Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts Related to Open Derivative Contracts

The following table summarizes by derivative type the gross notional amounts related to open derivative contracts at March 31, 2024, September 30, 2023 and March 31, 2023, and the final settlement dates of the Company's open derivative contracts as of March 31, 2024, but excluding those derivatives that qualified for the NPNS exception:

			Notional Amounts (in millions)
Type	Units	Settlements Extending Through	March 31, 2024		September 30, 2023		March 31, 2023
Commodity Price Risk:
Regulated Utility Operations
PA Gas Utility NYMEX natural gas futures and option contracts	Dekatherms	February 2025	13		38		12
Non-utility Operations
LPG swaps	Gallons	September 2026	425		727		691
Natural gas futures, forward, basis swap, options and pipeline contracts (a)	Dekatherms	March 2028	339		338		366
Electricity forward and futures contracts	Kilowatt hours	December 2027	544		1,260		1,890
Interest Rate Risk:
Interest rate swaps	Euro	March 2026	€	300	€	300	€	300
Interest rate swaps	USD	September 2026	$	1,263	$	1,270	$	1,277
Foreign Currency Exchange Rate Risk:
Forward foreign currency exchange contracts	USD	September 2026	$	240	$	425	$	285
Net investment hedge forward foreign exchange contracts	Euro	December 2026	€	256	€	256	€	331

(a)Amounts at September 30, 2023 include contracts associated with certain UGI International energy marketing business transactions (see Note 5).

Schedule of Derivative Assets, Liabilities and Effects of Offsetting

The following table presents the Company’s derivative assets and liabilities by type, as well as the effects of offsetting:

	March 31, 2024		September 30, 2023		March 31, 2023
Derivative assets:
Derivatives designated as hedging instruments:
Foreign currency contracts	$	11	$	14	$	9
Interest rate contracts	11		28		25
	22		42		34
Derivatives subject to PGC and DS mechanisms:
Commodity contracts	8		6		19
Derivatives not designated as hedging instruments:
Commodity contracts (a)	138		226		355
Foreign currency contracts	5		24		14
	143		250		369
Total derivative assets — gross	173		298		422
Gross amounts offset in the balance sheet	(111)		(124)		(190)
Cash collateral received	(6)		(40)		(55)
Total derivative assets — net	$	56	$	134	$	177
Derivative liabilities:
Derivatives designated as hedging instruments:
Interest rate contracts	$	(3)	$	—	$	(21)
Derivatives subject to PGC and DS mechanisms:
Commodity contracts	(14)		(8)		(36)
Derivatives not designated as hedging instruments:
Commodity contracts (a)	(208)		(266)		(396)
Foreign currency contracts	(1)		(2)		(4)
	(209)		(268)		(400)
Total derivative liabilities — gross	(226)		(276)		(457)
Gross amounts offset in the balance sheet	111		124		190
Cash collateral pledged	56		53		102
Total derivative liabilities — net	$	(59)	$	(99)	$	(165)

(a)Includes certain derivative contracts associated with UGI International energy marketing business transactions (see Note 5). At September 30, 2023 there were $10 of derivative assets and $12 of derivative liabilities classified as held for sale, which are reflected in “Prepaid expenses and other current assets” and “Other current liabilities,” respectively, on the Condensed Consolidated Balance Sheets at September 30, 2023.

Schedule of Effects of Derivative Instruments on Condensed Consolidated Statements of Income and Changes in AOCI

The following tables provide information on the effects of derivative instruments on the Condensed Consolidated Statements of Income and changes in AOCI:

Three Months Ended March 31,:
	Gain (Loss) Recognized in AOCI				Gain Reclassified from AOCI into Income				Location of Gain Reclassified from AOCI into Income
Cash Flow Hedges:	2024		2023		2024		2023
Interest rate contracts	$	17	$	(21)	$	14	$	7	Interest expense
Net Investment Hedges:
Foreign currency contracts	$	8	$	(1)
	Gain (Loss) Recognized in Income
Derivatives Not Designated as Hedging Instruments:	2024		2023		Location of Gain (Loss) Recognized in Income
Commodity contracts	$	(1)	$	6	Revenues
Commodity contracts	26		(343)		Cost of sales
Commodity contracts	(1)		2		Other operating income, net
Foreign currency contracts	8		(2)		Other non-operating income (expense), net
Total	$	32	$	(337)
Six Months Ended March 31,:
	Loss Recognized in AOCI				Gain Reclassified from AOCI into Income				Location of Gain Reclassified from AOCI into Income
Cash Flow Hedges:	2024		2023		2024		2023
Interest rate contracts	$	(5)	$	(17)	$	27	$	14	Interest expense
Net Investment Hedges:
Foreign currency contracts	$	(2)	$	(24)
	Gain (Loss) Recognized in Income
Derivatives Not Designated as Hedging Instruments:	2024		2023		Location of Gain (Loss) Recognized in Income
Commodity contracts	$	1	$	10	Revenues
Commodity contracts	(129)		(1,669)		Cost of sales
Commodity contracts	2		5		Other operating income, net
Foreign currency contracts	(8)		(34)		Other non-operating income (expense), net
Total	$	(134)	$	(1,688)