Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Sep. 01, 2017 | Dec. 31, 2016 | |
Entity Information [Line Items] | |||
Entity Registrant Name | Delta Natural Gas Co Inc | ||
Entity Central Index Key | 277,375 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 208,936,596 | ||
Entity Common Stock, Shares Outstanding | 7,135,373 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2017 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Revenues | |||
Regulated revenues | $ 41,795,560 | $ 41,242,094 | $ 52,681,120 |
Non-regulated revenues | 27,044,609 | 22,888,126 | 33,507,118 |
Total operating revenues | 68,840,169 | 64,130,220 | 86,188,238 |
Operating Expenses | |||
Regulated Purchased gas | 12,561,849 | 11,704,178 | 22,728,766 |
Non-regulated purchase gas | 19,980,989 | 17,621,069 | 26,713,424 |
Operation and maintenance | 15,988,178 | 13,989,510 | 14,608,835 |
Depreciation and amortization | 6,415,660 | 6,416,221 | 6,377,743 |
Taxes other than income taxes | 2,889,977 | 2,965,250 | 2,795,609 |
Total operating expenses | 57,836,653 | 52,696,228 | 73,224,377 |
Operating Income | 11,003,516 | 11,433,992 | 12,963,861 |
Other Income (Expense), Net | 205,826 | 4,124 | 25,097 |
Interest Charges | |||
Interest on long-term debt | 2,181,324 | 2,245,224 | 2,309,124 |
Other interest expense | 54,062 | 52,533 | 51,538 |
Amortization of debt expense | 227,000 | 233,500 | 240,000 |
Total interest charges | 2,462,386 | 2,531,257 | 2,600,662 |
Net Income Before Income Taxes | 8,746,956 | 8,906,859 | 10,388,296 |
Income Tax Expense | 3,230,613 | 3,377,481 | 3,892,215 |
Net Income | $ 5,516,343 | $ 5,529,378 | $ 6,496,081 |
Earnings Per Common Share (Note 11) | |||
Basic (in dollars per share) | $ 0.77 | $ 0.78 | $ 0.92 |
Diluted (in dollars per share) | 0.77 | 0.78 | 0.92 |
Dividends Declared Per Common Share (in dollars per share) | $ 1.0375 | $ 0.82 | $ 0.80 |
Regulated Operation [Member] | |||
Operating Revenues | |||
Regulated revenues | $ 41,795,000 | $ 41,242,000 | $ 52,681,000 |
Operating Expenses | |||
Regulated Purchased gas | 12,562,000 | ||
Other Income (Expense), Net | 206,000 | 4,000 | 25,000 |
Interest Charges | |||
Total interest charges | 2,415,000 | 2,486,000 | 2,551,000 |
Income Tax Expense | 2,153,000 | 3,238,000 | 3,553,000 |
Net Income | 3,754,000 | 4,982,000 | 5,748,000 |
Unregulated Operation [Member] | |||
Operating Revenues | |||
Non-regulated revenues | 27,045,000 | 22,888,000 | 33,507,000 |
Operating Expenses | |||
Non-regulated purchase gas | 19,981,000 | 17,621,000 | 26,713,000 |
Other Income (Expense), Net | 0 | 0 | 0 |
Interest Charges | |||
Total interest charges | 47,000 | 45,000 | 50,000 |
Income Tax Expense | 1,078,000 | 139,000 | 339,000 |
Net Income | $ 1,762,000 | $ 547,000 | $ 748,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Dividends Payable | $ 1,480,130 | $ 0 | $ 0 |
Cash Flows From Operating Activities | |||
Net income | 5,516,343 | 5,529,378 | 6,496,081 |
Adjustments to reconcile net income to net cash from operating activities | |||
Depreciation and amortization | 6,642,660 | 6,649,721 | 6,617,743 |
Deferred income taxes and investment tax credits | 1,346,242 | 1,193,793 | 1,449,471 |
Change in cash surrender value of officer's life insurance | (51,071) | 6,198 | (19,036) |
Share-based compensation | 292,174 | 452,230 | 1,095,051 |
Excess Tax deficiency from share-based Compensation | 42,603 | (5,508) | 9,249 |
(Increase) decrease in assets | |||
Accounts receivable | (1,335,920) | 1,091,517 | 871,270 |
Natural gas in storage | (2,152,990) | 1,344,242 | 2,491,337 |
Deferred natural gas cost | (1,423,973) | (674,077) | 724,923 |
Materials and supplies | (112,827) | (4,549) | (12,578) |
Prepayments | 1,437,116 | (1,226,279) | (363,263) |
Other assets | (283,540) | (288,867) | 225,771 |
Increase (decrease) in liabilities | |||
Accounts payable | 2,207,356 | (1,181,356) | (1,135,821) |
Accrued taxes | (47,140) | 106,856 | (80,925) |
Asset retirement obligations | (59,085) | (85,068) | 375,073 |
Other liabilities | (1,765,233) | 1,832,112 | 20,658 |
Net cash provided by operating activities | 10,252,715 | 14,740,343 | 18,765,004 |
Cash Flows From Investing Activities | |||
Capital expenditures | (8,725,635) | (6,302,666) | (9,010,876) |
Proceeds from sale of property, plant and equipment | 265,239 | 275,397 | 161,311 |
Other | (60,000) | (60,000) | (60,000) |
Net cash used in investing activities | (8,520,396) | (6,087,269) | (8,909,565) |
Cash Flows From Financing Activities | |||
Dividends on common shares | (5,913,888) | (5,822,259) | (5,639,791) |
Issuance of common shares | 619,532 | 614,518 | 532,712 |
Payment of minimum tax withholding | (266,005) | (263,044) | 0 |
Repayment of long-term debt | (1,500,000) | (1,500,000) | (1,500,000) |
Borrowings on bank line of credit | 0 | 0 | 126,430 |
Repayment of bank line of credit | 0 | 0 | (126,430) |
Net cash used in financing activities | (7,060,361) | (6,970,785) | (6,607,079) |
Net Increase in Cash and Cash Equivalents | (5,328,042) | 1,682,289 | 3,248,360 |
Cash and Cash Equivalents, Beginning of Year | 18,606,567 | 16,924,278 | 13,675,918 |
Cash and Cash Equivalents, End of Year | 13,278,525 | 18,606,567 | 16,924,278 |
Cash paid during the year for | |||
Interest | 2,240,428 | 2,298,228 | 2,369,078 |
Income taxes (net of refunds) | 2,281,475 | 2,064,005 | 3,312,944 |
Significant non-cash transactions | |||
Accrued capital expenditures | $ 374,469 | $ 157,808 | $ 207,169 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Current Assets | ||
Cash and cash equivalents | $ 13,278,525 | $ 18,606,567 |
Accounts receivable, less accumulated allowances for doubtful accounts of $301,000 and $258,000 in 2016 and 2015, respectively | 6,201,732 | 4,741,595 |
Natural gas in storage, at average cost (Note 1) | 5,442,910 | 3,289,920 |
Deferred gas costs (Notes 1 and 14) | 2,098,050 | 674,077 |
Regulatory Assets, Current | 2,468,000 | 2,689,000 |
Materials and supplies, at average cost | 676,919 | 544,342 |
Prepayments | 3,217,770 | 3,051,665 |
Total current assets | 30,915,906 | 30,908,166 |
Property, Plant and Equipment | 249,611,353 | 241,833,771 |
Less - Accumulated provision for depreciation | (109,804,512) | (104,192,898) |
Net property, plant and equipment | 139,806,841 | 137,640,873 |
Other Assets | ||
Cash surrender value of life insurance (face amount of $954,000 and $951,000 in 2016 and 2015, respectively) | 466,056 | 414,985 |
Prepaid Pension (Note 6) | 2,113,785 | 0 |
Regulatory assets (Note 1) | 15,435,233 | 18,881,126 |
Other non-current assets | 1,219,106 | 1,033,979 |
Total other assets | 19,234,180 | 20,330,090 |
Total assets | 189,956,927 | 188,879,129 |
Current Liabilities | ||
Accounts payable | 8,110,424 | 4,200,298 |
Current portion of long-term debt (Note 10) | 1,500,000 | 1,500,000 |
Accrued taxes | 1,537,535 | 1,584,675 |
Customers' deposits | 616,661 | 618,137 |
Accrued interest on debt | 106,783 | 111,825 |
Accrued vacation | 750,994 | 756,138 |
Other liabilities | 665,551 | 585,342 |
Total current liabilities | 13,287,948 | 9,356,415 |
Long-Term Debt (Note 10) | 48,929,196 | 50,422,796 |
Total liabilities | 113,461,932 | 111,152,160 |
Shareholders' Equity | ||
Common shares ($1.00 par value), 20,000,000 shares authorized; 7,087,762 and 7,026,500 shares outstanding at June 30, 2016 and June 30, 2015, respectively | 7,133,148 | 7,087,762 |
Premium on common shares | 50,072,857 | 49,472,542 |
Retained earnings | 19,288,990 | 21,166,665 |
Total shareholders' equity | 76,494,995 | 77,726,969 |
Long-Term Liabilities | ||
Deferred income taxes | 44,815,170 | 43,405,098 |
Regulatory liabilities (Note 1) | 1,135,362 | 1,138,141 |
Accrued Pension | 0 | 1,833,780 |
Asset retirement obligations (Note 4) | 4,030,786 | 3,917,585 |
Other long-term liabilities | 1,263,470 | 1,078,345 |
Total long-term liabilities | 51,244,788 | 51,372,949 |
Total liabilities and shareholders' equity | 189,956,927 | $ 188,879,129 |
Supplemental Employee Retirement Plan [Member] | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 60,000 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parenthetical - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
Current Assets | ||
Accounts receivable, allowances for doubtful accounts | $ 172,000 | $ 301,000 |
Other Assets | ||
Cash surrender value of life insurance, face amount | $ 957,000 | $ 954,000 |
Shareholders' Equity | ||
Common shares, par value (in dollars per share) | $ 1 | $ 1 |
Common shares, authorized (in shares) | 20,000,000 | 20,000,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Total | Common Shares [Member] | Premium on Common Shares [Member] | Retained Earnings [Member] |
Balance at Jun. 30, 2014 | $ 74,728,352 | $ 6,942,758 | $ 47,182,338 | $ 20,603,256 |
Net income (Loss) | 6,496,081 | 0 | 0 | 6,496,081 |
Issuance of common shares | 532,712 | 26,412 | 506,300 | 0 |
Issuance of common shares under the incentive compensation plan | 442,581 | 57,330 | 385,251 | 0 |
Share-based compensation expense | 652,470 | 0 | 652,470 | 0 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 9,249 | 0 | 9,249 | 0 |
Dividends on common shares | (5,639,791) | 0 | 0 | |
Dividends, Cash | 5,640,000 | 5,639,791 | ||
Balance at Jun. 30, 2015 | 77,221,654 | 7,026,500 | 48,735,608 | 21,459,546 |
Net income (Loss) | 5,529,378 | 0 | 0 | 5,529,378 |
Issuance of common shares | 614,518 | 28,437 | 586,081 | 0 |
Issuance of common shares under the incentive compensation plan | (263,044) | 32,825 | (295,869) | 0 |
Share-based compensation expense | 452,230 | 0 | 452,230 | 0 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | (5,508) | 0 | (5,508) | 0 |
Dividends on common shares | (5,822,259) | 0 | 0 | (5,822,259) |
Dividends, Cash | 5,822,000 | |||
Balance at Jun. 30, 2016 | 77,726,969 | 7,087,762 | 49,472,542 | 21,166,665 |
Net income (Loss) | 5,516,343 | 0 | 0 | |
Issuance of common shares | 619,532 | 22,682 | 596,850 | 0 |
Issuance of common shares under the incentive compensation plan | (266,005) | 22,704 | (288,709) | 0 |
Share-based compensation expense | 292,174 | 0 | 292,174 | 0 |
Dividends on common shares | (7,394,018) | 0 | 0 | |
Dividends, Cash | 7,394,018 | |||
Balance at Jun. 30, 2017 | $ 76,494,995 | $ 7,133,148 | $ 50,072,857 | $ 19,288,990 |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Jun. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accountng Pronouncements | Accounting Pronouncements Recently Issued Pronouncements In May, 2014, the Financial Accounting Standards Board issued guidance revising the principles and standards for revenue recognition. The guidance creates a framework for recognizing revenue to improve comparability of revenue recognition practices across entities and industries focusing on when a customer obtains control of goods or services, rather than the current risks and rewards model of recognition. The core principle of the new standard is that an entity recognizes revenue when it transfers goods or services to its customers in an amount that reflects the consideration an entity expects to be entitled to for those goods or services. The new disclosure requirements include information intended to communicate the nature, amount, timing and any uncertainty of revenue and cash flows from applicable contracts, including any significant judgments. Entities will generally be required to make more estimates and use more judgment under the new standard. The guidance is effective for our quarter ending September 30, 2018. As of June 30, 2017, we are evaluating our sources of revenue and are assessing the effect that the new guidance will have on our financial position, results of operations and cash flows. The conclusion of our assessment is contingent, in part, upon the completion of deliberations currently in progress by our industry, notably in connection with efforts to produce an accounting guide intended to be developed by the American Institute of Certified Public Accountants. In association with this undertaking, the American Institute of Certified Public Accountants formed a number of industry task forces, including a Power & Utilities Task Force (“Task Force”). Currently, the industry is working with the Task Force to address several items including 1) the evaluation of collectability from customers if a utility has regulatory mechanisms to help assure recovery of uncollected accounts from ratepayers; 2) the accounting for funds received from third parties to partially or fully reimburse the cost of construction of an asset and 3) the accounting for alternative revenue programs, such as performance-based ratemaking. Existing alternative revenue program guidance, though excluded by the Financial Accounting Standards Board in updating specific guidance associated with revenue from contracts with customers, was continued without substantial modification. It will require separate presentation of such revenues (subject to the above-noted deliberations) in the statement of comprehensive income, effective at the same time that updated guidance associated with revenue from contracts with customers becomes effective. Currently, a timeline for the resolution of these deliberations has not been established. Additionally, we are actively working with our peers in the rate-regulated natural gas industry to determine the accounting treatment for several other issues that are not expected to be addressed by the Task Force. Given the uncertainty with respect to the conclusions that might arise from these deliberations, we are currently unable to determine the effect the new guidance will have on our financial position, results of operations, cash flows, internal controls or the transition method we will utilize to adopt the new guidance. In July, 2015, the Financial Accounting Standards Board issued guidance simplifying the measurement of inventory. The guidance requires inventory to be measured at the lower of cost or net realizable value. The guidance, effective for our quarter ending September 30, 2017, is not expected to have a material impact on our results of operations, financial position and cash flows. In January, 2016, the Financial Accounting Standards Board issued guidance to improve the recognition, measurement, presentation and disclosure of financial instruments. The improvements include guidance on estimating fair value for financial instruments measured at amortized cost on the balance sheet, the classification of financial assets and liabilities on the balance sheet and reduced disclosure for the fair value of financial instruments recognized on the balance sheet at amortized cost. The guidance, effective for our quarter ending September 30, 2018, is not expected to have a material impact on our results of operations, financial position, cash flows and disclosures. In February, 2016, the Financial Accounting Standards Board issued guidance revising the principles and standards for recognizing leases. The guidance requires a lessee to recognize on the statement of financial position a liability for the lease payments and a right-of-use asset representing the lessee's right to use the underlying asset for the lease term. The recognition and measurement of lease expenses have not significantly changed from previous guidance. The guidance is effective for our quarter ending September 30, 2018 and we are evaluating the impact the guidance is expected to have on our results of operations, financial position, cash flows and disclosures. In March, 2017, the Financial Accounting Standards Board issued guidance to improve the recognition and presentation of net periodic pension cost. The guidance requires employers who sponsor defined benefit pension plans to disaggregate the service cost component of net periodic benefit cost from the other components of net periodic benefit cost in the income statement. The guidance also allows only the service cost component to be eligible for capitalization, which is a departure from current accounting guidance where all components of net periodic benefit cost are eligible for capitalization. The guidance is effective for our quarter ending September 30, 2018 and we are evaluating the impact the guidance is expected to have on our results of operations, financial position, cash flows, disclosures and internal controls. Recently Adopted Pronouncements In March, 2016, the Financial Accounting Standards Board issued guidance simplifying the accounting and disclosure requirements for share-based compensation, including income tax consequences, classification of the awards as equity or liability and classification on the statement of cash flows. The guidance is effective for our quarter ending September 30, 2017; however, we have elected early adoption. The guidance changed the accounting for excess tax benefits and deficiencies, where previously the difference in compensation cost recognized for financial reporting purposes versus the deduction on the corporate tax return was recognized as additional paid-in capital to the extent the cumulative tax benefits exceeded tax deficiencies. Effective July 1, 2016, on a prospective basis, we began recognizing the effect of vested awards as discrete items in the period in which they occur with excess tax benefits and deficiencies recognized in the Consolidated Statements of Income as an adjustment to income tax expense. We do not have any previously unrecognized excess tax benefits which require a cumulative effect adjustment upon adoption. The guidance also requires the classification of excess tax benefits and deficiencies as an operating activity on the Consolidated Statements of Cash Flows, which has been adopted retrospectively and resulted in an immaterial reclassification between financing activities and operating activities on the Consolidated Statements of Cash Flows. Entities may elect an accounting policy for forfeitures where they can either continue the current method of recognizing forfeitures based on the number of awards expected to vest or as forfeitures occur. We have elected to recognize forfeitures as they occur. The adoption of this accounting policy did not result in a cumulative effect adjustment. The threshold increased for an award to qualify for equity classification where shares are redeemed to meet statutory withholding obligations. Shares can now be redeemed up to the maximum statutory tax rates in the applicable jurisdiction, rather than the minimum statutory tax rates. The adoption of this guidance did not result in a change in classification of the award requiring a cumulative effect adjustment. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation Delta Natural Gas Company, Inc. (“Delta” or “the Company”) distributes or transports natural gas to approximately 36,000 customers. Our distribution and transportation systems are located in central and southeastern Kentucky and we own and operate an underground storage field in southeastern Kentucky. We transport natural gas to our industrial customers who purchase their natural gas in the open market. We also transport natural gas on behalf of local producers and customers not on our distribution system and extract liquids from natural gas in our storage field and our pipeline systems that are sold at market prices. We have three wholly-owned subsidiaries. Delta Resources, Inc. buys natural gas and resells it to industrial or other large use customers on Delta's system. Delgasco, Inc. buys natural gas and resells it to Delta Resources, Inc. and to customers not on Delta's system. Enpro, Inc. owns and operates natural gas production properties and undeveloped acreage. All subsidiaries of Delta are included in the consolidated financial statements. Intercompany balances and transactions have been eliminated. On February 20, 2017, we entered into an Agreement and Plan of Merger (“Merger Agreement”) with PNG Companies, LLC (“PNG”), hereinafter referred to as the “Merger”. For further information, see Note 18 of the Notes to Consolidated Financial Statements. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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. Cash Equivalents For the purposes of the Consolidated Statements of Cash Flows, all temporary cash investments with a maturity of three months or less at the date of purchase are considered cash equivalents. Property, Plant and Equipment and Depreciation Property, plant and equipment is stated at original cost, which includes materials, labor, labor related costs and an allocation of general and administrative costs. A betterment or replacement of a unit of property is accounted for as an addition of utility plant. Construction work in progress has been included in the rate base for determining customer rates, and therefore an allowance for funds used during construction has not been recorded. The cost of regulated plant retired or disposed of in the normal course of business is deducted from plant accounts and such cost, less salvage value, is charged to the accumulated provision for depreciation. Property, plant and equipment is comprised of the following major classes of assets: ($000) 2017 2016 Regulated segment Distribution, transmission and storage 219,477 214,660 General, miscellaneous and intangibles 23,578 23,145 Construction work in progress 3,902 1,422 Total regulated segment 246,957 239,227 Non-regulated segment 2,654 2,607 Total property, plant and equipment 249,611 241,834 All expenditures for maintenance and repairs of units of property are charged to the appropriate maintenance expense accounts in the month incurred. We determine the provision for depreciation using the straight-line method and by the application of rates to various classes of utility plant. The rates are based upon the estimated service lives of the properties and were equivalent to composite rates of 2.7% of average depreciable plant for 2017 , and 2.8% for 2016 and 2015 . As approved by the Kentucky Public Service Commission, we accrue asset removal costs for certain types of property through depreciation expense with a corresponding increase to regulatory liabilities on the Consolidated Balance Sheets. When this depreciable utility plant and equipment is retired any related removal costs incurred are charged against the regulatory liability. Our pipe replacement program tariff allows us to adjust our regulated rates annually to earn a return on capital incurred subsequent to our last rate case which are associated with the replacement of pipe and related facilities. The pipe replacement program is designed to additionally recover the costs associated with the mandatory retirement or relocation of facilities. Impairment of Long-Lived Assets We evaluate long-lived assets for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. The determination of whether an impairment has occurred is based on an estimate of undiscounted future cash flows attributable to the assets, as compared with the carrying value of the assets. If an impairment has occurred, the amount of the impairment recognized is determined by estimating the fair value of the assets and recording a provision for an impairment loss if the carrying value is greater than the fair value. In the opinion of management, our long-lived assets are appropriately valued in the accompanying consolidated financial statements. There were no impairments of long-lived assets during 2017 , 2016 or 2015 . Natural Gas In Storage We operate a natural gas underground storage field that we utilize to inject and store natural gas during the non-heating season, and we then withdraw natural gas during the heating season to meet our customers' needs. The potential exists for differences between actual volumes stored versus our perpetual records primarily due to differences in measurement of injections and withdrawals or the risks of natural gas escaping from the field. We periodically analyze the volumes, pressure and other data relating to the storage field in order to substantiate the natural gas inventory carried in our perpetual inventory records. The periodic analysis of the storage field data utilizes trends in the underlying data and can require multiple periods of observation to determine if differences exist. The analysis can result in adjustments to our perpetual inventory records. The natural gas in storage inventory is recorded at average cost. Regulated Revenues We bill our regulated sales of natural gas at tariff rates approved by the Kentucky Public Service Commission. Our customers are billed on a monthly basis; however, the billing cycle for certain classes of customers do not necessarily coincide with the calendar month-end. For these customers, we apply the unbilled method of accounting, where we estimate and accrue revenues applicable to customers, but not yet billed. The related natural gas costs are charged to expense. At the end of each month, natural gas service which has been rendered from the date the customer's meter was last read to the month-end is unbilled. Unbilled revenues are included in accounts receivable and unbilled natural gas costs are included in deferred natural gas costs on the accompanying Consolidated Balance Sheets. Unbilled amounts include the following: (000) 2017 2016 Unbilled revenues ($) 1,653 1,452 Unbilled natural gas costs ($) 445 319 Unbilled volumes (Mcf) 70 63 We record on-system transportation services in the period in which we transport natural gas to the end-use customer within our system. On-system transportation customers receive their natural gas supply from third-party shippers delivering natural gas into Delta’s system. We bill on-system transportation services at tariff rates, as approved by the Kentucky Public Service Commission, which include both fixed monthly charges and volumetric rates. Delta Resources utilizes Delta’s on-system transportation service and Delta recognizes revenue from Delta Resources at tariff rates, which eliminates upon consolidation. We record off-system transportation services in the period in which we transport natural gas to an interstate pipeline on behalf of third-party shippers delivering natural gas into Delta’s system. We bill o ff-system transportation services at tariff rates, as approved by the Kentucky Public Service Commission, which are volumetric rates. Delgasco utilizes Delta‘s off-system transportation service and Delta recognizes revenue from Delgasco at tariff rates, which eliminates upon consolidation. The daily volumes of natural gas delivered from third-party shippers supplying our transportation customers rarely equal the daily volumes billed to our customers, resulting in periodic transportation imbalances. These imbalances are short-term in duration, and Delta monitors the activity and regularly notifies the shippers when they have an imbalance. Transportation imbalances in turn create imbalances of the natural gas supply on Delta’s system, thus requiring Delta to purchase either more or less volumes of natural gas to meet our customers’ natural gas requirements, and they are included on the Consolidated Balance Sheets in either accounts payable or prepayments, respectively. Consistent with the regulatory treatment for our natural gas cost recovery tariff (as further discussed in Note 14 of the Notes to Consolidated Financial Statements), imbalances do not impact our results of operations, as the net impact of the imbalances offset against the regulatory asset/liability related to our natural gas cost recovery tariff. Non-Regulated Revenues Delta Resources enters into contracts whereby it is obligated to supply one-hundred percent of its customers’ natural gas requirements at either fixed or index-based rates. Delta Resources recognizes revenue in the period in which actual metered volumes are delivered to the customer. Delta Resources utilizes Delta’s on-system transportation service and records such transportation expenses at tariff rates that eliminate upon consolidation. Delgasco enters into contracts to deliver fixed quantities of natural gas to its customers at either fixed or index-based rates. Delgasco recognizes revenue based upon the period in which the customer takes possession of the natural gas. Delgasco utilizes Delta’s off-system transportation service and records such transportation expenses at tariff rates that eliminate upon consolidation. Enpro produces natural gas which supplies a portion of Delgasco’s natural gas requirements and recognizes the sale of natural gas in the period in which Delgasco takes possession of the natural gas. Revenues and related natural gas costs between Enpro and Delgasco are both within the non-regulated segment and eliminate upon consolidation. We recognize revenue from natural gas liquids in the period in which the customer takes possession of the natural gas liquids. Factors that affect revenue from the sale of natural gas liquids include the hydrocarbon content of the liquids, the market price for natural gas liquids and the volumes of natural gas liquids sold. Regulated Purchased Natural Gas Expense Our regulated natural gas rates include a natural gas cost recovery tariff approved by the Kentucky Public Service Commission which provides for a dollar-tracker that matches revenues and natural gas costs and provides eventual dollar-for-dollar recovery of all natural gas costs incurred by the regulated segment and recovery of the uncollectible natural gas cost portion of bad debt expense. We expense natural gas costs based on the amount of natural gas costs recovered through revenue. Any differences between actual natural gas costs and those natural gas costs billed are deferred and reflected in the computation of future billings to customers using the natural gas cost recovery mechanism. Excise Taxes Delta collects certain excise taxes levied by state or local governments from our customers. These taxes are accounted for on a net basis and therefore are not included as revenues in the accompanying Consolidated Statements of Income. Accounts Receivable / Allowance for Doubtful Accounts We record an allowance for doubtful accounts to reflect the expected net realizable value of accounts receivable. Accounts receivable are charged off when deemed to be uncollectible or when turned over to a collection agency to pursue. Rate Regulated Basis of Accounting We account for our regulated segment in accordance with applicable regulatory guidance. The economic effects of regulation can result in a regulated company recovering costs from customers in a period different from the period in which the costs would be charged to expense by an non-regulated enterprise. When this results, costs are deferred as assets on the Consolidated Balance Sheets (“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”). The amounts recorded as regulatory assets and regulatory liabilities are as follows: ($000) 2017 2016 Regulatory assets Current assets Deferred natural gas costs 2,098 674 Other assets Conservation/efficiency program expenses 258 243 Loss on extinguishment of debt 2,468 2,689 Asset retirement obligations 5,640 5,121 Accrued pension 7,069 10,828 Total other assets 15,435 18,881 Total regulatory assets 17,533 19,555 Regulatory liabilities Long-term liabilities Accrued cost of removal on long-lived assets 549 487 Regulatory liability for deferred income taxes 586 651 Total regulatory liabilities 1,135 1,138 All of our regulatory assets and liabilities have been approved for recovery by the Kentucky Public Service Commission and are currently being recovered or refunded through our regulated natural gas rates. In addition, the unrecovered balance of the loss on extinguishment of debt is included in rate base and, therefore, earns a return. The weighted average recovery period of the other regulatory assets which are not earning a return is 28 years . Derivatives Certain of our natural gas purchase and sale contracts qualify as derivatives. All such contracts have been designated as normal purchases and sales and as such are accounted for under the accrual basis and are not recorded at fair value in the accompanying consolidated financial statements. Marketable Securities We have a supplemental retirement benefit agreement with Glenn R. Jennings, our Chairman of the Board, President and Chief Executive Officer, that is a non-qualified deferred compensation plan. The agreement establishes an irrevocable rabbi trust, in which the assets of the trust are earmarked to pay benefits under the agreement. We have recognized a liability related to the obligation to pay these benefits to Mr. Jennings. We make discretionary contributions to the trust in order to fund the related deferred compensation liability. The assets of the trust consist of exchange traded securities and exchange traded mutual funds and are classified as trading securities. The assets are recorded at fair value on the Consolidated Balance Sheets based on observable market prices from active markets. Net realized and unrealized gains and losses are included in earnings each period to effectively offset the corresponding earnings impact associated with the change in the fair value of the deferred compensation liability to which the assets relate. Fair Value Fair value is defined as the exchange price in an orderly transaction between market participants to sell an asset or transfer a liability at the measurement date. Fair value focuses on an exit price, which is the price that would be received by us to sell an asset or paid to transfer a liability versus an entry price, which would be the price paid to acquire an asset or received to assume a liability. We determine fair value based on the following fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three levels: • Level 1 - Observable inputs consisting of quoted prices in active markets for identical assets or liabilities; • Level 2 - Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and • Level 3 - Unobservable inputs which require the reporting entity to develop its own assumptions. Although accounting standards permit entities to elect to measure many financial instruments and certain other items at fair value, we do not currently have any financial assets or financial liabilities for which this provision has been elected. However, in the future, we may elect to measure certain financial instruments at fair value in accordance with these standards. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Our financial assets and liabilities measured at fair value on a recurring basis consist of the assets of our supplemental retirement benefit trust, which are included in other non-current assets on the Consolidated Balance Sheets. Contributions to the trust are presented in other investing activities on the Consolidated Statements of Cash Flows. The assets of the trust consist of exchange traded securities and exchange traded mutual funds. The securities and mutual funds are recorded at fair value using observable market prices from active markets, which are categorized as Level 1 in the fair value hierarchy. The trust assets are as follows: ($000) 2017 2016 Money market 48 44 U.S. equity securities 539 435 Foreign equity funds 246 168 U.S. fixed income funds 269 223 Foreign fixed income funds 23 19 Absolute return strategy mutual funds 94 145 Total trust assets 1,219 1,034 The carrying amounts of our other financial instruments including cash equivalents, accounts receivable, notes receivable and accounts payable approximate their fair value. The fair value of the assets in our defined benefit retirement plan are disclosed in Note 6 of the Notes to Consolidated Financial Statements. Our Series A Notes, presented as current portion of long-term debt and long-term debt on the Consolidated Balance Sheets, are stated at historical cost, net of unamortized debt issuance costs. The fair value of our long-term debt is based on the expected future cash flows of the debt discounted using a credit adjusted risk-free rate. The credit adjusted risk-free rate for our 4.26% Series A Notes is the estimated cost to borrow a debt instrument with the same terms from a private lender at the measurement date. The fair value of our long-term debt is categorized as Level 3 in the fair value hierarchy. 