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Summary Of Significant Accounting Policies | 6 Months Ended
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Mar. 31, 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 oil and gas producing 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. Earnings for Interim Periods. The Company, in its opinion, has included all adjustments (which consist of only normally recurring adjustments, unless otherwise disclosed in this Quarterly Report on Form 10-Q) that are necessary for a fair statement of the results of operations for the reported periods. The consolidated financial statements and notes thereto, included herein, should be read in conjunction with the financial statements and notes for the years ended September 30, 2023, 2022 and 2021 that are included in the Company's 2023 Form 10-K. The consolidated financial statements for the year ended September 30, 2024 will be audited by the Company's independent registered public accounting firm after the end of the fiscal year. The earnings for the six months ended March 31, 2024 should not be taken as a prediction of earnings for the entire fiscal year ending September 30, 2024. Most of the business of the Utility segment is seasonal in nature and is influenced by weather conditions. Due to the seasonal nature of the heating business in the Utility segment, earnings during the winter months normally represent a substantial part of the earnings that this business is expected to achieve for the entire fiscal year. The Company’s business segments are discussed more fully in Note 8 – Business Segment Information. Consolidated Statements 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):
| Six Months Ended March 31, 2024 |  | Six Months Ended March 31, 2023
| Balance at March 31, 2024 |  | Balance at October 1, 2023 |  | Balance at March 31, 2023 |  | Balance at October 1, 2022
Cash and Temporary Cash Investments | $ | 50,769 |  |  | $ | 55,447 |  |  | $ | 71,533 |  |  | $ | 46,048 |
Hedging Collateral Deposits | — |  |  | — |  |  | — |  |  | 91,670 |
Cash, Cash Equivalents, and Restricted Cash | $ | 50,769 |  |  | $ | 55,447 |  |  | $ | 71,533 |  |  | $ | 137,718 |
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. 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. During 2022 and 2021, final billings were suppressed in the Utility segment as a result of state shut-off moratoriums arising from the COVID-19 pandemic. 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 for the six months ended March 31, 2024 and 2023 are as follows (in thousands):
| Balance at Beginning of Period |  | Additions Charged to Costs and Expenses |  | Discounts on Purchased Receivables |  | Net Accounts Receivable Written-Off |  | Balance at End of Period
Six Months Ended March 31, 2024 |  |  |  |  |  |  |  |  |
Allowance for Uncollectible Accounts | $ | 36,295 |  |  | $ | 9,766 |  |  | $ | 468 |  |  | $ | (6,834) |  |  | $ | 39,695 |
Six Months Ended March 31, 2023 |  |  |  |  |  |  |  |  |
Allowance for Uncollectible Accounts | $ | 40,228 |  |  | $ | 10,973 |  |  | $ | 916 |  |  | $ | (3,971) |  |  | $ | 48,146 |
Gas Stored Underground. In the Utility segment, gas stored underground is carried at lower of cost or net realizable value, on a LIFO method. Gas stored underground normally declines during the first and second quarters of the year and is replenished during the third and fourth quarters. In the Utility segment, the current cost of replacing gas withdrawn from storage is recorded in the Consolidated Statements of Income and a reserve for gas replacement is recorded in the Consolidated Balance Sheets under the caption “Other Accruals and Current Liabilities.” Such reserve, which amounted to $20.1 million at March 31, 2024, is reduced to zero by September 30 of each year as the inventory is replenished. Property, Plant and Equipment. In the Company’s Exploration and Production segment, oil and gas 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 oil and gas properties unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves of oil and gas attributable to a cost center. The Company's capitalized costs relating to oil and gas producing activities, net of accumulated depreciation, depletion and amortization, were $2.6 billion and $2.4 billion at March 31, 2024 and September 30, 2023, respectively. Capitalized costs include costs related to unproved properties, which are excluded from amortization until proved reserves are found or it is determined that the unproved properties are impaired. Such costs amounted to $174.0 million and $161.1 million at March 31, 2024 and September 30, 2023, respectively. All costs related to unproved properties are reviewed quarterly to determine if impairment has occurred. The amount of any impairment is transferred to the pool of capitalized costs being amortized. 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 prices of oil and gas (as adjusted for hedging) to estimated future production of proved oil and gas 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 gas and oil prices used to calculate the full cost ceiling are based on an unweighted arithmetic average of the first day of the month oil and gas prices 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. At March 31, 2024, the ceiling exceeded the book value of the oil and gas properties by approximately $3.1 million. The estimated future net cash flows were increased by $347.1 million for hedging under the ceiling test at March 31, 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, Pipeline and Storage and Gathering segments at March 31, 2024. Accumulated Other Comprehensive Income (Loss). The components of Accumulated Other Comprehensive Income (Loss) and changes for the six months ended March 31, 2024 and 2023, net of related tax effect, 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
