XML 17 R13.htm IDEA: XBRL DOCUMENT
v3.20.1

Other Investments | 6 Months Ended
--- | ---
Mar. 31, 2020
Equity Method Investments and Joint Ventures [Abstract] |
Other Investments | Other Investments In October 2015, Midstream, acquired an initial 1% equity interest in the MVP, LLC. In November 2019, the Company's Board of Directors approved a pro-rata increase in Midstream's participation that increases its equity interest to approximately 1.03% at the project's completion. Once completed, the MVP will have the capacity to transport approximately 2 million decatherms of natural gas per day. Pipeline construction has been delayed due to Fourth Circuit and FERC actions that suspended previously approved permits. Current activity on the pipeline is restricted to maintenance and restoration activities. As a result, the projected cost of the MVP project has grown to between $5.3 and $5.5 billion with the managing partner still estimating the in-service date as late calendar 2020. Midstream's current estimated total cash contribution is between $55 and $57 million. The Company is utilizing the equity method to account for the transactions and activity of the investment in MVP and is participating in the earnings in proportion to its level of investment. In April 2018, the LLC announced the Southgate project, which is an approximately 74 mile pipeline extending from the MVP in Virginia to delivery points in North Carolina. Midstream is a less than 1% investor in the project, which is being accounted for under the cost method. Total project cost is estimated to be nearly $500 million, of which Midstream's portion is estimated to be approximately $2.5 million. The Southgate in-service date is currently targeted for calendar year 2021, subject to any further delays in the completion of the MVP. Funding for Midstream's investments in the LLC for both the MVP and Southgate projects is being provided through two variable rate unsecured promissory notes under a non-revolving credit agreement, maturing in December 2022, and two additional notes issued in June 2019. See Note 7 for a schedule of debt instruments. The investments in the LLC are included in the condensed consolidated financial statements as follows:
Balance Sheet location of Other Investments: | March 31, 2020 |  | September 30, 2019
Other Assets: |  |  |
MVP | $ | 51,971,127 |  |  | $ | 47,055,426 |
Southgate | 320,033 |  |  | 320,033 |
Investment in unconsolidated affiliates | $ | 52,291,160 |  |  | $ | 47,375,459 |
Current Liabilities: |  |  |
MVP | $ | 1,726,786 |  |  | $ | 4,958,260 |
Southgate | — |  |  | 66,564 |
Capital contributions payable | $ | 1,726,786 |  |  | $ | 5,024,824 |
| Three Months Ended |  | Six Months Ended
Income Statement location of Other Investments: | March 31, 2020 |  | March 31, 2019 |  | March 31, 2020 |  | March 31, 2019
Equity in earnings of unconsolidated affiliate | $ | 1,188,593 |  |  | $ | 698,175 |  |  | $ | 2,282,679 |  |  | $ | 1,261,224 |
| March 31, 2020 |  | September 30, 2019
Undistributed earnings, net of income taxes, of MVP in retained earnings | $ | 4,962,293 |  |  | $ | 3,267,176 |
The change in the investment in unconsolidated affiliates is provided below:
| Six Months Ended
| March 31, 2020 |  | March 31, 2019
Cash investment | $ | 5,931,060 |  |  | $ | 13,304,263 |
Change in accrued capital calls | (3,298,038 | ) |  | (6,796,085 | )
Equity in earnings of unconsolidated affiliates | 2,282,679 |  |  | 1,261,224 |
Change in investment in unconsolidated affiliates | $ | 4,915,701 |  |  | $ | 7,769,402 |
Summary of unaudited financial statements of Mountain Valley Pipeline are presented below. Southgate financial statements, which are accounted for under the cost method, are not included:
| Income Statements
| Three Months Ended |  | Six Months Ended
| March 31, 2020 |  | March 31, 2019 |  | March 31, 2020 |  | March 31, 2019
AFUDC | $ | 117,754,887 |  |  | $ | 66,953,609 |  |  | $ | 227,780,361 |  |  | $ | 121,138,125 |
Other Income (Expense), net | (34,575 | ) |  | 720,935 |  |  | 699,607 |  |  | 3,283,727 |
Net Income | $ | 117,720,312 |  |  | $ | 67,674,544 |  |  | $ | 228,479,968 |  |  | $ | 124,421,852 |
| Balance Sheets
| March 31, 2020 |  | September 30, 2019
Assets: |  |  |
Current Assets | $ | 218,072,899 |  |  | $ | 485,323,892 |
Construction Work in Progress | 5,132,263,805 |  |  | 4,675,267,389 |
Other Assets | 5,752,436 |  |  | 13,190,816 |
Total Assets | $ | 5,356,089,140 |  |  | $ | 5,173,782,097 |
Liabilities and Equity: |  |  |
Current Liabilities | $ | 194,839,985 |  |  | $ | 466,776,233 |
Noncurrent Liabilities | 265,000 |  |  | — |
Capital | 5,160,984,155 |  |  | 4,707,005,864 |
Total Liabilities and Equity | $ | 5,356,089,140 |  |  | $ | 5,173,782,097 |

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

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SX 210.3A-04) -URI http://asc.fasb.org/extlink&oid=116822174&loc=d3e355119-122828 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration