XML 25 R14.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Note 6 - Other Investments | 3 Months Ended
--- | ---
Dec. 31, 2023
Notes to Financial Statements |
Equity Method Investments and Joint Ventures Disclosure [Text Block] |
6. | Other Investments
Midstream owns a less than 1% equity investment in the LLC constructing the MVP. Midstream is also a less than 1% investor, accounted for under the cost method, in Southgate. Since inception, the MVP has encountered various legal and regulatory issues that have substantially delayed the completion of the project, including a period in 2022 where work on the projected was halted. With the passage of the FRA and certain judicial rulings in mid-2023, construction work was restarted. While under construction, AFUDC has provided the majority of the income recognized by Midstream. The LLC temporarily suspended accruing AFUDC on the project for portions of prior periods. AFUDC accruals resumed in June 2023 when construction activities restarted. The amount of AFUDC recognized during the current and prior year is included in the equity in earnings of unconsolidated affiliate in the tables below. As the MVP project nears completion, AFUDC on completed segments will cease and will only be recorded on areas still being constructed. Midstream reassesses the value of its investment in the LLC on at least a quarterly basis, and no impairment indicators were identified in fiscal 2023 or during the first fiscal quarter of 2024. As noted above, developments in 2023 on the legislative and legal fronts were favorable. The MVP project is not yet completed and adverse developments, as well as potential macroeconomic factors related to interest rates, cost increases, or other unanticipated events could erode fair value leading to new indicators or impairment. Funding for Midstream's investments has been provided through equity contributions from Resources and unsecured promissory notes as detailed in Note 9. Midstream expects to refinance the notes maturing in 2024. The Company will participate in the earnings generated from the transportation of natural gas through both pipelines proportionate to its level of investment once the pipelines are placed in service. Investment balances of MVP and Southgate, as of December 31, 2023 and September 30, 2023, are reflected in the table below:
Balance Sheet location: |  | December 31, 2023 |  |  | September 30, 2023 |
Other Assets: |  |  |  |  |  |  |  |
MVP |  | $ | 18,564,311 |  |  | $ | 17,096,476 |
Southgate |  |  | 90,617 |  |  |  | 90,617 |
Investment in unconsolidated affiliates |  | $ | 18,654,928 |  |  | $ | 17,187,093 |
|  | Three Months Ended December 31, |
Income Statement location: |  |  | 2023 |  |  |  | 2022 |
Equity in earnings of unconsolidated affiliate |  | $ | 1,467,835 |  |  | $ | 1,232 |
|  | December 31, 2023 |  |  | September 30, 2023 |
Undistributed earnings, net of income taxes, of MVP in retained earnings, excluding impairment |  | $ | 10,773,811 |  |  | $ | 9,683,797 |
The undistributed earnings does not include the impairment of the investment in the LLC. The change in the investment in unconsolidated affiliates is provided below:
|  | Three Months Ended December 31, |
|  | 2023 |  |  | 2022 |
Cash investment |  | $ | — |  |  | $ | 818,178 |
Change in accrued capital calls |  |  | — |  |  |  | 39,466 |
Equity in earnings of unconsolidated affiliate |  |  | 1,467,835 |  |  |  | 1,232 |
Change in investment in unconsolidated affiliates |  | $ | 1,467,835 |  |  | $ | 858,876 |
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, |
|  | 2023 |  |  | 2022 |
AFUDC |  | $ | 158,562,141 |  |  | $ | — |
Other income, net |  |  | 2,663,569 |  |  |  | 160,472 |
Net income |  | $ | 161,225,710 |  |  | $ | 160,472 |
|  | Balance Sheets |
|  | December 31, 2023 |  |  | September 30, 2023 |
Assets: |  |  |  |  |  |  |  |
Current assets |  | $ | 349,417,551 |  |  | $ | 795,787,358 |
Construction work in progress |  |  | 8,468,379,830 |  |  |  | 7,499,128,254 |
Other assets |  |  | 12,160,170 |  |  |  | 11,639,586 |
Total assets |  | $ | 8,829,957,551 |  |  | $ | 8,306,555,198 |
Liabilities and Equity: |  |  |  |  |  |  |  |
Current liabilities |  | $ | 371,508,693 |  |  | $ | 236,947,158 |
Capital |  |  | 8,458,448,858 |  |  |  | 8,069,608,040 |
Total liabilities and equity |  | $ | 8,829,957,551 |  |  | $ | 8,306,555,198 |

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
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 -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 323 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481543/323-740-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org//323/tableOfContent + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration