XML 24 R12.htm IDEA: XBRL DOCUMENT v3.25.1
Capitalization
 6 Months Ended
Mar. 31, 2025
Capitalization, Long-Term Debt and Equity [Abstract]  
Capitalization Capitalization
Summary of Changes in Common Stock Equity
 Common StockPaid In
Capital		Earnings
Reinvested
in the
Business		Accumulated
Other
Comprehensive
Income (Loss)
SharesAmount
 (Thousands, except per share amounts)
Balance at January 1, 202590,613 $90,613 $1,039,705 $1,698,648 $(76,153)
Net Income Available for Common Stock216,358 
Dividends Declared on Common Stock ($0.515 Per Share)
(46,555)
Other Comprehensive Loss, Net of Tax(146,822)
Share-Based Payment Expense (1)
5,135 
Common Stock Issued Under Stock and Benefit Plans11 11 604 
Share Repurchases Under Repurchase Plan(226)(226)(2,622)(13,085)
Balance at March 31, 202590,398 $90,398 $1,042,822 $1,855,366 $(222,975)
Balance at October 1, 202491,006 $91,006 $1,045,487 $1,727,326 $(15,476)
Net Income Available for Common Stock261,344 
Dividends Declared on Common Stock ($1.03 Per Share)
(93,226)
Other Comprehensive Loss, Net of Tax(207,499)
Share-Based Payment Expense (1)
9,225 
Common Stock Issued (Repurchased) Under Stock and Benefit Plans167 167 (2,906)
Share Repurchases Under Repurchase Plan(775)(775)(8,984)(40,078)
Balance at March 31, 202590,398 $90,398 $1,042,822 $1,855,366 $(222,975)
Balance at January 1, 202492,116 $92,116 $1,041,226 $1,973,279 $67,381 
Net Income Available for Common Stock166,272 
Dividends Declared on Common Stock ($0.495 Per Share)
(45,563)
Other Comprehensive Income, Net of Tax7,959 
Share-Based Payment Expense (1)
5,222 
Common Stock Issued Under Stock and Benefit Plans12 12 569 
Share Repurchases Under Repurchase Plan(96)$(96)$(1,088)$(3,816)
Balance at March 31, 202492,032 $92,032 $1,045,929 $2,090,172 $75,340 
Balance at October 1, 202391,819 $91,819 $1,040,761 $1,885,856 $(55,060)
Net Income Available for Common Stock299,292 
Dividends Declared on Common Stock ($0.99 Per Share)
(91,160)
Other Comprehensive Income, Net of Tax130,400 
Share-Based Payment Expense (1)
9,356 
Common Stock Issued (Repurchased) Under Stock and Benefit Plans
309 309 (3,100)
Share Repurchases Under Repurchase Plan(96)$(96)$(1,088)$(3,816)
Balance at March 31, 202492,032 $92,032 $1,045,929 $2,090,172 $75,340 

(1)Paid in Capital includes compensation costs associated with performance shares and/or restricted stock awards. The expense is included within Net Income Available For Common Stock, net of tax benefits.
Common Stock.  Common stock share activity during the six months ended March 31, 2025 consisted of the following items:

Six Months Ended March 31, 2025
Vesting of Restricted Stock Units120,228 
Vesting of Performance Shares89,843 
Issuance of Common Stock Pursuant to the Company's Non-Employee Director Equity
Compensation Plan and Deferred Compensation Plan for Directors and Officers
20,469 
Shares Tendered to Pay Withholding Taxes on Stock-Based Compensation Awards (1)
(64,067)
Common Stock Issued Under Stock and Benefit Plans166,473 
Share Repurchases Under Repurchase Plan(774,768)
Total Net Shares Repurchased During the Six Months Ended March 31, 2025(608,295)
(1)    The Company considers all shares tendered as cancelled shares restored to the status of authorized but unissued shares, in accordance with New Jersey law.

    On March 8, 2024, the Company’s Board of Directors authorized the Company to implement a share repurchase program, whereby the Company may repurchase outstanding shares of common stock, up to an aggregate amount of $200 million in the open market or through privately negotiated transactions, including through the use of trading plans intended to qualify under SEC Rule 10b5-1, in accordance with applicable securities laws and other restrictions. During the six months ended March 31, 2025, the Company executed transactions to repurchase 774,768 shares at an average price of $63.74 per share, for a total cost of $49.8 million (including broker fees and excise taxes). Share repurchases that settled during the six months ended March 31, 2025 were funded with cash provided by operating activities and/or short-term borrowings. In the future, it is expected that this share repurchase program will continue to be funded with cash provided by operating activities and/or through the use of short-term borrowings.

