes cost is a reasonable approximation of fair value. Other Investments. Investments in life insurance are stated at their cash surrender values or net present value as discussed below. Investments in an equity mutual fund, a fixed income mutual fund and the stock of an insurance company (marketable equity securities), as discussed below, are stated at fair value based on quoted market prices. Other investments include cash surrender values of insurance contracts (net present value in the case of split-dollar collateral assignment arrangements) and marketable equity and fixed income securities. The values of the insurance contracts amounted to $45.5 million at December 31, 2015 and $45.3 million at September 30, 2015. The fair value of the equity mutual fund was $36.1 million at December 31, 2015 and $34.9 million at September 30, 2015. The gross unrealized gain on this equity mutual fund was $6.0 million at December 31, 2015 and $6.5 million at September 30, 2015. The fair value of the fixed income mutual fund was $22.0 million at December 31, 2015 and $8.0 million at September 30, 2015. The gross unrealized loss on this fixed income mutual fund was $0.1 million at December 31, 2015. The fair value of the stock of an insurance company was $4.2 million at December 31, 2015 and $4.3 million at September 30, 2015. The gross unrealized gain on this stock was $2.5 million at December 31, 2015 and $2.6 million at September 30, 2015. The insurance contracts and marketable equity securities are primarily informal funding mechanisms for various benefit obligations the Company has to certain employees. Derivative Financial Instruments. The Company uses derivative financial instruments to manage commodity price risk in the Exploration and Production segment as well as the Energy Marketing segment. The Company enters into futures contracts and over-the-counter swap agreements for natural gas and crude oil to manage the price risk associated with forecasted sales of gas and oil. In addition, the Company also enters into foreign exchange forward contracts to manage the risk of currency fluctuations associated with transportation costs denominated in Canadian currency in the Exploration and Production segment. These instruments are accounted for as cash flow hedges. The Company also enters into futures contracts and swaps, which are accounted for as cash flow hedges, to manage the price risk associated with forecasted gas purchases. The Company enters into futures contracts and swaps to mitigate risk associated with fixed price sales commitments, fixed price purchase commitments, and the decline in value of natural gas held in storage. These instruments are accounted for as fair value hedges. The duration of the Company’s combined cash flow and fair value commodity hedges does not typically exceed 5 years while the foreign currency forward contracts do not exceed ten years. The Exploration and Production segment holds the majority of the Company’s derivative financial instruments. The derivative financial instruments held by the Energy Marketing segment are not considered to be material to the Company. The Company has presented its net derivative assets and liabilities as “Fair Value of Derivative Financial Instruments” on its Consolidated Balance Sheets at December 31, 2015 and September 30, 2015. Substantially all of the derivative financial instruments reported on those line items relate to commodity contracts and a small portion relates to foreign currency forward contracts. Cash Flow Hedges For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. As of December 31, 2015, the Company had the following commodity derivative contracts (swaps and futures contracts) outstanding:
As of December 31, 2015, the Company was hedging a total of $87.5 million of forecasted transportation costs denominated in Canadian dollars with foreign currency forward contracts (long positions). As of December 31, 2015, the Company had $280.4 million ($162.7 million after tax) of net hedging gains included in the accumulated other comprehensive income balance. It is expected that $189.1 million ($109.7 million after tax) of such unrealized gains will be reclassified into the Consolidated Statement of Income within the next 12 months as the underlying hedged transaction are recorded in earnings. Refer to Note 1, under Accumulated Other Comprehensive Income, for the after-tax gain (loss) pertaining to derivative financial instruments.
Fair Value Hedges The Company utilizes fair value hedges to mitigate risk associated with fixed price sales commitments, fixed price purchase commitments, and the decline in the value of certain natural gas held in storage. With respect to fixed price sales commitments, the Company enters into long positions to mitigate the risk of price increases for natural gas supplies that could occur after the Company enters into fixed price sales agreements with its customers. With respect to fixed price purchase commitments, the Company enters into short positions to mitigate the risk of price decreases that could occur after the Company locks into fixed price purchase deals with its suppliers. With respect to storage hedges, the Company enters into short positions to mitigate the risk of price decreases that could result in a lower of cost or market writedown of the value of natural gas in storage that is recorded in the Company’s financial statements. As of December 31, 2015, the Company’s Energy Marketing segment had fair value hedges covering approximately 16.7 Bcf (16.4 Bcf of fixed price sales commitments, 0.1 Bcf of fixed price purchase commitments and 0.2 Bcf of commitments related to the withdrawal of storage gas). For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative as well as the offsetting gain or loss on the hedged item attributable to the hedged risk completely offset each other in current earnings, as shown below.
Credit Risk The Company may be exposed to credit risk on any of the derivative financial instruments that are in a gain position. Credit risk relates to the risk of loss that the Company would incur as a result of nonperformance by counterparties pursuant to the terms of their contractual obligations. To mitigate such credit risk, management performs a credit check, and then on a quarterly basis monitors counterparty credit exposure. The majority of the Company’s counterparties are financial institutions and energy traders. The Company has over-the-counter swap positions and applicable foreign currency forward contracts with sixteen counterparties of which fifteen are in a net gain position. On average, the Company had $18.4 million of credit exposure per counterparty in a gain position at December 31, 2015. The maximum credit exposure per counterparty in a gain position at December 31, 2015 was $50.4 million. The Company’s gain position on such derivative financial instruments for certain counterparties exceeded the established thresholds at which the counterparties would be required to post collateral. At December 31, 2015, collateral deposits from counterparties of $35.5 million were posted. These collateral deposits are recorded as a component of Accounts Payable on the Consolidated Balance Sheet. As of December 31, 2015, thirteen of the sixteen counterparties to the Company’s outstanding derivative instrument contracts (specifically the over-the-counter swaps and applicable foreign currency forward contracts) had a common credit-risk related contingency feature. In the event the Company’s credit rating increases or falls below a certain threshold (applicable debt ratings), the available credit extended to the Company would either increase or decrease. A decline in the Company’s credit rating, in and of itself, would not cause the Company to be required to increase the level of its hedging collateral deposits (in the form of cash deposits, letters of credit or treasury debt instruments). If the Company’s outstanding derivative instrument contracts were in a liability position (or if the liability were larger) and/or the Company’s credit rating declined, then additional hedging collateral deposits may be required. At December 31, 2015, the fair market value of the derivative financial instrument assets with a credit-risk related contingency feature was $179.9 million according to the Company’s internal model (discussed in Note 2 — Fair Value Measurements). For its over-the-counter swap agreements and foreign currency forward contracts, no hedging collateral deposits were required to be posted by the Company at December 31, 2015. For its exchange traded futures contracts, the Company was required to post $9.6 million in hedging collateral deposits as of December 31, 2015. As these are exchange traded futures contracts, there are no specific credit-risk related contingency features. The Company posts hedging collateral based on open positions and margin requirements it has with its counterparties. The Company’s requirement to post hedging collateral deposits and the Company's right to receive hedging collateral deposits is based on the fair value determined by the Company’s counterparties, which may differ from the Company’s assessment of fair value. Hedging collateral deposits may also include closed derivative positions in which the broker has not cleared the cash from the account to offset the derivative liability. The Company records liabilities related to closed derivative positions in Other Accruals and Current Liabilities on the Consolidated Balance Sheet. These liabilities are relieved when the broker clears the cash from the hedging collateral deposit account. This is discussed in Note 1 under Hedging Collateral Deposits. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The components of federal and state income taxes included in the Consolidated Statements of Income are as follows (in thousands):
Total income taxes as reported differ from the amounts that were computed by applying the federal income tax rate to income (loss) before income taxes. The following is a reconciliation of this difference (in thousands):
On December 18, 2015, President Obama signed into law the Protecting Americans from Tax Hikes Act of 2015, which did not have a significant impact on total income tax expense. |
Capitalization |
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Dec. 31, 2015 | |
Capitalization, Long-term Debt and Equity [Abstract] | |
Capitalization | Capitalization Common Stock. During the three months ended December 31, 2015, the Company issued 52,000 original issue shares of common stock as a result of stock option and SARs exercises and 60,650 original issue shares of common stock for restricted stock units that vested. In addition, the Company issued 32,113 original issue shares of common stock for the Direct Stock Purchase and Dividend Reinvestment Plan and 31,810 original issue shares of common stock for the Company’s 401(k) plans. The Company also issued 4,200 original issue shares of common stock to the non-employee directors of the Company who receive compensation under the Company’s 2009 Non-Employee Director Equity Compensation Plan, as partial consideration for the directors’ services during the three months ended December 31, 2015. Holders of stock options, SARs, restricted share awards or restricted stock units will often tender shares of common stock to the Company for payment of option exercise prices and/or applicable withholding taxes. During the three months ended December 31, 2015, 36,088 shares of common stock were tendered to the Company for such purposes. The Company considers all shares tendered as cancelled shares restored to the status of authorized but unissued shares, in accordance with New Jersey law. Current Portion of Long-Term Debt. None of the Company’s long-term debt at December 31, 2015 will mature within the following twelve-month period. |
Commitments And Contingencies |
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Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies Environmental Matters. The Company is subject to various federal, state and local laws and regulations relating to the protection of the environment. The Company has established procedures for the ongoing evaluation of its operations to identify potential environmental exposures and to comply with regulatory requirements. It is the Company’s policy to accrue estimated environmental clean-up costs (investigation and remediation) when such amounts can reasonably be estimated and it is probable that the Company will be required to incur such costs. At December 31, 2015, the Company has estimated its remaining clean-up costs related to former manufactured gas plant sites and third party waste disposal sites will be approximately $9.6 million. The Company expects to recover its environmental clean-up costs through rate recovery over a period of approximately 12 years. The Company's estimated liability for clean-up costs discussed above includes a $8.4 million estimated liability to remediate a former manufactured gas plant site located in New York. In February 2009, the Company received approval from the NYDEC of a Remedial Design Work Plan (RDWP) for this site. In October 2010, the Company submitted a RDWP addendum to conduct additional Preliminary Design Investigation field activities necessary to design a successful remediation. As a result of this work, the Company submitted to the NYDEC a proposal to amend the NYDEC’s Record of Decision remedy for the site. In April 2013, the NYDEC approved the Company’s proposed amendment. Final remedial design work for the site was completed, and active remedial work is nearing completion. The Company is currently not aware of any material additional exposure to environmental liabilities. However, changes in environmental laws and regulations, new information or other factors could have an adverse financial impact on the Company. Other. The Company is involved in other litigation and regulatory matters arising in the normal course of business. These other matters may include, for example, negligence claims and tax, regulatory or other governmental audits, inspections, investigations and other proceedings. These matters may involve state and federal taxes, safety, compliance with regulations, rate base, cost of service and purchased gas cost issues, among other things. While these other matters arising in the normal course of business could have a material effect on earnings and cash flows in the period in which they are resolved, an estimate of the possible loss or range of loss, if any, cannot be made at this time. |
Business Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Information | Business Segment Information The Company reports financial results for five segments: Exploration and Production, Pipeline and Storage, Gathering, Utility and Energy Marketing. The division of the Company’s operations into reportable segments is based upon a combination of factors including differences in products and services, regulatory environment and geographic factors. The data presented in the tables below reflect financial information for the segments and reconciliations to consolidated amounts. As stated in the 2015 Form 10-K, the Company evaluates segment performance based on income before discontinued operations, extraordinary items and cumulative effects of changes in accounting (when applicable). When these items are not applicable, the Company evaluates performance based on net income. There have not been any changes in the basis of segmentation nor in the basis of measuring segment profit or loss from those used in the Company’s 2015 Form 10-K. A listing of segment assets at December 31, 2015 and September 30, 2015 is shown in the tables below.
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Retirement Plan And Other Post-Retirement Benefits |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Plan and Other Post-Retirement Benefits | Retirement Plan and Other Post-Retirement Benefits Components of Net Periodic Benefit Cost (in thousands):
Employer Contributions. During the three months ended December 31, 2015, the Company contributed $4.0 million to its tax-qualified, noncontributory defined-benefit retirement plan (Retirement Plan) and $0.7 million to its VEBA trusts and 401(h) accounts for its other post-retirement benefits. In the remainder of 2016, the Company expects its contributions to the Retirement Plan to be in the range of $1.0 million to $6.0 million. In the remainder of 2016, the Company expects to contribute approximately $2.0 million to its VEBA trusts and 401(h) accounts. |
Regulatory Matters |
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Dec. 31, 2015 | |
Regulatory Assets and Liabilities, Other Disclosures [Abstract] | |
Regulatory Matters | Regulatory Matters Following negotiations and other proceedings, on December 6, 2013, Distribution Corporation filed an agreement, also executed by the Department of Public Service and intervenors, extending existing rates through, at a minimum, September 30, 2015. Although customer rates were not changed, the parties agreed that the allowed rate of return on equity would be set, for ratemaking purposes, at 9.1%. Following conventional practice in New York, the agreement authorizes an “earnings sharing mechanism” (“ESM”). The ESM distributes earnings above the allowed rate of return as follows: from 9.5% to 10.5%, 50% would be allocated to shareholders, and 50% will be deferred for the benefit of customers; above 10.5%, 20% would be allocated to shareholders and 80% will be deferred for the benefit of customers. The agreement further authorizes, and rates reflect, an increase in Distribution Corporation’s pipeline replacement spending by $8.2 million per year of the agreement. The agreement contains other terms and conditions of service that are customary for settlement agreements recently approved by the NYPSC. A $7.5 million refund provision was passed back to ratepayers during 2014 after the NYPSC approved the settlement agreement without modification in an order issued on May 8, 2014. All significant terms of the agreement, including existing rates, continue in effect beyond September 30, 2015 until modified by the NYPSC. The agreement also states that nothing in the agreement precludes the parties from meeting to discuss extending the agreement on mutually acceptable terms, and presenting such extension to the NYPSC for approval. On May 22, 2015, Distribution Corporation filed with the NYPSC a Notice of Impending Settlement Discussions stating that settlement discussions would be scheduled in the near future, and that such discussions might include, among other things, the possible extension of the agreement on mutually acceptable terms, and on October 21, 2015, Distribution Corporation filed with the NYPSC a Supplemental Notice of Impending Settlement Discussions. In the event settlement is not reached, nothing prevents Distribution Corporation from continuing to operate under the existing agreement or from filing a rate case. FERC Rate Proceedings On November 13, 2015, FERC approved Supply Corporation's rate case settlement that extends Supply Corporation's current FERC-approved rate case settlement, requires a rate case filing no later than December 31, 2019 and prohibits any party from seeking to initiate a rate case proceeding before September 30, 2017. Prior to this new extension settlement, Supply Corporation had been otherwise required by its existing rate settlement to make a general rate filing no later than January 1, 2016. The new extension settlement provides, among other things, that Supply Corporation reduce its maximum reservation, capacity, demand and deliverability rates by 2% effective November 1, 2015, and further reduce those rates by an additional 2% on November 1, 2016. Pursuant to the new extension settlement, Supply Corporation also adopted a mechanism that allows it to recover, as a surcharge, certain pipeline safety and greenhouse gas costs it may incur as a result of new rules and regulations. Empire does not have a rate case currently on file with the FERC, but by order dated January 21, 2016, the FERC began a NGA Section 5 rate review of Empire's rates. By that order, Empire is required to file a Cost and Revenue Study within 75 days (by April 5, 2016). |
Summary Of Significant Accounting Policies (Policy) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principles Of Consolidation | 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 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. |
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Reclassification | Reclassification. Due to the adoption of the authoritative guidance regarding the presentation of deferred income taxes, certain prior year amounts have been reclassified to conform with current year presentation. The Company reclassified Deferred Income Taxes of $137.2 million previously shown as Current Assets to Deferred Income Taxes shown as Deferred Credits on the Consolidated Balance Sheet at September 30, 2015. |
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Earnings For Interim Periods | 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 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, 2015, 2014 and 2013 that are included in the Company's 2015 Form 10-K. The consolidated financial statements for the year ended September 30, 2016 will be audited by the Company's independent registered public accounting firm after the end of the fiscal year. The earnings for the three months ended December 31, 2015 should not be taken as a prediction of earnings for the entire fiscal year ending September 30, 2016. Most of the business of the Utility and Energy Marketing segments is seasonal in nature and is influenced by weather conditions. Due to the seasonal nature of the heating business in the Utility and Energy Marketing segments, earnings during the winter months normally represent a substantial part of the earnings that those segments are expected to achieve for the entire fiscal year. The Company’s business segments are discussed more fully in Note 7 – Business Segment Information. |
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Consolidated Statement Of Cash Flows | Consolidated Statement of Cash Flows. For purposes of the Consolidated Statement of Cash Flows, the Company considers all highly liquid debt instruments purchased with a maturity of generally three months or less to be cash equivalents. |
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Hedging Collateral Deposits | Hedging Collateral Deposits. This is an account title for cash held in margin accounts funded by the Company to serve as collateral for hedging positions. In accordance with its accounting policy, the Company does not offset hedging collateral deposits paid or received against related derivative financial instruments liability or asset balances. |
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Gas Stored Underground | Gas Stored Underground. In the Utility segment, gas stored underground is carried at lower of cost or market, on a LIFO method. Gas stored underground normally declines during the first and second quarters of the year and is replenished during the third and fourth quarters. 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 $1.0 million at December 31, 2015, is reduced to zero by September 30 of each year as the inventory is replenished. |
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Property, Plant and Equipment | Property, Plant and Equipment. In the Company’s Exploration and Production segment, oil and gas property acquisition, exploration and development costs are capitalized 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 oil and gas properties unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves of oil and gas attributable to a cost center. 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 $169.5 million and $176.3 million at December 31, 2015 and September 30, 2015, 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 prices of oil and gas (as adjusted for hedging) to estimated future production of proved oil and gas reserves as of the date of the latest balance sheet, less estimated future expenditures, plus (b) the cost of unevaluated properties not being depleted, less (c) income tax effects related to the differences between the book and tax basis of the properties. The natural gas and oil prices used to calculate the full cost ceiling are based on an unweighted arithmetic average of the first day of the month oil and gas prices 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 impairment is required to be charged to earnings in that quarter. The book value of the oil and gas properties exceeded the ceiling at December 31, 2015. As such, the Company recognized a pre-tax impairment charge of $435.5 million for the quarter ended December 31, 2015. A deferred income tax benefit of $182.9 million related to the impairment charge was also recognized for the quarter ended December 31, 2015. In adjusting estimated future cash flows for hedging under the ceiling test at December 31, 2015, estimated future net cash flows were increased by $253.7 million. On December 1, 2015, Seneca and IOG - CRV Marcellus, LLC (IOG), an affiliate of IOG Capital, LP, and funds managed by affiliates of Fortress Investment Group, LLC, executed a joint development agreement that allows IOG to participate in the development of certain oil and gas interests owned by Seneca in Elk, McKean and Cameron Counties, Pennsylvania. Under the terms of the agreement, Seneca and IOG will jointly participate in a program that will develop up to 80 Marcellus wells, with Seneca serving as program operator. IOG will hold an 80% working interest and is obligated to participate in the first 42 wells, and has a one-time option to participate in the remaining 38 wells that can be exercised on or before July 1, 2016. With respect to the first 42 wells, IOG has committed to fund up to $231 million to develop the joint wells. At December 31, 2015, Seneca recorded $10.6 million of cash, a $94.4 million receivable (which was received in January 2016) and a $105 million reduction of property, plant and equipment in recognition of the first installment of IOG funding that is due to Seneca for costs previously incurred to develop a portion of the first 42 wells. As the fee-owner of the property’s mineral rights, Seneca retains a 7.5% royalty interest and the remaining 20% working interest (26% net revenue interest) in the first 42 wells. If IOG exercises its option to participate in the remaining 38 wells, IOG has agreed to fund up to an additional $211 million to develop such joint wells. Seneca will retain a 10% royalty and the remaining 20% working interest (28% net revenue interest) in the remaining 38 wells. Seneca’s working interest under the agreement will increase to 85% after IOG achieves a 15% internal rate of return. |
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Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income. The components of Accumulated Other Comprehensive Income and changes for the three months ended December 31, 2015 and 2014, net of related tax effect, are as follows (amounts in parentheses indicate debits) (in thousands):
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Reclassifications Out Of Accumulated Other Comprehensive Income | Reclassifications Out of Accumulated Other Comprehensive Income. The details about the reclassification adjustments out of accumulated other comprehensive income for the three months ended December 31, 2015 and 2014 are as follows (amounts in parentheses indicate debits to the income statement) (in thousands):
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Other Current Assets | Other Current Assets. The components of the Company’s Other Current Assets are as follows (in thousands):
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Other Accruals And Current Liabilities | Other Accruals and Current Liabilities. The components of the Company’s Other Accruals and Current Liabilities are as follows (in thousands):
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Earnings Per Common Share | 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 has outstanding are stock options, SARs, restricted stock units and performance shares. As the Company recognized a net loss for the quarter ended December 31, 2015, the aforementioned securities, amounting to 394,205 securities, were not recognized in the diluted earnings per share calculation for the quarter ended December 31, 2015. For 2014, 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. Stock options, SARs, restricted stock units and performance shares that are antidilutive are excluded from the calculation of diluted earnings per common share. There were 2,461 securities excluded as being antidilutive for the quarter ended December 31, 2014. |
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Stock-Based Compensation | Stock-Based Compensation. The Company granted 309,996 performance shares during the quarter ended December 31, 2015. The weighted average fair value of such performance shares was $30.71 per share for the quarter ended December 31, 2015. 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. Half of the performance shares granted during the quarter ended December 31, 2015 must meet a performance goal related to relative return on capital over the performance cycle of October 1, 2015 to September 30, 2018. The performance goal over the performance cycle is the Company’s total return on capital relative to the total return on capital of other companies in a group selected by the Compensation Committee (“Report Group”). Total return on capital for a given company means the average of the Report Group companies’ returns on capital for each twelve month period corresponding to each of the Company’s fiscal years during the performance cycle, based on data reported for the Report Group companies in the Bloomberg database. The number of these 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 of these performance shares is calculated by multiplying the expected number of shares that will be issued by the average market price of Company common stock on the date of grant reduced by the present value of forgone dividends over the vesting term of the award. The fair value is recorded as compensation expense over the vesting term of the award. The other half of the performance shares granted during the quarter ended December 31, 2015 must meet a performance goal related to relative total shareholder return over the performance cycle of October 1, 2015 to September 30, 2018. The performance goal over the performance cycle is the Company’s three-year total shareholder return relative to the three-year total shareholder return of the other companies in the Report Group. Three-year 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 total shareholder return performance shares ("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 99,843 non-performance based restricted stock units during the quarter ended December 31, 2015. The weighted average fair value of such non-performance based restricted stock units was $35.57 per share for the quarter ended December 31, 2015. 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 non-performance based restricted stock units do not entitle the participant to receive dividends during the vesting period. The accounting for non-performance based restricted stock units is the same as the accounting for restricted share awards, except that the fair value at the date of grant of the restricted stock units must be reduced by the present value of forgone dividends over the vesting term of the award. No stock options, SARs or restricted share awards were granted by the Company during the quarter ended December 31, 2015. |
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New Authoritative Accounting And Financial Reporting Guidance | New Authoritative Accounting and Financial Reporting Guidance. In May 2014, the FASB issued authoritative guidance regarding revenue recognition. The authoritative guidance provides a single, comprehensive revenue recognition model for all contracts with customers to improve comparability. The revenue standard contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. The original effective date of this authoritative guidance was as of the Company's first quarter of fiscal 2018. However, the FASB has delayed the effective date of the new revenue standard by one year, and the guidance will now be effective as of the Company's first quarter of fiscal 2019. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements and disclosures. In June 2014, the FASB issued authoritative guidance regarding accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the employee has completed the requisite service period. This authoritative guidance requires that such performance targets that affect vesting be treated as performance conditions, meaning that the performance target should not be factored in the calculation of the award at the grant date. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved. This authoritative guidance will be effective as of the Company's first quarter of fiscal 2017, with early adoption permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements. In July 2015, the FASB issued authoritative guidance simplifying inventory measurement by requiring companies to value inventory at the lower of cost and net realizable value. The authoritative guidance applies to all inventory other than inventory that is measured using last-in, first-out or the retail inventory method. The intention of this authoritative guidance is to eliminate some diversity in practice. This authoritative guidance will be effective as of the Company's first quarter of fiscal 2018, with early adoption permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements. In November 2015, the FASB issued authoritative guidance simplifying the presentation of deferred income taxes. The authoritative guidance requires entities with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. The Company early adopted this guidance at December 31, 2015 on a retrospective basis. In January 2016, the FASB issued authoritative guidance regarding the recognition and measurement of financial assets and liabilities. The authoritative guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. All equity investments in unconsolidated entities will be measured at fair value through earnings rather than through other comprehensive income. This authoritative guidance will be effective as of the Company's first quarter of fiscal 2019. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements. |
Summary Of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Accumulated Other Comprehensive Income | The components of Accumulated Other Comprehensive Income and changes for the three months ended December 31, 2015 and 2014, net of related tax effect, are as follows (amounts in parentheses indicate debits) (in thousands):
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Schedule Of Reclassifications Out Of Accumulated Other Comprehensive Income | The details about the reclassification adjustments out of accumulated other comprehensive income for the three months ended December 31, 2015 and 2014 are as follows (amounts in parentheses indicate debits to the income statement) (in thousands):
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Schedule Of Other Current Assets | The components of the Company’s Other Current Assets are as follows (in thousands):
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Schedule Of Other Accruals And Current Liabilities | The components of the Company’s Other Accruals and Current Liabilities are as follows (in thousands):
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table sets forth, by level within the fair value hierarchy, the Company's financial assets and liabilities (as applicable) that were accounted for at fair value on a recurring basis as of December 31, 2015 and September 30, 2015. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The fair value presentation for over the counter swaps combines gas and oil swaps because a significant number of the counterparties enter into both gas and oil swap agreements with the Company.
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Fair Value Measurements Using Unobservable Inputs (Level 3) | The tables listed below provide reconciliations of the beginning and ending net balances for assets and liabilities measured at fair value and classified as Level 3 for the quarters ended December 31, 2015 and 2014, respectively. For the quarters ended December 31, 2015 and December 31, 2014, no transfers in or out of Level 1 or Level 2 occurred. There were no purchases or sales of derivative financial instruments during the periods presented in the tables below. All settlements of the derivative financial instruments are reflected in the Gains/Losses Realized and Included in Earnings column of the tables below (amounts in parentheses indicate credits in the derivative asset/liability accounts).
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Financial Instruments (Tables) |
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Financial Instruments, Owned, at Fair Value [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Based on these criteria, the fair market value of long-term debt, including current portion, was as follows (in thousands):
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Schedule Of Derivative Financial Instruments Designated And Qualifying As Cash Flow Hedges On The Statement Of Financial Performance |
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Schedule Of Derivatives And Hedged Items In Fair Value Hedging Relationships | For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative as well as the offsetting gain or loss on the hedged item attributable to the hedged risk completely offset each other in current earnings, as shown below.
