Business Segment Information

12 Months Ended

Sep. 30, 2019

The Company reports financial results for four segments: Exploration and Production, Pipeline and Storage, Gathering and Utility. 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 Company previously reported financial results for five business segments: Exploration and Production, Pipeline and Storage, Gathering, Utility and Energy Marketing. However, management has made the decision to eliminate the Energy Marketing segment as a reportable segment based on the fact that the energy marketing operations do not meet any of the quantitative thresholds specified by authoritative guidance related to segment reporting. Furthermore, from a qualitative standpoint, management’s focus has changed regarding the energy marketing operations, and management no longer considers the energy marketing operations to be integral to the overall operations of the Company. As a result of this change in focus and the fact that the energy marketing operations cannot be aggregated into one of the other four reportable business segments, the energy marketing operations have been included in the All Other category in the disclosures that follow. Prior year segment information shown below has been restated to reflect this change in presentation.

The Exploration and Production segment, through Seneca, is engaged in exploration for and development of natural gas and oil reserves in California and the Appalachian region of the United States.

The Pipeline and Storage segment operations are regulated by the FERC for both Supply Corporation and Empire. Supply Corporation transports and stores natural gas for utilities (including Distribution Corporation), natural gas marketers (including NFR), exploration and production companies (including Seneca) and pipeline companies in the northeastern United States markets. Empire transports and stores natural gas for major industrial companies, utilities (including Distribution Corporation) and power producers in New York State. Empire also transports natural gas for natural gas marketers and exploration and production companies from natural gas producing areas in Pennsylvania to markets in New York and to interstate pipeline delivery points with access to additional markets in the northeastern United States and Canada.

The Gathering segment is comprised of Midstream Company’s operations. Midstream Company builds, owns and operates natural gas processing and pipeline gathering facilities in the Appalachian region and currently provides gathering services to Seneca.

The Utility segment operations are regulated by the NYPSC and the PaPUC and are carried out by Distribution Corporation. Distribution Corporation sells natural gas to retail customers and provides natural gas transportation services in western New York and northwestern Pennsylvania.

The data presented in the tables below reflects financial information for the segments and reconciliations to consolidated amounts. The accounting policies of the segments are the same as those described in Note A — Summary of Significant Accounting Policies. Sales of products or services between segments are billed at regulated rates or at market rates, as applicable. The Company evaluates segment performance based on income before discontinued operations (when applicable). When this is not applicable, the Company evaluates performance based on net income.



	Year Ended September 30, 2019
	Exploration and Production		Pipeline and Storage		Gathering		Utility		Total Reportable Segments		All Other			Corporate and Intersegment Eliminations			Total Consolidated
	(Thousands)
Revenue from External Customers(1)	$	632,740	$	195,808	$	11	$	715,813	$	1,544,372	$	148,582		$	378		$	1,693,332
Intersegment Revenues	$	—	$	92,475	$	127,064	$	11,629	$	231,168	$	1,127		$	(232,295	)	$	—
Interest Income	$	1,107	$	2,982	$	546	$	1,809	$	6,444	$	1,291		$	(1,670	)	$	6,065
Interest Expense	$	54,777	$	29,142	$	9,406	$	23,443	$	116,768	$	21		$	(10,033	)	$	106,756
Depreciation, Depletion and Amortization	$	154,784	$	44,947	$	20,038	$	53,832	$	273,601	$	1,291		$	768		$	275,660
Income Tax Expense (Benefit)	$	32,978	$	23,238	$	20,895	$	13,967	$	91,078	$	(955	)	$	(4,902	)	$	85,221
Segment Profit: Net Income (Loss)	$	111,807	$	74,011	$	58,413	$	60,871	$	305,102	$	(1,811	)	$	999		$	304,290
Expenditures for Additions to Long-Lived Assets	$	491,889	$	143,005	$	49,650	$	95,847	$	780,391	$	128		$	727		$	781,246
	At September 30, 2019
	(Thousands)
Segment Assets	$	1,972,776	$	1,893,514	$	547,995	$	1,991,338	$	6,405,623	$	122,241		$	(65,707	)	$	6,462,157



	Year Ended September 30, 2018
	Exploration and Production			Pipeline and Storage		Gathering			Utility		Total Reportable Segments			All Other		Corporate and Intersegment Elimination			Total Consolidated
	(Thousands)
Revenue from External Customers(1)	$	564,547		$	210,345	$	41		$	674,726	$	1,449,659		$	142,349	$	660		$	1,592,668
Intersegment Revenues	$	—		$	89,981	$	107,856		$	12,800	$	210,637		$	826	$	(211,463	)	$	—
Interest Income	$	1,479		$	2,748	$	1,106		$	1,591	$	6,924		$	1,073	$	(1,231	)	$	6,766
Interest Expense	$	54,288		$	31,383	$	9,560		$	26,753	$	121,984		$	22	$	(7,484	)	$	114,522
Depreciation, Depletion and Amortization	$	124,274		$	43,463	$	17,313		$	53,253	$	238,303		$	1,902	$	756		$	240,961
Income Tax Expense (Benefit)	$	(41,962	)	$	17,806	$	(17,677	)	$	15,258	$	(26,575	)	$	2,125	$	16,956		$	(7,494	)
Segment Profit: Net Income (Loss)	$	180,632		$	97,246	$	83,519		$	51,217	$	412,614		$	261	$	(21,354	)	$	391,521
Expenditures for Additions to Long-Lived Assets	$	380,677		$	92,832	$	61,728		$	85,648	$	620,885		$	41	$	(20,324	)	$	600,602
	At September 30, 2018
	(Thousands)
Segment Assets	$	1,568,563		$	1,848,180	$	533,608		$	1,921,971	$	5,872,322		$	129,080	$	35,084		$	6,036,486



	Year Ended September 30, 2017
	Exploration and Production		Pipeline and Storage		Gathering		Utility		Total Reportable Segments		All Other		Corporate and Intersegment Eliminations			Total Consolidated
	(Thousands)
Revenue from External Customers(1)	$	614,599	$	206,615	$	115	$	626,899	$	1,448,228	$	130,759	$	894		$	1,579,881
Intersegment Revenues	$	—	$	87,810	$	107,566	$	13,072	$	208,448	$	794	$	(209,242	)	$	—
Interest Income	$	707	$	1,467	$	994	$	1,051	$	4,219	$	784	$	(890	)	$	4,113
Interest Expense	$	53,702	$	33,717	$	9,142	$	28,492	$	125,053	$	47	$	(5,263	)	$	119,837
Depreciation, Depletion and Amortization	$	112,565	$	41,196	$	16,162	$	52,582	$	222,505	$	940	$	750		$	224,195
Income Tax Expense (Benefit)	$	66,093	$	40,947	$	29,694	$	24,894	$	161,628	$	644	$	(1,590	)	$	160,682
Segment Profit: Net Income (Loss)	$	129,326	$	68,446	$	40,377	$	46,935	$	285,084	$	1,167	$	(2,769	)	$	283,482
Expenditures for Additions to Long-Lived Assets	$	253,057	$	95,336	$	32,645	$	80,867	$	461,905	$	75	$	137		$	462,117
	At September 30, 2017
	(Thousands)
Segment Assets	$	1,407,152	$	1,929,788	$	580,051	$	2,013,123	$	5,930,114	$	137,798	$	35,408		$	6,103,320


(1)	All Revenue from External Customers originated in the United States.



Geographic Information	At September 30
	2019		2018		2017
	(Thousands)
Long-Lived Assets:
United States	$	6,099,534	$	5,491,895	$	5,285,040