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Summary of Significant Accounting Policies | 12 Months Ended
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Sep. 30, 2024
Accounting Policies [Abstract] |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The Company consolidates all entities in which it has a controlling financial interest. All significant intercompany balances and transactions are eliminated. The Company uses proportionate consolidation when accounting for drilling arrangements related to exploration and production properties accounted for under the full cost method of accounting. The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Regulation The Company is subject to regulation by certain state and federal authorities. The Company has accounting policies which conform to GAAP, as applied to regulated enterprises, and are in accordance with the accounting requirements and ratemaking practices of the regulatory authorities. Reference is made to Note F — Regulatory Matters for further discussion. Allowance for Uncollectible Accounts The allowance for uncollectible accounts is the Company’s best estimate of the amount of probable credit losses in the existing accounts receivable. The allowance, the majority of which is in the Utility segment, is determined based on historical experience, the age of customer accounts, other specific information about customer accounts, and the economic and regulatory environment. Account balances have historically been written off against the allowance approximately twelve months after the account is final billed or when it is anticipated that the receivable will not be recovered. However, final billings were suppressed in the Utility segment during the COVID-19 pandemic as a result of state shut-off moratoriums. Those moratoriums were lifted in 2022 which allowed for the resumption of final billings during 2022, thereby resulting in higher amounts being written off in 2023 and 2024. Activity in the allowance for uncollectible accounts are as follows:
| Year Ended September 30
| 2024 |  | 2023 |  | 2022
| (Thousands)
Balance at Beginning of Year | $ | 36,295 |  |  | $ | 40,228 |  |  | $ | 31,639 |
Additions Charged to Costs and Expenses | 13,180 |  |  | 14,482 |  |  | 13,209 |
Add: Discounts on Purchased Receivables | 753 |  |  | 1,380 |  |  | 1,314 |
Deduct: Net Accounts Receivable Written-Off | 24,034 |  |  | 19,795 |  |  | 5,934 |
Balance at End of Year | $ | 26,194 |  |  | $ | 36,295 |  |  | $ | 40,228 |
Regulatory Mechanisms The Company’s rate schedules in the Utility segment contain clauses that permit adjustment of revenues to reflect price changes from the cost of purchased gas included in base rates. Differences between amounts currently recoverable and actual adjustment clause revenues, as well as other price changes and pipeline and storage company refunds not yet includable in adjustment clause rates, are deferred and accounted for as either unrecovered purchased gas costs or amounts payable to customers. Such amounts are generally recovered from (or passed back to) customers during the following fiscal year. Estimated refund liabilities to ratepayers represent management’s current estimate of such refunds. Reference is made to Note F — Regulatory Matters for further discussion. The Utility segment’s tariff in its New York rate jurisdiction contains a system modernization/improvement tracker that is intended to provide recovery for leak prone pipe replacement. Amounts calculated under the tracker that are in excess of the annual amount that can be billed to the ratepayer are deferred as a regulatory asset per commission authorization. The impact of weather on revenues in the Utility segment’s New York rate jurisdiction is tempered by a WNA, which covers the eight-month period from October through May. The WNA is designed to adjust the rates of retail customers to reflect the impact of deviations from normal weather. Weather that is warmer than normal results in a surcharge being added to customers’ current bills, while weather that is colder than normal results in a refund being credited to customers’ current bills. On June 15, 2023, the PaPUC approved the Utility segment’s Pennsylvania rate jurisdiction’s use of a WNA as a five-year pilot program. The program became effective October 2023 and covers the eight-month period from October through May. Prior to October 2023, the Utility segment’s Pennsylvania rate jurisdiction did not have a WNA, causing weather variations to have a direct impact on the Pennsylvania rate jurisdiction’s revenues. The impact of weather normalized usage per customer account in the Utility segment’s New York rate jurisdiction is tempered by a revenue decoupling mechanism. The effect of the revenue decoupling mechanism is to render the Company financially indifferent to throughput decreases resulting from conservation. Weather normalized usage per account that exceeds the average weather normalized usage per customer account results in a refund being credited to customers’ bills. Weather normalized usage per account that is below the average weather normalized usage per account results in a surcharge being added to customers’ bills. The surcharge or credit is calculated over a twelve-month period ending March 31st, and applied to customer bills annually, beginning July 1st. In the Pipeline and Storage segment, the allowed rates that Supply Corporation and Empire bill their customers are based on a straight fixed-variable rate design, which allows recovery of all fixed costs, including return on equity and income taxes, through fixed monthly reservation charges. Because of this rate design, changes in throughput due to weather variations do not have a significant impact on the revenues of Supply Corporation or Empire. Asset Acquisition and Business Combination Accounting In accordance with authoritative guidance issued by the FASB that clarifies the definition of a business, when the Company executes an acquisition, it will perform an initial screening test as of the acquisition date that, if met, results in the conclusion that the set of activities and assets is not a business. If the initial screening test is not met, the Company evaluates whether the set of activities is a business based on whether there are inputs and a substantive process in place. The definition of a business impacts whether the Company consolidates an acquisition under business combination guidance or asset acquisition guidance. When the Company acquires assets and liabilities deemed to be an asset acquisition, the fair value of the purchase consideration, including the transaction costs of the asset acquisition, is assumed to be equal to the fair value of the net assets acquired. The purchase consideration, including the transaction costs, is allocated to the individual assets and liabilities assumed based on their relative fair values. Transaction costs associated with asset acquisitions are capitalized as part of the costs of the group of assets acquired. When the Company acquires assets and liabilities deemed to be a business combination, the acquisition method is applied. Goodwill is measured as the fair value of the consideration transferred less the net recognized fair value of the identifiable assets acquired and the liabilities assumed, all measured at the acquisition date. Transaction costs that the Company incurs in connection with a business combination, such as finders’ fees, legal fees, due diligence fees and other professional and consulting fees are expensed as incurred. Property, Plant and Equipment In the Company’s Exploration and Production segment, property acquisition, exploration and development costs are capitalized under the full cost method of accounting. Under this methodology, all costs associated with property acquisition, exploration and development activities are capitalized, including internal costs directly identified with acquisition, exploration and development activities. The internal costs that are capitalized do not include any costs related to production, general corporate overhead, or similar activities. The Company does not recognize any gain or loss on the sale or other disposition of properties unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves attributable to a cost center. The Company’s capitalized costs relating to exploration and production activities, net of accumulated depreciation, depletion and amortization, were $2.3 billion and $2.4 billion at September 30, 2024 and 2023, respectively. For further discussion of capitalized costs, refer to Note N — Supplementary Information for Exploration and Production Activities. Capitalized costs are subject to the SEC full cost ceiling test. The ceiling test, which is performed each quarter, determines a limit, or ceiling, on the amount of property acquisition, exploration and development costs that can be capitalized. The ceiling under this test represents (a) the present value of estimated future net cash flows, excluding future cash outflows associated with settling asset retirement obligations that have been accrued on the balance sheet, using a discount factor of 10%, which is computed by applying commodity pricing (as adjusted for hedging) to estimated future production of proved reserves as of the date of the latest balance sheet, less estimated future expenditures, plus (b) the cost of unproved properties not being depleted, less (c) income tax effects related to the differences between the book and tax basis of the properties. The commodity prices used to calculate the full cost ceiling are based on an unweighted arithmetic average of first day of the month commodity price for each month within the twelve-month period prior to the end of the reporting period. If capitalized costs, net of accumulated depreciation, depletion and amortization and related deferred income taxes, exceed the ceiling at the end of any quarter, a permanent non-cash impairment is required to be charged to earnings in that quarter. The book value of the exploration and production properties exceeded the ceiling at September 30, 2024 as well as at June 30, 2024. As such, the Company recognized non-cash, pre-tax ceiling test impairment charges in the Exploration and Production segment of $463.7 million for the year ended September 30, 2024. Deferred income tax benefits of $127.3 million related to the non-cash impairment charges were also recognized for the year ended September 30, 2024. In adjusting estimated future net cash flows for hedging under the ceiling test at September 30, 2024, 2023 and 2022, estimated future net cash flows were increased by $428.5 million, increased by $38.8 million and decreased by $1.0 billion, respectively. The Exploration and Production segment also has items of property, plant and equipment that are accounted for outside of the provisions of the full cost method of accounting. As discussed in Note I — Fair Value Measurements, an impairment charge related to certain water disposal assets was recorded at September 30, 2024. The principal assets of the Utility, Pipeline and Storage and Gathering segments, consisting primarily of gas distribution pipelines, transmission pipelines, storage facilities, gathering lines and compressor stations, are recorded at historical cost. There were no indications of any impairments to property, plant and equipment in the Utility and Gathering segments at September 30, 2024. An impairment charge related to the Northern Access Project, which is discussed at Note I — Fair Value Measurements, was recorded in the Pipeline and Storage segment at September 30, 2024. The impairment charge reduced the value of certain assets recorded in Property, Plant and Equipment and Deferred Charges on the Consolidated Balance Sheet. Maintenance and repairs of property and replacements of minor items of property are charged directly to maintenance expense. The original cost of the regulated subsidiaries’ property, plant and equipment retired, and the cost of removal less salvage, are charged to accumulated depreciation. Depreciation, Depletion and Amortization For exploration and production properties, depreciation, depletion and amortization is computed based on quantities produced in relation to proved reserves using the units of production method. The cost of unproved exploration and production properties is excluded from this computation. Depreciation, depletion and amortization expense for exploration and production properties was $270.6 million, $235.7 million and $202.4 million for the years ended September 30, 2024, 2023 and 2022, respectively. For all other property, plant and equipment, depreciation and amortization is computed using the straight-line method in amounts sufficient to recover costs over the estimated useful lives of property in service. The following is a summary of depreciable plant by segment:
| As of September 30
| 2024 |  | 2023
| (Thousands)
Exploration and Production | $ | 7,275,495 |  |  | $ | 6,741,095 |
Pipeline and Storage | 2,919,506 |  |  | 2,803,690 |
Gathering | 1,142,000 |  |  | 1,032,969 |
Utility | 2,645,981 |  |  | 2,507,465 |
All Other and Corporate | 15,915 |  |  | 15,787 |
| $ | 13,998,897 |  |  | $ | 13,101,006 |
Average depreciation, depletion and amortization rates are as follows:
| Year Ended September 30
| 2024 |  | 2023 |  | 2022
Exploration and Production, per Mcfe(1) | $ | 0.71 |  |  | $ | 0.65 |  |  | $ | 0.59 |
Pipeline and Storage | 2.7 | % |  | 2.6 | % |  | 2.7 | %
Gathering | 3.6 | % |  | 3.6 | % |  | 3.6 | %
Utility | 2.8 | % |  | 2.7 | % |  | 2.7 | %
All Other and Corporate | 3.0 | % |  | 2.9 | % |  | 1.4 | %
(1)Amounts include depletion of exploration and production properties as well as depreciation of fixed assets. As disclosed in Note N — Supplementary Information for Exploration and Production Activities, depletion of exploration and production properties amounted to $0.69, $0.63 and $0.57 per Mcfe of production in 2024, 2023 and 2022, respectively. Goodwill The Company has recognized goodwill of $5.5 million as of September 30, 2024 and 2023 on its Consolidated Balance Sheets related to the Company’s acquisition of Empire in 2003. The Company accounts for goodwill in accordance with the current authoritative guidance, which requires the Company to test goodwill for impairment annually. At September 30, 2024, 2023 and 2022, the fair value of Empire was greater than its book value. As such, the goodwill was not considered impaired at those dates. Going back to the origination of the goodwill in 2003, the Company has never recorded an impairment of its goodwill balance. Financial Instruments The Company uses a variety of derivative financial instruments to manage a portion of the market risk associated with fluctuations in the price of natural gas and to manage a portion of the risk of currency fluctuations associated with transportation costs denominated in Canadian currency. These instruments include natural gas price swap agreements and no cost collars and foreign currency forward contracts. The Company accounts for these instruments as cash flow hedges for which the fair value of the instrument is recognized on the Consolidated Balance Sheets as either an asset or a liability labeled Fair Value of Derivative Financial Instruments. Reference is made to Note I — Fair Value Measurements for further discussion concerning the fair value of derivative financial instruments. For cash flow hedges, the offset to the asset or liability that is recorded is a gain or loss recorded in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. The gain or loss recorded in accumulated other comprehensive income (loss) remains there until the hedged transaction occurs, at which point the gains or losses are reclassified to operating revenues on the Consolidated Statements of Income. Reference is made to Note J — Financial Instruments for further discussion concerning cash flow hedges. Accumulated Other Comprehensive Loss The components of Accumulated Other Comprehensive Loss and changes for the years ended September 30, 2024 and 2023, net of related tax effects, are as follows (amounts in parentheses indicate debits) (in thousands):
| Gains and Losses on Derivative Financial Instruments |  |  |  | Funded Status of the Pension and Other Post-Retirement Benefit Plans |  | Total
Year Ended September 30, 2024 |  |  |  |  |  |  |
Balance at October 1, 2023 | $ | 4,623 |  |  |  |  | $ | (59,683) |  |  | $ | (55,060) |
Other Comprehensive Gains and Losses Before Reclassifications | 205,697 |  |  |  |  | (13,515) |  |  | 192,182 |
Amounts Reclassified From Other Comprehensive Loss | (154,521) |  |  |  |  | 1,923 |  |  | (152,598) |
Balance at September 30, 2024 | $ | 55,799 |  |  |  |  | $ | (71,275) |  |  | $ | (15,476) |
Year Ended September 30, 2023 |  |  |  |  |  |  |
Balance at October 1, 2022 | $ | (572,163) |  |  |  |  | $ | (53,570) |  |  | $ | (625,733) |
Other Comprehensive Gains and Losses Before Reclassifications | 493,936 |  |  |  |  | (7,376) |  |  | 486,560 |
Amounts Reclassified From Other Comprehensive Loss | 82,850 |  |  |  |  | 1,263 |  |  | 84,113 |
Balance at September 30, 2023 | $ | 4,623 |  |  |  |  | $ | (59,683) |  |  | $ | (55,060) |
The amounts included in accumulated other comprehensive loss related to the funded status of the Company’s pension and other post-retirement benefit plans consist of prior service costs and accumulated losses. The total amount for prior service cost was $0.4 million at both September 30, 2024 and 2023. The total amount for accumulated losses was $70.9 million and $59.3 million at September 30, 2024 and 2023, respectively. Reclassifications Out of Accumulated Other Comprehensive Loss The details about the reclassification adjustments out of accumulated other comprehensive loss for the years ended September 30, 2024 and 2023 are as follows (amounts in parentheses indicate debits to the income statement) (in thousands):
Details About Accumulated Other Comprehensive Loss Components |  | Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss for the Year Ended September 30, |  | Affected Line Item in the Statement Where Net Income is Presented
|  | 2024 |  | 2023 |  |
Gains (Losses) on Derivative Financial Instrument Cash Flow Hedges: |  |  |  |  |  |
Commodity Contracts |  | $ | 217,012 |  |  | $ | (88,015) |  |  | Operating Revenues
Foreign Currency Contracts |  | (357) |  |  | (641) |  |  | Operating Revenues
Amortization of Prior Year Funded Status of the Pension and Other Post-Retirement Benefit Plans: |  |  |  |  |  |
Prior Service Cost |  | (56) |  |  | (82) |  |  | (1)
Net Actuarial Loss |  | (2,451) |  |  | (1,592) |  |  | (1)
|  | 214,148 |  |  | (90,330) |  |  | Total Before Income Tax
