XML 23 R13.htm IDEA: XBRL DOCUMENT

Note 5 - Other Investments

3 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

5.	Other Investments

Midstream is an approximately 1% equity investment owner of the LLC constructing the MVP. Due to various legal and regulatory delays, the LLC changed its approach in seeking authorization to cross all remaining streams and wetlands on the project route. It requested individual permits from the U.S. Army Corps of Engineers to cross certain streams and wetlands utilizing open cut techniques and has applied to amend the MVP project's CPCN to seek FERC authority to cross certain streams and wetlands utilizing alternative trenchless construction methods. See Note 15 for additional information regarding Midstream's investment in the LLC.

The LLC temporarily suspended accruing AFUDC on the project beginning January 1, 2021 and through March 31, 2021 due to a temporary reduction in growth construction activities. Beginning April 1, 2021, the LLC resumed accruing a limited amount of AFUDC associated with certain growth construction activities resuming through October 2021. AFUDC accruals were suspended in November 2021 and will resume when growth construction activities restart. The amount of AFUDC recognized during the current and prior period is included in the tables below.

Roanoke Gas will continue to suspend accruing AFUDC on its two gate stations that will interconnect with the MVP until such time as construction activities resume on the respective gate stations. Roanoke Gas recognized $55,981 of AFUDC associated with these gate stations during the fiscal quarter ended December 31, 2020.

Midstream is also a less than 1% investor in the MVP Southgate project, which is being accounted for under the cost method.

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 three additional notes as detailed in Note 7.

The investments in the LLC are included in the accompanying financial statements as follows:

Balance Sheet location:		December 31, 2021				September 30, 2021
Other Assets:
MVP		$	66,461,239			$	64,462,194
Southgate			410,608				405,125
Investment in unconsolidated affiliates		$	66,871,847			$	64,867,319

Current Liabilities:
MVP		$	1,926,918			$	2,139,696
Southgate			2,139				941
Capital contributions payable		$	1,929,057			$	2,140,637

		Three Months Ended
Income Statement location:		December 31, 2021				December 31, 2020
Equity in earnings of unconsolidated affiliate		$	72,127			$	1,356,683

		December 31, 2021				September 30, 2021
Undistributed earnings, net of income taxes, of MVP in retained earnings		$	8,134,589			$	8,081,027

The change in the investment in unconsolidated affiliates is provided below:

		Three Months Ended
		December 31, 2021				December 31, 2020
Cash investment		$	2,143,981			$	2,522,286
Change in accrued capital calls			(211,580	)			(1,064,730	)
Equity in earnings of unconsolidated affiliate			72,127				1,356,683
Change in investment in unconsolidated affiliates		$	2,004,528			$	2,814,239

Summary unaudited financial statements of MVP are presented below. Southgate financial statements, which are accounted for under the cost method, are not included:

		Income Statements
		Three Months Ended
		December 31, 2021				December 31, 2020
AFUDC		$	6,883,069			$	133,757,314
Other expense, net			(45,063	)			(52,608	)
Net income		$	6,838,006			$	133,704,706

		Balance Sheets
		December 31, 2021				September 30, 2021
Assets:
Current assets		$	192,288,454			$	208,961,113
Construction work in progress			6,429,791,662				6,281,991,035
Other assets			2,496,119				980,410
Total assets		$	6,624,576,235			$	6,491,932,558

Liabilities and Equity:
Current liabilities		$	160,282,681			$	200,441,027
Noncurrent liabilities			48,000				13,000
Capital			6,464,245,554				6,291,478,531
Total liabilities and equity		$	6,624,576,235			$	6,491,932,558