Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2019 | Jan. 31, 2020 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | RGC RESOURCES INC | |
Entity Central Index Key | 0001069533 | |
Current Fiscal Year End Date | --09-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8,112,424 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 1,012,347 | $ 1,631,348 |
Accounts receivable (less allowance for uncollectibles of $253,076 and $110,743, respectively) | 10,084,224 | 3,870,211 |
Materials and supplies | 968,299 | 1,021,882 |
Gas in storage | 6,015,628 | 6,448,307 |
Prepaid income taxes | 128,892 | 1,157,980 |
Regulatory assets | 1,453,285 | 1,521,939 |
Other | 1,576,689 | 733,525 |
Total current assets | 21,239,364 | 16,385,192 |
UTILITY PROPERTY: | ||
In service | 241,063,157 | 237,786,964 |
Accumulated depreciation and amortization | (68,559,129) | (67,207,334) |
In service, net | 172,504,028 | 170,579,630 |
Construction work in progress | 12,886,980 | 11,423,326 |
Utility plant, net | 185,391,008 | 182,002,956 |
OTHER ASSETS: | ||
Regulatory assets | 11,807,353 | 12,178,853 |
Investment in unconsolidated affiliates | 49,375,781 | 47,375,459 |
Other | 369,107 | 411,236 |
Total other assets | 61,552,241 | 59,965,548 |
TOTAL ASSETS | 268,182,613 | 258,353,696 |
CURRENT LIABILITIES: | ||
Dividends payable | 1,419,236 | 1,339,522 |
Accounts payable | 4,730,021 | 4,483,233 |
Capital contributions payable | 891,903 | 5,024,824 |
Customer credit balances | 821,643 | 880,295 |
Customer deposits | 1,549,435 | 1,432,031 |
Accrued expenses | 2,434,189 | 3,448,000 |
Interest rate swaps | 87,761 | 147,556 |
Regulatory liabilities | 5,569,732 | 4,877,603 |
Total current liabilities | 17,503,920 | 21,633,064 |
LONG-TERM DEBT: | ||
Notes payable | 111,204,200 | 95,512,200 |
Line-of-credit | 2,925,766 | 8,172,473 |
Less unamortized debt issuance costs | (357,187) | (313,315) |
Long-term debt, net | 113,772,779 | 103,371,358 |
DEFERRED CREDITS AND OTHER LIABILITIES: | ||
Interest rate swaps | 452,347 | 746,785 |
Asset retirement obligations | 6,844,857 | 6,788,683 |
Regulatory cost of retirement obligations | 12,098,472 | 11,892,352 |
Benefit plan liabilities | 6,928,648 | 6,912,105 |
Deferred income taxes | 13,404,111 | 12,978,523 |
Regulatory liabilities | 10,818,344 | 10,934,434 |
Total deferred credits and other liabilities | 50,546,779 | 50,252,882 |
STOCKHOLDERS’ EQUITY: | ||
Common stock, $5 par value; authorized 10,000,000 shares; issued and outstanding 8,091,317 and 8,073,264 shares, respectively | 40,456,585 | 40,366,320 |
Preferred stock, no par, authorized 5,000,000 shares; no shares issued and outstanding | 0 | 0 |
Capital in excess of par value | 14,702,006 | 14,397,072 |
Retained earnings | 33,409,617 | 30,821,917 |
Accumulated other comprehensive loss | (2,209,073) | (2,488,917) |
Total stockholders’ equity | 86,359,135 | 83,096,392 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 268,182,613 | $ 258,353,696 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for uncollectibles | $ 253,076 | $ 110,743 |
Common stock, par value (in dollars per share) | $ 5 | $ 5 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 8,091,317 | 8,073,264 |
Common stock, shares outstanding | 8,091,317 | 8,073,264 |
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, shares outstanding | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING REVENUES: | ||
Operating revenues | $ 19,785,453 | $ 21,216,747 |
OPERATING EXPENSES: | ||
Operations and maintenance | 3,917,470 | 3,521,999 |
General taxes | 543,237 | 507,889 |
Depreciation and amortization | 1,988,505 | 1,905,475 |
Total operating expenses | 14,703,474 | 17,952,525 |
OPERATING INCOME | 5,081,979 | 3,264,222 |
Equity in earnings of unconsolidated affiliate | 1,094,086 | 563,049 |
Other income (expense), net | 157,643 | 125,886 |
Interest expense | 1,085,185 | 816,782 |
INCOME BEFORE INCOME TAXES | 5,248,523 | 3,136,375 |
INCOME TAX EXPENSE | 1,241,587 | 702,213 |
NET INCOME | $ 4,006,936 | $ 2,434,162 |
BASIC EARNINGS PER COMMON SHARE (in dollars per share) | $ 0.50 | $ 0.30 |
DILUTED EARNINGS PER COMMON SHARE (in dollars per share) | 0.49 | 0.30 |
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $ 0.175 | $ 0.165 |
Gas Utility [Member] | ||
OPERATING REVENUES: | ||
Operating revenues | $ 19,625,606 | $ 21,036,581 |
OPERATING EXPENSES: | ||
Cost of gas and sales | 8,177,806 | 11,906,459 |
Non Utility [Member] | ||
OPERATING REVENUES: | ||
Operating revenues | 159,847 | 180,166 |
OPERATING EXPENSES: | ||
Cost of gas and sales | $ 76,456 | $ 110,703 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $ 4,006,936 | $ 2,434,162 |
Other comprehensive income (loss), net of tax: | ||
Interest rate swaps | 263,053 | |
Interest rate swaps | (81,403) | |
Defined benefit plans | 16,791 | (1,913) |
Other comprehensive income (loss), net of tax | 279,844 | (83,316) |
COMPREHENSIVE INCOME | $ 4,286,780 | $ 2,350,846 |
Condensed Consolidated Statem_3
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, 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) |
Balance at beginning of period at Sep. 30, 2019 | 83,096,392 | 40,366,320 | 14,397,072 | 30,821,917 | (2,488,917) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 4,006,936 | 4,006,936 | |||
Other comprehensive income (loss) | 279,844 | 279,844 | |||
Cash dividends declared | (1,419,236) | (1,419,236) | |||
Issuance of common stock | 395,199 | 90,265 | 304,934 | ||
Balance at end of period at Dec. 31, 2019 | $ 86,359,135 | $ 40,456,585 | $ 14,702,006 | $ 33,409,617 | $ (2,209,073) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per share (in dollars per share) | $ 0.175 | $ 0.165 |
Common stock issued (in shares) | 18,053 | 17,035 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 4,006,936 | $ 2,434,162 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 2,047,695 | 1,940,472 |
Cost of retirement of utility plant, net | (170,224) | (50,093) |
Equity in earnings of unconsolidated affiliate | (1,094,086) | (563,049) |
Changes in assets and liabilities which used cash, exclusive of changes and noncash transactions shown separately | (3,972,358) | (6,061,666) |
Net cash provided by (used in) operating activities | 817,963 | (2,300,174) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Expenditures for utility property | (5,849,460) | (5,691,011) |
Investment in unconsolidated affiliate | (5,039,157) | (10,142,766) |
Proceeds from disposal of utility property | 12,881 | 249 |
Net cash used in investing activities | (10,875,736) | (15,833,528) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of unsecured notes | 15,692,000 | 10,344,000 |
Borrowings under line-of-credit | 9,784,533 | 13,760,363 |
Repayments under line-of-credit | (15,031,241) | (5,319,582) |
Debt issuance expenses | (62,198) | 0 |
Proceeds from issuance of stock | 395,199 | 348,117 |
Cash dividends paid | (1,339,521) | (1,235,798) |
Net cash provided by financing activities | 9,438,772 | 17,897,100 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (619,001) | (236,602) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 1,631,348 | 247,411 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 1,012,347 | 10,809 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Interest | 1,243,093 | 1,101,028 |
Income taxes | $ 0 | $ 0 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Resources is an energy services company primarily engaged in the sale and distribution of natural gas. The condensed consolidated financial statements include the accounts of Resources and its wholly-owned subsidiaries: Roanoke Gas, Diversified Energy and Midstream. 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, 2019 and the results of its operations, comprehensive income, changes in stockholders' equity and cash flows for the three months ended December 31, 2019 and 2018 . The results of operations for the three months ended December 31, 2019 are not indicative of the results to be expected for the fiscal year ending September 30, 2020 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 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, 2019 . The September 30, 2019 consolidated 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, 2019 . Newly adopted and newly issued accounting standards are discussed below. Recently Issued or Adopted Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) that affects any entity that enters into contracts with customers for the transfer of goods or services or transfer of non-financial assets. This guidance supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers. 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 was 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 effective October 1, 2018 with no significant impact to revenues recognized and no significant changes to the Company’s related business processes, systems or internal controls over financial reporting. See Note 2 for further information. In February 2016, the FASB issued ASU 2016-02, Leases. This 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. 