XML 24 R13.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Note 5 - Other Investments | 3 Months Ended
--- | ---
Dec. 31, 2024
Notes to Financial Statements |
Equity Method Investments and Joint Ventures Disclosure [Text Block] |
5. | Other Investments
Midstream owns a less than 1% equity investment in 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. The Company has been using the equity method since the inception of its investment in fiscal 2016. Following receipt of authorization from the FERC, the MVP entered commercial operation on June 14, 2024 and became available for interruptible or short-term firm transportation service. On July 1, 2024, the MVP commenced long-term firm capacity obligations. Midstream is also a less than 1% investor, accounted for under the cost method, in Southgate, which is in the design and permitting phase. Completion of the Southgate project is targeted for 2028. While under construction, AFUDC provided the majority of the income recognized by Midstream. The amount of AFUDC recognized during the prior year was included in the equity in earnings of unconsolidated affiliate in the tables below. AFUDC ceased in June 2024 when the pipeline went into commercial operation. The Company participates in the earnings of the LLC proportionate to its level of investment. With the MVP now in operation, the Company recognizes its share of earnings from the LLC, 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 operational 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 condensed consolidated statements of income. The Company received a quarterly cash distribution of approximately $800,000 from the LLC during the three months ended December 31, 2024 and expects future quarterly distributions to be of a similar amount. 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. Investment balances of MVP and Southgate, as of December 31, 2024 and September 30, 2024, are reflected in the table below:
Balance Sheet location: |  | December 31, 2024 |  |  | September 30, 2024 |
Other Assets: |  |  |  |  |  |  |  |
MVP |  | $ | 21,000,744 |  |  | $ | 20,948,347 |
Southgate |  |  | 133,242 |  |  |  | 108,875 |
Investment in unconsolidated affiliates |  | $ | 21,133,986 |  |  | $ | 21,057,222 |
The change in the investment in unconsolidated affiliates is provided below:
|  | Three Months Ended December 31, |
|  | 2024 |  |  | 2023 |
Cash investment |  | $ | 17,738 |  |  | $ | — |
Change in accrued capital calls |  |  | 6,629 |  |  |  | — |
Equity in earnings of unconsolidated affiliate |  |  | 854,213 |  |  |  | 1,467,835 |
Distribution from unconsolidated affiliate |  |  | (801,816 | ) |  |  | — |
Change in investment in unconsolidated affiliates |  | $ | 76,764 |  |  | $ | 1,467,835 |
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, |
|  | 2024 |  |  | 2023 |
Revenue |  | $ | 140,057,960 |  |  | $ | — |
Operating expenses |  |  | (69,977,209 | ) |  |  | — |
AFUDC |  |  | 26,478 |  |  |  | 158,562,141 |
Other income, net |  |  | 1,851,060 |  |  |  | 2,663,569 |
Net income |  | $ | 71,958,289 |  |  | $ | 161,225,710 |
|  | Balance Sheets |
|  | December 31, 2024 |  |  | September 30, 2024 |
Assets: |  |  |  |  |  |  |  |
Current assets |  | $ | 204,028,734 |  |  | $ | 263,966,727 |
Construction work in progress |  |  | 438,091 |  |  |  | 1,568,267 |
Property, plant and equipment, net |  |  | 9,523,496,687 |  |  |  | 9,522,815,742 |
Other assets |  |  | 12,039,796 |  |  |  | 13,732,299 |
Total assets |  | $ | 9,740,003,308 |  |  | $ | 9,802,083,035 |
Liabilities and Equity: |  |  |  |  |  |  |  |
Current liabilities |  | $ | 69,303,304 |  |  | $ | 168,645,751 |
Noncurrent liabilities |  |  | 1,513,803 |  |  |  | 68,965 |
Capital |  |  | 9,669,186,201 |  |  |  | 9,633,368,319 |
Total liabilities and equity |  | $ | 9,740,003,308 |  |  | $ | 9,802,083,035 |

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/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: 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 3: 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 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