2017 2016 Carrying Fair Carrying Fair ($000) Amount Value Amount Value 4.26% Series A Notes 50,429 52,978 51,923 55,324 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Jun. 30, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations Legal obligations As of June 30, 2017 and 2016 , we have accrued liabilities and related assets, net of accumulated depreciation, relative to the legal obligation to retire certain natural gas wells, storage tanks, mains and services. For asset retirement obligations related to regulated assets, accretion of the liability and depreciation of the asset retirement costs are recorded as regulatory assets, pursuant to regulatory accounting standards, as we recover the cost of removing our regulated assets through our depreciation rates. The following is a summary of our asset retirement obligations as shown on the accompanying Consolidated Balance Sheets: ($000) 2017 2016 Balance, beginning of year 3,918 3,796 Liabilities incurred 38 28 Liabilities settled (357 ) (266 ) Accretion 280 271 Revisions in estimated cash flows 152 89 Balance, end of year 4,031 3,918 We have an additional asset retirement obligation related to the retirement of wells located at our underground natural gas storage facility. Since we expect to utilize the storage facility as long as we provide natural gas to our customers, we have determined the underlying asset has an indeterminate life. Therefore, we have not recorded a liability associated with the cost to retire the wells. Non-legal obligations In accordance with established regulatory practices, we accrue costs of removal on long-lived assets through depreciation expense to the extent recovery of such costs is granted by the Kentucky Public Service Commission even though such costs do not represent legal obligations. In accordance with regulatory accounting standards, $ 549,000 and $ 487,000 of such accrued cost of removal was recorded as a regulatory liability on the accompanying Consolidated Balance Sheets as of June 30, 2017 and 2016 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We provide for income taxes on temporary differences resulting from the use of alternative methods of income and expense recognition for financial and tax reporting purposes. The differences result primarily from the use of accelerated tax depreciation methods for certain properties versus the straight-line depreciation method for financial reporting purposes, differences in capitalization thresholds for tax reporting purposes versus financial reporting purposes, differences in recognition of purchased natural gas costs and certain accruals which are not currently deductible for income tax purposes. We utilize the asset and liability method for accounting for income taxes, which requires that deferred income tax assets and liabilities be computed using tax rates that will be in effect when the book and tax temporary differences reverse. Changes in tax rates applied to accumulated deferred income taxes are not immediately recognized in operating results because of ratemaking treatment. A regulatory liability has been established to recognize the regulatory obligation to refund these excess deferred taxes through customer rates. The net deferred income tax liability is presented as non-current in deferred income taxes on the accompanying Consolidated Balance Sheets. The temporary differences which gave rise to the net accumulated deferred income tax liability for the periods are as follows: ($000) 2017 2016 Deferred Tax Liabilities Deferred natural gas cost (796 ) (256 ) Prepaid expenses (339 ) (392 ) Accelerated depreciation (39,603 ) (38,862 ) Prepaid pension (982 ) — Regulatory assets - asset retirement obligations (1,078 ) (981 ) Regulatory assets - loss on extinguishment of debt (937 ) (1,021 ) Regulatory assets - unrecognized accrued pension (2,684 ) (4,110 ) Regulatory liabilities (837 ) (837 ) Other (1,082 ) (1,084 ) Total deferred tax liabilities (48,338 ) (47,543 ) Deferred Tax Assets Bad debt reserve 65 114 Accrued pension — 516 Accrued employee benefits 783 875 Asset retirement obligations 1,468 1,425 Regulatory liabilities 1,060 1,084 Section 263(a) capitalized costs 58 32 Other 89 92 Total deferred tax assets 3,523 4,138 Net accumulated deferred income tax liability (44,815 ) (43,405 ) The components of the income tax provision are comprised of the following for the years ended June 30: ($000) 2017 2016 2015 Current Federal 1,605 1,817 1,950 State 279 366 493 Total 1,884 2,183 2,443 Deferred 1,347 1,194 1,449 Income tax expense 3,231 3,377 3,892 Reconciliation of the statutory federal income tax rate to the effective income tax rate is shown in the table below: (%) 2017 2016 2015 Statutory federal income tax rate 34.0 34.0 34.0 State income taxes, net of federal benefit 4.0 4.0 4.0 Amortization of investment tax credits — (0.1 ) (0.1 ) Other differences, net (1.1 ) — (0.4 ) Effective income tax rate 36.9 37.9 37.5 We recognize the income tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The liability for unrecognized tax benefits expected to be recognized within the next twelve months has partially offset our prepaid income taxes and been presented in prepayments on the Consolidated Balance Sheets. The liability for unrecognized tax benefits not expected to be recognized within the next twelve months has been presented in other long-term liabilities on the Consolidated Balance Sheets. Interest and penalties on tax uncertainties are classified in income tax expense in the Consolidated Statements of Income. As of June 30, 2017 and 2016, we did not have any unrecognized tax positions, which, if recognized, would impact the effective tax rate. We file income tax returns in federal and Kentucky jurisdictions. Tax years previous to June 30, 2014 and June 30, 2013 are no longer subject to examination for federal and Kentucky income taxes, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined Benefit Retirement Plan We have a trusteed, noncontributory, defined benefit retirement plan covering all eligible employees hired prior to May 9, 2008. Retirement income is based on the number of years of service and annual rates of compensation. The Company has historically made annual contributions to fund the plan adequately. Generally accepted accounting principles (“GAAP”) require employers who sponsor defined benefit retirement plans to recognize the funded status of a defined benefit retirement plan on the balance sheet and to recognize through comprehensive income the changes in the funded status in the year in which the changes occur. However, regulatory accounting standards provide that regulated entities can defer recoverable costs that would otherwise be charged to expense or equity by non-regulated entities. Current cost-of-service ratemaking in Kentucky allows recovery of net periodic benefit cost as determined under GAAP. The Kentucky Public Service Commission has been clear and consistent with its historical treatment of such rate recovery; therefore, we have recorded a regulatory asset representing the probable recovery of the portion of the change in funded status of the defined benefit retirement plan that is expected to be recognized in future net periodic benefit cost. The regulatory asset is adjusted annually as prior service cost and actuarial losses are recognized in net periodic benefit cost. Our obligations and the funded status of our plan, measured at June 30, 2017 and 2016, respectively, are as follows: ($000) 2017 2016 Change in Benefit Obligation Benefit obligation at beginning of year 31,572 28,838 Service cost 1,021 1,004 Interest cost 1,053 1,157 Actuarial (gain) loss (1,317 ) 1,517 Benefits paid (721 ) (944 ) Benefit obligation at end of year 31,608 31,572 Change in Plan Assets Fair value of plan assets at beginning of year 29,738 30,984 Actual return on plan assets 3,205 (802 ) Employer contributions 1,500 500 Benefits paid (721 ) (944 ) Fair value of plan assets at end of year 33,722 29,738 Recognized Amounts Projected benefit obligation (31,608 ) (31,572 ) Plan assets at fair value 33,722 29,738 Funded status 2,114 (1,834 ) Net amount recognized as prepaid (accrued) pension on the Consolidated Balance Sheets 2,114 (1,834 ) Items Not Yet Recognized as a Component of Net Periodic Benefit Cost Prior service cost (57 ) (144 ) Accumulated net losses 7,126 10,972 Amounts recognized as regulatory assets 7,069 10,828 The accumulated benefit obligation was $28,320,000 and $28,124,000 for 2017 and 2016 , respectively. ($000) 2017 2016 2015 Components of Net Periodic Benefit Cost Service cost 1,021 1,004 990 Interest cost 1,053 1,157 1,056 Expected return on plan assets (1,623 ) (1,636 ) (1,711 ) Amortization of unrecognized net loss 947 373 244 Amortization of prior service cost (86 ) (86 ) (86 ) Net periodic benefit cost 1,312 812 493 (%) Weighted-Average Assumptions Used to Discount rate 3.75 3.50 4.25 Rate of compensation increase 4.0 4.0 4.0 Weighted-Average Assumptions Used to Discount rate 3.5 4.25 4.25 Expected long-term return on plan assets 5.5 5.5 6.0 Rate of compensation increase 4.0 4.0 4.0 Plan Assets Our target investment allocations have been developed using an asset allocation model which weighs risk versus return of various investment indices to create a target asset allocation to maximize return subject to a moderate amount of portfolio risk. Risk tolerance is established through careful consideration of plan liabilities, plan funded status and corporate financial condition. The investment portfolios contain a diversified blend of equity and fixed income investments. Our target investment allocations are approximately 65% equity investments and 35% fixed income investments. Our equity investment target allocations are heavily weighted toward domestic equity securities, with allocations to domestic real estate securities and foreign equity securities for the purposes of diversification. Fixed income securities primarily include U.S. government obligations and corporate debt securities. For additional diversification, we invest in absolute return strategy mutual funds, which include both equity and fixed income securities, with the objective of providing a return greater than inflation. The plan has amended its investment policy to allow for liability driven investments which, over time, will match a portion of the plan's liability with the underlying assets. We regularly review our asset allocation and periodically rebalance our investments to our targeted allocations as appropriate. The assets of the plan are comprised of investments in individual securities and mutual funds. Target Actual Allocations (%) Allocations 2017 2016 Asset Class Cash and cash equivalents 3 4 3 Equity Securities U.S. equity securities 44 34 35 Foreign equity securities 21 17 17 65 51 52 Fixed Income Securities U. S. fixed income security 13 23 21 Foreign fixed income security 2 4 2 15 27 23 Other Securities Absolute return strategy mutual funds 7 10 14 Real estate investment trusts 10 8 8 17 18 22 100 100 100 Individual exchange traded equity securities, exchange traded mutual funds and treasury securities are categorized as Level 1 in the fair value hierarchy as the fair value of the investments is determined based on the quoted market price of each investment. Mutual funds are categorized based on their primary investment strategy. The respective level within the fair value hierarchy is determined as described in Note 1 of the Notes to Consolidated Financial Statements. Corporate bonds, municipal bonds and U.S. agency securities are valued based on a calculation using interest rate curves and credit spreads applied to the terms of the debt (maturity and coupon rate) supported by observable transactions and are categorized as Level 2 in the fair value hierarchy. The following represents the fair value of the plan assets: ($000) 2017 Level 1 Level 2 Level 3 Asset Class Cash 1,169 1,169 — — Equity Securities U.S. equity securities 11,293 11,293 — — Foreign equity securities 5,658 5,658 — — 16,951 16,951 — — Fixed Income Securities U.S. treasury securities 1,301 1,301 — — U.S. corporate bonds 1,664 — 1,664 — High yield funds 4,418 4,418 — — Foreign bond funds 1,326 1,326 — — Other 636 — 636 — 9,345 7,045 2,300 — Other Absolute return strategy mutual funds 3,517 3,517 — — Real estate investment trusts and master-limited partnerships 2,740 2,153 587 — 6,257 5,670 587 — Total investments at fair value 33,722 30,835 2,887 — ($000) 2016 Level 1 Level 2 Level 3 Asset Class Cash 807 807 — — Equity Securities U.S. equity securities 10,355 10,355 — — Foreign equity securities 4,952 4,952 — — 15,307 15,307 — — Fixed Income Securities U.S. treasury securities 387 387 — — U.S. corporate bonds 990 — 990 — High yield funds 4,397 4,397 — — Foreign bond funds 624 624 — — Other 680 — 680 — 7,078 5,408 1,670 — Other Absolute return strategy mutual funds 4,300 4,300 — — Real estate investment trusts and master-limited partnerships 2,246 2,084 162 — 6,546 6,384 162 — Total investments at fair value 29,738 27,906 1,832 — We determined the expected long-term rate of return for plan assets with input from plan actuaries and investment consultants based upon many factors including asset allocations, historical asset returns and expected future market conditions. The discount rates used by the Company for valuing pension liabilities are based on a review of high-quality corporate bond yields with maturities approximating the remaining life of the projected benefit obligations. We made $1,500,000 in discretionary contributions to the defined benefit retirement plan in fiscal 2017 . In August, 2017, we made a $500,000 discretionary contribution to the defined benefit retirement plan. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: ($000) 2018 3,211 2019 1,699 2020 1,281 2021 1,176 2022 1,375 2023 - 2027 9,035 Effective May 9, 2008, any employees hired on and after that date were not eligible to participate in our defined benefit retirement plan. Freezing the defined benefit retirement plan for new entrants did not impact the level of benefits for existing participants. We do not provide postretirement or postemployment benefits other than the defined benefit retirement plan for retired employees and the supplemental retirement agreement described below. Employee Savings Plan We have an employee savings plan under which eligible employees may elect to contribute a portion of their annual compensation up to the maximum amount permitted by law. The Company matches 100% of the employee's contribution up to a maximum company contribution of 4% of the employee's annual compensation. Employees hired after May 9, 2008, who are not eligible to participate in the defined benefit retirement plan, annually receive an additional 4% non-elective contribution into their employee savings plan account. Company contributions are discretionary and subject to change with approval from our Board of Directors. For 2017 , 2016 and 2015 , our employee savings plan expense was $396,000 , $379,000 and $359,000 , respectively. Supplemental Retirement Agreement We sponsor a nonqualified defined contribution supplemental retirement agreement for Glenn R. Jennings, Delta's Chairman of the Board, President and Chief Executive Officer. Delta makes discretionary contributions into an irrevocable trust until Mr. Jennings' retirement. At retirement, the trustee will make annual payments of $100,000 to Mr. Jennings until the trust is depleted. For 2017, 2016 and 2015, Delta contributed $60,000 each year to the trust. As of June 30, 2017 and 2016 , the irrevocable trust assets are $1,219,000 and $1,034,000 , respectively. These amounts are included in other non-current assets on the accompanying Consolidated Balance Sheets. Liabilities, in corresponding amounts, are included in other long-term liabilities on the accompanying Consolidated Balance Sheets. |
Dividend Reinvestment and Stock
Dividend Reinvestment and Stock Purchase Plan | 12 Months Ended |
Jun. 30, 2017 | |
Dividend Reinvestment and Stock Purchase Plan [Abstract] | |
Dividend Reinvestment and Stock Purchase Plan | Dividend Reinvestment and Stock Purchase Plan Our Dividend Reinvestment and Stock Purchase Plan (“Reinvestment Plan”) provides that shareholders of record can reinvest dividends and also make limited additional investments of up to $50,000 per year in shares of common stock of the Company. Under the Reinvestment Plan we issued 22,682 , 28,437 and 26,412 shares in 2017 , 2016 and 2015 , respectively. We registered 400,000 shares for issuance under the Reinvestment Plan in 2006 , and as of June 30, 2017 there were approximately 15,000 shares available for issuance. The Reinvestment Plan was terminated effective June 30, 2017. |
Risk Management and Derivative
Risk Management and Derivative Instruments | 12 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Risk Management and Derivative Instruments | Risk Management and Derivative Instruments To varying degrees, our regulated and non-regulated segments are exposed to commodity price risk. We purchase our natural gas supply through a combination of requirements contracts with no minimum purchase obligations, monthly spot purchase contracts and forward purchase contracts. We mitigate price risk related to the sale of natural gas by efforts to balance supply and demand. For our regulated segment, we utilize requirements contracts, spot purchase contracts and our underground storage to meet our regulated customers' natural gas requirements, all of which have minimal price risk because we are permitted to pass these natural gas costs on to our regulated customers through our natural gas cost recovery tariff. None of our natural gas contracts are accounted for using the fair value method of accounting. While some of our natural gas purchase contracts and natural gas sales contracts meet the definition of a derivative, we have designated these contracts as normal purchases and normal sales. |
Notes Payable
Notes Payable | 12 Months Ended |
Jun. 30, 2017 | |
Notes Payable [Abstract] | |
