Cover Page
Cover Page - shares | 3 Months Ended | |
Dec. 31, 2019 | Jan. 31, 2020 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-10042 | |
Entity Registrant Name | Atmos Energy Corp | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 75-1743247 | |
Entity Address, Address Line One | 1800 Three Lincoln Centre | |
Entity Address, Address Line Two | 5430 LBJ Freeway | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75240 | |
City Area Code | 972 | |
Local Phone Number | 934-9227 | |
Title of 12(b) Security | Common stock | |
Trading Symbol | ATO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 122,266,316 | |
Entity Central Index Key | 0000731802 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
ASSETS | ||
Property, plant and equipment | $ 14,691,719 | $ 14,180,593 |
Less accumulated depreciation and amortization | 2,441,296 | 2,392,924 |
Net property, plant and equipment | 12,250,423 | 11,787,669 |
Current assets | ||
Cash and cash equivalents | 189,272 | 24,550 |
Accounts receivable, net | 435,616 | 230,571 |
Gas stored underground | 115,259 | 130,138 |
Other current assets | 71,982 | 72,772 |
Total current assets | 812,129 | 458,031 |
Goodwill | 730,706 | 730,706 |
Deferred charges and other assets | 594,867 | 391,213 |
Total assets | 14,388,125 | 13,367,619 |
Shareholders’ equity | ||
Common stock, no par value (stated at $0.005 per share); 200,000,000 shares authorized; issued and outstanding: December 31, 2019 — 122,262,403 shares; September 30, 2019 — 119,338,925 shares | 611 | 597 |
Additional paid-in capital | 3,979,564 | 3,712,194 |
Accumulated other comprehensive loss | (113,531) | (114,583) |
Retained earnings | 2,261,131 | 2,152,015 |
Shareholders’ equity | 6,127,775 | 5,750,223 |
Long-term debt | 4,324,285 | 3,529,452 |
Total capitalization | 10,452,060 | 9,279,675 |
Current liabilities | ||
Accounts payable and accrued liabilities | 308,113 | 265,024 |
Other current liabilities | 537,009 | 479,501 |
Short-term debt | 0 | 464,915 |
Current maturities of long-term debt | 50 | 0 |
Total current liabilities | 845,172 | 1,209,440 |
Deferred income taxes | 1,352,333 | 1,300,015 |
Regulatory excess deferred taxes | 699,375 | 705,101 |
Regulatory cost of removal obligation | 451,178 | 473,172 |
Deferred credits and other liabilities | 588,007 | 400,216 |
Total shareholders' equity and liabilities | $ 14,388,125 | $ 13,367,619 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Sep. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock stated value (USD per share) | $ 0.005 | $ 0.005 |
Common stock authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock issued (in shares) | 122,262,403 | 119,338,925 |
Common stock outstanding (in shares) | 122,262,403 | 119,338,925 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating revenues | $ 875,563 | $ 877,782 |
Purchased gas cost | 296,868 | 342,165 |
Operation and maintenance expense | 152,245 | 138,600 |
Depreciation and amortization expense | 105,062 | 96,065 |
Taxes, other than income | 68,607 | 64,488 |
Operating income | 252,781 | 236,464 |
Other non-operating income (expense) | 4,887 | (7,723) |
Interest charges | 27,229 | 27,849 |
Income before income taxes | 230,439 | 200,892 |
Income tax expense | 51,766 | 43,246 |
Net income | $ 178,673 | $ 157,646 |
Net income per share - Basic (USD per share) | $ 1.47 | $ 1.38 |
Net income per share - Diluted (USD per share) | 1.47 | 1.38 |
Cash dividends per share (USD per share) | $ 0.575 | $ 0.525 |
Basic weighted average shares outstanding (in shares) | 121,113 | 113,800 |
Diluted weighted average shares outstanding (in shares) | 121,359 | 113,832 |
Other comprehensive income (loss), net of tax | ||
Net unrealized holding losses on available-for-sale securities, net of tax of $0 and $0 | $ (1) | $ 0 |
Cash flow hedges: | ||
Amortization and unrealized loss on interest rate agreements, net of tax of $311 and $(6,580) | 1,053 | (22,258) |
Total other comprehensive income (loss) | 1,052 | (22,258) |
Total comprehensive income | 179,725 | 135,388 |
Distribution segment | ||
Operating revenues | 827,840 | 838,181 |
Pipeline and storage segment | ||
Operating revenues | 47,723 | 39,601 |
Intersegment eliminations | ||
Operating revenues | (101,117) | (95,523) |
Purchased gas cost | (100,789) | (95,209) |
Operation and maintenance expense | (328) | (314) |
Depreciation and amortization expense | 0 | 0 |
Taxes, other than income | 0 | 0 |
Operating income | 0 | 0 |
Other non-operating income (expense) | 0 | 0 |
Interest charges | 0 | 0 |
Income before income taxes | 0 | 0 |
Income tax expense | 0 | 0 |
Net income | 0 | 0 |
Intersegment eliminations | Distribution segment | ||
Operating revenues | (664) | 654 |
Intersegment eliminations | Pipeline and storage segment | ||
Operating revenues | (100,453) | 94,869 |
Operating Segments | Distribution segment | ||
Operating revenues | 828,504 | 838,835 |
Purchased gas cost | 397,558 | 437,732 |
Operation and maintenance expense | 114,352 | 105,767 |
Depreciation and amortization expense | 76,074 | 69,709 |
Taxes, other than income | 60,243 | 56,190 |
Operating income | 180,277 | 169,437 |
Other non-operating income (expense) | 1,954 | (6,477) |
Interest charges | 16,362 | 18,210 |
Income before income taxes | 165,869 | 144,750 |
Income tax expense | 36,112 | 30,365 |
Net income | 129,757 | 114,385 |
Operating Segments | Pipeline and storage segment | ||
Operating revenues | 148,176 | 134,470 |
Purchased gas cost | 99 | (358) |
Operation and maintenance expense | 38,221 | 33,147 |
Depreciation and amortization expense | 28,988 | 26,356 |
Taxes, other than income | 8,364 | 8,298 |
Operating income | 72,504 | 67,027 |
Other non-operating income (expense) | 2,933 | (1,246) |
Interest charges | 10,867 | 9,639 |
Income before income taxes | 64,570 | 56,142 |
Income tax expense | 15,654 | 12,881 |
Net income | $ 48,916 | $ 43,261 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Net unrealized holding losses on available-for-sale securities, tax | $ 0 | $ 0 |
Amortization and unrealized loss on interest rate agreements, tax | $ 311 | $ (6,580) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows From Operating Activities | ||
Net income | $ 178,673 | $ 157,646 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 105,062 | 96,065 |
Deferred income taxes | 46,726 | 40,339 |
Other | (616) | 6,231 |
Net assets / liabilities from risk management activities | 4,143 | (2,458) |
Net change in operating assets and liabilities | (161,543) | (133,139) |
Net cash provided by operating activities | 172,445 | 164,684 |
Cash Flows From Investing Activities | ||
Capital expenditures | (529,186) | (416,404) |
Debt and equity securities activities, net | (1,602) | (963) |
Other, net | 2,553 | 2,074 |
Net cash used in investing activities | (528,235) | (415,293) |
Cash Flows From Financing Activities | ||
Net decrease in short-term debt | (464,915) | (575,780) |
Net proceeds from equity offering | 259,005 | 494,734 |
Issuance of common stock through stock purchase and employee retirement plans | 4,267 | 4,241 |
Proceeds from issuance of long-term debt | 799,450 | 596,994 |
Cash dividends paid | (69,557) | (58,722) |
Debt issuance costs | (7,738) | (6,432) |
Net cash provided by financing activities | 520,512 | 455,035 |
Net increase in cash and cash equivalents | 164,722 | 204,426 |
Cash and cash equivalents at beginning of period | 24,550 | 13,771 |
Cash and cash equivalents at end of period | $ 189,272 | $ 218,197 |
Nature of Business
Nature of Business | 3 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business Atmos Energy Corporation (“Atmos Energy” or the “Company”) and its subsidiaries are engaged in the regulated natural gas distribution and pipeline and storage businesses. Our distribution business is subject to federal and state regulation and/or regulation by local authorities in each of the states in which our regulated divisions and subsidiaries operate. Our distribution business delivers natural gas through sales and transportation arrangements to over three million residential, commercial, public authority and industrial customers through our six regulated distribution divisions, which at December 31, 2019 , covered service areas located in eight states. Our pipeline and storage business, which is also subject to federal and state regulations, includes the transportation of natural gas to our Texas and Louisiana distribution systems and the management of our underground storage facilities used to support our distribution business in various states. |
Unaudited Financial Information
Unaudited Financial Information | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Unaudited Financial Information | Unaudited Financial Information These consolidated interim-period financial statements have been prepared in accordance with accounting principles generally accepted in the United States on the same basis, aside from accounting policy changes noted below, as those used for the Company’s audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . In the opinion of management, all material adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been made to the unaudited consolidated interim-period financial statements. These consolidated interim-period financial statements are condensed as permitted by the instructions to Form 10-Q and should be read in conjunction with the audited consolidated financial statements of Atmos Energy Corporation included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . Because of seasonal and other factors, the results of operations for the three -month period ended December 31, 2019 are not indicative of our results of operations for the full 2020 fiscal year, which ends September 30, 2020 . No events have occurred subsequent to the balance sheet date that would require recognition or disclosure in the condensed consolidated financial statements. Significant accounting policies Our accounting policies are described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . Accounting pronouncements adopted in fiscal 2020 In February 2016, the Financial Accounting Standards Board (FASB) issued a comprehensive new leasing standard that requires lessees to recognize a lease liability and a right-of-use (ROU) asset for all leases, including operating leases on its balance sheet. The new standard was effective for us beginning on October 1, 2019. See Note 6 to the unaudited condensed consolidated financial statements for further details regarding our adoption of the new lease standard and the related disclosures. Accounting pronouncements that will be effective after fiscal 2020 In December 2019, the FASB issued new guidance related to accounting for income taxes which removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocations and calculating income taxes in interim periods. The new standard also adds guidance to reduce complexity in certain areas, such as recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The new standard will be effective for us beginning on October 1, 2021; early adoption is permitted. We are currently evaluating the potential impact of this new guidance on our financial position, results of operations and cash flows. In June 2016, the FASB issued new guidance which will require credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model. Under this model, entities will estimate credit losses over the entire contractual term of the instrument from the date of initial recognition of that instrument. In contrast, current U.S. GAAP is based on an incurred loss model that delays recognition of credit losses until it is probable the loss has been incurred. The new guidance also introduces a new impairment recognition model for available-for-sale debt securities that will require credit losses to be recorded through an allowance account. The new standard will be effective for us beginning on October 1, 2020; early adoption is permitted. We are currently evaluating the potential impact of this new guidance on our financial position, results of operations and cash flows. Regulatory assets and liabilities Accounting principles generally accepted in the United States require cost-based, rate-regulated entities that meet certain criteria to reflect the authorized recovery of costs due to regulatory decisions in their financial statements. As a result, certain costs are permitted to be capitalized rather than expensed because they can be recovered through rates. We record certain costs as regulatory assets when future recovery through customer rates is considered probable. Regulatory liabilities are recorded when it is probable that revenues will be reduced for amounts that will be credited to customers through the ratemaking process. Substantially all of our regulatory assets are recorded as a component of deferred charges and other assets and our regulatory liabilities are recorded as a component of other current liabilities and deferred credits and other liabilities. Deferred gas costs are recorded either in other current assets or liabilities and our regulatory excess deferred taxes and regulatory cost of removal obligation are reported separately. Significant regulatory assets and liabilities as of December 31, 2019 and September 30, 2019 included the following: December 31, September 30, (In thousands) Regulatory assets: Pension and postretirement benefit costs $ 83,783 $ 86,089 Infrastructure mechanisms (1) 108,997 131,894 Deferred gas costs 10,386 23,766 Recoverable loss on reacquired debt 6,102 6,551 Deferred pipeline record collection costs 27,414 26,418 Rate case costs 1,052 1,346 Other 4,324 8,483 $ 242,058 $ 284,547 Regulatory liabilities: Regulatory excess deferred taxes (2) $ 721,049 $ 726,307 Regulatory cost of service reserve (3) 4,747 5,238 Regulatory cost of removal obligation 519,538 528,893 Deferred gas costs 42,142 14,112 Asset retirement obligation 17,054 17,054 APT annual adjustment mechanism 72,732 78,402 Other 17,755 16,120 $ 1,395,017 $ 1,386,126 (1) Infrastructure mechanisms in Texas and Louisiana allow for the deferral of all eligible expenses associated with capital expenditures incurred pursuant to these rules, including the recording of interest on deferred expenses until the next rate proceeding (rate case or annual rate filing), at which time investment and costs would be recoverable through base rates. (2) The Tax Cuts and Jobs Act of 2017 (the "TCJA") resulted in the remeasurement of the net deferred tax liability included in our rate base. Of this amount, $21.7 million as of December 31, 2019 and $21.2 million as of September 30, 2019 is recorded in other current liabilities. These liabilities are being returned to customers in most of our jurisdictions on a provisional basis over 15 to 46 years until formal orders establish the final refund periods. (3) Effective January 1, 2018, regulators in each of our service areas required us to establish a regulatory liability for the difference in recoverable federal taxes included in revenues based on the former 35% federal statutory rate and the new 21% |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We manage and review our consolidated operations through the following reportable segments: • The distribution segment is primarily comprised of our regulated natural gas distribution and related sales operations in eight states. • The pipeline and storage segment is comprised primarily of the pipeline and storage operations of our Atmos Pipeline-Texas division and our natural gas transmission operations in Louisiana. The accounting policies of the segments are the same as those described in the summary of significant accounting policies found in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . Income statements and capital expenditures for the three months ended December 31, 2019 and 2018 by segment are presented in the following tables: Three Months Ended December 31, 2019 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Operating revenues from external parties $ 827,840 $ 47,723 $ — $ 875,563 Intersegment revenues 664 100,453 (101,117 ) — Total operating revenues 828,504 148,176 (101,117 ) 875,563 Purchased gas cost 397,558 99 (100,789 ) 296,868 Operation and maintenance expense 114,352 38,221 (328 ) 152,245 Depreciation and amortization expense 76,074 28,988 — 105,062 Taxes, other than income 60,243 8,364 — 68,607 Operating income 180,277 72,504 — 252,781 Other non-operating income 1,954 2,933 — 4,887 Interest charges 16,362 10,867 — 27,229 Income before income taxes 165,869 64,570 — 230,439 Income tax expense 36,112 15,654 — 