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 new guidance is effective for the Company for the annual reporting period ending September 30, 2020 and interim periods within that annual period. The Company adopted ASU 2016-02 and related guidance effective October 1, 2019. At the time of adoption, the Company had one operating lease. The value of the lease obligation under the new guidance would be approximately $25,000 , which falls below the Company's $50,000 aggregate threshold for recording leases under the new standard. If at a future point, the total value of all leases exceeded this threshold, the Company would recognize the leases in accordance with current guidance in addition to providing the required disclosures. The current operating lease has a term of 2 years with quarterly payments in the amount of $3,240 until the lease terminates in September 2021. This new guidance does not have a material effect on the Company's financial position, results of operations or cash flows. 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 Company adopted the new guidance effective October 1, 2019. As the Company currently has only cash flow hedges and no portion of these swaps were deemed ineffective during the periods presented, this new guidance does not have a material effect on the Company's 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 Company adopted the new guidance effective October 1, 2019. The adoption of this new guidance does not currently have a material effect on the Company's consolidated financial statements. However, as the ASU changes the treatment of certain contracts by allowing related implementation costs to be capitalized and amortized over time, rather than directly expensed; there could be a significant impact on the Company's financial position, results of operations and cash flow in the future. 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. 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, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 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, 2019 Three months ended December 31, 2018 Gas utility Non utility Total operating revenues Gas utility Non utility Total operating revenues Natural Gas (Billed and Unbilled): Residential $ 12,290,361 $ — $ 12,290,361 $ 13,012,592 $ — $ 13,012,592 Commercial 5,729,218 — 5,729,218 7,342,702 — 7,342,702 Industrial and Transportation 1,326,085 — 1,326,085 1,226,137 — 1,226,137 Revenue reductions (TCJA) (1) — — — (523,881 ) — (523,881 ) Other 215,998 159,847 375,845 226,492 180,166 406,658 Total contracts with customers 19,561,662 159,847 19,721,509 21,284,042 180,166 21,464,208 Alternative Revenue Programs 63,944 — 63,944 (247,461 ) — (247,461 ) Total operating revenues $ 19,625,606 $ 159,847 $ 19,785,453 $ 21,036,581 $ 180,166 $ 21,216,747 (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 SCC as reflected in its tariffs. Based on its evaluation, 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 results in the satisfaction of the Company’s performance obligation over time as natural gas is delivered. All customers are billed monthly based on consumption as measured by metered usage. Revenue is recognized as bills are issued for natural gas that has been delivered or transported. 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 the 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, utility-related revenues not directly billed to utility customers and billings for non-utility activities. Non-utility (unregulated) activities provided by the Company include contract paving and other 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 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 WNA, which adjusts revenues for the effects of weather temperature variations as compared to the 30-year average, and the SAVE Plan over/under collection mechanism, which adjusts revenues for the differences between SAVE Plan revenues 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: Current Assets Current Liabilities Trade accounts receivable (1) Unbilled revenue (1) Customer credit balances Customer deposits Balance at September 30, 2019 $ 2,590,702 $ 1,236,384 $ 880,295 $ 1,432,031 Balance at December 31, 2019 6,278,383 3,690,130 821,643 1,549,435 Increase (decrease) $ 3,687,681 $ 2,453,746 $ (58,652 ) $ 117,404 (1) Included in accounts receivable 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, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, TCJA became law. The TCJA's most significant impact was the reduction of the maximum corporate federal income tax rate from 35% to 21% beginning January 1, 2018. Under the provisions of ASC 740 - Income Taxes , the deferred tax assets and liabilities of the Company were revalued to reflect the reduction in the federal tax rate. For unregulated entities, the revaluation of excess deferred income taxes 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 net excess deferred taxes must be returned to customers. The Company began refunding these excess deferred taxes in fiscal 2018. As the refunds should have no effect on the income of the Company, the consolidated income statements reflect both a reduction in revenues and a corresponding reduction in income taxes associated with the flow back of these net 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, 2019 2018 Income before income taxes $ 5,248,523 $ 3,136,375 Corporate federal tax rate 21.00 % 21.00 % Income tax expense computed at the federal statutory rate $ 1,102,190 $ 658,639 State income taxes, net of federal tax benefit 250,037 150,589 Net amortization of excess deferred taxes on regulated operations (86,208 ) (86,208 ) Other, net (24,432 ) (20,807 ) Total income tax expense $ 1,241,587 $ 702,213 Effective tax rate 23.7 % 22.4 % |
Rates and Regulatory Matters
Rates and Regulatory Matters | 3 Months Ended |
Dec. 31, 2019 | |
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. On October 10, 2018, Roanoke Gas filed a general rate application requesting an annual increase in customer non-gas base rates of $10.5 million . This application incorporates into the non-gas base rates the impact of tax reform, non-SAVE utility plant investment, increased operating costs, recovery of regulatory assets associated with eligible safety activity costs and SAVE Plan investments and related costs that were previously recovered 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. On June 28, 2019, the SCC staff issued their report and recommendation for an annual non-gas rate increase of $6.5 million . On August 14th and 15th, the SCC conducted a hearing on the rate application with the hearing examiner's report issued on November 19, 2019 and subsequently revised on November 26, 2019. The revised report recommended an annual non-gas base rate increase of approximately $7.1 million . On January 24, 2020, the SCC issued their final order on the general rate application. Under the provisions of this order, Roanoke Gas was granted an annualized non-gas rate increase of $7.25 million and was required to write-down a portion of the ESAC assets not subject to recovery in the final order. As a result, management revised its estimate of the rate refund accrual to reflect the award included in the final order. Management also wrote down $317,191 in additional ESAC regulatory assets to comply with the order. The Company is in the process of submitting the rates to the SCC for approval, which will provide for the $7.25 million in additional non-gas revenue. Once approved, the Company will proceed with refunding the excess revenues to its customers. The total accrued rate refund balance is included in Note 14. As referenced in Note 3, the TCJA reduced 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. Most of the net regulatory liability will be refunded over a 28 year period per IRS normalization requirements. See Note 14 for the remaining balances related to excess deferred taxes. |
Other Investments
Other Investments | 3 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Other Investments | Other Investments In October 2015, Midstream, acquired an initial 1% equity interest in the Mountain Valley Pipeline, LLC. The LLC was established to construct and operate a natural gas pipeline originating in northern West Virginia and extending through south central Virginia. Once completed, the pipeline will have the capacity to transport approximately 2 million decatherms of natural gas per day. Due to ongoing delays primarily attributable to the actions of the Fourth Circuit and FERC, which have suspended previously approved permits allowing for water crossings and access through national forest lands, completing the pipeline has been delayed. Current activity on the pipeline is limited to maintenance and restoration activities. The LLC's managing partner believes they have submitted all of the information required for the suspended permits to be approved and is awaiting approval. As a result, the projected cost of the MVP project has grown to between $5.3 and $5.5 billion with a projected in-service date in late calendar 2020. Midstream's estimated total cash contribution is between $53 and $55 million . 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 Southgate project, which is an approximately 74 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 is being accounted for under the cost method. Total project cost is estimated to be nearly $500 million , of which Midstream's portion is estimated to be approximately $2.5 million . The Southgate in-service date is currently targeted for calendar year 2021, subject to any further delays in the completion of the MVP mainline. Funding for Midstream's investments in the LLC for both the MVP and Southgate projects are being provided through two variable rate unsecured promissory notes under a non-revolving credit agreement, maturing in December 2022, and two additional notes issued in June 2019. See Note 7 for a schedule of debt instruments. The investments in the LLC are included in the condensed consolidated financial statements as follows: Balance Sheet location of Other Investments: December 31, 2019 September 30, 2019 Other Assets: MVP $ 49,055,748 $ 47,055,426 Southgate 320,033 320,033 Investment in unconsolidated affiliates $ 49,375,781 $ 47,375,459 Current Liabilities: MVP $ 891,903 $ 4,958,260 Southgate — 66,564 Capital contributions payable $ 891,903 $ 5,024,824 Three Months Ended Income Statement location of Other Investments: December 31, 2019 December 31, 2018 Equity in earnings of unconsolidated affiliate $ 1,094,086 $ 563,049 December 31, 2019 September 30, 2019 Undistributed earnings, net of income taxes, of MVP in retained earnings $ 4,079,644 $ 3,267,176 The change in the investment in unconsolidated affiliate is provided below: Three Months Ended December 31, 2019 December 31, 2018 Cash investment $ 5,039,157 $ 10,142,766 Change in accrued capital calls (4,132,921 ) (6,395,680 ) Equity in earnings of unconsolidated affiliates 1,094,086 563,049 Change in investment in unconsolidated affiliates $ 2,000,322 $ 4,310,135 Summary of unaudited financial statements of Mountain Valley Pipeline are presented below. Southgate financial statements, which are accounted for under the cost method, are not included: Income Statements Three Months Ended December 31, 2019 December 31, 2018 AFUDC $ 110,025,474 $ 54,184,516 Net Other Income $ 734,182 $ 2,562,792 Net Income $ 110,759,656 $ 56,747,308 Balance Sheets December 31, 2019 September 30, 2019 Assets: Current Assets $ 243,577,729 $ 485,323,892 Construction Work in Progress 4,941,631,920 4,675,267,389 Other Assets 9,923,000 13,190,816 Total Assets $ 5,195,132,649 $ 5,173,782,097 Liabilities and Equity: Current Liabilities $ 223,678,580 $ 466,776,233 Capital 4,971,454,069 4,707,005,864 Total Liabilities and Equity $ 5,195,132,649 $ 5,173,782,097 |
Derivatives and Hedging
Derivatives and Hedging | 3 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Derivatives and Hedging The Company’s hedging and derivative policy allows management to enter into derivatives for the purpose of managing the commodity and financial market risks of its business operations, including the price of natural gas and the cost of borrowed funds. This policy specifically prohibits the use of derivatives for speculative purposes. The Company has three interest rate swaps associated with its variable rate debt. Roanoke Gas has a swap agreement that effectively converts the $7,000,000 term note based on LIBOR into fixed-rate debt with a 2.30% effective interest rate. Midstream has two swap agreements corresponding to the $14,000,000 variable rate term note issued on June 12, 2019 and the $10,000,000 variable rate term note issued on June 13, 2019. The swap agreements convert these two notes into fixed rate instruments with effective interest rates of 3.24% and 3.14% , respectively. The swaps qualify as cash flow hedges with changes in fair value reported in other comprehensive income. No portion of the swaps were deemed ineffective during the periods presented. The Company had no outstanding derivative instruments for the purchase of natural gas. The fair value of the current and non-current portions of the interest rate swaps are reflected in the condensed consolidated balance sheets under the caption interest rate swaps. The table in Note 8 reflects the effect on income and other comprehensive income of the Company's cash flow hedges. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt On December 23, 2019, Midstream entered into the Third Amendment to Credit Agreement ("Amendment") and amendments to the related Promissory Notes ("Notes") with the corresponding banks. The Amendment modified the original Credit Agreement and prior amendments between Midstream and the banks by increasing the total borrowing capacity to $41,000,000 from its previous limit of $26,000,000 and extending the maturity date to December 29, 2022. The Amendment retained all of the other provisions contained in the previous credit agreements and amendments including the interest rate on the Notes based on 30-day LIBOR plus 1.35% . The additional limits under the Amendment will be used to finance the investment in the MVP. On December 6, 2019, Roanoke Gas entered into unsecured notes in the aggregate principal amount of $10,000,000 . These notes have a 10 -year term with a fixed interest rate of 3.60% . Proceeds from these notes will be used to fund Roanoke Gas' capital budget. Roanoke Gas has other 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% . Midstream has two other variable rate notes in the amounts of $14,000,000 and $10,000,000 that are hedged by swap agreements that effectively convert the interest rates to 3.24% and 3.14% , respectively. 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. The Company was in compliance with all debt covenants as of December 31, 2019 and September 30, 2019. Long-term debt consists of the following: December 31, 2019 September 30, 2019 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 $ 142,398 $ 30,500,000 $ 144,811 Unsecured term note payable, at 30-day LIBOR plus 0.90%, due November 1, 2021 7,000,000 6,114 7,000,000 6,948 Unsecured term notes payable, at 3.58% due on October 2, 2027 8,000,000 37,324 8,000,000 38,528 Unsecured term notes payable, at 4.41% due on March 28, 2031 10,000,000 35,242 10,000,000 36,272 Unsecured term notes payable, at 3.60% due on December 6, 2029 10,000,000 32,445 — — RGC Midstream, LLC: Unsecured term notes payable, at 30-day LIBOR plus 1.35%, due December 29, 2022 21,704,200 77,603 16,012,200 59,504 Unsecured term note payable, at 30-day LIBOR plus 1.15%, due June 12, 2026 14,000,000 15,650 14,000,000 16,252 Unsecured term note payable, at 30-day LIBOR plus 1.20%, due June 1, 2024 10,000,000 10,411 10,000,000 11,000 Total notes payable $ 111,204,200 $ 357,187 $ 95,512,200 $ 313,315 Line-of-credit, at 30-day LIBOR plus 1.00%, due March 31, 2021 $ 2,925,766 $ — $ 8,172,473 $ — Total long-term debt $ 114,129,966 $ 357,187 $ 103,684,673 $ 313,315 |
Other Comprehensive Income
Other Comprehensive Income | 3 Months Ended |
Dec. 31, 2019 | |
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, 2019 Interest rate swaps: Unrealized gains $ 350,693 $ (90,269 ) $ 260,424 Transfer of realized losses to interest expense 3,540 (911 ) 2,629 Net interest rate swap 354,233 (91,180 ) 263,053 Defined benefit plans: Amortization of actuarial losses 22,610 (5,819 ) 16,791 Other comprehensive income $ 376,843 $ (96,999 ) $ 279,844 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 ) The amortization of actuarial gains and 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, 2019 $ (2,488,917 ) Other comprehensive income 279,844 Balance at December 31, 2019 $ (2,209,073 ) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Roanoke Gas currently holds the only franchises and/or CPCNs to distribute natural gas in its service area. The current franchise agreements expire December 31, 2035 . The Company's CPCNs are exclusive and generally 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 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 that 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 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, increasing system reliability and the Company's ability to meet future demands for natural gas. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per common share for the three months ended December 31, 2019 and 2018 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, 2019 2018 Net Income $ 4,006,936 $ 2,434,162 Weighted average common shares 8,081,837 8,003,736 Effect of dilutive securities: Options to purchase common stock 31,948 48,261 Diluted average common shares 8,113,785 8,051,997 Earnings Per Share of Common Stock: Basic $ 0.50 $ 0.30 Diluted $ 0.49 $ 0.30 |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company has both a pension plan and a 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, 2019 2018 Components of net periodic pension cost: Service cost $ 172,902 $ 134,317 Interest cost 265,557 291,682 Expected return on plan assets (459,156 ) (387,359 ) Recognized loss 113,936 39,650 Net periodic pension cost $ 93,239 $ 78,290 Three Months Ended December 31, 2019 2018 Components of postretirement benefit cost: Service cost $ 41,970 $ 33,221 Interest cost 132,869 162,236 Expected return on plan assets (137,599 ) (136,805 ) Recognized loss 59,343 30,951 Net postretirement benefit cost $ 96,583 $ 89,603 The components of net periodic benefit cost, other than the service cost component, are included in other income (expense), net in the condensed consolidated statements of income as prescribed under ASU 2017-07. Service cost is included in operations and maintenance expense in the condensed consolidated statements of income. 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 $ — $ 800,000 Postretirement medical plan — 400,000 Total $ — $ 1,200,000 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2019 | |
