XML 39 R17.htm IDEA: XBRL DOCUMENT
v3.25.3

Financial Instruments | 12 Months Ended
--- | ---
Sep. 30, 2025
Financial Instruments, Owned, at Fair Value, by Type, Alternative [Abstract] |
Financial Instruments | Financial Instruments Long-Term Debt The fair market value of the Company’s debt, as presented in the table below, was determined using a discounted cash flow model, which incorporates the Company’s credit ratings and current market conditions in determining the yield, and subsequently, the fair market value of the debt. Based on these criteria, the fair market value of long-term debt, including current portion, was as follows:
| At September 30
| 2025 Carrying Amount |  | 2025 Fair Value |  | 2024 Carrying Amount |  | 2024 Fair Value
| (Thousands)
Long-Term Debt | $ | 2,682,861 |  |  | $ | 2,696,145 |  |  | $ | 2,688,243 |  |  | $ | 2,656,888 |
The fair value amounts are not intended to reflect principal amounts that the Company will ultimately be required to pay. Carrying amounts for other financial instruments recorded on the Company’s Consolidated Balance Sheets approximate fair value. The fair value of long-term debt was calculated using observable inputs (U.S. Treasuries or SOFR for the risk-free component and company specific credit spread information — generally obtained from recent trade activity in the debt). As such, the Company considers the debt to be Level 2. Any temporary cash investments, notes payable to banks and commercial paper are stated at cost. Temporary cash investments are considered Level 1, while notes payable to banks and commercial paper are considered to be Level 2. Given the short-term nature of the notes payable to banks and commercial paper, the Company believes cost is a reasonable approximation of fair value. Other Investments The components of the Company’s Other Investments are as follows (in thousands):
| At September 30
| 2025 |  | 2024
| (Thousands)
Life Insurance Contracts | $ | 44,478 |  |  | $ | 44,808 |
Equity Mutual Fund | 13,786 |  |  | 19,523 |
Fixed Income Mutual Fund | 10,082 |  |  | 17,374 |
| $ | 68,346 |  |  | $ | 81,705 |
Investments in life insurance contracts are stated at their cash surrender values or net present value. Investments in an equity mutual fund and a fixed income mutual fund are stated at fair value based on quoted market prices with changes in fair value recognized in net income. The insurance contracts and equity mutual fund are primarily informal funding mechanisms for various benefit obligations the Company has to certain employees. The fixed income mutual fund is primarily an informal funding mechanism for certain regulatory obligations that the Company has to Utility segment customers in its Pennsylvania jurisdiction, as discussed in Note F — Regulatory Matters, and for various benefit obligations the Company has to certain employees. Derivative Financial Instruments The Company uses derivative financial instruments to manage commodity price risk in the Integrated Upstream and Gathering segment. The Company enters into over-the-counter no cost collar and swap agreements for natural gas to manage the price risk associated with forecasted sales of natural gas. In addition, the Company also enters into foreign exchange forward contracts to manage the risk of currency fluctuations associated with transportation costs denominated in Canadian currency in the Integrated Upstream and Gathering segment. These instruments are accounted for as cash flow hedges. The duration of the Company’s cash flow hedges does not typically exceed 5 years, and the foreign currency forward contracts also do not exceed 5 years. The Company has presented its net derivative assets and liabilities as “Fair Value of Derivative Financial Instruments” on its Consolidated Balance Sheets at September 30, 2025 and September 30, 2024. Cash Flow Hedges For derivative financial instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative is reported as a component of other comprehensive income (loss) and reclassified into earnings in the period or periods during which the hedged transaction affects earnings. As of September 30, 2025, the Company had 414.3 Bcf of natural gas commodity derivative contracts (swaps and no cost collars) outstanding. As of September 30, 2025, the Company was hedging a total of $44.1 million of forecasted transportation costs denominated in Canadian dollars with foreign currency forward contracts. As of September 30, 2025, the Company had $19.9 million of net hedging gains after taxes included in the accumulated other comprehensive income (loss) balance. Of this amount, it is expected that $35.7 million of unrealized gains after taxes will be reclassified into the Consolidated Statement of Income within the next 12 months as the underlying hedged transactions are recorded in earnings. The remaining unrealized loss will be reclassified into the Consolidated Statement of Income in subsequent periods.