51,766 Net income $ 129,757 $ 48,916 $ — $ 178,673 Capital expenditures $ 404,247 $ 124,939 $ — $ 529,186 Three Months Ended December 31, 2018 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Operating revenues from external parties $ 838,181 $ 39,601 $ — $ 877,782 Intersegment revenues 654 94,869 (95,523 ) — Total operating revenues 838,835 134,470 (95,523 ) 877,782 Purchased gas cost 437,732 (358 ) (95,209 ) 342,165 Operation and maintenance expense 105,767 33,147 (314 ) 138,600 Depreciation and amortization expense 69,709 26,356 — 96,065 Taxes, other than income 56,190 8,298 — 64,488 Operating income 169,437 67,027 — 236,464 Other non-operating expense (6,477 ) (1,246 ) — (7,723 ) Interest charges 18,210 9,639 — 27,849 Income before income taxes 144,750 56,142 — 200,892 Income tax expense 30,365 12,881 — 43,246 Net income $ 114,385 $ 43,261 $ — $ 157,646 Capital expenditures $ 302,545 $ 113,859 $ — $ 416,404 Balance sheet information at December 31, 2019 and September 30, 2019 by segment is presented in the following tables: December 31, 2019 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Property, plant and equipment, net $ 9,083,765 $ 3,166,658 $ — $ 12,250,423 Total assets $ 13,599,293 $ 3,389,655 $ (2,600,823 ) $ 14,388,125 September 30, 2019 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Property, plant and equipment, net $ 8,737,590 $ 3,050,079 $ — $ 11,787,669 Total assets $ 12,579,741 $ 3,279,323 $ (2,491,445 ) $ 13,367,619 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share We use the two-class method of computing earnings per share because we have participating securities in the form of non-vested restricted stock units with a nonforfeitable right to dividend equivalents, for which vesting is predicated solely on the passage of time. The calculation of earnings per share using the two-class method excludes income attributable to these participating securities from the numerator and excludes the dilutive impact of those shares from the denominator. Basic weighted average shares outstanding is calculated based upon the weighted average number of common shares outstanding during the periods presented. Also, this calculation includes fully vested stock awards that have not yet been issued as common stock. Additionally, the weighted average shares outstanding for diluted EPS includes the incremental effects of the forward sale agreements, discussed in Note 8 to the unaudited condensed consolidated financial statements, when the impact is dilutive. Basic and diluted earnings per share for the three months ended December 31, 2019 and 2018 are calculated as follows: Three Months Ended December 31 2019 2018 (In thousands, except per share amounts) Basic Earnings Per Share Net income $ 178,673 $ 157,646 Less: Income allocated to participating securities 136 135 Income available to common shareholders $ 178,537 $ 157,511 Basic weighted average shares outstanding 121,113 113,800 Net income per share — Basic $ 1.47 $ 1.38 Diluted Earnings Per Share Income available to common shareholders $ 178,537 $ 157,511 Effect of dilutive shares — — Income available to common shareholders $ 178,537 $ 157,511 Basic weighted average shares outstanding 121,113 113,800 Dilutive shares 246 32 Diluted weighted average shares outstanding 121,359 113,832 Net income per share - Diluted $ 1.47 $ 1.38 |
Revenue
Revenue | 3 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenue Our revenue recognition policy is fully described in Note 2 to the financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . The following tables disaggregate our revenue from contracts with customers by customer type and segment and provides a reconciliation to total operating revenues, including intersegment revenues, for the three months ended December 31, 2019 and 2018 . Three Months Ended December 31, 2019 Distribution Pipeline and Storage (In thousands) Gas sales revenues: Residential $ 552,076 $ — Commercial 211,314 — Industrial 24,925 — Public authority and other 13,022 — Total gas sales revenues 801,337 — Transportation revenues 26,640 152,010 Miscellaneous revenues 6,786 5,155 Revenues from contracts with customers 834,763 157,165 Alternative revenue program revenues (6,751 ) (8,989 ) Other revenues 492 — Total operating revenues $ 828,504 $ 148,176 Three Months Ended December 31, 2018 Distribution Pipeline and Storage (In thousands) Gas sales revenues: Residential $ 547,928 $ — Commercial 218,938 — Industrial 34,537 — Public authority and other 13,285 — Total gas sales revenues 814,688 — Transportation revenues 25,400 147,424 Miscellaneous revenues 6,950 1,682 Revenues from contracts with customers 847,038 149,106 Alternative revenue program revenues (8,739 ) (14,636 ) Other revenues 536 — Total operating revenues $ 838,835 $ 134,470 |
Leases
Leases | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We adopted the provisions of the new lease accounting standard beginning on October 1, 2019, using the optional transition method, which allows us to apply the provisions of the new standard to all leases that existed as of the date of adoption. Therefore, results for reporting periods beginning on October 1, 2019 are presented under the new lease accounting standard and prior periods are presented under the former lease accounting standard. The new guidance included several practical expedients to facilitate the implementation of the new standard. The following summarizes the practical expedients we used to implement the standard. • We elected to bundle our lease and non-lease components as a single component for all asset classes. • We elected not to perform the following: ◦ Evaluate existing or expired land easements prior to October 1, 2019 to determine if they are leases. ◦ Include short-term leases in the calculation of our lease liability. ◦ Evaluate existing or expired contracts to determine if they are leases. ◦ Assess lease classification for existing or expired leases. ◦ Review initial direct costs for existing leases. ◦ Use hindsight in order to determine the lease term or impairment of our ROU assets. Upon adoption of this new guidance, we recorded ROU assets and lease liabilities of $231.3 million . Additionally, we reclassified a net $6.5 million of accrued and prepaid lease costs to the ROU asset and $2.5 million related to an existing finance lease from deferred credits and other liabilities to long-term debt. Implementation of the new lease accounting guidance had no material impact on our condensed consolidated statements of comprehensive income or our condensed consolidated statements of cash flows. Additionally, we did not record a cumulative-effect adjustment to retained earnings on the opening balance sheet. New Lease Accounting Policy We determine if an arrangement is a lease at the inception of the agreement based on the terms and conditions in the contract. A contract contains a lease if there is an identified asset and we have the right to control the asset. We are the lessee for substantially all of our leasing activity, which primarily includes operating leases for office and warehouse space, towers, vehicles and heavy equipment used in our operations. We are also a lessee in a finance lease for a service center. We record a lease liability and a corresponding ROU asset for all of our leases with a term greater than 12 months. For lease contracts containing renewal and termination options, we include the option period in the lease term when it is reasonably certain the option will be exercised. We most frequently assume renewal options at the inception of the arrangement for our tower and fleet leases, based on our anticipated use of the assets. Real estate leases that contain a renewal option are evaluated on a lease-by-lease basis to determine if the option period should be included in the lease term. Currently, we have not included material renewal options for real estate leases in our ROU asset or lease liability. The following table presents our weighted average remaining lease term for our leases. December 31, 2019 Weighted average remaining lease term (years) Finance lease 19.00 Operating leases 10.78 The lease liability represents the present value of all lease payments over the lease term. The discount rate used to determine the present value of the lease liability is the rate implicit in the lease unless that rate cannot be readily determined. We use the implicit rate stated in the agreement to determine the lease liability for our fleet leases. We use our corporate collateralized incremental borrowing rate as the discount rate for all other lease agreements. This rate is appropriate because we believe it represents the rate we would have incurred to borrow funds to acquire the leased asset over a similar term. We calculated this rate using a combination of inputs, including our current credit rating, quoted market prices of interest rates for our publicly traded unsecured debt, observable market yield curve data for peer companies with a credit rating one notch higher than our current credit rating and the lease term. The following table represents our weighted average discount rate at December 31, 2019: December 31, 2019 Weighted average discount rate Finance lease 9.57 % Operating leases 2.91 % The ROU asset represents the right to use the underlying asset for the lease term, and is equal to the lease liability, adjusted for prepaid or accrued lease payments and any lease incentives that have been paid to us or when we are reasonably certain to incur costs equal to or greater than the allowance defined in the contract. Variable payments included in our leasing arrangements are expensed in the period in which the obligation for these payments is incurred. Variable payments are dependent on usage, output or may vary for other reasons. Most of our variable lease expense is related to tower leases that have escalating payments based on changes to a stated CPI index, and usage of certain office equipment. We have not provided material residual value guarantees for our leases, nor do our leases contain material restrictions or covenants. Lease costs for the three months ended December 31, 2019 are presented in the table below. These costs include both amounts recognized in expense and amounts capitalized. For the three months ended December 31, 2019, we did not have material short-term lease costs or variable lease costs. Three Months Ended December 31, 2019 (In thousands) Finance lease cost $ 73 Operating lease cost 9,925 Total lease cost $ 9,998 Our ROU assets and lease liabilities are presented as follows on the condensed consolidated balance sheets (unaudited): Balance Sheet Classification December 31, 2019 (In thousands) Assets Finance lease Net Property, Plant and Equipment $ 2,522 Operating leases Deferred charges and other assets 223,486 Total right-of-use assets $ 226,008 Liabilities Current Finance lease Current maturities of long-term debt $ 50 Operating leases Other current liabilities 30,099 Noncurrent Finance lease Long-term debt 2,484 Operating leases Deferred credits and other liabilities 200,997 Total lease liabilities $ 233,630 Other pertinent information related to leases was as follows. During the three months ended December 31, 2019, amounts paid in cash for our finance lease were not material, nor did we enter into any new finance leases. Three Months Ended December 31, 2019 (In thousands) Cash paid amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ 8,840 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 6,812 Maturities of our lease liabilities as of December 31, 2019, presented on a rolling 12-month basis, were as follows: Total Finance Lease Operating Leases (In thousands) Year 1 $ 35,719 $ 244 $ 35,475 Year 2 35,954 249 35,705 Year 3 32,230 254 31,976 Year 4 27,421 259 27,162 Year 5 18,981 264 18,717 Thereafter 127,745 4,222 123,523 Total lease payments 278,050 5,492 272,558 Less: Imputed interest 44,420 2,958 41,462 Total $ 233,630 $ 2,534 $ 231,096 Reported as of December 31, 2019 Short-term lease liabilities $ 30,149 $ 50 $ 30,099 Long-term lease liabilities 203,481 2,484 200,997 Total lease liabilities $ 233,630 $ 2,534 $ 231,096 Disclosures Related to Prior Periods The future minimum lease payments as September 30, 2019 were as follows: Operating Leases (1) Capital Lease (In thousands) 2020 $ 21,017 $ 243 2021 20,416 248 2022 19,370 253 2023 18,071 258 2024 15,718 263 Thereafter 105,544 4,343 Total minimum lease payments $ 200,136 5,608 Less amount representing interest 3,018 Present value of net minimum lease payments $ 2,590 (1) Future minimum lease payments do not include amounts for fleet leases and other de minimis items that can be renewed beyond the initial lease term. The Company anticipates renewing the leases beyond the initial term, but the anticipated payments associated with the renewals do not meet the definition of expected minimum lease payments and therefore are not included above. Expected payments are $17.6 million in 2020, $18.0 million in 2021, $11.8 million in 2022, $8.5 million in 2023, $5.4 million 2024 and $2.7 million thereafter. Consolidated lease and rental expense for the three months ended December 31, 2018 was $10.0 million |
Leases | Leases We adopted the provisions of the new lease accounting standard beginning on October 1, 2019, using the optional transition method, which allows us to apply the provisions of the new standard to all leases that existed as of the date of adoption. Therefore, results for reporting periods beginning on October 1, 2019 are presented under the new lease accounting standard and prior periods are presented under the former lease accounting standard. The new guidance included several practical expedients to facilitate the implementation of the new standard. The following summarizes the practical expedients we used to implement the standard. • We elected to bundle our lease and non-lease components as a single component for all asset classes. • We elected not to perform the following: ◦ Evaluate existing or expired land easements prior to October 1, 2019 to determine if they are leases. ◦ Include short-term leases in the calculation of our lease liability. ◦ Evaluate existing or expired contracts to determine if they are leases. ◦ Assess lease classification for existing or expired leases. ◦ Review initial direct costs for existing leases. ◦ Use hindsight in order to determine the lease term or impairment of our ROU assets. Upon adoption of this new guidance, we recorded ROU assets and lease liabilities of $231.3 million . Additionally, we reclassified a net $6.5 million of accrued and prepaid lease costs to the ROU asset and $2.5 million related to an existing finance lease from deferred credits and other liabilities to long-term debt. Implementation of the new lease accounting guidance had no material impact on our condensed consolidated statements of comprehensive income or our condensed consolidated statements of cash flows. Additionally, we did not record a cumulative-effect adjustment to retained earnings on the opening balance sheet. New Lease Accounting Policy We determine if an arrangement is a lease at the inception of the agreement based on the terms and conditions in the contract. A contract contains a lease if there is an identified asset and we have the right to control the asset. We are the lessee for substantially all of our leasing activity, which primarily includes operating leases for office and warehouse space, towers, vehicles and heavy equipment used in our operations. We are also a lessee in a finance lease for a service center. We record a lease liability and a corresponding ROU asset for all of our leases with a term greater than 12 months. For lease contracts containing renewal and termination options, we include the option period in the lease term when it is reasonably certain the option will be exercised. We most frequently assume renewal options at the inception of the arrangement for our tower and fleet leases, based on our anticipated use of the assets. Real estate leases that contain a renewal option are evaluated on a lease-by-lease basis to determine if the option period should be included in the lease term. Currently, we have not included material renewal options for real estate leases in our ROU asset or lease liability. The following table presents our weighted average remaining lease term for our leases. December 31, 2019 Weighted average remaining lease term (years) Finance lease 19.00 Operating leases 10.78 The lease liability represents the present value of all lease payments over the lease term. The discount rate used to determine the present value of the lease liability is the rate implicit in the lease unless that rate cannot be readily determined. We use the implicit rate stated in the agreement to determine the lease liability for our fleet leases. We use our corporate collateralized incremental borrowing rate as the discount rate for all other lease agreements. This rate is appropriate because we believe it represents the rate we would have incurred to borrow funds to acquire the leased asset over a similar term. We calculated this rate using a combination of inputs, including our current credit rating, quoted market prices of interest rates for our publicly traded unsecured debt, observable market yield curve data for peer companies with a credit rating one notch higher than our current credit rating and the lease term. The following table represents our weighted average discount rate at December 31, 2019: December 31, 2019 Weighted average discount rate Finance lease 9.57 % Operating leases 2.91 % The ROU asset represents the right to use the underlying asset for the lease term, and is equal to the lease liability, adjusted for prepaid or accrued lease payments and any lease incentives that have been paid to us or when we are reasonably certain to incur costs equal to or greater than the allowance defined in the contract. Variable payments included in our leasing arrangements are expensed in the period in which the obligation for these payments is incurred. Variable payments are dependent on usage, output or may vary for other reasons. Most of our variable lease expense is related to tower leases that have escalating payments based on changes to a stated CPI index, and usage of certain office equipment. We have not provided material residual value guarantees for our leases, nor do our leases contain material restrictions or covenants. Lease costs for the three months ended December 31, 2019 are presented in the table below. These costs include both amounts recognized in expense and amounts capitalized. For the three months ended December 31, 2019, we did not have material short-term lease costs or variable lease costs. Three Months Ended December 31, 2019 (In thousands) Finance lease cost $ 73 Operating lease cost 9,925 Total lease cost $ 9,998 Our ROU assets and lease liabilities are presented as follows on the condensed consolidated balance sheets (unaudited): Balance Sheet Classification December 31, 2019 (In thousands) Assets Finance lease Net Property, Plant and Equipment $ 2,522 Operating leases Deferred charges and other assets 223,486 Total right-of-use assets $ 226,008 Liabilities Current Finance lease Current maturities of long-term debt $ 50 Operating leases Other current liabilities 30,099 Noncurrent Finance lease Long-term debt 2,484 Operating leases Deferred credits and other liabilities 200,997 Total lease liabilities $ 233,630 Other pertinent information related to leases was as follows. During the three months ended December 31, 2019, amounts paid in cash for our finance lease were not material, nor did we enter into any new finance leases. Three Months Ended December 31, 2019 (In thousands) Cash paid amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ 8,840 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 6,812 Maturities of our lease liabilities as of December 31, 2019, presented on a rolling 12-month basis, were as follows: Total Finance Lease Operating Leases (In thousands) Year 1 $ 35,719 $ 244 $ 35,475 Year 2 35,954 249 35,705 Year 3 32,230 254 31,976 Year 4 27,421 259 27,162 Year 5 18,981 264 18,717 Thereafter 127,745 4,222 123,523 Total lease payments 278,050 5,492 272,558 Less: Imputed interest 44,420 2,958 41,462 Total $ 233,630 $ 2,534 $ 231,096 Reported as of December 31, 2019 Short-term lease liabilities $ 30,149 $ 50 $ 30,099 Long-term lease liabilities 203,481 2,484 200,997 Total lease liabilities $ 233,630 $ 2,534 $ 231,096 Disclosures Related to Prior Periods The future minimum lease payments as September 30, 2019 were as follows: Operating Leases (1) Capital Lease (In thousands) 2020 $ 21,017 $ 243 2021 20,416 248 2022 19,370 253 2023 18,071 258 2024 15,718 263 Thereafter 105,544 4,343 Total minimum lease payments $ 200,136 5,608 Less amount representing interest 3,018 Present value of net minimum lease payments $ 2,590 (1) Future minimum lease payments do not include amounts for fleet leases and other de minimis items that can be renewed beyond the initial lease term. The Company anticipates renewing the leases beyond the initial term, but the anticipated payments associated with the renewals do not meet the definition of expected minimum lease payments and therefore are not included above. Expected payments are $17.6 million in 2020, $18.0 million in 2021, $11.8 million in 2022, $8.5 million in 2023, $5.4 million 2024 and $2.7 million thereafter. Consolidated lease and rental expense for the three months ended December 31, 2018 was $10.0 million |
Debt
Debt | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The nature and terms of our debt instruments and credit facilities are described in detail in Note 6 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . Other than as described below, there were no material changes in the terms of our debt instruments during the three months ended December 31, 2019 . Long-term debt at December 31, 2019 and September 30, 2019 consisted of the following: December 31, 2019 September 30, 2019 (In thousands) Unsecured 3.00% Senior Notes, due 2027 $ 500,000 $ 500,000 Unsecured 2.625% Senior Notes, due 2029 300,000 — Unsecured 5.95% Senior Notes, due 2034 200,000 200,000 Unsecured 5.50% Senior Notes, due 2041 400,000 400,000 Unsecured 4.15% Senior Notes, due 2043 500,000 500,000 Unsecured 4.125% Senior Notes, due 2044 750,000 750,000 Unsecured 4.30% Senior Notes, due 2048 600,000 600,000 Unsecured 4.125% Senior Notes, due 2049 450,000 450,000 Unsecured 3.375% Senior Notes, due 2049 500,000 — Medium-term note Series A, 1995-1, 6.67%, due 2025 10,000 10,000 Unsecured 6.75% Debentures, due 2028 150,000 150,000 Finance lease obligations (see Note 6) 2,534 — Total long-term debt 4,362,534 3,560,000 Less: Original issue (premium) / discount on unsecured senior notes and debentures 703 193 Debt issuance cost 37,496 30,355 Current maturities 50 — $ 4,324,285 $ 3,529,452 On October 2, 2019, we completed a public offering of $300 million of 2.625% senior notes due 2029 and $500 million of 3.375% senior notes due 2049. We received net proceeds from the offering, after the underwriting discount and offering expenses, of $791.7 million , that were used for general corporate purposes, including the repayment of borrowings pursuant to our commercial paper program. The effective interest rate on these notes is 2.72% and 3.42% , after giving effect to the offering costs. We utilize short-term debt to provide cost-effective, short-term financing until it can be replaced with a balance of long-term debt and equity financing that achieves the Company’s desired capital structure with an equity-to-total-capitalization ratio between 50% and 60% , inclusive of long-term and short-term debt. Our short-term borrowing requirements are driven primarily by construction work in progress and the seasonal nature of the natural gas business. Changes in the price of natural gas and the amount of natural gas we need to supply our customers’ needs could significantly affect our borrowing requirements. Our short-term borrowings typically reach their highest levels in the winter months. Currently, our short-term borrowing requirements are satisfied through a combination of a $1.5 billion commercial paper program and three committed revolving credit facilities with third-party lenders that provide approximately $1.5 billion of total working capital funding. The primary source of our funding is our commercial paper program, which is supported by a five-year unsecured $1.5 billion credit facility that expires on September 25, 2023. The facility bears interest at a base rate or at a LIBOR-based rate for the applicable interest period, plus a margin ranging from zero percent to 1.25 percent , based on the Company’s credit ratings. Additionally, the facility contains a $250 million accordion feature, which provides the opportunity to increase the total committed loan to $1.75 billion . At December 31, 2019 , there were no amounts outstanding under our commercial paper program. At September 30, 2019 , a total of $464.9 million was outstanding. Additionally, we have a $25 million 364-day unsecured facility and a $10 million 364-day unsecured revolving credit facility, which is used primarily to issue letters of credit. At December 31, 2019 , there were no borrowings outstanding under either of these facilities; however, outstanding letters of credit reduced the total amount available to us under our $10 million facility to $4.4 million . The availability of funds under these credit facilities is subject to conditions specified in the respective credit agreements, all of which we currently satisfy. These conditions include our compliance with financial covenants and the continued accuracy of representations and warranties contained in these agreements. We are required by the financial covenants in each of these facilities to maintain, at the end of each fiscal quarter, a ratio of total-debt-to-total-capitalization of no greater than 70 percent . At December 31, 2019 , our total-debt-to-total-capitalization ratio, as defined in the agreements, was 42 percent . In addition, both the interest margin and the fee that we pay on unused amounts under certain of these facilities are subject to adjustment depending upon our credit ratings. These credit facilities and our public indentures contain usual and customary covenants for our business, including covenants substantially limiting liens, substantial asset sales and mergers. Additionally, our public debt indentures relating to our senior notes and debentures, as well as certain of our revolving credit agreements, each contain a default provision that is triggered if outstanding indebtedness arising out of any other credit agreements in amounts ranging from in excess of $15 million to in excess of $100 million becomes due by acceleration or if not paid at maturity. We were in compliance with all of our debt covenants as of December 31, 2019 . If we were unable to comply with our debt covenants, we would likely be required to repay our outstanding balances on demand, provide additional collateral or take other corrective actions. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity and Accumulated Other Comprehensive Income | Shareholders' Equity The following tables present a reconciliation of changes in stockholders' equity for the three months ended December 31, 2019 and 2018 . Common stock Additional Accumulated Retained Total Number of Stated (In thousands, except share and per share data) Balance, September 30, 2019 119,338,925 $ 597 $ 3,712,194 $ (114,583 ) $ 2,152,015 $ 5,750,223 Net income — — — — 178,673 178,673 Other comprehensive income — — — 1,052 — 1,052 Cash dividends ($0.575 per share) — — — — (69,557 ) (69,557 ) Common stock issued: Public and other stock offerings 2,758,929 13 263,259 — — 263,272 Stock-based compensation plans 164,549 1 4,111 — — 4,112 Balance, December 31, 2019 122,262,403 $ 611 $ 3,979,564 $ (113,531 ) $ 2,261,131 $ 6,127,775 Common stock Additional Accumulated Retained Total Number of Stated (In thousands, except share and per share data) Balance, September 30, 2018 111,273,683 $ 556 $ 2,974,926 $ (83,647 ) $ 1,878,116 $ 4,769,951 Net income — — — — 157,646 157,646 Other comprehensive loss — — — (22,258 ) — (22,258 ) Cash dividends ($0.525 per share) — — — — (58,722 ) (58,722 ) Cumulative effect of accounting change — — — (8,210 ) 8,210 — Common stock issued: Public and other stock offerings 5,434,812 27 498,948 — — 498,975 Stock-based compensation plans 184,464 1 2,602 — — 2,603 Balance, December 31, 2018 116,892,959 $ 584 $ 3,476,476 $ (114,115 ) $ 1,985,250 $ 5,348,195 Shelf Registration, At-the-Market Equity Sales Program and Equity Issuances We have a shelf registration statement on file with the Securities and Exchange Commission (SEC) that allows us to issue up to $3.0 billion in common stock and/or debt securities. At December 31, 2019 , approximately $0.5 billion of securities remained available for issuance under the shelf registration statement, which expires November 13, 2021. We also have an at-the-market (ATM) equity sales program that allows us to issue and sell shares of our common stock up to an aggregate offering price of $500 million (including shares of common stock that may be sold pursuant to a forward sale agreement entered into in connection with the ATM equity sales program), which expires November 13, 2021. During the three months ended December 31, 2019 , we executed forward sales under the ATM with various forward sellers who borrowed and sold 339,574 shares of our common stock for $36.8 million . Additionally, during the three months ended December 31, 2019, we settled 2,234,871 shares that had been sold during fiscal 2019 under the ATM for net proceeds of $214.6 million . As of December 31, 2019 , the ATM program had approximately $38 million of equity available for issuance. On November 30, 2018, we filed a prospectus supplement under the registration statement relating to an underwriting agreement to sell 5,390,836 shares of our common stock for $500 million . After expenses, net proceeds from the offering were $494.1 million . Concurrently, we entered into separate forward sale agreements with two forward sellers who borrowed and sold 2,668,464 shares of our common stock for $247.5 million . During the three months ended December 31, 2019, we settled the remaining 485,189 shares under these agreements for net proceeds of $44.4 million . If we had settled all shares that remain available under our various forward sale agreements as of December 31, 2019 , we would have received proceeds of $239.6 million , based on a net price of $106.51 per share. The following table presents information relevant to the forward sales during the first quarter of fiscal 2020. Maturity September 30, 2020 March 31, 2020 Total Shares Price (1) Shares Price (1) Shares Price (1) Available Balance 2,474,162 2,155,698 4,629,860 Q1 Issuance 339,574 $ 107.40 — $ — 339,574 $ 107.40 Q1 Settlement (564,362 ) $ 100.21 (2,155,698 ) $ 93.88 (2,720,060 ) $ 95.22 Available Balance 2,249,374 — 2,249,374 (1) Issued price as disclosed is calculated as the weighted average price for activity occurring during the quarter. Accumulated Other Comprehensive Income (Loss) We record deferred gains (losses) in AOCI related to available-for-sale debt securities and interest rate agreement cash flow hedges. Deferred gains (losses) for our available-for-sale debt securities are recognized in earnings upon settlement, while deferred gains (losses) related to our interest rate agreement cash flow hedges are recognized in earnings as they are amortized. The following tables provide the components of our accumulated other comprehensive income (loss) balances, net of the related tax effects allocated to each component of other comprehensive income (loss). Available- for-Sale Securities Interest Rate Agreement Cash Flow Hedges Total (In thousands) September 30, 2019 $ 132 $ (114,715 ) $ (114,583 ) Other comprehensive loss before reclassifications (1 ) — (1 ) Amounts reclassified from accumulated other comprehensive income — 1,053 1,053 Net current-period other comprehensive income (loss) (1 ) 1,053 1,052 December 31, 2019 $ 131 $ (113,662 ) $ (113,531 ) Available- for-Sale Securities Interest Rate Agreement Cash Flow Hedges Total (In thousands) September 30, 2018 $ 8,124 $ (91,771 ) $ (83,647 ) Other comprehensive loss before reclassifications — (22,716 ) (22,716 ) Amounts reclassified from accumulated other comprehensive income — 458 458 Net current-period other comprehensive loss — (22,258 ) (22,258 ) Cumulative effect of accounting change (8,210 ) — (8,210 ) December 31, 2018 $ (86 ) $ (114,029 ) $ (114,115 ) |
Interim Pension and Other Postr
Interim Pension and Other Postretirement Benefit Plan Information | 3 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits, Description [Abstract] | |
Interim Pension and Other Postretirement Benefit Plan Information | Interim Pension and Other Postretirement Benefit Plan Information The components of our net periodic pension cost for our pension and other postretirement benefit plans for the three months ended December 31, 2019 and 2018 are presented in the following tables. Most of these costs are recoverable through our tariff rates. A portion of these costs is capitalized into our rate base or deferred as a regulatory asset or liability. The remaining costs are recorded as a component of operation and maintenance expense or other non-operating expense. Three Months Ended December 31 Pension Benefits Other Benefits 2019 2018 2019 2018 (In thousands) Components of net periodic pension cost: Service cost $ 4,653 $ 4,045 $ 3,366 $ 2,702 Interest cost (1) 5,843 6,799 2,653 2,961 Expected return on assets (1) (7,079 ) (7,113 ) (2,625 ) (2,665 ) Amortization of prior service cost (credit) (1) (58 ) (58 ) 43 43 Amortization of actuarial (gain) loss (1) (1,271 ) 1,608 (334 ) (2,045 ) Net periodic pension cost $ 2,088 $ 5,281 $ 3,103 $ 996 (1) The components of net periodic cost other than the service cost component are included in the line item other non-operating expense in the condensed consolidated statement of comprehensive income or are capitalized on the condensed consolidated balance sheets as a regulatory asset or liability, as described in Note 2 to the financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation and Environmental Matters In the normal course of business, we are subject to various legal and regulatory proceedings. For such matters, we record liabilities when they are considered probable and estimable, based on currently available facts, our historical experience and our estimates of the ultimate outcome or resolution of the liability in the future. While the outcome of these proceedings is uncertain and a loss in excess of the amount we have accrued is possible though not reasonably estimable, it is the opinion of management that any amounts exceeding the accruals will not have a material adverse impact on our financial position, results of operations or cash flows. We maintain liability insurance for various risks associated with the operation of our natural gas pipelines and facilities, including for property damage and bodily injury. These liability insurance policies generally require us to be responsible for the first $1.0 million (self-insured retention) of each incident. The National Transportation Safety Board (NTSB) is investigating an incident that occurred at a Dallas, Texas residence on February 23, 2018 that resulted in one fatality and injuries to four other residents. Together with the Railroad Commission of Texas (RRC) and the Pipeline and Hazardous Materials Safety Administration, Atmos Energy is a party to the investigation and in that capacity is working closely with the NTSB to help determine the cause of this incident. We are a party to various other litigation and environmental-related matters or claims that have arisen in the ordinary course of our business. While the results of such litigation and response actions to such environmental-related matters or claims cannot be predicted with certainty, we continue to believe the final outcome of such litigation and matters or claims will not have a material adverse effect on our financial condition, results of operations or cash flows. Purchase Commitments Our distribution divisions maintain supply contracts with several vendors that generally cover a period of up to one year. Commitments for estimated base gas volumes are established under these contracts on a monthly basis at contractually negotiated prices. Commitments for incremental daily purchases are made as necessary during the month in accordance with the terms of the individual contract. Our Mid-Tex Division also maintains a limited number of long-term supply contracts to ensure a reliable source of gas for our customers in its service area, which obligate it to purchase specified volumes at prices indexed to natural gas hubs. These purchase commitment contracts are detailed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . At December 31, 2019 , we were committed to purchase 25.7 Bcf within one year and 1.0 Bcf within two to three years under indexed contracts. Rate Regulatory Proceedings Except for routine rate regulatory proceedings as discussed below, there were no material changes to rate regulatory proceedings for the three months ended December 31, 2019 . As of December 31, 2019 , five rate regulatory proceedings were in progress in some of our service areas. These proceedings are discussed in further detail below in Management’s Discussion and Analysis — Recent Ratemaking Developments |
Financial Instruments
Financial Instruments | 3 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments We currently use financial instruments to mitigate commodity price risk and in the past have also used financial instruments to mitigate interest rate risk. The objectives and strategies for using financial instruments and the related accounting for these financial instruments are fully described in Notes 2 and 14 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . During the three months ended December 31, 2019 , there were no material changes in our objectives, strategies and accounting for using financial instruments. Our financial instruments do not contain any credit-risk-related or other contingent features that could cause payments to be accelerated when our financial instruments are in net liability positions. The following summarizes those objectives and strategies. Commodity Risk Management Activities Our purchased gas cost adjustment mechanisms essentially insulate our distribution segment from commodity price risk; however, our customers are exposed to the effects of volatile natural gas prices. We manage this exposure through a combination of physical storage, fixed-price forward contracts and financial instruments, primarily over-the-counter swap and option contracts, in an effort to minimize the impact of natural gas price volatility on our customers during the winter heating season. We typically seek to hedge between 25 and 50 percent of anticipated heating season gas purchases using financial instruments. For the 2019 - 2020 heating season (generally October through March), in the jurisdictions where we are permitted to utilize financial instruments, we anticipate hedging approximately 49 percent , or 19.9 Bcf of the winter flowing gas requirements. We have not designated these financial instruments as hedges for accounting purposes. Interest Rate Risk Management Activities Historically, we managed interest rate risk by periodically entering into financial instruments to effectively fix the Treasury yield component of the interest cost associated with anticipated financings. As of December 31, 2019 , we had $113.7 million of net realized losses in AOCI associated with the settlement of financial instruments used to fix the Treasury yield component of the interest cost of financing various issuances of long-term debt and senior notes, which will be recognized as a component of interest expense over the life of the associated notes from the date of settlement. The remaining amortization periods for these settled amounts extend through fiscal 2049. Quantitative Disclosures Related to Financial Instruments The following tables present detailed information concerning the impact of financial instruments on our condensed consolidated balance sheet and statements of comprehensive income. As of December 31, 2019 , our financial instruments were comprised of both long and short commodity positions. A long position is a contract to purchase the commodity, while a short position is a contract to sell the commodity. As of December 31, 2019 , we had 14,530 MMcf of net long commodity contracts outstanding. These contracts have not been designated as hedges. Financial Instruments on the Balance Sheet The following tables present the fair value and balance sheet classification of our financial instruments as of December 31, 2019 and September 30, 2019 . The gross amounts of recognized assets and liabilities are netted within our unaudited condensed consolidated balance sheets to the extent that we have netting arrangements with our counterparties. However, for December 31, 2019 and September 30, 2019 , no gross amounts and no cash collateral were netted within our consolidated balance sheet. Balance Sheet Location Assets Liabilities (In thousands) December 31, 2019 Not Designated As Hedges: Commodity contracts Other current assets / Other current liabilities $ 1,213 $ (8,391 ) Commodity contracts Deferred charges and other assets / Deferred credits and other liabilities 158 (439 ) Total 1,371 (8,830 ) Gross / Net Financial Instruments $ 1,371 $ (8,830 ) Balance Sheet Location Assets Liabilities (In thousands) September 30, 2019 Not Designated As Hedges: Commodity contracts Other current assets / Other current liabilities $ 1,586 $ (4,552 ) Commodity contracts Deferred charges and other assets / Deferred credits and other liabilities 225 (1,249 ) Total 1,811 (5,801 ) Gross / Net Financial Instruments $ 1,811 $ (5,801 ) Impact of Financial Instruments on the Statement of Comprehensive Income Cash Flow Hedges As discussed above, in the past our distribution segment had interest rate agreements, which we designated as cash flow hedges at the time the agreements were executed. The net loss on settled interest rate agreements reclassified from AOCI into interest charges on our condensed consolidated statements of comprehensive income for the three months ended December 31, 2019 and 2018 was $1.4 million and $0.6 million . The following table summarizes the gains and losses arising from hedging transactions that were recognized as a component of other comprehensive income (loss), net of taxes, for the three months ended December 31, 2019 and 2018 . The amounts included in the table below exclude gains and losses arising from ineffectiveness because those amounts are immediately recognized in the statement of comprehensive income as incurred. Three Months Ended December 31 2019 2018 (In thousands) Increase (decrease) in fair value: Interest rate agreements $ — $ (22,716 ) Recognition of losses in earnings due to settlements: Interest rate agreements 1,053 458 Total other comprehensive income (loss) from hedging, net of tax $ 1,053 $ (22,258 ) Deferred gains (losses) recorded in AOCI associated with our interest rate agreements are recognized in earnings as they are amortized over the terms of the underlying debt instruments. The following amounts, net of deferred taxes, represent the expected recognition in earnings, as of December 31, 2019 , of the deferred losses recorded in AOCI associated with our financial instruments, based upon the fair values of these financial instruments at the date of settlement. Interest Rate Agreements (In thousands) Next twelve months $ (4,212 ) Thereafter (109,450 ) Total $ (113,662 ) Financial Instruments Not Designated as Hedges As discussed above, commodity contracts which are used in our distribution segment are not designated as hedges. However, there is no earnings impact on our distribution segment as a result of the use of these financial instruments because the gains and losses arising from the use of these financial instruments are recognized in the consolidated statement of comprehensive income as a component of purchased gas cost when the related costs are recovered through our rates and recognized in revenue. Accordingly, the impact of these financial instruments is excluded from this presentation. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We report certain assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We record cash and cash equivalents, accounts receivable and accounts payable at carrying value, which substantially approximates fair value due to the short-term nature of these assets and liabilities. For other financial assets and liabilities, we primarily use quoted market prices and other observable market pricing information to minimize the use of unobservable pricing inputs in our measurements when determining fair value. The methods used to determine fair value for our assets and liabilities are fully described in Note 2 to the financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . During the three months ended December 31, 2019 , there were no changes in these methods. Fair value measurements also apply to the valuation of our pension and postretirement plan assets. Current accounting guidance requires employers to annually disclose information about fair value measurements of the assets of a defined benefit pension or other postretirement plan. The fair value of these assets is presented in Note 8 to the financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . Quantitative Disclosures Financial Instruments The classification of our fair value measurements requires judgment regarding the degree to which market data is observable or corroborated by observable market data. Authoritative accounting literature establishes a fair value hierarchy that prioritizes the inputs used to measure fair value based on observable and unobservable data. The hierarchy categorizes the inputs into three levels, with the highest priority given to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1), with the lowest priority given to unobservable inputs (Level 3). The following tables summarize, by level within the fair value hierarchy, our assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2019 and September 30, 2019 . Assets and liabilities are categorized in their entirety based on the lowest level of input that is significant to the fair value measurement. Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) (1) Significant Other Unobservable Inputs (Level 3) Netting and Cash Collateral December 31, 2019 (In thousands) Assets: Financial instruments $ — $ 1,371 $ — $ — $ 1,371 Debt and equity securities Registered investment companies 44,468 — — — 44,468 Bond mutual funds 26,150 — — — 26,150 Bonds (2) — 32,055 — — 32,055 Money market funds — 1,453 — — 1,453 Total debt and equity securities 70,618 33,508 — — 104,126 Total assets $ 70,618 $ 34,879 $ — $ — $ 105,497 Liabilities: Financial instruments $ — $ 8,830 $ — $ — $ 8,830 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) (1) Significant Other Unobservable Inputs (Level 3) Netting and Cash Collateral September 30, 2019 (In thousands) Assets: Financial instruments $ — $ 1,811 $ — $ — $ 1,811 Debt and equity securities Registered investment companies 41,406 — — — 41,406 Bond mutual funds 25,966 — — — 25,966 Bonds (2) — 31,915 — — 31,915 Money market funds — 2,596 — — 2,596 Total debt and equity securities 67,372 34,511 — — 101,883 Total assets $ 67,372 $ 36,322 $ — $ — $ 103,694 Liabilities: Financial instruments $ — $ 5,801 $ — $ — $ 5,801 (1) Our Level 2 measurements consist of over-the-counter options and swaps, which are valued using a market-based approach in which observable market prices are adjusted for criteria specific to each instrument, such as the strike price, notional amount or basis differences, municipal and corporate bonds, which are valued based on the most recent available quoted market prices and money market funds that are valued at cost. (2) Our investments in bonds are considered available-for-sale debt securities in accordance with current accounting guidance. Debt and equity securities are comprised of our available-for-sale debt securities and our equity securities. We regularly evaluate the performance of our available-for-sale debt securities on an investment by investment basis for impairment, taking into consideration the investment’s purpose, volatility and current returns. If a determination is made that a decline in fair value is other than temporary, the related investment is written down to its estimated fair value and the other-than-temporary impairment is recognized in the statement of comprehensive income. At December 31, 2019 and September 30, 2019 , the amortized cost of our available-for-sale debt securities was $31.9 million and $31.7 million . At December 31, 2019 , we maintained investments in bonds that have contractual maturity dates ranging from January 2020 through February 2022. Other Fair Value Measures Our long-term debt is recorded at carrying value. The fair value of our long-term debt, excluding finance leases, is determined using third party market value quotations, which are considered Level 1 fair value measurements for debt instruments with a recent, observable trade or Level 2 fair value measurements for debt instruments where fair value is determined using the most recent available quoted market price. The carrying value of our finance lease materially approximates fair value. The following table presents the carrying value and fair value of our long-term debt, excluding finance leases, as of December 31, 2019 and September 30, 2019 : December 31, 2019 September 30, 2019 (In thousands) Carrying Amount $ 4,360,000 $ 3,560,000 Fair Value $ 4,927,756 $ 4,216,249 |
