Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2018 | Jan. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
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 Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 8,022,969 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Dec. 31, 2018 | Sep. 30, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 10,809 | $ 247,411 |
Accounts receivable (less allowance for uncollectibles of $232,293 and $103,573, respectively) | 11,715,432 | 3,913,830 |
Materials and supplies | 968,101 | 913,889 |
Gas in storage | 6,161,587 | 7,627,196 |
Prepaid income taxes | 225,293 | 837,683 |
Under-recovery of gas costs | 1,365,700 | 922,898 |
Interest rate swap | 70,922 | 100,723 |
Other | 1,811,891 | 980,972 |
Total current assets | 22,329,735 | 15,544,602 |
UTILITY PROPERTY: | ||
In service | 227,481,444 | 224,854,320 |
Accumulated depreciation and amortization | (64,465,841) | (63,099,306) |
In service, net | 163,015,603 | 161,755,014 |
Construction work in progress | 7,016,450 | 4,208,614 |
Utility plant, net | 170,032,053 | 165,963,628 |
OTHER ASSETS: | ||
Regulatory assets | 8,848,720 | 8,862,147 |
Investment in unconsolidated affiliates | 32,817,281 | 28,507,146 |
Interest rate swap | 130,023 | 209,840 |
Other | 544,979 | 472,743 |
Total other assets | 42,341,003 | 38,051,876 |
TOTAL ASSETS | 234,702,791 | 219,560,106 |
CURRENT LIABILITIES: | ||
Dividends payable | 1,329,290 | 1,242,753 |
Accounts payable | 6,788,991 | 5,211,032 |
Capital contributions payable | 3,747,086 | 10,142,766 |
Customer credit balances | 809,289 | 1,003,622 |
Customer deposits | 1,562,217 | 1,421,043 |
Accrued expenses | 2,844,605 | 3,750,466 |
Regulatory liability - tax reform | 2,334,600 | 1,320,167 |
Total current liabilities | 19,416,078 | 24,091,849 |
LONG-TERM DEBT: | ||
Notes payable | 73,587,200 | 63,243,200 |
Line-of-credit | 15,801,798 | 7,361,017 |
Less unamortized debt issuance costs | (269,587) | (282,281) |
Long-term debt net of unamortized debt issuance costs | 89,119,411 | 70,321,936 |
DEFERRED CREDITS AND OTHER LIABILITIES: | ||
Asset retirement obligations | 6,489,550 | 6,417,948 |
Regulatory cost of retirement obligations | 11,481,314 | 11,163,981 |
Benefit plan liabilities | 3,645,261 | 3,947,967 |
Deferred income taxes | 12,761,997 | 12,585,577 |
Regulatory liability - deferred income taxes | 10,829,440 | 11,447,736 |
Total deferred credits and other liabilities | 45,207,562 | 45,563,209 |
STOCKHOLDERS’ EQUITY: | ||
Common stock, $5 par value; authorized 10,000,000 shares; issued and outstanding 8,011,650 and 7,994,615, respectively | 40,058,250 | 39,973,075 |
Preferred stock, no par, authorized 5,000,000 shares; no shares issued and outstanding | 0 | 0 |
Capital in excess of par value | 13,306,598 | 13,043,656 |
Retained earnings | 28,549,876 | 27,438,049 |
Accumulated other comprehensive loss | (954,984) | (871,668) |
Total stockholders’ equity | 80,959,740 | 79,583,112 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 234,702,791 | $ 219,560,106 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2018 | Sep. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for uncollectibles | $ 232,293 | $ 103,573 |
Common stock, par value (in dollars per share) | $ 5 | $ 5 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 8,011,650 | 7,994,615 |
Common stock, share outstanding | 8,011,650 | 7,994,615 |
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 | |
Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING REVENUES: | ||
Operating revenues | $ 21,216,747 | $ 18,756,051 |
OPERATING EXPENSES: | ||
Operations and maintenance | 3,521,999 | 3,227,744 |
General taxes | 507,889 | 466,322 |
Depreciation and amortization | 1,905,475 | 1,734,878 |
Total operating expenses | 17,952,525 | 15,111,560 |
OPERATING INCOME | 3,264,222 | 3,644,491 |
Equity in earnings of unconsolidated affiliate | 563,049 | 148,811 |
Other income (expense), net | 125,886 | 14,501 |
Interest expense | 816,782 | 612,645 |
INCOME BEFORE INCOME TAXES | 3,136,375 | 3,195,158 |
INCOME TAX EXPENSE | 702,213 | 1,135,696 |
NET INCOME | $ 2,434,162 | $ 2,059,462 |
BASIC EARNINGS PER COMMON SHARE (in dollars per share) | $ 0.30 | $ 0.28 |
DILUTED EARNINGS PER COMMON SHARE (in dollars per share) | 0.30 | 0.28 |
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $ 0.165 | $ 0.155 |
Gas Utility [Member] | ||
OPERATING REVENUES: | ||
Operating revenues | $ 21,036,581 | $ 18,519,994 |
OPERATING EXPENSES: | ||
Cost of gas and sales | 11,906,459 | 9,561,406 |
Non Utility [Member] | ||
OPERATING REVENUES: | ||
Operating revenues | 180,166 | 236,057 |
OPERATING EXPENSES: | ||
Cost of gas and sales | $ 110,703 | $ 121,210 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $ 2,434,162 | $ 2,059,462 |
Other comprehensive income (loss), net of tax: | ||
Interest rate swap | (81,403) | 44,645 |
Defined benefit plans | (1,913) | (4,249) |
Other comprehensive loss | (83,316) | 40,396 |
COMPREHENSIVE INCOME | $ 2,350,846 | $ 2,099,858 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at beginning of period at Sep. 30, 2017 | $ 60,040,472 | $ 36,204,230 | $ 292,485 | $ 24,746,021 | $ (1,202,264) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 2,059,462 | 2,059,462 | |||
Other comprehensive income (loss) | 40,396 | 40,396 | |||
Cash dividends declared | (1,125,804) | (1,125,804) | |||
Issuance of common stock | 286,509 | 50,840 | 235,669 | ||
Balance at end of period at Dec. 31, 2017 | 61,301,035 | 36,255,070 | 528,154 | 25,679,679 | (1,161,868) |
Balance at beginning of period at Sep. 30, 2018 | 79,583,112 | 39,973,075 | 13,043,656 | 27,438,049 | (871,668) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 2,434,162 | 2,434,162 | |||
Other comprehensive income (loss) | (83,316) | (83,316) | |||
Cash dividends declared | (1,322,335) | (1,322,335) | |||
Issuance of common stock | 348,117 | 85,175 | 262,942 | ||
Balance at end of period at Dec. 31, 2018 | $ 80,959,740 | $ 40,058,250 | $ 13,306,598 | $ 28,549,876 | $ (954,984) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per share (in dollars per share) | $ 0.165 | $ 0.155 |
Common stock issued (in shares) | 17,035 | 10,168 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 2,434,162 | $ 2,059,462 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 1,940,472 | 1,765,779 |
Cost of retirement of utility plant, net | (50,093) | (121,384) |
Equity in earnings of unconsolidated affiliate | (563,049) | (148,811) |
Changes in assets and liabilities which used cash, exclusive of changes and noncash transactions shown separately | (6,061,666) | (5,513,739) |
Net cash used in operating activities | (2,300,174) | (1,958,693) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to utility plant and nonutility property | (5,691,011) | (4,306,651) |
Investment in unconsolidated affiliate | (10,142,766) | (1,232,980) |
Proceeds from disposal of equipment | 249 | 244 |
Net cash used in investing activities | (15,833,528) | (5,539,387) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of notes payable | 10,344,000 | 9,264,000 |
Borrowings under line-of-credit agreement | 13,760,363 | 11,888,529 |
Repayments under line-of-credit agreement | (5,319,582) | (12,625,912) |
Proceeds from issuance of stock | 348,117 | 286,509 |
Cash dividends paid | (1,235,798) | (1,050,408) |
Net cash provided by financing activities | 17,897,100 | 7,762,718 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (236,602) | 264,638 |
BEGINNING CASH AND CASH EQUIVALENTS | 247,411 | 69,640 |
ENDING CASH AND CASH EQUIVALENTS | 10,809 | 334,278 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Interest paid | 1,101,028 | 814,061 |
Income taxes paid | $ 0 | $ 0 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2018 and the results of its operations, cash flows, comprehensive income and changes in stockholders' equity for the three months ended December 31, 2018 and 2017 . The results of operations for the three months ended December 31, 2018 are not indicative of the results to be expected for the fiscal year ending September 30, 2019 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 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, 2018 . The September 30, 2018 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, 2018 . Newly adopted and newly issued accounting standards are discussed below. Certain reclassifications have been made to the prior year income statements to be consistent with the current year presentation by moving cost of gas - utility and cost of sales - non utility under the operating expenses caption. This reclassification makes the Company's income statement presentation consistent with industry peers. 