Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | RGC RESOURCES INC | |
Entity Central Index Key | 1,069,533 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 7,232,482 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2017 | Sep. 30, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 763,816 | $ 643,252 |
Accounts receivable (less allowance for uncollectibles of $282,829 and $76,934, respectively) | 4,659,087 | 3,478,983 |
Materials and supplies | 983,899 | 824,139 |
Gas in storage | 5,445,275 | 7,436,785 |
Prepaid income taxes | 0 | 1,550,836 |
Other | 1,273,224 | 1,548,329 |
Total current assets | 13,125,301 | 15,482,324 |
UTILITY PROPERTY: | ||
In service | 199,152,544 | 185,577,286 |
Accumulated depreciation and amortization | (58,895,489) | (56,156,287) |
In service, net | 140,257,055 | 129,420,999 |
Construction work in progress | 4,709,968 | 2,707,139 |
Utility plant, net | 144,967,023 | 132,128,138 |
OTHER ASSETS: | ||
Regulatory assets | 14,504,029 | 14,332,451 |
Investment in unconsolidated affiliate | 5,704,091 | 3,496,404 |
Fair value of marked-to-market transactions | 118,606 | 0 |
Other | 115,707 | 113,532 |
Total other assets | 20,442,433 | 17,942,387 |
TOTAL ASSETS | 178,534,757 | 165,552,849 |
CURRENT LIABILITIES: | ||
Line-of-credit | 0 | 14,556,785 |
Dividends payable | 1,048,710 | 970,244 |
Accounts payable | 5,730,734 | 5,345,575 |
Capital contributions payable | 402,589 | 287,794 |
Customer credit balances | 715,139 | 1,605,608 |
Income taxes payable | 552,148 | 0 |
Customer deposits | 1,532,074 | 1,627,105 |
Accrued expenses | 2,485,160 | 3,194,255 |
Over-recovery of gas costs | 3,258,221 | 909,687 |
Total current liabilities | 15,724,775 | 28,497,053 |
LONG-TERM DEBT: | ||
Notes payable | 42,820,200 | 33,896,200 |
Line-of-credit | 10,516,426 | 0 |
Less unamortized debt issuance costs | (252,117) | (260,149) |
Long-term debt net of unamortized debt issuance costs | 53,084,509 | 33,636,051 |
DEFERRED CREDITS AND OTHER LIABILITIES: | ||
Asset retirement obligations | 5,867,216 | 5,682,556 |
Regulatory cost of retirement obligations | 10,014,380 | 9,348,443 |
Benefit plan liabilities | 13,557,156 | 13,763,820 |
Deferred income taxes | 20,615,021 | 18,957,854 |
Total deferred credits and other liabilities | 50,053,773 | 47,752,673 |
STOCKHOLDERS’ EQUITY: | ||
Common stock, $5 par value; authorized 10,000,000 shares; issued and outstanding 7,231,535 and 7,182,434, respectively | 36,157,675 | 23,941,445 |
Preferred stock, no par, authorized 5,000,000 shares; no shares issued and outstanding | 0 | 0 |
Capital in excess of par value | 182,031 | 9,509,548 |
Retained earnings | 25,636,416 | 24,713,310 |
Accumulated other comprehensive loss | (2,304,422) | (2,497,231) |
Total stockholders’ equity | 59,671,700 | 55,667,072 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 178,534,757 | $ 165,552,849 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2017 | Sep. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for uncollectibles | $ 282,829 | $ 76,934 |
Common stock, par value (in dollars per share) | $ 5 | $ 5 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 7,231,535 | 7,182,434 |
Common stock, share outstanding | 7,231,535 | 7,182,434 |
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 Statemen
Condensed Consolidated Statements of Income - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
OPERATING REVENUES: | ||||
Gas utilities | $ 11,171,499 | $ 11,017,281 | $ 51,346,456 | $ 48,372,615 |
Other | 264,325 | 277,916 | 777,966 | 710,411 |
Total operating revenues | 11,435,824 | 11,295,197 | 52,124,422 | 49,083,026 |
COST OF SALES: | ||||
Gas utilities | 4,679,047 | 4,833,604 | 24,862,147 | 23,037,896 |
Other | 122,375 | 149,253 | 407,238 | 345,405 |
Total cost of sales | 4,801,422 | 4,982,857 | 25,269,385 | 23,383,301 |
GROSS MARGIN | 6,634,402 | 6,312,340 | 26,855,037 | 25,699,725 |
OTHER OPERATING EXPENSES: | ||||
Operations and maintenance | 3,294,939 | 3,060,435 | 9,880,293 | 9,868,164 |
General taxes | 450,528 | 413,711 | 1,372,870 | 1,281,312 |
Depreciation and amortization | 1,560,728 | 1,384,844 | 4,702,185 | 4,154,533 |
Total other operating expenses | 5,306,195 | 4,858,990 | 15,955,348 | 15,304,009 |
OPERATING INCOME | 1,328,207 | 1,453,350 | 10,899,689 | 10,395,716 |
Equity in earnings of unconsolidated affiliate | 111,626 | 40,562 | 289,791 | 95,945 |
Other expense, net | 8,738 | 39,151 | 23,020 | 71,460 |
Interest expense | 472,300 | 396,304 | 1,400,301 | 1,220,600 |
INCOME BEFORE INCOME TAXES | 958,795 | 1,058,457 | 9,766,159 | 9,199,601 |
INCOME TAX EXPENSE | 343,233 | 431,389 | 3,693,180 | 3,538,296 |
NET INCOME | $ 615,562 | $ 627,068 | $ 6,072,979 | $ 5,661,305 |
BASIC EARNINGS PER COMMON SHARE (in dollars per share) | $ 0.09 | $ 0.09 | $ 0.84 | $ 0.79 |
DILUTED EARNINGS PER COMMON SHARE (in dollars per share) | 0.08 | 0.09 | 0.84 | 0.79 |
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $ 0.145 | $ 0.135 | $ 0.435 | $ 0.405 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 615,562 | $ 627,068 | $ 6,072,979 | $ 5,661,305 |
Other comprehensive income, net of tax: | ||||
Interest rate swap | (25,053) | 0 | 73,583 | 0 |
Defined benefit plans | 39,742 | 34,289 | 119,226 | 102,867 |
Other comprehensive income | 14,689 | 34,289 | 192,809 | 102,867 |
COMPREHENSIVE INCOME | $ 630,251 | $ 661,357 | $ 6,265,788 | $ 5,764,172 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 6,072,979 | $ 5,661,305 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 4,793,270 | 4,245,223 |
Cost of removal of utility plant, net | (236,292) | (291,620) |
Stock option grants | 73,780 | 64,640 |
Equity in earnings of unconsolidated affiliate | (289,791) | (95,945) |
Changes in assets and liabilities which used cash, exclusive of changes and noncash transactions shown separately | 5,337,120 | 5,951,846 |
Net cash provided by operating activities | 15,751,066 | 15,535,449 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to utility plant and nonutility property | (16,451,865) | (12,558,509) |
Investment in unconsolidated affiliate | (1,803,100) | (2,272,576) |
Proceeds from disposal of equipment | 13,971 | 543 |
Net cash used in investing activities | (18,240,994) | (14,830,542) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of notes payable | 8,924,000 | 2,596,200 |
Borrowings under line-of-credit agreement | 31,170,307 | 26,452,983 |
Repayments under line-of-credit agreement | (35,210,666) | (27,666,149) |
Debt issuance expenses | (16,675) | (101,619) |
Proceeds from issuance of stock (49,101 and 54,255 shares, respectively) | 810,689 | 774,175 |
Cash dividends paid | (3,067,163) | (2,840,898) |
Net cash provided by (used in) financing activities | 2,610,492 | (785,308) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 120,564 | (80,401) |
BEGINNING CASH AND CASH EQUIVALENTS | 643,252 | 985,234 |
ENDING CASH AND CASH EQUIVALENTS | 763,816 | 904,833 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Interest paid | 1,598,629 | 1,435,553 |
Income taxes paid | $ 51,000 | $ 181,000 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Parenthetical) - shares | 9 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Cash Flows [Abstract] | ||
Issuance of stock, shares | 49,101 | 54,255 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2017 | |
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. ("Resources" or the "Company") and its wholly owned subsidiaries: Roanoke Gas Company; Diversified Energy Company; and RGC Midstream, LLC. 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 June 30, 2017 and the results of its operations, cash flows and comprehensive income for the three months and nine months ended June 30, 2017 and 2016 . The results of operations for the three months and nine months ended June 30, 2017 are not indicative of the results to be expected for the fiscal year ending September 30, 2017 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 for the year ended September 30, 2016 . The September 30, 2016 balance sheet was included in the Company’s audited financial statements included in 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, 2016 . Newly adopted and newly issued accounting standards are discussed below. Recently Issued or Adopted Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) that affects any entity that enters into contracts with customers for the transfer of goods or services or transfer of non-financial assets. This guidance supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when, or as, the entity satisfies the performance obligation. In August 2015, the FASB issued ASU 2015-14 that deferred the effective date of this guidance by one year making the standard effective for the Company's annual reporting period ending September 30, 2019 and interim periods within that annual period. As of June 30, 2017, the Company is identifying sources of revenue and evaluating the effect that the revenue guidance will have on financial results and disclosures. The FASB continues to issue subsequent guidance under ASC No. 606 to provide further clarification of the original ASU. In addition, the Company is also monitoring the activity of the Power and Utilities Task Force. The Task Force was formed by the American Institute of Certified Public Accountants ("AICPA") in an effort to provide industry-specific guidance. Implementation issues identified by the Task Force include accounting for contributions in aid of construction and assessing collectability of customer accounts when regulated mechanisms exist to allow recovery of uncollected accounts from ratepayers. The Company will consider all current and future guidance in before determining how best to implement the new revenue recognition standard. Although Management has not completed its evaluation of all the issued guidance under ASC No. 606, currently the Company does not expect it to have a material effect on its financial position, results of operations or cash flows. However, the disclosure requirements under ASU 2014-09 could be significant to the Company. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities . The ASU enhances the reporting model for financial instruments to provide users of the financial statements with more useful information through several provisions, including the following: (1) requires equity investments, excluding investments accounted for under the equity method, be measured at fair value with changes in fair value recognized in net income, (2) simplifies the impairment assessment of equity investments without readily determinable fair values, (3) eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (4) requires entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (5) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. The new guidance is effective for the Company for the annual reporting period ending September 30, 2019 and interim periods within that annual period. Management has not completed its evaluation of the new guidance. However, the Company does not currently expect the new guidance to have a material effect on its financial position, results of operations or cash flows. In February 2016, the FASB issued ASU 2016-02, Leases. The ASU leaves the accounting for leases mostly unchanged for lessors, with the exception of targeted improvements for consistency; however, the new guidance requires lessees to recognize assets and liabilities for leases with terms of more than 12 months. The ASU also revises the definition of a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Consistent with current GAAP, the presentation and cash flows arising from a lease by a lessee will primarily depend on its classification as a finance or operating lease. In contrast, the new ASU requires both types of leases to be recognized on the balance sheet. In addition, the new guidance includes quantitative and qualitative disclosure requirements to aid financial statement users in better understanding the amount, timing and uncertainty of cash flows arising from leases. The new guidance is effective for the Company for the annual reporting period ending September 30, 2020 and interim periods within that annual period. Early adoption is permitted. Management is in the process of compiling an inventory of all leases that fall under the requirements of ASU 2016-02. The Company has very few agreements that fall under the prior definition of leases; however, management is reviewing other agreements that may fall within the scope of ASU 2016-02. The Company does not currently expect the new guidance to have a material effect on its financial position, results of operations or cash flows. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting . The guidance simplifies several aspects of the accounting for share-based payment award transactions, including income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The new guidance is effective for the Company for the annual reporting period ending September 30, 2018 and interim periods within that annual period. Early adoption is permitted. The Company adopted this ASU during the quarter ended September 30, 2016. This ASU had no effect on the financial statements at the time of adoption; however, as the application of the APIC pool is eliminated, the Company will recognize all excess tax benefits and deficiencies associated with the exercise of stock options in income tax expense rather than as an offset to additional paid in capital. In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections and Investments - Equity Method and Joint Ventures . This update adds the text of the SEC Staff Announcement, Disclosure of the Impact That Recently Issued Accounting Standards Will Have on the Financial Statements of a Registrant When Such Standards Are Adopted in a Future Period (in accordance with Staff Accounting Bulletin Topic 11.M) as paragraph 250-10-S99-6. Related specifically to ASU 2014-09, ASU 2016-02 and ASU 2016-13, an SEC registrant should evaluate ASUs that have not yet been adopted to determine and include appropriate financial disclosures and MD&A discussions, including consideration of additional qualitative disclosures, to assist financial statement readers in assessing the significance of impact on adoption. The new guidance is effective immediately. The nature of this guidance relates to the effectiveness and quality of disclosures related to ASUs not yet adopted; however, there is no effect on the Company's financial position, results of operations or cash flows. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits . The primary objective of this guidance is to improve the financial statement presentation of net periodic pension and postretirement benefit costs; however, it also changes which cost components are eligible for capitalization. The amendments in the ASU require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and, if presented, outside of income from operations. In addition, the ASU allows only the service cost component of periodic benefit cost to be eligible for capitalization when applicable. This change to capitalization eligibility differs from the treatment currently applied by the Company and from allowed regulatory accounting. The new guidance is effective for the Company for the annual reporting period ending September 30, 2019 and interim periods within that annual period. Early adoption is permitted. Management is in the process of evaluating the new guidance from this ASU. The regulatory body in the Company's service jurisdiction requires the capitalization of all cost components included in net benefit costs. As a result, the Company may have to establish regulatory assets for those costs now excluded from capitalization under this ASU. The Company has begun discussions with its regulatory body, the State Corporation Commission of Virginia, regarding the expected treatment of those costs. Although the ultimate disposition of these other components of net periodic benefit costs has not been determined, management expects the new guidance may have a material effect on the Company's consolidated financial statements when adopted. 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 or cash flows. |