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, 2019 and September 30, 2019 : Fair Value Measurements - December 31, 2019 Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Natural gas purchases $ 955,372 $ — $ 955,372 $ — Interest rate swaps 540,108 — 540,108 — Total $ 1,495,480 $ — $ 1,495,480 $ — Fair Value Measurements - September 30, 2019 Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Natural gas purchases $ 397,757 $ — $ 397,757 $ — Interest rate swaps 894,341 — 894,341 — Total $ 1,292,098 $ — $ 1,292,098 $ — The fair value of the interest rate swaps are 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, 2019 and September 30, 2019 , 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 AROs. The AROs 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, 2019 and September 30, 2019 : Fair Value Measurements - December 31, 2019 Carrying Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Notes payable $ 111,204,200 $ — $ — $ 117,472,116 Total $ 111,204,200 $ — $ — $ 117,472,116 Fair Value Measurements - September 30, 2019 Carrying Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Notes payable $ 95,512,200 $ — $ — $ 100,900,952 Total $ 95,512,200 $ — $ — $ 100,900,952 The fair value of long-term debt is estimated by discounting the future cash flows of the fixed rate debt based on the underlying Treasury rate or other Treasury instruments with a corresponding maturity period and estimated credit spread extrapolated based on market conditions since the issuance of the debt. 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, 2019 and September 30, 2019 , 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. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Operating segments are defined as components of an enterprise for which separate financial information is available and is evaluated regularly by the Company's chief operating decision maker in deciding how to allocate resources and assess performance. The Company uses operating income and equity in earnings to assess segment performance. Intersegment transactions are recorded at cost. The reportable segments disclosed herein are defined as follows: Gas Utility - The natural gas segment of the Company generates revenue from its tariff rates and other regulatory mechanisms through which it provides the sale and distribution of natural gas to its residential, commercial and industrial customers. Investment in Affiliates - The investment in affiliates segment reflects the income generated through the activities of the Company's investment in the MVP and Southgate projects. Parent and Other - Parent and other include the unregulated activities of the Company as well as certain corporate eliminations. Information related to the segments of the Company are provided below: Three Months Ended December 31, 2019 Gas Utility Investment in Affiliates Parent and Other Consolidated Total Operating revenues 19,625,606 — 159,847 19,785,453 Depreciation 1,988,505 — — 1,988,505 Operating income (loss) 5,041,485 (38,591 ) 79,085 5,081,979 Equity in earnings — 1,094,086 — 1,094,086 Interest expense 718,853 366,332 — 1,085,185 Income before income taxes 4,478,882 690,354 79,287 5,248,523 Three Months Ended December 31, 2018 Gas Utility Investment in Affiliates Parent and Other Consolidated Total Operating revenues 21,036,581 — 180,166 21,216,747 Depreciation 1,905,475 — — 1,905,475 Operating income (loss) 3,230,825 (33,887 ) 67,284 3,264,222 Equity in earnings — 563,049 — 563,049 Interest expense 576,239 240,543 — 816,782 Income before income taxes 2,778,921 290,095 67,359 3,136,375 December 31, 2019 Gas Utility Investment in Affiliates Parent and Other Consolidated Total Total assets 204,771,371 49,674,141 13,737,101 268,182,613 September 30, 2019 Gas Utility Investment in Affiliates Parent and Other Consolidated Total Total assets 195,969,019 47,429,368 14,955,309 258,353,696 |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 3 Months Ended |
Dec. 31, 2019 | |
Regulatory Assets and Liabilities [Abstract] | |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities The Company’s regulated operations follow the accounting and reporting requirements of FASB ASC No. 980, Regulated Operations . The economic effects of regulation can result in a regulated company deferring costs that have been or are expected to be recovered from customers in a period different from the period in which the costs would be charged to expense by an unregulated enterprise. When this situation occurs, costs are deferred as assets in the consolidated balance sheet (regulatory assets) and recorded as expenses when such amounts are reflected in rates. Additionally, regulators can impose liabilities upon a regulated company for amounts previously collected from customers and for current collection in rates of costs that are expected to be incurred in the future (regulatory liabilities). In the event the provisions of FASB ASC No. 980 no longer apply to any or all regulatory assets or liabilities, the Company would write off such amounts and include them in the consolidated statements of income and comprehensive income in the period which FASB ASC No. 980 no longer applied. Regulatory assets included in the Company’s condensed consolidated balance sheets are as follows: December 31, 2019 September 30, 2019 Assets: Current Assets: Regulatory assets: WNA $ 736,156 $ 569,558 ESAC assets 180,809 265,392 Accrued pension and postretirement medical 452,005 602,674 Other deferred expenses 84,315 84,315 Total current 1,453,285 1,521,939 Utility Property: In service: Other 11,945 11,945 Other Assets: Regulatory assets: Premium on early retirement of debt 1,684,261 1,712,808 Accrued pension and postretirement medical 9,414,695 9,414,695 ESAC assets 416,676 756,803 Other deferred expenses 291,721 294,547 Total non-current 11,807,353 12,178,853 Total regulatory assets $ 13,272,583 $ 13,712,737 Regulatory liabilities included in the Company’s condensed consolidated balance sheets are as follows: December 31, 2019 September 30, 2019 Liabilities and Stockholders' Equity: Current Liabilities: Regulatory liabilities: Over-recovery of gas costs $ 1,077,563 $ 161,837 Over-recovery of SAVE Plan revenues 539,529 574,181 Rate refund 3,618,396 3,827,588 Excess deferred income taxes 205,353 205,353 Other deferred liabilities 128,891 108,644 Total current 5,569,732 4,877,603 Deferred Credits and Other Liabilities: Asset retirement obligations 6,844,857 6,788,683 Regulatory cost of retirement obligations 12,098,472 11,892,352 Regulatory Liabilities: Excess deferred income taxes 10,818,344 10,934,434 Total non-current 29,761,673 29,615,469 Total regulatory liabilities $ 35,331,405 $ 34,493,072 As of December 31, 2019 and September 30, 2019 , the Company had regulatory assets in the amount of $13,260,638 and $13,700,792 , respectively, on which the Company did not earn a return during the recovery period. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 24, 2020, the SCC issued their final order on the Company's non-gas rate increase. The Company has adjusted it's provision for rate refund based on the authorized rate increase of $7.25 million and reflected all adjustments directed in the order in the condensed consolidated financial statements for the quarter ended December 31, 2019. See Note 4 for additional information. The Company has evaluated subsequent events through the date the financial statements were issued. There were no other 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, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Resources is an energy services company primarily engaged in the sale and distribution of natural gas. The condensed consolidated financial statements include the accounts of Resources and its wholly-owned subsidiaries: Roanoke Gas, Diversified Energy and Midstream. 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, 2019 and the results of its operations, comprehensive income, changes in stockholders' equity and cash flows for the three months ended December 31, 2019 and 2018 . The results of operations for the three months ended December 31, 2019 are not indicative of the results to be expected for the fiscal year ending September 30, 2020 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 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, 2019 . The September 30, 2019 consolidated 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, 2019 . Newly adopted and newly issued accounting standards are discussed below. |