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. Subsequently issued ASUs provided additional guidance to assist in the implementation of the new revenue standard. The standard is effective for the Company's annual reporting period ending September 30, 2019 and interim periods within that annual period. The Company adopted ASU 2014-09 and all amendments in the quarter ended December 31, 2018. Consistent with the modified retrospective adoption method, prior reporting period results remain unchanged and reported in accordance with ASC 605. As it relates to the Company’s contracts to deliver natural gas to customers, the guidance in ASC 606 is consistent with the guidance in ASC 605; therefore, the modified retrospective approach resulted in no cumulative catch-up to retained earnings. Furthermore, there was no significant impact to revenues recognized for the quarter ended December 31, 2018 and no significant changes to the Company’s related business processes, systems or internal controls over financial reporting because of the new guidance. See Note 2 for further information related to the new standard. 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 Company adopted the ASU for the quarter ended December 31, 2018. The new guidance did not have a material effect on the Company's 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. In January 2018, the FASB issued ASU 2018-01, which provides a practical expedient that allows entities the option of not evaluating existing land easements under the new lease standard for those easements that were entered into prior to adoption. New or modified land easements will require evaluation on a prospective basis. The Company has completed its inventory of leases and does not currently expect the new gudiance to have a material effect on its 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 a subtotal for income from operations is presented, outside of income from operations. The Company adopted the new guidance effective October 1, 2018. As a result, the Company now presents the other components of net periodic benefit costs outside of operations under the category of "other income (expense), net" in the condensed consolidated income statement. As the new guidance related to the expense classification was implemented on a retrospective basis, adjustments were made to the prior period financial statements as follow: Three Months Ended December 31, 2017 As Previously Reported Effect of Change As Adjusted Operations and maintenance $ 3,197,111 $ 30,633 $ 3,227,744 Total operating expenses 15,080,927 30,633 15,111,560 Operating income 3,675,124 (30,633 ) 3,644,491 Other income (expense), net (16,132 ) 30,633 14,501 Income before income taxes $ 3,195,158 $ — $ 3,195,158 In addition, the ASU allows only the service cost component of net periodic benefit cost to be eligible for capitalization when applicable. Previously, the Company included all components of net periodic benefit costs for capitalization. Management has had discussions with its state regulators regarding the adoption of this ASU for regulatory purposes. The regulatory body has not taken a position on the change in capitalization requirements for these benefit costs and will evaluate the impact of this ASU on a case by case basis. The Company adopted the capitalization change prospectively on October 1, 2018. If the regulatory body ultimately determines that changes to the capitalization of these retirement benefits is not appropriate for regulatory purposes, the Company may have to establish regulatory assets or liabilities for those costs or benefits excluded from capitalization under this ASU. The adoption of this new guidance does not have a material effect on the Company's consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting For Hedging Activities . The ASU is meant to simplify recognition and presentation guidance in an effort to improve financial reporting of cash flow and fair value hedging relationships to better portray the economic results of an entity's risk management activities. This is achieved through changes to both the designation and measurement guidance for qualifying hedging relationships, as well as changes to the presentation of hedge results. 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 has not completed its evaluation of the new guidance; however, it does not currently expect the new guidance to have a material effect on its financial position, results of operations or cash flows. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . This ASU modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The new guidance is effective for the Company for the annual reporting period ending September 30, 2021. Early adoption is permitted. Management has not completed its evaluation of the new guidance; however, the ASU only modifies disclosure requirements and will not effect financial position, results of operations or cash flows. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs incurred in a Cloud Computing Arrangement that is a Service Contract . This ASU reduces the complexity of accounting for costs of implementing a cloud computing service arrangement and aligns the following requirements to capitalize implementation costs: 1) those incurred in a hosting arrangement that is a service contract, and 2) those incurred to develop or obtain internal-use software, including hosting arrangements that include an internal software license. The new guidance is effective for the Company for the annual reporting period beginning October 1, 2020. Management has not completed its evaluation of the new guidance; however, it believes the new guidance will change the future treatment of certain contracts by allowing related implementation costs to be capitalized and amortized over time, rather than directly expensed. Management does not currently expect the new guidance to have a material effect on its financial position, results of operations or cash flows. 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. |
Revenue
Revenue | 3 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue The Company assesses new contracts and identifies related performance obligations for promises to transfer distinct goods or services to the customer. Revenue is recognized when performance obligations have been satisfied. In the case of Roanoke Gas, the Company contracts with its customers for the sale and/or delivery of natural gas. The following tables summarize revenue by customer, product and income statement classification: Three months ended December 31, 2018 Three months ended December 31, 2017 Gas utility Non utility Total operating revenues Gas utility Non utility Total operating revenues Natural Gas (Billed and Unbilled): Residential $ 13,012,592 $ — $ 13,012,592 $ 11,233,500 $ — $ 11,233,500 Commercial 7,342,702 — 7,342,702 6,306,857 — 6,306,857 Industrial and Transportation 1,226,137 — 1,226,137 1,124,657 — 1,124,657 Revenue reductions (TCJA) (1) (523,881 ) — (523,881 ) (462,442 ) — (462,442 ) Other 226,492 180,166 406,658 245,262 236,057 481,319 Total contracts with customers 21,284,042 180,166 21,464,208 18,447,834 236,057 18,683,891 Alternative Revenue Programs (247,461 ) — (247,461 ) 72,160 — 72,160 Total operating revenues $ 21,036,581 $ 180,166 $ 21,216,747 $ 18,519,994 $ 236,057 $ 18,756,051 (1) Accrued refund associated with excess revenue collected in tariff rates associated with the reduction in federal income tax rates. See Note 4 for more information. Gas utility revenues Substantially all of Roanoke Gas’ revenues are derived from rates authorized by the Virginia State Corporation Commission ("SCC") as reflected in its tariffs. Based on its evaluation of ASC 606, the Company has concluded that these tariff-based revenues fall within the scope of ASC 606. Tariff rates represent the transaction price. Performance obligations created under these tariff-based sales include commodity (the cost of natural gas sold to customers) and delivery (transporting natural gas through the Company’s distribution system to customers). The sale and/or delivery of natural gas to customers result in the satisfaction of the Company’s performance obligation over time as natural gas is delivered. All customers are billed each month based on consumption as measured by metered usage. Revenue is recognized as bills are issued for natural gas that has been delivered or transported to customers. In addition, the Company utilizes the practical expedient that allows an entity to recognize the invoiced amount as revenue, if that amount corresponds to the value received by the customer. Since customers are billed tariff rates, there is no variable consideration in transaction price. Unbilled revenue is included in residential and commercial revenues above. Natural gas consumption is estimated for the period subsequent to the last billed date and up through the last day of the month. Estimated volumes and approved tariff rates are utilized to calculate unbilled revenue. The following month, the unbilled estimate is reversed, the actual usage is billed and a new unbilled estimate is calculated. The Company obtains metered usage for industrial customers at the end of each month, thereby eliminating any unbilled consideration for these rate classes. Other revenues Other revenues primarily consist of miscellaneous fees and charges and utility-related revenues not directly billed to utility customers as well as billings for non utility activities. Non utility (unregulated) activities provided by the Company include contract paving and other similar services. Regarding these activities, the customer is invoiced monthly based on services provided. The Company utilizes the practical expedient allowing revenue to be recognized based on invoiced amounts. The transaction price is based on a contractually predetermined rate schedule; therefore, the transaction price represents total value to the customer and no variable price consideration exists. Alternative Revenue Program (ARP) revenues ARPs, which fall outside the scope of ASC 606, are SCC approved mechanisms that allow for the adjustment of revenues for certain broad, external factors, or for additional billings if the entity achieves certain performance targets. The Company's ARPs include its Weather Normalization Adjustment (WNA), which adjusts revenues for the effects of weather temperature variations from the 30-year average, and the SAVE Plan over/under collection mechanism, which adjusts revenues for the differences between SAVE Plan revenues ("Steps to Advance Virginia Energy") billed to customers in the current tariff rates and the revenue earned, as calculated based on the timing and extent of infrastructure replacement completed during the period. These amounts are ultimately collected from, or returned to, customers through future changes to tariff rates. Customer Accounts Receivable Accounts receivable, as reflected in the Condensed Consolidated Balance Sheets, includes both billed and unbilled customer revenues, as well as amounts that are not related to customers. The balances of customer receivables are provided below: Assets (current) Liabilities (current) Trade accounts receivable (1) Unbilled revenue (1) Customer credit balances Customer deposits Balance at September 30, 2018 $ 2,675,611 $ 913,087 $ 1,003,622 $ 1,421,043 Balance at December 31, 2018 7,676,308 3,784,863 809,289 1,562,217 Increase (decrease) $ 5,000,697 $ 2,871,776 $ (194,333 ) $ 141,174 (1) Included in "Accounts receivable, net" in the condensed consolidated balance sheet. Amounts shown net of reserve for bad debts. The Company had no significant contract assets or liabilities during the period. Furthermore, the Company did not incur any significant costs to obtain contracts. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act, ("TCJA") became law. The TCJA's most significant impact is the reduction of the maximum corporate federal income tax rate from 35% to 21% beginning January 1, 2018. As the Company is a fiscal year taxpayer, it had a blended rate of 24.3% in fiscal 2018 as determined by the number of days in the fiscal year in which the 34% and 21% , rates were each applicable. The Company fully transitioned to the 21% rate in fiscal 2019. Under the provisions of ASC 740 - Income Taxes , the deferred tax assets and liabilities of the Company must be revalued to reflect the reduction in the federal tax rate. For unregulated entities, the revaluation of excess deferred income taxes are flowed through income tax expense in the period of change. For rate regulated entities such as Roanoke Gas, these excess deferred taxes were originally recovered from its customers based on billing rates derived using a federal income tax rate of 34% . As a result, these excess deferred taxes must be returned to customers. The Company began reflecting the refund of these excess deferred taxes in fiscal 2018. As the refund should have no effect on the income of the Company, the income statement reflects both a reduction in revenues and a corresponding reduction in income taxes associated with the flow back of these excess deferred taxes. The result is a lowering of the effective tax rate for the Company. A reconciliation of income tax expense from applying the federal statutory rates in effect for each period to total income tax expense is presented below: Three Months Ended December 31, 2018 2017 Income before income taxes $ 3,136,375 $ 3,195,158 Corporate federal tax rate 21.00 % 24.30 % Income tax expense computed at the federal statutory rate $ 658,639 $ 776,423 State income taxes, net of federal tax benefit 150,589 146,087 Net amortization of excess deferred taxes on regulated operations (86,208 ) — Revaluation of unregulated deferred taxes — 206,830 Other, net (20,807 ) 6,356 Total income tax expense $ 702,213 $ 1,135,696 Effective tax rate 22.4 % 35.5 % |
Rates and Regulatory Matters
Rates and Regulatory Matters | 3 Months Ended |
Dec. 31, 2018 | |
Regulated Operations [Abstract] | |
Rates and Regulatory Matters | Rates and Regulatory Matters The 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. As referenced in Note 3, the TCJA provides for a reduction in the federal corporate tax rate to 21% . The Company revalued its deferred tax assets and liabilities to reflect the new federal tax rate. Under the provisions of ASC 740, the corresponding adjustment to deferred income taxes generally flows directly to income tax expense. For rate regulated entities such as Roanoke Gas, these excess deferred taxes were originally recovered from its customers based on billing rates derived using a federal income tax rate of 34% . Therefore, the adjustment to the net deferred tax liabilities of Roanoke Gas, to the extent such net deferred tax liabilities are attributable to rate base or cost of service for customers, are refundable to customers. Roanoke Gas began accounting for the refund of these excess deferred taxes in fiscal 2018 along with reflecting a corresponding reduction in income tax expense. As of December 31, 2018, Roanoke Gas had $11,293,801 remaining in both the current and non-current portions of the net regulatory liability related to these excess deferred income taxes most of which will be refunded over a 28 year period in order not to violate IRS normalization requirements. The Company has transitioned to a corporate federal income tax rate of 21.0% and a combined 25.74% state and federal tax rate in fiscal 2019. In January 2018, the SCC issued a directive requiring the accrual of a regulatory liability for excess revenues collected from customers attributable to the higher federal income tax rate, currently included as a component of customer billing rates, until such time as the SCC approves revised billing rates incorporating the lower tax rate. For the three-month periods ending December 31, 2018 and 2017, the Company had recorded a reduction to revenue of $523,881 and $462,442 , respectively, reflecting the estimated excess revenue collected from customers during the corresponding quarters with a total estimated refund balance of $1,882,508 as of December 31, 2018. The reduction in revenues correlates with a reduction in corporate income tax expense for the regulated operations of Roanoke Gas for each period due to the tax rate decrease. Beginning with January 2019 customer billings, the Company will refund the excess revenues to customers over the next 12 months. The estimated total refund of these excess revenues is subject to final review and adjustment by the SCC. The current portion of the excess deferred income tax and the accrued refund for excess revenues are included in regulatory liabilities - tax reform line in the Condensed Consolidated Balance Sheet. On October 10, 2018, Roanoke Gas filed a general rate case application requesting an annual increase in customer non-gas base rates of $10.5 million . This application incorporates into the non-gas base rate the impact of tax reform, non-SAVE utility plant investment, increased operating costs and approximately $4.7 million in SAVE plan ("Steps to Advance Virginia Energy") revenues that are currently being billed through the SAVE rider. The new non-gas base rates were placed in effect for service rendered on or after January 1, 2019, subject to refund pending audit and final order by the SCC. The last non-gas base rate increase was placed into effect in November 2013. |
Other Investments