Notes Payable | Notes Payable The current bank line of credit with Branch Banking and Trust Company permits borrowings up to $40,000,000 , all of which was available as of June 30, 2017 and June 30, 2016 . During 2017 and 2016, we did not have any borrowing on our bank line of credit. The bank line of credit extends through June 30, 2019 , but will be terminated upon the closing of the Merger. The interest rate on the used line of credit is the London Interbank Offered Rate plus 1.075% . The annual cost of the unused bank line of credit is 0.125% . Our most restrictive covenants are discussed in Note 10 of the Notes to Consolidated Financial Statements. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Our Series A Notes are unsecured, bear interest at a rate of 4.26% per annum, which is payable quarterly, and mature on December 20, 2031. We are required to make an annual $1,500,000 principal payment on the Series A Notes each December. The following table summarizes the contractual maturities of our Series A Notes by fiscal year: ($000) 2018 1,500 2019 1,500 2020 1,500 2021 1,500 Thereafter 44,500 Total maturing debt 50,500 Any additional prepayment of principal by the Company may be subject to a prepayment premium which varies depending on the yields of United States Treasury securities with a maturity equal to the remaining average life of the Series A Notes. We amortize debt issuance expenses over the life of the related debt using the effective interest method. As of June 30, 2017 and 2016, $71,000 and $77,000 of debt issuance costs, respectively, were reflected as an adjustment to the carrying amount of our long-term debt on the accompanying Consolidated Balance Sheets. As of June 30, 2017 and 2016, we had a loss on extinguishment of debt of $2,468,000 and $2,689,000 , respectively, which has been deferred as a regulatory asset and is being amortized over the term of the debt, as further discussed in Note 1 of the Notes to Consolidated Financial Statements. With our bank line of credit and Series A Notes, we have agreed to certain financial and other covenants. Noncompliance with these covenants can make the obligations immediately due and payable. Our financial covenants include covenants related to our tangible net worth, total debt to capitalization ratio and fixed charge ratio. Additionally, the Company may not pay aggregate dividends on its capital stock (plus amounts paid in redemption of its capital stock) in excess of the sum of $15,000,000 plus the Company's cumulative earnings after September 30, 2011 adjusted for certain unusual or non-recurring items. We believe we were in compliance with the financial covenants under our bank line of credit and 4.26% Series A Notes for all periods presented in the Consolidated Financial Statements. Furthermore, the agreement governing our 4.26% Series A Notes contains a cross-default provision which provides that we will be in default under the 4.26% Series A Notes if we are in default on any other outstanding indebtedness that exceeds $2,500,000 . Similarly, the loan agreement governing the bank line of credit contains a cross-default provision which provides that we will be in default under the bank line of credit if we are in default under our 4.26% Series A Notes and fail to cure the default within ten days of notice from the bank. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following table sets forth the computation of basic and diluted earnings per common share: 2017 2016 2015 Numerator - Basic and Diluted ($000) Net income 5,516 5,529 6,496 Dividends declared (7,394 ) (5,822 ) (5,640 ) Undistributed earnings (loss) (a) (1,878 ) (293 ) 856 Allocated to common shares: Undistributed earnings (loss) (a) (1,878 ) (293 ) 851 Dividends declared (b) 7,391 5,798 5,609 Earnings allocated to common shares 5,513 5,505 6,460 Denominator - Basic and Diluted Weighted average common shares (c) 7,118,170 7,066,925 7,002,694 Earnings per Common Share - Basic and Diluted ($) 0.77 0.78 0.92 (a) Percentage allocated to common shares: Weighted average: Common shares outstanding 7,118,170 7,066,925 7,002,694 Unvested participating shares outstanding (d) — — 45,500 Total 7,118,170 7,066,925 7,048,194 Percentage allocated to common shares 100.0 % 100.0 % 99.4 % Undistributed earnings (loss) ($000) (1,878 ) (293 ) 856 Allocated to common shares (1,878 ) (293 ) 851 (b) Represents dividends paid on common shares, exclusive of unvested participating shares. (c) Under our Incentive Compensation Plan, recipients of performance share awards receive unvested non-participating shares, as further discussed in Note 16 of the Notes to Consolidated Financial Statements. Unvested non-participating shares become dilutive in the interim quarter-end in which the performance objective is met. If the performance objective continues to be met through the end of the performance period, these shares become unvested participating shares as of the fiscal year-end, as further discussed below in Note (c). The weighted average number of unvested non-participating shares outstanding during a period is included in the diluted earnings per common share calculation using the treasury stock method, unless the effect of including such shares would be antidilutive. There were no unvested non-participating shares outstanding as of June 30, 2017, 2016 and 2015. (d) Certain awards under our shareholder approved incentive compensation plan, as further discussed in Note 16 of the Notes to Consolidated Financial Statements, provide the recipients of the awards all the rights of a shareholder of Delta including the right to dividends declared on common shares. Any unvested shares which are participating in dividends are considered participating securities and are included in our computation of basic and diluted earnings per share using the two-class method unless the effect of including such shares would be antidilutive. As of June 30, 2017 and 2016, there were 4,000 and 28,000 participating shares outstanding, respectively, which were excluded from the computation of earnings allocated to common shares, as the holders of the unvested participating shares do not have a contractual obligation to share in losses. There were no antidilutive shares in 2015. There were 4,000 , 28,000 and 65,000 unvested participating shares outstanding as of June 30, 2017 , 2016 and 2015, respectively. |
Operating Leases
Operating Leases | 12 Months Ended |
Jun. 30, 2017 | |
Leases [Abstract] | |
Operating Leases | Operating Leases We have no non-cancellable operating leases. Our operating leases relate primarily to well and compressor station site leases and are cancellable at our option. Rental expense under operating leases was $68,000 , $78,000 and $69,000 for the years ended June 30, 2017 , 2016 and 2015 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We have entered into an employment agreement with our Chairman of the Board, President and Chief Executive Officer and change in control agreements with our other four officers. The agreements expire or may be terminated at various times. The agreements provide for continuing monthly payments and the continuation of specified benefits over varying periods following defined changes in ownership of the Company if the officer is either terminated without cause during the term of the agreement or the officer terminates his employment because the officer cannot in good faith effectively carry out his duties. In the event all of these agreements were exercised in the form of lump sum payments, approximately $4.7 million of wages would be paid in addition to continuation of specified benefits for up to five years. Additionally, the agreements provide for a reimbursement of excise taxes levied on such payments and a gross-up of income taxes attributable to the reimbursement. If all agreements were exercised by the officers, based on the $30.50 per share price offered by PNG, approximately $ 14.7 million would be paid, which includes wages, benefits, unvested shares awarded under our Incentive Compensation Plan and any tax gross-ups. Jacob Halberstam, et al v. Delta Natural Gas Company, Inc., et al . Clark Circuit Court, Kentucky. The plaintiff filed this complaint on April 13, 2017, on behalf of himself and all Delta shareholders against Delta, its directors and PNG and Merger Sub. The plaintiff alleges that the defendants breached fiduciary duties to the Delta shareholders and aided and abetted breaches of fiduciary duties in connection with the Merger Agreement, under the terms of which Delta would be merged with and into Merger Sub, with Delta being the surviving corporation and becoming a wholly owned subsidiary of PNG. The plaintiff seeks to enjoin the consummation of the proposed transaction or, if the proposed transaction is closed, damages from Delta’s directors. Paul Parshall, et al. v. Delta Natural Gas Company, Inc. , et al, United States District Court for the Eastern District of Kentucky at Lexington. The plaintiff filed this complaint on April 28, 2017, on behalf of himself and all Delta shareholders against Delta, its directors, PNG, Merger Sub and SteelRiver Infrastructure Fund North America, LP. The plaintiff alleges that the defendants violated Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 in connection with the Merger Agreement. The complaint has been dismissed without prejudice. Judy Cole, et al. v. Delta Natural Gas Company, Inc., et al . Clark Circuit Court, Kentucky. The plaintiff filed this complaint on May 5, 2017, on behalf of herself and all Delta shareholders against Delta and its directors. The plaintiff alleges that the defendants breached fiduciary duties to the Delta shareholders in connection with the Merger Agreement and the proxy statement sent to Delta shareholders describing the transaction. The plaintiff seeks to enjoin the consummation of the proposed transaction. Counsel for Delta, counsel for PNG, Merger Sub and SteelRiver Infrastructure Fund North America, LP and counsel for the plaintiffs in the three lawsuits described above have entered a confidential memorandum of understanding dated May 25, 2017, under the terms of which the litigation will be settled, subject to court approval, with Delta making additional disclosures to its shareholders, which has been done. It is anticipated that the plaintiffs will seek an order from the Clark Circuit Court requiring Delta to pay attorneys’ fees and expenses of the plaintiffs. The amount of the anticipated fee request and any amount of settlement is unknown. During 2017, no expense has been recognized related to the fee request or settlement in the Consolidated Statement of Income. Delta is insured for such litigation, subject to a $1 million deductible. We are not a party to any other material pending legal proceedings that are expected to have a materially adverse impact on our liquidity, financial position or results of operations. In connection with the Merger, we retained Tudor Pickering, Holt & Co. Advisors, LLC (“TPH”) to act as financial advisors in connection with the transaction contemplated by the Merger Agreement and $1,853,000 is payable to TPH upon closing of the Merger. Additionally, upon closing of the Merger, Delta is required to purchase runoff insurance coverage for six years which will cost an estimated $158,000 . During 2017, none of these amounts have been recognized as an expense in the Consolidated Statement of Income. We have entered into forward purchase agreements for a portion of our non-regulated segment's natural gas purchases through June, 2019 . The agreements require us to purchase minimum amounts of natural gas throughout the term of the agreements. The agreements are established in the normal course of business to ensure adequate natural gas supply to meet our non-regulated customers' natural gas requirements. The agreements have aggregate minimum purchase obligations of $350,000 and $199,000 for our fiscal years ending June 30, 2018 and 2019, respectively. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Jun. 30, 2017 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Regulatory Matters The Kentucky Public Service Commission exercises regulatory authority over our retail natural gas distribution and transportation services, which includes approval of our regulated rates and tariffs. We monitor our need to file requests with them for a general rate increase for our natural gas distribution and transportation services. The Kentucky Public Service Commission has historically utilized cost-of-service ratemaking where our base rates are established to recover normal operating expenses, exclusive of natural gas costs, and a reasonable rate of return on our rate base. Rate base consists primarily of our regulated segment's property, plant and equipment, natural gas in storage and unamortized debt expense offset by accumulated depreciation and certain deferred income taxes. Our regulated rates were most recently adjusted in our 2010 rate case and became effective in October, 2010 . We do not have any matters before the Kentucky Public Service Commission which would have a material impact on our results of operations, financial position or cash flows. Our pipe replacement program tariff allows us to adjust rates annually to earn a return on capital expenditures incurred subsequent to our last rate case which are associated with the replacement of pipe and related facilities. The pipe replacement program is designed to additionally recover the costs associated with the mandatory retirement or relocation of facilities. Our natural gas cost recovery tariff permits us to adjust the rates charged to our customers to reflect changes in our natural gas supply costs and any bad debt expense related to natural gas cost. Although we are not required to file a general rate case to adjust rates pursuant to the natural gas cost recovery tariff, we are required to make quarterly filings with the Kentucky Public Service Commission. Under and over-recovered natural gas costs are collected or refunded through adjustments to customer bills beginning three months after the end of the quarter in which the actual natural gas costs were incurred. Our weather normalization tariff provides for the adjustment of our rates to residential and small non-residential customers to reflect variations from thirty- year average weather for our December through April billing cycles. These adjustments to customer bills are made on a real time basis such that there is no lag in collecting from or refunding to customers the related dollar amounts. Additionally, we have a conservation and efficiency program tariff for our residential customers, which allows us to adjust our rates for activities performed through the program. Through this program, we perform energy audits, promote conservation awareness and provide rebates on the purchase of certain high-efficiency appliances. The program helps to align our interests with our residential customers' interests by reimbursing us for the gross margins on lost sales due to operating the program and providing incentives for us to promote customer conservation. Our rates are adjusted annually to recover the costs incurred under these programs, the reimbursement of margins on lost sales and the incentives provided to us. In addition to regulation by the Kentucky Public Service Commission, we may obtain non-exclusive franchises from the cities in which we operate authorizing us to place our facilities in the streets and public grounds. No utility may obtain a franchise until it has obtained approval from the Kentucky Public Service Commission to bid on such franchise. We hold franchises in seven of the cities we serve, and we continue to operate under the conditions of expired franchises in fifteen other cities we serve. In the other cities and areas we serve, the areas served do not have governmental organizations authorized to grant franchises or the city governments do not require a franchise. We attempt to acquire or reacquire franchises whenever feasible. Without a franchise, a city could require us to cease our occupation of the streets and public grounds or prohibit us from extending our facilities into any new area of that city. To date, the absence of a franchise has not adversely affected our operations. On March 17, 2017, we and PNG filed a joint application with the Kentucky Public Service Commission seeking regulatory approval of the Merger, as further discussed in Note 18 of the Notes to Consolidated Financial Statements. On August 15, 2017, the Kentucky Public Service Commission issued an order granting unconditional approval of the Merger and we anticipate closing to occur by September 30, 2017. |
Operating Segments
Operating Segments | 12 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our Company has two reportable segments: a regulated segment and a non-regulated segment. Our regulated segment includes our natural gas distribution and transportation services, which are regulated by the Kentucky Public Service Commission. Our non-regulated segment includes our natural gas marking activities and the sales of natural gas liquids. The non-regulated segment produces a portion of the natural gas it markets to its customers. The division of these segments into separate revenue generating components is based upon regulation, products and services. Both segments operate in the single geographic area of central and southeastern Kentucky. Our chief operating decision maker is our Chief Executive Officer. We evaluate performance based on net income of the respective segment. In our non-regulated segment, two customers each provided more than 5% of our operating revenues for 2017. Our largest customer provided approximately $15,889,000 , $11,555,000 and $17,852,000 of non-regulated revenues during 2017, 2016 and 2015, respectively. Our second largest customer provided approximately $4,744,000 , $5,656,000 and $7,127,000 of non-regulated revenues during 2017 , 2016 and 2015 , respectively. There is no assurance that revenues from these customers will continue at these levels. Our regulated segment purchased approximately 99% of its natural gas from CenterPoint Energy Services and Midwest Energy Services in 2017, 2016 and 2015. Our non-regulated segment purchased approximately 95% of its natural gas from CenterPoint Energy Services and Midwest Energy Services in 2017. We purchased approximately 99% of our natural gas from CenterPoint Energy Services and Midwest Energy Services in 2016 and 2015. The reportable segments follow the accounting policies as described in the Summary of Significant Accounting Policies in Note 1 of the Notes to Consolidated Financial Statements. Intersegment revenues and expenses represent the natural gas transportation costs from the regulated segment to the non-regulated segment at our tariff rates. Operating expenses, taxes and interest are allocated to the non-regulated segment. Segment information is shown in the following table: ($000) 2017 2016 2015 Operating Revenues Regulated External customers 41,795 41,242 52,681 Intersegment 3,446 3,591 3,869 Total Regulated 45,241 44,833 56,550 Non-regulated External customers 27,045 22,888 33,507 Eliminations for intersegment (3,446 ) (3,591 ) (3,869 ) Total operating revenues 68,840 64,130 86,188 Operating Expenses Regulated Purchased natural gas 12,562 11,704 22,729 Depreciation and amortization 6,323 6,328 6,293 Other 18,240 16,033 15,819 Total regulated 37,125 34,065 44,841 Non-regulated Purchased natural gas 19,981 17,621 26,713 Depreciation and amortization 93 88 84 Other 4,084 4,513 5,455 Total non-regulated 24,158 22,222 32,252 Eliminations for intersegment (3,446 ) (3,591 ) (3,869 ) Total operating expenses 57,837 52,696 73,224 Other Income Regulated 206 4 25 Non-regulated — — — Total other income 206 4 25 Interest Charges Regulated 2,415 2,486 2,551 Non-regulated 47 45 50 Total interest charges 2,462 2,531 2,601 Income Tax Expense Regulated 2,153 3,238 3,553 Non-regulated 1,078 139 339 Total income tax expense 3,231 3,377 3,892 Net Income Regulated 3,754 4,982 5,748 Non-regulated 1,762 547 748 Total net income 5,516 5,529 6,496 Assets Regulated 184,843 185,634 183,482 Non-regulated 5,114 3,245 4,229 Total assets 189,957 188,879 187,711 Capital Expenditures Regulated 8,679 6,293 8,991 Non-regulated 47 10 20 Total capital expenditures 8,726 6,303 9,011 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation We have a shareholder approved incentive compensation plan (the “Plan”) that provides for compensation payable in shares of our common stock. The Plan is administered by our Corporate Governance and Compensation Committee of our Board of Directors, which has complete discretion in determining our employees, officers and outside directors who shall be eligible to participate in the Plan, as well as the type, amount, terms and conditions of each award, subject to the limitations of the Plan. The number of shares of our common stock that may be issued pursuant to the Plan may not exceed in the aggregate 1,000,000 shares. As of June 30, 2017 , approximately 751,000 shares of common stock were available for issuance under the Plan, subject to the limitations imposed by our Corporate Governance Guidelines. Shares of common stock may be available from authorized but unissued shares, shares reacquired by us or shares that we purchase in the open market. Upon vesting, the Plan allows for withholding a number of shares equal in fair value to the taxes required to satisfy statutory withholding requirements. The following table sets forth the number of shares granted by fiscal year: 2017 2016 2015 Shares Grant Date Fair Value (000’s) Shares Grant Date Fair Value (000’s) Shares Grant Date Fair Value (000’s) Stock Awards 9,600 $ 247 8,400 $ 169 22,000 443 Performance Shares 41,000 1,056 39,000 787 39,000 773 Total 50,600 $ 1,303 47,400 $ 956 61,000 1,216 Compensation expense for share-based compensation is recorded in the non-regulated segment in operation and maintenance expense in the Consolidated Statements of Income based on the fair value of the awards at the grant date and is amortized over the requisite service period. Fair value is the closing price of our common shares at the grant date. The grant date is the date at which our commitment to issue the share-based awards arises, which is generally when the award is approved and the terms of the awards are communicated to the employee or director. We initially recognize expense for our performance shares when it is probable that any stipulated performance criteria will be met. Forfeitures of awards are recognized as they occur. The following table sets forth our share-based compensation expense by fiscal year: ($000) 2017 2016 2015 Stock Awards 247 169 443 Performance Shares 45 283 652 Total 292 452 1,095 Stock Awards In 2017 , 2016 and 2015, common stock was awarded to Delta's outside directors as the equity component of their compensation and in 2015 common stock was additionally awarded to virtually all Delta employees. The recipients vested in the awards shortly after the awards were granted, but during the time between the grant dates and the vesting dates the shares awarded were not transferable by the holders. Once the shares were vested, the shares received under the stock awards were immediately transferable. Performance Shares In 2017 , 2016 and 2015, performance shares were awarded to the Company's executive officers. The performance shares vest only if the performance objectives of the awards are met, which are based on the Company's earnings per common share for the fiscal year in which the performance shares are awarded, before any cash bonuses or share-based compensation. Upon satisfaction of the performance objectives, unvested shares are issued to the recipients and vest in one-third increments each August 31 subsequent to achieving the performance objectives as long as the recipients are employees throughout each such service period. Unvested shares of executive officers, while still employed by the Company, will fully vest upon them attaining the age of sixty-seven. The recipients of the awards also become vested as a result of certain events such as death or disability of the holders. The unvested shares have both dividend participation rights and voting rights during the remaining terms of the awards. Holders of performance shares may not sell, transfer or pledge their shares until the shares vest. The performance objectives for the performance shares awarded in 2017 and 2016 were not satisfied and the awards were forfeited. Performance objectives for the performance shares awarded in 2015 were met and 4,000 of these shares remain unvested as of June 30, 2017 . The Company will recognize the remaining $4,000 of expense associated with these shares in 2018. Our performance shares have graded vesting schedules, and each separate annual vesting tranche is treated as a separate award for expense recognition. Compensation expense is amortized over the vesting period of the individual awards based on the probable outcome of meeting the performance objectives. Since the performance condition has been satisfied for the shares granted in 2015, the holder of performance shares will have both dividend participation rights and voting rights during the remaining term of the awards. The holder becomes vested as a result of certain events such as death or disability of the holder. Subject to the satisfaction of the performance condition, the weighted average expected remaining vesting period at June 30, 2017 is 2 months . The following summarizes the activity for performance shares: Performance shares Number of shares Weighted-average grant date fair value ($ per share) Unvested shares at June 30, 2016 28,000 20.15 Granted (a) 41,000 25.75 Vested (24,000 ) 20.21 Forfeited (41,000 ) 25.75 Unvested shares at June 30, 2017 4,000 19.82 (a) Represents the maximum number of shares which could be issued based on achieving the performance criteria. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jun. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The quarterly data reflects, in the opinion of management, all normal recurring adjustments necessary to present fairly the results for the interim periods. ($000, except per share amounts) Quarter Ended Operating Income (Loss) Net Income Basic and Diluted Earnings (Loss) per Common Share Fiscal 2017 September 30 10,508 (260 ) (458 ) (.06 ) December 31 18,937 4,534 2,444 .34 March 31 26,787 6,993 4,021 .56 June 30 12,608 (263 ) (491 ) (.07 ) Fiscal 2016 September 30 10,393 (133 ) (524 ) (.08 ) December 31 16,673 3,478 1,803 .25 March 31 26,202 7,084 3,983 .56 June 30 10,861 1,004 267 .05 |
Merger with PNG Companies, LLC
Merger with PNG Companies, LLC (Notes) | 12 Months Ended |
Jun. 30, 2017 | |
Business Acquisition [Line Items] | |
Business Combination Disclosure [Text Block] | Merger with PNG Companies, LLC On February 20, 2017, we entered into a Merger Agreement with PNG and Drake Merger Sub Inc. (“Merger Sub”), a new wholly owned subsidiary of PNG. A special meeting of shareholders was held on June 1, 2017 where shareholders voted and approved the Merger and on August 15, 2017, the Kentucky Public Service Commission issued an order granting unconditional approval of the Merger. The Merger Agreement provides for the merger of Merger Sub with and into Delta, with Delta surviving as a wholly owned subsidiary of PNG. At the effective time of the Merger, subject to customary closing conditions, each share of Delta common stock issued and outstanding immediately prior to the closing will be converted automatically into the right to receive $30.50 in cash per share, without interest, less any applicable withholding taxes. Upon consummation of the Merger, Delta common stock will be delisted from NASDAQ and the bank line of credit will be terminated. We anticipate closing to occur by September 30, 2017. Subsequent to closing of the Merger, a stub period dividend will be paid to Delta’s shareholders of record immediately prior to closing which is a prorated quarterly dividend calculated in accordance with the terms of the Merger Agreement. In connection with this transaction, in 2017 we incurred $1,612,000 of Merger-related expenses for costs paid to outside parties, which are reflected in operation and maintenance in the Consolidated Statement of Income. This amount does not include the cost of company personnel participating in Merger-related activities. Refer to Note 13 of the Notes to Consolidated Financial Statements for a discussion of litigation related to the Merger. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation Delta Natural Gas Company, Inc. (“Delta” or “the Company”) distributes or transports natural gas to approximately 36,000 customers. Our distribution and transportation systems are located in central and southeastern Kentucky and we own and operate an underground storage field in southeastern Kentucky. We transport natural gas to our industrial customers who purchase their natural gas in the open market. We also transport natural gas on behalf of local producers and customers not on our distribution system and extract liquids from natural gas in our storage field and our pipeline systems that are sold at market prices. We have three wholly-owned subsidiaries. Delta Resources, Inc. buys natural gas and resells it to industrial or other large use customers on Delta's system. Delgasco, Inc. buys natural gas and resells it to Delta Resources, Inc. and to customers not on Delta's system. Enpro, Inc. owns and operates natural gas production properties and undeveloped acreage. All subsidiaries of Delta are included in the consolidated financial statements. Intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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. |
Cash Equivalents | Cash Equivalents For the purposes of the Consolidated Statements of Cash Flows, all temporary cash investments with a maturity of three months or less at the date of purchase are considered cash equivalents. |
Property, Plant and Equipment | Property, Plant and Equipment and Depreciation Property, plant and equipment is stated at original cost, which includes materials, labor, labor related costs and an allocation of general and administrative costs. A betterment or replacement of a unit of property is accounted for as an addition of utility plant. Construction work in progress has been included in the rate base for determining customer rates, and therefore an allowance for funds used during construction has not been recorded. The cost of regulated plant retired or disposed of in the normal course of business is deducted from plant accounts and such cost, less salvage value, is charged to the accumulated provision for depreciation. Property, plant and equipment is comprised of the following major classes of assets: ($000) 2017 2016 Regulated segment Distribution, transmission and storage 219,477 214,660 General, miscellaneous and intangibles 23,578 23,145 Construction work in progress 3,902 1,422 Total regulated segment 246,957 239,227 Non-regulated segment 2,654 2,607 Total property, plant and equipment 249,611 241,834 All expenditures for maintenance and repairs of units of property are charged to the appropriate maintenance expense accounts in the month incurred. |
Depreciation | We determine the provision for depreciation using the straight-line method and by the application of rates to various classes of utility plant. The rates are based upon the estimated service lives of the properties and were equivalent to composite rates of 2.7% of average depreciable plant for 2017 , and 2.8% for 2016 and 2015 . As approved by the Kentucky Public Service Commission, we accrue asset removal costs for certain types of property through depreciation expense with a corresponding increase to regulatory liabilities on the Consolidated Balance Sheets. When this depreciable utility plant and equipment is retired any related removal costs incurred are charged against the regulatory liability. Our pipe replacement program tariff allows us to adjust our regulated rates annually to earn a return on capital incurred subsequent to our last rate case which are associated with the replacement of pipe and related facilities. The pipe replacement program is designed to additionally recover the costs associated with the mandatory retirement or relocation of facilities. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We evaluate long-lived assets for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. The determination of whether an impairment has occurred is based on an estimate of undiscounted future cash flows attributable to the assets, as compared with the carrying value of the assets. If an impairment has occurred, the amount of the impairment recognized is determined by estimating the fair value of the assets and recording a provision for an impairment loss if the carrying value is greater than the fair value. In the opinion of management, our long-lived assets are appropriately valued in the accompanying consolidated financial statements. There were no impairments of long-lived assets during 2017 , 2016 or 2015 . |
Gas in Storage [Policy Text Block] | Natural Gas In Storage We operate a natural gas underground storage field that we utilize to inject and store natural gas during the non-heating season, and we then withdraw natural gas during the heating season to meet our customers' needs. The potential exists for differences between actual volumes stored versus our perpetual records primarily due to differences in measurement of injections and withdrawals or the risks of natural gas escaping from the field. We periodically analyze the volumes, pressure and other data relating to the storage field in order to substantiate the natural gas inventory carried in our perpetual inventory records. The periodic analysis of the storage field data utilizes trends in the underlying data and can require multiple periods of observation to determine if differences exist. The analysis can result in adjustments to our perpetual inventory records. The natural gas in storage inventory is recorded at average cost. |
Excise Taxes | Excise Taxes Delta collects certain excise taxes levied by state or local governments from our customers. These taxes are accounted for on a net basis and therefore are not included as revenues in the accompanying Consolidated Statements of Income. |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Accounts Receivable / Allowance for Doubtful Accounts We record an allowance for doubtful accounts to reflect the expected net realizable value of accounts receivable. Accounts receivable are charged off when deemed to be uncollectible or when turned over to a collection agency to pursue. |
Regulated Purchased Natural Gas Expense [Policy Text Block] | Regulated Purchased Natural Gas Expense Our regulated natural gas rates include a natural gas cost recovery tariff approved by the Kentucky Public Service Commission which provides for a dollar-tracker that matches revenues and natural gas costs and provides eventual dollar-for-dollar recovery of all natural gas costs incurred by the regulated segment and recovery of the uncollectible natural gas cost portion of bad debt expense. We expense natural gas costs based on the amount of natural gas costs recovered through revenue. Any differences between actual natural gas costs and those natural gas costs billed are deferred and reflected in the computation of future billings to customers using the natural gas cost recovery mechanism. |
Rate Regulated Basis of Accounting | Rate Regulated Basis of Accounting We account for our regulated segment in accordance with applicable regulatory guidance. The economic effects of regulation can result in a regulated company recovering costs from customers in a period different from the period in which the costs would be charged to expense by an non-regulated enterprise. When this results, costs are deferred as assets on the Consolidated Balance Sheets (“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”). The amounts recorded as regulatory assets and regulatory liabilities are as follows: ($000) 2017 2016 Regulatory assets Current assets Deferred natural gas costs 2,098 674 Other assets Conservation/efficiency program expenses 258 243 Loss on extinguishment of debt 2,468 2,689 Asset retirement obligations 5,640 5,121 Accrued pension 7,069 10,828 Total other assets 15,435 18,881 Total regulatory assets 17,533 19,555 Regulatory liabilities Long-term liabilities Accrued cost of removal on long-lived assets 549 487 Regulatory liability for deferred income taxes 586 651 Total regulatory liabilities 1,135 1,138 All of our regulatory assets and liabilities have been approved for recovery by the Kentucky Public Service Commission and are currently being recovered or refunded through our regulated natural gas rates. In addition, the unrecovered balance of the loss on extinguishment of debt is included in rate base and, therefore, earns a return. The weighted average recovery period of the other regulatory assets which are not earning a return is 28 years . |
Derivatives | Derivatives Certain of our natural gas purchase and sale contracts qualify as derivatives. All such contracts have been designated as normal purchases and sales and as such are accounted for under the accrual basis and are not recorded at fair value in the accompanying consolidated financial statements. |
Marketable Securities | Marketable Securities We have a supplemental retirement benefit agreement with Glenn R. Jennings, our Chairman of the Board, President and Chief Executive Officer, that is a non-qualified deferred compensation plan. The agreement establishes an irrevocable rabbi trust, in which the assets of the trust are earmarked to pay benefits under the agreement. We have recognized a liability related to the obligation to pay these benefits to Mr. Jennings. We make discretionary contributions to the trust in order to fund the related deferred compensation liability. The assets of the trust consist of exchange traded securities and exchange traded mutual funds and are classified as trading securities. The assets are recorded at fair value on the Consolidated Balance Sheets based on observable market prices from active markets. Net realized and unrealized gains and losses are included in earnings each period to effectively offset the corresponding earnings impact associated with the change in the fair value of the deferred compensation liability to which the assets relate. |
Fair Value | Fair Value Fair value is defined as the exchange price in an orderly transaction between market participants to sell an asset or transfer a liability at the measurement date. Fair value focuses on an exit price, which is the price that would be received by us to sell an asset or paid to transfer a liability versus an entry price, which would be the price paid to acquire an asset or received to assume a liability. We determine fair value based on the following fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three levels: • Level 1 - Observable inputs consisting of quoted prices in active markets for identical assets or liabilities; • Level 2 - Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and • Level 3 - Unobservable inputs which require the reporting entity to develop its own assumptions. Although accounting standards permit entities to elect to measure many financial instruments and certain other items at fair value, we do not currently have any financial assets or financial liabilities for which this provision has been elected. However, in the future, we may elect to measure certain financial instruments at fair value in accordance with these standards. |
Revenue Recognition, Policy [Policy Text Block] | Regulated Revenues We bill our regulated sales of natural gas at tariff rates approved by the Kentucky Public Service Commission. Our customers are billed on a monthly basis; however, the billing cycle for certain classes of customers do not necessarily coincide with the calendar month-end. For these customers, we apply the unbilled method of accounting, where we estimate and accrue revenues applicable to customers, but not yet billed. The related natural gas costs are charged to expense. At the end of each month, natural gas service which has been rendered from the date the customer's meter was last read to the month-end is unbilled. Unbilled revenues are included in accounts receivable and unbilled natural gas costs are included in deferred natural gas costs on the accompanying Consolidated Balance Sheets. Unbilled amounts include the following: (000) 2017 2016 Unbilled revenues ($) 1,653 1,452 Unbilled natural gas costs ($) 445 319 Unbilled volumes (Mcf) 70 63 We record on-system transportation services in the period in which we transport natural gas to the end-use customer within our system. On-system transportation customers receive their natural gas supply from third-party shippers delivering natural gas into Delta’s system. We bill on-system transportation services at tariff rates, as approved by the Kentucky Public Service Commission, which include both fixed monthly charges and volumetric rates. Delta Resources utilizes Delta’s on-system transportation service and Delta recognizes revenue from Delta Resources at tariff rates, which eliminates upon consolidation. We record off-system transportation services in the period in which we transport natural gas to an interstate pipeline on behalf of third-party shippers delivering natural gas into Delta’s system. We bill o ff-system transportation services at tariff rates, as approved by the Kentucky Public Service Commission, which are volumetric rates. Delgasco utilizes Delta‘s off-system transportation service and Delta recognizes revenue from Delgasco at tariff rates, which eliminates upon consolidation. The daily volumes of natural gas delivered from third-party shippers supplying our transportation customers rarely equal the daily volumes billed to our customers, resulting in periodic transportation imbalances. These imbalances are short-term in duration, and Delta monitors the activity and regularly notifies the shippers when they have an imbalance. Transportation imbalances in turn create imbalances of the natural gas supply on Delta’s system, thus requiring Delta to purchase either more or less volumes of natural gas to meet our customers’ natural gas requirements, and they are included on the Consolidated Balance Sheets in either accounts payable or prepayments, respectively. Consistent with the regulatory treatment for our natural gas cost recovery tariff (as further discussed in Note 14 of the Notes to Consolidated Financial Statements), imbalances do not impact our results of operations, as the net impact of the imbalances offset against the regulatory asset/liability related to our natural gas cost recovery tariff. Non-Regulated Revenues Delta Resources enters into contracts whereby it is obligated to supply one-hundred percent of its customers’ natural gas requirements at either fixed or index-based rates. Delta Resources recognizes revenue in the period in which actual metered volumes are delivered to the customer. Delta Resources utilizes Delta’s on-system transportation service and records such transportation expenses at tariff rates that eliminate upon consolidation. Delgasco enters into contracts to deliver fixed quantities of natural gas to its customers at either fixed or index-based rates. Delgasco recognizes revenue based upon the period in which the customer takes possession of the natural gas. Delgasco utilizes Delta’s off-system transportation service and records such transportation expenses at tariff rates that eliminate upon consolidation. Enpro produces natural gas which supplies a portion of Delgasco’s natural gas requirements and recognizes the sale of natural gas in the period in which Delgasco takes possession of the natural gas. Revenues and related natural gas costs between Enpro and Delgasco are both within the non-regulated segment and eliminate upon consolidation. We recognize revenue from natural gas liquids in the period in which the customer takes possession of the natural gas liquids. Factors that affect revenue from the sale of natural gas liquids include the hydrocarbon content of the liquids, the market price for natural gas liquids and the volumes of natural gas liquids sold. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Major classes of property, plant and equipment | Property, plant and equipment is comprised of the following major classes of assets: ($000) 2017 2016 Regulated segment Distribution, transmission and storage 219,477 214,660 General, miscellaneous and intangibles 23,578 23,145 Construction work in progress 3,902 1,422 Total regulated segment 246,957 239,227 Non-regulated segment 2,654 2,607 Total property, plant and equipment 249,611 241,834 |
Unbilled revenues and gas costs | Unbilled revenues are included in accounts receivable and unbilled natural gas costs are included in deferred natural gas costs on the accompanying Consolidated Balance Sheets. Unbilled amounts include the following: (000) 2017 2016 Unbilled revenues ($) 1,653 1,452 Unbilled natural gas costs ($) 445 319 Unbilled volumes (Mcf) 70 63 |
Regulated assets | The amounts recorded as regulatory assets and regulatory liabilities are as follows: ($000) 2017 2016 Regulatory assets Current assets Deferred natural gas costs 2,098 674 Other assets Conservation/efficiency program expenses 258 243 Loss on extinguishment of debt 2,468 2,689 Asset retirement obligations 5,640 5,121 Accrued pension 7,069 10,828 Total other assets 15,435 18,881 Total regulatory assets 17,533 19,555 Regulatory liabilities Long-term liabilities Accrued cost of removal on long-lived assets 549 487 Regulatory liability for deferred income taxes 586 651 Total regulatory liabilities 1,135 1,138 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value of the trust assets | The trust assets are as follows: ($000) 2017 2016 Money market 48 44 U.S. equity securities 539 435 Foreign equity funds 246 168 U.S. fixed income funds 269 223 Foreign fixed income funds 23 19 Absolute return strategy mutual funds 94 145 Total trust assets 1,219 1,034 |
Fair value of liabilities | The fair value of our long-term debt is categorized as Level 3 in the fair value hierarchy. 2017 2016 Carrying Fair Carrying Fair ($000) Amount Value Amount Value 4.26% Series A Notes 50,429 52,978 51,923 55,324 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Summary of asset retirement obligations and related assets | The following is a summary of our asset retirement obligations as shown on the accompanying Consolidated Balance Sheets: ($000) 2017 2016 Balance, beginning of year 3,918 3,796 Liabilities incurred 38 28 Liabilities settled (357 ) (266 ) Accretion 280 271 Revisions in estimated cash flows 152 89 Balance, end of year 4,031 3,918 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Temporary differences which gave rise to the net accumulated deferred income tax liability | The temporary differences which gave rise to the net accumulated deferred income tax liability for the periods are as follows: ($000) 2017 2016 Deferred Tax Liabilities Deferred natural gas cost (796 ) (256 ) Prepaid expenses (339 ) (392 ) Accelerated depreciation (39,603 ) (38,862 ) Prepaid pension (982 ) — Regulatory assets - asset retirement obligations (1,078 ) (981 ) Regulatory assets - loss on extinguishment of debt (937 ) (1,021 ) Regulatory assets - unrecognized accrued pension (2,684 ) (4,110 ) Regulatory liabilities (837 ) (837 ) Other (1,082 ) (1,084 ) Total deferred tax liabilities (48,338 ) (47,543 ) Deferred Tax Assets Bad debt reserve 65 114 Accrued pension — 516 Accrued employee benefits 783 875 Asset retirement obligations 1,468 1,425 Regulatory liabilities 1,060 1,084 Section 263(a) capitalized costs 58 32 Other 89 92 Total deferred tax assets 3,523 4,138 Net accumulated deferred income tax liability (44,815 ) (43,405 ) |
Components of the income tax provision | The components of the income tax provision are comprised of the following for the years ended June 30: ($000) 2017 2016 2015 Current Federal 1,605 1,817 1,950 State 279 366 493 Total 1,884 2,183 2,443 Deferred 1,347 1,194 1,449 Income tax expense 3,231 3,377 3,892 |
Reconciliation of the statutory federal income tax rate to the effective income tax rate | econciliation of the statutory federal income tax rate to the effective income tax rate is shown in the table below: (%) 2017 2016 2015 Statutory federal income tax rate 34.0 34.0 34.0 State income taxes, net of federal benefit 4.0 4.0 4.0 Amortization of investment tax credits — (0.1 ) (0.1 ) Other differences, net (1.1 ) — (0.4 ) Effective income tax rate 36.9 37.9 37.5 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Obligations and the funded status of plan | Our obligations and the funded status of our plan, measured at June 30, 2017 and 2016, respectively, are as follows: ($000) 2017 2016 Change in Benefit Obligation Benefit obligation at beginning of year 31,572 28,838 Service cost 1,021 1,004 Interest cost 1,053 1,157 Actuarial (gain) loss (1,317 ) 1,517 Benefits paid (721 ) (944 ) Benefit obligation at end of year 31,608 31,572 Change in Plan Assets Fair value of plan assets at beginning of year 29,738 30,984 Actual return on plan assets 3,205 (802 ) Employer contributions 1,500 500 Benefits paid (721 ) (944 ) Fair value of plan assets at end of year 33,722 29,738 Recognized Amounts Projected benefit obligation (31,608 ) (31,572 ) Plan assets at fair value 33,722 29,738 Funded status 2,114 (1,834 ) Net amount recognized as prepaid (accrued) pension on the Consolidated Balance Sheets 2,114 (1,834 ) |
Items Not Yet Recognized as a Component of Net Periodic Benefit Costs | Items Not Yet Recognized as a Component of Net Periodic Benefit Cost Prior service cost (57 ) (144 ) Accumulated net losses 7,126 10,972 Amounts recognized as regulatory assets 7,069 10,828 |
Schedule of costs of retirement plans | ($000) 2017 2016 2015 Components of Net Periodic Benefit Cost Service cost 1,021 1,004 990 Interest cost 1,053 1,157 1,056 Expected return on plan assets (1,623 ) (1,636 ) (1,711 ) Amortization of unrecognized net loss 947 373 244 Amortization of prior service cost (86 ) (86 ) (86 ) Net periodic benefit cost 1,312 812 493 (%) Weighted-Average Assumptions Used to Discount rate 3.75 3.50 4.25 Rate of compensation increase 4.0 4.0 4.0 Weighted-Average Assumptions Used to Discount rate 3.5 4.25 4.25 Expected long-term return on plan assets 5.5 5.5 6.0 Rate of compensation increase 4.0 4.0 4.0 |
Allocation of plan assets | The assets of the plan are comprised of investments in individual securities and mutual funds. Target Actual Allocations (%) Allocations 2017 2016 Asset Class Cash and cash equivalents 3 4 3 Equity Securities U.S. equity securities 44 34 35 Foreign equity securities 21 17 17 65 51 52 Fixed Income Securities U. S. fixed income security 13 23 21 Foreign fixed income security 2 4 2 15 27 23 Other Securities Absolute return strategy mutual funds 7 10 14 Real estate investment trusts 10 8 8 17 18 22 100 100 100 |
Fair value of plan assets | The following represents the fair value of the plan assets: ($000) 2017 Level 1 Level 2 Level 3 Asset Class Cash 1,169 1,169 — — Equity Securities U.S. equity securities 11,293 11,293 — — Foreign equity securities 5,658 5,658 — — 16,951 16,951 — — Fixed Income Securities U.S. treasury securities 1,301 1,301 — — U.S. corporate bonds 1,664 — 1,664 — High yield funds 4,418 4,418 — — Foreign bond funds 1,326 1,326 — — Other 636 — 636 — 9,345 7,045 2,300 — Other Absolute return strategy mutual funds 3,517 3,517 — — Real estate investment trusts and master-limited partnerships 2,740 2,153 587 — 6,257 5,670 587 — Total investments at fair value 33,722 30,835 2,887 — ($000) 2016 Level 1 Level 2 Level 3 Asset Class Cash 807 807 — — Equity Securities U.S. equity securities 10,355 10,355 — — Foreign equity securities 4,952 4,952 — — 15,307 15,307 — — Fixed Income Securities U.S. treasury securities 387 387 — — U.S. corporate bonds 990 — 990 — High yield funds 4,397 4,397 — — Foreign bond funds 624 624 — — Other 680 — 680 — 7,078 5,408 1,670 — Other Absolute return strategy mutual funds 4,300 4,300 — — Real estate investment trusts and master-limited partnerships 2,246 2,084 162 — 6,546 6,384 162 — Total investments at fair value 29,738 27,906 1,832 — |
Future benefit payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: ($000) 2018 3,211 2019 1,699 2020 1,281 2021 1,176 2022 1,375 2023 - 2027 9,035 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | The following table summarizes the contractual maturities of our Series A Notes by fiscal year: ($000) 2018 1,500 2019 1,500 2020 1,500 2021 1,500 Thereafter 44,500 Total maturing debt 50,500 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per common share: 2017 2016 2015 Numerator - Basic and Diluted ($000) Net income 5,516 5,529 6,496 Dividends declared (7,394 ) (5,822 ) (5,640 ) Undistributed earnings (loss) (a) (1,878 ) (293 ) 856 Allocated to common shares: Undistributed earnings (loss) (a) (1,878 ) (293 ) 851 Dividends declared (b) 7,391 5,798 5,609 Earnings allocated to common shares 5,513 5,505 6,460 Denominator - Basic and Diluted Weighted average common shares (c) 7,118,170 7,066,925 7,002,694 Earnings per Common Share - Basic and Diluted ($) 0.77 0.78 0.92 (a) Percentage allocated to common shares: Weighted average: Common shares outstanding 7,118,170 7,066,925 7,002,694 Unvested participating shares outstanding (d) — — 45,500 Total 7,118,170 7,066,925 7,048,194 Percentage allocated to common shares 100.0 % 100.0 % 99.4 % Undistributed earnings (loss) ($000) (1,878 ) (293 ) 856 Allocated to common shares (1,878 ) (293 ) 851 (b) Represents dividends paid on common shares, exclusive of unvested participating shares. (c) Under our Incentive Compensation Plan, recipients of performance share awards receive unvested non-participating shares, as further discussed in Note 16 of the Notes to Consolidated Financial Statements. Unvested non-participating shares become dilutive in the interim quarter-end in which the performance objective is met. If the performance objective continues to be met through the end of the performance period, these shares become unvested participating shares as of the fiscal year-end, as further discussed below in Note (c). The weighted average number of unvested non-participating shares outstanding during a period is included in the diluted earnings per common share calculation using the treasury stock method, unless the effect of including such shares would be antidilutive. There were no unvested non-participating shares outstanding as of June 30, 2017, 2016 and 2015. (d) Certain awards under our shareholder approved incentive compensation plan, as further discussed in Note 16 of the Notes to Consolidated Financial Statements, provide the recipients of the awards all the rights of a shareholder of Delta including the right to dividends declared on common shares. Any unvested shares which are participating in dividends are considered participating securities and are included in our computation of basic and diluted earnings per share using the two-class method unless the effect of including such shares would be antidilutive. As of June 30, 2017 and 2016, there were 4,000 and 28,000 participating shares outstanding, respectively, which were excluded from the computation of earnings allocated to common shares, as the holders of the unvested participating shares do not have a contractual obligation to share in losses. There were no antidilutive shares in 2015. There were 4,000 , 28,000 and 65,000 unvested participating shares outstanding as of June 30, 2017 , 2016 and 2015, respectively. |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment information | Segment information is shown in the following table: ($000) 2017 2016 2015 Operating Revenues Regulated External customers 41,795 41,242 52,681 Intersegment 3,446 3,591 3,869 Total Regulated 45,241 44,833 56,550 Non-regulated External customers 27,045 22,888 33,507 Eliminations for intersegment (3,446 ) (3,591 ) (3,869 ) Total operating revenues 68,840 64,130 86,188 Operating Expenses Regulated Purchased natural gas 12,562 11,704 22,729 Depreciation and amortization 6,323 6,328 6,293 Other 18,240 16,033 15,819 Total regulated 37,125 34,065 44,841 Non-regulated Purchased natural gas 19,981 17,621 26,713 Depreciation and amortization 93 88 84 Other 4,084 4,513 5,455 Total non-regulated 24,158 22,222 32,252 Eliminations for intersegment (3,446 ) (3,591 ) (3,869 ) Total operating expenses 57,837 52,696 73,224 Other Income Regulated 206 4 25 Non-regulated — — — Total other income 206 4 25 Interest Charges Regulated 2,415 2,486 2,551 Non-regulated 47 45 50 Total interest charges 2,462 2,531 2,601 Income Tax Expense Regulated 2,153 3,238 3,553 Non-regulated 1,078 139 339 Total income tax expense 3,231 3,377 3,892 Net Income Regulated 3,754 4,982 5,748 Non-regulated 1,762 547 748 Total net income 5,516 5,529 6,496 Assets Regulated 184,843 185,634 183,482 Non-regulated 5,114 3,245 4,229 Total assets 189,957 188,879 187,711 Capital Expenditures Regulated 8,679 6,293 8,991 Non-regulated 47 10 20 Total capital expenditures 8,726 6,303 9,011 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | The following table sets forth our share-based compensation expense by fiscal year: ($000) 2017 2016 2015 Stock Awards 247 169 443 Performance Shares 45 283 652 Total 292 452 1,095 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block] | The following table sets forth the number of shares granted by fiscal year: 2017 2016 2015 Shares Grant Date Fair Value (000’s) Shares Grant Date Fair Value (000’s) Shares Grant Date Fair Value (000’s) Stock Awards 9,600 $ 247 8,400 $ 169 22,000 443 Performance Shares 41,000 1,056 39,000 787 39,000 773 Total 50,600 $ 1,303 47,400 $ 956 61,000 1,216 |
Summary of unvested activity for performance shares | The following summarizes the activity for performance shares: Performance shares Number of shares Weighted-average grant date fair value ($ per share) Unvested shares at June 30, 2016 28,000 20.15 Granted (a) 41,000 25.75 Vested (24,000 ) 20.21 Forfeited (41,000 ) 25.75 Unvested shares at June 30, 2017 4,000 19.82 (a) Represents the maximum number of shares which could be issued based on achieving the performance criteria. |
Quarterly Financial Data (Una35
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial data | The quarterly data reflects, in the opinion of management, all normal recurring adjustments necessary to present fairly the results for the interim periods. ($000, except per share amounts) Quarter Ended Operating Income (Loss) Net Income Basic and Diluted Earnings (Loss) per Common Share Fiscal 2017 September 30 10,508 (260 ) (458 ) (.06 ) December 31 18,937 4,534 2,444 .34 March 31 26,787 6,993 4,021 .56 June 30 12,608 (263 ) (491 ) (.07 ) Fiscal 2016 September 30 10,393 (133 ) (524 ) (.08 ) December 31 16,673 3,478 1,803 .25 March 31 26,202 7,084 3,983 .56 June 30 10,861 1,004 267 .05 |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Deducted From the Asset to Which it Applies - Allowance for doubtful accounts for the years ended [Abstract] | |||
Balance at Beginning of Period | $ 300,696 | $ 258,400 | $ 360,000 |
Charged to Cost and Expense | 1,240 | 247,724 | 170,631 |
Charged to Other Accounts - Recoveries | 40,716 | 122,364 | 237,267 |
Amounts Charged Off Or Paid | 170,861 | 327,792 | 509,498 |
Balance at End of Period | $ 171,791 | $ 300,696 | $ 258,400 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Details) Mcf in Thousands | 12 Months Ended | ||
Jun. 30, 2017USD ($)Mcf | Jun. 30, 2016USD ($)Mcf | Jun. 30, 2015 | |
Accounting Policies [Abstract] | |||
Number of customers | 36,000 | ||
Wholly owned subsidiaries | 3 | ||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | $ 249,611,353 | $ 241,833,771 | |
Composite depreciation rates (in hundredths) | 2.70% | 2.80% | 2.80% |
Revenue Recognition [Abstract] | |||
Unbilled revenues | $ 1,653,000 | $ 1,452,000 | |
Unbilled gas costs | $ 445,000 | $ 319,000 | |
Unbilled Volumes (in Mcf) | Mcf | 70 | 63 | |
Regulatory Assets [Line Items] | |||
The weighted average recovery period of regulatory assets not earning a return | 28 years | ||
Deferred Gas Cost | $ 2,098,050 | $ 674,077 | |
Regulatory assets, current | 2,468,000 | 2,689,000 | |
Total other assets | 15,435,233 | 18,881,126 | |
Total regulatory assets | 17,533,000 | 19,555,000 | |
Regulatory Liabilities [Line Items] | |||
Total regulatory liabilities | 1,135,000 | 1,138,000 | |
Regulatory Liability, Noncurrent | 1,135,362 | 1,138,141 | |
Accrued cost of removal of long lived assets [Member] | |||
Regulatory Liabilities [Line Items] | |||
Total regulatory liabilities | 549,000 | 487,000 | |
Regulatory liability for deferred income taxes [Member] | |||
Regulatory Liabilities [Line Items] | |||
Total regulatory liabilities | 586,000 | 651,000 | |
Conservation efficiency program expenses [Member] | |||
Regulatory Assets [Line Items] | |||
Total other assets | 258,000 | 243,000 | |
Loss on extinguishment of debt - regulatory asset [Member] | |||
Regulatory Assets [Line Items] | |||
Total other assets | 2,468,000 | 2,689,000 | |
Asset retirement obligation costs [Member] | |||
Regulatory Assets [Line Items] | |||
Total other assets | 5,640,000 | 5,121,000 | |
Accrued pension costs [Member] | |||
Regulatory Assets [Line Items] | |||
Total other assets | 7,069,000 | 10,828,000 | |
Unregulated Operation [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | 2,654,000 | 2,607,000 | |
Regulated Operation [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Distribution, transmission and storage | 219,477,000 | 214,660,000 | |
General, miscellaneous and intangibles | 23,578,000 | 23,145,000 | |
Construction work in progress | 3,902,000 | 1,422,000 | |
Property, Plant and Equipment | $ 246,957,000 | $ 239,227,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trust assets | $ 1,219 | $ 1,034 |
Money Market | 48 | 44 |
U.S. Equity Securities | 539 | 435 |
Foreign Equity Securities, Fair Value Disclosure | 246 | 168 |
U.S. Fixed Income Securities | 269 | 223 |
Foreign Fixed Income Security, Fair Value Disclosure | 23 | 19 |
Absolute return strategy mutual funds | 94 | 145 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
4.26% Series A Notes | 52,978 | 55,324 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
4.26% Series A Notes | $ 50,429 | $ 51,923 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Asset Retirement Obligations [Roll Forward] | ||
Beginning of year | $ 3,918,000 | $ 3,796,000 |
Liabilities incurred | 38,000 | 28,000 |
Liabilities settled | (357,000) | (266,000) |
Accretion | (280,000) | (271,000) |
Revisions in estimated cash flows | 152,000 | 89,000 |
End of year | 4,031,000 | 3,918,000 |
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 1,135,000 | 1,138,000 |
Accrued cost of removal of long lived assets [Member] | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | $ 549,000 | $ 487,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Deferred Tax Liabilities [Abstract] | |||
Deferred gas costs | $ (796,000) | $ (256,000) | |
Prepaid expenses | (339,000) | (392,000) | |
Accelerated depreciation | (39,603,000) | (38,862,000) | |
Other | (1,082,000) | (1,084,000) | |
Pensions | (982,000) | 0 | |
Regulatory assets - asset retirement obligation | (1,078,000) | (981,000) | |
Regulatory assets - loss on extinguishment of debt | (937,000) | (1,021,000) | |
Regulatory assets - unrecognized accrued pension | (2,684,000) | (4,110,000) | |
Deferred Tax Liabilities Regulatory Liabilities | (837,000) | (837,000) | |
Total | (48,338,000) | (47,543,000) | |
Deferred Tax Assets [Abstract] | |||
Accrued employee benefits | 783,000 | 875,000 | |
Asset retirement obligations | 1,468,000 | 1,425,000 | |
Other | 89,000 | 92,000 | |
Regulatory liabilities | 1,060,000 | 1,084,000 | |
Bad debt reserve | 65,000 | 114,000 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Pensions | 0 | 516,000 | |
Section 263(a) capitalized costs | 58,000 | 32,000 | |
Deferred Tax Assets Current and NonCurrent, Total | 3,523,000 | 4,138,000 | |
Net accumulated deferred income tax liability | (44,815,000) | (43,405,000) | |
Current | |||
Federal | 1,605,000 | 1,817,000 | $ 1,950,000 |
State | 279,000 | 366,000 | 493,000 |
Total | 1,884,000 | 2,183,000 | 2,443,000 |
Deferred | 1,347,000 | 1,194,000 | 1,449,000 |
Income tax expense | $ 3,230,613 | $ 3,377,481 | $ 3,892,215 |
Effective Income Tax Rate Reconciliation [Abstract] | |||
Statutory federal income tax rate (in hundredths) | 34.00% | 34.00% | 34.00% |
State income taxes, net of federal benefit (in hundredths) | 4.00% | 4.00% | 4.00% |
Amortization of investment tax credits (in hundredths) | 0.00% | (0.10%) | (0.10%) |
Other differences, net (in hundredths) | (1.10%) | 0.00% | (0.40%) |
Effective income tax rate (in hundredths) | 36.90% | 37.90% | 37.50% |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Aug. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Change in Benefit Obligation [Abstract] | |||||||
Benefit obligation at beginning of year | $ 31,572,000 | $ 28,838,000 | |||||
Service cost | 1,021,000 | 1,004,000 | $ 990,000 | ||||
Interest cost | 1,053,000 | 1,157,000 | 1,056,000 | ||||
Actuarial loss | (1,317,000) | 1,517,000 | |||||
Benefits paid | (721,000) | (944,000) | |||||
Benefit obligation at end of year | 31,608,000 | 31,572,000 | 28,838,000 | ||||
Change in Plan Assets [Abstract] | |||||||
Actual return on plan assets | 3,205,000 | (802,000) | |||||
Employer contributions | 1,500,000 | 500,000 | |||||
Benefits paid | (721,000) | (944,000) | |||||
Fair value of plan assets at end of year | 33,722,000 | 29,738,000 | 30,984,000 | ||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 33,722,000 | 29,738,000 | 30,984,000 | $ 33,722,000 | $ 29,738,000 | $ 30,984,000 | |
Funded status | 2,114,000 | (1,834,000) | |||||
Net amount recognized as prepaid (accrued) benefit costs on the Consolidated Balance Sheets | 2,114,000 | (1,834,000) | |||||
Accumulated benefit obligation | $ 28,320,000 | $ 28,124,000 | |||||
Components of Net Periodic Benefit Cost [Abstract] | |||||||
Service cost | 1,021,000 | 1,004,000 | 990,000 | ||||
Interest cost | 1,053,000 | 1,157,000 | 1,056,000 | ||||
Expected return on plan assets | (1,623,000) | (1,636,000) | (1,711,000) | ||||
Amortization of unrecognized net loss | 947,000 | 373,000 | 244,000 | ||||
Amortization of prior service cost | (86,000) | (86,000) | (86,000) | ||||
Net periodic benefit cost | $ 1,312,000 | $ 812,000 | $ 493,000 | ||||
Weighted-Average % Assumptions Used to Determine Benefit Obligations [Abstract] | |||||||
Discount rate (in hundredths) | 3.75% | 3.50% | 4.25% | ||||
Rate of compensation increase (in hundredths) | 4.00% | 4.00% | 4.00% | ||||
Weighted-Average % Assumptions Used to Determine Net Periodic Benefit Cost [Abstract] | |||||||
Discount rate (in hundredths) | 3.50% | 4.25% | 4.25% | ||||
Expected long-term return on plan assets | 5.50% | 5.50% | 6.00% | ||||
Rate of compensation increase (in hundredths) | 4.00% | 4.00% | 4.00% | ||||
Defined benefit plan, target and actual allocations [Abstract] | |||||||
Actual Allocation | 100.00% | 100.00% | |||||
Target Allocation | 100.00% | ||||||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | $ 33,722,000 | $ 29,738,000 | $ 30,984,000 | $ 33,722,000 | $ 29,738,000 | $ 30,984,000 | |
Expected future service expected to be paid [Abstract] | |||||||
2,017 | 3,211,000 | ||||||
2,018 | 1,699,000 | ||||||
2,019 | 1,281,000 | ||||||
2,020 | 1,176,000 | ||||||
2,021 | 1,375,000 | ||||||
2022-2026 | 9,035,000 | ||||||
Employee Savings Plan [Abstract] | |||||||
Defined contribution plan, cost recognized | 396,000 | 379,000 | $ 359,000 | ||||
Items Not Yet Recognized as a Component of Net Periodic Benefit Costs [Abstract] | |||||||
Amounts recognized as regulatory assets | 15,435,233 | 18,881,126 | |||||
Cash [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 1,169,000 | 807,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | $ 1,169,000 | 807,000 | $ 1,169,000 | $ 807,000 | |||
Defined benefit plan, target and actual allocations [Abstract] | |||||||
Actual Allocation | 4.00% | 3.00% | |||||
Target Allocation | 3.00% | ||||||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | $ 1,169,000 | 807,000 | $ 1,169,000 | $ 807,000 | |||
Cash [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 1,169,000 | 807,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 1,169,000 | 807,000 | 1,169,000 | 807,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 1,169,000 | 807,000 | 1,169,000 | 807,000 | |||
U.S. Equity Securities [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 11,293,000 | 10,355,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | $ 11,293,000 | 10,355,000 | $ 11,293,000 | $ 10,355,000 | |||
Defined benefit plan, target and actual allocations [Abstract] | |||||||
Actual Allocation | 34.00% | 35.00% | |||||
Target Allocation | 44.00% | ||||||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | $ 11,293,000 | 10,355,000 | $ 11,293,000 | $ 10,355,000 | |||
Blended fund composition (in hundredths) | 65.00% | ||||||
U.S. Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 11,293,000 | 10,355,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 11,293,000 | 10,355,000 | $ 11,293,000 | 10,355,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 11,293,000 | 10,355,000 | 11,293,000 | 10,355,000 | |||
Foreign Equity Securities [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 5,658,000 | 4,952,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | $ 5,658,000 | 4,952,000 | $ 5,658,000 | $ 4,952,000 | |||
Defined benefit plan, target and actual allocations [Abstract] | |||||||
Actual Allocation | 17.00% | 17.00% | |||||
Target Allocation | 21.00% | ||||||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | $ 5,658,000 | 4,952,000 | $ 5,658,000 | $ 4,952,000 | |||
Foreign Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 5,658,000 | 4,952,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 5,658,000 | 4,952,000 | 5,658,000 | 4,952,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 5,658,000 | 4,952,000 | 5,658,000 | 4,952,000 | |||
Total Equity Securities [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 16,951,000 | 15,307,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | $ 16,951,000 | 15,307,000 | $ 16,951,000 | $ 15,307,000 | |||
Defined benefit plan, target and actual allocations [Abstract] | |||||||
Actual Allocation | 51.00% | 52.00% | |||||
Target Allocation | 65.00% | ||||||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | $ 16,951,000 | 15,307,000 | $ 16,951,000 | $ 15,307,000 | |||
Total Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 16,951,000 | 15,307,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 16,951,000 | 15,307,000 | 16,951,000 | 15,307,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 16,951,000 | 15,307,000 | 16,951,000 | 15,307,000 | |||
US Treasury Securities [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 1,301,000 | 387,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 1,301,000 | 387,000 | 1,301,000 | 387,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 1,301,000 | 387,000 | 1,301,000 | 387,000 | |||
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 1,301,000 | 387,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 1,301,000 | 387,000 | 1,301,000 | 387,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 1,301,000 | 387,000 | 1,301,000 | 387,000 | |||
High Yield Funds [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 4,418,000 | 4,397,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 4,418,000 | 4,397,000 | 4,418,000 | 4,397,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 4,418,000 | 4,397,000 | 4,418,000 | 4,397,000 | |||
High Yield Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 4,418,000 | 4,397,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 4,418,000 | 4,397,000 | 4,418,000 | 4,397,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 4,418,000 | 4,397,000 | 4,418,000 | 4,397,000 | |||
Foreign Bond Funds [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 1,326,000 | 624,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 1,326,000 | 624,000 | 1,326,000 | 624,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 1,326,000 | 624,000 | 1,326,000 | 624,000 | |||
Foreign Bond Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 1,326,000 | 624,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 1,326,000 | 624,000 | 1,326,000 | 624,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 1,326,000 | 624,000 | 1,326,000 | 624,000 | |||
US Corporate Bonds [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 1,664,000 | 990,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 1,664,000 | 990,000 | 1,664,000 | 990,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 1,664,000 | 990,000 | 1,664,000 | 990,000 | |||
US Corporate Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 1,664,000 | 990,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 1,664,000 | 990,000 | 1,664,000 | 990,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 1,664,000 | 990,000 | 1,664,000 | 990,000 | |||
Other Fixed Income Securities [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 636,000 | 680,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 636,000 | 680,000 | 636,000 | 680,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 636,000 | 680,000 | 636,000 | 680,000 | |||
Other Fixed Income Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 636,000 | 680,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 636,000 | 680,000 | 636,000 | 680,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 636,000 | 680,000 | 636,000 | 680,000 | |||
Fixed Income Securities [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 9,345,000 | 7,078,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | $ 9,345,000 | 7,078,000 | $ 9,345,000 | $ 7,078,000 | |||
Defined benefit plan, target and actual allocations [Abstract] | |||||||
Actual Allocation | 27.00% | 23.00% | |||||
Target Allocation | 15.00% | ||||||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | $ 9,345,000 | 7,078,000 | $ 9,345,000 | $ 7,078,000 | |||
Fixed Income Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 7,045,000 | 5,408,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 7,045,000 | 5,408,000 | 7,045,000 | 5,408,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 7,045,000 | 5,408,000 | 7,045,000 | 5,408,000 | |||
Fixed Income Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 2,300,000 | 1,670,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 2,300,000 | 1,670,000 | 2,300,000 | 1,670,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 2,300,000 | 1,670,000 | 2,300,000 | 1,670,000 | |||
Fixed Income Securities [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 33,722,000 | 29,738,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 33,722,000 | 29,738,000 | 33,722,000 | 29,738,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 33,722,000 | 29,738,000 | 33,722,000 | 29,738,000 | |||
Fixed Income Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 30,835,000 | 27,906,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 30,835,000 | 27,906,000 | 30,835,000 | 27,906,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 30,835,000 | 27,906,000 | 30,835,000 | 27,906,000 | |||
Fixed Income Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 2,887,000 | 1,832,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 2,887,000 | 1,832,000 | 2,887,000 | 1,832,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | $ 2,887,000 | 1,832,000 | $ 2,887,000 | $ 1,832,000 | |||
US Fixed Income Securities [Member] | |||||||
Defined benefit plan, target and actual allocations [Abstract] | |||||||
Actual Allocation | 23.00% | 21.00% | |||||
Target Allocation | 13.00% | ||||||
U.S. Fixed Income Fund [Member] | |||||||
Fair value of plan assets [Abstract] | |||||||
Blended fund composition (in hundredths) | 35.00% | ||||||
Foreign Fixed Income Securities [Member] | |||||||
Defined benefit plan, target and actual allocations [Abstract] | |||||||
Actual Allocation | 4.00% | 2.00% | |||||
Target Allocation | 2.00% | ||||||
Absolute Return Strategy Mutual Funds [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | $ 3,517,000 | 4,300,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | $ 3,517,000 | 4,300,000 | $ 3,517,000 | $ 4,300,000 | |||
Defined benefit plan, target and actual allocations [Abstract] | |||||||
Actual Allocation | 10.00% | 14.00% | |||||
Target Allocation | 7.00% | ||||||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | $ 3,517,000 | 4,300,000 | $ 3,517,000 | $ 4,300,000 | |||
Absolute Return Strategy Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 3,517,000 | 4,300,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 3,517,000 | 4,300,000 | 3,517,000 | 4,300,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 3,517,000 | 4,300,000 | 3,517,000 | 4,300,000 | |||
Real Estate Investment Trusts [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 2,740,000 | 2,246,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | $ 2,740,000 | 2,246,000 | $ 2,740,000 | $ 2,246,000 | |||
Defined benefit plan, target and actual allocations [Abstract] | |||||||
Actual Allocation | 8.00% | 8.00% | |||||
Target Allocation | 10.00% | ||||||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | $ 2,740,000 | 2,246,000 | $ 2,740,000 | $ 2,246,000 | |||
Real Estate Investment Trusts [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 2,153,000 | 2,084,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 2,153,000 | 2,084,000 | 2,153,000 | 2,084,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 2,153,000 | 2,084,000 | 2,153,000 | 2,084,000 | |||
Real Estate Investment Trusts [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 587,000 | 162,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 587,000 | 162,000 | 587,000 | 162,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 587,000 | 162,000 | 587,000 | 162,000 | |||
Total Other [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 6,257,000 | 6,546,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | $ 6,257,000 | 6,546,000 | $ 6,257,000 | $ 6,546,000 | |||
Defined benefit plan, target and actual allocations [Abstract] | |||||||
Actual Allocation | 18.00% | 22.00% | |||||
Target Allocation | 17.00% | ||||||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | $ 6,257,000 | 6,546,000 | $ 6,257,000 | $ 6,546,000 | |||
Total Other [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 5,670,000 | 6,384,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 5,670,000 | 6,384,000 | 5,670,000 | 6,384,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 5,670,000 | 6,384,000 | 5,670,000 | 6,384,000 | |||
Total Other [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Fair value of plan assets at end of year | 587,000 | 162,000 | |||||
Recognized amounts [Abstract] | |||||||
Plan assets at fair value | 587,000 | 162,000 | 587,000 | 162,000 | |||
Fair value of plan assets [Abstract] | |||||||
Plan assets at fair value | 587,000 | $ 162,000 | 587,000 | 162,000 | |||
Subsequent Event [Member] | |||||||
Change in Plan Assets [Abstract] | |||||||
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | $ 500,000 | ||||||
Fair value of plan assets [Abstract] | |||||||
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | $ 500,000 | ||||||
Supplemental Employee Retirement Plan [Member] | |||||||
Employee Savings Plan [Abstract] | |||||||
Annual payments from supplemental retirement agreement | 100,000 | ||||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 60,000 | ||||||
Other Postretirement Benefits Payable | 1,219,000 | 1,034,000 | |||||
Accrued pension costs [Member] | |||||||
Items Not Yet Recognized as a Component of Net Periodic Benefit Costs [Abstract] | |||||||
Prior service cost | (57,000) | (144,000) | |||||
Net loss | 7,126,000 | 10,972,000 | |||||
Amounts recognized as regulatory assets | $ 7,069,000 | $ 10,828,000 |
Dividend Reinvestment and Sto42
Dividend Reinvestment and Stock Purchase Plan (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Dividend Reinvestment and Stock Purchase Plan [Abstract] | |||
Limited additional investments, maximum per year | $ 50,000 | ||
Stock Issued During Period, Value, New Issues | 22,682 | 28,437 | 26,412 |
Number of shares authorized under the plan (in shares) | 400,000 | ||
Dividend Reinvestment and Stock Purchase Plan, Shares Available for Grant | 15,000 |
Notes Payable (Details)
Notes Payable (Details) - Branch Banking and Trust Company [Member] | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Line of Credit Facility [Line Items] | |
Permitted borrowings | $ 40,000,000 |
Basis spread on variable rate | 1.075% |
Annual cost of unused bank line of credit percentage (in hundredths) | 0.125% |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Debt Instrument [Line Items] | ||
Amortization of Debt Issuance Costs and Discounts | $ 71,000 | $ 77,000 |
Regulatory assets, current | 2,468,000 | 2,689,000 |
Max limit on dividends paid [Line Items] | 15,000,000 | |
Annual principal payment | 1,500,000 | |
Maximum maturities of long-term debt [Abstract] | ||
2,017 | 1,500,000 | |
2,018 | 1,500,000 | |
2,019 | 1,500,000 | |
2,020 | 1,500,000 | |
Thereafter | 44,500,000 | |
Long Term Debt 3 Fair Value Disclosure | 52,978,000 | $ 55,324,000 |
Debt Covenants, Actual [Abstract] | ||
Default debt maximum | 2,500,000 | |
Other Debt Covenants [Abstract] | ||
Total of long-term debt maturity | $ 50,500,000 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Earnings Per Share [Abstract] | ||||||||||||
Incremental Common Shares Attributable to Participating Nonvested Shares with Non-forfeitable Dividend Rights | 4,000 | 28,000 | 65,000 | |||||||||
Numerator - Basic and Diluted [Abstract] | ||||||||||||
Net income | $ (491,000) | $ 4,021,000 | $ 2,444,000 | $ (458,000) | $ 267,000 | $ 3,983,000 | $ 1,803,000 | $ (524,000) | $ 5,516,343 | $ 5,529,378 | $ 6,496,081 | |
Less: dividends paid | 7,394,018 | 5,822,259 | 5,639,791 | |||||||||
Payments of Ordinary Dividends, Common Stock | (7,394,018) | (5,822,000) | (5,640,000) | |||||||||
Undistributed earnings | [1] | $ (1,878,000) | $ (293,000) | 856,000 | ||||||||
Percentage allocated to common shares (in hundredths) | 100.00% | 99.40% | ||||||||||
Undistributed earnings allocated to common shares | [1] | $ (1,878,000) | $ (293,000) | 851,000 | ||||||||
Add: dividends declared allocated to common shares | [2] | 7,391,000 | 5,798,000 | 5,609,000 | ||||||||
Net income available to common shares | $ 5,513,000 | $ 5,505,000 | $ 6,460,000 | |||||||||
Denominator - Basic [Abstract] | ||||||||||||
Weighted average Common shares (in shares) | [3] | 7,118,170 | 7,066,925 | 7,002,694 | ||||||||
Per common share net income [Abstract] | ||||||||||||
Basic (in dollars per share) | $ (0.07) | $ 0.56 | $ 0.34 | $ (0.06) | $ 0.05 | $ 0.56 | $ 0.25 | $ (0.08) | $ 0.77 | $ 0.78 | $ 0.92 | |
Diluted (in dollars per share) | $ 0.77 | $ 0.78 | $ 0.92 | |||||||||
Percentage allocated to common shares - weighted average [Abstract] | ||||||||||||
Weighted average Common shares (in shares) | [3] | 7,118,170 | 7,066,925 | 7,002,694 | ||||||||
Unvested participating shares (in shares) | [4] | 0 | 45,500 | |||||||||
Total (in shares) | 7,118,170 | 7,066,925 | 7,048,194 | |||||||||
[1] | Percentage allocated to common shares: Weighted average: Common shares outstanding 7,118,170 7,066,925 7,002,694Unvested participating shares outstanding (d)— — 45,500Total7,118,170 7,066,925 7,048,194 Percentage allocated to common shares100.0% 100.0% 99.4% Undistributed earnings (loss) ($000)(1,878) (293) 856Allocated to common shares(1,878) (293) 851 | |||||||||||
[2] | Represents dividends paid on common shares, exclusive of unvested participating shares. | |||||||||||
[3] | Under our Incentive Compensation Plan, recipients of performance share awards receive unvested non-participating shares, as further discussed in Note 16 of the Notes to Consolidated Financial Statements. Unvested non-participating shares become dilutive in the interim quarter-end in which the performance objective is met. If the performance objective continues to be met through the end of the performance period, these shares become unvested participating shares as of the fiscal year-end, as further discussed below in Note (c). The weighted average number of unvested non-participating shares outstanding during a period is included in the diluted earnings per common share calculation using the treasury stock method, unless the effect of including such shares would be antidilutive. There were no unvested non-participating shares outstanding as of June 30, 2017, 2016 and 2015. | |||||||||||
[4] | Certain awards under our shareholder approved incentive compensation plan, as further discussed in Note 16 of the Notes to Consolidated Financial Statements, provide the recipients of the awards all the rights of a shareholder of Delta including the right to dividends declared on common shares. Any unvested shares which are participating in dividends are considered participating securities and are included in our computation of basic and diluted earnings per share using the two-class method unless the effect of including such shares would be antidilutive. As of June 30, 2017 and 2016, there were 4,000 and 28,000 participating shares outstanding, respectively, which were excluded from the computation of earnings allocated to common shares, as the holders of the unvested participating shares do not have a contractual obligation to share in losses. There were no antidilutive shares in 2015. There were 4,000, 28,000 and 65,000 unvested participating shares outstanding as of June 30, 2017, 2016 and 2015, respectively. |
Operating Leases (Details)
Operating Leases (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Leases [Abstract] | |||
Rental expense under operating leases | $ 68,000 | $ 78,000 | $ 69,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Additional potential lump sum payments | $ 4,700,000 |
Share price per proposed merger | 30.50 |
Total Compensation Paid Upon Change of Control | 14,700,000 |
Merger litigation insurance deductible | 1,000,000 |
Payable to Advisors Upon Closing of Merger | 1,853,000 |
Runoff Insurance Coverage Cost | 158,000 |
Loss Contingencies [Line Items] | |
Minimum gas purchase obligation through the end of the next fiscal year | 350,000 |
Purchase Obligation, Due in Second Year | $ 199,000 |
Regulatory Matters (Details)
Regulatory Matters (Details) | Jun. 30, 2017 |
Regulated Operations [Abstract] | |
Number of cities where current franchises are held | 7 |
Number of cities where we continue to operate under expired franchises | 15 |
Operating Segments (Details)
Operating Segments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenue, Major Customer [Line Items] | |||||||||||
Entity-Wide Revenue, Major Customer, 5 Percent Threshold, Amount | $ 0.05 | ||||||||||
Operating Revenues [Abstract] | |||||||||||
Regulated Operating Revenue | 41,795,560 | $ 41,242,094 | $ 52,681,120 | ||||||||
Unregulated Operating Revenue | 27,044,609 | 22,888,126 | 33,507,118 | ||||||||
Total operating revenues | $ 12,608,000 | $ 26,787,000 | $ 18,937,000 | $ 10,508,000 | $ 10,861,000 | $ 26,202,000 | $ 16,673,000 | $ 10,393,000 | 68,840,169 | 64,130,220 | 86,188,238 |
Operating Expenses [Abstract] | |||||||||||
Purchased gas | 12,561,849 | 11,704,178 | 22,728,766 | ||||||||
Non-regulated purchase gas | 19,980,989 | 17,621,069 | 26,713,424 | ||||||||
Total operating expenses | 57,836,653 | 52,696,228 | 73,224,377 | ||||||||
Other Income and Deductions, Net [Abstract] | |||||||||||
Total other income and deductions | 205,826 | 4,124 | 25,097 | ||||||||
Interest Charges [Abstract] | |||||||||||
Total interest charges | 2,462,386 | 2,531,257 | 2,600,662 | ||||||||
Income Tax Expense [Abstract] | |||||||||||
Total income tax expense | 3,230,613 | 3,377,481 | 3,892,215 | ||||||||
Net Income [Abstract] | |||||||||||
Net income (Loss) | (491,000) | $ 4,021,000 | $ 2,444,000 | $ (458,000) | 267,000 | $ 3,983,000 | $ 1,803,000 | $ (524,000) | 5,516,343 | 5,529,378 | 6,496,081 |
Assets [Abstract] | |||||||||||
Total assets | 189,956,927 | 188,879,129 | 189,956,927 | 188,879,129 | 187,711,000 | ||||||
Capital Expenditures [Abstract] | |||||||||||
Total capital expenditures | 8,726,000 | 6,303,000 | 9,011,000 | ||||||||
Largest Customer [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Entity-Wide Revenue, Major Customer, 5 Percent Threshold, Amount | 15,889,000 | 11,555,000 | 17,852,000 | ||||||||
Second Largest Customer [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Entity-Wide Revenue, Major Customer, 5 Percent Threshold, Amount | 4,744,000 | 5,656,000 | 7,127,000 | ||||||||
Intersegment Eliminations [Member] | |||||||||||
Operating Expenses [Abstract] | |||||||||||
Total segment operating expenses | $ (3,446,000) | $ (3,591,000) | $ (3,869,000) | ||||||||
Regulated Operation [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage of natural gas purchased from two suppliers (in hundredths) | 99.00% | 99.00% | 99.00% | ||||||||
Operating Revenues [Abstract] | |||||||||||
Regulated Operating Revenue | $ 41,795,000 | $ 41,242,000 | $ 52,681,000 | ||||||||
Operating Expenses [Abstract] | |||||||||||
Purchased gas | 12,562,000 | ||||||||||
Depreciation | 6,323,000 | 6,328,000 | 6,293,000 | ||||||||
Other | 18,240,000 | 16,033,000 | 15,819,000 | ||||||||
Other Income and Deductions, Net [Abstract] | |||||||||||
Total other income and deductions | 206,000 | 4,000 | 25,000 | ||||||||
Interest Charges [Abstract] | |||||||||||
Total interest charges | 2,415,000 | 2,486,000 | 2,551,000 | ||||||||
Income Tax Expense [Abstract] | |||||||||||
Total income tax expense | 2,153,000 | 3,238,000 | 3,553,000 | ||||||||
Net Income [Abstract] | |||||||||||
Net income (Loss) | 3,754,000 | 4,982,000 | 5,748,000 | ||||||||
Assets [Abstract] | |||||||||||
Total assets | 184,843,000 | 185,634,000 | 184,843,000 | 185,634,000 | 183,482,000 | ||||||
Capital Expenditures [Abstract] | |||||||||||
Total capital expenditures | 8,679,000 | 6,293,000 | 8,991,000 | ||||||||
Regulated Operation [Member] | Intersegment Eliminations [Member] | |||||||||||
Operating Revenues [Abstract] | |||||||||||
Intersegment revenues | 3,446,000 | 3,591,000 | 3,869,000 | ||||||||
Regulated Operation [Member] | Operating Segments [Member] | |||||||||||
Operating Revenues [Abstract] | |||||||||||
Regulated Operating Revenue | 45,241,000 | 44,833,000 | 56,550,000 | ||||||||
Operating Expenses [Abstract] | |||||||||||
Total operating expenses | $ 37,125,000 | $ 34,065,000 | $ 44,841,000 | ||||||||
Unregulated Operation [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage of natural gas purchased from two suppliers (in hundredths) | 95.00% | 99.00% | 99.00% | ||||||||
Operating Revenues [Abstract] | |||||||||||
Unregulated Operating Revenue | $ 27,045,000 | $ 22,888,000 | $ 33,507,000 | ||||||||
Operating Expenses [Abstract] | |||||||||||
Non-regulated purchase gas | 19,981,000 | 17,621,000 | 26,713,000 | ||||||||
Depreciation | 93,000 | 88,000 | 84,000 | ||||||||
Other | 4,084,000 | 4,513,000 | 5,455,000 | ||||||||
Total segment operating expenses | 24,158,000 | 22,222,000 | 32,252,000 | ||||||||
Other Income and Deductions, Net [Abstract] | |||||||||||
Total other income and deductions | 0 | 0 | 0 | ||||||||
Interest Charges [Abstract] | |||||||||||
Total interest charges | 47,000 | 45,000 | 50,000 | ||||||||
Income Tax Expense [Abstract] | |||||||||||
Total income tax expense | 1,078,000 | 139,000 | 339,000 | ||||||||
Net Income [Abstract] | |||||||||||
Net income (Loss) | 1,762,000 | 547,000 | 748,000 | ||||||||
Assets [Abstract] | |||||||||||
Total assets | $ 5,114,000 | $ 3,245,000 | 5,114,000 | 3,245,000 | 4,229,000 | ||||||
Capital Expenditures [Abstract] | |||||||||||
Total capital expenditures | 47,000 | 10,000 | 20,000 | ||||||||
Unregulated Operation [Member] | Intersegment Eliminations [Member] | |||||||||||
Operating Revenues [Abstract] | |||||||||||
Intersegment revenues | $ (3,446,000) | (3,591,000) | (3,869,000) | ||||||||
Retained Earnings [Member] | |||||||||||
Net Income [Abstract] | |||||||||||
Net income (Loss) | $ 5,529,378 | $ 6,496,081 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) | 12 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | $ 292,174 | $ 452,230 | $ 1,095,051 | ||
Number of shares that may be issued pursuant to the plan (in shares) | 1,000,000 | ||||
Shares available for grant under the plan (in shares) | 751,000 | ||||
Share-based compensation expense | $ 292,000 | 452,000 | 1,095,000 | ||
Grant date fair value | $ 1,303,000 | $ 956,000 | $ 1,216,000 | ||
Unvested shares remaining at end of period | 4,000 | ||||
Cost to be recognized in future periods | $ 4,000 | ||||
Number of shares [Abstract] | |||||
Granted (in shares) | 50,600 | 47,400 | 61,000 | ||
Weighted-average grant date fair value [Abstract] | |||||
Unvested awards at beginning of period (in dollars per share) | $ 20.15 | ||||
Granted (in dollars per share) | [1] | 25.75 | |||
Vested (in dollars per share) | 20.21 | ||||
Forfeited (in dollars per share) | 25.75 | ||||
Unvested awards at end of period (in dollars per share) | $ 19.82 | $ 20.15 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 2 months | ||||
Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 247,000 | $ 169,000 | $ 443,000 | ||
Grant date fair value | $ 247,000 | $ 169,000 | $ 443,000 | ||
Number of shares [Abstract] | |||||
Granted (in shares) | 9,600 | 8,400 | 22,000 | ||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 45,000 | $ 283,000 | $ 652,000 | ||
Grant date fair value | $ 1,056,000 | $ 787,000 | $ 773,000 | ||
Number of shares [Abstract] | |||||
Unvested awards at beginning of period (in shares) | 28,000 | ||||
Granted (in shares) | 41,000 | [1] | 39,000 | 39,000 | |
Vested (in shares) | (24,000) | ||||
Forfeited (in shares) | (41,000) | ||||
Unvested awards at end of period (in shares) | 4,000 | 28,000 | |||
[1] | Represents the maximum number of shares which could be issued based on achieving the performance criteria. |
Quarterly Financial Data (Una51
Quarterly Financial Data (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Revenues | $ 12,608,000 | $ 26,787,000 | $ 18,937,000 | $ 10,508,000 | $ 10,861,000 | $ 26,202,000 | $ 16,673,000 | $ 10,393,000 | $ 68,840,169 | $ 64,130,220 | $ 86,188,238 |
Operating Income | (263,000) | 6,993,000 | 4,534,000 | (260,000) | 1,004,000 | 7,084,000 | 3,478,000 | (133,000) | 11,003,516 | 11,433,992 | 12,963,861 |
Net income (Loss) | $ (491,000) | $ 4,021,000 | $ 2,444,000 | $ (458,000) | $ 267,000 | $ 3,983,000 | $ 1,803,000 | $ (524,000) | $ 5,516,343 | $ 5,529,378 | $ 6,496,081 |
Basic Earnings (Loss) per Common Share (in dollars per share) | $ (0.07) | $ 0.56 | $ 0.34 | $ (0.06) | $ 0.05 | $ 0.56 | $ 0.25 | $ (0.08) | $ 0.77 | $ 0.78 | $ 0.92 |
Diluted Earnings (Loss) per Common Share (in dollars per share) | $ 0.77 | $ 0.78 | $ 0.92 |
Merger with PNG Companies, LL52
Merger with PNG Companies, LLC (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Merger with PNG Companies, LLC [Abstract] | |
Payments for Merger Related Costs | $ 1,612,000 |