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Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Federal And State Income Taxes Included In The Consolidated Statements Of Income | The components of federal and state income taxes included in the Consolidated Statements of Income are as follows (in thousands):
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Schedule Of Income Tax Reconciliation By Applying Federal Income Tax Rate | Total income taxes as reported differ from the amounts that were computed by applying the federal income tax rate to income (loss) before income taxes. The following is a reconciliation of this difference (in thousands):
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Business Segment Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Segment Information By Segment |
|
Retirement Plan And Other Post-Retirement Benefits (Tables) |
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost (in thousands):
|
Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2015 |
Sep. 30, 2016 |
|
Summary Of Significant Accounting Policies [Line Items] | ||||
Reclassification of Current Assets | $ 137,200 | |||
Gas stored underground | $ (28,811) | (34,252) | ||
Capitalized costs of unproved properties excluded from amortization | $ 169,500 | 176,300 | ||
Full cost ceiling test discount factor | 10.00% | |||
Impairment of Oil and Gas Producing Properties | $ 435,451 | $ 0 | ||
Increase estimated future net cash flows | 253,700 | |||
Net Proceeds from Sale of Oil and Gas Producing Properties | $ 10,574 | $ 0 | ||
Antidilutive securities | 394,205 | 2,461 | ||
Receivable from Sale of Oil and Gas Producing Properties | $ 94,364 | $ 0 | ||
Reserve For Gas Replacement [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Gas stored underground | $ 976 | $ 0 | ||
IOG-CRV Marcellus, LLC [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Partner Working Interest In Joint Wells | 80.00% | |||
Internal Rate of Return | 15.00% | |||
Seneca [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Net Proceeds from Sale of Oil and Gas Producing Properties | $ 10,600 | |||
Receivable from Sale of Oil and Gas Producing Properties | 94,400 | |||
Reduction in Plant, Property and Equipment | 105,000 | |||
Impairment of Oil and Gas Producing Properties [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Deferred Income Tax Benefit | $ 182,900 | |||
Stock Options [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Stock options granted | 0 | |||
Restricted Shares [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Share based compensation other than options grants in period | 0 | |||
Stock Appreciation Right [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Share based compensation other than options grants in period | 0 | |||
Non-performance Based Restricted Stock Units [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Share based compensation other than options grants in period | 99,843 | |||
Granted in fiscal year, weighted average grant date fair value | $ 35.57 | |||
Performance Shares [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Share based compensation other than options grants in period | 309,996 | |||
Granted in fiscal year, weighted average grant date fair value | $ 30.71 | |||
Subsequent Event [Member] | Reserve For Gas Replacement [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Gas stored underground | $ 0 | |||
Maximum [Member] | IOG-CRV Marcellus, LLC [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Wells to be Developed | 80 | |||
Partner Commitment to Develop Joint Wells | $ 231,000 | |||
Initial Participation [Member] | IOG-CRV Marcellus, LLC [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Wells to be Developed | 42 | |||
Initial Participation [Member] | Seneca [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Royalty Interest | 7.50% | |||
Partner Working Interest In Joint Wells | 20.00% | |||
Partner Net Revenue Interest in Joint Wells | 26.00% | |||
Additional Option to Participate [Member] | IOG-CRV Marcellus, LLC [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Wells to be Developed | 38 | |||
Partner Commitment to Develop Joint Wells | $ 211,000 | |||
Additional Option to Participate [Member] | Seneca [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Royalty Interest | 10.00% | |||
Partner Working Interest In Joint Wells | 20.00% | |||
Partner Net Revenue Interest in Joint Wells | 28.00% | |||
After Internal Rate of Return Achieved [Member] | Seneca [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Partner Working Interest In Joint Wells | 85.00% |
Summary Of Significant Accounting Policies (Components Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at Beginning of Period | $ 93,372 | $ (3,979) |
Other Comprehensive Gains and Losses Before Reclassification | 44,249 | 140,628 |
Amounts Reclassified From Other Comprehensive Income | (39,165) | (14,176) |
Balance at End of Period | 98,456 | 122,473 |
Gains And Losses On Derivative Financial Instruments [Member] | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at Beginning of Period | 157,197 | 43,659 |
Other Comprehensive Gains and Losses Before Reclassification | 44,696 | 140,880 |
Amounts Reclassified From Other Comprehensive Income | (39,165) | (14,176) |
Balance at End of Period | 162,728 | 170,363 |
Gains And Losses On Securities Available For Sale [Member] | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at Beginning of Period | 5,969 | 8,382 |
Other Comprehensive Gains and Losses Before Reclassification | (447) | (252) |
Amounts Reclassified From Other Comprehensive Income | 0 | 0 |
Balance at End of Period | 5,522 | 8,130 |
Funded Status Of The Pension And Other Post-Retirement Benefit Plans [Member] | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at Beginning of Period | (69,794) | (56,020) |
Other Comprehensive Gains and Losses Before Reclassification | 0 | 0 |
Amounts Reclassified From Other Comprehensive Income | 0 | 0 |
Balance at End of Period | $ (69,794) | $ (56,020) |
Summary Of Significant Accounting Policies (Reclassification Out Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Operating Revenues | $ 375,195 | $ 523,909 |
Purchased Gas | (42,068) | (127,091) |
Operation and Maintenance | 112,692 | 112,582 |
Other Income | 2,418 | 1,183 |
Income Before Income Taxes | (333,459) | 139,900 |
Income Tax Expense | 144,350 | (55,160) |
Net Income (Loss) Available for Common Stock | (189,109) | 84,740 |
Amount Of Gain Or (Loss) Reclassified From Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income Before Income Taxes | 57,170 | 24,265 |
Income Tax Expense | (18,005) | (10,089) |
Net Income (Loss) Available for Common Stock | 39,165 | 14,176 |
Amount Of Gain Or (Loss) Reclassified From Accumulated Other Comprehensive Income [Member] | Commodity Contracts [Member] | Gains And Losses On Derivative Financial Instruments [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Operating Revenues | 56,327 | 20,036 |
Purchased Gas | 920 | 4,229 |
Foreign Currency Contracts [Member] | Amount Of Gain Or (Loss) Reclassified From Accumulated Other Comprehensive Income [Member] | Gains And Losses On Derivative Financial Instruments [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Operation and Maintenance | $ (77) | $ 0 |
Summary Of Significant Accounting Policies (Components Of Other Current Assets) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Sep. 30, 2015 |
---|---|---|
Summary Of Significant Accounting Policies [Line Items] | ||
Prepayments | $ 8,727 | $ 10,743 |
Prepaid Property and Other Taxes | 15,143 | 13,709 |
Fair Values of Firm Commitments | 16,618 | 15,775 |
Regulatory Assets | 18,537 | 20,438 |
Other Current Assets | 66,145 | 60,665 |
Federal [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Income Taxes Receivable | $ 7,120 | $ 0 |
Summary Of Significant Accounting Policies (Schedule Of Other Accruals And Current Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Sep. 30, 2015 |
---|---|---|
Summary Of Significant Accounting Policies [Line Items] | ||
Regulatory Liabilities | $ 4,695 | $ 5,346 |
Reserve for Gas Replacement | (28,811) | (34,252) |
Other | 28,046 | 30,703 |
Other Accruals and Current Liabilities | 95,830 | 96,557 |
Accrued Capital Expenditures [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Other | 61,362 | 53,652 |
Reserve For Gas Replacement [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Reserve for Gas Replacement | 976 | 0 |
Federal [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Income Taxes Payable | 0 | 5,686 |