Other Investments | 3 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [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 the Mountain Valley Pipeline ("MVP" or "pipeline"), a natural gas pipeline originating in northern West Virginia and extending through south central Virginia. When completed, the pipeline will have the capacity to transport approximately 2 million decatherms of natural gas per day. The pipeline has received Federal Energy Regulatory Commission ("FERC") approval and is under construction. The current total project cost as estimated by the LLC managing partner has increased to $4.6 billion due to weather, judicial and regulatory delays. Midstream's estimated total cash contribution for its 1% equity interest in the LLC will be approximately $46 million through periodic capital contributions throughout the term of the project. Assuming timely resolution of the judicial and regulatory delays, the LLC managing partner projects an in-service date for the MVP by the end of calendar 2019. The Company is utilizing the equity method to account for the transactions and activity of the investment in MVP and is participating in the earnings in proportion to its level of investment. In April 2018, the LLC announced the MVP Southgate project ("Southgate"), which is a planned 70 mile pipeline extending from the MVP mainline in Virginia to delivery points in North Carolina. Midstream is a less than 1% investor in the project, which will be accounted for under the cost method. Total estimated project cost is between $350 and $500 million , of which Midstream's portion will be approximately $1.8 to $2.5 million . The Southgate in-service date is currently targeted for the end of calendar 2020. On a quarterly basis, the LLC issues a capital call notice, which specifies the capital contributions for MVP and Southgate to be paid over the subsequent 3 months . As of December 31, 2018 , the Company had $3,747,086 remaining to be paid under the most recent notice. The capital contribution payable has been reflected on the Company's balance sheet as of December 31, 2018 , with a corresponding increase to "investment in unconsolidated affiliates". Related to capital contributions payable, there was a $6,395,680 non-cash decrease in the "investment in unconsolidated affiliates" during the three months ended December 31, 2018 . Funding for Midstream's investments in the LLC for both the MVP and Southgate projects are being provided through two unsecured promissory notes, each with a 5 -year term. The financial statement locations of the investment in the LLC are as follows: Balance Sheet Location of Other Investments: December 31, 2018 September 30, 2018 Other Assets: Investment in MVP $ 32,629,235 $ 28,387,031 Investment in Southgate 188,046 120,115 Investment in unconsolidated affiliates $ 32,817,281 $ 28,507,146 Current Liabilities: MVP $ 3,679,154 $ 10,022,652 Southgate 67,932 120,114 Capital contributions payable $ 3,747,086 $ 10,142,766 Three Months Ended Income Statement Location of Other Investments: December 31, 2018 December 31, 2017 Equity in earnings of unconsolidated affiliate $ 563,049 $ 148,811 |
Derivatives and Hedging
Derivatives and Hedging | 3 Months Ended |
Dec. 31, 2018 | |
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 as discussed in Note 7. Effective November 1, 2017, the swap agreement converted the floating rate note based on LIBOR into 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 sheet: December 31, 2018 September 30, 2018 Derivative designated as hedging instrument: Current assets: Interest rate swap $70,922 $100,723 Other assets: Interest rate swap $130,023 $209,840 Total derivatives designed as hedging instruments $200,945 $310,563 The table in Note 8 reflects the effect on income and other comprehensive income of the Company's cash flow hedge. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Roanoke Gas has unsecured notes at varying fixed interest rates as well as a variable-rate note with interest based on 30-day LIBOR plus 90 basis points . The variable rate note is hedged by a swap agreement, which converts the debt into a fixed-rate instrument with an annual interest rate of 2.30% . These debt instruments provide a portion of the underlying financing for Roanoke Gas' utility plant investment. Roanoke Gas also has an unsecured line-of-credit agreement. This agreement is for a two -year term expiring March 31, 2020 with a maximum borrowing limit of $25,000,000 . Amounts drawn against the 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. The agreement has a variable-interest rate based on 30-day LIBOR plus 100 basis points and an availability fee of 15 basis points and provides multi-tiered borrowing limits associated with the seasonal borrowing demands of the Company. The Company's total available borrowing limits during the remaining term of the agreement range from $17,000,000 to $25,000,000 . Midstream has two Promissory Notes ("Notes") to finance the capital investment in the LLC related to the construction of the MVP. Under the terms of the Notes, Midstream's current total borrowing availability is $38 million with a variable-interest rate based on 30-day LIBOR plus 135 basis points . On January 2, 2019, Roanoke Gas entered into an agreement to issue notes in the aggregate principal amount of $10 million . These notes are scheduled to be issued on the day of closing currently proposed for March 28, 2019. These notes will have a 12 -year term from the date of issue with a fixed interest rate of 4.41% . Proceeds from these notes will be used to refinance a portion of Roanoke Gas' debt under the line-of-credit. 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 total capitalization. All of the debt agreements, except for the line-of-credit, provide for priority indebtedness to not exceed 15% of consolidated total assets. Long-term debt consists of the following: December 31, 2018 September 30, 2018 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 $ 152,052 $ 30,500,000 $ 154,465 Unsecured term note payable, at 30-day LIBOR plus 0.90%, due November 1, 2021 7,000,000 9,449 7,000,000 10,283 Unsecured term notes payable, at 3.58% due on October 2, 2027 8,000,000 42,139 8,000,000 43,343 RGC Midstream, LLC: Unsecured term notes payable, at 30-day LIBOR plus 1.35%, due December 29, 2020 28,087,200 65,947 17,743,200 74,190 Total notes payable $ 73,587,200 $ 269,587 $ 63,243,200 $ 282,281 Line-of-credit, at 30-day LIBOR plus 1.00%, due March 31, 2020 $ 15,801,798 $ — $ 7,361,017 $ — Total long-term debt $ 89,388,998 $ 269,587 $ 70,604,217 $ 282,281 |
Other Comprehensive Income
Other Comprehensive Income | 3 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2018 Interest rate swap: Unrealized losses $ (93,956 ) $ 24,184 $ (69,772 ) Transfer of realized gains to interest expense (15,662 ) 4,031 (11,631 ) Net interest rate swap (109,618 ) 28,215 (81,403 ) Defined benefit plans: Amortization of actuarial gains (2,576 ) 663 (1,913 ) Other comprehensive loss $ (112,194 ) $ 28,878 $ (83,316 ) Three Months Ended December 31, 2017 Interest rate swap: Unrealized gains $ 61,581 $ (17,760 ) $ 43,821 Transfer of realized losses to interest expense 1,158 (334 ) 824 Net interest rate swap 62,739 (18,094 ) 44,645 Defined benefit plans: Amortization of actuarial gains (5,971 ) 1,722 (4,249 ) Other comprehensive income $ 56,768 $ (16,372 ) $ 40,396 The amortization of actuarial losses is included as a component of net periodic pension and postretirement benefit costs under other income (expense), net. Reconciliation of Other Accumulated Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) Balance at September 30, 2018 $ (871,668 ) Other comprehensive loss (83,316 ) Balance at December 31, 2018 $ (954,984 ) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2018 | |
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. 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 currently 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. The MVP will provide Roanoke Gas with access to an additional delivery source to its distribution system. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per common share for the three months ended December 31, 2018 and 2017 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 December 31, 2018 2017 Net Income $ 2,434,162 $ 2,059,462 Weighted average common shares 8,003,736 7,248,094 Effect of dilutive securities: Options to purchase common stock 48,261 48,086 Diluted average common shares 8,051,997 7,296,180 Earnings Per Share of Common Stock: Basic $ 0.30 $ 0.28 Diluted $ 0.30 $ 0.28 |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Dec. 31, 2018 | |
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 hired before January 1, 2017 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 is detailed as follows: Three Months Ended December 31, 2018 2017 Components of net periodic pension cost: Service cost $ 134,317 $ 166,309 Interest cost 291,682 272,045 Expected return on plan assets (387,359 ) (465,710 ) Recognized loss 39,650 87,758 Net periodic pension cost $ 78,290 $ 60,402 Three Months Ended December 31, 2018 2017 Components of postretirement benefit cost: Service cost $ 33,221 $ 41,805 Interest cost 162,236 160,151 Expected return on plan assets (136,805 ) (155,845 ) Recognized loss 30,951 70,967 Net postretirement benefit cost $ 89,603 $ 117,078 The components of net periodic benefit cost, other than the service cost component, are included in the line item "other income (expense), net" in the condensed consolidated income statement as prescribed under ASU 2017-07 and discussed in Note 1. Service cost is included in the "operations and maintenance" line. 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 $ 400,000 $ 400,000 Postretirement medical plan — 300,000 Total $ 400,000 $ 700,000 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2018 | |
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 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 December 31, 2018 and September 30, 2018 : Fair Value Measurements - December 31, 2018 Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Interest rate swap $ 200,945 $ — $ 200,945 $ — Total $ 200,945 $ — $ 200,945 $ — Liabilities: Natural gas purchases $ 749,564 $ — $ 749,564 $ — Total $ 749,564 $ — $ 749,564 $ — Fair Value Measurements - September 30, 2018 Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Interest rate swap $ 310,563 $ — $ 310,563 $ — Total $ 310,563 $ — $ 310,563 $ — Liabilities: Natural gas purchases $ 693,495 $ — $ 693,495 $ — Total $ 693,495 $ — $ 693,495 $ — The fair value of the interest rate swap 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 December 31, 2018 and September 30, 2018 , 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 December 31, 2018 and September 30, 2018 : Fair Value Measurements - December 31, 2018 Carrying Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Notes payable $ 73,587,200 $ — $ — $ 72,219,484 Total $ 73,587,200 $ — $ — $ 72,219,484 Fair Value Measurements - September 30, 2018 Carrying Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Notes payable $ 63,243,200 $ — $ — $ 62,435,237 Total $ 63,243,200 $ — $ — $ 62,435,237 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 spreads. 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 December 31, 2018 and September 30, 2018 , 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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 2, 2019, Roanoke Gas entered into an agreement to issue notes in the aggregate principal amount of $10 million . These notes are scheduled to be issued on the day of closing currently proposed for March 28, 2019. These notes will have a 12 -year term from the date of issue with a fixed interest rate of 4.41% . Proceeds from these notes will be used to refinance a portion of Roanoke Gas' debt under the line-of-credit. The Company has evaluated subsequent events through the date the financial statements were issued. There were no items not otherwise disclosed above which would have materially impacted the Company’s condensed consolidated financial statements. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2018 and the results of its operations, cash flows, comprehensive income and changes in stockholders' equity for the three months ended December 31, 2018 and 2017 . The results of operations for the three months ended December 31, 2018 are not indicative of the results to be expected for the fiscal year ending September 30, 2019 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 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, 2018 . The September 30, 2018 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, 2018 . Newly adopted and newly issued accounting standards are discussed below. Certain reclassifications have been made to the prior year income statements to be consistent with the current year presentation by moving cost of gas - utility and cost of sales - non utility under the operating expenses caption. This reclassification makes the Company's income statement presentation consistent with industry peers. |
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. Subsequently issued ASUs provided additional guidance to assist in the implementation of the new revenue standard. The standard is effective for the Company's annual reporting period ending September 30, 2019 and interim periods within that annual period. The Company adopted ASU 2014-09 and all amendments in the quarter ended December 31, 2018. Consistent with the modified retrospective adoption method, prior reporting period results remain unchanged and reported in accordance with ASC 605. As it relates to the Company’s contracts to deliver natural gas to customers, the guidance in ASC 606 is consistent with the guidance in ASC 605; therefore, the modified retrospective approach resulted in no cumulative catch-up to retained earnings. Furthermore, there was no significant impact to revenues recognized for the quarter ended December 31, 2018 and no significant changes to the Company’s related business processes, systems or internal controls over financial reporting because of the new guidance. See Note 2 for further information related to the new standard. 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 Company adopted the ASU for the quarter ended December 31, 2018. The new guidance did not have a material effect on the Company's 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. In January 2018, the FASB issued ASU 2018-01, which provides a practical expedient that allows entities the option of not evaluating existing land easements under the new lease standard for those easements that were entered into prior to adoption. New or modified land easements will require evaluation on a prospective basis. The Company has completed its inventory of leases and does not currently expect the new gudiance to have a material effect on its 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 a subtotal for income from operations is presented, outside of income from operations. The Company adopted the new guidance effective October 1, 2018. As a result, the Company now presents the other components of net periodic benefit costs outside of operations under the category of "other income (expense), net" in the condensed consolidated income statement. As the new guidance related to the expense classification was implemented on a retrospective basis, adjustments were made to the prior period financial statements as follow: Three Months Ended December 31, 2017 As Previously Reported Effect of Change As Adjusted Operations and maintenance $ 3,197,111 $ 30,633 $ 3,227,744 Total operating expenses 15,080,927 30,633 15,111,560 Operating income 3,675,124 (30,633 ) 3,644,491 Other income (expense), net (16,132 ) 30,633 14,501 Income before income taxes $ 3,195,158 $ — $ 3,195,158 In addition, the ASU allows only the service cost component of net periodic benefit cost to be eligible for capitalization when applicable. Previously, the Company included all components of net periodic benefit costs for capitalization. Management has had discussions with its state regulators regarding the adoption of this ASU for regulatory purposes. The regulatory body has not taken a position on the change in capitalization requirements for these benefit costs and will evaluate the impact of this ASU on a case by case basis. The Company adopted the capitalization change prospectively on October 1, 2018. If the regulatory body ultimately determines that changes to the capitalization of these retirement benefits is not appropriate for regulatory purposes, the Company may have to establish regulatory assets or liabilities for those costs or benefits excluded from capitalization under this ASU. The adoption of this new guidance does not have a material effect on the Company's consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting For Hedging Activities . The ASU is meant to simplify recognition and presentation guidance in an effort to improve financial reporting of cash flow and fair value hedging relationships to better portray the economic results of an entity's risk management activities. This is achieved through changes to both the designation and measurement guidance for qualifying hedging relationships, as well as changes to the presentation of hedge results. 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 has not completed its evaluation of the new guidance; however, it does not currently expect the new guidance to have a material effect on its financial position, results of operations or cash flows. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . This ASU modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The new guidance is effective for the Company for the annual reporting period ending September 30, 2021. Early adoption is permitted. Management has not completed its evaluation of the new guidance; however, the ASU only modifies disclosure requirements and will not effect financial position, results of operations or cash flows. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs incurred in a Cloud Computing Arrangement that is a Service Contract . This ASU reduces the complexity of accounting for costs of implementing a cloud computing service arrangement and aligns the following requirements to capitalize implementation costs: 1) those incurred in a hosting arrangement that is a service contract, and 2) those incurred to develop or obtain internal-use software, including hosting arrangements that include an internal software license. The new guidance is effective for the Company for the annual reporting period beginning October 1, 2020. Management has not completed its evaluation of the new guidance; however, it believes the new guidance will change the future treatment of certain contracts by allowing related implementation costs to be capitalized and amortized over time, rather than directly expensed. Management does not currently expect the new guidance to have a material effect on its financial position, results of operations or cash flows. 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. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Adjustments to Prior Period Financial Statements | As the new guidance related to the expense classification was implemented on a retrospective basis, adjustments were made to the prior period financial statements as follow: Three Months Ended December 31, 2017 As Previously Reported Effect of Change As Adjusted Operations and maintenance $ 3,197,111 $ 30,633 $ 3,227,744 Total operating expenses 15,080,927 30,633 15,111,560 Operating income 3,675,124 (30,633 ) 3,644,491 Other income (expense), net (16,132 ) 30,633 14,501 Income before income taxes $ 3,195,158 $ — $ 3,195,158 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables summarize revenue by customer, product and income statement classification: Three months ended December 31, 2018 Three months ended December 31, 2017 Gas utility Non utility Total operating revenues Gas utility Non utility Total operating revenues Natural Gas (Billed and Unbilled): Residential $ 13,012,592 $ — $ 13,012,592 $ 11,233,500 $ — $ 11,233,500 Commercial 7,342,702 — 7,342,702 6,306,857 — 6,306,857 Industrial and Transportation 1,226,137 — 1,226,137 1,124,657 — 1,124,657 Revenue reductions (TCJA) (1) (523,881 ) — (523,881 ) (462,442 ) — (462,442 ) Other 226,492 180,166 406,658 245,262 236,057 481,319 Total contracts with customers 21,284,042 180,166 21,464,208 18,447,834 236,057 18,683,891 Alternative Revenue Programs (247,461 ) — (247,461 ) 72,160 — 72,160 Total operating revenues $ 21,036,581 $ 180,166 $ 21,216,747 $ 18,519,994 $ 236,057 $ 18,756,051 (1) Accrued refund associated with excess revenue collected in tariff rates associated with the reduction in federal income tax rates. See Note 4 for more information. |
Schedule of Customer Accounts Receivable | The balances of customer receivables are provided below: Assets (current) Liabilities (current) Trade accounts receivable (1) Unbilled revenue (1) Customer credit balances Customer deposits Balance at September 30, 2018 $ 2,675,611 $ 913,087 $ 1,003,622 $ 1,421,043 Balance at December 31, 2018 7,676,308 3,784,863 809,289 1,562,217 Increase (decrease) $ 5,000,697 $ 2,871,776 $ (194,333 ) $ 141,174 (1) Included in "Accounts receivable, net" in the condensed consolidated balance sheet. Amounts shown net of reserve for bad debts. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of income tax expense from applying the federal statutory rates in effect for each period to total income tax expense is presented below: Three Months Ended December 31, 2018 2017 Income before income taxes $ 3,136,375 $ 3,195,158 Corporate federal tax rate 21.00 % 24.30 % Income tax expense computed at the federal statutory rate $ 658,639 $ 776,423 State income taxes, net of federal tax benefit 150,589 146,087 Net amortization of excess deferred taxes on regulated operations (86,208 ) — Revaluation of unregulated deferred taxes — 206,830 Other, net (20,807 ) 6,356 Total income tax expense $ 702,213 $ 1,135,696 Effective tax rate 22.4 % 35.5 % |
Other Investments (Tables)
Other Investments (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Other Investments | The financial statement locations of the investment in the LLC are as follows: Balance Sheet Location of Other Investments: December 31, 2018 September 30, 2018 Other Assets: Investment in MVP $ 32,629,235 $ 28,387,031 Investment in Southgate 188,046 120,115 Investment in unconsolidated affiliates $ 32,817,281 $ 28,507,146 Current Liabilities: MVP $ 3,679,154 $ 10,022,652 Southgate 67,932 120,114 Capital contributions payable $ 3,747,086 $ 10,142,766 Three Months Ended Income Statement Location of Other Investments: December 31, 2018 December 31, 2017 Equity in earnings of unconsolidated affiliate $ 563,049 $ 148,811 |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
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 sheet: December 31, 2018 September 30, 2018 Derivative designated as hedging instrument: Current assets: Interest rate swap $70,922 $100,723 Other assets: Interest rate swap $130,023 $209,840 Total derivatives designed as hedging instruments $200,945 $310,563 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following: December 31, 2018 September 30, 2018 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 $ 152,052 $ 30,500,000 $ 154,465 Unsecured term note payable, at 30-day LIBOR plus 0.90%, due November 1, 2021 7,000,000 9,449 7,000,000 10,283 Unsecured term notes payable, at 3.58% due on October 2, 2027 8,000,000 42,139 8,000,000 43,343 RGC Midstream, LLC: Unsecured term notes payable, at 30-day LIBOR plus 1.35%, due December 29, 2020 28,087,200 65,947 17,743,200 74,190 Total notes payable $ 73,587,200 $ 269,587 $ 63,243,200 $ 282,281 Line-of-credit, at 30-day LIBOR plus 1.00%, due March 31, 2020 $ 15,801,798 $ — $ 7,361,017 $ — Total long-term debt $ 89,388,998 $ 269,587 $ 70,604,217 $ 282,281 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2018 Interest rate swap: Unrealized losses $ (93,956 ) $ 24,184 $ (69,772 ) Transfer of realized gains to interest expense (15,662 ) 4,031 (11,631 ) Net interest rate swap (109,618 ) 28,215 (81,403 ) Defined benefit plans: Amortization of actuarial gains (2,576 ) 663 (1,913 ) Other comprehensive loss $ (112,194 ) $ 28,878 $ (83,316 ) Three Months Ended December 31, 2017 Interest rate swap: Unrealized gains $ 61,581 $ (17,760 ) $ 43,821 Transfer of realized losses to interest expense 1,158 (334 ) 824 Net interest rate swap 62,739 (18,094 ) 44,645 Defined benefit plans: Amortization of actuarial gains (5,971 ) 1,722 (4,249 ) Other comprehensive income $ 56,768 $ (16,372 ) $ 40,396 |
Reconciliation of Other Accumulated Other Comprehensive Income (Loss) | Reconciliation of Other Accumulated Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) Balance at September 30, 2018 $ (871,668 ) Other comprehensive loss (83,316 ) Balance at December 31, 2018 $ (954,984 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2018 2017 Net Income $ 2,434,162 $ 2,059,462 Weighted average common shares 8,003,736 7,248,094 Effect of dilutive securities: Options to purchase common stock 48,261 48,086 Diluted average common shares 8,051,997 7,296,180 Earnings Per Share of Common Stock: Basic $ 0.30 $ 0.28 Diluted $ 0.30 $ 0.28 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Pension and Postretirement Benefit Cost | Net pension plan and postretirement plan expense is detailed as follows: Three Months Ended December 31, 2018 2017 Components of net periodic pension cost: Service cost $ 134,317 $ 166,309 Interest cost 291,682 272,045 Expected return on plan assets (387,359 ) (465,710 ) Recognized loss 39,650 87,758 Net periodic pension cost $ 78,290 $ 60,402 Three Months Ended December 31, 2018 2017 Components of postretirement benefit cost: Service cost $ 33,221 $ 41,805 Interest cost 162,236 160,151 Expected return on plan assets (136,805 ) (155,845 ) Recognized loss 30,951 70,967 Net postretirement benefit cost $ 89,603 $ 117,078 |
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 $ 400,000 $ 400,000 Postretirement medical plan — 300,000 Total $ 400,000 $ 700,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2018 and September 30, 2018 : Fair Value Measurements - December 31, 2018 Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Interest rate swap $ 200,945 $ — $ 200,945 $ — Total $ 200,945 $ — $ 200,945 $ — Liabilities: Natural gas purchases $ 749,564 $ — $ 749,564 $ — Total $ 749,564 $ — $ 749,564 $ — Fair Value Measurements - September 30, 2018 Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Interest rate swap $ 310,563 $ — $ 310,563 $ — Total $ 310,563 $ — $ 310,563 $ — Liabilities: Natural gas purchases $ 693,495 $ — $ 693,495 $ — Total $ 693,495 $ — $ 693,495 $ — |
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 December 31, 2018 and September 30, 2018 : Fair Value Measurements - December 31, 2018 Carrying Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Notes payable $ 73,587,200 $ — $ — $ 72,219,484 Total $ 73,587,200 $ — $ — $ 72,219,484 Fair Value Measurements - September 30, 2018 Carrying Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Notes payable $ 63,243,200 $ — $ — $ 62,435,237 Total $ 63,243,200 $ — $ — $ 62,435,237 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operations and maintenance | $ 3,521,999 | $ 3,227,744 |
Total operating expenses | 17,952,525 | 15,111,560 |
Operating income | 3,264,222 | 3,644,491 |
Other income (expense), net | 125,886 | 14,501 |
Income before income taxes | $ 3,136,375 | 3,195,158 |
As Previously Reported [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operations and maintenance | 3,197,111 | |
Total operating expenses | 15,080,927 | |
Operating income | 3,675,124 | |
Other income (expense), net | (16,132) | |
Income before income taxes | 3,195,158 | |
Effect of Change [Member] | ASU 2017-07 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operations and maintenance | 30,633 | |
Total operating expenses | 30,633 | |
Operating income | (30,633) | |
Other income (expense), net | 30,633 | |
Income before income taxes | $ 0 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | $ 21,464,208 | $ 18,683,891 |
Revenue reductions (TCJA) | (523,881) | (462,442) |
Alternative Revenue Programs | (247,461) | 72,160 |
Operating revenues | 21,216,747 | 18,756,051 |
Natural Gas [Member] | Residential [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 13,012,592 | 11,233,500 |
Natural Gas [Member] | Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 7,342,702 | 6,306,857 |
Natural Gas [Member] | Industrial and Transportation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 1,226,137 | 1,124,657 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 406,658 | 481,319 |
Gas Utility [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 21,284,042 | 18,447,834 |
Revenue reductions (TCJA) | (523,881) | (462,442) |
Alternative Revenue Programs | (247,461) | 72,160 |
Operating revenues | 21,036,581 | 18,519,994 |
Gas Utility [Member] | Natural Gas [Member] | Residential [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 13,012,592 | 11,233,500 |
Gas Utility [Member] | Natural Gas [Member] | Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 7,342,702 | 6,306,857 |
Gas Utility [Member] | Natural Gas [Member] | Industrial and Transportation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 1,226,137 | 1,124,657 |
Gas Utility [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 226,492 | 245,262 |
Non Utility [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 180,166 | 236,057 |
Revenue reductions (TCJA) | 0 | 0 |
Alternative Revenue Programs | 0 | 0 |
Operating revenues | 180,166 | 236,057 |
Non Utility [Member] | Natural Gas [Member] | Residential [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 0 | 0 |
Non Utility [Member] | Natural Gas [Member] | Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 0 | 0 |
Non Utility [Member] | Natural Gas [Member] | Industrial and Transportation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 0 | 0 |
Non Utility [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | $ 180,166 | $ 236,057 |
Revenue (Customer Accounts Rece
Revenue (Customer Accounts Receivable) (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2018 | Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Unbilled revenue | $ 3,784,863 | $ 913,087 |
Increase (decrease) in Unbilled revenue | 2,871,776 | |
Customer credit balances | 809,289 | 1,003,622 |
Increase (decrease) in Customer credit balances | (194,333) | |
Customer deposits | 1,562,217 | 1,421,043 |
Increase (decrease) in Customer deposits | 141,174 | |
Capitalized Contract Cost [Line Items] | ||
Accounts receivable | 11,715,432 | 3,913,830 |
Trade Accounts Receivable [Member] | ||
Capitalized Contract Cost [Line Items] | ||
Accounts receivable | 7,676,308 | $ 2,675,611 |
Increase (decrease) in accounts receivable | $ 5,000,697 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Blended tax rate | 21.00% | 24.30% | 24.30% |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Income Tax Expense Based on Federal Statutory Rate) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Income Tax Contingency [Line Items] | |||
Effective tax rate | 25.74% | ||
Income before income taxes | $ 3,136,375 | $ 3,195,158 | |
Corporate federal tax rate | 21.00% | 24.30% | 24.30% |
Income tax expense computed at the federal statutory rate | $ 658,639 | $ 776,423 | |
State income taxes, net of federal tax benefit | 150,589 | 146,087 | |
Net amortization of excess deferred taxes on regulated operations | (86,208) | 0 | |
Revaluation of unregulated deferred taxes | 0 | 206,830 | |
Other, net | (20,807) | 6,356 | |
Total income tax expense | $ 702,213 | $ 1,135,696 | |
Effective tax rate [Member] | |||
Income Tax Contingency [Line Items] | |||
Effective tax rate | 22.40% | 35.50% |
Rates and Regulatory Matters Ra
Rates and Regulatory Matters Rates and Regulatory Matters (Details) - USD ($) | Oct. 02, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 |
Regulatory Liabilities [Line Items] | ||||
Reduction in deferred tax liability resulting from the Tax Act | $ 10,829,440 | $ 11,447,736 | ||
Combined state and federal rate | 25.74% | |||
Roanoke Gas Company [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Reduction in deferred tax liability resulting from the Tax Act | $ 11,293,801 | |||
Regulatory liability, refund period (in years) | 28 years | |||
Customer refund liability, increase | $ 523,881 | $ 462,442 | ||
Rate refund | $ 1,882,508 | |||
Roanoke Gas Company [Member] | General Rate Case [Member] | Virginia State Corporate Commission (SCC) [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Requested non-gas rates increase | $ 10,500,000 | |||
SAVE Program component of requested non-gas rates increase (in dollars) | $ 4,700,000 |
Other Investments (Narrative) (
Other Investments (Narrative) (Details) Bcf in Millions | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2018USD ($)mi | Oct. 31, 2015USD ($)debt_instrumentBcf | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | |
Investment [Line Items] | ||||
Capital contributions payable term | 3 months | |||
Capital contributions payable | $ 3,747,086 | $ 10,142,766 | ||
Non-cash change in investment in unconsolidated affiliates | (6,395,680) | |||
MVP [Member] | ||||
Investment [Line Items] | ||||
Capital contributions payable | 3,679,154 | 10,022,652 | ||
Southgate [Member] | ||||
Investment [Line Items] | ||||
Capital contributions payable | $ 67,932 | $ 120,114 | ||
Midstream [Member] | ||||
Investment [Line Items] | ||||
Number of unsecured Promissory Notes funding the investment | debt_instrument | 2 | |||
Debt term | 5 years | |||
Midstream [Member] | MVP [Member] | ||||
Investment [Line Items] | ||||
Equity interest percentage | 1.00% | |||
Pipeline capacity per day (in bcf) | Bcf | 2 | |||
Total project cost | $ 4,600,000,000 | |||
Total estimated investment | $ 46,000,000 | |||
Midstream [Member] | Southgate [Member] | ||||
Investment [Line Items] | ||||
Length of planned natural gas pipeline (in miles) | mi | 70 | |||
Ownership percentage (less than) | 1.00% | |||
Midstream [Member] | Southgate [Member] | Minimum [Member] | ||||
Investment [Line Items] | ||||
Estimated total MVP Southgate pipeline cost projection | $ 350,000,000 | |||
Estimated investment in MVP Southgate | 1,800,000 | |||
Midstream [Member] | Southgate [Member] | Maximum [Member] | ||||
Investment [Line Items] | ||||
Estimated total MVP Southgate pipeline cost projection | 500,000,000 | |||
Estimated investment in MVP Southgate | $ 2,500,000 |
Other Investments (Schedule of
Other Investments (Schedule of Other Investments) (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Other Assets: | |||
Investment in unconsolidated affiliates | $ 32,817,281 | $ 28,507,146 | |
Current Liabilities: | |||
Capital contributions payable | 3,747,086 | 10,142,766 | |
Income Statement Location of Other Investments: | |||
Equity in earnings of unconsolidated affiliate | 563,049 | $ 148,811 | |
MVP [Member] | |||
Other Assets: | |||
Investment in MVP | 32,629,235 | 28,387,031 | |
Current Liabilities: | |||
Capital contributions payable | 3,679,154 | 10,022,652 | |
Southgate [Member] | |||
Other Assets: | |||
Investment in Southgate | 188,046 | 120,115 | |
Current Liabilities: | |||
Capital contributions payable | $ 67,932 | $ 120,114 |
Derivatives and Hedging (Narrat
Derivatives and Hedging (Narrative) (Details) | Dec. 31, 2018USD ($)instrument_held |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Number of interest rate swap associated with the term note | instrument_held | 1 |
Roanoke Gas Company [Member] | 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 ($) | Dec. 31, 2018 | Sep. 30, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Interest rate swap, current assets | $ 70,922 | $ 100,723 |
Interest rate swap, other assets | 130,023 | 209,840 |
Total derivatives designated as hedging instruments | $ 200,945 | $ 310,563 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | Jan. 02, 2019USD ($) | Oct. 31, 2015debt_instrument | Dec. 31, 2018USD ($)instrument_held |
Debt Instrument [Line Items] | |||
Maximum percentage of Consolidated Long Term Indebtedness to Consolidated Total Capitalization | 65.00% | ||
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] | |||
Effective interest rate | 2.30% | ||
Debt instrument, borrowing amount | $ 7,000,000 | ||
Maximum percentage of Priority Indebtedness to Consolidated Total Assets | 15.00% | ||
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% | ||
Roanoke Gas [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 3.58%, due October 2, 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Stated percentage rate | 3.58% | ||
Maximum percentage of Priority Indebtedness to Consolidated Total Assets | 15.00% | ||
Roanoke Gas [Member] | Line of Credit [Member] | Line of Credit, at 30-day LIBOR plus 1.00%, due March 31, 2020 [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, 2020 [Member] | 30-day LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Variable rate basis points (as a percent) | 1.00% | ||
Roanoke Gas [Member] | Line of Credit [Member] | Line of Credit, at 30-day LIBOR plus 1.00%, due March 31, 2020 [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit, maximum borrowing limit | $ 25,000,000 | ||
Roanoke Gas [Member] | Line of Credit [Member] | Line of Credit, at 30-day LIBOR plus 1.00%, due March 31, 2020 [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit, maximum borrowing limit | $ 17,000,000 | ||
Midstream [Member] | |||
Debt Instrument [Line Items] | |||
Debt term | 5 years | ||
Number of unsecured Promissory Notes funding the investment | debt_instrument | 2 | ||
Midstream [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.35%, due December 29, 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Number of unsecured Promissory Notes funding the investment | instrument_held | 2 | ||
Maximum percentage of Priority Indebtedness to Consolidated Total Assets | 15.00% | ||
Midstream [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.35%, due December 29, 2020 [Member] | 30-day LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Variable rate basis points (as a percent) | 1.35% | ||
Midstream [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.35%, due December 29, 2020 [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, borrowing amount | $ 38,000,000 | ||
Subsequent Event [Member] | Roanoke Gas [Member] | Unsecured Term Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt term | 12 years | ||
Debt instrument, borrowing amount | $ 10,000,000 | ||
Stated percentage rate | 4.41% |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2018 | Sep. 30, 2018 | |
Debt Instrument [Line Items] | ||
Notes payable | $ 73,587,200 | $ 63,243,200 |
Principal | 89,388,998 | 70,604,217 |
Unamortized Debt Issuance Costs | 269,587 | 282,281 |
Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | 73,587,200 | 63,243,200 |
Unamortized Debt Issuance Costs | 269,587 | 282,281 |
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] | ||
Notes payable | 30,500,000 | 30,500,000 |
Unamortized Debt Issuance Costs | $ 152,052 | 154,465 |
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] | ||
Notes payable | $ 7,000,000 | 7,000,000 |
Unamortized Debt Issuance Costs | $ 9,449 | 10,283 |
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% | |
Roanoke Gas Company [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 3.58%, due October 2, 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 8,000,000 | 8,000,000 |
Unamortized Debt Issuance Costs | $ 42,139 | 43,343 |
Stated percentage rate | 3.58% | |
Roanoke Gas Company [Member] | Line of Credit [Member] | Line of Credit, at 30-day LIBOR plus 1.00%, due March 31, 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Line-of-credit | $ 15,801,798 | 7,361,017 |
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, 2020 [Member] | 30-day LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Variable rate basis points (as a percent) | 1.00% | |
RGC Midstream LLC [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.35%, due December 29, 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 28,087,200 | 17,743,200 |
Unamortized Debt Issuance Costs | $ 65,947 | $ 74,190 |
RGC Midstream LLC [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.35%, due December 29, 2020 [Member] | 30-day LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Variable rate basis points (as a percent) | 1.35% |
Other Comprehensive Income (Sch
Other Comprehensive Income (Schedule of Other Comprehensive Income and Loss) (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Before-Tax Amount | ||
Other comprehensive loss | $ (112,194) | $ 56,768 |
Tax (Expense) or Benefit | ||
Other comprehensive loss | 28,878 | (16,372) |
Net-of-Tax Amount | ||
Other comprehensive loss | (83,316) | 40,396 |
Interest rate swap [Member] | ||
Before-Tax Amount | ||
Other comprehensive income before reclassifications | (93,956) | 61,581 |
Reclassifications from accumulated other comprehensive income | (15,662) | 1,158 |
Other comprehensive loss | (109,618) | 62,739 |
Tax (Expense) or Benefit | ||
Other comprehensive income before reclassifications | 24,184 | (17,760) |
Reclassifications from accumulated other comprehensive income | 4,031 | (334) |
Other comprehensive loss | 28,215 | (18,094) |
Net-of-Tax Amount | ||
Other comprehensive income before reclassifications | (69,772) | 43,821 |
Reclassifications from accumulated other comprehensive income | (11,631) | 824 |
Other comprehensive loss | (81,403) | 44,645 |
Defined benefit plans [Member] | ||
Before-Tax Amount | ||
Other comprehensive loss | (2,576) | (5,971) |
Tax (Expense) or Benefit | ||
Other comprehensive loss | 663 | 1,722 |
Net-of-Tax Amount | ||
Other comprehensive loss | $ (1,913) | $ (4,249) |
Other Comprehensive Income (Rec
Other Comprehensive Income (Reconciliation of Accumulated Comprehensive Income (Loss)) (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Other Accumulated Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | $ 79,583,112 | $ 60,040,472 |
Other comprehensive loss | (83,316) | 40,396 |
Balance at end of period | 80,959,740 | 61,301,035 |
Accumulated Other Comprehensive Income (Loss) | ||
Increase (Decrease) in Other Accumulated Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | (871,668) | (1,202,264) |
Other comprehensive loss | (83,316) | 40,396 |
Balance at end of period | $ (954,984) | $ (1,161,868) |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended |
Dec. 31, 2018pipeline | |
Commitments and Contingencies Disclosure [Abstract] | |
Number of pipelines serving Roanoke Gas | 2 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net Income | $ 2,434,162 | $ 2,059,462 |
Weighted average common shares (in shares) | 8,003,736 | 7,248,094 |
Effect of dilutive securities: | ||
Options to purchase common stock (in shares) | 48,261 | 48,086 |
Diluted average common shares (in shares) | 8,051,997 | 7,296,180 |
Earnings Per Share of Common Stock: | ||
Basic (in dollars per share) | $ 0.30 | $ 0.28 |
Diluted (in dollars per share) | $ 0.30 | $ 0.28 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Components of Net Periodic Pension and Postretirement Benefit Cost) (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 134,317 | $ 166,309 |
Interest cost | 291,682 | 272,045 |
Expected return on plan assets | (387,359) | (465,710) |
Recognized loss | 39,650 | 87,758 |
Net periodic/postretirement pension/benefit cost | 78,290 | 60,402 |
Postretirement Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 33,221 | 41,805 |
Interest cost | 162,236 | 160,151 |
Expected return on plan assets | (136,805) | (155,845) |
Recognized loss | 30,951 | 70,967 |
Net periodic/postretirement pension/benefit cost | $ 89,603 | $ 117,078 |
Employee Benefit Plans (Sched_2
Employee Benefit Plans (Schedule of Actual and Expected Employer Contributions) (Details) | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal Year-to-Date Contributions | $ 400,000 |
Remaining Fiscal Year Contributions | 700,000 |
Defined Benefit Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal Year-to-Date Contributions | 400,000 |
Remaining Fiscal Year Contributions | 400,000 |
Postretirement Medical Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal Year-to-Date Contributions | 0 |
Remaining Fiscal Year Contributions | $ 300,000 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis) (Details) - USD ($) | Dec. 31, 2018 | Sep. 30, 2018 |
Assets: | ||
Interest rate swap | $ 200,945 | $ 310,563 |
Liabilities: | ||
Natural gas purchases | 749,564 | 693,495 |
Interest Rate Swap [Member] | ||
Assets: | ||
Interest rate swap | 200,945 | 310,563 |
Quoted Prices in Active Markets (Level 1) [Member] | ||
Assets: | ||
Interest rate swap | 0 | 0 |
Liabilities: | ||
Natural gas purchases | 0 | 0 |
Quoted Prices in Active Markets (Level 1) [Member] | Interest Rate Swap [Member] | ||
Assets: | ||
Interest rate swap | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Interest rate swap | 200,945 | 310,563 |
Liabilities: | ||
Natural gas purchases | 749,564 | 693,495 |
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Swap [Member] | ||
Assets: | ||
Interest rate swap | 200,945 | 310,563 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Interest rate swap | 0 | 0 |
Liabilities: | ||
Natural gas purchases | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Interest Rate Swap [Member] | ||
Assets: | ||
Interest rate swap | $ 0 | $ 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 ($) | Dec. 31, 2018 | Sep. 30, 2018 |
Quoted Prices in Active Markets (Level 1) [Member] | ||
Liabilities: | ||
Notes payable | $ 0 | $ 0 |
Total | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Liabilities: | ||
Notes payable | 0 | 0 |
Total | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Liabilities: | ||
Notes payable | 72,219,484 | 62,435,237 |
Total | 72,219,484 | 62,435,237 |
Carrying Value [Member] | ||
Liabilities: | ||
Notes payable | 73,587,200 | 63,243,200 |
Total | $ 73,587,200 | $ 63,243,200 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - Roanoke Gas [Member] - Unsecured Term Notes [Member] | Jan. 02, 2019USD ($) |
Subsequent Event [Line Items] | |
Aggregate principal amount | $ 10,000,000 |
Debt term | 12 years |
Stated percentage rate | 4.41% |