Three Months Ended March 31, 2024 |  |  |  |  |  |  |
Balance at January 1, 2024 | $ | 127,064 |  |  |  |  | $ | (59,683) |  |  | $ | 67,381 |
Other Comprehensive Gains and Losses Before Reclassifications | 51,418 |  |  |  |  | — |  |  | 51,418 |
Amounts Reclassified From Other Comprehensive Income | (43,459) |  |  |  |  | — |  |  | (43,459) |
Balance at March 31, 2024 | $ | 135,023 |  |  |  |  | $ | (59,683) |  |  | $ | 75,340 |
Six Months Ended March 31, 2024 |  |  |  |  |  |  |
Balance at October 1, 2023 | $ | 4,623 |  |  |  |  | $ | (59,683) |  |  | $ | (55,060) |
Other Comprehensive Gains and Losses Before Reclassifications | 188,099 |  |  |  |  | — |  |  | 188,099 |
Amounts Reclassified From Other Comprehensive Income | (57,699) |  |  |  |  | — |  |  | (57,699) |
Balance at March 31, 2024 | $ | 135,023 |  |  |  |  | $ | (59,683) |  |  | $ | 75,340 |
Three Months Ended March 31, 2023 |  |  |  |  |  |  |
Balance at January 1, 2023 | $ | (240,176) |  |  |  |  | $ | (53,570) |  |  | $ | (293,746) |
Other Comprehensive Gains and Losses Before Reclassifications | 225,150 |  |  |  |  | — |  |  | 225,150 |
Amounts Reclassified From Other Comprehensive Income | 13,732 |  |  |  |  | — |  |  | 13,732 |
Balance at March 31, 2023 | $ | (1,294) |  |  |  |  | $ | (53,570) |  |  | $ | (54,864) |
Six Months Ended March 31, 2023 |  |  |  |  |  |  |
Balance at October 1, 2022 | $ | (572,163) |  |  |  |  | $ | (53,570) |  |  | $ | (625,733) |
Other Comprehensive Gains and Losses Before Reclassifications | 441,367 |  |  |  |  | — |  |  | 441,367 |
Amounts Reclassified From Other Comprehensive Income | 129,502 |  |  |  |  | — |  |  | 129,502 |
Balance at March 31, 2023 | $ | (1,294) |  |  |  |  | $ | (53,570) |  |  | $ | (54,864) |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss). The details about the reclassification adjustments out of accumulated other comprehensive income (loss) for the six months ended March 31, 2024 and 2023 are as follows (amounts in parentheses indicate debits to the income statement) (in thousands):
Details About Accumulated Other Comprehensive Income (Loss) Components |  | Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) |  | Affected Line Item in the Statement Where Net Income is Presented
| Three Months Ended March 31, |  | Six Months Ended March 31, |
| 2024 |  | 2023 |  | 2024 |  | 2023 |
Gains (Losses) on Derivative Financial Instrument Cash Flow Hedges: |  |  |  |  |  |  |  |  |  |
Commodity Contracts |  | $60,184 |  |  | ($18,768) |  |  | $79,939 |  |  | ($177,930) |  |  | Operating Revenues
Foreign Currency Contracts |  | (36) |  |  | (172) |  |  | (82) |  |  | (351) |  |  | Operating Revenues
|  | 60,148 |  |  | (18,940) |  |  | 79,857 |  |  | (178,281) |  |  | Total Before Income Tax
|  | (16,689) |  |  | 5,208 |  |  | (22,158) |  |  | 48,779 |  |  | Income Tax Expense
|  | $43,459 |  |  | ($13,732) |  |  | $57,699 |  |  | ($129,502) |  |  | Net of Tax
Other Current Assets. The components of the Company’s Other Current Assets are as follows (in thousands):
| At March 31, 2024 |  | At September 30, 2023
Prepayments | $ | 13,693 |  |  | $ | 18,966 |
Prepaid Property and Other Taxes | 23,308 |  |  | 14,186 |
Federal Income Taxes Receivable | — |  |  | 14,602 |
State Income Taxes Receivable | 12,277 |  |  | 16,133 |
Regulatory Assets | 35,845 |  |  | 36,373 |
| $ | 85,123 |  |  | $ | 100,260 |
Other Accruals and Current Liabilities. The components of the Company’s Other Accruals and Current Liabilities are as follows (in thousands):
| At March 31, 2024 |  | At September 30, 2023
Accrued Capital Expenditures | $ | 40,361 |  |  | $ | 43,323 |
Regulatory Liabilities | 37,192 |  |  | 38,105 |
Reserve for Gas Replacement | 20,139 |  |  | — |
Liability for Royalty and Working Interests | 19,198 |  |  | 17,679 |
Federal Income Taxes Payable | 11,747 |  |  | — |
Non-Qualified Benefit Plan Liability | 13,052 |  |  | 13,052 |
Other | 42,277 |  |  | 48,815 |
| $ | 183,966 |  |  | $ | 160,974 |