|  | (61,550) |  |  | 6,217 |  |  | Income Tax Expense
|  | $ | 152,598 |  |  | $ | (84,113) |  |  | Net of Tax
(1)These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. Refer to Note K — Retirement Plan and Other Post-Retirement Benefits for additional details. Gas Stored Underground In the Utility segment, gas stored underground in the amount of $35.0 million is carried at lower of cost or net realizable value, on a LIFO method. Based upon the average price of spot market gas purchased in September 2024, including transportation costs, the current cost of replacing this inventory of gas stored underground exceeded the amount stated on a LIFO basis by approximately $8.3 million at September 30, 2024. Unamortized Debt Expense Costs associated with the reacquisition of debt related to rate-regulated subsidiaries are deferred and amortized over the remaining life of the issue or the life of the replacement debt in order to match regulatory treatment. At September 30, 2024, the remaining weighted average amortization period for such costs was approximately 4 years. Income Taxes The Company and its subsidiaries file a consolidated federal income tax return. State tax returns are filed on a combined or separate basis depending on the applicable laws in the jurisdictions where tax returns are filed. The Company follows the asset and liability approach in accounting for income taxes, which requires the recognition of deferred income taxes for the expected future tax consequences of net operating losses, credits and temporary differences between the financial statement carrying amounts and the tax basis of assets and liabilities. A valuation allowance is provided on deferred tax assets if it is determined, within each taxing jurisdiction, that it is more likely than not that the asset will not be realized. The Company reports a liability or a reduction of deferred tax assets for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. When applicable, the Company recognizes interest relating to uncertain tax positions in Other Interest Expense and penalties in Other Income (Deductions). Consolidated Statement of Cash Flows The components, as reported on the Company’s Consolidated Balance Sheets, of the total cash, cash equivalents, and restricted cash presented on the Statement of Cash Flows are as follows (in thousands):
| Year Ended September 30
| 2024 |  | 2023 |  | 2022 |  | 2021
Cash and Temporary Cash Investments | $ | 38,222 |  |  | $ | 55,447 |  |  | $ | 46,048 |  |  | $ | 31,528 |
Hedging Collateral Deposits | — |  |  | — |  |  | 91,670 |  |  | 88,610 |
Cash, Cash Equivalents, and Restricted Cash | $ | 38,222 |  |  | $ | 55,447 |  |  | $ | 137,718 |  |  | $ | 120,138 |
The Company considers all highly liquid debt instruments purchased with a maturity date of generally three months or less to be cash equivalents. The Company’s restricted cash is composed entirely of amounts reported as Hedging Collateral Deposits on the Consolidated Balance Sheets. Hedging Collateral Deposits is an account title for cash held in margin accounts funded by the Company to serve as collateral for derivative financial instruments in an unrealized loss position. In accordance with its accounting policy, the Company does not offset hedging collateral deposits paid or received against related derivative financial instruments liability or asset balances. Other Current Assets The components of the Company’s Other Current Assets are as follows:
| Year Ended September 30
| 2024 |  | 2023
| (Thousands)
Prepayments | $ | 18,463 |  |  | $ | 18,966 |
Prepaid Property and Other Taxes | 14,187 |  |  | 14,186 |
Federal Income Taxes Receivable | 8,154 |  |  | 14,602 |
State Income Taxes Receivable | 13,161 |  |  | 16,133 |
Regulatory Assets | 38,264 |  |  | 36,373 |
| $ | 92,229 |  |  | $ | 100,260 |
Other Accruals and Current Liabilities The components of the Company’s Other Accruals and Current Liabilities are as follows:
| Year Ended September 30
| 2024 |  | 2023
| (Thousands)
Accrued Capital Expenditures | $ | 47,344 |  |  | $ | 43,323 |
Regulatory Liabilities | 29,352 |  |  | 38,105 |
Liability for Royalty and Working Interests | 15,007 |  |  | 17,679 |
Non-Qualified Benefit Plan Liability | 14,135 |  |  | 13,052 |
Other | 57,065 |  |  | 48,815 |
| $ | 162,903 |  |  | $ | 160,974 |
