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Note 5 - Other Investments

12 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

5.	OTHER INVESTMENTS

Midstream has invested less than 1% in the equity interests of the LLC that owns and operates the MVP. The Company accounts for its interest in the LLC under the equity method of accounting given the LLC maintains specific ownership accounts for each investor, and also considering the Company's rights under the LLC management agreement and the Company's involvement as a stakeholder of the MVP. The Company has been using the equity method since the inception of its investment in fiscal 2016. The MVP entered commercial operation on June 14, 2024 and commenced long-term firm capacity obligations on July 1, 2024.

AFUDC attributable to MVP was recognized during the construction phase, and is included in the equity in earnings of unconsolidated affiliate in the tables below. AFUDC on the main pipeline ceased in June 2024 when MVP went into commercial operations; large expansions and improvement projects will give rise to AFUDC in the future.

The Company participates in the earnings of the LLC proportionate to its level of investment, favorably adjusted for a basis difference between the Company's capital account and its carrying value that arose when the Company recorded an other-than-temporary impairment of its investment in 2022. This basis difference amortization is a favorable non-cash adjustment to income over the book life of the MVP, which is 40 years. The Company's share of earnings from the LLC and the basis difference amortization are presented under equity in earnings of unconsolidated affiliate on the consolidated statements of income. The Company received four quarterly cash distributions totaling approximately $3.6 million from the LLC during fiscal 2025 and expects future quarterly distributions to be of a similar magnitude to those received to date.

Midstream assesses the value of its investment in the LLC on at least a quarterly basis, and no impairment indicators were identified in fiscal 2025 or 2024.

Funding for Midstream's investments has been provided through equity contributions from Resources and unsecured promissory notes as detailed in Note 7.

The investments in the LLC are included in the consolidated balance sheets as follows:

		*September 30*
Balance Sheet location:		*2025*				*2024*
Other Assets:
MVP		$	20,538,437			$	20,948,347
Southgate			185,260				108,875
Investment in unconsolidated affiliates		$	20,723,697			$	21,057,222

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

		*September 30*
		*2025*				*2024*
Cash investment		$	76,385			$	18,258
Equity in earnings of unconsolidated affiliate			3,234,632				3,851,871
Distributions from unconsolidated affiliate			(3,644,542	)			—
Change in investment in unconsolidated affiliates		$	(333,525	)		$	3,870,129

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*
		*Years Ended September 30*
		*2025*				*2024*
Revenue		$	563,535,710			$	143,052,597
Operating expenses			(290,825,244	)			(78,822,028	)
AFUDC			6,133,873				343,922,690
Other income, net			119,761				9,900,128
Net income		$	278,964,100			$	418,053,387

		*Balance Sheets*
		*September 30*
		*2025*				*2024*
Assets:
Current assets		$	173,283,635			$	263,966,727
Construction work in progress			—				1,568,267
Property, plant and equipment, net			9,418,928,665				9,522,815,742
Other assets			1,789,092				13,732,299
Total assets		$	9,594,001,392			$	9,802,083,035

Liabilities and Equity:
Current liabilities		$	40,148,017			$	168,645,751
Noncurrent liabilities			1,084,072				68,965
Capital			9,552,769,303				9,633,368,319
Total liabilities and equity		$	9,594,001,392			$	9,802,083,035