Concentration of Credit Risk
Concentration of Credit Risk | 3 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Concentration of Credit Risk Information regarding our concentration of credit risk is disclosed in Note 17 to the financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . During the three months ended December 31, 2019 , there were no material changes in our concentration of credit risk. |
Unaudited Financial Informati_2
Unaudited Financial Information (Policies) | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant accounting policies | Accounting pronouncements adopted in fiscal 2020 In February 2016, the Financial Accounting Standards Board (FASB) issued a comprehensive new leasing standard that requires lessees to recognize a lease liability and a right-of-use (ROU) asset for all leases, including operating leases on its balance sheet. The new standard was effective for us beginning on October 1, 2019. See Note 6 to the unaudited condensed consolidated financial statements for further details regarding our adoption of the new lease standard and the related disclosures. Accounting pronouncements that will be effective after fiscal 2020 In December 2019, the FASB issued new guidance related to accounting for income taxes which removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocations and calculating income taxes in interim periods. The new standard also adds guidance to reduce complexity in certain areas, such as recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The new standard will be effective for us beginning on October 1, 2021; early adoption is permitted. We are currently evaluating the potential impact of this new guidance on our financial position, results of operations and cash flows. In June 2016, the FASB issued new guidance which will require credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model. Under this model, entities will estimate credit losses over the entire contractual term of the instrument from the date of initial recognition of that instrument. In contrast, current U.S. GAAP is based on an incurred loss model that delays recognition of credit losses until it is probable the loss has been incurred. The new guidance also introduces a new impairment recognition model for available-for-sale debt securities that will require credit losses to be recorded through an allowance account. The new standard will be effective for us beginning on October 1, 2020; early adoption is permitted. We are currently evaluating the potential impact of this new guidance on our financial position, results of operations and cash flows. |
Regulatory assets and liabilities | Regulatory assets and liabilities Accounting principles generally accepted in the United States require cost-based, rate-regulated entities that meet certain criteria to reflect the authorized recovery of costs due to regulatory decisions in their financial statements. As a result, certain costs are permitted to be capitalized rather than expensed because they can be recovered through rates. We record certain costs as regulatory assets when future recovery through customer rates is considered probable. Regulatory liabilities are recorded when it is probable that revenues will be reduced for amounts that will be credited to customers through the ratemaking process. Substantially all of our regulatory assets are recorded as a component of deferred charges and other assets and our regulatory liabilities are recorded as a component of other current liabilities and deferred credits and other liabilities. Deferred gas costs are recorded either in other current assets or liabilities and our regulatory excess deferred taxes and regulatory cost of removal obligation are reported separately. |
Earnings Per Share | Earnings Per Share We use the two-class method of computing earnings per share because we have participating securities in the form of non-vested restricted stock units with a nonforfeitable right to dividend equivalents, for which vesting is predicated solely on the passage of time. The calculation of earnings per share using the two-class method excludes income attributable to these participating securities from the numerator and excludes the dilutive impact of those shares from the denominator. Basic weighted average shares outstanding is calculated based upon the weighted average number of common shares outstanding during the periods presented. Also, this calculation includes fully vested stock awards that have not yet been issued as common stock. Additionally, the weighted average shares outstanding for diluted EPS includes the incremental effects of the forward sale agreements, discussed in Note 8 |
Fair Value Measurements | Fair Value Measurements We report certain assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We record cash and cash equivalents, accounts receivable and accounts payable at carrying value, which substantially approximates fair value due to the short-term nature of these assets and liabilities. For other financial assets and liabilities, we primarily use quoted market prices and other observable market pricing information to minimize the use of unobservable pricing inputs in our measurements when determining fair value. The methods used to determine fair value for our assets and liabilities are fully described in Note 2 to the financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . During the three months ended December 31, 2019 , there were no changes in these methods. |
Lease Accounting | New Lease Accounting Policy We determine if an arrangement is a lease at the inception of the agreement based on the terms and conditions in the contract. A contract contains a lease if there is an identified asset and we have the right to control the asset. We are the lessee for substantially all of our leasing activity, which primarily includes operating leases for office and warehouse space, towers, vehicles and heavy equipment used in our operations. We are also a lessee in a finance lease for a service center. We record a lease liability and a corresponding ROU asset for all of our leases with a term greater than 12 months. For lease contracts containing renewal and termination options, we include the option period in the lease term when it is reasonably certain the option will be exercised. We most frequently assume renewal options at the inception of the arrangement for our tower and fleet leases, based on our anticipated use of the assets. Real estate leases that contain a renewal option are evaluated on a lease-by-lease basis to determine if the option period should be included in the lease term. Currently, we have not included material renewal options for real estate leases in our ROU asset or lease liability. The following table presents our weighted average remaining lease term for our leases. December 31, 2019 Weighted average remaining lease term (years) Finance lease 19.00 Operating leases 10.78 The lease liability represents the present value of all lease payments over the lease term. The discount rate used to determine the present value of the lease liability is the rate implicit in the lease unless that rate cannot be readily determined. We use the implicit rate stated in the agreement to determine the lease liability for our fleet leases. We use our corporate collateralized incremental borrowing rate as the discount rate for all other lease agreements. This rate is appropriate because we believe it represents the rate we would have incurred to borrow funds to acquire the leased asset over a similar term. We calculated this rate using a combination of inputs, including our current credit rating, quoted market prices of interest rates for our publicly traded unsecured debt, observable market yield curve data for peer companies with a credit rating one notch higher than our current credit rating and the lease term. The following table represents our weighted average discount rate at December 31, 2019: December 31, 2019 Weighted average discount rate Finance lease 9.57 % Operating leases 2.91 % The ROU asset represents the right to use the underlying asset for the lease term, and is equal to the lease liability, adjusted for prepaid or accrued lease payments and any lease incentives that have been paid to us or when we are reasonably certain to incur costs equal to or greater than the allowance defined in the contract. Variable payments included in our leasing arrangements are expensed in the period in which the obligation for these payments is incurred. Variable payments are dependent on usage, output or may vary for other reasons. Most of our variable lease expense is related to tower leases that have escalating payments based on changes to a stated CPI index, and usage of certain office equipment. We have not provided material residual value guarantees for our leases, nor do our leases contain material restrictions or covenants. |
Unaudited Financial Informati_3
Unaudited Financial Information (Table) | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Regulatory Assets | Significant regulatory assets and liabilities as of December 31, 2019 and September 30, 2019 included the following: December 31, September 30, (In thousands) Regulatory assets: Pension and postretirement benefit costs $ 83,783 $ 86,089 Infrastructure mechanisms (1) 108,997 131,894 Deferred gas costs 10,386 23,766 Recoverable loss on reacquired debt 6,102 6,551 Deferred pipeline record collection costs 27,414 26,418 Rate case costs 1,052 1,346 Other 4,324 8,483 $ 242,058 $ 284,547 Regulatory liabilities: Regulatory excess deferred taxes (2) $ 721,049 $ 726,307 Regulatory cost of service reserve (3) 4,747 5,238 Regulatory cost of removal obligation 519,538 528,893 Deferred gas costs 42,142 14,112 Asset retirement obligation 17,054 17,054 APT annual adjustment mechanism 72,732 78,402 Other 17,755 16,120 $ 1,395,017 $ 1,386,126 (1) Infrastructure mechanisms in Texas and Louisiana allow for the deferral of all eligible expenses associated with capital expenditures incurred pursuant to these rules, including the recording of interest on deferred expenses until the next rate proceeding (rate case or annual rate filing), at which time investment and costs would be recoverable through base rates. (2) The Tax Cuts and Jobs Act of 2017 (the "TCJA") resulted in the remeasurement of the net deferred tax liability included in our rate base. Of this amount, $21.7 million as of December 31, 2019 and $21.2 million as of September 30, 2019 is recorded in other current liabilities. These liabilities are being returned to customers in most of our jurisdictions on a provisional basis over 15 to 46 years until formal orders establish the final refund periods. (3) Effective January 1, 2018, regulators in each of our service areas required us to establish a regulatory liability for the difference in recoverable federal taxes included in revenues based on the former 35% federal statutory rate and the new 21% federal statutory rate for service provided on or after January 1, 2018. The period and timing of the return of this liability to utility customers is being determined by regulators in each of our jurisdictions. |
Schedule of Regulatory Liabilities | Significant regulatory assets and liabilities as of December 31, 2019 and September 30, 2019 included the following: December 31, September 30, (In thousands) Regulatory assets: Pension and postretirement benefit costs $ 83,783 $ 86,089 Infrastructure mechanisms (1) 108,997 131,894 Deferred gas costs 10,386 23,766 Recoverable loss on reacquired debt 6,102 6,551 Deferred pipeline record collection costs 27,414 26,418 Rate case costs 1,052 1,346 Other 4,324 8,483 $ 242,058 $ 284,547 Regulatory liabilities: Regulatory excess deferred taxes (2) $ 721,049 $ 726,307 Regulatory cost of service reserve (3) 4,747 5,238 Regulatory cost of removal obligation 519,538 528,893 Deferred gas costs 42,142 14,112 Asset retirement obligation 17,054 17,054 APT annual adjustment mechanism 72,732 78,402 Other 17,755 16,120 $ 1,395,017 $ 1,386,126 (1) Infrastructure mechanisms in Texas and Louisiana allow for the deferral of all eligible expenses associated with capital expenditures incurred pursuant to these rules, including the recording of interest on deferred expenses until the next rate proceeding (rate case or annual rate filing), at which time investment and costs would be recoverable through base rates. (2) The Tax Cuts and Jobs Act of 2017 (the "TCJA") resulted in the remeasurement of the net deferred tax liability included in our rate base. Of this amount, $21.7 million as of December 31, 2019 and $21.2 million as of September 30, 2019 is recorded in other current liabilities. These liabilities are being returned to customers in most of our jurisdictions on a provisional basis over 15 to 46 years until formal orders establish the final refund periods. (3) Effective January 1, 2018, regulators in each of our service areas required us to establish a regulatory liability for the difference in recoverable federal taxes included in revenues based on the former 35% federal statutory rate and the new 21% federal statutory rate for service provided on or after January 1, 2018. The period and timing of the return of this liability to utility customers is being determined by regulators in each of our jurisdictions. |
Segment Information (Table)
Segment Information (Table) | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Income statements and capital expenditures for the three months ended December 31, 2019 and 2018 by segment are presented in the following tables: Three Months Ended December 31, 2019 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Operating revenues from external parties $ 827,840 $ 47,723 $ — $ 875,563 Intersegment revenues 664 100,453 (101,117 ) — Total operating revenues 828,504 148,176 (101,117 ) 875,563 Purchased gas cost 397,558 99 (100,789 ) 296,868 Operation and maintenance expense 114,352 38,221 (328 ) 152,245 Depreciation and amortization expense 76,074 28,988 — 105,062 Taxes, other than income 60,243 8,364 — 68,607 Operating income 180,277 72,504 — 252,781 Other non-operating income 1,954 2,933 — 4,887 Interest charges 16,362 10,867 — 27,229 Income before income taxes 165,869 64,570 — 230,439 Income tax expense 36,112 15,654 — 51,766 Net income $ 129,757 $ 48,916 $ — $ 178,673 Capital expenditures $ 404,247 $ 124,939 $ — $ 529,186 Three Months Ended December 31, 2018 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Operating revenues from external parties $ 838,181 $ 39,601 $ — $ 877,782 Intersegment revenues 654 94,869 (95,523 ) — Total operating revenues 838,835 134,470 (95,523 ) 877,782 Purchased gas cost 437,732 (358 ) (95,209 ) 342,165 Operation and maintenance expense 105,767 33,147 (314 ) 138,600 Depreciation and amortization expense 69,709 26,356 — 96,065 Taxes, other than income 56,190 8,298 — 64,488 Operating income 169,437 67,027 — 236,464 Other non-operating expense (6,477 ) (1,246 ) — (7,723 ) Interest charges 18,210 9,639 — 27,849 Income before income taxes 144,750 56,142 — 200,892 Income tax expense 30,365 12,881 — 43,246 Net income $ 114,385 $ 43,261 $ — $ 157,646 Capital expenditures $ 302,545 $ 113,859 $ — $ 416,404 Balance sheet information at December 31, 2019 and September 30, 2019 by segment is presented in the following tables: December 31, 2019 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Property, plant and equipment, net $ 9,083,765 $ 3,166,658 $ — $ 12,250,423 Total assets $ 13,599,293 $ 3,389,655 $ (2,600,823 ) $ 14,388,125 September 30, 2019 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Property, plant and equipment, net $ 8,737,590 $ 3,050,079 $ — $ 11,787,669 Total assets $ 12,579,741 $ 3,279,323 $ (2,491,445 ) $ 13,367,619 |
Earnings Per Share (Table)
Earnings Per Share (Table) | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted earnings per share for the three months ended December 31, 2019 and 2018 are calculated as follows: Three Months Ended December 31 2019 2018 (In thousands, except per share amounts) Basic Earnings Per Share Net income $ 178,673 $ 157,646 Less: Income allocated to participating securities 136 135 Income available to common shareholders $ 178,537 $ 157,511 Basic weighted average shares outstanding 121,113 113,800 Net income per share — Basic $ 1.47 $ 1.38 Diluted Earnings Per Share Income available to common shareholders $ 178,537 $ 157,511 Effect of dilutive shares — — Income available to common shareholders $ 178,537 $ 157,511 Basic weighted average shares outstanding 121,113 113,800 Dilutive shares 246 32 Diluted weighted average shares outstanding 121,359 113,832 Net income per share - Diluted $ 1.47 $ 1.38 |
Revenue (Table)
Revenue (Table) | 3 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables disaggregate our revenue from contracts with customers by customer type and segment and provides a reconciliation to total operating revenues, including intersegment revenues, for the three months ended December 31, 2019 and 2018 . Three Months Ended December 31, 2019 Distribution Pipeline and Storage (In thousands) Gas sales revenues: Residential $ 552,076 $ — Commercial 211,314 — Industrial 24,925 — Public authority and other 13,022 — Total gas sales revenues 801,337 — Transportation revenues 26,640 152,010 Miscellaneous revenues 6,786 5,155 Revenues from contracts with customers 834,763 157,165 Alternative revenue program revenues (6,751 ) (8,989 ) Other revenues 492 — Total operating revenues $ 828,504 $ 148,176 Three Months Ended December 31, 2018 Distribution Pipeline and Storage (In thousands) Gas sales revenues: Residential $ 547,928 $ — Commercial 218,938 — Industrial 34,537 — Public authority and other 13,285 — Total gas sales revenues 814,688 — Transportation revenues 25,400 147,424 Miscellaneous revenues 6,950 1,682 Revenues from contracts with customers 847,038 149,106 Alternative revenue program revenues (8,739 ) (14,636 ) Other revenues 536 — Total operating revenues $ 838,835 $ 134,470 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Lease Cost | Other pertinent information related to leases was as follows. During the three months ended December 31, 2019, amounts paid in cash for our finance lease were not material, nor did we enter into any new finance leases. Three Months Ended December 31, 2019 (In thousands) Cash paid amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ 8,840 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 6,812 December 31, 2019 Weighted average remaining lease term (years) Finance lease 19.00 Operating leases 10.78 The following table represents our weighted average discount rate at December 31, 2019: December 31, 2019 Weighted average discount rate Finance lease 9.57 % Operating leases 2.91 % Three Months Ended December 31, 2019 (In thousands) Finance lease cost $ 73 Operating lease cost 9,925 Total lease cost $ 9,998 Our ROU assets and lease liabilities are presented as follows on the condensed consolidated balance sheets (unaudited): Balance Sheet Classification December 31, 2019 (In thousands) Assets Finance lease Net Property, Plant and Equipment $ 2,522 Operating leases Deferred charges and other assets 223,486 Total right-of-use assets $ 226,008 Liabilities Current Finance lease Current maturities of long-term debt $ 50 Operating leases Other current liabilities 30,099 Noncurrent Finance lease Long-term debt 2,484 Operating leases Deferred credits and other liabilities 200,997 Total lease liabilities $ 233,630 |
Schedule of Finance Lease Liability Maturities | Maturities of our lease liabilities as of December 31, 2019, presented on a rolling 12-month basis, were as follows: Total Finance Lease Operating Leases (In thousands) Year 1 $ 35,719 $ 244 $ 35,475 Year 2 35,954 249 35,705 Year 3 32,230 254 31,976 Year 4 27,421 259 27,162 Year 5 18,981 264 18,717 Thereafter 127,745 4,222 123,523 Total lease payments 278,050 5,492 272,558 Less: Imputed interest 44,420 2,958 41,462 Total $ 233,630 $ 2,534 $ 231,096 Reported as of December 31, 2019 Short-term lease liabilities $ 30,149 $ 50 $ 30,099 Long-term lease liabilities 203,481 2,484 200,997 Total lease liabilities $ 233,630 $ 2,534 $ 231,096 |
Schedule of Operating Lease Liability Maturities | Maturities of our lease liabilities as of December 31, 2019, presented on a rolling 12-month basis, were as follows: Total Finance Lease Operating Leases (In thousands) Year 1 $ 35,719 $ 244 $ 35,475 Year 2 35,954 249 35,705 Year 3 32,230 254 31,976 Year 4 27,421 259 27,162 Year 5 18,981 264 18,717 Thereafter 127,745 4,222 123,523 Total lease payments 278,050 5,492 272,558 Less: Imputed interest 44,420 2,958 41,462 Total $ 233,630 $ 2,534 $ 231,096 Reported as of December 31, 2019 Short-term lease liabilities $ 30,149 $ 50 $ 30,099 Long-term lease liabilities 203,481 2,484 200,997 Total lease liabilities $ 233,630 $ 2,534 $ 231,096 |
Schedule of Future Minimum Lease Payments for Capital Leases | The future minimum lease payments as September 30, 2019 were as follows: Operating Leases (1) Capital Lease (In thousands) 2020 $ 21,017 $ 243 2021 20,416 248 2022 19,370 253 2023 18,071 258 2024 15,718 263 Thereafter 105,544 4,343 Total minimum lease payments $ 200,136 5,608 Less amount representing interest 3,018 Present value of net minimum lease payments $ 2,590 (1) Future minimum lease payments do not include amounts for fleet leases and other de minimis items that can be renewed beyond the initial lease term. The Company anticipates renewing the leases beyond the initial term, but the anticipated payments associated with the renewals do not meet the definition of expected minimum lease payments and therefore are not included above. Expected payments are $17.6 million in 2020, $18.0 million in 2021, $11.8 million in 2022, $8.5 million in 2023, $5.4 million 2024 and $2.7 million thereafter. |
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum lease payments as September 30, 2019 were as follows: Operating Leases (1) Capital Lease (In thousands) 2020 $ 21,017 $ 243 2021 20,416 248 2022 19,370 253 2023 18,071 258 2024 15,718 263 Thereafter 105,544 4,343 Total minimum lease payments $ 200,136 5,608 Less amount representing interest 3,018 Present value of net minimum lease payments $ 2,590 (1) Future minimum lease payments do not include amounts for fleet leases and other de minimis items that can be renewed beyond the initial lease term. The Company anticipates renewing the leases beyond the initial term, but the anticipated payments associated with the renewals do not meet the definition of expected minimum lease payments and therefore are not included above. Expected payments are $17.6 million in 2020, $18.0 million in 2021, $11.8 million in 2022, $8.5 million in 2023, $5.4 million 2024 and $2.7 million thereafter. |
Debt (Table)
Debt (Table) | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt at December 31, 2019 and September 30, 2019 consisted of the following: December 31, 2019 September 30, 2019 (In thousands) Unsecured 3.00% Senior Notes, due 2027 $ 500,000 $ 500,000 Unsecured 2.625% Senior Notes, due 2029 300,000 — Unsecured 5.95% Senior Notes, due 2034 200,000 200,000 Unsecured 5.50% Senior Notes, due 2041 400,000 400,000 Unsecured 4.15% Senior Notes, due 2043 500,000 500,000 Unsecured 4.125% Senior Notes, due 2044 750,000 750,000 Unsecured 4.30% Senior Notes, due 2048 600,000 600,000 Unsecured 4.125% Senior Notes, due 2049 450,000 450,000 Unsecured 3.375% Senior Notes, due 2049 500,000 — Medium-term note Series A, 1995-1, 6.67%, due 2025 10,000 10,000 Unsecured 6.75% Debentures, due 2028 150,000 150,000 Finance lease obligations (see Note 6) 2,534 — Total long-term debt 4,362,534 3,560,000 Less: Original issue (premium) / discount on unsecured senior notes and debentures 703 193 Debt issuance cost 37,496 30,355 Current maturities 50 — $ 4,324,285 $ 3,529,452 |
Shareholders' Equity (Table)
Shareholders' Equity (Table) | 3 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Reconciliation of Changes in Stockholders Equity | The following tables present a reconciliation of changes in stockholders' equity for the three months ended December 31, 2019 and 2018 . Common stock Additional Accumulated Retained Total Number of Stated (In thousands, except share and per share data) Balance, September 30, 2019 119,338,925 $ 597 $ 3,712,194 $ (114,583 ) $ 2,152,015 $ 5,750,223 Net income — — — — 178,673 178,673 Other comprehensive income — — — 1,052 — 1,052 Cash dividends ($0.575 per share) — — — — (69,557 ) (69,557 ) Common stock issued: Public and other stock offerings 2,758,929 13 263,259 — — 263,272 Stock-based compensation plans 164,549 1 4,111 — — 4,112 Balance, December 31, 2019 122,262,403 $ 611 $ 3,979,564 $ (113,531 ) $ 2,261,131 $ 6,127,775 Common stock Additional Accumulated Retained Total Number of Stated (In thousands, except share and per share data) Balance, September 30, 2018 111,273,683 $ 556 $ 2,974,926 $ (83,647 ) $ 1,878,116 $ 4,769,951 Net income — — — — 157,646 157,646 Other comprehensive loss — — — (22,258 ) — (22,258 ) Cash dividends ($0.525 per share) — — — — (58,722 ) (58,722 ) Cumulative effect of accounting change — — — (8,210 ) 8,210 — Common stock issued: Public and other stock offerings 5,434,812 27 498,948 — — 498,975 Stock-based compensation plans 184,464 1 2,602 — — 2,603 Balance, December 31, 2018 116,892,959 $ 584 $ 3,476,476 $ (114,115 ) $ 1,985,250 $ 5,348,195 |
Schedule of Forward Sales Executed | The following table presents information relevant to the forward sales during the first quarter of fiscal 2020. Maturity September 30, 2020 March 31, 2020 Total Shares Price (1) Shares Price (1) Shares Price (1) Available Balance 2,474,162 2,155,698 4,629,860 Q1 Issuance 339,574 $ 107.40 — $ — 339,574 $ 107.40 Q1 Settlement (564,362 ) $ 100.21 (2,155,698 ) $ 93.88 (2,720,060 ) $ 95.22 Available Balance 2,249,374 — 2,249,374 (1) Issued price as disclosed is calculated as the weighted average price for activity occurring during the quarter. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables provide the components of our accumulated other comprehensive income (loss) balances, net of the related tax effects allocated to each component of other comprehensive income (loss). Available- for-Sale Securities Interest Rate Agreement Cash Flow Hedges Total (In thousands) September 30, 2019 $ 132 $ (114,715 ) $ (114,583 ) Other comprehensive loss before reclassifications (1 ) — (1 ) Amounts reclassified from accumulated other comprehensive income — 1,053 1,053 Net current-period other comprehensive income (loss) (1 ) 1,053 1,052 December 31, 2019 $ 131 $ (113,662 ) $ (113,531 ) Available- for-Sale Securities Interest Rate Agreement Cash Flow Hedges Total (In thousands) September 30, 2018 $ 8,124 $ (91,771 ) $ (83,647 ) Other comprehensive loss before reclassifications — (22,716 ) (22,716 ) Amounts reclassified from accumulated other comprehensive income — 458 458 Net current-period other comprehensive loss — (22,258 ) (22,258 ) Cumulative effect of accounting change (8,210 ) — (8,210 ) December 31, 2018 $ (86 ) $ (114,029 ) $ (114,115 ) |
Interim Pension and Other Pos_2
Interim Pension and Other Postretirement Benefit Plan Information (Table) | 3 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits, Description [Abstract] | |
Schedule of Net Benefit Costs | The components of our net periodic pension cost for our pension and other postretirement benefit plans for the three months ended December 31, 2019 and 2018 are presented in the following tables. Most of these costs are recoverable through our tariff rates. A portion of these costs is capitalized into our rate base or deferred as a regulatory asset or liability. The remaining costs are recorded as a component of operation and maintenance expense or other non-operating expense. Three Months Ended December 31 Pension Benefits Other Benefits 2019 2018 2019 2018 (In thousands) Components of net periodic pension cost: Service cost $ 4,653 $ 4,045 $ 3,366 $ 2,702 Interest cost (1) 5,843 6,799 2,653 2,961 Expected return on assets (1) (7,079 ) (7,113 ) (2,625 ) (2,665 ) Amortization of prior service cost (credit) (1) (58 ) (58 ) 43 43 Amortization of actuarial (gain) loss (1) (1,271 ) 1,608 (334 ) (2,045 ) Net periodic pension cost $ 2,088 $ 5,281 $ 3,103 $ 996 (1) The components of net periodic cost other than the service cost component are included in the line item other non-operating expense in the condensed consolidated statement of comprehensive income or are capitalized on the condensed consolidated balance sheets as a regulatory asset or liability, as described in Note 2 to the financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . |
Financial Instruments (Table)
Financial Instruments (Table) | 3 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following tables present the fair value and balance sheet classification of our financial instruments as of December 31, 2019 and September 30, 2019 . The gross amounts of recognized assets and liabilities are netted within our unaudited condensed consolidated balance sheets to the extent that we have netting arrangements with our counterparties. However, for December 31, 2019 and September 30, 2019 , no gross amounts and no cash collateral were netted within our consolidated balance sheet. Balance Sheet Location Assets Liabilities (In thousands) December 31, 2019 Not Designated As Hedges: Commodity contracts Other current assets / Other current liabilities $ 1,213 $ (8,391 ) Commodity contracts Deferred charges and other assets / Deferred credits and other liabilities 158 (439 ) Total 1,371 (8,830 ) Gross / Net Financial Instruments $ 1,371 $ (8,830 ) Balance Sheet Location Assets Liabilities (In thousands) September 30, 2019 Not Designated As Hedges: Commodity contracts Other current assets / Other current liabilities $ 1,586 $ (4,552 ) Commodity contracts Deferred charges and other assets / Deferred credits and other liabilities 225 (1,249 ) Total 1,811 (5,801 ) Gross / Net Financial Instruments $ 1,811 $ (5,801 ) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table summarizes the gains and losses arising from hedging transactions that were recognized as a component of other comprehensive income (loss), net of taxes, for the three months ended December 31, 2019 and 2018 . The amounts included in the table below exclude gains and losses arising from ineffectiveness because those amounts are immediately recognized in the statement of comprehensive income as incurred. Three Months Ended December 31 2019 2018 (In thousands) Increase (decrease) in fair value: Interest rate agreements $ — $ (22,716 ) Recognition of losses in earnings due to settlements: Interest rate agreements 1,053 458 Total other comprehensive income (loss) from hedging, net of tax $ 1,053 $ (22,258 ) |
Schedule Of Expected Deferred Gains (Losses) Recognition | The following amounts, net of deferred taxes, represent the expected recognition in earnings, as of December 31, 2019 , of the deferred losses recorded in AOCI associated with our financial instruments, based upon the fair values of these financial instruments at the date of settlement. Interest Rate Agreements (In thousands) Next twelve months $ (4,212 ) Thereafter (109,450 ) Total $ (113,662 ) |
Fair Value Measurements (Table)
Fair Value Measurements (Table) | 3 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables summarize, by level within the fair value hierarchy, our assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2019 and September 30, 2019 . Assets and liabilities are categorized in their entirety based on the lowest level of input that is significant to the fair value measurement. Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) (1) Significant Other Unobservable Inputs (Level 3) Netting and Cash Collateral December 31, 2019 (In thousands) Assets: Financial instruments $ — $ 1,371 $ — $ — $ 1,371 Debt and equity securities Registered investment companies 44,468 — — — 44,468 Bond mutual funds 26,150 — — — 26,150 Bonds (2) — 32,055 — — 32,055 Money market funds — 1,453 — — 1,453 Total debt and equity securities 70,618 33,508 — — 104,126 Total assets $ 70,618 $ 34,879 $ — $ — $ 105,497 Liabilities: Financial instruments $ — $ 8,830 $ — $ — $ 8,830 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) (1) Significant Other Unobservable Inputs (Level 3) Netting and Cash Collateral September 30, 2019 (In thousands) Assets: Financial instruments $ — $ 1,811 $ — $ — $ 1,811 Debt and equity securities Registered investment companies 41,406 — — — 41,406 Bond mutual funds 25,966 — — — 25,966 Bonds (2) — 31,915 — — 31,915 Money market funds — 2,596 — — 2,596 Total debt and equity securities 67,372 34,511 — — 101,883 Total assets $ 67,372 $ 36,322 $ — $ — $ 103,694 Liabilities: Financial instruments $ — $ 5,801 $ — $ — $ 5,801 (1) Our Level 2 measurements consist of over-the-counter options and swaps, which are valued using a market-based approach in which observable market prices are adjusted for criteria specific to each instrument, such as the strike price, notional amount or basis differences, municipal and corporate bonds, which are valued based on the most recent available quoted market prices and money market funds that are valued at cost. (2) Our investments in bonds are considered available-for-sale debt securities in accordance with current accounting guidance. |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The following table presents the carrying value and fair value of our long-term debt, excluding finance leases, as of December 31, 2019 and September 30, 2019 : December 31, 2019 September 30, 2019 (In thousands) Carrying Amount $ 4,360,000 $ 3,560,000 Fair Value $ 4,927,756 $ 4,216,249 |