Stock Split
Stock Split | 9 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stock Split | Stock Split On January 17, 2017, Resources Board of Directors approved a three-for-two stock split of the Company's issued and outstanding common stock. The stock split was effected in the form of a 50% stock dividend entitling each shareholder to receive one additional share of common stock for every two shares owned. The stock dividend was payable March 1, 2017 to shareholders of record on February 15, 2017. As the par value of the common stock remained at $5 per share, the Company reclassified $10,025,546 from "Capital in excess of par value" and $2,004,244 from "Retained earnings" to "Common stock" associated with the issuance of 2,405,958 shares. Corresponding prior period amounts, including share and per share data, have been restated retrospectively to reflect the 50% stock dividend. |
Rates and Regulatory Matters
Rates and Regulatory Matters | 9 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017, the Company filed with the SCC its SAVE (Steps to Advance Virginia's Energy) Plan and Rider application. The SAVE Plan provides a mechanism for the Company to recover the related depreciation and expenses and a return on rate base of the additional capital investment related to the modernization of aging natural gas infrastructure without the filing of a formal application for an increase in non-gas base rates. Under the current application, the Company submitted its report for collecting the shortfall in SAVE revenues collected under the 2016 SAVE Plan and proposed new 2018 SAVE rates to be implemented for the ongoing investment in SAVE Plan projects. The Company anticipates the SCC to complete its review of the application over the next few months. The Company continues to bill its customers for SAVE revenues associated with its 2017 SAVE Plan. |
Other Investments
Other Investments | 9 Months Ended |
Jun. 30, 2017 | |
Other Investments [Abstract] | |
Other Investments | Other Investments In October 2015, the Company, through its wholly-owned subsidiary, RGC Midstream, LLC ("Midstream"), acquired a 1% equity interest in the Mountain Valley Pipeline, LLC (the “LLC”). The LLC was established to construct and operate a natural gas pipeline originating in northern West Virginia and extending through south central Virginia. The proposed pipeline will have the capacity to transport approximately 2 million decatherms of natural gas per day. Subject to approval by the Federal Energy Regulatory Commission, the pipeline is targeted to be in service by late 2018. The total project cost is estimated to be approximately $3.5 billion. The Company's 1% equity interest in the LLC will require a total estimated cash investment of approximately $35 million, by periodic capital contributions throughout the design and construction phases of the project. Midstream held an approximate $5.7 million equity method investment in the LLC at June 30, 2017 . On a quarterly basis, the LLC issues a capital call notice, which specifies the capital contributions to be paid over the subsequent 3 months . As of June 30, 2017 , the Company had $402,589 remaining to be paid under the most recent notice. The capital contribution payable has been reflected on the Company's balance sheet as of June 30, 2017 , with a corresponding increase to Investment in Unconsolidated Affiliate. Related to capital contributions payable, there was a non-cash $114,795 increase in the Investment in Unconsolidated Affiliate in the nine months ended June 30, 2017 . Initial funding for Midstream's investment in the LLC is provided through two unsecured promissory notes, each with a 5 -year term. The Company is participating in the earnings of the LLC in proportion to its level of investment. The Company is utilizing the equity method to account for the transactions and activity of the investment. The financial statement locations of the investment in the LLC are as follows: Balance Sheet Location of Other Investments: June 30, 2017 September 30, 2016 Other Assets: Investment in unconsolidated affiliate $ 5,704,091 $ 3,496,404 Current Liabilities: Capital contributions payable $ 402,589 $ 287,794 Three Months Ended Nine Months Ended Income Statement Location of Other Investments: June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Equity in earnings of unconsolidated affiliate $ 111,626 $ 40,562 $ 289,791 $ 95,945 |
Derivatives and Hedging
Derivatives and Hedging | 9 Months Ended |
Jun. 30, 2017 | |
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 one interest rate swap associated with its $7,000,000 term note with Branch Banking & Trust as discussed in Note 6. Effective November 1, 2017, the swap agreement converts the floating rate note based on LIBOR into a fixed rate debt with a 2.30% effective interest rate. The swap qualifies as a cash flow hedge with changes in fair value reported in other comprehensive income. No portion of the swap was deemed ineffective during the periods presented. The table below reflects the fair values of the derivative instrument and its corresponding classification in the condensed consolidated balance sheets under the caption of "Fair value of marked-to-market transactions": June 30, 2017 September 30, 2016 Derivative designated as hedging instrument: Interest rate swap $118,606 — The table in Note 7 reflects the effect on income and other comprehensive income of the Company's cash flow hedge. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt On March 27, 2017, Roanoke Gas entered into a new unsecured line-of-credit agreement. This new line-of-credit agreement replaced the agreement which expired on March 31, 2017. The expired agreement was for a term of one year and all amounts drawn against that agreement were considered to be current liabilities. The new line-of-credit agreement is for a two -year term expiring March 31, 2019. Amounts drawn against the new agreement are considered to be non-current as the balance under the line-of-credit is not subject to repayment within the next 12-month period. Except for the two -year term, the new agreement maintains the same variable interest rate based on 30-day LIBOR plus 100 basis points and availability fee of 15 basis points as the expired agreement. The new agreement also maintains the multi-tiered borrowing limits to accommodate seasonal borrowing demands and minimize borrowing costs. The Company's total available borrowing limits during the term of the new agreement range from $10,000,000 to $30,000,000 . The Company anticipates being able to extend or replace the line-of-credit upon expiration. On November 1, 2016, Roanoke Gas entered into a 5 -year unsecured note with Branch Banking & Trust in the principal amount of $7,000,000 . The note is variable rate with interest based on 30-day LIBOR plus 90 basis points . In addition, Roanoke Gas also entered into a swap agreement to convert the variable rate debt into a fixed-rate instrument with an annual interest rate of 2.30% . The swap agreement is not effective until November 1, 2017, with the monthly interest rate on the note floating until the swap period begins. The proceeds from the note were used to convert a portion of the Company's line-of-credit balance into longer-term financing. Midstream has two unsecured Promissory Notes ("Notes") which provide up to a total of $25 million in borrowing limits over a period of 5 years , with an interest rate of 30-day LIBOR plus 160 basis points. Midstream issued the Notes in December 2015 to provide financing for capital contributions in respect of its 1% interest in the LLC. In accordance with the terms of the Agreement, at such point in time as Midstream has borrowed $17.5 million under the Notes, Midstream is required to provide the next $5 million towards its capital contributions to the LLC. Once Midstream has completed its $5 million in contributions, it may resume borrowing under the Notes up to the $25 million limit. All of the debt agreements set forth certain representations, warranties and covenants to which the Company is subject, including financial covenants that limit Consolidated Long Term Indebtedness to not more than 65% of Consolidated Total Capitalization and Priority Indebtedness to not more than 15% of Consolidated Total Assets. Long-term debt consists of the following: June 30, 2017 September 30, 2016 Principal Unamortized Debt Issuance Costs Principal Unamortized Debt Issuance Costs Roanoke Gas Company: Unsecured senior notes payable, at 4.26% due on September 18, 2034 $ 30,500,000 $ 166,533 $ 30,500,000 $ 173,773 Unsecured term note payable, at 30-day LIBOR plus 0.90%, due November 1, 2021 7,000,000 14,451 — — RGC Midstream, LLC: Unsecured term notes payable, at 30-day LIBOR plus 1.60%, due December 29, 2020 5,320,200 71,133 3,396,200 86,376 Total notes payable $ 42,820,200 $ 252,117 $ 33,896,200 $ 260,149 Line-of-credit, at 30-day LIBOR plus 1.00%, due March 31, 2019 $ 10,516,426 $ — $ — $ — Total long-term debt $ 53,336,626 $ 252,117 $ 33,896,200 $ 260,149 |
Other Comprehensive Income
Other Comprehensive Income | 9 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Other Comprehensive Income | Other Comprehensive Income A summary of other comprehensive income and loss is provided below: Before-Tax Amount Tax (Expense) or Benefit Net-of-Tax Amount Three Months Ended June 30, 2017 Interest rate swaps: Unrealized losses $ (40,382 ) $ 15,329 $ (25,053 ) Defined benefit plans: Amortization of actuarial losses 64,058 (24,316 ) 39,742 Other comprehensive income $ 23,676 $ (8,987 ) $ 14,689 Three Months Ended June 30, 2016 Interest rate swaps: Unrealized losses $ — $ — $ — Defined benefit plans: Amortization of actuarial losses 55,268 (20,979 ) 34,289 Other comprehensive income $ 55,268 $ (20,979 ) $ 34,289 Before-Tax Amount Tax (Expense) or Benefit Net-of-Tax Amount Nine Months Ended June 30, 2017 Interest rate swaps: Unrealized gains $ 118,606 $ (45,023 ) $ 73,583 Defined benefit plans: Amortization of actuarial losses 192,174 (72,948 ) 119,226 Other comprehensive income $ 310,780 $ (117,971 ) $ 192,809 Nine Months Ended June 30, 2016 Interest rate swaps: Unrealized losses $ — $ — $ — Defined benefit plans: Amortization of actuarial losses 165,804 (62,937 ) 102,867 Other comprehensive income $ 165,804 $ (62,937 ) $ 102,867 The amortization of actuarial losses is included as a component of net periodic pension and postretirement benefit cost in operations and maintenance expense. Reconciliation of Other Accumulated Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) Balance at September 30, 2016 $ (2,497,231 ) Other comprehensive income 192,809 Balance at June 30, 2017 $ (2,304,422 ) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies On June 28, 2017, the Company announced that effective July 21, 2017, all customer support services functions would be outsourced resulting in a reduction of 18 employees. The Company recorded approximately $135,000 in severance-related expenses for the impacted employees. Roanoke Gas currently holds the only franchises and/or certificates of public convenience and necessity to distribute natural gas in its service area. The current franchise agreements expire December 31, 2035 . The Company's certificates of public convenience and necessity 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 through an asset manager. The Company utilizes 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 distribution system. 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's ability to deliver natural gas to its customers and its results of operations. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per common share for the three months and nine months ended June 30, 2017 and 2016 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 June 30, Nine Months Ended June 30, 2017 2016 2017 2016 Net Income $ 615,562 $ 627,068 $ 6,072,979 $ 5,661,305 Weighted average common shares 7,227,171 7,160,650 7,212,289 7,140,914 Effect of dilutive securities: Options to purchase common stock 46,669 12,062 32,275 7,951 Diluted average common shares 7,273,840 7,172,712 7,244,564 7,148,865 Earnings Per Share of Common Stock: Basic $ 0.09 $ 0.09 $ 0.84 $ 0.79 Diluted $ 0.08 $ 0.09 $ 0.84 $ 0.79 |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [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 Nine Months Ended June 30, June 30, 2017 2016 2017 2016 Components of net periodic pension cost: Service cost $ 176,669 $ 173,594 $ 530,007 $ 520,782 Interest cost 248,900 283,194 746,700 849,582 Expected return on plan assets (404,103 ) (373,060 ) (1,212,309 ) (1,119,180 ) Recognized loss 165,545 125,420 496,635 376,260 Net periodic pension cost $ 187,011 $ 209,148 $ 561,033 $ 627,444 Three Months Ended Nine Months Ended June 30, June 30, 2017 2016 2017 2016 Components of postretirement benefit cost: Service cost $ 45,817 $ 37,005 $ 137,451 $ 111,015 Interest cost 156,706 156,145 470,118 468,435 Expected return on plan assets (142,878 ) (126,965 ) (428,634 ) (380,895 ) Recognized loss 107,440 62,543 322,320 187,629 Net postretirement benefit cost $ 167,085 $ 128,728 $ 501,255 $ 386,184 The table below reflects the Company's actual contributions made fiscal year-to-date and the expected contributions to be made during the balance of the current fiscal year. Fiscal Year-to-Date Contributions Remaining Fiscal Year Contributions Defined benefit pension plan $ 450,000 $ 300,000 Postretirement medical plan — 1,000,000 Total $ 450,000 $ 1,300,000 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 and September 30, 2016 : Fair Value Measurements - June 30, 2017 Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Interest rate swap $ 118,606 $ — $ 118,606 $ — Total $ 118,606 $ — $ 118,606 $ — Liabilities: Natural gas purchases $ 1,880,645 $ — $ 1,880,645 $ — Total $ 1,880,645 $ — $ 1,880,645 $ — Fair Value Measurements - September 30, 2016 Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Natural gas purchases $ 1,052,930 $ — $ 1,052,930 $ — Total $ 1,052,930 $ — $ 1,052,930 $ — The fair value of the interest rate swap 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. 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 June 30, 2017 and September 30, 2016 , 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 Company’s nonfinancial assets and liabilities 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 required 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. In addition, the carrying amount of the variable rate line-of-credit is a reasonable approximation of its 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 June 30, 2017 and September 30, 2016 : Fair Value Measurements - June 30, 2017 Carrying Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Long-term debt - notes payable $ 42,820,200 $ — $ — $ 44,295,661 Total $ 42,820,200 $ — $ — $ 44,295,661 Fair Value Measurements - September 30, 2016 Carrying Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Long-term debt - notes payable $ 33,896,200 $ — $ — $ 36,163,523 Total $ 33,896,200 $ — $ — $ 36,163,523 The fair value of long-term debt is estimated by discounting the future cash flows of the debt based on current market rates and corresponding interest rate spread. 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 June 30, 2017 and September 30, 2016 , 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 | 9 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options | Stock Options On December 8, 2016 , the Board of Directors granted 25,500 options to certain officers of the Company. In accordance with the Key Employee Stock Option Plan, the grant price of $16.37 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 $2.89 per option as calculated using the Black-Scholes option pricing model. Compensation expense is recognized over the vesting period. Total compensation expense recognized through June 30, 2017 was $73,780 . The number of options granted, grant price and option value have been adjusted for the stock split effective March 1, 2017. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Jun. 30, 2017 | |
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 (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Jun. 30, 2017 | |
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. ("Resources" or the "Company") and its wholly owned subsidiaries: Roanoke Gas Company; Diversified Energy Company; and RGC Midstream, LLC. 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 June 30, 2017 and the results of its operations, cash flows and comprehensive income for the three months and nine months ended June 30, 2017 and 2016 . The results of operations for the three months and nine months ended June 30, 2017 are not indicative of the results to be expected for the fiscal year ending September 30, 2017 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 for the year ended September 30, 2016 . The September 30, 2016 balance sheet was included in the Company’s audited financial statements included in 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, 2016 . Newly adopted and newly issued accounting standards are discussed below. |
Recently Issued or Adopted Accounting Standards | Recently Issued or Adopted Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) that affects any entity that enters into contracts with customers for the transfer of goods or services or transfer of non-financial assets. This guidance supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when, or as, the entity satisfies the performance obligation. In August 2015, the FASB issued ASU 2015-14 that deferred the effective date of this guidance by one year making the standard effective for the Company's annual reporting period ending September 30, 2019 and interim periods within that annual period. As of June 30, 2017, the Company is identifying sources of revenue and evaluating the effect that the revenue guidance will have on financial results and disclosures. The FASB continues to issue subsequent guidance under ASC No. 606 to provide further clarification of the original ASU. In addition, the Company is also monitoring the activity of the Power and Utilities Task Force. The Task Force was formed by the American Institute of Certified Public Accountants ("AICPA") in an effort to provide industry-specific guidance. Implementation issues identified by the Task Force include accounting for contributions in aid of construction and assessing collectability of customer accounts when regulated mechanisms exist to allow recovery of uncollected accounts from ratepayers. The Company will consider all current and future guidance in before determining how best to implement the new revenue recognition standard. Although Management has not completed its evaluation of all the issued guidance under ASC No. 606, currently the Company does not expect it to have a material effect on its financial position, results of operations or cash flows. However, the disclosure requirements under ASU 2014-09 could be significant to the Company. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities . The ASU enhances the reporting model for financial instruments to provide users of the financial statements with more useful information through several provisions, including the following: (1) requires equity investments, excluding investments accounted for under the equity method, be measured at fair value with changes in fair value recognized in net income, (2) simplifies the impairment assessment of equity investments without readily determinable fair values, (3) eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (4) requires entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (5) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. The new guidance is effective for the Company for the annual reporting period ending September 30, 2019 and interim periods within that annual period. Management has not completed its evaluation of the new guidance. However, the Company does not currently expect the new guidance to have a material effect on its financial position, results of operations or cash flows. In February 2016, the FASB issued ASU 2016-02, Leases. The ASU leaves the accounting for leases mostly unchanged for lessors, with the exception of targeted improvements for consistency; however, the new guidance requires lessees to recognize assets and liabilities for leases with terms of more than 12 months. The ASU also revises the definition of a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Consistent with current GAAP, the presentation and cash flows arising from a lease by a lessee will primarily depend on its classification as a finance or operating lease. In contrast, the new ASU requires both types of leases to be recognized on the balance sheet. In addition, the new guidance includes quantitative and qualitative disclosure requirements to aid financial statement users in better understanding the amount, timing and uncertainty of cash flows arising from leases. The new guidance is effective for the Company for the annual reporting period ending September 30, 2020 and interim periods within that annual period. Early adoption is permitted. Management is in the process of compiling an inventory of all leases that fall under the requirements of ASU 2016-02. The Company has very few agreements that fall under the prior definition of leases; however, management is reviewing other agreements that may fall within the scope of ASU 2016-02. The Company does not currently expect the new guidance to have a material effect on its financial position, results of operations or cash flows. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting . The guidance simplifies several aspects of the accounting for share-based payment award transactions, including income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The new guidance is effective for the Company for the annual reporting period ending September 30, 2018 and interim periods within that annual period. Early adoption is permitted. The Company adopted this ASU during the quarter ended September 30, 2016. This ASU had no effect on the financial statements at the time of adoption; however, as the application of the APIC pool is eliminated, the Company will recognize all excess tax benefits and deficiencies associated with the exercise of stock options in income tax expense rather than as an offset to additional paid in capital. In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections and Investments - Equity Method and Joint Ventures . This update adds the text of the SEC Staff Announcement, Disclosure of the Impact That Recently Issued Accounting Standards Will Have on the Financial Statements of a Registrant When Such Standards Are Adopted in a Future Period (in accordance with Staff Accounting Bulletin Topic 11.M) as paragraph 250-10-S99-6. Related specifically to ASU 2014-09, ASU 2016-02 and ASU 2016-13, an SEC registrant should evaluate ASUs that have not yet been adopted to determine and include appropriate financial disclosures and MD&A discussions, including consideration of additional qualitative disclosures, to assist financial statement readers in assessing the significance of impact on adoption. The new guidance is effective immediately. The nature of this guidance relates to the effectiveness and quality of disclosures related to ASUs not yet adopted; however, there is no effect on the Company's financial position, results of operations or cash flows. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits . The primary objective of this guidance is to improve the financial statement presentation of net periodic pension and postretirement benefit costs; however, it also changes which cost components are eligible for capitalization. The amendments in the ASU require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and, if presented, outside of income from operations. In addition, the ASU allows only the service cost component of periodic benefit cost to be eligible for capitalization when applicable. This change to capitalization eligibility differs from the treatment currently applied by the Company and from allowed regulatory accounting. The new guidance is effective for the Company for the annual reporting period ending September 30, 2019 and interim periods within that annual period. Early adoption is permitted. Management is in the process of evaluating the new guidance from this ASU. The regulatory body in the Company's service jurisdiction requires the capitalization of all cost components included in net benefit costs. As a result, the Company may have to establish regulatory assets for those costs now excluded from capitalization under this ASU. The Company has begun discussions with its regulatory body, the State Corporation Commission of Virginia, regarding the expected treatment of those costs. Although the ultimate disposition of these other components of net periodic benefit costs has not been determined, management expects the new guidance may have a material effect on the Company's consolidated financial statements when adopted. 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 or cash flows. |
Other Investments (Tables)
Other Investments (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Other Investments [Abstract] | |
Schedule of Other Investments | The financial statement locations of the investment in the LLC are as follows: Balance Sheet Location of Other Investments: June 30, 2017 September 30, 2016 Other Assets: Investment in unconsolidated affiliate $ 5,704,091 $ 3,496,404 Current Liabilities: Capital contributions payable $ 402,589 $ 287,794 Three Months Ended Nine Months Ended Income Statement Location of Other Investments: June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Equity in earnings of unconsolidated affiliate $ 111,626 $ 40,562 $ 289,791 $ 95,945 |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivative Instrument | The table below reflects the fair values of the derivative instrument and its corresponding classification in the condensed consolidated balance sheets under the caption of "Fair value of marked-to-market transactions": June 30, 2017 September 30, 2016 Derivative designated as hedging instrument: Interest rate swap $118,606 — |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following: June 30, 2017 September 30, 2016 Principal Unamortized Debt Issuance Costs Principal Unamortized Debt Issuance Costs Roanoke Gas Company: Unsecured senior notes payable, at 4.26% due on September 18, 2034 $ 30,500,000 $ 166,533 $ 30,500,000 $ 173,773 Unsecured term note payable, at 30-day LIBOR plus 0.90%, due November 1, 2021 7,000,000 14,451 — — RGC Midstream, LLC: Unsecured term notes payable, at 30-day LIBOR plus 1.60%, due December 29, 2020 5,320,200 71,133 3,396,200 86,376 Total notes payable $ 42,820,200 $ 252,117 $ 33,896,200 $ 260,149 Line-of-credit, at 30-day LIBOR plus 1.00%, due March 31, 2019 $ 10,516,426 $ — $ — $ — Total long-term debt $ 53,336,626 $ 252,117 $ 33,896,200 $ 260,149 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Summary of Other Comprehensive Income and Loss | A summary of other comprehensive income and loss is provided below: Before-Tax Amount Tax (Expense) or Benefit Net-of-Tax Amount Three Months Ended June 30, 2017 Interest rate swaps: Unrealized losses $ (40,382 ) $ 15,329 $ (25,053 ) Defined benefit plans: Amortization of actuarial losses 64,058 (24,316 ) 39,742 Other comprehensive income $ 23,676 $ (8,987 ) $ 14,689 Three Months Ended June 30, 2016 Interest rate swaps: Unrealized losses $ — $ — $ — Defined benefit plans: Amortization of actuarial losses 55,268 (20,979 ) 34,289 Other comprehensive income $ 55,268 $ (20,979 ) $ 34,289 Before-Tax Amount Tax (Expense) or Benefit Net-of-Tax Amount Nine Months Ended June 30, 2017 Interest rate swaps: Unrealized gains $ 118,606 $ (45,023 ) $ 73,583 Defined benefit plans: Amortization of actuarial losses 192,174 (72,948 ) 119,226 Other comprehensive income $ 310,780 $ (117,971 ) $ 192,809 Nine Months Ended June 30, 2016 Interest rate swaps: Unrealized losses $ — $ — $ — Defined benefit plans: Amortization of actuarial losses 165,804 (62,937 ) 102,867 Other comprehensive income $ 165,804 $ (62,937 ) $ 102,867 |
Reconciliation of Other Accumulated Other Comprehensive Income (Loss) | Reconciliation of Other Accumulated Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) Balance at September 30, 2016 $ (2,497,231 ) Other comprehensive income 192,809 Balance at June 30, 2017 $ (2,304,422 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
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 June 30, Nine Months Ended June 30, 2017 2016 2017 2016 Net Income $ 615,562 $ 627,068 $ 6,072,979 $ 5,661,305 Weighted average common shares 7,227,171 7,160,650 7,212,289 7,140,914 Effect of dilutive securities: Options to purchase common stock 46,669 12,062 32,275 7,951 Diluted average common shares 7,273,840 7,172,712 7,244,564 7,148,865 Earnings Per Share of Common Stock: Basic $ 0.09 $ 0.09 $ 0.84 $ 0.79 Diluted $ 0.08 $ 0.09 $ 0.84 $ 0.79 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Summary of Employer Contributions to Defined Benefit Plans | The table below reflects the Company's actual contributions made fiscal year-to-date and the expected contributions to be made during the balance of the current fiscal year. Fiscal Year-to-Date Contributions Remaining Fiscal Year Contributions Defined benefit pension plan $ 450,000 $ 300,000 Postretirement medical plan — 1,000,000 Total $ 450,000 $ 1,300,000 |
Pension Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Components of Net Periodic Pension and Postretirement Benefit Cost | Net pension plan and postretirement plan expense recorded by the Company is detailed as follows: Three Months Ended Nine Months Ended June 30, June 30, 2017 2016 2017 2016 Components of net periodic pension cost: Service cost $ 176,669 $ 173,594 $ 530,007 $ 520,782 Interest cost 248,900 283,194 746,700 849,582 Expected return on plan assets (404,103 ) (373,060 ) (1,212,309 ) (1,119,180 ) Recognized loss 165,545 125,420 496,635 376,260 Net periodic pension cost $ 187,011 $ 209,148 $ 561,033 $ 627,444 |
Postretirement Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Components of Net Periodic Pension and Postretirement Benefit Cost | Three Months Ended Nine Months Ended June 30, June 30, 2017 2016 2017 2016 Components of postretirement benefit cost: Service cost $ 45,817 $ 37,005 $ 137,451 $ 111,015 Interest cost 156,706 156,145 470,118 468,435 Expected return on plan assets (142,878 ) (126,965 ) (428,634 ) (380,895 ) Recognized loss 107,440 62,543 322,320 187,629 Net postretirement benefit cost $ 167,085 $ 128,728 $ 501,255 $ 386,184 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 and September 30, 2016 : Fair Value Measurements - June 30, 2017 Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Interest rate swap $ 118,606 $ — $ 118,606 $ — Total $ 118,606 $ — $ 118,606 $ — Liabilities: Natural gas purchases $ 1,880,645 $ — $ 1,880,645 $ — Total $ 1,880,645 $ — $ 1,880,645 $ — Fair Value Measurements - September 30, 2016 Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Natural gas purchases $ 1,052,930 $ — $ 1,052,930 $ — Total $ 1,052,930 $ — $ 1,052,930 $ — |
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 June 30, 2017 and September 30, 2016 : Fair Value Measurements - June 30, 2017 Carrying Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Long-term debt - notes payable $ 42,820,200 $ — $ — $ 44,295,661 Total $ 42,820,200 $ — $ — $ 44,295,661 Fair Value Measurements - September 30, 2016 Carrying Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Long-term debt - notes payable $ 33,896,200 $ — $ — $ 36,163,523 Total $ 33,896,200 $ — $ — $ 36,163,523 |
Stock Split (Details)
Stock Split (Details) - USD ($) | Mar. 01, 2017 | Jun. 30, 2017 | Sep. 30, 2016 |
Stockholders' Equity Note [Abstract] | |||
Common stock dividend from stock split (percentage) | 50.00% | ||
Stock split ratio | 1.5 | ||
Common stock, par value (in dollars per share) | $ 5 | $ 5 | |
Adjustments to additional paid in capital, stock split | $ 10,025,546 | ||
Adjustments to retained earnings, stock split | $ 2,004,244 | ||
Stock issued, shares, stock split | 2,405,958 |
Other Investments (Narrative) (
Other Investments (Narrative) (Details) Bcf in Millions | 1 Months Ended | 9 Months Ended | ||
Oct. 31, 2015USD ($)debt_instrumentBcf | Jun. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2015 | |
Investment [Line Items] | ||||
Investment in unconsolidated affiliate | $ 5,704,091 | $ 3,496,404 | ||
Capital contributions payable term | 3 months | |||
Capital contributions payable | $ 402,589 | $ 287,794 | ||
Non-cash increase in investment in unconsolidated affiliate | 114,795 | |||
Midstream [Member] | ||||
Investment [Line Items] | ||||
Equity interest percentage | 1.00% | 1.00% | ||
Pipeline capacity per day (in bcf) | Bcf | 2 | |||
Total project cost | $ 3,500,000,000 | |||
Total estimated investment | $ 35,000,000 | |||
Investment in unconsolidated affiliate | $ 5,700,000 | |||
Number of unsecured Promissory Notes funding the investment | debt_instrument | 2 | |||
Debt term | 5 years |
Other Investments (Schedule of
Other Investments (Schedule of Other Investments) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2016 | |
Other Assets: | |||||
Investment in unconsolidated affiliate | $ 5,704,091 | $ 5,704,091 | $ 3,496,404 | ||
Current Liabilities: | |||||
Capital contributions payable | 402,589 | 402,589 | $ 287,794 | ||
Income Statement Location of Other Investments: | |||||
Equity in earnings of unconsolidated affiliate | $ 111,626 | $ 40,562 | $ 289,791 | $ 95,945 |
Derivatives and Hedging (Narrat
Derivatives and Hedging (Narrative) (Details) | Jun. 30, 2017instruments_held | Nov. 01, 2016USD ($) |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of interest rate swap associated with the term note | instruments_held | 1 | |
Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 0.90%, due November 1, 2021 [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Debt instrument, borrowing amount | $ | $ 7,000,000 | |
Effective interest rate | 2.30% |
Derivatives and Hedging (Schedu
Derivatives and Hedging (Schedule of Fair Value of Marked-to-Market Transactions) (Details) - USD ($) | Jun. 30, 2017 | Sep. 30, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Fair value of marked-to-market transactions | $ 118,606 | $ 0 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | Mar. 27, 2017USD ($) | Nov. 01, 2016USD ($) | Dec. 31, 2015USD ($)instruments_held | Oct. 31, 2015debt_instrument | Mar. 31, 2017 | Jun. 30, 2017 |
Debt Instrument [Line Items] | ||||||
Maximum percentage of Consolidated Long Term Indebtedness to Consolidated Total Capitalization | 65.00% | |||||
Maximum percentage of Priority Indebtedness to Consolidated Total Assets | 15.00% | |||||
Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 0.90%, due November 1, 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, borrowing amount | $ 7,000,000 | |||||
Effective interest rate | 2.30% | |||||
Roanoke Gas [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt term | 1 year | |||||
Roanoke Gas [Member] | Line of Credit [Member] | Line of Credit, at 30-day LIBOR plus 1.00%, due March 31, 2019 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt term | 2 years | |||||
Availability fee (as a percent) | 0.15% | |||||
Roanoke Gas [Member] | Line of Credit [Member] | Line of Credit, at 30-day LIBOR plus 1.00%, due March 31, 2019 [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, maximum borrowing limit | $ 10,000,000 | |||||
Roanoke Gas [Member] | Line of Credit [Member] | Line of Credit, at 30-day LIBOR plus 1.00%, due March 31, 2019 [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, maximum borrowing limit | $ 30,000,000 | |||||
Roanoke Gas [Member] | Line of Credit [Member] | Line of Credit, at 30-day LIBOR plus 1.00%, due March 31, 2019 [Member] | 30-day LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate basis points (as a percent) | 1.00% | 1.00% | ||||
Roanoke Gas [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 0.90%, due November 1, 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt term | 5 years | |||||
Debt instrument, borrowing amount | $ 7,000,000 | |||||
Effective interest rate | 2.30% | |||||
Roanoke Gas [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 0.90%, due November 1, 2021 [Member] | 30-day LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate basis points (as a percent) | 0.90% | 0.90% | ||||
Midstream [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt term | 5 years | |||||
Number of unsecured Promissory Notes funding the investment | debt_instrument | 2 | |||||
Equity interest percentage | 1.00% | 1.00% | ||||
Midstream [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.60%, due December 29, 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt term | 5 years | |||||
Number of unsecured Promissory Notes funding the investment | instruments_held | 2 | |||||
Maximum borrowings | $ 17,500,000 | |||||
Required amount to be provided towards capital contributions to the LLC | 5,000,000 | |||||
Midstream [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.60%, due December 29, 2020 [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, borrowing amount | $ 25,000,000 | |||||
Midstream [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.60%, due December 29, 2020 [Member] | 30-day LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate basis points (as a percent) | 1.60% | 1.60% |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) | Mar. 27, 2017 | Nov. 01, 2016 | Dec. 31, 2015 | Jun. 30, 2017 | Sep. 30, 2016 |
Debt Instrument [Line Items] | |||||
Principal | $ 53,336,626 | $ 33,896,200 | |||
Unamortized Debt Issuance Costs | 252,117 | 260,149 | |||
Notes Payable [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal | 42,820,200 | 33,896,200 | |||
Unamortized Debt Issuance Costs | 252,117 | 260,149 | |||
Roanoke Gas Company [Member] | Unsecured Senior Notes [Member] | Unsecured Senior Notes Payable at 4.26%, due on September 18, 2034 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal | 30,500,000 | 30,500,000 | |||
Unamortized Debt Issuance Costs | $ 166,533 | 173,773 | |||
Stated percentage rate | 4.26% | ||||
Roanoke Gas Company [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 0.90%, due November 1, 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal | $ 7,000,000 | 0 | |||
Unamortized Debt Issuance Costs | $ 14,451 | 0 | |||
Roanoke Gas Company [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 0.90%, due November 1, 2021 [Member] | 30-day LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable rate basis points (as a percent) | 0.90% | 0.90% | |||
Roanoke Gas Company [Member] | Line of Credit [Member] | Line of Credit, at 30-day LIBOR plus 1.00%, due March 31, 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal | $ 10,516,426 | 0 | |||
Unamortized Debt Issuance Costs | $ 0 | 0 | |||
Roanoke Gas Company [Member] | Line of Credit [Member] | Line of Credit, at 30-day LIBOR plus 1.00%, due March 31, 2019 [Member] | 30-day LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable rate basis points (as a percent) | 1.00% | 1.00% | |||
RGC Midstream LLC [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.60%, due December 29, 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal | $ 5,320,200 | 3,396,200 | |||
Unamortized Debt Issuance Costs | $ 71,133 | $ 86,376 | |||
RGC Midstream LLC [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.60%, due December 29, 2020 [Member] | 30-day LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable rate basis points (as a percent) | 1.60% | 1.60% |
Other Comprehensive Income (Sch
Other Comprehensive Income (Schedule of Other Comprehensive Income and Loss) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Before-Tax Amount | ||||
Unrealized losses | $ (40,382) | $ 0 | $ 118,606 | $ 0 |
Amortization of actuarial losses | 64,058 | 55,268 | 192,174 | 165,804 |
Other comprehensive income | 23,676 | 55,268 | 310,780 | 165,804 |
Tax (Expense) or Benefit | ||||
Unrealized losses | 15,329 | 0 | (45,023) | 0 |
Amortization of actuarial losses | (24,316) | (20,979) | (72,948) | (62,937) |
Other comprehensive income | (8,987) | (20,979) | (117,971) | (62,937) |
Net-of-Tax Amount | ||||
Unrealized losses | (25,053) | 0 | 73,583 | 0 |
Amortization of actuarial losses | 39,742 | 34,289 | 119,226 | 102,867 |
Other comprehensive income | $ 14,689 | $ 34,289 | $ 192,809 | $ 102,867 |
Other Comprehensive Income (S37
Other Comprehensive Income (Schedule of Components of Accumulated Comprehensive Loss) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Increase (Decrease) in Other Accumulated Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | $ 55,667,072 | |||
Other comprehensive income | $ 14,689 | $ 34,289 | 192,809 | $ 102,867 |
Balance at end of period | 59,671,700 | 59,671,700 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Increase (Decrease) in Other Accumulated Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | (2,497,231) | |||
Balance at end of period | $ (2,304,422) | $ (2,304,422) |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Jun. 28, 2017USD ($)employee | Jun. 30, 2017pipeline |
Commitments and Contingencies Disclosure [Abstract] | ||
Number of employees impacted by outsourcing | employee | 18 | |
Accrued severance costs | $ | $ 135,000 | |
Number of pipelines serving Roanoke Gas | pipeline | 2 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 615,562 | $ 627,068 | $ 6,072,979 | $ 5,661,305 |
Weighted average common shares | 7,227,171 | 7,160,650 | 7,212,289 | 7,140,914 |
Effect of dilutive securities: | ||||
Options to purchase common stock (in shares) | 46,669 | 12,062 | 32,275 | 7,951 |
Diluted average common shares | 7,273,840 | 7,172,712 | 7,244,564 | 7,148,865 |
Earnings Per Share of Common Stock: | ||||
Basic (in dollars per share) | $ 0.09 | $ 0.09 | $ 0.84 | $ 0.79 |
Diluted (in dollars per share) | $ 0.08 | $ 0.09 | $ 0.84 | $ 0.79 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Components of Net Periodic Pension and Postretirement Benefit Cost) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 176,669 | $ 173,594 | $ 530,007 | $ 520,782 |
Interest cost | 248,900 | 283,194 | 746,700 | 849,582 |
Expected return on plan assets | (404,103) | (373,060) | (1,212,309) | (1,119,180) |
Recognized loss | 165,545 | 125,420 | 496,635 | 376,260 |
Net periodic/postretirement pension/benefit cost | 187,011 | 209,148 | 561,033 | 627,444 |
Postretirement Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 45,817 | 37,005 | 137,451 | 111,015 |
Interest cost | 156,706 | 156,145 | 470,118 | 468,435 |
Expected return on plan assets | (142,878) | (126,965) | (428,634) | (380,895) |
Recognized loss | 107,440 | 62,543 | 322,320 | 187,629 |
Net periodic/postretirement pension/benefit cost | $ 167,085 | $ 128,728 | $ 501,255 | $ 386,184 |
Employee Benefit Plans (Sched41
Employee Benefit Plans (Schedule of Actual and Expected Employer Contributions) (Details) | 9 Months Ended |
Jun. 30, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal Year-to-Date Contributions | $ 450,000 |
Fiscal Year-to-Date Expected Future Employer Contributions | 1,300,000 |
Defined Benefit Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal Year-to-Date Contributions | 450,000 |
Fiscal Year-to-Date Expected Future Employer Contributions | 300,000 |
Postretirement Medical Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal Year-to-Date Contributions | 0 |
Fiscal Year-to-Date Expected Future Employer Contributions | $ 1,000,000 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis) (Details) - USD ($) | Jun. 30, 2017 | Sep. 30, 2016 |
Assets: | ||
Total | $ 118,606 | |
Liabilities: | ||
Total | 1,880,645 | $ 1,052,930 |
Quoted Prices in Active Markets (Level 1) [Member] | ||
Assets: | ||
Total | 0 | |
Liabilities: | ||
Total | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Total | 118,606 | |
Liabilities: | ||
Total | 1,880,645 | 1,052,930 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Total | 0 | |
Liabilities: | ||
Total | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | ||
Liabilities: | ||
Natural gas purchases | 1,880,645 | 1,052,930 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | ||
Assets: | ||
Interest rate swap | 118,606 | |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets (Level 1) [Member] | ||
Liabilities: | ||
Natural gas purchases | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets (Level 1) [Member] | Interest Rate Swap [Member] | ||
Assets: | ||
Interest rate swap | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Liabilities: | ||
Natural gas purchases | 1,880,645 | 1,052,930 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Swap [Member] | ||
Assets: | ||
Interest rate swap | 118,606 | |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Liabilities: | ||
Natural gas purchases | 0 | $ 0 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Interest Rate Swap [Member] | ||
Assets: | ||
Interest rate swap | $ 0 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of the Fair Value of Financial Assets and Liabilities Not Adjusted to Fair Value) (Details) - USD ($) | Jun. 30, 2017 | Sep. 30, 2016 |
Quoted Prices in Active Markets (Level 1) [Member] | ||
Liabilities: | ||
Long-term debt - notes payable | $ 0 | $ 0 |
Total | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Liabilities: | ||
Long-term debt - notes payable | 0 | 0 |
Total | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Liabilities: | ||
Long-term debt - notes payable | 44,295,661 | 36,163,523 |
Total | 44,295,661 | 36,163,523 |
Carrying Value [Member] | ||
Liabilities: | ||
Long-term debt - notes payable | 42,820,200 | 33,896,200 |
Total | $ 42,820,200 | $ 33,896,200 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - Accounts Receivable [Member] - customer | 9 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk, number of customers | 0 | 0 |
Concentration risk percentage | 5.00% | 5.00% |
Stock Options (Details)
Stock Options (Details) - USD ($) | Dec. 08, 2016 | Jun. 30, 2017 | Jun. 30, 2016 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Options granted (in shares) | 25,500 | ||
Grant price (in dollars per share) | $ 16.37 | ||
Option vesting period | 6 months | ||
Option expiration period | 10 years | ||
Fair value at the grant date (in dollars per share) | $ 2.89 | ||
Total compensation expense | $ 73,780 | $ 64,640 |