Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Mar. 31, 2014 | Apr. 30, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Entity Registrant Name | 'RGC RESOURCES INC | ' |
Entity Central Index Key | '0001069533 | ' |
Current Fiscal Year End Date | '--09-30 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 4,717,221 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $3,771,024 | $2,846,224 |
Accounts receivable (less allowance for uncollectibles of $325,668 and $68,539, respectively) | 12,785,071 | 3,729,106 |
Materials and supplies | 819,288 | 760,781 |
Gas in storage | 1,994,712 | 10,316,240 |
Prepaid income taxes | 0 | 836,966 |
Deferred income taxes | 3,331,583 | 2,852,073 |
Other | 1,382,565 | 866,646 |
Total current assets | 24,084,243 | 22,208,036 |
UTILITY PROPERTY: | ' | ' |
In service | 148,909,617 | 144,388,721 |
Accumulated depreciation and amortization | -49,809,021 | -48,653,487 |
In service, net | 99,100,596 | 95,735,234 |
Construction work in progress | 3,747,395 | 2,001,315 |
Utility plant, net | 102,847,991 | 97,736,549 |
OTHER ASSETS: | ' | ' |
Regulatory assets | 4,439,672 | 4,474,111 |
Other | 71,170 | 108,005 |
Total other assets | 4,510,842 | 4,582,116 |
TOTAL ASSETS | 131,443,076 | 124,526,701 |
CURRENT LIABILITIES: | ' | ' |
Current maturities of long-term debt | 1,600,000 | 0 |
Note payable | 15,000,000 | 15,000,000 |
Dividends payable | 872,686 | 847,736 |
Accounts payable | 6,879,173 | 5,723,107 |
Customer credit balances | 385,505 | 1,277,515 |
Income taxes payable | 884,617 | 0 |
Customer deposits | 1,624,021 | 1,476,451 |
Accrued expenses | 2,947,992 | 2,118,182 |
Over-recovery of gas costs | 2,124,648 | 1,027,303 |
Fair value of marked-to-market transactions | 1,556,872 | 1,986,695 |
Total current liabilities | 33,875,514 | 29,456,989 |
LONG-TERM DEBT | 11,400,000 | 13,000,000 |
DEFERRED CREDITS AND OTHER LIABILITIES: | ' | ' |
Asset retirement obligations | 4,624,217 | 4,525,355 |
Regulatory cost of retirement obligations | 8,498,605 | 8,180,173 |
Benefit plan liabilities | 5,550,113 | 5,582,073 |
Deferred income taxes and investment tax credits | 14,691,802 | 14,279,689 |
Total deferred credits and other liabilities | 33,364,737 | 32,567,290 |
STOCKHOLDERS’ EQUITY: | ' | ' |
Common stock, $5 par value; authorized 10,000,000 shares; issued and outstanding 4,716,904 and 4,709,326, respectively | 23,584,520 | 23,546,630 |
Preferred stock, no par, authorized 5,000,000 shares; no shares issued and outstanding | 0 | 0 |
Capital in excess of par value | 8,161,363 | 8,003,787 |
Retained earnings | 22,928,533 | 20,103,239 |
Accumulated other comprehensive loss | -1,871,591 | -2,151,234 |
Total stockholders’ equity | 52,802,825 | 49,502,422 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $131,443,076 | $124,526,701 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for uncollectibles | $325,668 | $68,539 |
Common stock, par value (in dollars per share) | $5 | $5 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 4,716,904 | 4,709,326 |
Common stock, share outstanding | 4,716,904 | 4,709,326 |
Preferred stock, par value (in dollars per share) | $0 | $0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, share outstanding | 0 | 0 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
OPERATING REVENUES: | ' | ' | ' | ' |
Gas utilities | $32,469,907 | $23,776,730 | $52,230,894 | $42,235,469 |
Other | 230,058 | 398,908 | 480,265 | 686,761 |
Total operating revenues | 32,699,965 | 24,175,638 | 52,711,159 | 42,922,230 |
COST OF SALES: | ' | ' | ' | ' |
Gas utilities | 22,430,550 | 14,345,478 | 34,102,544 | 24,995,939 |
Other | 108,290 | 244,433 | 244,498 | 404,081 |
Total cost of sales | 22,538,840 | 14,589,911 | 34,347,042 | 25,400,020 |
GROSS MARGIN | 10,161,125 | 9,585,727 | 18,364,117 | 17,522,210 |
OTHER OPERATING EXPENSES: | ' | ' | ' | ' |
Operations and maintenance | 3,424,140 | 3,253,269 | 6,767,490 | 6,758,112 |
General taxes | 417,164 | 398,638 | 805,361 | 759,715 |
Depreciation and amortization | 1,198,799 | 1,120,472 | 2,397,598 | 2,240,944 |
Total other operating expenses | 5,040,103 | 4,772,379 | 9,970,449 | 9,758,771 |
OPERATING INCOME | 5,121,022 | 4,813,348 | 8,393,668 | 7,763,439 |
OTHER INCOME (EXPENSE), Net | -45,756 | -575 | -70,891 | 16,467 |
INTEREST EXPENSE | 455,657 | 454,853 | 920,110 | 914,314 |
INCOME BEFORE INCOME TAXES | 4,619,609 | 4,357,920 | 7,402,667 | 6,865,592 |
INCOME TAX EXPENSE | 1,772,814 | 1,659,213 | 2,833,084 | 2,612,732 |
NET INCOME | $2,846,795 | $2,698,707 | $4,569,583 | $4,252,860 |
BASIC EARNINGS PER COMMON SHARE (in dollars per share) | $0.60 | $0.57 | $0.97 | $0.91 |
DILUTED EARNINGS PER COMMON SHARE (in dollars per share) | $0.60 | $0.57 | $0.97 | $0.91 |
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $0.19 | $0.18 | $0.37 | $1.36 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
NET INCOME | $2,846,795 | $2,698,707 | $4,569,583 | $4,252,860 |
Other comprehensive income, net of tax: | ' | ' | ' | ' |
Interest rate SWAPs | 132,267 | 103,348 | 266,663 | 249,554 |
Defined benefit plans | 6,490 | 41,410 | 12,980 | 82,820 |
OTHER COMPREHENSIVE INCOME, NET OF TAX | 138,757 | 144,758 | 279,643 | 332,374 |
COMPREHENSIVE INCOME | $2,985,552 | $2,843,465 | $4,849,226 | $4,585,234 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $4,569,583 | $4,252,860 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 2,494,521 | 2,328,636 |
Cost of removal of utility plant, net | -201,371 | -220,341 |
Stock option grants | 50,208 | 0 |
Changes in assets and liabilities which used cash, exclusive of changes and noncash transactions shown separately | 2,781,248 | 5,978,680 |
Net cash provided by operating activities | 9,694,189 | 12,339,835 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Additions to utility plant and nonutility property | -7,203,480 | -4,441,536 |
Proceeds from disposal of equipment | 8,172 | 2,966 |
Net cash used in investing activities | -7,195,308 | -4,438,570 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from collection of notes | 0 | 1,047,385 |
Borrowings under line-of-credit agreement | 13,893,656 | 4,354,402 |
Repayments under line-of-credit agreement | -13,893,656 | -4,354,402 |
Proceeds from issuance of stock (7,578 and 34,888 shares, respectively) | 145,258 | 661,006 |
Cash dividends paid | -1,719,339 | -6,338,604 |
Net cash used in financing activities | -1,574,081 | -4,630,213 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 924,800 | 3,271,052 |
BEGINNING CASH AND CASH EQUIVALENTS | 2,846,224 | 8,909,871 |
ENDING CASH AND CASH EQUIVALENTS | 3,771,024 | 12,180,923 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ' | ' |
Interest paid | 899,845 | 892,765 |
Income taxes paid (refunded), net | $1,350,000 | ($27,924) |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Parenthetical) | 6 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Statement of Cash Flows [Abstract] | ' | ' |
Issuance of stock, shares | 7,578 | 34,888 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
RGC Resources, Inc. is an energy services company primarily engaged in the sale and distribution of natural gas. The consolidated financial statements include the accounts of RGC Resources, Inc. and its wholly owned subsidiaries (“Resources” or the “Company”): Roanoke Gas Company; Diversified Energy Company; and RGC Ventures of Virginia, Inc. | |
