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Financial Instruments (Table)
 3 Months Ended
Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Oustanding commodity contracts volumes table
As of December 31, 2016, we had net long/(short) commodity contracts outstanding in the following quantities:
Contract Type
 
Hedge Designation
 
Quantity (MMcf)
 
 
 
 
 
Commodity contracts
 
Fair Value
 
(22,403
)
 
 
Not designated
 
109,012

 
 
 
 
86,609
Financial instruments on the balance sheet
 
 
 
 
 
Balance Sheet Location
 
Assets
 
Liabilities
 
 
 
 (In thousands)
September 30, 2016
 
 
 
 
 
Designated As Hedges:
 
 
 
 
 
Commodity contracts
Other current assets /
Other current liabilities
 
$
6,612

 
$
(21,903
)
Interest rate contracts
Other current assets /
Other current liabilities
 
—

 
(68,481
)
Commodity contracts
Deferred charges and other assets /
Deferred credits and other liabilities
 
2,178

 
(3,779
)
Interest rate contracts
Deferred charges and other assets /
Deferred credits and other liabilities
 
—

 
(198,008
)
Total
 
 
8,790

 
(292,171
)
Not Designated As Hedges:
 
 
 
 
 
Commodity contracts
Other current assets /
Other current liabilities
 
21,186

 
(18,812
)
Commodity contracts
Deferred charges and other assets /
Deferred credits and other liabilities
 
14,165

 
(12,701
)
Total
 
 
35,351

 
(31,513
)
Gross Financial Instruments
 
 
44,141

 
(323,684
)
Gross Amounts Offset on Consolidated Balance Sheet:
 
 
 
 
 
Contract netting
 
 
(39,290
)
 
39,290

Net Financial Instruments
 
 
4,851

 
(284,394
)
Cash collateral
 
 
6,775

 
43,575

Net Assets/Liabilities from Risk Management Activities
 
 
$
11,626

 
$
(240,819
)
 
The following tables present the fair value and balance sheet classification of our financial instruments as of December 31, 2016 and September 30, 2016. The gross amounts of recognized assets and liabilities are netted within our unaudited Condensed Consolidated Balance Sheets to the extent that we have netting arrangements with the counterparties.
 
 
 
 
 
Balance Sheet Location
 
Assets
 
Liabilities
 
 
 
 (In thousands)
December 31, 2016
 
 
 
 
 
Designated As Hedges:
 
 
 
 
 
Commodity contracts
Other current liabilities
 
$
—

 
$
(19,740
)
Interest rate contracts
Other current liabilities
 
—

 
(25,060
)
Interest rate contracts
Deferred credits and other liabilities
 
—

 
(97,921
)
Total
 
 
—

 
(142,721
)
Not Designated As Hedges:
 
 
 
 
 
Commodity contracts
Other current assets /
Other current liabilities
 
89,309

 
(71,433
)
Commodity contracts
Deferred charges and other assets /
Deferred credits and other liabilities
 
19,714

 
(16,591
)
Total
 
 
109,023

 
(88,024
)
Gross Financial Instruments
 
 
109,023

 
(230,745
)
Gross Amounts Offset on Consolidated Balance Sheet:
 
 
 
 
 
Contract netting
 
 
(97,841
)
 
97,841

Net Financial Instruments
 
 
11,182

 
(132,904
)
Cash collateral
 
 
3,788

 
9,909

Net Assets/Liabilities from Risk Management Activities
 
 
$
14,970

 
$
(122,995
)
Fair value hedges table
The impact of our natural gas marketing segment commodity contracts designated as fair value hedges and the related hedged item on our condensed consolidated income statement for the three months ended December 31, 2016 and 2015 is presented below.
 
Three Months Ended 
 December 31
 
2016
 
2015
 
(In thousands)
Commodity contracts
$
(9,567
)
 
$
5,744

Fair value adjustment for natural gas inventory designated as the hedged item
12,858

 
2,161

Total decrease in purchased gas cost
$
3,291

 
$
7,905

The decrease in purchased gas cost is comprised of the following:
 
 
 
Basis ineffectiveness
$
(597
)
 
$
1,289

Timing ineffectiveness
3,888

 
6,616

 
$
3,291

 
$
7,905

 
 
 
 
Cash flow hedges
The impact of our interest rate and natural gas marketing segment cash flow hedges on our condensed consolidated income statements for the three months ended December 31, 2016 and 2015 is presented below.
 
Three Months Ended 
 December 31
 
2016
 
2015
 
(In thousands)
Loss reclassified from AOCI for effective portion of commodity contracts
$
(2,612
)
 
$
(22,965
)
Gain (loss) arising from ineffective portion of commodity contracts
111

 
(43
)
Gain on discontinuance of cash flow hedging of natural gas marketing commodity contracts reclassified from AOCI
10,579

 
—

Total impact on purchased gas cost
8,078

 
(23,008
)
Net loss on settled interest rate agreements reclassified from AOCI into interest expense
(137
)
 
(137
)
Total Impact from Cash Flow Hedges
$
7,941

 
$
(23,145
)
 
 
 
 
Other comprehensive income from hedging table
The following table summarizes the gains and losses arising from hedging transactions that were recognized as a component of other comprehensive income (loss), net of taxes, for the three months ended December 31, 2016 and 2015. The amounts included in the table below exclude gains and losses arising from ineffectiveness because those amounts are immediately recognized in the income statement as incurred.
 
Three Months Ended 
 December 31
 
 
2016
 
2015
 
 
(In thousands)
Increase (decrease) in fair value:
 
 
 
 
Interest rate agreements
$
91,127

 
$
4,696

 
Forward commodity contracts
9,847

 
(11,656
)
 
Recognition of (gains) losses in earnings due to settlements:
 
 
 
 
Interest rate agreements
87

 
87

 
Forward commodity contracts
(4,865
)
 
14,009

 
Total other comprehensive income from hedging, net of tax(1)
$
96,196

 
$
7,136

 

 
(1) 
Utilizing an income tax rate ranging from 37 percent to 39 percent based on the effective rates in each taxing jurisdiction.
Expected recognition in earnings of deferred gains/(losses) in AOCI table
The following amounts, net of deferred taxes, represent the expected recognition in earnings of the deferred losses recorded in AOCI associated with our financial instruments, based upon the fair values of these financial instruments as of December 31, 2016. However, the table below does not include the expected recognition in earnings of our outstanding interest rate agreements as those instruments have not yet settled.
 
Interest Rate
Agreements
 
(In thousands)
Next twelve months
$
(523
)
Thereafter
(17,694
)
Total(1) 
$
(18,217
)

 
(1) 
Utilizing an income tax rate of 37 percent