State [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Income Taxes Payable | $ 751 | $ 1,170 |
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Sep. 30, 2015 |
|||
---|---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Hedging collateral deposits | [1] | $ 9,551 | $ 11,124 | ||
Fair value measured on recurring basis, net | [1] | (352,063) | (411,263) | ||
Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Hedging collateral deposits | 0 | 0 | |||
Fair value measured on recurring basis, net | 0 | (1,791) | |||
Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Hedging collateral deposits | 9,551 | 11,124 | |||
Fair value measured on recurring basis, net | (76,296) | (142,073) | |||
Fair Value, Inputs, Level 1 [Member] | Futures [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Hedging collateral deposits | $ 9,600 | $ 11,100 | |||
|
Fair Value Measurements (Recurring Fair Value Measures Of Assets And Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Sep. 30, 2015 |
|||
---|---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Cash Equivalents - Money Market Mutual Funds | [1] | $ 10,323 | $ 92,196 | ||
Hedging Collateral Deposits | [1] | 9,551 | 11,124 | ||
Total Assets | [1] | 360,032 | 421,339 | ||
Total Liabilities | [1] | 7,969 | 10,076 | ||
Total Net Assets/(Liabilities) | [1] | 352,063 | 411,263 | ||
Commodity Futures Contracts - Gas [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative Asset | [1] | 0 | 0 | ||
Derivative Liability | [1] | 6,327 | 8,903 | ||
Over The Counter Swaps - Gas And Oil [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative Asset | [1] | 282,468 | 273,318 | ||
Derivative Liability | [1] | 1,642 | 1,173 | ||
Foreign Currency Contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative Asset | [1] | (5,059) | (2,955) | ||
Derivative Liability | [1] | 0 | 0 | ||
Balanced Equity Mutual Fund [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other Investments | [1] | 36,096 | 34,884 | ||
Fixed Income Mutual Fund [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other Investments | [1] | 21,980 | 8,004 | ||
Common Stock - Financial Services Industry [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other Investments | [1] | 4,179 | 4,318 | ||
Other Common Stock [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other Investments | [1] | 494 | 450 | ||
Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Cash Equivalents - Money Market Mutual Funds | 10,323 | 92,196 | |||
Hedging Collateral Deposits | 9,551 | 11,124 | |||
Total Assets | 87,973 | 157,349 | |||
Total Liabilities | 11,677 | 15,276 | |||
Total Net Assets/(Liabilities) | 76,296 | 142,073 | |||
Fair Value, Inputs, Level 1 [Member] | Commodity Futures Contracts - Gas [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative Asset | 5,350 | 6,373 | |||
Derivative Liability | 11,677 | 15,276 | |||
Fair Value, Inputs, Level 1 [Member] | Over The Counter Swaps - Gas And Oil [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative Asset | 0 | 0 | |||
Derivative Liability | 0 | 0 | |||
Fair Value, Inputs, Level 1 [Member] | Foreign Currency Contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative Asset | 0 | 0 | |||
Derivative Liability | 0 | 0 | |||
Fair Value, Inputs, Level 1 [Member] | Balanced Equity Mutual Fund [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other Investments | 36,096 | 34,884 | |||
Fair Value, Inputs, Level 1 [Member] | Fixed Income Mutual Fund [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other Investments | 21,980 | 8,004 | |||
Fair Value, Inputs, Level 1 [Member] | Common Stock - Financial Services Industry [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other Investments | 4,179 | 4,318 | |||
Fair Value, Inputs, Level 1 [Member] | Other Common Stock [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other Investments | 494 | 450 | |||
Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Cash Equivalents - Money Market Mutual Funds | 0 | 0 | |||
Hedging Collateral Deposits | 0 | 0 | |||
Total Assets | 284,066 | 272,335 | |||
Total Liabilities | 8,299 | 4,936 | |||
Total Net Assets/(Liabilities) | 275,767 | 267,399 | |||
Fair Value, Inputs, Level 2 [Member] | Commodity Futures Contracts - Gas [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative Asset | 0 | 0 | |||
Derivative Liability | 0 | 0 | |||
Fair Value, Inputs, Level 2 [Member] | Over The Counter Swaps - Gas And Oil [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative Asset | 284,066 | 272,335 | |||
Derivative Liability | 3,240 | 1,981 | |||
Fair Value, Inputs, Level 2 [Member] | Foreign Currency Contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative Asset | 0 | 0 | |||
Derivative Liability | 5,059 | 2,955 | |||
Fair Value, Inputs, Level 2 [Member] | Balanced Equity Mutual Fund [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other Investments | 0 | 0 | |||
Fair Value, Inputs, Level 2 [Member] | Fixed Income Mutual Fund [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other Investments | 0 | 0 | |||
Fair Value, Inputs, Level 2 [Member] | Common Stock - Financial Services Industry [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other Investments | 0 | 0 | |||
Fair Value, Inputs, Level 2 [Member] | Other Common Stock [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other Investments | 0 | 0 | |||
Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Cash Equivalents - Money Market Mutual Funds | 0 | 0 | |||
Hedging Collateral Deposits | 0 | 0 | |||
Total Assets | 0 | 1,791 | |||
Total Liabilities | 0 | 0 | |||
Total Net Assets/(Liabilities) | 0 | 1,791 | |||
Fair Value, Inputs, Level 3 [Member] | Commodity Futures Contracts - Gas [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative Asset | 0 | 0 | |||
Derivative Liability | 0 | 0 | |||
Fair Value, Inputs, Level 3 [Member] | Over The Counter Swaps - Gas And Oil [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative Asset | 0 | 1,791 | |||
Derivative Liability | 0 | 0 | |||
Fair Value, Inputs, Level 3 [Member] | Foreign Currency Contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative Asset | 0 | 0 | |||
Derivative Liability | 0 | 0 | |||
Fair Value, Inputs, Level 3 [Member] | Balanced Equity Mutual Fund [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other Investments | 0 | 0 | |||
Fair Value, Inputs, Level 3 [Member] | Fixed Income Mutual Fund [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other Investments | 0 | 0 | |||
Fair Value, Inputs, Level 3 [Member] | Common Stock - Financial Services Industry [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other Investments | 0 | 0 | |||
Fair Value, Inputs, Level 3 [Member] | Other Common Stock [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other Investments | 0 | 0 | |||
Netting Adjustments [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Cash Equivalents - Money Market Mutual Funds | [1] | 0 | 0 | ||
Hedging Collateral Deposits | [1] | 0 | 0 | ||
Total Assets | [1] | (12,007) | (10,136) | ||
Total Liabilities | [1] | (12,007) | (10,136) | ||
Total Net Assets/(Liabilities) | [1] | 0 | 0 | ||
Netting Adjustments [Member] | Commodity Futures Contracts - Gas [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative Asset | [1] | (5,350) | (6,373) | ||
Derivative Liability | [1] | (5,350) | (6,373) | ||
Netting Adjustments [Member] | Over The Counter Swaps - Gas And Oil [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative Asset | [1] | (1,598) | (808) | ||
Derivative Liability | [1] | (1,598) | (808) | ||
Netting Adjustments [Member] | Foreign Currency Contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative Asset | [1] | (5,059) | (2,955) | ||
Derivative Liability | [1] | (5,059) | (2,955) | ||
Netting Adjustments [Member] | Balanced Equity Mutual Fund [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other Investments | [1] | 0 | 0 | ||
Netting Adjustments [Member] | Fixed Income Mutual Fund [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other Investments | [1] | 0 | 0 | ||
Netting Adjustments [Member] | Common Stock - Financial Services Industry [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other Investments | [1] | 0 | 0 | ||
Netting Adjustments [Member] | Other Common Stock [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other Investments | [1] | $ 0 | $ 0 | ||
|
Fair Value Measurements (Fair Value Measurements Using Unobservable Inputs (Level 3)) (Details) - Derivative Financial Instruments [Member] - USD ($) $ in Thousands |
3 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Roll Forward] | |||||||||||