In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly Resources financial position as of March 31, 2014 and the results of its operations and comprehensive income for the three months and six months ended March 31, 2014 and 2013 and its cash flows for the six months ended March 31, 2014 and 2013. The results of operations for the three months and six months ended March 31, 2014 are not indicative of the results to be expected for the fiscal year ending September 30, 2014 as quarterly earnings are affected by the highly seasonal nature of the business and weather conditions generally result in greater earnings during the winter months. | |
The unaudited condensed consolidated interim financial statements and condensed notes are presented as permitted under the rules and regulations of the Securities and Exchange Commission. Pursuant to those rules, certain information and note disclosures normally included in the annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted, although the Company believes that the disclosures made are adequate to make the information not misleading. Therefore, the condensed consolidated financial statements and condensed notes should be read in conjunction with the financial statements and notes contained in the Company’s Form 10-K. The September 30, 2013 balance sheet was included in the Company’s audited financial statements on Form 10-K. | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
The Company’s significant accounting policies are described in Note 1 to the consolidated financial statements in Form 10-K for the year ended September 30, 2013. Newly adopted and newly issued accounting standards are discussed below. | |
Recently Adopted Accounting Standards | |
In June 2011, the FASB issued guidance under FASB ASC No. 220 – Comprehensive Income that defines the presentation of Comprehensive Income in the financial statements. According to the guidance, an entity may present a single continuous statement of comprehensive income or two separate statements – a statement of income and a statement of other comprehensive income that immediately follows the statement of income. In either presentation, the entity is required to present on the face of the financial statement the components of other comprehensive income including the reclassification adjustment for items that are reclassified from other comprehensive income to net income. In December 2011, the FASB issued additional guidance under FASB ASC No. 220 that deferred the effective date of earlier guidance with regard to the presentation of reclassifications of items out of accumulated other comprehensive income. All other provisions of the original guidance remain in effect. In February 2013, the FASB issued additional guidance regarding the reporting of amounts reclassified out of accumulated other comprehensive income. Under the new provisions, an entity must present the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income. The disclosures required under this guidance are provided in Note 5 below. | |
Recently Issued Accounting Standards | |
Other accounting standards that have been issued by the FASB or other standard-setting bodies are not currently applicable to the Company or are not expected to have a material impact on the Company’s financial position, results of operations and cash flows. |
Rates_and_Regulatory_Matters
Rates and Regulatory Matters | 6 Months Ended |
Mar. 31, 2014 | |
Regulated Operations [Abstract] | ' |
Rates and Regulatory Matters | ' |
Rates and Regulatory Matters | |
The State Corporation Commission of Virginia (“SCC”) exercises regulatory authority over the natural gas operations of Roanoke Gas. Such regulation encompasses terms, conditions, and rates to be charged to customers for natural gas service; safety standards; extension of service; and accounting and depreciation. | |
On November 1, 2013, Roanoke Gas Company placed into effect new base rates, subject to refund, that would provide for approximately $1,664,000 in additional annual non-gas revenues. On March 17, 2014, the Company reached a stipulated agreement with the SCC staff that would provide $887,062 in annual non-gas revenues. A hearing was held on March 25, 2014 approving the stipulation and a final order by the SCC is pending. The Company has recorded a provision for refund, including interest associated with customer billings, for the difference between the rates placed into effect on November 1, 2013 and the amount agreed to in the stipulation. Refunds to customers will be completed after the receipt of the final order. | |
On August 16, 2013, the Company filed an application for a modification to the SAVE (Steps to Advance Virginia's Energy) Plan and Rider. The original SAVE Plan and Rider were approved by the SCC through an order issued on August 29, 2012. The original SAVE Plan was designed to facilitate the accelerated replacement of aging natural gas infrastructure assets by providing a mechanism for the Company to recover the related depreciation and expenses and return on rate base of the additional capital investment without the filing of a formal application for an increase in non-gas base rates. Under the original filing, the SAVE Plan primarily covered replacement of the Company's bare steel and cast iron natural gas distribution pipe. Under the modification, the Company sought to include two unique projects; the replacement of the boil off compressor at the Company's liquefied natural gas (LNG) plant and modifications to the natural gas transfer station located in Gala, VA, in the 2014 SAVE Plan year. These replacements will enhance the safety and reliability of the Company's gas distribution system. On December 9, 2013, the Company received SCC approval to implement SAVE Rider rates effective January 1, 2014 to begin recovering the costs related to the pipeline replacement, installation of a new LNG boil off compressor and modifications to the natural gas transfer station. | |
Roanoke Gas Company has in place a weather normalization adjustment mechanism (“WNA”) based on a weather measurement band around the most recent 30-year temperature average. The WNA provides for a weather band of 3% above or below the 30-year temperature average whereby the Company would recover from its customers the lost margin (excluding gas costs) from the impact of weather that is more than 3% warmer than the 30-year average or refund to customers the excess earned from weather that is more than 3% colder than the 30-year average. As of March 31, 2014, the total heating degree days (an industry measure by which the average daily temperature falls below 65 degrees Fahrenheit) for the current WNA period of April 2013 through March 2014 were approximately 10% more than the 30-year average. As the number of heating degree days fell outside the 3% weather band, the Company accrued a refund of approximately $719,000 for the difference in margin realized for weather that was between 10% and 3% colder than the 30-year average. The Company expects to refund the excess margin during its May billing cycle. There was no WNA recognized for the prior WNA period extending from April 2012 through March 2013 as total heating degree days were within the 3% weather band. The Company had accrued an estimated WNA of $182,000 as of December 31, 2012 as weather for the nine-month period was more than 3% warmer than normal. However, this accrual was reversed in the quarter ended March 31, 2013. The Company applied the provisions of FASB ASC No. 980, Regulated Operations, in recording the WNA. |