The Effect of Derivative Financial Instruments on the Statement of Financial Performance for the Year Ended September 30, 2025 and 2024 (Dollar Amounts in Thousands)
Derivatives in Cash Flow Hedging Relationships |  | Amount of Derivative Gain or (Loss) Recognized in Other Comprehensive Income (Loss) on the Consolidated Statement of Comprehensive Income (Loss) for the Year Ended September 30, |  | Location of Derivative Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheet into the Consolidated Statement of Income |  | Amount of Derivative Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheet into the Consolidated Statement of Income for the Year Ended September 30,
|  | 2025 |  | 2024 |  |  |  | 2025 |  | 2024
Commodity Contracts |  | $ | (1,795) |  |  | $ | 286,392 |  |  | Operating Revenue |  | $ | 46,957 |  |  | $ | 217,012 |
Foreign Currency Contracts |  | (1,371) |  |  | 502 |  |  | Operating Revenue |  | (1,066) |  |  | (357) |
Total |  | $ | (3,166) |  |  | $ | 286,894 |  |  |  |  | $ | 45,891 |  |  | $ | 216,655 |
Credit Risk The Company may be exposed to credit risk on any of the derivative financial instruments that are in a gain position. Credit risk relates to the risk of loss that the Company would incur as a result of nonperformance by counterparties pursuant to the terms of their contractual obligations. To mitigate such credit risk, management performs a credit check, and then on a quarterly basis monitors counterparty credit exposure. The majority of the Company’s counterparties are financial institutions and energy traders. The Company has over-the-counter swap positions, no cost collars and applicable foreign currency forward contracts with eighteen counterparties of which thirteen are in a net gain position. On average, the Company had $3.0 million of credit exposure per counterparty in a gain position at September 30, 2025. The maximum credit exposure per counterparty in a gain position at September 30, 2025 was $8.7 million. As of September 30, 2025, no collateral was received from the counterparties by the Company. The Company’s gain position on such derivative financial instruments had not exceeded the established thresholds at which the counterparties would be required to post collateral, nor had the counterparties’ credit ratings declined to levels at which the counterparties were required to post collateral. Certain counterparties to the Company’s outstanding derivative instrument contracts (specifically the over-the-counter swaps, over-the-counter no cost collars and applicable foreign currency forward contracts) had a common credit-risk related contingency feature. In the event the Company’s credit rating increases or falls below a certain threshold (applicable debt ratings), the available credit that could be extended to the Company when it is in a derivative financial liability position would either increase or decrease. A decline in the Company’s credit rating, in and of itself, would not cause the Company to be required to post or increase the level of its hedging collateral deposits (in the form of cash deposits, letters of credit or treasury debt instruments). If the Company’s outstanding derivative instrument contracts with a credit-risk contingency feature were in a liability position (or if the liability were larger) and/or the Company’s credit rating declined, then hedging collateral deposits or an increase to such deposits could be required. At September 30, 2025, the fair market value of the derivative financial instrument liabilities with a credit-risk related contingency feature was $1.9 million according to the Company’s internal model (discussed in Note I — Fair Value Measurements) and no hedging collateral deposits were required to be posted by the Company at September 30, 2025. Depending on the movement of commodity prices in the future, it is possible that these liability positions could swing into asset positions, at which point the Company would be exposed to credit risk on its derivative financial instruments. In that case, the Company’s counterparties could be required to post hedging collateral deposits. The Company’s requirement to post hedging collateral deposits and the Company’s right to receive hedging collateral deposits is based on the fair value determined by the Company’s counterparties, which may differ from the Company’s assessment of fair value.

X
- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 825 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/825/tableOfContent + Details
Name: | us-gaap_FinancialInstrumentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FinancialInstrumentsOwnedAtFairValueByTypeAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration