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Fair Value Measurements | 12 Months Ended
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Sep. 30, 2024
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 September 30, 2024 and 2023. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
| At Fair Value as of September 30, 2024
Recurring Fair Value Measures | Level 1 |  | Level 2 |  | Level 3 |  | Netting Adjustments(1) |  | Total(1)
| (Dollars in thousands)
Assets: |  |  |  |  |  |  |  |  |
Cash Equivalents — Money Market Mutual Funds | $ | 29,238 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 29,238 |
Derivative Financial Instruments: |  |  |  |  |  |  |  |  |
Over the Counter Swaps — Gas | — |  |  | 76,009 |  |  | — |  |  | (17,198) |  |  | 58,811 |
Over the Counter No Cost Collars — Gas | — |  |  | 32,584 |  |  | — |  |  | (3,774) |  |  | 28,810 |
Contingent Consideration for Asset Sale | — |  |  | 729 |  |  | — |  |  | — |  |  | 729 |
Foreign Currency Contracts | — |  |  | 281 |  |  | — |  |  | (726) |  |  | (445) |
Other Investments: |  |  |  |  |  |  |  |  |
Balanced Equity Mutual Fund | 19,523 |  |  | — |  |  | — |  |  | — |  |  | 19,523 |
Fixed Income Mutual Fund | 17,374 |  |  | — |  |  | — |  |  | — |  |  | 17,374 |
Total | $ | 66,135 |  |  | $ | 109,603 |  |  | $ | — |  |  | $ | (21,698) |  |  | $ | 154,040 |
Liabilities: |  |  |  |  |  |  |  |  |
Derivative Financial Instruments: |  |  |  |  |  |  |  |  |
Over the Counter Swaps — Gas | $ | — |  |  | $ | 22,206 |  |  | $ | — |  |  | $ | (17,198) |  |  | $ | 5,008 |
Over the Counter No Cost Collars — Gas | — |  |  | 3,501 |  |  | — |  |  | (3,774) |  |  | (273) |
Foreign Currency Contracts | — |  |  | 726 |  |  | — |  |  | (726) |  |  | — |
Total | $ | — |  |  | $ | 26,433 |  |  | $ | — |  |  | $ | (21,698) |  |  | $ | 4,735 |
Total Net Assets/(Liabilities) | $ | 66,135 |  |  | $ | 83,170 |  |  | $ | — |  |  | $ | — |  |  | $ | 149,305 |
| At Fair Value as of September 30, 2023
Recurring Fair Value Measures | Level 1 |  | Level 2 |  | Level 3 |  | Netting Adjustments(1) |  | Total(1)
| (Dollars in thousands)
Assets: |  |  |  |  |  |  |  |  |
Cash Equivalents — Money Market Mutual Funds | $ | 39,332 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 39,332 |
Derivative Financial Instruments: |  |  |  |  |  |  |  |  |
Over the Counter Swaps — Gas | — |  |  | 65,800 |  |  | — |  |  | (37,508) |  |  | 28,292 |
Over the Counter No Cost Collars — Gas | — |  |  | 30,966 |  |  | — |  |  | (14,745) |  |  | 16,221 |
Contingent Consideration for Asset Sale | — |  |  | 7,277 |  |  | — |  |  | — |  |  | 7,277 |
Foreign Currency Contracts | — |  |  | 150 |  |  | — |  |  | (1,453) |  |  | (1,303) |
Other Investments: |  |  |  |  |  |  |  |  |
Balanced Equity Mutual Fund | 15,837 |  |  | — |  |  | — |  |  | — |  |  | 15,837 |
Fixed Income Mutual Fund | 15,897 |  |  | — |  |  | — |  |  | — |  |  | 15,897 |
Total | $ | 71,066 |  |  | $ | 104,193 |  |  | $ | — |  |  | $ | (53,706) |  |  | $ | 121,553 |
Liabilities: |  |  |  |  |  |  |  |  |
Derivative Financial Instruments: |  |  |  |  |  |  |  |  |
Over the Counter Swaps — Gas | $ | — |  |  | $ | 68,311 |  |  | $ | — |  |  | $ | (37,508) |  |  | $ | 30,803 |
Over the Counter No Cost Collars — Gas | — |  |  | 14,950 |  |  | — |  |  | (14,745) |  |  | 205 |
Foreign Currency Contracts | — |  |  | 1,454 |  |  | — |  |  | (1,453) |  |  | 1 |
Total | $ | — |  |  | $ | 84,715 |  |  | $ | — |  |  | $ | (53,706) |  |  | $ | 31,009 |
Total Net Assets/(Liabilities) | $ | 71,066 |  |  | $ | 19,478 |  |  | $ | — |  |  | $ | — |  |  | $ | 90,544 |
(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. The following table presents impairments of assets associated with certain nonrecurring fair value measurements within Level 3 of the fair value hierarchy as of September 30, 2024, 2023 and 2022 (in thousands):
|  |  |  |  |  |  | Impairments
Nonrecurring Fair Value Measures |  |  |  |  |  | Year Ended September 30,
| Segment |  | Date of Measurement |  | Fair Value |  | 2024 |  | 2023 |  | 2022
Impairment of Assets: |  |  |  |  |  |  |  |  |  |
Northern Access Project | Pipeline and Storage |  | September 30, 2024 |  | $ | 12,133 |  |  | $ | 46,075 |  |  | $ | — |  |  | $ | — |
Water Disposal Assets | Exploration and Production |  | September 30, 2024 |  | $ | 3,000 |  |  | 9,362 |  |  | — |  |  | — |
Total Impairment |  | $ | 55,437 |  |  | $ | — |  |  | $ | — |
Northern Access Project On February 3, 2017, Supply Corporation and Empire received FERC approval of the Northern Access project described herein. Substantial litigation ensued over the next several years concerning various federal and state authorizations for the project, with the majority of project development activities suspended pending resolution. These legal actions included, most recently, an appeal of FERC’s June 2022 order granting Supply Corporation and Empire an extension of time to construct the project through December 31, 2024. In March 2024, the U.S. Court of Appeals for the D.C. Circuit issued an order affirming FERC’s extension of time, with such order final as of late June 2024. Upon resolution of the extensive litigation, Supply Corporation and Empire began to assess next steps for the project, including a review of the status of necessary federal and state authorizations, as well as potential changes in expected capital expenditures and the related transportation rates that Supply Corporation and Empire needed to support the project. As a result of this review, and in accordance with the precedent agreements between the respective parties, Supply Corporation and Empire sent notifications to Seneca, the sole shipper for the project, indicating their intent to increase the project’s firm transportation rates to account for the anticipated increase in capital expenditures to complete the project. Upon receipt, Seneca indicated it was unwilling to accept the revised transportation rates and intended to terminate the precedent agreements for the project. The precedent agreements were subsequently terminated on October 16, 2024. Accordingly, the Company will no longer pursue construction of the Northern Access project and has taken an impairment charge of $46.1 million at September 30, 2024. Derivative Financial Instruments At September 30, 2024, the derivative financial instruments reported in Level 2 consist of natural gas price swap agreements, natural gas no cost collars, and foreign currency contracts, all of which are used in the Company’s Exploration and Production segment. The fair value of the Level 2 price swap agreements and no cost collars is based on an internal cash flow model that uses observable inputs (i.e. SOFR based discount rates for the price swap agreements and basis differential information, if applicable, at active natural gas 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 authoritative guidance 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 September 30, 2024, the Company determined that nonperformance risk associated with the price swap agreements, no cost collars and foreign currency contracts 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. Derivative financial instruments reported in Level 2 at September 30, 2024 and September 30, 2023 also includes the contingent consideration associated with the sale of the Exploration and Production segment’s California assets on June 30, 2022, which is discussed at Note B — Asset Acquisitions and Divestitures and at Note J — Financial Instruments. The fair value of the contingent consideration was calculated using a Monte Carlo simulation model that uses observable inputs, including the ICE Brent closing price as of the valuation date, initial and max trigger price, volatility, risk free rate, time of maturity and counterparty risk.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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