Short-Term Borrowings. The Company is a party to a syndicated Credit Agreement (as amended from time to time, the “Credit Agreement”) that provides a $1.0 billion unsecured committed revolving credit facility. In January 2025, the Company and the eleven banks in the syndicate consented to a second one-year extension of the maturity date of the Credit Agreement, such that the Company has aggregate commitments available under the Credit Agreement in the full amount of $1.0 billion through February 23, 2029.
 
Current Portion of Long-Term Debt. The Current Portion of Long-Term Debt at March 31, 2025 consisted of $50.0 million of 7.38% notes that mature in June 2025 and $300.0 million of long-term delayed draw term loans that mature in February 2026. The Current Portion of Long-Term Debt at September 30, 2024 consisted of $50.0 million of 7.38% notes that mature in June 2025 and $450.0 million of 5.20% notes with a maturity date in July 2025. As discussed below, the Company placed $50.0 million (plus interest) in trust for the benefit of holders of the 7.38% notes that mature in June 2025 and redeemed the $450.0 million of 5.20% notes on March 6, 2025.

Long-Term Debt. On February 19, 2025, the Company issued $500.0 million of 5.50% notes due March 15, 2030 and $500.0 million of 5.95% notes due March 15, 2035. After deducting underwriting discounts, commissions and other debt issuance costs, the net proceeds to the Company amounted to $495.4 million and $493.6 million, respectively. The holders of the notes may require the Company to repurchase their notes at a price equal to 101% of the principal amount in the event of both a change in control and a ratings downgrade to a rating below investment grade. Additionally, the interest rate payable on the notes will be subject to adjustment from time to time, with a maximum adjustment of 2.00%, such that the coupon will not exceed 7.50% on the 5.50% notes and 7.95% on the 5.95% notes, if certain change of control events involving a material subsidiary result in a downgrade of the credit rating assigned to the notes to a rating below investment grade. A downgrade with a resulting increase to the coupon does not preclude the coupon from returning to its original rate if the Company's credit rating is subsequently upgraded. The proceeds of these debt issuances were used for general corporate purposes, including the March 6, 2025 redemptions of $450.0 million of the Company's 5.20% notes that were scheduled to mature in July 2025 and $500.0 million of the Company's 5.50% notes that were scheduled to mature in January 2026. The Company redeemed those notes for $450.8 million and $503.3 million, respectively, plus accrued interest. In the Exploration and Production and Gathering segments, the call premiums of $0.6 million for the redemption of the 5.20% notes and $1.8 million for the redemption of the 5.50% notes, were recorded to Interest Expense on Long-Term Debt on the Consolidated Income Statement during the quarter ended March 31, 2025, and in the Pipeline and Storage segment, the call premiums of $0.2 million for the 5.20% notes redeemed and $1.5 million for the 5.50% notes redeemed were recorded to Unamortized Debt Expense on the Consolidated Balance Sheet as of March 31, 2025. The remaining proceeds of the debt issuances were used to repay a portion
of short-term borrowings the Company incurred to fund a trust for the benefit of holders of the 7.38% notes outstanding under the Company's 1974 indenture, as discussed below.

    Prior to the long-term debt issuances discussed above, the Company placed a total of $53.2 million in trust during the quarter ended March 31, 2025 for the benefit of holders of the 7.38% notes outstanding under the Company’s 1974 indenture. This included $50.0 million in principal and $3.2 million in interest (of which $1.8 million of interest was subsequently paid out of the trust in February 2025) related to long-term debt issued in June 1995 under the 1974 indenture, with a maturity date of June 13, 2025. The funds held in trust are recorded on the consolidated balance sheet as "Cash Held in Trust for Bondholders" as of March 31, 2025. Placing these funds in trust, in an amount equal to the future principal and interest payments due on the 7.38% notes, enabled the Company to cancel and discharge the 1974 indenture, effectively relieving the Company from its obligations to comply with the 1974 indenture’s covenants.
Delayed Draw Term Loan. On February 14, 2024, the Company entered into a Term Loan Agreement (the “Term Loan Agreement”) with six lenders, all of which are lenders under the Credit Agreement. The Term Loan Agreement provides a $300.0 million unsecured committed delayed draw term loan facility with a maturity date of February 14, 2026, and the Company has the ability to select interest periods of one, three or six months for borrowings. In April 2024, pursuant to the delayed draw mechanism, the Company elected to draw a total of $300.0 million under the facility. After deducting debt issuance costs, the net proceeds to the Company amounted to $299.4 million. The Company used the proceeds for general corporate purposes, which included the redemption of outstanding commercial paper. Borrowings under the Term Loan Agreement currently bear interest at a rate equal to SOFR for the applicable interest period, plus an adjustment of 0.10%, plus a spread of 1.375%. The current weighted average locked-in interest rate is 5.79% until mid-May 2025