Nature of Business (Details)
Nature of Business (Details) | Dec. 31, 2019customerstateregulated_distribution_division |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of customers serviced | customer | 3,000,000,000,000 |
Number of regulated distribution divisions | regulated_distribution_division | 6 |
Number of states with service areas | state | 8 |
Unaudited Financial Informati_4
Unaudited Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Regulatory Asset [Line Items] | ||
Regulatory assets | $ 242,058 | $ 284,547 |
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 1,395,017 | 1,386,126 |
Regulatory excess deferred taxes | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 721,049 | 726,307 |
Regulatory excess deferred taxes | Other Current Liabilities | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | $ 21,700 | 21,200 |
Regulatory excess deferred taxes | Other Current Liabilities | Minimum | ||
Regulatory Liabilities [Line Items] | ||
Return basis, term | 15 years | |
Regulatory excess deferred taxes | Other Current Liabilities | Maximum | ||
Regulatory Liabilities [Line Items] | ||
Return basis, term | 46 years | |
Regulatory cost of service reserve | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | $ 4,747 | 5,238 |
Regulatory cost of removal obligation | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 519,538 | 528,893 |
Deferred gas costs | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 42,142 | 14,112 |
Asset retirement obligation | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 17,054 | 17,054 |
APT annual adjustment mechanism | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 72,732 | 78,402 |
Other | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 17,755 | 16,120 |
Pension and postretirement benefit costs | ||
Regulatory Asset [Line Items] | ||
Regulatory assets | 83,783 | 86,089 |
Infrastructure mechanisms | ||
Regulatory Asset [Line Items] | ||
Regulatory assets | 108,997 | 131,894 |
Deferred gas costs | ||
Regulatory Asset [Line Items] | ||
Regulatory assets | 10,386 | 23,766 |
Recoverable loss on reacquired debt | ||
Regulatory Asset [Line Items] | ||
Regulatory assets | 6,102 | 6,551 |
Deferred pipeline record collection costs | ||
Regulatory Asset [Line Items] | ||
Regulatory assets | 27,414 | 26,418 |
Rate case costs | ||
Regulatory Asset [Line Items] | ||
Regulatory assets | 1,052 | 1,346 |
Other | ||
Regulatory Asset [Line Items] | ||
Regulatory assets | $ 4,324 | $ 8,483 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019USD ($)state | Dec. 31, 2018USD ($) | Sep. 30, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of states with service areas | state | 8 | ||
Segment Reporting Information Profit Loss [Abstract] | |||
Operating revenues | $ (875,563) | $ (877,782) | |
Purchased gas cost | 296,868 | 342,165 | |
Operation and maintenance expense | 152,245 | 138,600 | |
Depreciation and amortization expense | 105,062 | 96,065 | |
Taxes, other than income | 68,607 | 64,488 | |
Operating income | 252,781 | 236,464 | |
Other non-operating income (expense) | 4,887 | (7,723) | |
Interest charges | 27,229 | 27,849 | |
Income before income taxes | 230,439 | 200,892 | |
Income tax (benefit) expense | 51,766 | 43,246 | |
Net income | 178,673 | 157,646 | |
Capital expenditures | 529,186 | 416,404 | |
Segment Reporting Information, Balance Sheet [Abstract] | |||
Property, plant and equipment, net | 12,250,423 | $ 11,787,669 | |
Total assets | 14,388,125 | 13,367,619 | |
Distribution | |||
Segment Reporting Information Profit Loss [Abstract] | |||
Operating revenues | (827,840) | (838,181) | |
Pipeline and Storage | |||
Segment Reporting Information Profit Loss [Abstract] | |||
Operating revenues | (47,723) | (39,601) | |
Operating Segments | Distribution | |||
Segment Reporting Information Profit Loss [Abstract] | |||
Operating revenues | (828,504) | (838,835) | |
Purchased gas cost | 397,558 | 437,732 | |
Operation and maintenance expense | 114,352 | 105,767 | |
Depreciation and amortization expense | 76,074 | 69,709 | |
Taxes, other than income | 60,243 | 56,190 | |
Operating income | 180,277 | 169,437 | |
Other non-operating income (expense) | 1,954 | (6,477) | |
Interest charges | 16,362 | 18,210 | |
Income before income taxes | 165,869 | 144,750 | |
Income tax (benefit) expense | 36,112 | 30,365 | |
Net income | 129,757 | 114,385 | |
Capital expenditures | 404,247 | 302,545 | |
Segment Reporting Information, Balance Sheet [Abstract] | |||
Property, plant and equipment, net | 9,083,765 | 8,737,590 | |
Total assets | 13,599,293 | 12,579,741 | |
Operating Segments | Pipeline and Storage | |||
Segment Reporting Information Profit Loss [Abstract] | |||
Operating revenues | (148,176) | (134,470) | |
Purchased gas cost | 99 | (358) | |
Operation and maintenance expense | 38,221 | 33,147 | |
Depreciation and amortization expense | 28,988 | 26,356 | |
Taxes, other than income | 8,364 | 8,298 | |
Operating income | 72,504 | 67,027 | |
Other non-operating income (expense) | 2,933 | (1,246) | |
Interest charges | 10,867 | 9,639 | |
Income before income taxes | 64,570 | 56,142 | |
Income tax (benefit) expense | 15,654 | 12,881 | |
Net income | 48,916 | 43,261 | |
Capital expenditures | 124,939 | 113,859 | |
Segment Reporting Information, Balance Sheet [Abstract] | |||
Property, plant and equipment, net | 3,166,658 | 3,050,079 | |
Total assets | 3,389,655 | 3,279,323 | |
Eliminations | |||
Segment Reporting Information Profit Loss [Abstract] | |||
Operating revenues | 101,117 | 95,523 | |
Purchased gas cost | (100,789) | (95,209) | |
Operation and maintenance expense | (328) | (314) | |
Depreciation and amortization expense | 0 | 0 | |
Taxes, other than income | 0 | 0 | |
Operating income | 0 | 0 | |
Other non-operating income (expense) | 0 | 0 | |
Interest charges | 0 | 0 | |
Income before income taxes | 0 | 0 | |
Income tax (benefit) expense | 0 | 0 | |
Net income | 0 | 0 | |
Capital expenditures | 0 | 0 | |
Segment Reporting Information, Balance Sheet [Abstract] | |||
Property, plant and equipment, net | 0 | 0 | |
Total assets | (2,600,823) | $ (2,491,445) | |
Eliminations | Distribution | |||
Segment Reporting Information Profit Loss [Abstract] | |||
Operating revenues | 664 | (654) | |
Eliminations | Pipeline and Storage | |||
Segment Reporting Information Profit Loss [Abstract] | |||
Operating revenues | $ 100,453 | $ (94,869) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Basic Earnings Per Share | ||
Net income | $ 178,673 | $ 157,646 |
Less: Income allocated to participating securities | 136 | 135 |
Income available to common shareholders | $ 178,537 | $ 157,511 |
Basic weighted average shares outstanding (in shares) | 121,113 | 113,800 |
Net income per share - Basic (USD per share) | $ 1.47 | $ 1.38 |
Income available to common shareholders | $ 178,537 | $ 157,511 |
Effect of dilutive shares | 0 | 0 |
Income available to common shareholders | $ 178,537 | $ 157,511 |
Dilutive shares (in shares) | 246 | 32 |
Diluted weighted average shares outstanding (in shares) | 121,359 | 113,832 |
Net income per share - Diluted (USD per share) | $ 1.47 | $ 1.38 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | $ 875,563 | $ 877,782 |
Distribution segment | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 827,840 | 838,181 |
Pipeline and storage segment | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 47,723 | 39,601 |
Operating Segments | Distribution segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 834,763 | 847,038 |
Alternative revenue program revenues | (6,751) | (8,739) |
Other Revenues | 492 | 536 |
Total operating revenues | 828,504 | 838,835 |
Operating Segments | Distribution segment | Gas sales revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 801,337 | 814,688 |
Operating Segments | Distribution segment | Gas sales revenue | Residential Customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 552,076 | 547,928 |
Operating Segments | Distribution segment | Gas sales revenue | Commercial Customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 211,314 | 218,938 |
Operating Segments | Distribution segment | Gas sales revenue | Industrial Customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 24,925 | 34,537 |
Operating Segments | Distribution segment | Gas sales revenue | Public Authority and Other Customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 13,022 | 13,285 |
Operating Segments | Distribution segment | Transportation revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 26,640 | 25,400 |
Operating Segments | Distribution segment | Miscellaneous revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 6,786 | 6,950 |
Operating Segments | Pipeline and storage segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 157,165 | 149,106 |
Alternative revenue program revenues | (8,989) | (14,636) |
Other Revenues | 0 | 0 |
Total operating revenues | 148,176 | 134,470 |
Operating Segments | Pipeline and storage segment | Gas sales revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments | Pipeline and storage segment | Gas sales revenue | Residential Customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments | Pipeline and storage segment | Gas sales revenue | Commercial Customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments | Pipeline and storage segment | Gas sales revenue | Industrial Customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments | Pipeline and storage segment | Gas sales revenue | Public Authority and Other Customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments | Pipeline and storage segment | Transportation revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 152,010 | 147,424 |
Operating Segments | Pipeline and storage segment | Miscellaneous revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | $ 5,155 | $ 1,682 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2019 | Oct. 01, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Right-of-use asset | $ 223,486 | ||
Operating lease liabilities | $ 231,096 | ||
Lease and rental expense | $ 10,000 | ||
Accounting Standards Update 2016-02 | |||
Lessee, Lease, Description [Line Items] | |||
Right-of-use asset | $ 231,300 | ||
Operating lease liabilities | 231,300 | ||
Accrued and prepaid rent reclassified | (6,500) | ||
Deferred Rent Credit | $ 2,500 |
Leases - Weighted Averages (Det
Leases - Weighted Averages (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Finance lease, weighted average remaining lease term | 19 years |
Operating lease, weighted average remaining lease term | 10 years 9 months 10 days |
Finance lease, weighted average discount ate (in percent) | 9.57% |
Operating lease, weighted average discount ate (in percent) | 2.91% |
Leases - Income statement prese
Leases - Income statement presentation (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Finance Lease, Description [Abstract] | |
Finance lease cost | $ 73 |
Operating lease cost | 9,925 |
Total lease cost | $ 9,998 |
Leases - Balance sheet presenta
Leases - Balance sheet presentation (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Assets | |
Finance lease | $ 2,522 |
Operating leases | 223,486 |
Total right-of-use assets | 226,008 |
Current | |
Finance lease | 50 |
Operating leases | 30,099 |
Noncurrent | |
Finance lease | 2,484 |
Operating leases | 200,997 |
Total lease liabilities | $ 233,630 |
Leases - Other pertinent inform
Leases - Other pertinent information (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows used for operating leases | $ 8,840 |
Right-of-use assets obtained in exchange for lease obligations, Operating leases | $ 6,812 |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Leases [Abstract] | ||
Year 1 | $ 35,719 | |
Year 2 | 35,954 | |
Year 3 | 32,230 | |
Year 4 | 27,421 | |
Year 5 | 18,981 | |
Thereafter | 127,745 | |
Total lease payments | 278,050 | |
Less: Imputed interest | 44,420 | |
Total lease liabilities | 233,630 | |
Short-term lease liabilities | 30,149 | |
Long-term lease liabilities | 203,481 | |
Finance Lease | ||
Year 1 | 244 | |
Year 2 | 249 | |
Year 3 | 254 | |
Year 4 | 259 | |
Year 5 | 264 | |
Thereafter | 4,222 | |
Total lease payments | 5,492 | |
Less: Imputed interest | 2,958 | |
Total | 2,534 | $ 0 |
Short-term lease liabilities | 50 | |
Long-term lease liabilities | 2,484 | |
Operating Leases | ||
Year 1 | 35,475 | |
Year 2 | 35,705 | |
Year 3 | 31,976 | |
Year 4 | 27,162 | |
Year 5 | 18,717 | |
Thereafter | 123,523 | |
Total lease payments | 272,558 | |
Less: Imputed interest | 41,462 | |
Total | 231,096 | |
Short-term lease liabilities | 30,099 | |
Long-term lease liabilities | $ 200,997 |
Leases - Future minimum lease p
Leases - Future minimum lease payments (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
2020 | $ 21,017 |
2021 | 20,416 |
2022 | 19,370 |
2023 | 18,071 |
2024 | 15,718 |
Thereafter | 105,544 |
Total minimum lease payments | 200,136 |
2020 | 243 |
2021 | 248 |
2022 | 253 |
2023 | 258 |
2024 | 263 |
Thereafter | 4,343 |
Total minimum lease payments | 5,608 |
Less amount representing interest | 3,018 |
Present value of net minimum lease payments | 2,590 |
Fleet Leases Renewed Beyond Initial Lease Term | |
Lessee, Lease, Description [Line Items] | |
2020 | 17,600 |
2021 | 18,000 |
2022 | 11,800 |
2023 | 8,500 |
2024 | 5,400 |
Thereafter | $ 2,700 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 02, 2019 | Sep. 30, 2019 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 4,360,000 | $ 3,560,000 | |
Finance lease obligations | 2,534 | 0 | |
Total long-term debt | 4,362,534 | 3,560,000 | |
Original issue (premium) / discount on unsecured senior notes and debentures | 703 | 193 | |
Debt issuance cost | 37,496 | 30,355 | |
Current maturities | 50 | 0 | |
Long-term debt, noncurrent | 4,324,285 | 3,529,452 | |
Unsecured 3.00% Senior Notes, due 2027 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 500,000 | 500,000 | |
Interest rate | 3.00% | ||
Unsecured 2.625% Senior Notes, due 2029 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 300,000 | 0 | |
Interest rate | 2.625% | 2.625% | |
Unsecured 5.95% Senior Notes, due 2034 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 200,000 | 200,000 | |
Interest rate | 5.95% | ||
Unsecured 5.50% Senior Notes, due 2041 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 400,000 | 400,000 | |
Interest rate | 5.50% | ||
Unsecured 4.15% Senior Notes, due 2043 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 500,000 | 500,000 | |
Interest rate | 4.15% | ||
Unsecured 4.125% Senior Notes, due 2044 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 750,000 | 750,000 | |
Interest rate | 4.125% | ||
Unsecured 4.30% Senior Notes, due 2048 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 600,000 | 600,000 | |
Interest rate | 4.30% | ||
Unsecured 4.125% Senior Notes, due 2049 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 450,000 | 450,000 | |
Interest rate | 4.125% | ||
Unsecured 3.375% Senior Notes, due 2049 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 500,000 | 0 | |
Interest rate | 3.375% | 3.375% | |
Debt issuance cost | $ 791,700 | ||
Medium-term note Series A, 1995-1, 6.67%, due 2025 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 10,000 | 10,000 | |
Interest rate | 6.67% | ||
Unsecured 6.75% Debentures, due 2028 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 150,000 | $ 150,000 | |
Interest rate | 6.75% |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2019 | Oct. 02, 2019 | Sep. 30, 2019 | |
Line Of Credit Facility [Line Items] | |||
Long-term debt | $ 4,360,000,000 | $ 3,560,000,000 | |
Debt issuance cost | 37,496,000 | 30,355,000 | |
Maximum borrowing capacity | $ 1,500,000,000 | ||
Maximum debt-to-total-capitalization ratio | 70.00% | ||
Debt-to-total-capitalization ratio | 0.42 | ||
Minimum | |||
Line Of Credit Facility [Line Items] | |||
Equity-to-total-capitalization ratio | 50.00% | ||
Outstanding indebtedness | $ 15,000,000 | ||
Maximum | |||
Line Of Credit Facility [Line Items] | |||
Equity-to-total-capitalization ratio | 60.00% | ||
Outstanding indebtedness | $ 100,000,000 | ||
Unsecured 2.625% Senior Notes, due 2029 | |||
Line Of Credit Facility [Line Items] | |||
Debt instrument, face amount | $ 300,000,000 | ||
Long-term debt | $ 300,000,000 | 0 | |
Interest rate | 2.625% | 2.625% | |
Effective interest rate | 2.72% | ||
Unsecured 3.375% Senior Notes, due 2049 | |||
Line Of Credit Facility [Line Items] | |||
Debt instrument, face amount | $ 500,000,000 | ||
Long-term debt | $ 500,000,000 | $ 0 | |
Interest rate | 3.375% | 3.375% | |
Debt issuance cost | $ 791,700,000 | ||
Effective interest rate | 3.42% | ||
Five Year Unsecured Revolving Credit Agreement | |||
Line Of Credit Facility [Line Items] | |||
Outstanding commercial paper | $ 464,900,000 | ||
Five Year Unsecured Revolving Credit Agreement | Commercial Paper | |||
Line Of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 1,500,000,000 | ||
Accordion feature | 250,000,000 | ||
Maximum borrowing capacity post accordion feature | 1,750,000,000 | ||
$25 Million Bank Loan Agreement | Line of Credit | |||
Line Of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 25,000,000 | ||
Outstanding borrowings | 0 | ||
$10 Million Revolving Credit Note | Revolving Credit Facility | |||
Line Of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 10,000,000 | ||
Remaining borrowing capacity | $ 4,400,000 | ||
LIBOR | Five Year Unsecured Revolving Credit Agreement | Commercial Paper | Minimum | |||
Line Of Credit Facility [Line Items] | |||
Interest rate spread | 0.00% | ||
LIBOR | Five Year Unsecured Revolving Credit Agreement | Commercial Paper | Maximum | |||
Line Of Credit Facility [Line Items] | |||
Interest rate spread | 1.25% |
Shareholders' Equity - Componen
Shareholders' Equity - Components of Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Oct. 01, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Common stock outstanding (in shares) | 119,338,925 | ||
Shareholders' equity, beginning balance | $ 5,750,223 | $ 4,769,951 | |
Net income | 178,673 | 157,646 | |
Other comprehensive income | 1,052 | (22,258) | |
Cash dividends | $ (69,557) | (58,722) | |
Cumulative effect of accounting change | (8,210) | ||
Public and other stock offerings (in shares) | 2,720,060 | ||
Public and other stock offerings | $ 263,272 | 498,975 | |
Stock-based compensation plans | $ 4,112 | 2,603 | |
Common stock outstanding (in shares) | 122,262,403 | ||
Shareholders' equity, ending balance | $ 6,127,775 | $ 5,348,195 | |
Cash dividends per share (USD per share) | $ 0.575 | $ 0.525 | |
Common stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Common stock outstanding (in shares) | 119,338,925 | 111,273,683 | |
Shareholders' equity, beginning balance | $ 597 | $ 556 | |
Public and other stock offerings (in shares) | 2,758,929 | 5,434,812 | |
Public and other stock offerings | $ 13 | $ 27 | |
Stock-based compensation plans (in shares) | 164,549 | 184,464 | |
Stock-based compensation plans | $ 1 | $ 1 | |
Common stock outstanding (in shares) | 122,262,403 | 116,892,959 | |
Shareholders' equity, ending balance | $ 611 | $ 584 | |
Additional Paid-in Capital | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Shareholders' equity, beginning balance | 3,712,194 | 2,974,926 | |
Public and other stock offerings | 263,259 | 498,948 | |
Stock-based compensation plans | 4,111 | 2,602 | |
Shareholders' equity, ending balance | 3,979,564 | 3,476,476 | |
Accumulated Other Comprehensive Income (Loss) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Shareholders' equity, beginning balance | (114,583) | (83,647) | |
Other comprehensive income | 1,052 | (22,258) | |
Cumulative effect of accounting change | $ (8,210) | ||
Shareholders' equity, ending balance | (113,531) | (114,115) | |
Retained Earnings | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Shareholders' equity, beginning balance | 2,152,015 | 1,878,116 | |
Net income | 178,673 | 157,646 | |
Cash dividends | (69,557) | (58,722) | |
Cumulative effect of accounting change | $ 8,210 | ||
Shareholders' equity, ending balance | $ 2,261,131 | $ 1,985,250 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Forward Sales Executed (Details) - $ / shares | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Forward Contract Indexed to Issuer's Equity [Line Items] | ||
Forward sales equity agreement, shares | 339,574 | |
Forward sales equity agreement, forward rate per share | $ 107.40 | |
Forward sales equity agreement, settlement in shares | 2,249,374 | 4,629,860 |
Stock issued during period, new issues (in shares) | 2,720,060 | |
Stock issued during period new issues per share | $ 95.22 | |
Forward Sales Equity, Maturity September 2020 | ||
Forward Contract Indexed to Issuer's Equity [Line Items] | ||
Forward sales equity agreement, shares | 339,574 | |
Forward sales equity agreement, forward rate per share | $ 107.40 | |
Forward sales equity agreement, settlement in shares | 2,249,374 | 2,474,162 |
Stock issued during period, new issues (in shares) | 564,362 | |
Stock issued during period new issues per share | $ 100.21 | |
Forward Sales Equity, Maturity March 2020 | ||
Forward Contract Indexed to Issuer's Equity [Line Items] | ||
Forward sales equity agreement, shares | 0 | |
Forward sales equity agreement, forward rate per share | $ 0 | |
Forward sales equity agreement, settlement in shares | 0 | 2,155,698 |
Stock issued during period, new issues (in shares) | 2,155,698 | |
Stock issued during period new issues per share | $ 93.88 |
Shareholders' Equity - Schedu_2
Shareholders' Equity - Schedule of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Oct. 01, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Shareholders' equity, beginning balance | $ 5,750,223 | $ 4,769,951 | |
Other comprehensive loss before reclassifications | (1) | (22,716) | |
Amounts reclassified from accumulated other comprehensive income | 1,053 | 458 | |
Net current-period other comprehensive income (loss) | 1,052 | (22,258) | |
Shareholders' equity, ending balance | 6,127,775 | 5,348,195 | |
Cumulative effect of accounting change | (8,210) | ||
Available- for-Sale Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Shareholders' equity, beginning balance | 132 | 8,124 | |
Other comprehensive loss before reclassifications | (1) | 0 | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | |
Net current-period other comprehensive income (loss) | (1) | 0 | |
Shareholders' equity, ending balance | 131 | (86) | |
Cumulative effect of accounting change | (8,210) | ||
Interest Rate Agreement Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Shareholders' equity, beginning balance | (114,715) | (91,771) | |
Other comprehensive loss before reclassifications | 0 | (22,716) | |
Amounts reclassified from accumulated other comprehensive income | 1,053 | 458 | |
Net current-period other comprehensive income (loss) | 1,053 | (22,258) | |
Shareholders' equity, ending balance | (113,662) | (114,029) | |
Cumulative effect of accounting change | 0 | ||
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Shareholders' equity, beginning balance | (114,583) | (83,647) | |
Net current-period other comprehensive income (loss) | 1,052 | (22,258) | |
Shareholders' equity, ending balance | $ (113,531) | $ (114,115) | |
Cumulative effect of accounting change | $ (8,210) |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) | Nov. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 19, 2018 | Nov. 13, 2018 |
Class of Stock [Line Items] | |||||
Forward Contract Indexed to Issuer's Equity, Shares | 339,574 | ||||
Stock issued during period, new issues (in shares) | 2,720,060 | ||||
Net proceeds from equity offering | $ 259,005,000 | $ 494,734,000 | |||
Forward sales equity agreement, forward rate per share | $ 107.40 | ||||
Shelf Registration Statement | |||||
Class of Stock [Line Items] | |||||
Debt and equity securities authorized for issuance | $ 3,000,000,000 | ||||
Debt and equity securities authorized for issuance value remaining | $ 500,000,000 | ||||
At-The-Market | |||||
Class of Stock [Line Items] | |||||
Value of shares authorized for issuance | $ 500,000,000 | ||||
Forward Contract Indexed to Issuer's Equity, Shares | 339,574 | ||||
Value of shares available for issuance | $ 38,000,000 | ||||
Stock issued during period, new issues (in shares) | 2,234,871 | ||||
Net proceeds from equity offering | $ 214,600,000 | ||||
Forward contract indexed to issuer's equity, settlement alternatives, cash, at fair value | $ 36,800,000 | ||||
Common Stock Block Trade | |||||
Class of Stock [Line Items] | |||||
Stock issued during period, new issues (in shares) | 5,390,836 | ||||
Gross proceeds from equity offering | $ 500,000,000 | ||||
Net proceeds from equity offering | $ 494,100,000 | ||||
Forward Sales Equity Agreements | |||||
Class of Stock [Line Items] | |||||
Stock issued during period, new issues (in shares) | 485,189 | 2,668,464 | |||
Net proceeds from equity offering | $ 44,400,000 | ||||
Forward contract indexed to issuer's equity, settlement alternatives, cash, at fair value | $ 239,600,000 | $ 247,500,000 | |||
Forward sales equity agreement, forward rate per share | $ 106.51 |
Interim Pension and Other Pos_3
Interim Pension and Other Postretirement Benefit Plan Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 4,653 | $ 4,045 |
Interest cost | 5,843 | 6,799 |
Expected return on assets | (7,079) | (7,113) |
Amortization of prior service cost (credit) | (58) | (58) |
Amortization of actuarial (gain) loss | (1,271) | 1,608 |
Net periodic pension cost | 2,088 | 5,281 |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 3,366 | 2,702 |
Interest cost | 2,653 | 2,961 |
Expected return on assets | (2,625) | (2,665) |
Amortization of prior service cost (credit) | 43 | 43 |
Amortization of actuarial (gain) loss | (334) | (2,045) |
Net periodic pension cost | $ 3,103 | $ 996 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($)Bcf | |
Commitments and Contingencies Disclosure [Abstract] | |
Self-insurance retention expense | $ | $ 1 |
Short-term Contract with Customer | Supply Commitment | |
Long-term Purchase Commitment [Line Items] | |
Long-term purchase commitment, minimum volume required | 25,700 |
Long-term Contract with Customer | Supply Commitment | |
Long-term Purchase Commitment [Line Items] | |
Long-term purchase commitment, minimum volume required | 1,000 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) $ in Millions | 3 Months Ended | |
Dec. 31, 2019USD ($)MMcfBcf | Dec. 31, 2018USD ($) | |
Derivative [Line Items] | ||
Net gain (loss) on settled interest rate agreements | $ (1.4) | $ (0.6) |
Net realized gain (loss) in AOCI | $ (113.7) | |
Gas Purchases | Not Designated as Hedging Instrument | Commodity contracts | ||
Derivative [Line Items] | ||
Hedging percent | 49.00% | |
Energy measure | Bcf | 19,900 | |
Minimum | Gas Purchases | Not Designated as Hedging Instrument | Commodity contracts | ||
Derivative [Line Items] | ||
Hedging percent | 25.00% | |
Maximum | Gas Purchases | Not Designated as Hedging Instrument | Commodity contracts | ||
Derivative [Line Items] | ||
Hedging percent | 50.00% | |
Long | Gas Purchases | Not Designated as Hedging Instrument | Commodity contracts | ||
Derivative [Line Items] | ||
Energy measure | MMcf | 14,530 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Derivatives Fair Value [Line Items] | ||
Contract Netting | $ 0 | $ 0 |
Net Financial Instruments, Assets | 1,371,000 | 1,811,000 |
Cash collateral | 0 | |
Net Financial Instruments, Liabilities | (8,830,000) | (5,801,000) |
Not Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Gross Financial Instruments, Assets | 1,371,000 | 1,811,000 |
Gross Financial Instruments, Liabilities | (8,830,000) | (5,801,000) |
Not Designated as Hedging Instrument | Other Current Assets | Commodity contracts | ||
Derivatives Fair Value [Line Items] | ||
Gross Financial Instruments, Assets | 1,213,000 | 1,586,000 |
Not Designated as Hedging Instrument | Other Current Liabilities | Commodity contracts | ||
Derivatives Fair Value [Line Items] | ||
Gross Financial Instruments, Liabilities | (8,391,000) | (4,552,000) |
Not Designated as Hedging Instrument | Deferred Charges and Other Assets | Commodity contracts | ||
Derivatives Fair Value [Line Items] | ||
Gross Financial Instruments, Assets | 158,000 | 225,000 |
Not Designated as Hedging Instrument | Deferred Credits and Other Liabilities | Commodity contracts | ||
Derivatives Fair Value [Line Items] | ||
Gross Financial Instruments, Liabilities | $ (439,000) | $ (1,249,000) |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (decrease) in fair value: | ||
Interest rate agreements | $ 0 | $ (22,716) |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Interest rate agreements | 1,053 | 458 |
Total other comprehensive income (loss) from hedging, net of tax | $ 1,053 | $ (22,258) |
Financial Instruments - Sched_3
Financial Instruments - Schedule Of Expected Deferred Gains (Losses) Recognition (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Derivative [Line Items] | |
Interest Rate Agreements | $ (113,662) |
Next twelve months | |
Derivative [Line Items] | |
Interest Rate Agreements | (4,212) |
Thereafter | |
Derivative [Line Items] | |
Interest Rate Agreements | $ (109,450) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Netting and Cash Collateral | $ 0 | $ 0 |
Financial instruments net assets | 1,371,000 | 1,811,000 |
Debt and equity securities | 104,126,000 | 101,883,000 |
Total assets | 105,497,000 | 103,694,000 |
Netting and Cash Collateral | 0 | 0 |
Financial instruments net liability | 8,830,000 | 5,801,000 |
Registered investment companies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | 44,468,000 | 41,406,000 |
Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | 26,150,000 | 25,966,000 |
Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 32,055,000 | 31,915,000 |
Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | 1,453,000 | 2,596,000 |
Fair Value Inputs Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial instruments gross assets | 0 | 0 |
Debt and equity securities | 70,618,000 | 67,372,000 |
Total assets | 70,618,000 | 67,372,000 |
Financial instruments gross liability | 0 | 0 |
Fair Value Inputs Level 1 | Registered investment companies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | 44,468,000 | 41,406,000 |
Fair Value Inputs Level 1 | Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | 26,150,000 | 25,966,000 |
Fair Value Inputs Level 1 | Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Fair Value Inputs Level 1 | Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | 0 | 0 |
Fair Value Inputs Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial instruments gross assets | 1,371,000 | 1,811,000 |
Debt and equity securities | 33,508,000 | 34,511,000 |
Total assets | 34,879,000 | 36,322,000 |
Financial instruments gross liability | 8,830,000 | 5,801,000 |
Fair Value Inputs Level 2 | Registered investment companies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | 0 | 0 |
Fair Value Inputs Level 2 | Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | 0 | 0 |
Fair Value Inputs Level 2 | Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 32,055,000 | 31,915,000 |
Fair Value Inputs Level 2 | Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | 1,453,000 | 2,596,000 |
Fair Value Inputs Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial instruments gross assets | 0 | 0 |
Debt and equity securities | 0 | 0 |
Total assets | 0 | 0 |
Financial instruments gross liability | 0 | 0 |
Fair Value Inputs Level 3 | Registered investment companies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | 0 | 0 |
Fair Value Inputs Level 3 | Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | 0 | 0 |
Fair Value Inputs Level 3 | Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Fair Value Inputs Level 3 | Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Cost Basis | $ 31.9 | $ 31.7 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Fair Value Disclosures [Abstract] | ||
Carrying Amount | $ 4,360,000 | $ 3,560,000 |
Fair Value | $ 4,927,756 | $ 4,216,249 |