ShortTerm_Debt
Short-Term Debt | 6 Months Ended |
Mar. 31, 2014 | |
Short-term Debt [Abstract] | ' |
Short-Term Debt | ' |
Short-Term Debt | |
The Company and Wells Fargo Bank entered into a new unsecured line-of-credit agreement dated March 31, 2014. The new agreement maintained the same variable interest rate based on 30 day LIBOR plus 100 basis points and availability fee of 15 basis points as the expiring agreement. The agreement also includes multi-tiered borrowing limits to accommodate seasonal borrowing demands and to minimize borrowing costs. The Company’s total available borrowing limits during the term of the line-of-credit agreement range from $1,000,000 to $19,000,000. The line-of-credit agreement will expire March 31, 2015, unless extended. The Company anticipates being able to extend or replace the credit line upon expiration. As of March 31, 2014, the Company had no outstanding balance under its line-of-credit agreement. | |
The Company also executed an unsecured promissory note dated March 31, 2014 in the amount of $15,000,000. This note essentially extends the maturity date of the prior note to March 31, 2015 and retains all other terms and conditions provided for in the original promissory note. The Company anticipates being able to renew this note on comparable terms as currently in place until such time the note co-terminates with the corresponding interest rate swap. |
Derivatives_and_Hedging
Derivatives and Hedging | 6 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||
Derivatives and Hedging | ' | |||||||
Derivatives and Hedging | ||||||||
The Company’s risk management policy allows management to enter into derivatives for the purpose of managing the commodity and financial market risks of its business operations. The Company’s risk management policy specifically prohibits the use of derivatives for speculative purposes. The key market risks that the Company seeks to hedge include the price of natural gas and the cost of borrowed funds. | ||||||||
The Company has two interest rate swaps associated with its variable rate notes. The first swap relates to the $15,000,000 term note originally issued in November 2005 and most recently renewed as a one year term loan due March 31, 2015 as described in Note 3. This swap essentially converts the floating rate note based upon LIBOR into fixed rate debt with a 5.74% effective interest rate. The second swap relates to the $5,000,000 variable rate note issued in October 2008. This swap converts the variable rate note based on LIBOR into a fixed rate debt with a 5.79% effective interest rate. Both swaps qualify as cash flow hedges with changes in fair value reported in other comprehensive income. No portion of either interest rate swap was deemed ineffective during the periods presented. | ||||||||
The table below reflects the fair values of the derivative instruments and their corresponding classification in the condensed consolidated balance sheets under the current liabilities caption of “Fair value of marked-to-market transactions” as of March 31, 2014 and September 30, 2013: | ||||||||
March 31, | September 30, | |||||||
2014 | 2013 | |||||||
Derivatives designated as hedging instruments: | ||||||||
Interest rate swaps | $ | 1,556,872 | $ | 1,986,695 | ||||
The table in Note 5 reflects the effect on income and other comprehensive income of the Company’s cash flow hedges. | ||||||||
Based on the current interest rate environment, management estimates that approximately $942,000 of the fair value on the interest rate hedges will be reclassified from other comprehensive loss into interest expense on the income statement over the next 12 months. Changes in LIBOR rates during this period could significantly change the amount estimated to be reclassified to expense as well as the fair value of the interest rate hedges. |
Comprehensive_Income
Comprehensive Income | 6 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Comprehensive Income | ' | |||||||||||
Comprehensive Income | ||||||||||||
A summary of other comprehensive income and loss is provided below: | ||||||||||||
Before-Tax | Tax | Net-of-Tax | ||||||||||
Amount | (Expense) | Amount | ||||||||||
or Benefit | ||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||
Interest rate swaps: | ||||||||||||
Unrealized losses | $ | (23,831 | ) | $ | 9,047 | $ | (14,784 | ) | ||||
Transfer of realized losses to interest expense | 237,026 | (89,975 | ) | 147,051 | ||||||||
Net interest rate SWAPs | 213,195 | (80,928 | ) | 132,267 | ||||||||
Defined benefit plans: | ||||||||||||
Amortization of actuarial losses | 10,461 | (3,971 | ) | 6,490 | ||||||||
Amortization of transition obligation | — | — | — | |||||||||
Net defined benefit plans | 10,461 | (3,971 | ) | 6,490 | ||||||||
Other comprehensive income | $ | 223,656 | $ | (84,899 | ) | $ | 138,757 | |||||
Three Months Ended March 31, 2013 | ||||||||||||
Interest rate swaps: | ||||||||||||
Unrealized losses | $ | (67,899 | ) | $ | 25,774 | $ | (42,125 | ) | ||||
Transfer of realized losses to interest expense | 234,483 | (89,010 | ) | 145,473 | ||||||||
Net interest rate SWAPs | 166,584 | (63,236 | ) | 103,348 | ||||||||
Defined benefit plans: | ||||||||||||
Amortization of actuarial losses | 54,973 | (20,868 | ) | 34,105 | ||||||||
Amortization of transition obligation | 11,774 | (4,469 | ) | 7,305 | ||||||||
Net defined benefit plans | 66,747 | (25,337 | ) | 41,410 | ||||||||
Other comprehensive income | $ | 233,331 | $ | (88,573 | ) | $ | 144,758 | |||||
Before-Tax | Tax | Net-of-Tax | ||||||||||
Amount | (Expense) | Amount | ||||||||||
or Benefit | ||||||||||||
Six Months Ended March 31, 2014 | ||||||||||||
Interest rate swaps: | ||||||||||||
Unrealized losses | $ | (48,919 | ) | $ | 18,570 | $ | (30,349 | ) | ||||
Transfer of realized losses to interest expense | 478,742 | (181,730 | ) | 297,012 | ||||||||
Net interest rate SWAPs | 429,823 | (163,160 | ) | 266,663 | ||||||||
Defined benefit plans: | ||||||||||||
Amortization of actuarial losses | 20,922 | (7,942 | ) | 12,980 | ||||||||
Amortization of transition obligation | — | — | — | |||||||||
Net defined benefit plans | 20,922 | (7,942 | ) | 12,980 | ||||||||
Other comprehensive income | $ | 450,745 | $ | (171,102 | ) | $ | 279,643 | |||||
Six Months Ended March 31, 2013 | ||||||||||||
Interest rate swaps: | ||||||||||||
Unrealized losses | $ | (70,517 | ) | $ | 26,768 | $ | (43,749 | ) | ||||
Transfer of realized losses to interest expense | 472,765 | (179,462 | ) | 293,303 | ||||||||
Net interest rate SWAPs | 402,248 | (152,694 | ) | 249,554 | ||||||||
Defined benefit plans: | ||||||||||||
Amortization of actuarial losses | 109,946 | (41,736 | ) | 68,210 | ||||||||
Amortization of transition obligation | 23,548 | (8,938 | ) | 14,610 | ||||||||
Net defined benefit plans | 133,494 | (50,674 | ) | 82,820 | ||||||||
Other comprehensive income | $ | 535,742 | $ | (203,368 | ) | $ | 332,374 | |||||
The amortization of actuarial losses and transition obligation is included as a component of net periodic pension and postretirement benefit cost and is included in operations and maintenance expense. | ||||||||||||
Composition of Other Accumulated Comprehensive Income (Loss) | ||||||||||||
Interest Rate | Defined Benefit | Accumulated | ||||||||||
SWAPS | Plans | Other | ||||||||||
Comprehensive | ||||||||||||
Income (Loss) | ||||||||||||
Balance at September 30, 2013 | $ | (1,232,546 | ) | $ | (918,688 | ) | $ | (2,151,234 | ) | |||
Other comprehensive income | 266,663 | 12,980 | 279,643 | |||||||||
Balance at March 31, 2014 | $ | (965,883 | ) | $ | (905,708 | ) | $ | (1,871,591 | ) |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Share | ' | |||||||||||||||
Earnings Per Share | ||||||||||||||||
Basic earnings per common share for the three months and six months ended March 31, 2014 and 2013 were calculated by dividing net income by the weighted average common shares outstanding during the period. Diluted earnings per common share were calculated by dividing net income by the weighted average common shares outstanding during the period plus potential dilutive common shares. A reconciliation of basic and diluted earnings per share is presented below: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net Income | $ | 2,846,795 | $ | 2,698,707 | $ | 4,569,583 | $ | 4,252,860 | ||||||||
Weighted average common shares | 4,713,567 | 4,701,866 | 4,712,000 | 4,689,722 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Options to purchase common stock | 416 | — | 258 | — | ||||||||||||
Diluted average common shares | 4,713,983 | 4,701,866 | 4,712,258 | 4,689,722 | ||||||||||||
Earnings Per Share of Common Stock: | ||||||||||||||||
Basic | $ | 0.6 | $ | 0.57 | $ | 0.97 | $ | 0.91 | ||||||||
Diluted | $ | 0.6 | $ | 0.57 | $ | 0.97 | $ | 0.91 | ||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Roanoke Gas currently holds the only franchises and/or certificates of public convenience and necessity to distribute natural gas in its service area. These franchises are effective through January 1, 2016. Certificates of public convenience and necessity in Virginia are exclusive and are intended for perpetual duration. | |
Due to the nature of the natural gas distribution business, the Company has entered into agreements with both suppliers and pipelines for natural gas commodity purchases, storage capacity and pipeline delivery capacity. The Company obtains most of its regulated natural gas supply from an asset manager. The Company uses an asset manager to assist in optimizing the use of its transportation, storage rights, and gas supply in order to provide a secure and reliable source of natural gas to its customers. The Company also has storage and pipeline capacity contracts to store and deliver natural gas to the Company’s distribution system. Roanoke Gas is served directly by two primary pipelines. These two pipelines deliver all of the natural gas supplied to the Company’s customers. Depending on weather conditions and the level of customer demand, failure of one or both of these transmission pipelines could have a major adverse impact on the Company. |
Employee_Benefit_Plans
Employee Benefit Plans | 6 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Employee Benefit Plans | ' | |||||||||||||||
Employee Benefit Plans | ||||||||||||||||
The Company has both a defined benefit pension plan (the “pension plan”) and a postretirement benefit plan (the “postretirement plan”). The pension plan covers substantially all of the Company’s employees and provides retirement income based on years of service and employee compensation. The postretirement plan provides certain health care and supplemental life insurance benefits to retired employees who meet specific age and service requirements. Net pension plan and postretirement plan expense recorded by the Company is detailed as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Components of net periodic pension cost: | ||||||||||||||||
Service cost | $ | 138,323 | $ | 158,723 | $ | 276,646 | $ | 317,446 | ||||||||
Interest cost | 255,076 | 236,562 | 510,152 | 473,124 | ||||||||||||
Expected return on plan assets | (328,089 | ) | (296,197 | ) | (656,178 | ) | (592,394 | ) | ||||||||
Recognized loss | 34,099 | 144,566 | 68,198 | 289,132 | ||||||||||||
Net periodic pension cost | $ | 99,409 | $ | 243,654 | $ | 198,818 | $ | 487,308 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Components of postretirement benefit cost: | ||||||||||||||||
Service cost | $ | 42,159 | $ | 53,283 | $ | 84,318 | $ | 106,566 | ||||||||
Interest cost | 150,671 | 132,961 | 301,342 | 265,922 | ||||||||||||
Expected return on plan assets | (124,119 | ) | (113,096 | ) | (248,238 | ) | (226,192 | ) | ||||||||
Amortization of unrecognized transition obligation | — | 47,224 | — | 94,448 | ||||||||||||
Recognized loss | 22,379 | 60,437 | 44,758 | 120,874 | ||||||||||||
Net postretirement benefit cost | $ | 91,090 | $ | 180,809 | $ | 182,180 | $ | 361,618 | ||||||||
The Company contributed $300,000 to its pension plan during the six-month period ended March 31, 2014. The Company currently expects to make additional contributions of approximately $200,000 to its pension plan and $500,000 to its postretirement benefit plan prior to the end of its fiscal year. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
FASB ASC No. 820, Fair Value Measurements and Disclosures, established a fair value hierarchy that prioritizes each input to the valuation method used to measure fair value of financial and nonfinancial assets and liabilities that are measured and reported on a fair value basis into one of the following three broad levels: | ||||||||||||||||
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. | ||||||||||||||||
Level 2 – Inputs other than quoted prices in Level 1 that are either for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data by correlation or other means. | ||||||||||||||||
Level 3 – Unobservable inputs for the asset or liability where there is little, if any, market activity for the asset or liability at the measurement date. | ||||||||||||||||
The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). | ||||||||||||||||
The following table summarizes the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as required by existing guidance and the fair value measurements by level within the fair value hierarchy as of March 31, 2014 and September 30, 2013: | ||||||||||||||||
Fair Value Measurements - March 31, 2014 | ||||||||||||||||
Fair | Quoted | Significant | Significant | |||||||||||||
Value | Prices | Other | Unobservable | |||||||||||||
in Active | Observable | Inputs | ||||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Liabilities: | ||||||||||||||||
Natural gas purchases | $ | 576,923 | $ | — | $ | 576,923 | $ | — | ||||||||
Interest rate swaps | 1,556,872 | — | 1,556,872 | — | ||||||||||||
Total | $ | 2,133,795 | $ | — | $ | 2,133,795 | $ | — | ||||||||
Fair Value Measurements - September 30, 2013 | ||||||||||||||||
Fair | Quoted | Significant | Significant | |||||||||||||
Value | Prices | Other | Unobservable | |||||||||||||
in Active | Observable | Inputs | ||||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Liabilities: | ||||||||||||||||
Natural gas purchases | $ | 1,177,521 | $ | — | $ | 1,177,521 | $ | — | ||||||||
Interest rate swaps | 1,986,695 | — | 1,986,695 | — | ||||||||||||
Total | $ | 3,164,216 | $ | — | $ | 3,164,216 | $ | — | ||||||||
Under the asset management contract, a timing difference can exist between the payment for natural gas purchases and the actual receipt of such purchases. Payments are made based on a predetermined monthly volume with the price based on weighted average first of the month index prices corresponding to the month of the scheduled payment. At March 31, 2014 and September 30, 2013, the Company had recorded in accounts payable the estimated fair value of the liability valued at the corresponding first of month index prices for which the liability is expected to be settled. | ||||||||||||||||
The fair value of the interest rate swaps, included in the line item “Fair value of marked-to-market transactions”, is determined by using the counterparty’s proprietary models and certain assumptions regarding past, present and future market conditions. | ||||||||||||||||
The Company’s nonfinancial assets and liabilities that are measured at fair value on a nonrecurring basis consist of its asset retirement obligations. The asset retirement obligations are measured at fair value at initial recognition based on expected future cash flows to settle the obligation. | ||||||||||||||||
The carrying value of cash and cash equivalents, accounts receivable, accounts payable (with the exception of the timing difference under the asset management contract), customer credit balances and customer deposits is a reasonable estimate of fair value due to the short-term nature of these financial instruments. The following table summarizes the fair value of the Company’s financial assets and liabilities that are not adjusted to fair value in the financial statements as of March 31, 2014 and September 30, 2013. | ||||||||||||||||
Fair Value Measurements - March 31, 2014 | ||||||||||||||||
Carrying | Quoted | Significant | Significant | |||||||||||||
Value | Prices | Other | Unobservable | |||||||||||||
in Active | Observable | Inputs | ||||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Liabilities: | ||||||||||||||||
Note payable | $ | 15,000,000 | $ | — | $ | — | $ | 14,953,751 | ||||||||
Current maturities of long-term debt | 1,600,000 | — | — | 1,739,400 | ||||||||||||
Long-term debt | 11,400,000 | — | — | 11,957,602 | ||||||||||||
Total | $ | 28,000,000 | $ | — | $ | — | $ | 28,650,753 | ||||||||
Fair Value Measurements - September 30, 2013 | ||||||||||||||||
Carrying | Quoted | Significant | Significant | |||||||||||||
Value | Prices | Other | Unobservable | |||||||||||||
in Active | Observable | Inputs | ||||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Liabilities: | ||||||||||||||||
Note payable | $ | 15,000,000 | $ | — | $ | — | $ | 14,976,818 | ||||||||
Long-term debt | 13,000,000 | — | — | 13,762,952 | ||||||||||||
Total | $ | 28,000,000 | $ | — | $ | — | $ | 28,739,770 | ||||||||
The fair value of the note payable is estimated by using the interest rate under the Company’s line-of-credit agreement which renewed at the same time as the term note. Both the line-of-credit and term note have a term of one year. The fair value of long-term debt is estimated by discounting the future cash flows of the fixed rate debt at rates extrapolated based on current market conditions. The variable rate long-term debt has interest rate swaps that effectively convert such debt to a fixed rate. The values of the swap agreements are included in the first table above. | ||||||||||||||||
FASB ASC 825, Financial Instruments, requires disclosures regarding concentrations of credit risk from financial instruments. Cash equivalents are investments in high-grade, short-term securities (original maturity less than three months), placed with financially sound institutions. Accounts receivable are from a diverse group of customers including individuals and small and large companies in various industries. As of March 31, 2014 and September 30, 2013, no single customer accounted for more than 5% of the total accounts receivable balance. The Company maintains certain credit standards with its customers and requires a customer deposit if such evaluation warrants. |
Stock_Options_Stock_Options
Stock Options Stock Options | 6 Months Ended |
Mar. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock Options | ' |
Stock Options | |
On December 6, 2013, the Board of Directors granted 17,000 options to certain officers of the Company. In accordance with the Key Employee Stock Option Plan, the grant price of $18.95 was the closing price of the Company's stock on the grant date. The options become exercisable six months from the grant date and expire after ten years from the date of issuance. | |
Fair value at the grant date was $4.43 per option as calculated using the Black-Scholes option pricing model. Compensation expense will be recognized over the six months vesting period. Total compensation expense recognized through March 31, 2014 was $50,208. |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
The Company has evaluated subsequent events through the date the financial statements were issued. There were no items not otherwise disclosed which would have materially impacted the Company’s condensed consolidated financial statements. |
Basis_of_Presentation_Policy
Basis of Presentation (Policy) | 6 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
RGC Resources, Inc. is an energy services company primarily engaged in the sale and distribution of natural gas. The consolidated financial statements include the accounts of RGC Resources, Inc. and its wholly owned subsidiaries (“Resources” or the “Company”): Roanoke Gas Company; Diversified Energy Company; and RGC Ventures of Virginia, Inc. | |
In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly Resources financial position as of March 31, 2014 and the results of its operations and comprehensive income for the three months and six months ended March 31, 2014 and 2013 and its cash flows for the six months ended March 31, 2014 and 2013. The results of operations for the three months and six months ended March 31, 2014 are not indicative of the results to be expected for the fiscal year ending September 30, 2014 as quarterly earnings are affected by the highly seasonal nature of the business and weather conditions generally result in greater earnings during the winter months. | |
The unaudited condensed consolidated interim financial statements and condensed notes are presented as permitted under the rules and regulations of the Securities and Exchange Commission. Pursuant to those rules, certain information and note disclosures normally included in the annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted, although the Company believes that the disclosures made are adequate to make the information not misleading. Therefore, the condensed consolidated financial statements and condensed notes should be read in conjunction with the financial statements and notes contained in the Company’s Form 10-K. The September 30, 2013 balance sheet was included in the Company’s audited financial statements on Form 10-K. | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
The Company’s significant accounting policies are described in Note 1 to the consolidated financial statements in Form 10-K for the year ended September 30, 2013. Newly adopted and newly issued accounting standards are discussed below. | |
Recently Issued Accounting Standards | ' |
Recently Adopted Accounting Standards | |
In June 2011, the FASB issued guidance under FASB ASC No. 220 – Comprehensive Income that defines the presentation of Comprehensive Income in the financial statements. According to the guidance, an entity may present a single continuous statement of comprehensive income or two separate statements – a statement of income and a statement of other comprehensive income that immediately follows the statement of income. In either presentation, the entity is required to present on the face of the financial statement the components of other comprehensive income including the reclassification adjustment for items that are reclassified from other comprehensive income to net income. In December 2011, the FASB issued additional guidance under FASB ASC No. 220 that deferred the effective date of earlier guidance with regard to the presentation of reclassifications of items out of accumulated other comprehensive income. All other provisions of the original guidance remain in effect. In February 2013, the FASB issued additional guidance regarding the reporting of amounts reclassified out of accumulated other comprehensive income. Under the new provisions, an entity must present the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income. The disclosures required under this guidance are provided in Note 5 below. | |
Recently Issued Accounting Standards | |
Other accounting standards that have been issued by the FASB or other standard-setting bodies are not currently applicable to the Company or are not expected to have a material impact on the Company’s financial position, results of operations and cash flows. |
Derivatives_and_Hedging_Tables
Derivatives and Hedging (Tables) | 6 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||
Schedule of Fair Value of Market-to-Market Transactions | ' | |||||||
The table below reflects the fair values of the derivative instruments and their corresponding classification in the condensed consolidated balance sheets under the current liabilities caption of “Fair value of marked-to-market transactions” as of March 31, 2014 and September 30, 2013: | ||||||||
March 31, | September 30, | |||||||
2014 | 2013 | |||||||
Derivatives designated as hedging instruments: | ||||||||
Interest rate swaps | $ | 1,556,872 | $ | 1,986,695 | ||||
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 6 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Schedule of Other Comprehensive Income and Loss | ' | |||||||||||
A summary of other comprehensive income and loss is provided below: | ||||||||||||
Before-Tax | Tax | Net-of-Tax | ||||||||||
Amount | (Expense) | Amount | ||||||||||
or Benefit | ||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||
Interest rate swaps: | ||||||||||||
Unrealized losses | $ | (23,831 | ) | $ | 9,047 | $ | (14,784 | ) | ||||
Transfer of realized losses to interest expense | 237,026 | (89,975 | ) | 147,051 | ||||||||
Net interest rate SWAPs | 213,195 | (80,928 | ) | 132,267 | ||||||||
Defined benefit plans: | ||||||||||||
Amortization of actuarial losses | 10,461 | (3,971 | ) | 6,490 | ||||||||
Amortization of transition obligation | — | — | — | |||||||||
Net defined benefit plans | 10,461 | (3,971 | ) | 6,490 | ||||||||
Other comprehensive income | $ | 223,656 | $ | (84,899 | ) | $ | 138,757 | |||||
Three Months Ended March 31, 2013 | ||||||||||||
Interest rate swaps: | ||||||||||||
Unrealized losses | $ | (67,899 | ) | $ | 25,774 | $ | (42,125 | ) | ||||
Transfer of realized losses to interest expense | 234,483 | (89,010 | ) | 145,473 | ||||||||
Net interest rate SWAPs | 166,584 | (63,236 | ) | 103,348 | ||||||||
Defined benefit plans: | ||||||||||||
Amortization of actuarial losses | 54,973 | (20,868 | ) | 34,105 | ||||||||
Amortization of transition obligation | 11,774 | (4,469 | ) | 7,305 | ||||||||
Net defined benefit plans | 66,747 | (25,337 | ) | 41,410 | ||||||||
Other comprehensive income | $ | 233,331 | $ | (88,573 | ) | $ | 144,758 | |||||
Before-Tax | Tax | Net-of-Tax | ||||||||||
Amount | (Expense) | Amount | ||||||||||
or Benefit | ||||||||||||
Six Months Ended March 31, 2014 | ||||||||||||
Interest rate swaps: | ||||||||||||
Unrealized losses | $ | (48,919 | ) | $ | 18,570 | $ | (30,349 | ) | ||||
Transfer of realized losses to interest expense | 478,742 | (181,730 | ) | 297,012 | ||||||||
Net interest rate SWAPs | 429,823 | (163,160 | ) | 266,663 | ||||||||
Defined benefit plans: | ||||||||||||
Amortization of actuarial losses | 20,922 | (7,942 | ) | 12,980 | ||||||||
Amortization of transition obligation | — | — | — | |||||||||
Net defined benefit plans | 20,922 | (7,942 | ) | 12,980 | ||||||||
Other comprehensive income | $ | 450,745 | $ | (171,102 | ) | $ | 279,643 | |||||
Six Months Ended March 31, 2013 | ||||||||||||
Interest rate swaps: | ||||||||||||
Unrealized losses | $ | (70,517 | ) | $ | 26,768 | $ | (43,749 | ) | ||||
Transfer of realized losses to interest expense | 472,765 | (179,462 | ) | 293,303 | ||||||||
Net interest rate SWAPs | 402,248 | (152,694 | ) | 249,554 | ||||||||
Defined benefit plans: | ||||||||||||
Amortization of actuarial losses | 109,946 | (41,736 | ) | 68,210 | ||||||||
Amortization of transition obligation | 23,548 | (8,938 | ) | 14,610 | ||||||||
Net defined benefit plans | 133,494 | (50,674 | ) | 82,820 | ||||||||
Other comprehensive income | $ | 535,742 | $ | (203,368 | ) | $ | 332,374 | |||||
Schedule of Components of Other Comprehensive Income | ' | |||||||||||
Interest Rate | Defined Benefit | Accumulated | ||||||||||
SWAPS | Plans | Other | ||||||||||
Comprehensive | ||||||||||||
Income (Loss) | ||||||||||||
Balance at September 30, 2013 | $ | (1,232,546 | ) | $ | (918,688 | ) | $ | (2,151,234 | ) | |||
Other comprehensive income | 266,663 | 12,980 | 279,643 | |||||||||
Balance at March 31, 2014 | $ | (965,883 | ) | $ | (905,708 | ) | $ | (1,871,591 | ) |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of Basic and Diluted Earnings Per Share Reconciliation | ' | |||||||||||||||
A reconciliation of basic and diluted earnings per share is presented below: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net Income | $ | 2,846,795 | $ | 2,698,707 | $ | 4,569,583 | $ | 4,252,860 | ||||||||
Weighted average common shares | 4,713,567 | 4,701,866 | 4,712,000 | 4,689,722 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Options to purchase common stock | 416 | — | 258 | — | ||||||||||||
Diluted average common shares | 4,713,983 | 4,701,866 | 4,712,258 | 4,689,722 | ||||||||||||
Earnings Per Share of Common Stock: | ||||||||||||||||
Basic | $ | 0.6 | $ | 0.57 | $ | 0.97 | $ | 0.91 | ||||||||
Diluted | $ | 0.6 | $ | 0.57 | $ | 0.97 | $ | 0.91 | ||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 6 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Defined Benefit Plans [Member] | ' | |||||||||||||||
Schedule of Components of Net Periodic Pension and Postretirement Benefit Cost | ' | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Components of net periodic pension cost: | ||||||||||||||||
Service cost | $ | 138,323 | $ | 158,723 | $ | 276,646 | $ | 317,446 | ||||||||
Interest cost | 255,076 | 236,562 | 510,152 | 473,124 | ||||||||||||
Expected return on plan assets | (328,089 | ) | (296,197 | ) | (656,178 | ) | (592,394 | ) | ||||||||
Recognized loss | 34,099 | 144,566 | 68,198 | 289,132 | ||||||||||||
Net periodic pension cost | $ | 99,409 | $ | 243,654 | $ | 198,818 | $ | 487,308 | ||||||||
Postretirement Benefit Plan [Member] | ' | |||||||||||||||
Schedule of Components of Net Periodic Pension and Postretirement Benefit Cost | ' | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Components of postretirement benefit cost: | ||||||||||||||||
Service cost | $ | 42,159 | $ | 53,283 | $ | 84,318 | $ | 106,566 | ||||||||
Interest cost | 150,671 | 132,961 | 301,342 | 265,922 | ||||||||||||
Expected return on plan assets | (124,119 | ) | (113,096 | ) | (248,238 | ) | (226,192 | ) | ||||||||
Amortization of unrecognized transition obligation | — | 47,224 | — | 94,448 | ||||||||||||
Recognized loss | 22,379 | 60,437 | 44,758 | 120,874 | ||||||||||||
Net postretirement benefit cost | $ | 91,090 | $ | 180,809 | $ | 182,180 | $ | 361,618 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Schedule of Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis | ' | |||||||||||||||
The following table summarizes the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as required by existing guidance and the fair value measurements by level within the fair value hierarchy as of March 31, 2014 and September 30, 2013: | ||||||||||||||||
Fair Value Measurements - March 31, 2014 | ||||||||||||||||
Fair | Quoted | Significant | Significant | |||||||||||||
Value | Prices | Other | Unobservable | |||||||||||||
in Active | Observable | Inputs | ||||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Liabilities: | ||||||||||||||||
Natural gas purchases | $ | 576,923 | $ | — | $ | 576,923 | $ | — | ||||||||
Interest rate swaps | 1,556,872 | — | 1,556,872 | — | ||||||||||||
Total | $ | 2,133,795 | $ | — | $ | 2,133,795 | $ | — | ||||||||
Fair Value Measurements - September 30, 2013 | ||||||||||||||||
Fair | Quoted | Significant | Significant | |||||||||||||
Value | Prices | Other | Unobservable | |||||||||||||
in Active | Observable | Inputs | ||||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Liabilities: | ||||||||||||||||
Natural gas purchases | $ | 1,177,521 | $ | — | $ | 1,177,521 | $ | — | ||||||||
Interest rate swaps | 1,986,695 | — | 1,986,695 | — | ||||||||||||
Total | $ | 3,164,216 | $ | — | $ | 3,164,216 | $ | — | ||||||||
Summary of the Fair Value of Financial Assets and Liabilities Not Adjusted to Fair Value | ' | |||||||||||||||
The following table summarizes the fair value of the Company’s financial assets and liabilities that are not adjusted to fair value in the financial statements as of March 31, 2014 and September 30, 2013. | ||||||||||||||||
Fair Value Measurements - March 31, 2014 | ||||||||||||||||
Carrying | Quoted | Significant | Significant | |||||||||||||
Value | Prices | Other | Unobservable | |||||||||||||
in Active | Observable | Inputs | ||||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Liabilities: | ||||||||||||||||
Note payable | $ | 15,000,000 | $ | — | $ | — | $ | 14,953,751 | ||||||||
Current maturities of long-term debt | 1,600,000 | — | — | 1,739,400 | ||||||||||||
Long-term debt | 11,400,000 | — | — | 11,957,602 | ||||||||||||
Total | $ | 28,000,000 | $ | — | $ | — | $ | 28,650,753 | ||||||||
Fair Value Measurements - September 30, 2013 | ||||||||||||||||
Carrying | Quoted | Significant | Significant | |||||||||||||
Value | Prices | Other | Unobservable | |||||||||||||
in Active | Observable | Inputs | ||||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Liabilities: | ||||||||||||||||
Note payable | $ | 15,000,000 | $ | — | $ | — | $ | 14,976,818 | ||||||||
Long-term debt | 13,000,000 | — | — | 13,762,952 | ||||||||||||
Total | $ | 28,000,000 | $ | — | $ | — | $ | 28,739,770 | ||||||||
Rates_and_Regulatory_Matters_D
Rates and Regulatory Matters (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | |
Dec. 31, 2012 | Mar. 31, 2014 | Mar. 25, 2014 | Nov. 01, 2013 | |
New Base Rates [Member] | ||||
Requested additional non-gas revenue | ' | ' | ' | $1,664,000 |
Approved non-gas revenue increase amount | ' | ' | 887,062 | ' |
WNA weather band percentage | ' | 3.00% | ' | ' |
Heating degree day variance | ' | 10.00% | ' | ' |
Margin billed In excess of WNA weather band refunded or expected to be refunded to customers | ' | 719,000 | ' | ' |
Additional revenues or expected additional revenues to reflect the estimated impact of the WNA | $182,000 | ' | ' | ' |
ShortTerm_Debt_Details
Short-Term Debt (Details) (USD $) | 6 Months Ended | |
Mar. 31, 2014 | Sep. 30, 2013 | |
Short-term Debt [Line Items] | ' | ' |
Issuance date | 31-Mar-14 | ' |
Variable rate description | '30 day LIBOR | ' |
Variable rate basis points | 1.00% | ' |
Availability fee, percent | 0.15% | ' |
Line-of-credit facility, expiration date | 31-Mar-15 | ' |
Borrowings under line-of-credit | $0 | ' |
Unsecured term note | 15,000,000 | 15,000,000 |
Maturity date | 31-Mar-15 | ' |
Minimum [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Line of credit facility, maximum borrowing limit | 1,000,000 | ' |
Maximum [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Line of credit facility, maximum borrowing limit | $19,000,000 | ' |
Derivatives_and_Hedging_Narrat
Derivatives and Hedging (Narrative) (Details) (USD $) | 6 Months Ended |
Mar. 31, 2014 | |
instruments_held | |
Derivative [Line Items] | ' |
Number of interest rate swaps | 2 |
Debt instrument, term | '1 year |
Maturity date | 31-Mar-15 |
Other Comprehensive Income (Loss) [Member] | ' |
Derivative [Line Items] | ' |
Fair value of interest rate hedges | 942,000 |
Note Issued November 2005 [Member] | ' |
Derivative [Line Items] | ' |
Debt instrument, face amount | 15,000,000 |
Issuance date | 1-Nov-05 |
Debt instrument, term | '1 year |
Maturity date | 31-Mar-15 |
Effective interest rate | 5.74% |
Note Issued October 2008 [Member] | Variable Rate [Member] | ' |
Derivative [Line Items] | ' |
Debt instrument, face amount | 5,000,000 |
Issuance date | 1-Oct-08 |
Effective interest rate | 5.79% |
Derivatives_and_Hedging_Schedu
Derivatives and Hedging (Schedule of Fair Value of Market-to-Market Transactions) (Details) (Designated as Hedging Instrument [Member], Cash Flow Hedging [Member], USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ' | ' |
Derivative Instruments [Line Items] | ' | ' |
Interest rate swaps | $1,556,872 | $1,986,695 |
Comprehensive_Income_Schedule_
Comprehensive Income (Schedule of Other Comprehensive Income and Loss) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Before-Tax Amount | ' | ' | ' | ' |
Unrealized losses | ($23,831) | ($67,899) | ($48,919) | ($70,517) |
Transfer of realized losses to interest expense | 237,026 | 234,483 | 478,742 | 472,765 |
Net interest rate SWAPs | 213,195 | 166,584 | 429,823 | 402,248 |
Amortization of actuarial losses | 10,461 | 54,973 | 20,922 | 109,946 |
Amortization of transition obligation | 0 | 11,774 | 0 | 23,548 |
Net defined benefit plans | 10,461 | 66,747 | 20,922 | 133,494 |
OTHER COMPREHENSIVE INCOME, BEFORE TAX | 223,656 | 233,331 | 450,745 | 535,742 |
Tax (Expense) or Benefit | ' | ' | ' | ' |
Unrealized losses | 9,047 | 25,774 | 18,570 | 26,768 |
Transfer of realized losses to interest expense | -89,975 | -89,010 | -181,730 | -179,462 |
Net interest rate SWAPs | -80,928 | -63,236 | -163,160 | -152,694 |
Amortization of actuarial losses | -3,971 | -20,868 | -7,942 | -41,736 |
Amortization of transition obligation | 0 | -4,469 | 0 | -8,938 |
Net defined benefit plans | -3,971 | -25,337 | -7,942 | -50,674 |
OTHER COMPREHENSIVE INCOME, (TAX EXPENSE) OR BENEFIT | -84,899 | -88,573 | -171,102 | -203,368 |
Net-of-Tax Amount | ' | ' | ' | ' |
Unrealized losses | -14,784 | -42,125 | -30,349 | -43,749 |
Transfer of realized losses to interest expense | 147,051 | 145,473 | 297,012 | 293,303 |
Net interest rate SWAPs | 132,267 | 103,348 | 266,663 | 249,554 |
Amortization of actuarial losses | 6,490 | 34,105 | 12,980 | 68,210 |
Amortization of transition obligation | 0 | 7,305 | 0 | 14,610 |
Net defined benefit plans | 6,490 | 41,410 | 12,980 | 82,820 |
OTHER COMPREHENSIVE INCOME, NET OF TAX | $138,757 | $144,758 | $279,643 | $332,374 |
Comprehensive_Income_Schedule_1
Comprehensive Income (Schedule of Components of Accumulated Comprehensive Loss) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Interest Rate SWAPS | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | ($1,232,546) | ' |
Other comprehensive income | 132,267 | 103,348 | 266,663 | 249,554 |
Balance at end of period | -965,883 | ' | -965,883 | ' |
Defined Benefit Plans | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | -918,688 | ' |
Other comprehensive income | 6,490 | 41,410 | 12,980 | 82,820 |
Balance at end of period | -905,708 | ' | -905,708 | ' |
Accumulated Other Comprehensive Income (Loss) | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | -2,151,234 | ' |
Other comprehensive income | 138,757 | 144,758 | 279,643 | 332,374 |
Balance at end of period | ($1,871,591) | ' | ($1,871,591) | ' |
Earnings_Per_Share_Schedule_of
Earnings Per Share (Schedule of Basic and Diluted Earnings Per Share Reconciliation) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income | $2,846,795 | $2,698,707 | $4,569,583 | $4,252,860 |
Weighted average common shares | 4,713,567 | 4,701,866 | 4,712,000 | 4,689,722 |
Effect of dilutive securities: | ' | ' | ' | ' |
Options to purchase common stock (in shares) | 416 | 0 | 258 | 0 |
Diluted average common shares | 4,713,983 | 4,701,866 | 4,712,258 | 4,689,722 |
Earnings Per Share of Common Stock: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.60 | $0.57 | $0.97 | $0.91 |
Diluted (in dollars per share) | $0.60 | $0.57 | $0.97 | $0.91 |
Commitments_and_Contingencies_
Commitments and Contingencies (Narrative) (Details) | 6 Months Ended |
Mar. 31, 2014 | |
pipeline | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Franchise effective date | 1-Jan-16 |
Number of pipelines | 2 |
Employee_Benefit_Plans_Schedul
Employee Benefit Plans (Schedule of Components of Net Periodic Pension and Postretirement Benefit Cost) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Defined Benefit Plans [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | $138,323 | $158,723 | $276,646 | $317,446 |
Interest cost | 255,076 | 236,562 | 510,152 | 473,124 |
Expected return on plan assets | -328,089 | -296,197 | -656,178 | -592,394 |
Recognized loss | 34,099 | 144,566 | 68,198 | 289,132 |
Net periodic/postretirement pension/benefit cost | 99,409 | 243,654 | 198,818 | 487,308 |
Postretirement Benefit Plan [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 42,159 | 53,283 | 84,318 | 106,566 |
Interest cost | 150,671 | 132,961 | 301,342 | 265,922 |
Expected return on plan assets | -124,119 | -113,096 | -248,238 | -226,192 |
Amortization of unrecognized transition obligation | 0 | 47,224 | 0 | 94,448 |
Recognized loss | 22,379 | 60,437 | 44,758 | 120,874 |
Net periodic/postretirement pension/benefit cost | $91,090 | $180,809 | $182,180 | $361,618 |
Employee_Benefit_Plans_Narrati
Employee Benefit Plans (Narrative) (Details) (USD $) | 6 Months Ended |
Mar. 31, 2014 | |
Defined Benefit Plans [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Defined benefit plan, contributions by employer | $300,000 |
Estimated future contribution during remainder of fiscal year | 200,000 |
Postretirement Benefit Plan [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Estimated future contribution during remainder of fiscal year | $500,000 |
Fair_Value_Measurements_Schedu
Fair Value Measurements (Schedule of Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis) (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis and Fair Value Measurement Inputs [Line Items] | ' | ' |
Natural gas purchases | $576,923 | $1,177,521 |
Interest rate swaps | 1,556,872 | 1,986,695 |
Total | 2,133,795 | 3,164,216 |
Quoted Prices in Active Markets (Level 1) [Member] | ' | ' |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis and Fair Value Measurement Inputs [Line Items] | ' | ' |
Natural gas purchases | ' | ' |
Interest rate swaps | ' | ' |
Total | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis and Fair Value Measurement Inputs [Line Items] | ' | ' |
Natural gas purchases | 576,923 | 1,177,521 |
Interest rate swaps | 1,556,872 | 1,986,695 |
Total | 2,133,795 | 3,164,216 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis and Fair Value Measurement Inputs [Line Items] | ' | ' |
Natural gas purchases | ' | ' |
Interest rate swaps | ' | ' |
Total | ' | ' |
Fair_Value_Measurements_Summar
Fair Value Measurements (Summary of the Fair Value of Financial Assets and Liabilities Not Adjusted to Fair Value) (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
Liabilities: | ' | ' |
Current maturities of long-term debt | $1,600,000 | $0 |
Quoted Prices in Active Markets (Level 1) [Member] | ' | ' |
Liabilities: | ' | ' |
Note payable | ' | ' |
Current maturities of long-term debt | ' | ' |
Long-term debt | ' | ' |
Total | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Liabilities: | ' | ' |
Note payable | ' | ' |
Current maturities of long-term debt | ' | ' |
Long-term debt | ' | ' |
Total | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Liabilities: | ' | ' |
Note payable | 14,953,751 | 14,976,818 |
Current maturities of long-term debt | 1,739,400 | ' |
Long-term debt | 11,957,602 | 13,762,952 |
Total | 28,650,753 | 28,739,770 |
Carrying Amount [Member] | ' | ' |
Liabilities: | ' | ' |
Note payable | 15,000,000 | 15,000,000 |
Current maturities of long-term debt | 1,600,000 | ' |
Long-term debt | 11,400,000 | 13,000,000 |
Total | $28,000,000 | $28,000,000 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Sep. 30, 2013 | |
customer | customer | |
Fair Value Disclosures [Abstract] | ' | ' |
Debt instrument, term | '1 year | ' |
Concentration risk, number of customers | 0 | 0 |
Maximum percentage of accounts receivable from a single customer | 5.00% | 5.00% |
Stock_Options_Details
Stock Options (Details) (USD $) | 0 Months Ended | 6 Months Ended | |
Dec. 06, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Options granted | 17,000 | ' | ' |
Grant price (in dollars per share) | $18.95 | ' | ' |
Option vesting period | '6 months | ' | ' |
Option expiration period | '10 years | ' | ' |
Fair value at the grant date (in dollars per share) | $4.43 | ' | ' |
Total compensation expense | ' | $50,208 | $0 |