Recently Issued or Adopted Accounting Standards | Recently Issued or Adopted Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) that affects any entity that enters into contracts with customers for the transfer of goods or services or transfer of non-financial assets. This guidance supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers. 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 was 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 effective October 1, 2018 with no significant impact to revenues recognized and no significant changes to the Company’s related business processes, systems or internal controls over financial reporting. See Note 2 for further information. In February 2016, the FASB issued ASU 2016-02, Leases. This 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. 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 new guidance is effective for the Company for the annual reporting period ending September 30, 2020 and interim periods within that annual period. The Company adopted ASU 2016-02 and related guidance effective October 1, 2019. At the time of adoption, the Company had one operating lease. The value of the lease obligation under the new guidance would be approximately $25,000 , which falls below the Company's $50,000 aggregate threshold for recording leases under the new standard. If at a future point, the total value of all leases exceeded this threshold, the Company would recognize the leases in accordance with current guidance in addition to providing the required disclosures. The current operating lease has a term of 2 years with quarterly payments in the amount of $3,240 until the lease terminates in September 2021. This new guidance does not have a material effect on the Company's financial position, results of operations or cash flows. 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 Company adopted the new guidance effective October 1, 2019. As the Company currently has only cash flow hedges and no portion of these swaps were deemed ineffective during the periods presented, this new guidance does not have a material effect on the Company's 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 Company adopted the new guidance effective October 1, 2019. The adoption of this new guidance does not currently have a material effect on the Company's consolidated financial statements. However, as the ASU changes the treatment of certain contracts by allowing related implementation costs to be capitalized and amortized over time, rather than directly expensed; there could be a significant impact on the Company's financial position, results of operations and cash flow in the future. 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. 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 (Tables)
Revenue (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
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, 2019 Three months ended December 31, 2018 Gas utility Non utility Total operating revenues Gas utility Non utility Total operating revenues Natural Gas (Billed and Unbilled): Residential $ 12,290,361 $ — $ 12,290,361 $ 13,012,592 $ — $ 13,012,592 Commercial 5,729,218 — 5,729,218 7,342,702 — 7,342,702 Industrial and Transportation 1,326,085 — 1,326,085 1,226,137 — 1,226,137 Revenue reductions (TCJA) (1) — — — (523,881 ) — (523,881 ) Other 215,998 159,847 375,845 226,492 180,166 406,658 Total contracts with customers 19,561,662 159,847 19,721,509 21,284,042 180,166 21,464,208 Alternative Revenue Programs 63,944 — 63,944 (247,461 ) — (247,461 ) Total operating revenues $ 19,625,606 $ 159,847 $ 19,785,453 $ 21,036,581 $ 180,166 $ 21,216,747 (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: Current Assets Current Liabilities Trade accounts receivable (1) Unbilled revenue (1) Customer credit balances Customer deposits Balance at September 30, 2019 $ 2,590,702 $ 1,236,384 $ 880,295 $ 1,432,031 Balance at December 31, 2019 6,278,383 3,690,130 821,643 1,549,435 Increase (decrease) $ 3,687,681 $ 2,453,746 $ (58,652 ) $ 117,404 (1) Included in accounts receivable 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, 2019 | |
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, 2019 2018 Income before income taxes $ 5,248,523 $ 3,136,375 Corporate federal tax rate 21.00 % 21.00 % Income tax expense computed at the federal statutory rate $ 1,102,190 $ 658,639 State income taxes, net of federal tax benefit 250,037 150,589 Net amortization of excess deferred taxes on regulated operations (86,208 ) (86,208 ) Other, net (24,432 ) (20,807 ) Total income tax expense $ 1,241,587 $ 702,213 Effective tax rate 23.7 % 22.4 % |
Other Investments (Tables)
Other Investments (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Other Investments | The investments in the LLC are included in the condensed consolidated financial statements as follows: Balance Sheet location of Other Investments: December 31, 2019 September 30, 2019 Other Assets: MVP $ 49,055,748 $ 47,055,426 Southgate 320,033 320,033 Investment in unconsolidated affiliates $ 49,375,781 $ 47,375,459 Current Liabilities: MVP $ 891,903 $ 4,958,260 Southgate — 66,564 Capital contributions payable $ 891,903 $ 5,024,824 Three Months Ended Income Statement location of Other Investments: December 31, 2019 December 31, 2018 Equity in earnings of unconsolidated affiliate $ 1,094,086 $ 563,049 December 31, 2019 September 30, 2019 Undistributed earnings, net of income taxes, of MVP in retained earnings $ 4,079,644 $ 3,267,176 The change in the investment in unconsolidated affiliate is provided below: Three Months Ended December 31, 2019 December 31, 2018 Cash investment $ 5,039,157 $ 10,142,766 Change in accrued capital calls (4,132,921 ) (6,395,680 ) Equity in earnings of unconsolidated affiliates 1,094,086 563,049 Change in investment in unconsolidated affiliates $ 2,000,322 $ 4,310,135 |
Summary Unaudited Financial Statements - Equity Method Investment | Summary of unaudited financial statements of Mountain Valley Pipeline are presented below. Southgate financial statements, which are accounted for under the cost method, are not included: Income Statements Three Months Ended December 31, 2019 December 31, 2018 AFUDC $ 110,025,474 $ 54,184,516 Net Other Income $ 734,182 $ 2,562,792 Net Income $ 110,759,656 $ 56,747,308 Balance Sheets December 31, 2019 September 30, 2019 Assets: Current Assets $ 243,577,729 $ 485,323,892 Construction Work in Progress 4,941,631,920 4,675,267,389 Other Assets 9,923,000 13,190,816 Total Assets $ 5,195,132,649 $ 5,173,782,097 Liabilities and Equity: Current Liabilities $ 223,678,580 $ 466,776,233 Capital 4,971,454,069 4,707,005,864 Total Liabilities and Equity $ 5,195,132,649 $ 5,173,782,097 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following: December 31, 2019 September 30, 2019 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 $ 142,398 $ 30,500,000 $ 144,811 Unsecured term note payable, at 30-day LIBOR plus 0.90%, due November 1, 2021 7,000,000 6,114 7,000,000 6,948 Unsecured term notes payable, at 3.58% due on October 2, 2027 8,000,000 37,324 8,000,000 38,528 Unsecured term notes payable, at 4.41% due on March 28, 2031 10,000,000 35,242 10,000,000 36,272 Unsecured term notes payable, at 3.60% due on December 6, 2029 10,000,000 32,445 — — RGC Midstream, LLC: Unsecured term notes payable, at 30-day LIBOR plus 1.35%, due December 29, 2022 21,704,200 77,603 16,012,200 59,504 Unsecured term note payable, at 30-day LIBOR plus 1.15%, due June 12, 2026 14,000,000 15,650 14,000,000 16,252 Unsecured term note payable, at 30-day LIBOR plus 1.20%, due June 1, 2024 10,000,000 10,411 10,000,000 11,000 Total notes payable $ 111,204,200 $ 357,187 $ 95,512,200 $ 313,315 Line-of-credit, at 30-day LIBOR plus 1.00%, due March 31, 2021 $ 2,925,766 $ — $ 8,172,473 $ — Total long-term debt $ 114,129,966 $ 357,187 $ 103,684,673 $ 313,315 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
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, 2019 Interest rate swaps: Unrealized gains $ 350,693 $ (90,269 ) $ 260,424 Transfer of realized losses to interest expense 3,540 (911 ) 2,629 Net interest rate swap 354,233 (91,180 ) 263,053 Defined benefit plans: Amortization of actuarial losses 22,610 (5,819 ) 16,791 Other comprehensive income $ 376,843 $ (96,999 ) $ 279,844 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 ) |
Reconciliation of Other Accumulated Other Comprehensive Income (Loss) | Reconciliation of Other Accumulated Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) Balance at September 30, 2019 $ (2,488,917 ) Other comprehensive income 279,844 Balance at December 31, 2019 $ (2,209,073 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 Net Income $ 4,006,936 $ 2,434,162 Weighted average common shares 8,081,837 8,003,736 Effect of dilutive securities: Options to purchase common stock 31,948 48,261 Diluted average common shares 8,113,785 8,051,997 Earnings Per Share of Common Stock: Basic $ 0.50 $ 0.30 Diluted $ 0.49 $ 0.30 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 Components of net periodic pension cost: Service cost $ 172,902 $ 134,317 Interest cost 265,557 291,682 Expected return on plan assets (459,156 ) (387,359 ) Recognized loss 113,936 39,650 Net periodic pension cost $ 93,239 $ 78,290 Three Months Ended December 31, 2019 2018 Components of postretirement benefit cost: Service cost $ 41,970 $ 33,221 Interest cost 132,869 162,236 Expected return on plan assets (137,599 ) (136,805 ) Recognized loss 59,343 30,951 Net postretirement benefit cost $ 96,583 $ 89,603 |
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 $ — $ 800,000 Postretirement medical plan — 400,000 Total $ — $ 1,200,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
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, 2019 and September 30, 2019 : Fair Value Measurements - December 31, 2019 Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Natural gas purchases $ 955,372 $ — $ 955,372 $ — Interest rate swaps 540,108 — 540,108 — Total $ 1,495,480 $ — $ 1,495,480 $ — Fair Value Measurements - September 30, 2019 Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Natural gas purchases $ 397,757 $ — $ 397,757 $ — Interest rate swaps 894,341 — 894,341 — Total $ 1,292,098 $ — $ 1,292,098 $ — |
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, 2019 and September 30, 2019 : Fair Value Measurements - December 31, 2019 Carrying Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Notes payable $ 111,204,200 $ — $ — $ 117,472,116 Total $ 111,204,200 $ — $ — $ 117,472,116 Fair Value Measurements - September 30, 2019 Carrying Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Notes payable $ 95,512,200 $ — $ — $ 100,900,952 Total $ 95,512,200 $ — $ — $ 100,900,952 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Information related to segments | Information related to the segments of the Company are provided below: Three Months Ended December 31, 2019 Gas Utility Investment in Affiliates Parent and Other Consolidated Total Operating revenues 19,625,606 — 159,847 19,785,453 Depreciation 1,988,505 — — 1,988,505 Operating income (loss) 5,041,485 (38,591 ) 79,085 5,081,979 Equity in earnings — 1,094,086 — 1,094,086 Interest expense 718,853 366,332 — 1,085,185 Income before income taxes 4,478,882 690,354 79,287 5,248,523 Three Months Ended December 31, 2018 Gas Utility Investment in Affiliates Parent and Other Consolidated Total Operating revenues 21,036,581 — 180,166 21,216,747 Depreciation 1,905,475 — — 1,905,475 Operating income (loss) 3,230,825 (33,887 ) 67,284 3,264,222 Equity in earnings — 563,049 — 563,049 Interest expense 576,239 240,543 — 816,782 Income before income taxes 2,778,921 290,095 67,359 3,136,375 December 31, 2019 Gas Utility Investment in Affiliates Parent and Other Consolidated Total Total assets 204,771,371 49,674,141 13,737,101 268,182,613 September 30, 2019 Gas Utility Investment in Affiliates Parent and Other Consolidated Total Total assets 195,969,019 47,429,368 14,955,309 258,353,696 |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Regulatory Assets and Liabilities [Abstract] | |
Schedule of Regulatory Assets | Regulatory assets included in the Company’s condensed consolidated balance sheets are as follows: December 31, 2019 September 30, 2019 Assets: Current Assets: Regulatory assets: WNA $ 736,156 $ 569,558 ESAC assets 180,809 265,392 Accrued pension and postretirement medical 452,005 602,674 Other deferred expenses 84,315 84,315 Total current 1,453,285 1,521,939 Utility Property: In service: Other 11,945 11,945 Other Assets: Regulatory assets: Premium on early retirement of debt 1,684,261 1,712,808 Accrued pension and postretirement medical 9,414,695 9,414,695 ESAC assets 416,676 756,803 Other deferred expenses 291,721 294,547 Total non-current 11,807,353 12,178,853 Total regulatory assets $ 13,272,583 $ 13,712,737 |
Schedule of Regulatory Liabilities | Regulatory liabilities included in the Company’s condensed consolidated balance sheets are as follows: December 31, 2019 September 30, 2019 Liabilities and Stockholders' Equity: Current Liabilities: Regulatory liabilities: Over-recovery of gas costs $ 1,077,563 $ 161,837 Over-recovery of SAVE Plan revenues 539,529 574,181 Rate refund 3,618,396 3,827,588 Excess deferred income taxes 205,353 205,353 Other deferred liabilities 128,891 108,644 Total current 5,569,732 4,877,603 Deferred Credits and Other Liabilities: Asset retirement obligations 6,844,857 6,788,683 Regulatory cost of retirement obligations 12,098,472 11,892,352 Regulatory Liabilities: Excess deferred income taxes 10,818,344 10,934,434 Total non-current 29,761,673 29,615,469 Total regulatory liabilities $ 35,331,405 $ 34,493,072 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Dec. 31, 2019USD ($) | Oct. 01, 2019USD ($)lease |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, term of contract | 2 years | |
Quarterly operating lease obligation | $ 3,240 | |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of operating leases | lease | 1 | |
Operating lease obligation | $ 25,000 | |
Aggregate threshold for recording operating lease obligation | $ 50,000 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | $ 19,721,509 | $ 21,464,208 |
Revenue reductions (TCJA) | 0 | (523,881) |
Alternative Revenue Programs | 63,944 | (247,461) |
Operating revenues | 19,785,453 | 21,216,747 |
Natural Gas [Member] | Residential [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 12,290,361 | 13,012,592 |
Natural Gas [Member] | Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 5,729,218 | 7,342,702 |
Natural Gas [Member] | Industrial and Transportation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 1,326,085 | 1,226,137 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 375,845 | 406,658 |
Gas Utility [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 19,561,662 | 21,284,042 |
Revenue reductions (TCJA) | 0 | (523,881) |
Alternative Revenue Programs | 63,944 | (247,461) |
Operating revenues | 19,625,606 | 21,036,581 |
Gas Utility [Member] | Natural Gas [Member] | Residential [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 12,290,361 | 13,012,592 |
Gas Utility [Member] | Natural Gas [Member] | Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 5,729,218 | 7,342,702 |
Gas Utility [Member] | Natural Gas [Member] | Industrial and Transportation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 1,326,085 | 1,226,137 |
Gas Utility [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 215,998 | 226,492 |
Non Utility [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total contracts with customers | 159,847 | 180,166 |
Revenue reductions (TCJA) | 0 | 0 |
Alternative Revenue Programs | 0 | 0 |
Operating revenues | 159,847 | 180,166 |
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 | $ 159,847 | $ 180,166 |
Revenue (Customer Accounts Rece
Revenue (Customer Accounts Receivable) (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Unbilled revenue | $ 3,690,130 | $ 1,236,384 |
Increase (decrease) in Unbilled revenue | 2,453,746 | |
Customer credit balances | 821,643 | 880,295 |
Increase (decrease) in Customer credit balances | (58,652) | |
Customer deposits | 1,549,435 | 1,432,031 |
Increase (decrease) in Customer deposits | 117,404 | |
Capitalized Contract Cost [Line Items] | ||
Trade accounts receivable | 10,084,224 | 3,870,211 |
Trade Accounts Receivable [Member] | ||
Capitalized Contract Cost [Line Items] | ||
Trade accounts receivable | 6,278,383 | $ 2,590,702 |
Increase (decrease) in Trade accounts receivable | $ 3,687,681 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Income Tax Expense Based on Federal Statutory Rate) (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income before income taxes | $ 5,248,523 | $ 3,136,375 |
Corporate federal tax rate | 21.00% | 21.00% |
Income tax expense computed at the federal statutory rate | $ 1,102,190 | $ 658,639 |
State income taxes, net of federal tax benefit | 250,037 | 150,589 |
Net amortization of excess deferred taxes on regulated operations | (86,208) | (86,208) |
Other, net | (24,432) | (20,807) |
Total income tax expense | $ 1,241,587 | $ 702,213 |
Effective tax rate | 23.70% | 22.40% |
Rates and Regulatory Matters (D
Rates and Regulatory Matters (Details) - Roanoke Gas Company [Member] - USD ($) | Jan. 24, 2020 | Nov. 26, 2019 | Jun. 28, 2019 | Oct. 10, 2018 | Dec. 31, 2019 |
Regulatory Liabilities [Line Items] | |||||
Additional write down of ESAC regulatory assets | $ 317,191 | ||||
Regulatory liability, refund period (in years) | 28 years | ||||
General Rate Case [Member] | Virginia State Corporate Commission (SCC) [Member] | |||||
Regulatory Liabilities [Line Items] | |||||
Requested non-gas rates increase | $ 10,500,000 | ||||
Recommended rate increase | $ 7,100,000 | $ 6,500,000 | |||
Subsequent Event [Member] | General Rate Case [Member] | Virginia State Corporate Commission (SCC) [Member] | |||||
Regulatory Liabilities [Line Items] | |||||
Approved non-gas rate increase | $ 7,250,000 |
Other Investments (Narrative) (
Other Investments (Narrative) (Details) - RGC Midstream LLC [Member] Bcf in Millions, $ in Millions | 1 Months Ended | |||
Apr. 30, 2018USD ($)mi | Dec. 31, 2019USD ($)debt_instrument | Jun. 12, 2019instrument_held | Oct. 31, 2015Bcf | |
Investment [Line Items] | ||||
Number of unsecured Promissory Notes funding the investment | 2 | 2 | ||
MVP [Member] | ||||
Investment [Line Items] | ||||
Equity interest percentage | 1.00% | |||
Pipeline capacity per day (in bcf) | Bcf | 2 | |||
MVP [Member] | Minimum [Member] | ||||
Investment [Line Items] | ||||
Total project cost | $ 5,300 | |||
Total estimated investment | 53 | |||
MVP [Member] | Maximum [Member] | ||||
Investment [Line Items] | ||||
Total project cost | 5,500 | |||
Total estimated investment | $ 55 | |||
Southgate [Member] | ||||
Investment [Line Items] | ||||
Length of planned natural gas pipeline (in miles) | mi | 74 | |||
Estimated total MVP Southgate pipeline cost projection | $ 500 | |||
Estimated investment in MVP Southgate | $ 2.5 | |||
Southgate [Member] | Southgate [Member] | ||||
Investment [Line Items] | ||||
Ownership percentage (less than) | 1.00% |
Other Investments (Schedule of
Other Investments (Schedule of Other Investments) (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Other Assets: | |||
Investment in unconsolidated affiliates | $ 49,375,781 | $ 47,375,459 | |
Current Liabilities: | |||
Capital contributions payable | 891,903 | 5,024,824 | |
Income Statement location of Other Investments: | |||
Equity in earnings of unconsolidated affiliate | 1,094,086 | $ 563,049 | |
Undistributed earnings, net of income taxes, of MVP in retained earnings | 4,079,644 | 3,267,176 | |
Change in investment in unconsolidated affiliate [Abstract] | |||
Cash investment | 5,039,157 | 10,142,766 | |
Change in accrued capital calls | (4,132,921) | (6,395,680) | |
Equity in earnings of unconsolidated affiliate | 1,094,086 | 563,049 | |
Change in investment in unconsolidated affiliates | 2,000,322 | $ 4,310,135 | |
MVP [Member] | |||
Other Assets: | |||
MVP | 49,055,748 | 47,055,426 | |
Current Liabilities: | |||
Capital contributions payable | 891,903 | 4,958,260 | |
Southgate [Member] | |||
Other Assets: | |||
Southgate | 320,033 | 320,033 | |
Current Liabilities: | |||
Capital contributions payable | $ 0 | $ 66,564 |
Other Investments (Investment i
Other Investments (Investment in Unconsolidated Entity) (Details) - Mountain Valley Pipeline LLC (Unconsolidated Entity) - USD ($) | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Income Statement | |||
AFUDC | $ 110,025,474 | $ 54,184,516 | |
Net Other Income | 734,182 | 2,562,792 | |
Net Income | 110,759,656 | $ 56,747,308 | |
Assets: | |||
Current Assets | 243,577,729 | $ 485,323,892 | |
Construction Work in Progress | 4,941,631,920 | 4,675,267,389 | |
Other Assets | 9,923,000 | 13,190,816 | |
Total Assets | 5,195,132,649 | 5,173,782,097 | |
Liabilities and Equity: | |||
Current Liabilities | 223,678,580 | 466,776,233 | |
Capital | 4,971,454,069 | 4,707,005,864 | |
Total Liabilities and Equity | $ 5,195,132,649 | $ 5,173,782,097 |
Derivatives and Hedging (Detail
Derivatives and Hedging (Details) | Dec. 31, 2019USD ($)instrument_helddebt_instrument | Jun. 13, 2019USD ($) | Jun. 12, 2019USD ($)instrument_held |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Number of interest rate swaps associated with note(s) | instrument_held | 3 | ||
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% | ||
RGC Midstream LLC [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Number of interest rate swaps associated with note(s) | instrument_held | 2 | ||
Debt instrument, number of instruments | 2 | 2 | |
RGC Midstream LLC [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.15%, due June 12, 2026 [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Debt instrument, borrowing amount | $ 14,000,000 | $ 14,000,000 | |
Effective interest rate | 3.24% | 3.24% | |
RGC Midstream LLC [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.20%, due June 1, 2024 [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Debt instrument, borrowing amount | $ 10,000,000 | $ 10,000,000 | |
Effective interest rate | 3.14% | 3.14% |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | Dec. 23, 2019USD ($) | Dec. 06, 2019USD ($) | Dec. 31, 2019USD ($)debt_instrument | Sep. 30, 2019USD ($) | Jun. 13, 2019USD ($) | Jun. 12, 2019USD ($)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 3.60%, due December 6, 2029 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, borrowing amount | $ 10,000,000 | |||||
Debt term | 10 years | |||||
Stated percentage rate | 3.60% | 3.60% | ||||
Maximum percentage of Priority Indebtedness to Consolidated Total Assets | 15.00% | |||||
Roanoke Gas [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 4.41%, due March 28, 2031 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated percentage rate | 4.41% | |||||
Roanoke Gas [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 0.90%, due November 1, 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, borrowing amount | $ 7,000,000 | |||||
Effective interest rate | 2.30% | |||||
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% | |||||
Roanoke Gas [Member] | Line of Credit [Member] | Line of Credit, at 30-day LIBOR plus 1.00%, due March 31, 2021 [Member] | 30-day LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate basis points (as a percent) | 1.00% | |||||
RGC Midstream LLC [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, number of instruments | 2 | 2 | ||||
RGC Midstream LLC [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.35%, due December 29, 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, borrowing amount | $ 41,000,000 | $ 26,000,000 | ||||
Maximum percentage of Priority Indebtedness to Consolidated Total Assets | 15.00% | |||||
RGC Midstream LLC [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.35%, due December 29, 2022 [Member] | 30-day LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate basis points (as a percent) | 1.35% | 1.35% | ||||
RGC Midstream LLC [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.15%, due June 12, 2026 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, borrowing amount | $ 14,000,000 | $ 14,000,000 | ||||
Effective interest rate | 3.24% | 3.24% | ||||
Maximum percentage of Priority Indebtedness to Consolidated Total Assets | 15.00% | |||||
RGC Midstream LLC [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.15%, due June 12, 2026 [Member] | 30-day LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate basis points (as a percent) | 1.15% | |||||
RGC Midstream LLC [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.20%, due June 1, 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, borrowing amount | $ 10,000,000 | $ 10,000,000 | ||||
Effective interest rate | 3.14% | 3.14% | ||||
Maximum percentage of Priority Indebtedness to Consolidated Total Assets | 15.00% | |||||
RGC Midstream LLC [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.20%, due June 1, 2024 [Member] | 30-day LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate basis points (as a percent) | 1.20% |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) | Dec. 23, 2019 | Dec. 31, 2019 | Dec. 06, 2019 | Sep. 30, 2019 |
Debt Instrument [Line Items] | ||||
Notes payable | $ 111,204,200 | $ 95,512,200 | ||
Principal | 114,129,966 | 103,684,673 | ||
Unamortized Debt Issuance Costs | 357,187 | 313,315 | ||
Notes Payable [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes payable | 111,204,200 | 95,512,200 | ||
Unamortized Debt Issuance Costs | 357,187 | 313,315 | ||
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 | $ 142,398 | 144,811 | ||
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 | $ 6,114 | 6,948 | ||
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 | $ 37,324 | 38,528 | ||
Stated percentage rate | 3.58% | |||
Roanoke Gas Company [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 4.41%, due March 28, 2031 [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 10,000,000 | 10,000,000 | ||
Unamortized Debt Issuance Costs | $ 35,242 | 36,272 | ||
Stated percentage rate | 4.41% | |||
Roanoke Gas Company [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 3.60%, due December 6, 2029 [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 10,000,000 | 0 | ||
Unamortized Debt Issuance Costs | $ 32,445 | 0 | ||
Stated percentage rate | 3.60% | 3.60% | ||
Roanoke Gas Company [Member] | Line of Credit [Member] | Line of Credit, at 30-day LIBOR plus 1.00%, due March 31, 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Line-of-credit | $ 2,925,766 | 8,172,473 | ||
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, 2021 [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, 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 21,704,200 | 16,012,200 | ||
Unamortized Debt Issuance Costs | $ 77,603 | 59,504 | ||
RGC Midstream LLC [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.35%, due December 29, 2022 [Member] | 30-day LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable rate basis points (as a percent) | 1.35% | 1.35% | ||
RGC Midstream LLC [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.15%, due June 12, 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 14,000,000 | 14,000,000 | ||
Unamortized Debt Issuance Costs | $ 15,650 | 16,252 | ||
RGC Midstream LLC [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.15%, due June 12, 2026 [Member] | 30-day LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable rate basis points (as a percent) | 1.15% | |||
RGC Midstream LLC [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.20%, due June 1, 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 10,000,000 | 10,000,000 | ||
Unamortized Debt Issuance Costs | $ 10,411 | $ 11,000 | ||
RGC Midstream LLC [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.20%, due June 1, 2024 [Member] | 30-day LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable rate basis points (as a percent) | 1.20% |
Other Comprehensive Income (Sch
Other Comprehensive Income (Schedule of Other Comprehensive Income and Loss) (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Before-Tax Amount | ||
Other comprehensive income (loss) | $ 376,843 | $ (112,194) |
Tax (Expense) or Benefit | ||
Other comprehensive income | (96,999) | 28,878 |
Net-of-Tax Amount | ||
Other comprehensive income (loss), net of tax | 279,844 | (83,316) |
Interest rate swap [Member] | ||
Before-Tax Amount | ||
Other comprehensive income (loss) before reclassifications | 350,693 | |
Reclassifications from accumulated other comprehensive income | 3,540 | |
Other comprehensive income (loss) | 354,233 | |
Tax (Expense) or Benefit | ||
Other comprehensive income before reclassifications | (90,269) | |
Reclassifications from accumulated other comprehensive income | (911) | |
Other comprehensive income | (91,180) | |
Net-of-Tax Amount | ||
Other comprehensive income (loss) before reclassifications | 260,424 | |
Reclassifications from accumulated other comprehensive income | 2,629 | |
Other comprehensive income (loss), net of tax | 263,053 | |
Interest rate swap [Member] | ||
Before-Tax Amount | ||
Other comprehensive income (loss) before reclassifications | (93,956) | |
Reclassifications from accumulated other comprehensive income | (15,662) | |
Other comprehensive income (loss) | (109,618) | |
Tax (Expense) or Benefit | ||
Other comprehensive income before reclassifications | 24,184 | |
Reclassifications from accumulated other comprehensive income | 4,031 | |
Other comprehensive income | 28,215 | |
Net-of-Tax Amount | ||
Other comprehensive income (loss) before reclassifications | (69,772) | |
Reclassifications from accumulated other comprehensive income | (11,631) | |
Other comprehensive income (loss), net of tax | (81,403) | |
Defined benefit plans [Member] | ||
Before-Tax Amount | ||
Other comprehensive income (loss) | 22,610 | (2,576) |
Tax (Expense) or Benefit | ||
Other comprehensive income | (5,819) | 663 |
Net-of-Tax Amount | ||
Other comprehensive income (loss), net of tax | $ 16,791 | $ (1,913) |
Other Comprehensive Income (Rec
Other Comprehensive Income (Reconciliation of Accumulated Comprehensive Income (Loss)) (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Other Accumulated Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | $ 83,096,392 | $ 79,583,112 |
Other comprehensive income | 279,844 | (83,316) |
Balance at end of period | 86,359,135 | 80,959,740 |
Accumulated Other Comprehensive Income (Loss) | ||
Increase (Decrease) in Other Accumulated Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | (2,488,917) | (871,668) |
Other comprehensive income | 279,844 | (83,316) |
Balance at end of period | $ (2,209,073) | $ (954,984) |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended |
Dec. 31, 2019pipeline | |
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, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net Income | $ 4,006,936 | $ 2,434,162 |
Weighted average common shares (in shares) | 8,081,837 | 8,003,736 |
Effect of dilutive securities: | ||
Options to purchase common stock (in shares) | 31,948 | 48,261 |
Diluted average common shares (in shares) | 8,113,785 | 8,051,997 |
Earnings Per Share of Common Stock: | ||
Basic (in dollars per share) | $ 0.50 | $ 0.30 |
Diluted (in dollars per share) | $ 0.49 | $ 0.30 |
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, 2019 | Dec. 31, 2018 | |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 172,902 | $ 134,317 |
Interest cost | 265,557 | 291,682 |
Expected return on plan assets | (459,156) | (387,359) |
Recognized loss | 113,936 | 39,650 |
Net periodic/postretirement pension/benefit cost | 93,239 | 78,290 |
Postretirement Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 41,970 | 33,221 |
Interest cost | 132,869 | 162,236 |
Expected return on plan assets | (137,599) | (136,805) |
Recognized loss | 59,343 | 30,951 |
Net periodic/postretirement pension/benefit cost | $ 96,583 | $ 89,603 |
Employee Benefit Plans (Sched_2
Employee Benefit Plans (Schedule of Actual and Expected Employer Contributions) (Details) | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal Year-to-Date Contributions | $ 0 |
Remaining Fiscal Year Contributions | 1,200,000 |
Defined Benefit Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal Year-to-Date Contributions | 0 |
Remaining Fiscal Year Contributions | 800,000 |
Postretirement Medical Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal Year-to-Date Contributions | 0 |
Remaining Fiscal Year Contributions | $ 400,000 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis) (Details) - Fair Value [Member] - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Quoted Prices in Active Markets (Level 1) [Member] | ||
Liabilities: | ||
Total | $ 0 | $ 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Liabilities: | ||
Total | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Liabilities: | ||
Total | 117,472,116 | 100,900,952 |
Recurring [Member] | ||
Liabilities: | ||
Natural gas purchases | 955,372 | 397,757 |
Total | 1,495,480 | 1,292,098 |
Recurring [Member] | Interest Rate Swap [Member] | ||
Liabilities: | ||
Interest rate swap | 540,108 | 894,341 |
Recurring [Member] | Quoted Prices in Active Markets (Level 1) [Member] | ||
Liabilities: | ||
Natural gas purchases | 0 | 0 |
Total | 0 | 0 |
Recurring [Member] | Quoted Prices in Active Markets (Level 1) [Member] | Interest Rate Swap [Member] | ||
Liabilities: | ||
Interest rate swap | 0 | 0 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Liabilities: | ||
Natural gas purchases | 955,372 | 397,757 |
Total | 1,495,480 | 1,292,098 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Swap [Member] | ||
Liabilities: | ||
Interest rate swap | 540,108 | 894,341 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Liabilities: | ||
Natural gas purchases | 0 | 0 |
Total | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Interest Rate Swap [Member] | ||
Liabilities: | ||
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, 2019 | Sep. 30, 2019 |
Carrying Value [Member] | ||
Liabilities: | ||
Notes payable | $ 111,204,200 | $ 95,512,200 |
Total | 111,204,200 | 95,512,200 |
Fair Value [Member] | Quoted Prices in Active Markets (Level 1) [Member] | ||
Liabilities: | ||
Notes payable | 0 | 0 |
Total | 0 | 0 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Liabilities: | ||
Notes payable | 0 | 0 |
Total | 0 | 0 |
Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Liabilities: | ||
Notes payable | 117,472,116 | 100,900,952 |
Total | $ 117,472,116 | $ 100,900,952 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Segment Information to Consolidated) (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | |||
Operating revenues | $ 19,785,453 | $ 21,216,747 | |
Depreciation | 1,988,505 | 1,905,475 | |
Operating income (loss) | 5,081,979 | 3,264,222 | |
Equity in earnings | 1,094,086 | 563,049 | |
Interest expense | 1,085,185 | 816,782 | |
Income before income taxes | 5,248,523 | 3,136,375 | |
Total assets | 268,182,613 | $ 258,353,696 | |
Operating Segments | Gas Utility | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 19,625,606 | 21,036,581 | |
Depreciation | 1,988,505 | 1,905,475 | |
Operating income (loss) | 5,041,485 | 3,230,825 | |
Equity in earnings | 0 | 0 | |
Interest expense | 718,853 | 576,239 | |
Income before income taxes | 4,478,882 | 2,778,921 | |
Total assets | 204,771,371 | 195,969,019 | |
Operating Segments | Investment In Affiliates | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 0 | 0 | |
Depreciation | 0 | 0 | |
Operating income (loss) | (38,591) | (33,887) | |
Equity in earnings | 1,094,086 | 563,049 | |
Interest expense | 366,332 | 240,543 | |
Income before income taxes | 690,354 | 290,095 | |
Total assets | 49,674,141 | 47,429,368 | |
Parent and Other | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 159,847 | 180,166 | |
Depreciation | 0 | 0 | |
Operating income (loss) | 79,085 | 67,284 | |
Equity in earnings | 0 | 0 | |
Interest expense | 0 | 0 | |
Income before income taxes | 79,287 | $ 67,359 | |
Total assets | $ 13,737,101 | $ 14,955,309 |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities (Schedule of Regulatory Assets) (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Regulatory Assets [Line Items] | ||
Current regulatory assets | $ 1,453,285 | $ 1,521,939 |
Utility property in service, other | 11,945 | 11,945 |
Noncurrent regulatory assets | 11,807,353 | 12,178,853 |
Total regulatory assets | 13,272,583 | 13,712,737 |
WNA | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 736,156 | 569,558 |
ESAC Assets | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 180,809 | 265,392 |
Noncurrent regulatory assets | 416,676 | 756,803 |
Accrued pension and postretirement medical | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 452,005 | 602,674 |
Noncurrent regulatory assets | 9,414,695 | 9,414,695 |
Other deferred expenses | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 84,315 | 84,315 |
Noncurrent regulatory assets | 291,721 | 294,547 |
Premium on early retirement of debt | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | $ 1,684,261 | $ 1,712,808 |
Regulatory Assets and Liabili_4
Regulatory Assets and Liabilities (Schedule of Regulatory Liabilities) (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | $ 5,569,732 | $ 4,877,603 |
Deferred Credits and Other Liabilities: | ||
Asset retirement obligations | 6,844,857 | 6,788,683 |
Regulatory cost of retirement obligations | 12,098,472 | 11,892,352 |
Noncurrent regulatory liabilities - excess deferred income taxes | 10,818,344 | 10,934,434 |
Total non-current | 29,761,673 | 29,615,469 |
Total regulatory liabilities | 35,331,405 | 34,493,072 |
Over-recovery of gas costs | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 1,077,563 | 161,837 |
Over-recovery of SAVE Plan revenues | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 539,529 | 574,181 |
Rate Refund | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 3,618,396 | 3,827,588 |
Excess deferred income taxes | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 205,353 | 205,353 |
Other deferred liabilities | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | $ 128,891 | $ 108,644 |
Regulatory Assets and Liabili_5
Regulatory Assets and Liabilities (Narrative) (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Regulatory Assets and Liabilities [Abstract] | ||
Remaining amount of regulatory assets that did not earn a return during the recovery period | $ 13,260,638 | $ 13,700,792 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) $ in Thousands | Jan. 24, 2020USD ($) |
General Rate Case [Member] | Roanoke Gas Company [Member] | Virginia State Corporate Commission (SCC) [Member] | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Approved non-gas rate increase | $ 7,250 |