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 were restricted stock units and performance shares. For the quarter and six months ended March 31, 2024, 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 and performance shares that are antidilutive are excluded from the calculation of diluted earnings per common share. There were 232 securities excluded as being antidilutive for the quarter ended March 31, 2024. There were no securities excluded as being antidilutive for the six months ended March 31, 2024. There were 9,909 securities and 4,094 securities excluded as being antidilutive for the quarter and six months ended March 31, 2023, 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 6 – Capitalization for further discussion of the Company's share repurchase program. Stock-Based Compensation. The Company granted 361,729 performance shares during the six months ended March 31, 2024. The weighted average fair value of such performance shares was $44.23 per share for the six months ended March 31, 2024. 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. The performance shares granted during the six months ended March 31, 2024 include awards that must meet a performance goal related to either relative return on capital over a three-year or five-year performance cycle ("ROC performance shares"), methane intensity and greenhouse gas emissions reductions over a three-year performance cycle ("ESG performance shares") or relative shareholder return over a three-year or five-year performance cycle ("TSR performance shares"). The performance goal related to the ROC performance shares over the respective performance cycles is the Company’s total return on capital relative to the total return on capital of other companies in a group selected by the Compensation Committee (“Report Group”). Total return on capital for a given company means the average of the Report Group companies’ returns on capital for each twelve-month period corresponding to each of the Company’s fiscal years during the performance cycle, based on data reported for the Report Group companies in the Bloomberg database. The number of these ROC performance shares that will vest and be paid will depend upon the Company’s performance relative to the Report Group and not upon the absolute level of return achieved by the Company. The fair value of the ROC performance shares is calculated by multiplying the expected number of shares that will be issued by the average market price of Company common stock on the date of grant reduced by the present value of forgone dividends over the vesting term of the award. The fair value is recorded as compensation expense over the vesting term of the award. The performance goal related to the ESG performance shares over the three-year performance cycle consists of two parts: reductions in the rates of intensity of methane emissions for each of the Company's operating segments, and reduction of the consolidated Company's total greenhouse gas emissions. The Company's Compensation Committee set specific target levels for methane intensity rates and total greenhouse gas emissions, and the performance goal is intended to incentivize and reward performance to the extent management achieves methane intensity and greenhouse gas reduction targets making progress towards the Company's 2030 goals. The number of these ESG performance shares that will vest and be paid out will depend upon the number of methane intensity segment targets achieved and whether the Company meets the total greenhouse gas emissions target. The fair value of these ESG performance shares is calculated by multiplying the expected number of shares that will be issued by the average market price of Company common stock on the date of grant reduced by the present value of forgone dividends over the vesting term of the award. The fair value is recorded as compensation expense over the vesting term of the award. The performance goal related to the TSR performance shares over the respective performance cycles is the Company’s three-year (or five-year) total shareholder return relative to the three-year (or five-year) total shareholder return of the other companies in the Report Group. Three-year (or five-year) total shareholder return for a given company will be based on the data reported for that company (with the starting and ending stock prices over the performance cycle calculated as the average closing stock price for the prior calendar month and with dividends reinvested in that company’s securities at each ex-dividend date) in the Bloomberg database. The number of these TSR performance shares that will vest and be paid will depend upon the Company’s performance relative to the Report Group and not upon the absolute level of return achieved by the Company. The fair value price at the date of grant for the TSR performance shares is determined using a Monte Carlo simulation technique, which includes a reduction in value for the present value of forgone dividends over the vesting term of the award. This price is multiplied by the number of TSR performance shares awarded, the result of which is recorded as compensation expense over the vesting term of the award. The Company granted 220,778 restricted stock units during the six months ended March 31, 2024. The weighted average fair value of such restricted stock units was $42.44 per share for the six months ended March 31, 2024. 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. These restricted stock units do not entitle the participant to receive dividends during the vesting period. 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. Pursuant to registration statements for the Company's stock award plans, there were 3,842,625 shares available for future grant at March 31, 2024. These shares include shares available for future options, SARs, restricted stock and performance share grants.

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