Beginning Balance | [1] | $ 1,791 | $ 1,368 | ||||||||
Total Gains/Losses, Realized and Included in Earnings | [1] | (2,002) | [2] | (3,855) | [3] | ||||||
Total Gains/Losses Unrealized and Included in Other Comprehensive Income (Loss) | [1] | 211 | 7,824 | ||||||||
Transfer In/Out of Level 3 | [1] | 0 | 0 | ||||||||
Ending Balance | [1] | $ 0 | $ 5,337 | ||||||||
|
Financial Instruments (Narrative) (Details) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2015
USD ($)
counterparty
bbl
MMcf
|
Sep. 30, 2015
USD ($)
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Cash surrender value of life insurance | $ 45,500 | $ 45,300 | |||
Net hedging gains/losses in accumulated other comprehensive income (loss) | 280,400 | ||||
After tax net hedging gains (losses) in accumulated other comprehensive income (loss) | 162,700 | ||||
Pre-Tax Net Hedging Gains (Losses) Reclassified Within Twelve Months | 189,100 | ||||
After Tax Net Hedging Gains (Losses) Reclassified Within Twelve Months | 109,700 | ||||
Collateral Received from Counterparties by the Company | 35,500 | ||||
Hedging collateral deposits | [1] | 9,551 | 11,124 | ||
Fair market value of derivative asset with a credit-risk related contingency | 179,900 | ||||
Over-The-Counter Swap Position | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Maximum credit risk exposure per counterparty | $ 50,400 | ||||
Over the Counter Swaps and Foreign Currency Forward Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Number of counterparties in which the company holds over-the-counter swap positions | counterparty | 16 | ||||
Number of counterparties in net gain position | counterparty | 15 | ||||
Credit risk exposure per counterparty | $ 18,400 | ||||
Hedging collateral deposits | $ 0 | ||||
Fixed Price Purchase Commitments MMCf [Member] | Energy Marketing [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Nonmonetary notional amount of price risk fair value hedge derivatives, natural gas | MMcf | 100 | ||||
Withdrawal of Storage Mmcf [Member] | Energy Marketing [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Nonmonetary notional amount of price risk fair value hedge derivatives, natural gas | MMcf | 200 | ||||
Fair Value Hedges MMCf [Member] | Energy Marketing [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Nonmonetary notional amount of price risk fair value hedge derivatives, natural gas | MMcf | 16,700 | ||||
Fixed Price Sales Commitments MMCf [Member] | Energy Marketing [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Nonmonetary notional amount of price risk fair value hedge derivatives, natural gas | MMcf | 16,400 | ||||
Natural Gas MMCf [Member] | Cash Flow Hedges Short Position [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Nonmonetary notional amount of price risk cash flow hedge derivatives, natural gas | MMcf | 159,600 | ||||
Natural Gas MMCf [Member] | Cash Flow Hedges Long Position [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Nonmonetary notional amount of price risk cash flow hedge derivatives, natural gas | MMcf | 3,000 | ||||
Crude Oil Bbls [Member] | Cash Flow Hedges Short Position [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Nonmonetary notional amount of price risk cash flow hedge derivatives, crude oil | bbl | 1,815,000 | ||||
Exchange Traded Futures Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Hedging collateral deposits | $ 9,600 | ||||
Equity Mutual Fund [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Fair value | 36,100 | 34,900 | |||
Gross unrealized gain | 6,000 | 6,500 | |||
Fixed Income Mutual Fund [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Fair value | 22,000 | 8,000 | |||
Gross unrealized loss | 100 | ||||
Insurance Company Stock [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Fair value | 4,200 | 4,300 | |||
Gross unrealized gain | 2,500 | 2,600 | |||
Foreign Currency Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Liability | [1] | 0 | $ 0 | ||
Derivative, Notional Amount | $ 87,500 | ||||
Credit Risk Related Contingency Feature [Member] | Over the Counter Swaps and Foreign Currency Forward Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Number of counterparties with a common credit-risk related contingency | counterparty | 13 | ||||
|
Financial Instruments (Long-Term Debt) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Sep. 30, 2015 |
---|---|---|
Financial Instruments, Owned, at Fair Value [Abstract] | ||
Carrying Amount | $ 2,084,562 | $ 2,084,009 |
Fair Value | $ 1,970,742 | $ 2,129,558 |
Financial Instruments (Schedule Of Derivative Financial Instruments Designated And Qualifying As Cash Flow Hedges On The Statement Of Financial Performance) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Derivative Gain or (Loss) Recognized in Other Comprehensive Income (Loss) on the Consolidated Statement of Comprehensive Income (Loss) (Effective Portion) | $ 65,372 | $ 243,829 |
Amount of Derivative Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheet into the Consolidated Statement of Income (Effective Portion) | 57,170 | 24,265 |
Derivative Gain or (Loss) Recognized in the Consolidated Statement of Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 137 | 1,460 |
Foreign Currency Contracts [Member] | Operation and Maintenance Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Derivative Gain or (Loss) Recognized in Other Comprehensive Income (Loss) on the Consolidated Statement of Comprehensive Income (Loss) (Effective Portion) | (2,182) | 0 |
Amount of Derivative Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheet into the Consolidated Statement of Income (Effective Portion) | (77) | 0 |
Derivative Gain or (Loss) Recognized in the Consolidated Statement of Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 |
Commodity Contracts [Member] | Operating Revenues [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Derivative Gain or (Loss) Recognized in Other Comprehensive Income (Loss) on the Consolidated Statement of Comprehensive Income (Loss) (Effective Portion) | 65,341 | 240,023 |
Amount of Derivative Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheet into the Consolidated Statement of Income (Effective Portion) | 56,327 | 20,036 |
Derivative Gain or (Loss) Recognized in the Consolidated Statement of Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 137 | 1,460 |
Commodity Contracts [Member] | Purchased Gas [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Derivative Gain or (Loss) Recognized in Other Comprehensive Income (Loss) on the Consolidated Statement of Comprehensive Income (Loss) (Effective Portion) | 2,213 | 3,806 |
Amount of Derivative Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheet into the Consolidated Statement of Income (Effective Portion) | 920 | 4,229 |
Derivative Gain or (Loss) Recognized in the Consolidated Statement of Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $ 0 | $ 0 |
Financial Instruments (Schedule Of Derivatives And Hedged Items In Fair Value Hedging Relationships) (Details) $ in Thousands |
3 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Gain or (Loss) on the Derivative Recognized in the Consolidated Statement of Income | $ 3,859 |
Amount of Gain or (Loss) on the Hedged Item Recognized in the Consolidated Statement of Income | (3,859) |
Operating Revenues [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Gain or (Loss) on the Derivative Recognized in the Consolidated Statement of Income | 3,920 |
Amount of Gain or (Loss) on the Hedged Item Recognized in the Consolidated Statement of Income | (3,920) |
Purchased Gas [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Gain or (Loss) on the Derivative Recognized in the Consolidated Statement of Income | (61) |
Amount of Gain or (Loss) on the Hedged Item Recognized in the Consolidated Statement of Income | $ 61 |
Income Taxes (Components Of Federal And State Income Taxes Included In The Consolidated Statements Of Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Current Income Taxes [Abstract] | ||
Federal | $ (8,227) | $ 16,528 |
State | 3,890 | 5,425 |
Deferred Income Taxes [Abstract] | ||
Federal | (97,705) | 26,193 |
State | (42,308) | 7,014 |
Income Tax Expense (Benefit) | (144,350) | 55,160 |
Deferred Investment Tax Credit | (87) | (104) |
Total Income Taxes | (144,437) | 55,056 |
Presented as Follows [Abstract] | ||
Other Income | (87) | (104) |
Income Tax Expense (Benefit) | $ (144,350) | $ 55,160 |
Income Taxes (Schedule Of Income Tax Reconciliation By Applying Federal Income Tax Rate) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | ||
U.S. Income (Loss) Before Income Taxes | $ (333,546) | $ 139,796 |
Income Tax Expense (Benefit), Computed at U.S. Federal Statutory Rate of 35% | (116,741) | 48,929 |
State Income Taxes (Benefit) | (24,972) | 8,085 |
Miscellaneous | (2,724) | (1,958) |
Total Income Taxes | $ (144,437) | $ 55,056 |
Federal Statutory Rate | 35.00% | 35.00% |
Capitalization (Details) |
3 Months Ended |
---|---|
Dec. 31, 2015
shares
| |
Debt Instrument [Line Items] | |
Common stock shares issued due to stock option exercises | 52,000 |
Issue shares of common stock for the Direct Stock Purchase and Dividend Reinvestment Plan | 32,113 |
Shares tendered | 36,088 |
Issue shares of common stock for the 401(k) plans | 31,810 |
Restricted Stock Units [Member] | |
Debt Instrument [Line Items] | |
Common stock issued | 60,650 |
Board Of Directors [Member] | |
Debt Instrument [Line Items] | |
Common stock issued | 4,200 |
Commitments And Contingencies (Details) $ in Millions |
3 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Site Contingency [Line Items] | |
Estimated minimum liability for environmental remediation | $ 9.6 |
Rate recovery period | 12 years |
Former Manufactured Gas Plant Site [Member] | |
Site Contingency [Line Items] | |
Estimated minimum liability for environmental remediation | $ 8.4 |
Business Segment Information (Narrative) (Details) |
3 Months Ended |
---|---|
Dec. 31, 2015
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 5 |
Business Segment Information (Financial Segment Information By Segment) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2015 |
|
Segment Reporting Information [Line Items] | |||
Segment Profit: Net Income (Loss) | $ (189,109) | $ 84,740 | |
Segment Assets | 6,190,332 | $ 6,564,939 | |
Revenue From External Customers [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 375,195 | 523,909 | |
Intersegment Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 0 | 0 | |
Exploration And Production [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment Profit: Net Income (Loss) | (237,086) | 26,720 | |
Segment Assets | 2,103,633 | 2,439,801 | |
Exploration And Production [Member] | Revenue From External Customers [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 151,965 | 204,665 | |
Exploration And Production [Member] | Intersegment Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 0 | 0 | |
Pipeline And Storage [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment Profit: Net Income (Loss) | 21,276 | 20,778 | |
Segment Assets | 1,597,432 | 1,590,525 | |
Pipeline And Storage [Member] | Revenue From External Customers [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 53,354 | 51,745 | |
Pipeline And Storage [Member] | Intersegment Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 22,183 | 21,461 | |
Gathering [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment Profit: Net Income (Loss) | 4,921 | 11,623 | |
Segment Assets | 467,220 | 444,358 | |
Gathering [Member] | Revenue From External Customers [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 125 | 146 | |
Gathering [Member] | Intersegment Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 18,640 | 24,428 | |
Utility [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment Profit: Net Income (Loss) | 18,606 | 22,594 | |
Segment Assets | 1,930,977 | 1,934,730 | |
Utility [Member] | Revenue From External Customers [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 143,848 | 210,073 | |
Utility [Member] | Intersegment Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 3,664 | 4,534 | |
Energy Marketing [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment Profit: Net Income (Loss) | 1,223 | 2,826 | |
Segment Assets | 87,870 | 90,676 | |
Energy Marketing [Member] | Revenue From External Customers [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 24,984 | 56,166 | |
Energy Marketing [Member] | Intersegment Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 311 | 206 | |
Total Reportable Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment Profit: Net Income (Loss) | (191,060) | 84,541 | |
Segment Assets | 6,187,132 | 6,500,090 | |
Total Reportable Segments [Member] | Revenue From External Customers [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 374,276 | 522,795 | |
Total Reportable Segments [Member] | Intersegment Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 44,798 | 50,629 | |
All Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment Profit: Net Income (Loss) | 189 | (6) | |
Segment Assets | 78,293 | 77,350 | |
All Other [Member] | Revenue From External Customers [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 706 | 884 | |
All Other [Member] | Intersegment Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 0 | 0 | |
Corporate And Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment Profit: Net Income (Loss) | 1,762 | 205 | |
Segment Assets | (75,093) | $ (12,501) | |
Corporate And Intersegment Eliminations [Member] | Revenue From External Customers [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 213 | 230 | |
Corporate And Intersegment Eliminations [Member] | Intersegment Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ (44,798) | $ (50,629) |
Retirement Plan And Other Post-Retirement Benefits (Narrative) (Details) $ in Millions |
3 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Retirement Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Company's contributions | $ 4.0 |
VEBA Trusts And 401(h) Accounts [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Company's contributions | 0.7 |
Estimated future contributions in remainder of fiscal year | 2.0 |
Minimum [Member] | Retirement Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future contributions in remainder of fiscal year | 1.0 |
Maximum [Member] | Retirement Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future contributions in remainder of fiscal year | $ 6.0 |
Retirement Plan And Other Post-Retirement Benefits (Components Of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
||||
Retirement Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service Cost | $ 2,928 | $ 3,012 | |||
Interest Cost | 10,579 | 10,304 | |||
Expected Return on Plan Assets | (14,842) | (14,904) | |||
Amortization of Prior Service Cost (Credit) | 308 | 46 | |||
Amortization of Losses | 8,062 | 9,032 | |||
Net Amortization and Deferral For Regulatory Purposes (Including Volumetric Adjustments) | [1] | 1,906 | 1,292 | ||
Net Periodic Benefit Cost | 8,941 | 8,782 | |||
Other Post-Retirement Benefit Plans, Defined Benefit [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service Cost | 583 | 673 | |||
Interest Cost | 5,096 | 4,821 | |||
Expected Return on Plan Assets | (7,883) | (8,522) | |||
Amortization of Prior Service Cost (Credit) | (228) | (478) | |||
Amortization of Losses | 1,382 | 1,037 | |||
Net Amortization and Deferral For Regulatory Purposes (Including Volumetric Adjustments) | [1] | 4,121 | 4,920 | ||
Net Periodic Benefit Cost | $ 3,071 | $ 2,451 | |||
|
Regulatory Matters (Details) $ in Millions |
3 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Regulatory Matters [Line Items] | |
Rate proceeding refund provision pre tax | $ 7.5 |
Allowed rate of return on equity | 9.10% |
Authorized Increase in Distribution Corporation's pipeline relacement spending | $ 8.2 |
Maximum [Member] | |
Regulatory Matters [Line Items] | |
Allowed rate of return on equity range | 10.50% |
Minimum [Member] | |
Regulatory Matters [Line Items] | |
Allowed rate of return on equity range | 9.50% |
9.5 Percent To 10.5 Percent Rate Of Return On Equity [Member] | Shareholder Allocation [Member] | |
Regulatory Matters [Line Items] | |
Earnings sharing mechanism allocation of earnings | 50.00% |
9.5 Percent To 10.5 Percent Rate Of Return On Equity [Member] | Deferred For The Benefit Of Customers [Member] | |
Regulatory Matters [Line Items] | |
Earnings sharing mechanism allocation of earnings | 50.00% |
Above 10.5 Percent Rate Of Return On Equity [Member] | Shareholder Allocation [Member] | |
Regulatory Matters [Line Items] | |
Earnings sharing mechanism allocation of earnings | 20.00% |
Above 10.5 Percent Rate Of Return On Equity [Member] | Deferred For The Benefit Of Customers [Member] | |
Regulatory Matters [Line Items] | |
Earnings sharing mechanism allocation of earnings | 80.00% |
Supply Corporation [Member] | November 1, 2015 [Member] | |
Regulatory Matters [Line Items] | |
Reduction in Rates | 2.00% |
Supply Corporation [Member] | November 1, 2016 [Member] | |
Regulatory Matters [Line Items] | |
Reduction in Rates | 2.00% |