Customer Advances The Company, primarily in its Utility segment, has balanced billing programs whereby customers pay their estimated annual usage in equal installments over a twelve-month period. Monthly payments under the balanced billing programs are typically higher than current month usage during the summer months. During the winter months, monthly payments under the balanced billing programs are typically lower than current month usage. At September 30, 2024 and 2023, customers in the balanced billing programs had advanced excess funds of $19.4 million and $21.0 million, respectively. Customer Security Deposits The Company, primarily in its Utility and Pipeline and Storage segments, oftentimes requires security deposits from marketers, producers, pipeline companies, and commercial and industrial customers before providing services to such customers. At September 30, 2024 and 2023, the Company had received customer security deposits amounting to $36.3 million and $28.8 million, respectively. Earnings Per Common Share Basic earnings per common share is computed by dividing income or loss by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For purposes of determining earnings per common share, the potentially dilutive securities the Company had outstanding during fiscal 2024, 2023 and/or 2022 were restricted stock units, performance shares and SARs. For fiscal 2024, 2023 and 2022, the diluted weighted average shares outstanding shown on the Consolidated Statements of Income reflects the potential dilution as a result of these securities as determined using the Treasury Stock Method. Restricted stock units, performance shares and SARs that are antidilutive are excluded from the calculation of diluted earnings per common share. There were 569 securities, 3,888 securities and 2,858 securities excluded as being antidilutive for the years ended September 30, 2024, 2023 and 2022, respectively. Share Repurchases The Company considers all shares repurchased as cancelled shares restored to the status of authorized but unissued shares, in accordance with New Jersey law. The repurchases are accounted for on the date the share repurchase is traded as an adjustment to common stock (at par value) with the excess repurchase price allocated between paid in capital and retained earnings. Refer to Note H — Capitalization and Short-Term Borrowings for further discussion of the Company’s share repurchase program. Stock-Based Compensation The Company has various stock award plans which provide or provided for the issuance of one or more of the following to key employees: SARs, incentive stock options, nonqualified stock options, restricted stock, restricted stock units, performance units or performance shares. The Company follows authoritative guidance which requires the measurement and recognition of compensation cost at fair value for all share-based payments. For all Company stock awards, forfeitures are recognized as they occur. Restricted stock units are subject to restrictions on vesting and transferability. Restricted stock units represent the right to receive shares of common stock of the Company (or the equivalent value in cash or a combination of cash and shares of common stock of the Company, as determined by the Company) at the end of a specified time period. The restricted stock units do not entitle the participants to dividend and voting rights. The fair value at the date of grant of the restricted stock units (represented by the market value of Company common stock on the date of the award) must be reduced by the present value of forgone dividends over the vesting term of the award. The fair value of restricted stock units on the date of award is recorded as compensation expense over the vesting period. Performance shares are an award constituting units denominated in common stock of the Company, the number of which may be adjusted over a performance cycle based upon the extent to which performance goals have been satisfied. Earned performance shares may be distributed in the form of shares of common stock of the Company, an equivalent value in cash or a combination of cash and shares of common stock of the Company, as determined by the Company. The performance shares do not entitle the participant to receive dividends during the vesting period. For performance shares based on a return on capital goal and greenhouse gas emissions reductions goal, the fair value at the date of grant of the performance shares is determined by multiplying the expected number of performance shares to be issued by the market value of Company common stock on the date of grant reduced by the present value of forgone dividends. For performance shares based on a total shareholder return goal, the Company uses the Monte Carlo simulation technique to estimate the fair value price at the date of grant. Refer to Note H — Capitalization and Short-Term Borrowings under the heading “Stock Award Plans” for additional disclosures related to stock-based compensation awards for all plans.

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