Cover Page
Cover Page - shares | 3 Months Ended | |
Dec. 31, 2023 | Feb. 02, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2023 | |
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) | 150,839,709 | |
Entity Central Index Key | 0000731802 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
ASSETS | ||
Property, plant and equipment | $ 23,683,937 | $ 22,898,374 |
Less accumulated depreciation and amortization | 3,364,456 | 3,291,791 |
Net property, plant and equipment | 20,319,481 | 19,606,583 |
Current assets | ||
Cash and cash equivalents | 278,315 | 15,404 |
Restricted cash and cash equivalents | 7,130 | 3,844 |
Cash and cash equivalents and restricted cash and cash equivalents | 285,445 | 19,248 |
Accounts receivable, net (See Note 6) | 646,401 | 328,654 |
Gas stored underground | 220,944 | 245,830 |
Other current assets | 526,927 | 292,036 |
Total current assets | 1,679,717 | 885,768 |
Securitized intangible asset, net (See Note 9) | 90,036 | 92,202 |
Goodwill | 731,257 | 731,257 |
Deferred charges and other assets | 863,752 | 1,201,158 |
Total assets | 23,684,243 | 22,516,968 |
Shareholders’ equity | ||
Common stock, no par value (stated at $0.005 per share); 200,000,000 shares authorized; issued and outstanding: December 31, 2023 — 150,834,397 shares; September 30, 2023 — 148,492,783 shares | 754 | 742 |
Additional paid-in capital | 6,945,795 | 6,684,120 |
Accumulated other comprehensive income | 468,592 | 518,528 |
Retained earnings | 3,858,068 | 3,666,674 |
Shareholders’ equity | 11,273,209 | 10,870,064 |
Long-term debt, net | 7,444,195 | 6,554,133 |
Securitized long-term debt (See Note 9) | 85,078 | 85,078 |
Total capitalization | 18,802,482 | 17,509,275 |
Current liabilities | ||
Accounts payable and accrued liabilities | 416,694 | 336,083 |
Other current liabilities | 742,304 | 763,086 |
Short-term debt | 0 | 241,933 |
Current maturities of long-term debt | 1,561 | 1,568 |
Current maturities of securitized long-term debt (See Note 9) | 9,922 | 9,922 |
Total current liabilities | 1,170,481 | 1,352,592 |
Deferred income taxes | 2,379,421 | 2,304,974 |
Regulatory excess deferred taxes | 231,981 | 253,212 |
Regulatory cost of removal obligation | 498,135 | 497,017 |
Deferred credits and other liabilities | 601,743 | 599,898 |
Total capitalization and liabilities | $ 23,684,243 | $ 22,516,968 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Sep. 30, 2023 |
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) | 150,834,397 | 148,492,783 |
Common stock outstanding (in shares) | 150,834,397 | 148,492,783 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating revenues | $ 1,158,467 | $ 1,484,009 |
Purchased gas cost | 338,869 | 738,249 |
Operation and maintenance expense | 166,345 | 185,016 |
Depreciation and amortization expense | 164,608 | 146,020 |
Taxes, other than income | 89,540 | 93,538 |
Operating income | 399,105 | 321,186 |
Other non-operating income | 17,886 | 21,191 |
Interest charges | 51,875 | 36,760 |
Income before income taxes | 365,116 | 305,617 |
Income tax expense | 53,824 | 33,757 |
Net income | $ 311,292 | $ 271,860 |
Basic net income per share (USD per share) | $ 2.08 | $ 1.92 |
Diluted net income per share (USD per share) | 2.08 | 1.91 |
Cash dividends per share (USD per share) | $ 0.805 | $ 0.740 |
Basic weighted average shares outstanding (in shares) | 149,796 | 141,820 |
Diluted weighted average shares outstanding (in shares) | 149,796 | 141,937 |
Other comprehensive income (loss), net of tax | ||
Net unrealized holding gains on available-for-sale securities, net of tax of $86 and $25 | $ 296 | $ 87 |
Cash flow hedges: | ||
Amortization and unrealized gains (losses) on interest rate agreements, net of tax of $(14,519) and $6,397 | (50,232) | 22,131 |
Total other comprehensive income (loss) | (49,936) | 22,218 |
Total comprehensive income | 261,356 | 294,078 |
Purchased gas cost | ||
Purchased gas cost | 338,869 | 738,249 |
Distribution segment | ||
Operating revenues | 1,104,619 | 1,439,693 |
Pipeline and storage segment | ||
Operating revenues | 53,848 | 44,316 |
Operating Segments | Distribution segment | ||
Operating revenues | 1,105,338 | 1,440,426 |
Purchased gas cost | 496,662 | 881,915 |
Operation and maintenance expense | 127,615 | 136,469 |
Depreciation and amortization expense | 119,685 | 105,664 |
Taxes, other than income | 80,895 | 84,622 |
Operating income | 280,481 | 231,756 |
Other non-operating income | 5,839 | 6,774 |
Interest charges | 34,581 | 22,839 |
Income before income taxes | 251,739 | 215,691 |
Income tax expense | 30,302 | 21,223 |
Net income | 221,437 | 194,468 |
Operating Segments | Distribution segment | Purchased gas cost | ||
Purchased gas cost | 496,662 | 881,915 |
Operating Segments | Pipeline and storage segment | ||
Operating revenues | 211,169 | 186,629 |
Purchased gas cost | 4 | (858) |
Operation and maintenance expense | 38,973 | 48,785 |
Depreciation and amortization expense | 44,923 | 40,356 |
Taxes, other than income | 8,645 | 8,916 |
Operating income | 118,624 | 89,430 |
Other non-operating income | 12,047 | 14,417 |
Interest charges | 17,294 | 13,921 |
Income before income taxes | 113,377 | 89,926 |
Income tax expense | 23,522 | 12,534 |
Net income | 89,855 | 77,392 |
Operating Segments | Pipeline and storage segment | Purchased gas cost | ||
Purchased gas cost | 4 | (858) |
Intersegment eliminations | ||
Operating revenues | (158,040) | (143,046) |
Purchased gas cost | (157,797) | (142,808) |
Operation and maintenance expense | (243) | (238) |
Depreciation and amortization expense | 0 | 0 |
Taxes, other than income | 0 | 0 |
Operating income | 0 | 0 |
Other non-operating income | 0 | 0 |
Interest charges | 0 | 0 |
Income before income taxes | 0 | 0 |
Income tax expense | 0 | 0 |
Net income | 0 | 0 |
Intersegment eliminations | Purchased gas cost | ||
Purchased gas cost | (157,797) | (142,808) |
Intersegment eliminations | Distribution segment | ||
Operating revenues | 719 | 733 |
Intersegment eliminations | Pipeline and storage segment | ||
Operating revenues | $ 157,321 | $ 142,313 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Net unrealized holding gains on available-for-sale securities, tax | $ 86 | $ 25 |
Amortization and unrealized gains (losses) on interest rate agreements, tax | $ (14,519) | $ 6,397 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash Flows From Operating Activities | ||
Net income | $ 311,292 | $ 271,860 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 164,608 | 146,020 |
Deferred income taxes | 44,108 | 29,693 |
Other | (16,839) | (17,508) |
Net assets / liabilities from risk management activities | 5,589 | 218 |
Net change in other operating assets and liabilities | (263,478) | (241,383) |
Net cash provided by operating activities | 245,280 | 188,900 |
Cash Flows From Investing Activities | ||
Capital expenditures | (769,650) | (795,660) |
Debt and equity securities activities, net | (78) | (2,472) |
Other, net | 5,353 | 5,621 |
Net cash used in investing activities | (764,375) | (792,511) |
Cash Flows From Financing Activities | ||
Net decrease in short-term debt | (241,933) | (184,967) |
Net proceeds from equity issuances | 254,022 | 220,000 |
Issuance of common stock through stock purchase and employee retirement plans | 3,746 | 3,779 |
Proceeds from issuance of long-term debt | 898,275 | 797,258 |
Cash dividends paid | (119,898) | (104,552) |
Debt issuance costs | (8,920) | (7,864) |
Net cash provided by financing activities | 785,292 | 723,654 |
Net increase in cash and cash equivalents and restricted cash and cash equivalents | 266,197 | 120,043 |
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period | 19,248 | 51,554 |
Cash and cash equivalents and restricted cash and cash equivalents at end of period | $ 285,445 | $ 171,597 |
Nature of Business
Nature of Business | 3 Months Ended |
Dec. 31, 2023 | |
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 3.3 million residential, commercial, public authority and industrial customers through our six regulated distribution divisions, which at December 31, 2023, 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation These consolidated interim-period financial statements have been prepared in accordance with accounting principles generally accepted in the United States on the same basis 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, 2023. 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, 2023. Because of seasonal and other factors, the results of operations for the three-month period ended December 31, 2023 are not indicative of our results of operations for the full 2024 fiscal year, which ends September 30, 2024. 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, 2023. Except as described in Note 11 to the condensed consolidated financial statements, no events have occurred subsequent to the balance sheet date that would require recognition or disclosure in the condensed consolidated financial statements. Recently issued accounting pronouncements In November 2023, the Financial Accounting Standards Board (FASB) issued guidance which provides updates to qualitative and quantitative reportable segment disclosure requirements, including enhanced disclosures about significant segment expenses and increased interim disclosure requirements, among others. The amendment is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and the amendments should be applied retrospectively. This amendment will be effective for our Form 10-K for fiscal 2025 and our Form 10-Q for the first quarter of fiscal 2026. We are currently evaluating the impact this may have on our financial statement disclosures. In December 2023, the FASB issued guidance which provides qualitative and quantitative updates to the rate reconciliation and income taxes paid disclosures, among others, in order to enhance the transparency of income tax disclosures, including consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation by jurisdiction of income taxes paid. The amendment is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied prospectively; however, retrospective application is also permitted. This amendment will be effective for our Form 10-K for fiscal 2026. We are currently evaluating the impact this amendment may have on our financial statement disclosures. |
Regulation
Regulation | 3 Months Ended |
Dec. 31, 2023 | |
Regulated Operations [Abstract] | |
Regulation | Regulation 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 other current assets and 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. Significant regulatory assets and liabilities as of December 31, 2023 and September 30, 2023 included the following: December 31, September 30, (In thousands) Regulatory assets: Pension and postretirement benefit costs $ 18,295 $ 20,629 Infrastructure mechanisms (1) 167,965 229,996 Winter Storm Uri incremental costs 28,328 32,115 Deferred gas costs 129,891 148,297 Regulatory excess deferred taxes (2) 47,772 47,549 Recoverable loss on reacquired debt 3,196 3,238 Deferred pipeline record collection costs 59,830 54,008 Other 16,518 19,096 $ 471,795 $ 554,928 Regulatory liabilities: Regulatory excess deferred taxes (2) $ 343,075 $ 384,513 Regulatory cost of removal obligation 584,640 582,867 Deferred gas costs 20,889 23,093 APT annual adjustment mechanism 47,768 49,894 Pension and postretirement benefit costs 211,600 215,913 Other 28,777 28,054 $ 1,236,749 $ 1,284,334 (1) Infrastructure mechanisms in Texas, Louisiana, and Tennessee 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) Regulatory excess deferred taxes represent changes in our net deferred tax liability related to our cost of service ratemaking due to the enactment of Tax Cuts and Jobs Act of 2017 (the "TCJA") and a Kansas legislative change enacted in fiscal 2020. See Note 12 to the condensed consolidated financial statements for further information. Securitization Kansas See Note 9 to the condensed consolidated financial statements for securitization and other information related to Atmos Energy Kansas Securitization I, LLC (AEK). Texas In March 2023, the Texas Natural Gas Securitization Finance Corporation (the Finance Corporation), with the authority of the Texas Public Finance Authority (TPFA), issued $3.5 billion in customer rate relief bonds with varying scheduled final maturities from 12 to 18 years. The bonds are obligations of the Finance Corporation, payable from the customer rate relief charges and other bond collateral, and are not an obligation of Atmos Energy. We began collecting the customer rate relief charges on October 1, 2023, and any such property collected is solely owned by the Finance Corporation and not available to pay creditors of Atmos Energy. Additionally, we deferred $32.4 million in carrying costs incurred after September 1, 2022. Effective October 1, 2023, we began recovering a portion of these carrying costs. We have recorded $17.4 million and $21.2 million as a current asset in other current assets as of December 31, 2023 and September 30, 2023. We anticipate recovering the remaining $10.9 million in future regulatory filings and have recorded this amount as a long-term asset in deferred charges and other assets as of December 31, 2023. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2023 | |
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, 2023. Income statements and capital expenditures for the three months ended December 31, 2023 and 2022 by segment are presented in the following tables: Three Months Ended December 31, 2023 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Operating revenues from external parties $ 1,104,619 $ 53,848 $ — $ 1,158,467 Intersegment revenues 719 157,321 (158,040) — Total operating revenues 1,105,338 211,169 (158,040) 1,158,467 Purchased gas cost 496,662 4 (157,797) 338,869 Operation and maintenance expense 127,615 38,973 (243) 166,345 Depreciation and amortization expense 119,685 44,923 — 164,608 Taxes, other than income 80,895 8,645 — 89,540 Operating income 280,481 118,624 — 399,105 Other non-operating income 5,839 12,047 — 17,886 Interest charges 34,581 17,294 — 51,875 Income before income taxes 251,739 113,377 — 365,116 Income tax expense 30,302 23,522 — 53,824 Net income $ 221,437 $ 89,855 $ — $ 311,292 Capital expenditures $ 539,158 $ 230,492 $ — $ 769,650 Three Months Ended December 31, 2022 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Operating revenues from external parties $ 1,439,693 $ 44,316 $ — $ 1,484,009 Intersegment revenues 733 142,313 (143,046) — Total operating revenues 1,440,426 186,629 (143,046) 1,484,009 Purchased gas cost 881,915 (858) (142,808) 738,249 Operation and maintenance expense 136,469 48,785 (238) 185,016 Depreciation and amortization expense 105,664 40,356 — 146,020 Taxes, other than income 84,622 8,916 — 93,538 Operating income 231,756 89,430 — 321,186 Other non-operating income 6,774 14,417 — 21,191 Interest charges 22,839 13,921 — 36,760 Income before income taxes 215,691 89,926 — 305,617 Income tax expense 21,223 12,534 — 33,757 Net income $ 194,468 $ 77,392 $ — $ 271,860 Capital expenditures $ 443,544 $ 352,116 $ — $ 795,660 Balance sheet information at December 31, 2023 and September 30, 2023 by segment is presented in the following tables: December 31, 2023 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Net property, plant and equipment $ 14,907,406 $ 5,412,075 $ — $ 20,319,481 Total assets $ 22,874,926 $ 5,721,542 $ (4,912,225) $ 23,684,243 September 30, 2023 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Net property, plant and equipment $ 14,402,578 $ 5,204,005 $ — $ 19,606,583 Total assets $ 21,716,467 $ 5,504,972 $ (4,704,471) $ 22,516,968 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2023 | |
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 condensed consolidated financial statements, when the impact is dilutive. Basic and diluted earnings per share for the three months ended December 31, 2023 and 2022 are calculated as follows: Three Months Ended December 31 2023 2022 (In thousands, except per share amounts) Basic Earnings Per Share Net income $ 311,292 $ 271,860 Less: Income allocated to participating securities 186 167 Income available to common shareholders $ 311,106 $ 271,693 Basic weighted average shares outstanding 149,796 141,820 Net income per share — Basic $ 2.08 $ 1.92 Diluted Earnings Per Share Income available to common shareholders $ 311,106 $ 271,693 Effect of dilutive shares — — Income available to common shareholders $ 311,106 $ 271,693 Basic weighted average shares outstanding 149,796 141,820 Dilutive shares — 117 Diluted weighted average shares outstanding 149,796 141,937 Net income per share — Diluted $ 2.08 $ 1.91 |
Revenue and Accounts Receivable
Revenue and Accounts Receivable | 3 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Accounts Receivable | Revenue and Accounts Receivable Revenue Our revenue recognition policy is fully described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023. The following tables disaggregate our revenue from contracts with customers by customer type and segment and provide a reconciliation to total operating revenues, including intersegment revenues, for the three months ended December 31, 2023 and 2022. Three Months Ended December 31, 2023 Three Months Ended December 31, 2022 Distribution Pipeline and Storage Distribution Pipeline and Storage (In thousands) Gas sales revenues: Residential $ 727,682 $ — $ 953,051 $ — Commercial 277,253 — 388,667 — Industrial 28,231 — 59,215 — Public authority and other 14,584 — 22,826 — Total gas sales revenues 1,047,750 — 1,423,759 — Transportation revenues 33,767 215,305 32,162 195,252 Miscellaneous revenues 2,643 3,042 2,282 2,722 Revenues from contracts with customers 1,084,160 218,347 1,458,203 197,974 Alternative revenue program revenues 17,401 (7,178) (18,322) (11,345) Other revenues 3,777 — 545 — Total operating revenues $ 1,105,338 $ 211,169 $ 1,440,426 $ 186,629 We have alternative revenue programs in each of our segments. In our distribution segment, we have weather-normalization adjustment mechanisms that serve to mitigate the effects of weather on our revenue. In our pipeline and storage segment, APT has a regulatory mechanism that requires that we share with its tariffed customers 75% of the difference between the total non-tariffed revenues earned during a test period and a revenue benchmark established by the RRC. With the completion of APT's most recent rate case in December 2023, the revenue benchmark was increased from $69.4 million to $106.9 million. Other revenues includes AEK revenues (see Note 9 to the condensed consolidated financial statements) and other miscellaneous revenues. Accounts receivable and allowance for uncollectible accounts Accounts receivable arise from natural gas sales to residential, commercial, industrial, public authority and other customers. Our accounts receivable balance includes unbilled amounts which represent a customer’s consumption of gas from the date of the last cycle billing through the last day of the month. Our policy related to the accounting for our accounts receivable and allowance for uncollectible accounts is fully described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023. During the three months ended December 31, 2023, there were no material changes to this policy. Rollforwards of our allowance for uncollectible accounts for the three months ended December 31, 2023 and 2022 are presented in the table below. The allowance excludes the gas cost portion of customers’ bills for approximately 88 percent of our customers as we have the ability to collect these gas costs through our gas cost recovery mechanisms in most of our jurisdictions. In December 2023, the Mississippi Public Service Commission approved the recovery of uncollectible accounts through our purchased gas cost mechanism over a two-year period rather than through our annual filing mechanism over a one-year period. As a result of this decision, we recorded a $13.9 million reduction to bad debt expense during the first quarter of fiscal 2024. Of this amount, $9.7 million represents future recovery of customer receivables previously written off since April 2022 but not yet recovered through our rates. This amount increased our deferred gas cost regulatory asset. The remaining $4.2 million reduction represents a reversal of our allowance for uncollectible accounts for customer balances that have not yet been written off. Three Months Ended December 31, 2023 (In thousands) Beginning balance, September 30, 2023 $ 40,840 Current period provisions 6,750 Write-offs charged against allowance (8,757) Recoveries of amounts previously written off 765 Mississippi recovery of uncollectible accounts (4,192) Ending balance, December 31, 2023 $ 35,406 Three Months Ended December 31, 2022 (In thousands) Beginning balance, September 30, 2022 $ 49,993 Current period provisions 7,233 Write-offs charged against allowance (10,421) Recoveries of amounts previously written off 808 Ending balance, December 31, 2022 $ 47,613 |
Debt
Debt | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The nature and terms of our debt instruments and credit facilities are described in detail in Note 8 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023. Other than as described below, there were no material changes in the terms of our debt instruments during the three months ended December 31, 2023. Long-term debt at December 31, 2023 and September 30, 2023 consisted of the following: December 31, 2023 September 30, 2023 (In thousands) Unsecured 3.00% Senior Notes, due June 2027 $ 500,000 $ 500,000 Unsecured 2.625% Senior Notes, due September 2029 500,000 500,000 Unsecured 1.50% Senior Notes, due January 2031 600,000 600,000 Unsecured 5.45% Senior Notes, due October 2032 300,000 300,000 Unsecured 5.90% Senior Notes, due October 2033 400,000 — Unsecured 5.95% Senior Notes, due October 2034 200,000 200,000 Unsecured 5.50% Senior Notes, due June 2041 400,000 400,000 Unsecured 4.15% Senior Notes, due January 2043 500,000 500,000 Unsecured 4.125% Senior Notes, due October 2044 750,000 750,000 Unsecured 4.30% Senior Notes, due October 2048 600,000 600,000 Unsecured 4.125% Senior Notes, due March 2049 450,000 450,000 Unsecured 3.375% Senior Notes, due September 2049 500,000 500,000 Unsecured 2.85% Senior Notes, due February 2052 600,000 600,000 Unsecured 5.75% Senior Notes, due October 2052 500,000 500,000 Unsecured 6.20% Senior Notes, due October 2053 500,000 — Medium-term note Series A, 1995-1, 6.67%, due December 2025 10,000 10,000 Unsecured 6.75% Debentures, due July 2028 150,000 150,000 Finance lease obligations 50,052 50,393 Total long-term debt 7,510,052 6,610,393 Less: Original issue discount on unsecured senior notes and debentures 7,723 6,104 Debt issuance cost 56,573 48,588 Current maturities of long-term debt 1,561 1,568 Total long-term debt, net $ 7,444,195 $ 6,554,133 On October 10, 2023, we completed a public offering of $500 million of 6.20% senior notes due October 2053, with an effective interest rate of 5.56%, after giving effect to the offering costs and settlement of our interest rate swaps, and $400 million of 5.90% senior notes due October 2033, with an effective interest rate of 4.35%, after giving effect to the offering costs and settlement of our interest rate swaps. The net proceeds from the offering, after the underwriting discount and offering expenses, of $889.4 million were used for general corporate purposes. Short-term debt 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. Our short-term borrowing requirements are driven primarily by construction work in progress and the seasonal nature of the natural gas business. Our short-term borrowing requirements are satisfied through a combination of a $1.5 billion commercial paper program and four committed revolving credit facilities with third-party lenders that provide $2.5 billion of total working capital funding. Our commercial paper program is supported by a five-year unsecured $1.5 billion credit facility that expires on March 31, 2027. This facility bears interest at a base rate or at a SOFR-based rate for the applicable interest period, plus a margin ranging from zero percent to 0.25 percent for base rate advances or a margin ranging from 0.75 percent to 1.25 percent for SOFR-based advances, 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, 2023, there were no amounts outstanding under our commercial paper program. At September 30, 2023, there was $241.9 million outstanding under our commercial paper program. We also have a $900 million three-year unsecured revolving credit facility, which expires March 31, 2025 and is used to provide additional working capital funding. This facility bears interest at a base rate or at a SOFR-based rate for the applicable interest period, plus a margin ranging from zero percent to 0.25 percent for base rate advances or a margin ranging from 0.75 percent to 1.25 percent for SOFR-based advances, based on the Company's credit ratings. Additionally, the facility contains a $100 million accordion feature, which provides the opportunity to increase the total committed loan to $1.0 billion. At December 31, 2023 and September 30, 2023, there were no borrowings outstanding under this facility. Additionally, we have a $50 million 364-day unsecured facility, which will expire March 31, 2024 and is used to provide working capital funding. There were no borrowings outstanding under this facility as of December 31, 2023 and September 30, 2023. Finally, we have a $50 million 364-day unsecured revolving credit facility, which will expire March 31, 2024 and is used to issue letters of credit and to provide working capital funding. At December 31, 2023, there were no borrowings outstanding under this facility; however, outstanding letters of credit reduced the total amount available to us to $44.4 million. Debt covenants 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, 2023, our total-debt-to-total-capitalization ratio, as defined in the agreements, was 41 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, 2023. 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, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity The following tables present a reconciliation of changes in stockholders' equity for the three months ended December 31, 2023 and 2022. Common stock Additional Accumulated Retained Total Number of Stated (In thousands, except share and per share data) Balance, September 30, 2023 148,492,783 $ 742 $ 6,684,120 $ 518,528 $ 3,666,674 $ 10,870,064 Net income — — — — 311,292 311,292 Other comprehensive loss — — — (49,936) — (49,936) Cash dividends ($0.805 per share) — — — — (119,898) (119,898) Common stock issued: Public and other stock offerings 2,177,864 11 257,757 — — 257,768 Stock-based compensation plans 163,750 1 3,918 — — 3,919 Balance, December 31, 2023 150,834,397 $ 754 $ 6,945,795 $ 468,592 $ 3,858,068 $ 11,273,209 Common stock Additional Accumulated Retained Total Number of Stated (In thousands, except share and per share data) Balance, September 30, 2022 140,896,598 $ 704 $ 5,838,118 $ 369,112 $ 3,211,157 $ 9,419,091 Net income — — — — 271,860 271,860 Other comprehensive income — — — 22,218 — 22,218 Cash dividends ($0.74 per share) — — — — (104,552) (104,552) Common stock issued: Public and other stock offerings 2,147,210 11 223,768 — — 223,779 Stock-based compensation plans 111,953 1 3,877 — — 3,878 Balance, December 31, 2022 143,155,761 $ 716 $ 6,065,763 $ 391,330 $ 3,378,465 $ 9,836,274 Shelf Registration, At-the-Market Equity Sales Program and Equity Issuances We have a shelf registration statement with the Securities and Exchange Commission (SEC) that allows us to issue up to $5.0 billion in common stock and/or debt securities, which expires March 31, 2026. At December 31, 2023, $3.1 billion of securities were available for issuance under this shelf registration statement. We have an at-the-market (ATM) equity sales program under which we may issue and sell shares of our common stock up to an aggregate offering price of $1.0 billion through March 31, 2026 (including shares of common stock that may be sold pursuant to forward sale agreements entered into concurrently with the ATM equity sales program). During the three months ended December 31, 2023, we executed forward sales under our ATM equity sales program with various forward sellers who borrowed and sold 2,284,076 shares of our common stock at an aggregate price of $261.4 million. During the three months ended December 31, 2023, we also settled forward sale agreements with respect to 2,144,558 shares that had been borrowed and sold by various forward sellers under the ATM program for net proceeds of $254.0 million. As of December 31, 2023, $499.1 million of equity was available for issuance under our existing ATM program. Additionally, we had $473.5 million in available proceeds from outstanding forward sale agreements, as detailed below. Maturity Shares Available Net Proceeds Available Forward Price September 30, 2024 861,655 $ 101,376 $ 117.65 December 31, 2024 2,176,974 250,866 $ 115.24 June 30, 2025 1,061,914 121,230 $ 114.16 Total 4,100,543 $ 473,472 $ 115.47 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 on a straight-line basis over the life of the related financing. 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- Interest Rate Total (In thousands) September 30, 2023 $ (369) $ 518,897 $ 518,528 Other comprehensive income (loss) before reclassifications 296 (47,741) (47,445) Amounts reclassified from accumulated other comprehensive income — (2,491) (2,491) Net current-period other comprehensive income (loss) 296 (50,232) (49,936) December 31, 2023 $ (73) $ 468,665 $ 468,592 Available- Interest Rate Total (In thousands) September 30, 2022 $ (495) $ 369,607 $ 369,112 Other comprehensive income before reclassifications 87 22,661 22,748 Amounts reclassified from accumulated other comprehensive income — (530) (530) Net current-period other comprehensive income 87 22,131 22,218 December 31, 2022 $ (408) $ 391,738 $ 391,330 |
Variable Interest Entity
Variable Interest Entity | 3 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity | Variable Interest Entity Atmos Energy Kansas Securitization I, LLC (AEK), a special-purpose entity wholly owned by Atmos Energy, was formed for the purpose of issuing securitized bonds to recover extraordinary costs incurred during Winter Storm Uri. In June 2023, AEK completed a public offering of $95 million of Securitized Utility Tariff Bonds. AEK's assets cannot be used to settle Atmos Energy's obligations, and the holders of the Securitized Utility Tariff Bonds have no recourse against Atmos Energy. AEK is considered to be a variable interest entity. As a result, AEK is included in the condensed consolidated financial statements of Atmos Energy. The following table summarizes the impact of AEK on our condensed consolidated balance sheets, for the periods indicated: December 31, 2023 September 30, 2023 (In thousands) Restricted cash and cash equivalents $ 7,130 $ 3,844 Other current assets $ 23 $ 11 Securitized intangible asset, net $ 90,036 $ 92,202 Accrued interest $ 2,598 $ 1,374 Current maturities of securitized long-term debt $ 9,922 $ 9,922 Securitized long-term debt $ 85,078 $ 85,078 The following table summarizes the impact of AEK on our condensed consolidated statement of comprehensive income, for the period indicated: Three Months Ended December 31, 2023 (In thousands) Operating revenues $ 3,333 Amortization expense (2,166) Interest expense, net (1,167) Income before income taxes $ — The securitized long-term debt is recorded at carrying value. The fair value of the securitized long-term debt is determined using third party market value quotations, which are considered Level 2 fair value measurements for debt instruments where fair value is determined using the most recent available quoted market price. The carrying value and fair value of the securitized long-term debt as of December 31, 2023 is $95.0 million and $96.2 million. |
Interim Pension and Other Postr
Interim Pension and Other Postretirement Benefit Plan Information | 3 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022 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. In the first quarter of fiscal 2024, due to the retirement of an executive, we recognized a settlement charge of $0.8 million associated with our Supplemental Executive Retirement Plan and revalued the net periodic pension cost for the remainder of fiscal 2024. The revaluation of the net periodic pension cost for our Supplemental Executive Retirement Plan resulted in a decrease in the discount rate, effective November 30, 2023, to 5.82% from 6.17%, which will decrease our net periodic pension cost by approximately $0.4 million for the remainder of the fiscal year. Three Months Ended December 31 Pension Benefits Other Benefits 2023 2022 2023 2022 (In thousands) Components of net periodic pension cost: Service cost $ 2,389 $ 2,908 $ 1,507 $ 1,546 Interest cost (1) 7,497 7,325 3,509 3,478 Expected return on assets (1) (7,202) (7,278) (3,128) (2,804) Amortization of prior service cost (credit) (1) — (30) (3,260) (3,285) Amortization of actuarial (gain) loss (1) 118 164 (2,718) (1,863) Settlements (1) 776 — — — Net periodic pension cost $ 3,578 $ 3,089 $ (4,090) $ (2,928) (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 statements 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 consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2023 | |
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. The National Transportation Safety Board (NTSB) is investigating an incident that occurred at a Jackson, Mississippi residence on January 24, 2024 that resulted in one fatality. Atmos Energy is working closely with the NTSB and other state and federal regulators to help determine causal factors. 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 under contracts indexed to natural gas hubs or fixed price contracts. These purchase commitment contracts are detailed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023. At December 31, 2023, we were committed to purchase 71.8 Bcf within one year and 51.3 Bcf within two Rate Regulatory Proceedings As of December 31, 2023, routine rate regulatory proceedings were in progress in several of our service areas, which are discussed in further detail below in Management’s Discussion and Analysis — Recent Ratemaking Developments . Except for these proceedings, there were no material changes to rate regulatory proceedings for the three months ended December 31, 2023. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Tax Expense Our interim effective tax rates reflect the estimated annual effective tax rates for the fiscal years ended September 30, 2024 and 2023, adjusted for tax expense associated with certain discrete items. The effective tax rates for the three months ended December 31, 2023 and 2022 were 14.7% and 11.0%. These effective tax rates differ from the federal statutory tax rate of 21% primarily due to the amortization of excess deferred federal income tax liabilities, tax credits, state income taxes and other permanent book-to-tax differences. These adjustments have a relative impact on the effective tax rate proportionally to pretax income or loss. Regulatory Excess Deferred Taxes Regulatory excess net deferred taxes represent changes in our net deferred tax liability related to our cost of service ratemaking due to the enactment of the Tax Cuts and Jobs Act of 2017 (the TCJA) and a Kansas legislative change enacted in fiscal 2020. Currently, the regulatory excess net deferred tax liability of $295.3 million is being returned over various periods. Of this amount, $241.9 million is being returned to customers over 12 - 60 months. An additional $52.4 million is being returned to customers on a provisional basis over 15 - 69 years until our regulators establish the final refund periods. The refund of the remaining $1.0 million will be addressed in future rate proceedings. As of December 31, 2023 and September 30, 2023, $111.1 million and $131.3 million is recorded in other current liabilities. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments We currently use financial instruments to mitigate commodity price risk and 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 16 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023. During the three months ended December 31, 2023, 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 2023-2024 heating season (generally October through March), in the jurisdictions where we are permitted to utilize financial instruments, we anticipate hedging approximately 30.2 Bcf, of the winter flowing gas requirements. We have not designated these financial instruments as hedges for accounting purposes. Interest Rate Risk Management Activities We manage interest rate risk by periodically entering into financial instruments to effectively fix the Treasury yield component of the interest cost associated with anticipated financings. The following table summarizes our existing forward starting interest rate swaps as of December 31, 2023. These swaps were designated as cash flow hedges at the time the agreements were executed. Planned Debt Issuance Date Amount Hedged (In thousands) Fiscal 2025 $ 600,000 Fiscal 2026 300,000 $ 900,000 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, 2023, 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, 2023, we had 20,045 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, 2023 and September 30, 2023. The gross amounts of recognized assets and liabilities are netted within our condensed consolidated balance sheets to the extent that we have netting arrangements with our counterparties. However, as of December 31, 2023 and September 30, 2023, no gross amounts and no cash collateral were netted within our consolidated balance sheet. December 31, 2023 Balance Sheet Location Assets Liabilities (In thousands) Designated As Hedges: Interest rate contracts Other current assets / $ 232,975 $ — Interest rate contracts Deferred charges and other assets / 84,586 — Total 317,561 — Not Designated As Hedges: Commodity contracts Other current assets / 2,545 (19,819) Commodity contracts Deferred charges and other assets / 761 (1,777) Total 3,306 (21,596) Gross / Net Financial Instruments $ 320,867 $ (21,596) September 30, 2023 Balance Sheet Location Assets Liabilities (In thousands) Designated As Hedges: Interest rate contracts Deferred charges and other assets / $ 379,101 $ — Total 379,101 — Not Designated As Hedges: Commodity contracts Other current assets / 4,071 (14,584) Commodity contracts Deferred charges and other assets / 2,492 (824) Total 6,563 (15,408) Gross / Net Financial Instruments $ 385,664 $ (15,408) Impact of Financial Instruments on the Statement of Comprehensive Income Cash Flow Hedges As discussed above, our distribution segment has interest rate agreements, which we designated as cash flow hedges at the time the agreements were executed. The net (gain) 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, 2023 and 2022 was $(3.2) million and $(0.7) 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, 2023 and 2022. Three Months Ended December 31 2023 2022 (In thousands) Increase (decrease) in fair value: Interest rate agreements $ (47,741) $ 22,661 Recognition of (gains) losses in earnings due to settlements: Interest rate agreements (2,491) (530) Total other comprehensive income (loss) from hedging, net of tax $ (50,232) $ 22,131 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. As of December 31, 2023, we had $222.3 million of net realized gains in AOCI associated with our interest rate agreements. The following amounts, net of deferred taxes, represent the expected recognition in earnings of the deferred net gains recorded in AOCI associated with our interest rate agreements, based upon the fair values of these agreements at the date of settlement. The remaining amortization periods for these settled amounts extend through fiscal 2053. However, the table below does not include the expected recognition in earnings of our outstanding interest rate swaps as those instruments have not yet settled. Interest Rate (In thousands) Next twelve months $ 9,965 Thereafter 212,342 Total $ 222,307 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, 2023 | |
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, restricted cash and cash equivalents, accounts receivable, accounts payable, and short-term debt 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 consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023. During the three months ended December 31, 2023, 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 11 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023. 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, 2023 and September 30, 2023. Assets and liabilities are categorized in their entirety based on the lowest level of input that is significant to the fair value measurement. Quoted Significant Other Observable Inputs (Level 2) (1) Significant Netting and December 31, 2023 (In thousands) Assets: Financial instruments $ — $ 320,867 $ — $ — $ 320,867 Debt and equity securities Registered investment companies 28,466 — — — 28,466 Bond mutual funds 38,584 — — — 38,584 Bonds (2) — 36,343 — — 36,343 Money market funds — 3,861 — — 3,861 Total debt and equity securities 67,050 40,204 — — 107,254 Total assets $ 67,050 $ 361,071 $ — $ — $ 428,121 Liabilities: Financial instruments $ — $ 21,596 $ — $ — $ 21,596 Quoted Significant Other Observable Inputs (Level 2) (1) Significant Netting and September 30, 2023 (In thousands) Assets: Financial instruments $ — $ 385,664 $ — $ — $ 385,664 Debt and equity securities Registered investment companies 26,685 — — — 26,685 Bond mutual funds 37,573 — — — 37,573 Bonds (2) — 35,507 — — 35,507 Money market funds — 4,837 — — 4,837 Total debt and equity securities 64,258 40,344 — — 104,602 Total assets $ 64,258 $ 426,008 $ — $ — $ 490,266 Liabilities: Financial instruments $ — $ 15,408 $ — $ — $ 15,408 (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. As described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023, we 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, current returns and any intent to sell the security. As of December 31, 2023, no allowance for credit losses was recorded for our available-for-sale debt securities. At December 31, 2023 and September 30, 2023, the amortized cost of our available-for-sale debt securities was $36.4 million and $36.0 million. At December 31, 2023, we maintained investments in bonds that have contractual maturity dates ranging from January 2024 through November 2026. 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 leases materially approximates fair value. The following table presents the carrying value and fair value of our long-term debt, excluding finance leases, debt issuance costs and original issue premium or discount, as of December 31, 2023 and September 30, 2023: December 31, 2023 September 30, 2023 (In thousands) Carrying Amount $ 7,460,000 $ 6,560,000 Fair Value $ 6,963,106 $ 5,402,591 |
Concentration of Credit Risk
Concentration of Credit Risk | 3 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Concentration of Credit Risk Information regarding our concentration of credit risk is disclosed in Note 18 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023. During the three months ended December 31, 2023, there were no material changes in our concentration of credit risk. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net income | $ 311,292 | $ 271,860 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Kim R. Cocklin [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On December 7, 2023, Kim R. Cocklin, Chairman of the Board of Directors of the Company, adopted a Rule 10b5-1 trading arrangement for the sale of 15,000 shares of the Company's common stock, subject to certain conditions. Mr. Cocklin's trading arrangement will terminate on the earlier of (i) December 16, 2024, (ii) the execution of all trades or expiration of all orders relating to such trades under the Rule 10b5-1 trading arrangement, or (iii) such date as the Rule 10b5-1 trading arrangement is otherwise terminated according to its terms. |
Name | Kim R. Cocklin |
Title | Chairman of the Board of Directors |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | December 7, 2023 |
Arrangement Duration | 375 days |
Aggregate Available | 15,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In November 2023, the Financial Accounting Standards Board (FASB) issued guidance which provides updates to qualitative and quantitative reportable segment disclosure requirements, including enhanced disclosures about significant segment expenses and increased interim disclosure requirements, among others. The amendment is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and the amendments should be applied retrospectively. This amendment will be effective for our Form 10-K for fiscal 2025 and our Form 10-Q for the first quarter of fiscal 2026. We are currently evaluating the impact this may have on our financial statement disclosures. In December 2023, the FASB issued guidance which provides qualitative and quantitative updates to the rate reconciliation and income taxes paid disclosures, among others, in order to enhance the transparency of income tax disclosures, including consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation by jurisdiction of income taxes paid. The amendment is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied prospectively; however, retrospective application is also permitted. This amendment will be effective for our Form 10-K for fiscal 2026. We are currently evaluating the impact this amendment may have on our financial statement disclosures. |
Earnings per share | Earnings Per ShareWe 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. |
Fair value measurement | 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, restricted cash and cash equivalents, accounts receivable, accounts payable, and short-term debt 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 consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023. During the three months ended December 31, 2023, there were no changes in these methods. |
Regulation (Tables)
Regulation (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets | Significant regulatory assets and liabilities as of December 31, 2023 and September 30, 2023 included the following: December 31, September 30, (In thousands) Regulatory assets: Pension and postretirement benefit costs $ 18,295 $ 20,629 Infrastructure mechanisms (1) 167,965 229,996 Winter Storm Uri incremental costs 28,328 32,115 Deferred gas costs 129,891 148,297 Regulatory excess deferred taxes (2) 47,772 47,549 Recoverable loss on reacquired debt 3,196 3,238 Deferred pipeline record collection costs 59,830 54,008 Other 16,518 19,096 $ 471,795 $ 554,928 Regulatory liabilities: Regulatory excess deferred taxes (2) $ 343,075 $ 384,513 Regulatory cost of removal obligation 584,640 582,867 Deferred gas costs 20,889 23,093 APT annual adjustment mechanism 47,768 49,894 Pension and postretirement benefit costs 211,600 215,913 Other 28,777 28,054 $ 1,236,749 $ 1,284,334 (1) Infrastructure mechanisms in Texas, Louisiana, and Tennessee 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) Regulatory excess deferred taxes represent changes in our net deferred tax liability related to our cost of service ratemaking due to the enactment of Tax Cuts and Jobs Act of 2017 (the "TCJA") and a Kansas legislative change enacted in fiscal 2020. See Note 12 to the condensed consolidated financial statements for further information. |
Schedule of Regulatory Liabilities | Significant regulatory assets and liabilities as of December 31, 2023 and September 30, 2023 included the following: December 31, September 30, (In thousands) Regulatory assets: Pension and postretirement benefit costs $ 18,295 $ 20,629 Infrastructure mechanisms (1) 167,965 229,996 Winter Storm Uri incremental costs 28,328 32,115 Deferred gas costs 129,891 148,297 Regulatory excess deferred taxes (2) 47,772 47,549 Recoverable loss on reacquired debt 3,196 3,238 Deferred pipeline record collection costs 59,830 54,008 Other 16,518 19,096 $ 471,795 $ 554,928 Regulatory liabilities: Regulatory excess deferred taxes (2) $ 343,075 $ 384,513 Regulatory cost of removal obligation 584,640 582,867 Deferred gas costs 20,889 23,093 APT annual adjustment mechanism 47,768 49,894 Pension and postretirement benefit costs 211,600 215,913 Other 28,777 28,054 $ 1,236,749 $ 1,284,334 (1) Infrastructure mechanisms in Texas, Louisiana, and Tennessee 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) Regulatory excess deferred taxes represent changes in our net deferred tax liability related to our cost of service ratemaking due to the enactment of Tax Cuts and Jobs Act of 2017 (the "TCJA") and a Kansas legislative change enacted in fiscal 2020. See Note 12 to the condensed consolidated financial statements for further information. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Income statements and capital expenditures for the three months ended December 31, 2023 and 2022 by segment are presented in the following tables: Three Months Ended December 31, 2023 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Operating revenues from external parties $ 1,104,619 $ 53,848 $ — $ 1,158,467 Intersegment revenues 719 157,321 (158,040) — Total operating revenues 1,105,338 211,169 (158,040) 1,158,467 Purchased gas cost 496,662 4 (157,797) 338,869 Operation and maintenance expense 127,615 38,973 (243) 166,345 Depreciation and amortization expense 119,685 44,923 — 164,608 Taxes, other than income 80,895 8,645 — 89,540 Operating income 280,481 118,624 — 399,105 Other non-operating income 5,839 12,047 — 17,886 Interest charges 34,581 17,294 — 51,875 Income before income taxes 251,739 113,377 — 365,116 Income tax expense 30,302 23,522 — 53,824 Net income $ 221,437 $ 89,855 $ — $ 311,292 Capital expenditures $ 539,158 $ 230,492 $ — $ 769,650 Three Months Ended December 31, 2022 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Operating revenues from external parties $ 1,439,693 $ 44,316 $ — $ 1,484,009 Intersegment revenues 733 142,313 (143,046) — Total operating revenues 1,440,426 186,629 (143,046) 1,484,009 Purchased gas cost 881,915 (858) (142,808) 738,249 Operation and maintenance expense 136,469 48,785 (238) 185,016 Depreciation and amortization expense 105,664 40,356 — 146,020 Taxes, other than income 84,622 8,916 — 93,538 Operating income 231,756 89,430 — 321,186 Other non-operating income 6,774 14,417 — 21,191 Interest charges 22,839 13,921 — 36,760 Income before income taxes 215,691 89,926 — 305,617 Income tax expense 21,223 12,534 — 33,757 Net income $ 194,468 $ 77,392 $ — $ 271,860 Capital expenditures $ 443,544 $ 352,116 $ — $ 795,660 Balance sheet information at December 31, 2023 and September 30, 2023 by segment is presented in the following tables: December 31, 2023 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Net property, plant and equipment $ 14,907,406 $ 5,412,075 $ — $ 20,319,481 Total assets $ 22,874,926 $ 5,721,542 $ (4,912,225) $ 23,684,243 September 30, 2023 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Net property, plant and equipment $ 14,402,578 $ 5,204,005 $ — $ 19,606,583 Total assets $ 21,716,467 $ 5,504,972 $ (4,704,471) $ 22,516,968 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022 are calculated as follows: Three Months Ended December 31 2023 2022 (In thousands, except per share amounts) Basic Earnings Per Share Net income $ 311,292 $ 271,860 Less: Income allocated to participating securities 186 167 Income available to common shareholders $ 311,106 $ 271,693 Basic weighted average shares outstanding 149,796 141,820 Net income per share — Basic $ 2.08 $ 1.92 Diluted Earnings Per Share Income available to common shareholders $ 311,106 $ 271,693 Effect of dilutive shares — — Income available to common shareholders $ 311,106 $ 271,693 Basic weighted average shares outstanding 149,796 141,820 Dilutive shares — 117 Diluted weighted average shares outstanding 149,796 141,937 Net income per share — Diluted $ 2.08 $ 1.91 |
Revenue and Accounts Receivab_2
Revenue and Accounts Receivable (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following tables disaggregate our revenue from contracts with customers by customer type and segment and provide a reconciliation to total operating revenues, including intersegment revenues, for the three months ended December 31, 2023 and 2022. Three Months Ended December 31, 2023 Three Months Ended December 31, 2022 Distribution Pipeline and Storage Distribution Pipeline and Storage (In thousands) Gas sales revenues: Residential $ 727,682 $ — $ 953,051 $ — Commercial 277,253 — 388,667 — Industrial 28,231 — 59,215 — Public authority and other 14,584 — 22,826 — Total gas sales revenues 1,047,750 — 1,423,759 — Transportation revenues 33,767 215,305 32,162 195,252 Miscellaneous revenues 2,643 3,042 2,282 2,722 Revenues from contracts with customers 1,084,160 218,347 1,458,203 197,974 Alternative revenue program revenues 17,401 (7,178) (18,322) (11,345) Other revenues 3,777 — 545 — Total operating revenues $ 1,105,338 $ 211,169 $ 1,440,426 $ 186,629 |
Schedule of Allowance for Credit Loss Activity | Rollforwards of our allowance for uncollectible accounts for the three months ended December 31, 2023 and 2022 are presented in the table below. The allowance excludes the gas cost portion of customers’ bills for approximately 88 percent of our customers as we have the ability to collect these gas costs through our gas cost recovery mechanisms in most of our jurisdictions. In December 2023, the Mississippi Public Service Commission approved the recovery of uncollectible accounts through our purchased gas cost mechanism over a two-year period rather than through our annual filing mechanism over a one-year period. As a result of this decision, we recorded a $13.9 million reduction to bad debt expense during the first quarter of fiscal 2024. Of this amount, $9.7 million represents future recovery of customer receivables previously written off since April 2022 but not yet recovered through our rates. This amount increased our deferred gas cost regulatory asset. The remaining $4.2 million reduction represents a reversal of our allowance for uncollectible accounts for customer balances that have not yet been written off. Three Months Ended December 31, 2023 (In thousands) Beginning balance, September 30, 2023 $ 40,840 Current period provisions 6,750 Write-offs charged against allowance (8,757) Recoveries of amounts previously written off 765 Mississippi recovery of uncollectible accounts (4,192) Ending balance, December 31, 2023 $ 35,406 Three Months Ended December 31, 2022 (In thousands) Beginning balance, September 30, 2022 $ 49,993 Current period provisions 7,233 Write-offs charged against allowance (10,421) Recoveries of amounts previously written off 808 Ending balance, December 31, 2022 $ 47,613 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt at December 31, 2023 and September 30, 2023 consisted of the following: December 31, 2023 September 30, 2023 (In thousands) Unsecured 3.00% Senior Notes, due June 2027 $ 500,000 $ 500,000 Unsecured 2.625% Senior Notes, due September 2029 500,000 500,000 Unsecured 1.50% Senior Notes, due January 2031 600,000 600,000 Unsecured 5.45% Senior Notes, due October 2032 300,000 300,000 Unsecured 5.90% Senior Notes, due October 2033 400,000 — Unsecured 5.95% Senior Notes, due October 2034 200,000 200,000 Unsecured 5.50% Senior Notes, due June 2041 400,000 400,000 Unsecured 4.15% Senior Notes, due January 2043 500,000 500,000 Unsecured 4.125% Senior Notes, due October 2044 750,000 750,000 Unsecured 4.30% Senior Notes, due October 2048 600,000 600,000 Unsecured 4.125% Senior Notes, due March 2049 450,000 450,000 Unsecured 3.375% Senior Notes, due September 2049 500,000 500,000 Unsecured 2.85% Senior Notes, due February 2052 600,000 600,000 Unsecured 5.75% Senior Notes, due October 2052 500,000 500,000 Unsecured 6.20% Senior Notes, due October 2053 500,000 — Medium-term note Series A, 1995-1, 6.67%, due December 2025 10,000 10,000 Unsecured 6.75% Debentures, due July 2028 150,000 150,000 Finance lease obligations 50,052 50,393 Total long-term debt 7,510,052 6,610,393 Less: Original issue discount on unsecured senior notes and debentures 7,723 6,104 Debt issuance cost 56,573 48,588 Current maturities of long-term debt 1,561 1,568 Total long-term debt, net $ 7,444,195 $ 6,554,133 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Reconciliation of Changes in Stockholders Equity | The following tables present a reconciliation of changes in stockholders' equity for the three months ended December 31, 2023 and 2022. Common stock Additional Accumulated Retained Total Number of Stated (In thousands, except share and per share data) Balance, September 30, 2023 148,492,783 $ 742 $ 6,684,120 $ 518,528 $ 3,666,674 $ 10,870,064 Net income — — — — 311,292 311,292 Other comprehensive loss — — — (49,936) — (49,936) Cash dividends ($0.805 per share) — — — — (119,898) (119,898) Common stock issued: Public and other stock offerings 2,177,864 11 257,757 — — 257,768 Stock-based compensation plans 163,750 1 3,918 — — 3,919 Balance, December 31, 2023 150,834,397 $ 754 $ 6,945,795 $ 468,592 $ 3,858,068 $ 11,273,209 Common stock Additional Accumulated Retained Total Number of Stated (In thousands, except share and per share data) Balance, September 30, 2022 140,896,598 $ 704 $ 5,838,118 $ 369,112 $ 3,211,157 $ 9,419,091 Net income — — — — 271,860 271,860 Other comprehensive income — — — 22,218 — 22,218 Cash dividends ($0.74 per share) — — — — (104,552) (104,552) Common stock issued: Public and other stock offerings 2,147,210 11 223,768 — — 223,779 Stock-based compensation plans 111,953 1 3,877 — — 3,878 Balance, December 31, 2022 143,155,761 $ 716 $ 6,065,763 $ 391,330 $ 3,378,465 $ 9,836,274 |
Schedule of Forward Sales Agreements | Additionally, we had $473.5 million in available proceeds from outstanding forward sale agreements, as detailed below. Maturity Shares Available Net Proceeds Available Forward Price September 30, 2024 861,655 $ 101,376 $ 117.65 December 31, 2024 2,176,974 250,866 $ 115.24 June 30, 2025 1,061,914 121,230 $ 114.16 Total 4,100,543 $ 473,472 $ 115.47 |
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- Interest Rate Total (In thousands) September 30, 2023 $ (369) $ 518,897 $ 518,528 Other comprehensive income (loss) before reclassifications 296 (47,741) (47,445) Amounts reclassified from accumulated other comprehensive income — (2,491) (2,491) Net current-period other comprehensive income (loss) 296 (50,232) (49,936) December 31, 2023 $ (73) $ 468,665 $ 468,592 Available- Interest Rate Total (In thousands) September 30, 2022 $ (495) $ 369,607 $ 369,112 Other comprehensive income before reclassifications 87 22,661 22,748 Amounts reclassified from accumulated other comprehensive income — (530) (530) Net current-period other comprehensive income 87 22,131 22,218 December 31, 2022 $ (408) $ 391,738 $ 391,330 |
Variable Interest Entity (Table
Variable Interest Entity (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Condensed Consolidated Balance Sheet | The following table summarizes the impact of AEK on our condensed consolidated balance sheets, for the periods indicated: December 31, 2023 September 30, 2023 (In thousands) Restricted cash and cash equivalents $ 7,130 $ 3,844 Other current assets $ 23 $ 11 Securitized intangible asset, net $ 90,036 $ 92,202 Accrued interest $ 2,598 $ 1,374 Current maturities of securitized long-term debt $ 9,922 $ 9,922 Securitized long-term debt $ 85,078 $ 85,078 |
Condensed Statement of Comprehensive Income | The following table summarizes the impact of AEK on our condensed consolidated statement of comprehensive income, for the period indicated: Three Months Ended December 31, 2023 (In thousands) Operating revenues $ 3,333 Amortization expense (2,166) Interest expense, net (1,167) Income before income taxes $ — |
Interim Pension and Other Pos_2
Interim Pension and Other Postretirement Benefit Plan Information (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits, Description [Abstract] | |
Schedule of Net Benefit Costs | Three Months Ended December 31 Pension Benefits Other Benefits 2023 2022 2023 2022 (In thousands) Components of net periodic pension cost: Service cost $ 2,389 $ 2,908 $ 1,507 $ 1,546 Interest cost (1) 7,497 7,325 3,509 3,478 Expected return on assets (1) (7,202) (7,278) (3,128) (2,804) Amortization of prior service cost (credit) (1) — (30) (3,260) (3,285) Amortization of actuarial (gain) loss (1) 118 164 (2,718) (1,863) Settlements (1) 776 — — — Net periodic pension cost $ 3,578 $ 3,089 $ (4,090) $ (2,928) (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 statements 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 consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The following table summarizes our existing forward starting interest rate swaps as of December 31, 2023. These swaps were designated as cash flow hedges at the time the agreements were executed. Planned Debt Issuance Date Amount Hedged (In thousands) Fiscal 2025 $ 600,000 Fiscal 2026 300,000 $ 900,000 |
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, 2023 and September 30, 2023. The gross amounts of recognized assets and liabilities are netted within our condensed consolidated balance sheets to the extent that we have netting arrangements with our counterparties. However, as of December 31, 2023 and September 30, 2023, no gross amounts and no cash collateral were netted within our consolidated balance sheet. December 31, 2023 Balance Sheet Location Assets Liabilities (In thousands) Designated As Hedges: Interest rate contracts Other current assets / $ 232,975 $ — Interest rate contracts Deferred charges and other assets / 84,586 — Total 317,561 — Not Designated As Hedges: Commodity contracts Other current assets / 2,545 (19,819) Commodity contracts Deferred charges and other assets / 761 (1,777) Total 3,306 (21,596) Gross / Net Financial Instruments $ 320,867 $ (21,596) September 30, 2023 Balance Sheet Location Assets Liabilities (In thousands) Designated As Hedges: Interest rate contracts Deferred charges and other assets / $ 379,101 $ — Total 379,101 — Not Designated As Hedges: Commodity contracts Other current assets / 4,071 (14,584) Commodity contracts Deferred charges and other assets / 2,492 (824) Total 6,563 (15,408) Gross / Net Financial Instruments $ 385,664 $ (15,408) |
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, 2023 and 2022. Three Months Ended December 31 2023 2022 (In thousands) Increase (decrease) in fair value: Interest rate agreements $ (47,741) $ 22,661 Recognition of (gains) losses in earnings due to settlements: Interest rate agreements (2,491) (530) Total other comprehensive income (loss) from hedging, net of tax $ (50,232) $ 22,131 |
Schedule of Expected Deferred Gains (Losses) Recognition | The following amounts, net of deferred taxes, represent the expected recognition in earnings of the deferred net gains recorded in AOCI associated with our interest rate agreements, based upon the fair values of these agreements at the date of settlement. The remaining amortization periods for these settled amounts extend through fiscal 2053. However, the table below does not include the expected recognition in earnings of our outstanding interest rate swaps as those instruments have not yet settled. Interest Rate (In thousands) Next twelve months $ 9,965 Thereafter 212,342 Total $ 222,307 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
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, 2023 and September 30, 2023. Assets and liabilities are categorized in their entirety based on the lowest level of input that is significant to the fair value measurement. Quoted Significant Other Observable Inputs (Level 2) (1) Significant Netting and December 31, 2023 (In thousands) Assets: Financial instruments $ — $ 320,867 $ — $ — $ 320,867 Debt and equity securities Registered investment companies 28,466 — — — 28,466 Bond mutual funds 38,584 — — — 38,584 Bonds (2) — 36,343 — — 36,343 Money market funds — 3,861 — — 3,861 Total debt and equity securities 67,050 40,204 — — 107,254 Total assets $ 67,050 $ 361,071 $ — $ — $ 428,121 Liabilities: Financial instruments $ — $ 21,596 $ — $ — $ 21,596 Quoted Significant Other Observable Inputs (Level 2) (1) Significant Netting and September 30, 2023 (In thousands) Assets: Financial instruments $ — $ 385,664 $ — $ — $ 385,664 Debt and equity securities Registered investment companies 26,685 — — — 26,685 Bond mutual funds 37,573 — — — 37,573 Bonds (2) — 35,507 — — 35,507 Money market funds — 4,837 — — 4,837 Total debt and equity securities 64,258 40,344 — — 104,602 Total assets $ 64,258 $ 426,008 $ — $ — $ 490,266 Liabilities: Financial instruments $ — $ 15,408 $ — $ — $ 15,408 (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 Long-term Debt | The following table presents the carrying value and fair value of our long-term debt, excluding finance leases, debt issuance costs and original issue premium or discount, as of December 31, 2023 and September 30, 2023: December 31, 2023 September 30, 2023 (In thousands) Carrying Amount $ 7,460,000 $ 6,560,000 Fair Value $ 6,963,106 $ 5,402,591 |
Nature of Business (Details)
Nature of Business (Details) customer in Millions | Dec. 31, 2023 state regulatedDistributionDivision customer |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of customers serviced (over) | customer | 3.3 |
Number of regulated distribution divisions | regulatedDistributionDivision | 6 |
Number of states with service areas | state | 8 |
Regulation - Schedule of Regula
Regulation - Schedule of Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Regulatory Asset [Line Items] | ||
Regulatory assets | $ 471,795 | $ 554,928 |
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 1,236,749 | 1,284,334 |
Regulatory excess deferred taxes | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 343,075 | 384,513 |
Regulatory cost of removal obligation | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 584,640 | 582,867 |
Deferred gas costs | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 20,889 | 23,093 |
APT annual adjustment mechanism | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 47,768 | 49,894 |
Pension and postretirement benefit costs | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 211,600 | 215,913 |
Other | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 28,777 | 28,054 |
Pension and postretirement benefit costs | ||
Regulatory Asset [Line Items] | ||
Regulatory assets | 18,295 | 20,629 |
Infrastructure mechanisms | ||
Regulatory Asset [Line Items] | ||
Regulatory assets | 167,965 | 229,996 |
Winter Storm Uri incremental costs | ||
Regulatory Asset [Line Items] | ||
Regulatory assets | 28,328 | 32,115 |
Deferred gas costs | ||
Regulatory Asset [Line Items] | ||
Regulatory assets | 129,891 | 148,297 |
Regulatory excess deferred taxes | ||
Regulatory Asset [Line Items] | ||
Regulatory assets | 47,772 | 47,549 |
Recoverable loss on reacquired debt | ||
Regulatory Asset [Line Items] | ||
Regulatory assets | 3,196 | 3,238 |
Deferred pipeline record collection costs | ||
Regulatory Asset [Line Items] | ||
Regulatory assets | 59,830 | 54,008 |
Other | ||
Regulatory Asset [Line Items] | ||
Regulatory assets | $ 16,518 | $ 19,096 |
Regulation - Narrative (Details
Regulation - Narrative (Details) - Texas - Winter Storm Uri - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Sep. 01, 2022 | Mar. 31, 2023 | Dec. 31, 2023 | Sep. 30, 2023 | |
Extraordinary Gas Cost | ||||
Regulatory Asset [Line Items] | ||||
Regulatory asset, authorized | $ 3,500 | |||
Extraordinary Gas Cost | Minimum | ||||
Regulatory Asset [Line Items] | ||||
Regulatory asset, maturity period | 12 years | |||
Extraordinary Gas Cost | Maximum | ||||
Regulatory Asset [Line Items] | ||||
Regulatory asset, maturity period | 18 years | |||
Winter Storm Uri incremental costs | ||||
Regulatory Asset [Line Items] | ||||
Regulatory asset, deferred costs | $ 32.4 | |||
Regulatory asset, deferred costs, remaining | $ 10.9 | |||
Winter Storm Uri incremental costs | Other current assets | ||||
Regulatory Asset [Line Items] | ||||
Regulatory asset, recovering cost | $ 17.4 | $ 21.2 |
Segment Information - Narrative
Segment Information - Narrative (Details) | Dec. 31, 2023 state |
Segment Reporting [Abstract] | |
Number of states with service areas | 8 |
Segment Information - Schedule
Segment Information - Schedule of Income Statements and Capital Expenditures By Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Operating revenues | $ 1,158,467 | $ 1,484,009 |
Purchased gas cost | 338,869 | 738,249 |
Operation and maintenance expense | 166,345 | 185,016 |
Depreciation and amortization expense | 164,608 | 146,020 |
Taxes, other than income | 89,540 | 93,538 |
Operating income | 399,105 | 321,186 |
Other non-operating income | 17,886 | 21,191 |
Interest charges | 51,875 | 36,760 |
Income before income taxes | 365,116 | 305,617 |
Income tax expense | 53,824 | 33,757 |
Net income | 311,292 | 271,860 |
Capital expenditures | 769,650 | 795,660 |
Distribution segment | ||
Segment Reporting Information [Line Items] | ||
Operating revenues | 1,104,619 | 1,439,693 |
Pipeline and storage segment | ||
Segment Reporting Information [Line Items] | ||
Operating revenues | 53,848 | 44,316 |
Eliminations | ||
Segment Reporting Information [Line Items] | ||
Operating revenues | (158,040) | (143,046) |
Purchased gas cost | (157,797) | (142,808) |
Operation and maintenance expense | (243) | (238) |
Depreciation and amortization expense | 0 | 0 |
Taxes, other than income | 0 | 0 |
Operating income | 0 | 0 |
Other non-operating income | 0 | 0 |
Interest charges | 0 | 0 |
Income before income taxes | 0 | 0 |
Income tax expense | 0 | 0 |
Net income | 0 | 0 |
Capital expenditures | 0 | 0 |
Eliminations | Distribution segment | ||
Segment Reporting Information [Line Items] | ||
Operating revenues | 719 | 733 |
Eliminations | Pipeline and storage segment | ||
Segment Reporting Information [Line Items] | ||
Operating revenues | 157,321 | 142,313 |
Operating Segments | Distribution segment | ||
Segment Reporting Information [Line Items] | ||
Operating revenues | 1,105,338 | 1,440,426 |
Purchased gas cost | 496,662 | 881,915 |
Operation and maintenance expense | 127,615 | 136,469 |
Depreciation and amortization expense | 119,685 | 105,664 |
Taxes, other than income | 80,895 | 84,622 |
Operating income | 280,481 | 231,756 |
Other non-operating income | 5,839 | 6,774 |
Interest charges | 34,581 | 22,839 |
Income before income taxes | 251,739 | 215,691 |
Income tax expense | 30,302 | 21,223 |
Net income | 221,437 | 194,468 |
Capital expenditures | 539,158 | 443,544 |
Operating Segments | Pipeline and storage segment | ||
Segment Reporting Information [Line Items] | ||
Operating revenues | 211,169 | 186,629 |
Purchased gas cost | 4 | (858) |
Operation and maintenance expense | 38,973 | 48,785 |
Depreciation and amortization expense | 44,923 | 40,356 |
Taxes, other than income | 8,645 | 8,916 |
Operating income | 118,624 | 89,430 |
Other non-operating income | 12,047 | 14,417 |
Interest charges | 17,294 | 13,921 |
Income before income taxes | 113,377 | 89,926 |
Income tax expense | 23,522 | 12,534 |
Net income | 89,855 | 77,392 |
Capital expenditures | $ 230,492 | $ 352,116 |
Segment Information - Schedul_2
Segment Information - Schedule of Balance Sheet Information by Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Segment Reporting Information [Line Items] | ||
Net property, plant and equipment | $ 20,319,481 | $ 19,606,583 |
Total assets | 23,684,243 | 22,516,968 |
Operating Segments | Distribution | ||
Segment Reporting Information [Line Items] | ||
Net property, plant and equipment | 14,907,406 | 14,402,578 |
Total assets | 22,874,926 | 21,716,467 |
Operating Segments | Pipeline and Storage | ||
Segment Reporting Information [Line Items] | ||
Net property, plant and equipment | 5,412,075 | 5,204,005 |
Total assets | 5,721,542 | 5,504,972 |
Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net property, plant and equipment | 0 | 0 |
Total assets | $ (4,912,225) | $ (4,704,471) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Basic Earnings Per Share | ||
Net income | $ 311,292 | $ 271,860 |
Less: Income allocated to participating securities | 186 | 167 |
Income available to common shareholders | $ 311,106 | $ 271,693 |
Basic weighted average shares outstanding (in shares) | 149,796 | 141,820 |
Net income per share - Basic (USD per share) | $ 2.08 | $ 1.92 |
Diluted Earnings Per Share | ||
Income available to common shareholders | $ 311,106 | $ 271,693 |
Effect of dilutive shares | 0 | 0 |
Income available to common shareholders | $ 311,106 | $ 271,693 |
Basic weighted average shares outstanding (in shares) | 149,796 | 141,820 |
Dilutive shares (in shares) | 0 | 117 |
Diluted weighted average shares outstanding (in shares) | 149,796 | 141,937 |
Net income per share - Diluted (USD per share) | $ 2.08 | $ 1.91 |
Revenue and Accounts Receivab_3
Revenue and Accounts Receivable - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | $ 1,158,467 | $ 1,484,009 |
Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 1,104,619 | 1,439,693 |
Pipeline and Storage | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 53,848 | 44,316 |
Operating Segments | Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,084,160 | 1,458,203 |
Alternative revenue program revenues | 17,401 | (18,322) |
Other revenues | 3,777 | 545 |
Total operating revenues | 1,105,338 | 1,440,426 |
Operating Segments | Distribution | Gas sales revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,047,750 | 1,423,759 |
Operating Segments | Distribution | Gas sales revenues | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 727,682 | 953,051 |
Operating Segments | Distribution | Gas sales revenues | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 277,253 | 388,667 |
Operating Segments | Distribution | Gas sales revenues | Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 28,231 | 59,215 |
Operating Segments | Distribution | Gas sales revenues | Public authority and other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 14,584 | 22,826 |
Operating Segments | Distribution | Transportation revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 33,767 | 32,162 |
Operating Segments | Distribution | Miscellaneous revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 2,643 | 2,282 |
Operating Segments | Pipeline and Storage | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 218,347 | 197,974 |
Alternative revenue program revenues | (7,178) | (11,345) |
Other revenues | 0 | 0 |
Total operating revenues | 211,169 | 186,629 |
Operating Segments | Pipeline and Storage | Gas sales revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments | Pipeline and Storage | Gas sales revenues | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments | Pipeline and Storage | Gas sales revenues | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments | Pipeline and Storage | Gas sales revenues | Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments | Pipeline and Storage | Gas sales revenues | Public authority and other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Operating Segments | Pipeline and Storage | Transportation revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 215,305 | 195,252 |
Operating Segments | Pipeline and Storage | Miscellaneous revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | $ 3,042 | $ 2,722 |
Revenue and Accounts Receivab_4
Revenue and Accounts Receivable - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 21 Months Ended | ||
Nov. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | |
Disaggregation of Revenue [Line Items] | |||||
Percent of customers excluded | 88% | 88% | |||
Reduction to bad debt expense | $ (6,750) | $ (7,233) | |||
Recovery of uncollectible accounts, not yet been written off | $ 4,192 | ||||
Mississippi Public Service Commission | |||||
Disaggregation of Revenue [Line Items] | |||||
Recovery of uncollectible accounts, term | 1 year | 2 years | 2 years | 2 years | |
Reduction to bad debt expense | $ 13,900 | ||||
Recovery of uncollectible accounts, previously written off but not yet recovered through rates | $ 9,700 | ||||
Recovery of uncollectible accounts, not yet been written off | $ 4,200 | ||||
Distribution segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Regulatory mechanism threshold (in percent) | 75% | ||||
Pipeline and storage segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Rate case revenue benchmark | $ 69,400 | $ 106,900 |
Revenue and Accounts Receivab_5
Revenue and Accounts Receivable - Schedule of Rollforward of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 40,840 | $ 49,993 |
Current period provisions | 6,750 | 7,233 |
Write-offs charged against allowance | (8,757) | (10,421) |
Recoveries of amounts previously written off | 765 | 808 |
Mississippi recovery of uncollectible accounts | (4,192) | |
Ending balance | $ 35,406 | $ 47,613 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 7,460,000 | $ 6,560,000 |
Finance lease obligations | 50,052 | 50,393 |
Total long-term debt | 7,510,052 | 6,610,393 |
Less: | ||
Original issue discount on unsecured senior notes and debentures | 7,723 | 6,104 |
Debt issuance cost | 56,573 | 48,588 |
Current maturities of long-term debt | 1,561 | 1,568 |
Total long-term debt, net | $ 7,444,195 | 6,554,133 |
Unsecured 3.00% Senior Notes, due June 2027 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3% | |
Long-term debt | $ 500,000 | 500,000 |
Unsecured 2.625% Senior Notes, due September 2029 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.625% | |
Long-term debt | $ 500,000 | 500,000 |
Unsecured 1.50% Senior Notes, due January 2031 | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.50% | |
Long-term debt | $ 600,000 | 600,000 |
Unsecured 5.45% Senior Notes, due October 2032 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.45% | |
Long-term debt | $ 300,000 | 300,000 |
Unsecured 5.90% Senior Notes, due October 2033 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.90% | |
Long-term debt | $ 400,000 | 0 |
Unsecured 5.95% Senior Notes, due October 2034 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.95% | |
Long-term debt | $ 200,000 | 200,000 |
Unsecured 5.50% Senior Notes, due June 2041 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.50% | |
Long-term debt | $ 400,000 | 400,000 |
Unsecured 4.15% Senior Notes, due January 2043 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.15% | |
Long-term debt | $ 500,000 | 500,000 |
Unsecured 4.125% Senior Notes, due October 2044 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.125% | |
Long-term debt | $ 750,000 | 750,000 |
Unsecured 4.30% Senior Notes, due October 2048 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.30% | |
Long-term debt | $ 600,000 | 600,000 |
Unsecured 4.125% Senior Notes, due March 2049 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.125% | |
Long-term debt | $ 450,000 | 450,000 |
Unsecured 3.375% Senior Notes, due September 2049 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.375% | |
Long-term debt | $ 500,000 | 500,000 |
Unsecured 2.85% Senior Notes, due February 2052 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.85% | |
Long-term debt | $ 600,000 | 600,000 |
Unsecured 5.75% Senior Notes, due October 2052 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.75% | |
Long-term debt | $ 500,000 | 500,000 |
Unsecured 6.20% Senior Notes, due October 2053 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.20% | |
Long-term debt | $ 500,000 | 0 |
Medium-term note Series A, 1995-1, 6.67%, due December 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.67% | |
Long-term debt | $ 10,000 | 10,000 |
Unsecured 6.75% Debentures, due July 2028 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.75% | |
Long-term debt | $ 150,000 | $ 150,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 3 Months Ended | |||
Oct. 10, 2023 USD ($) | Dec. 31, 2023 USD ($) creditFacility | Dec. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) | |
Line Of Credit Facility [Line Items] | ||||
Proceeds from issuance of long-term debt | $ 898,275,000 | $ 797,258,000 | ||
Maximum debt-to-total-capitalization ratio | 70% | |||
Debt-to-total-capitalization ratio | 0.41 | |||
Minimum | ||||
Line Of Credit Facility [Line Items] | ||||
Outstanding indebtedness | $ 15,000,000 | |||
Maximum | ||||
Line Of Credit Facility [Line Items] | ||||
Outstanding indebtedness | 100,000,000 | |||
Unsecured Senior Notes Due October 2053 | Senior Notes | ||||
Line Of Credit Facility [Line Items] | ||||
Debt face amount | $ 500,000,000 | |||
Interest rate | 6.20% | |||
Effective rate | 5.56% | |||
Unsecured Senior Notes Due October 2033 | Senior Notes | ||||
Line Of Credit Facility [Line Items] | ||||
Debt face amount | $ 400,000,000 | |||
Interest rate | 5.90% | |||
Effective rate | 4.35% | |||
Unsecured Senior Notes Due October 2033 and Unsecured Senior Notes Due October 2053 | Senior Notes | ||||
Line Of Credit Facility [Line Items] | ||||
Proceeds from issuance of long-term debt | $ 889,400,000 | |||
Five Year Unsecured Revolving Credit Agreement | ||||
Line Of Credit Facility [Line Items] | ||||
Outstanding commercial paper | $ 0 | $ 241,900,000 | ||
Five Year Unsecured Revolving Credit Agreement | Minimum | Base Rate | ||||
Line Of Credit Facility [Line Items] | ||||
Interest rate spread | 0% | |||
Five Year Unsecured Revolving Credit Agreement | Minimum | SOFR | ||||
Line Of Credit Facility [Line Items] | ||||
Interest rate spread | 0.75% | |||
Five Year Unsecured Revolving Credit Agreement | Maximum | Base Rate | ||||
Line Of Credit Facility [Line Items] | ||||
Interest rate spread | 0.25% | |||
Five Year Unsecured Revolving Credit Agreement | Maximum | SOFR | ||||
Line Of Credit Facility [Line Items] | ||||
Interest rate spread | 1.25% | |||
Five Year Unsecured Revolving Credit Agreement | Commercial Paper | ||||
Line Of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 1,500,000,000 | |||
Debt agreement term | 5 years | |||
Accordion feature | $ 250,000,000 | |||
Maximum borrowing capacity post accordion feature | 1,750,000,000 | |||
Five Year Unsecured Revolving Credit Agreement | Revolving Credit Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 2,500,000,000 | |||
Number of credit facilities | creditFacility | 4 | |||
$900 Million Revolving Credit Facility | Revolving Credit Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 900,000,000 | |||
Debt agreement term | 3 years | |||
Accordion feature | $ 100,000,000 | |||
Maximum borrowing capacity post accordion feature | 1,000,000,000 | |||
Outstanding borrowings | $ 0 | 0 | ||
$900 Million Revolving Credit Facility | Revolving Credit Facility | Minimum | Base Rate | ||||
Line Of Credit Facility [Line Items] | ||||
Interest rate spread | 0% | |||
$900 Million Revolving Credit Facility | Revolving Credit Facility | Minimum | SOFR | ||||
Line Of Credit Facility [Line Items] | ||||
Interest rate spread | 0.75% | |||
$900 Million Revolving Credit Facility | Revolving Credit Facility | Maximum | Base Rate | ||||
Line Of Credit Facility [Line Items] | ||||
Interest rate spread | 0.25% | |||
$900 Million Revolving Credit Facility | Revolving Credit Facility | Maximum | SOFR | ||||
Line Of Credit Facility [Line Items] | ||||
Interest rate spread | 1.25% | |||
$50 Million Bank Loan Agreement | Line of Credit | ||||
Line Of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 50,000,000 | |||
Debt agreement term | 364 days | |||
Outstanding borrowings | $ 0 | $ 0 | ||
$50 Million Revolving Credit Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Outstanding borrowings | 0 | |||
$50 Million Revolving Credit Facility | Revolving Credit Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 50,000,000 | |||
Debt agreement term | 364 days | |||
Remaining borrowing capacity | $ 44,400,000 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Components of Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Common stock outstanding, beginning balance (in shares) | 148,492,783 | |
Shareholders' equity, beginning balance | $ 10,870,064 | $ 9,419,091 |
Net income | 311,292 | 271,860 |
Other comprehensive income (loss) | (49,936) | 22,218 |
Cash dividends | (119,898) | (104,552) |
Public and other stock offerings | 257,768 | 223,779 |
Stock-based compensation plans | $ 3,919 | 3,878 |
Common stock outstanding, ending balance (in shares) | 150,834,397 | |
Shareholders' equity, ending balance | $ 11,273,209 | $ 9,836,274 |
Cash dividends per share (USD per share) | $ 0.805 | $ 0.740 |
Common stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Common stock outstanding, beginning balance (in shares) | 148,492,783 | 140,896,598 |
Shareholders' equity, beginning balance | $ 742 | $ 704 |
Public and other stock offerings (in shares) | 2,177,864 | 2,147,210 |
Public and other stock offerings | $ 11 | $ 11 |
Stock-based compensation plans (in shares) | 163,750 | 111,953 |
Stock-based compensation plans | $ 1 | $ 1 |
Common stock outstanding, ending balance (in shares) | 150,834,397 | 143,155,761 |
Shareholders' equity, ending balance | $ 754 | $ 716 |
Additional Paid-in Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Shareholders' equity, beginning balance | 6,684,120 | 5,838,118 |
Public and other stock offerings | 257,757 | 223,768 |
Stock-based compensation plans | 3,918 | 3,877 |
Shareholders' equity, ending balance | 6,945,795 | 6,065,763 |
Accumulated Other Comprehensive Income (Loss) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Shareholders' equity, beginning balance | 518,528 | 369,112 |
Other comprehensive income (loss) | (49,936) | 22,218 |
Shareholders' equity, ending balance | 468,592 | 391,330 |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Shareholders' equity, beginning balance | 3,666,674 | 3,211,157 |
Net income | 311,292 | 271,860 |
Cash dividends | (119,898) | (104,552) |
Shareholders' equity, ending balance | $ 3,858,068 | $ 3,378,465 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Class of Stock [Line Items] | ||
Forward sales equity agreement, settlement in cash | $ 473,472,000 | |
Net proceeds from equity issuances | 254,022,000 | $ 220,000,000 |
Shelf Registration Statement | ||
Class of Stock [Line Items] | ||
Debt and equity securities authorized for issuance | 5,000,000,000 | |
Debt and equity securities authorized for issuance value remaining | 3,100,000,000 | |
At-The-Market | ||
Class of Stock [Line Items] | ||
Value of shares authorized for issuance | $ 1,000,000,000 | |
Forward sales equity agreement (in shares) | 2,284,076 | |
Forward sales equity agreement, settlement in cash | $ 261,400,000 | |
Shares issued (in shares) | 2,144,558 | |
Net proceeds from equity issuances | $ 254,000,000 | |
Equity available for issuance | $ 499,100,000 |
Shareholders' Equity - Schedu_2
Shareholders' Equity - Schedule of Forward Sales Agreement (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Forward Contract Indexed to Issuer's Equity [Line Items] | |
Shares available (in shares) | shares | 4,100,543 |
Net proceeds available | $ | $ 473,472 |
Forward price (USD per share) | $ / shares | $ 115.47 |
Forward Sales Equity Agreement Maturing Quarter Ended September 30 2024 | |
Forward Contract Indexed to Issuer's Equity [Line Items] | |
Shares available (in shares) | shares | 861,655 |
Net proceeds available | $ | $ 101,376 |
Forward price (USD per share) | $ / shares | $ 117.65 |
Forward Sales Equity Agreement Maturing Quarter Ended December 31, 2024 | |
Forward Contract Indexed to Issuer's Equity [Line Items] | |
Shares available (in shares) | shares | 2,176,974 |
Net proceeds available | $ | $ 250,866 |
Forward price (USD per share) | $ / shares | $ 115.24 |
Forward Sales Equity Agreement Maturing Quarter Ended June 30, 2025 | |
Forward Contract Indexed to Issuer's Equity [Line Items] | |
Shares available (in shares) | shares | 1,061,914 |
Net proceeds available | $ | $ 121,230 |
Forward price (USD per share) | $ / shares | $ 114.16 |
Shareholders' Equity - Schedu_3
Shareholders' Equity - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Shareholders' equity, beginning balance | $ 10,870,064 | $ 9,419,091 |
Other comprehensive income (loss) before reclassifications | (47,445) | 22,748 |
Amounts reclassified from accumulated other comprehensive income | (2,491) | (530) |
Total other comprehensive income (loss) | (49,936) | 22,218 |
Shareholders' equity, ending balance | 11,273,209 | 9,836,274 |
Available- for-Sale Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Shareholders' equity, beginning balance | (369) | (495) |
Other comprehensive income (loss) before reclassifications | 296 | 87 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Total other comprehensive income (loss) | 296 | 87 |
Shareholders' equity, ending balance | (73) | (408) |
Interest Rate Agreement Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Shareholders' equity, beginning balance | 518,897 | 369,607 |
Other comprehensive income (loss) before reclassifications | (47,741) | 22,661 |
Amounts reclassified from accumulated other comprehensive income | (2,491) | (530) |
Total other comprehensive income (loss) | (50,232) | 22,131 |
Shareholders' equity, ending balance | 468,665 | 391,738 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Shareholders' equity, beginning balance | 518,528 | 369,112 |
Total other comprehensive income (loss) | (49,936) | 22,218 |
Shareholders' equity, ending balance | $ 468,592 | $ 391,330 |
Variable Interest Entity - Narr
Variable Interest Entity - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 |
Variable Interest Entity [Line Items] | |||
Long-term debt, fair value | $ 6,963,106 | $ 5,402,591 | |
Securitized Utility Tariff Bonds | Senior Notes | AEK | Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Debt face amount | $ 95,000 | ||
Long-term debt | 95,000 | ||
Long-term debt, fair value | $ 96,200 |
Variable Interest Entity - Sche
Variable Interest Entity - Schedule of Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Variable Interest Entity [Line Items] | ||
Restricted cash and cash equivalents | $ 7,130 | $ 3,844 |
Other current assets | 526,927 | 292,036 |
Securitized intangible asset, net | 90,036 | 92,202 |
Current maturities of securitized long-term debt | 9,922 | 9,922 |
Securitized long-term debt | 85,078 | 85,078 |
Variable Interest Entity, Primary Beneficiary | AEK | ||
Variable Interest Entity [Line Items] | ||
Restricted cash and cash equivalents | 7,130 | 3,844 |
Other current assets | 23 | 11 |
Securitized intangible asset, net | 90,036 | 92,202 |
Accrued interest | 2,598 | 1,374 |
Current maturities of securitized long-term debt | 9,922 | 9,922 |
Securitized long-term debt | $ 85,078 | $ 85,078 |
Variable Interest Entity - Cons
Variable Interest Entity - Consolidated Statement of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Variable Interest Entity [Line Items] | ||
Operating revenues | $ 1,158,467 | $ 1,484,009 |
Amortization expense | (164,608) | (146,020) |
Interest expense, net | (51,875) | (36,760) |
Income before income taxes | 365,116 | $ 305,617 |
Variable Interest Entity, Primary Beneficiary | AEK | ||
Variable Interest Entity [Line Items] | ||
Operating revenues | 3,333 | |
Amortization expense | (2,166) | |
Interest expense, net | (1,167) | |
Income before income taxes | $ 0 |
Interim Pension and Other Pos_3
Interim Pension and Other Postretirement Benefit Plan Information - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Nov. 30, 2023 | Nov. 29, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2024 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate | 5.82% | 6.17% | |||
Forecast | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Decrease of costs from plan revaluation | $ 400 | ||||
Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Settlement charge | $ 776 | $ 0 |
Interim Pension and Other Pos_4
Interim Pension and Other Postretirement Benefit Plan Information - Schedule of Components of Net Periodic Pension Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 2,389 | $ 2,908 |
Interest cost | 7,497 | 7,325 |
Expected return on assets | (7,202) | (7,278) |
Amortization of prior service cost (credit) | 0 | (30) |
Amortization of actuarial (gain) loss | 118 | 164 |
Settlements | (776) | 0 |
Net periodic pension cost | 3,578 | 3,089 |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1,507 | 1,546 |
Interest cost | 3,509 | 3,478 |
Expected return on assets | (3,128) | (2,804) |
Amortization of prior service cost (credit) | (3,260) | (3,285) |
Amortization of actuarial (gain) loss | (2,718) | (1,863) |
Settlements | 0 | 0 |
Net periodic pension cost | $ (4,090) | $ (2,928) |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended | |
Dec. 31, 2023 $ / Mcf MMcf | Jan. 24, 2024 fatality | |
Subsequent Event | National Transportation Safety Board | ||
Long-term Purchase Commitment [Line Items] | ||
Number of fatalities under investigation | fatality | 1 | |
Supply Commitment | ||
Long-term Purchase Commitment [Line Items] | ||
Contract term | 1 year | |
Purchase commitment volume | 12,500 | |
Supply Commitment | Weighted Average | ||
Long-term Purchase Commitment [Line Items] | ||
Fixed price contracts (USD per Mcf) | $ / Mcf | 2.89 | |
Supply Commitment | Short-term Contract with Customer | ||
Long-term Purchase Commitment [Line Items] | ||
Contract term | 1 year | |
Purchase commitment volume | 71,800 | |
Supply Commitment | Long-term Contract with Customer Within Two To Three Years | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase commitment volume | 51,300 | |
Supply Commitment | Long-term Contract with Customer Within Two To Three Years | Minimum | ||
Long-term Purchase Commitment [Line Items] | ||
Contract term | 2 years | |
Supply Commitment | Long-term Contract with Customer Within Two To Three Years | Maximum | ||
Long-term Purchase Commitment [Line Items] | ||
Contract term | 3 years |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | |
Income Tax Contingency [Line Items] | |||
Effective income tax rate | 14.70% | 11% | |
Regulatory liabilities | $ 1,236,749 | $ 1,284,334 | |
Regulatory excess deferred taxes | |||
Income Tax Contingency [Line Items] | |||
Deferred tax liabilities, net | 295,300 | ||
Regulatory liabilities | 343,075 | 384,513 | |
Regulatory excess deferred taxes | Other Current Liabilities | |||
Income Tax Contingency [Line Items] | |||
Deferred tax liabilities, net | 111,100 | $ 131,300 | |
Regulatory excess deferred taxes, to be returned, tranche one | |||
Income Tax Contingency [Line Items] | |||
Deferred tax liabilities, net | $ 241,900 | ||
Regulatory excess deferred taxes, to be returned, tranche one | Minimum | |||
Income Tax Contingency [Line Items] | |||
Return basis, term | 12 months | ||
Regulatory excess deferred taxes, to be returned, tranche one | Maximum | |||
Income Tax Contingency [Line Items] | |||
Return basis, term | 60 months | ||
Regulatory excess deferred taxes, to be returned, tranche two | |||
Income Tax Contingency [Line Items] | |||
Regulatory liabilities | $ 52,400 | ||
Regulatory excess deferred taxes, to be returned, tranche two | Minimum | |||
Income Tax Contingency [Line Items] | |||
Return basis, term | 15 years | ||
Regulatory excess deferred taxes, to be returned, tranche two | Maximum | |||
Income Tax Contingency [Line Items] | |||
Return basis, term | 69 years | ||
Regulatory excess deferred taxes, to be returned, tranche three | |||
Income Tax Contingency [Line Items] | |||
Deferred tax liabilities, net | $ 1,000 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) | 3 Months Ended | ||
Dec. 31, 2023 USD ($) MMcf | Dec. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) | |
Derivative [Line Items] | |||
Purchase commitment volume | MMcf | 20,045 | ||
Contract netting | $ 0 | $ 0 | |
Cash collateral | 0 | $ 0 | |
Net (gain) loss on settled interest rate agreements | (3,200,000) | $ (700,000) | |
Net realized gains in AOCI | $ 222,300,000 | ||
Not Designated As Hedges: | Gas Purchases | Commodity contracts | |||
Derivative [Line Items] | |||
Purchase commitment volume | MMcf | 30,200 | ||
Not Designated As Hedges: | Gas Purchases | Commodity contracts | Minimum | |||
Derivative [Line Items] | |||
Hedging percent | 25% | ||
Not Designated As Hedges: | Gas Purchases | Commodity contracts | Maximum | |||
Derivative [Line Items] | |||
Hedging percent | 50% |
Financial Instruments - Schedul
Financial Instruments - Schedule of Interest Rate Risk Management Activities (Details) - Cash Flow Hedging - Designated As Hedge $ in Thousands | Dec. 31, 2023 USD ($) |
Forward Interest Rate Swap | |
Derivative [Line Items] | |
Derivative notional amount | $ 900,000 |
Forward Interest Rate Swap, Planned Issued Fiscal 2025 | |
Derivative [Line Items] | |
Derivative notional amount | 600,000 |
Forward Interest Rate Swap, Planned Issued Fiscal 2026 | |
Derivative [Line Items] | |
Derivative notional amount | $ 300,000 |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Derivatives Fair Value [Line Items] | ||
Net financial instruments, assets | $ 320,867 | $ 385,664 |
Net financial instruments, liabilities | (21,596) | (15,408) |
Designated As Hedges: | ||
Derivatives Fair Value [Line Items] | ||
Gross financial instruments, assets | 317,561 | 379,101 |
Gross financial instruments, liabilities | 0 | 0 |
Designated As Hedges: | Other current assets | Interest rate contracts | ||
Derivatives Fair Value [Line Items] | ||
Gross financial instruments, assets | 232,975 | |
Designated As Hedges: | Other current liabilities | Interest rate contracts | ||
Derivatives Fair Value [Line Items] | ||
Gross financial instruments, liabilities | 0 | |
Designated As Hedges: | Deferred charges and other assets | Interest rate contracts | ||
Derivatives Fair Value [Line Items] | ||
Gross financial instruments, assets | 84,586 | 379,101 |
Designated As Hedges: | Deferred credits and other liabilities | Interest rate contracts | ||
Derivatives Fair Value [Line Items] | ||
Gross financial instruments, liabilities | 0 | 0 |
Not Designated As Hedges: | ||
Derivatives Fair Value [Line Items] | ||
Gross financial instruments, assets | 3,306 | 6,563 |
Gross financial instruments, liabilities | (21,596) | (15,408) |
Not Designated As Hedges: | Other current assets | Commodity contracts | ||
Derivatives Fair Value [Line Items] | ||
Gross financial instruments, assets | 2,545 | 4,071 |
Not Designated As Hedges: | Other current liabilities | Commodity contracts | ||
Derivatives Fair Value [Line Items] | ||
Gross financial instruments, liabilities | (19,819) | (14,584) |
Not Designated As Hedges: | Deferred charges and other assets | Commodity contracts | ||
Derivatives Fair Value [Line Items] | ||
Gross financial instruments, assets | 761 | 2,492 |
Not Designated As Hedges: | Deferred credits and other liabilities | Commodity contracts | ||
Derivatives Fair Value [Line Items] | ||
Gross financial instruments, liabilities | $ (1,777) | $ (824) |
Financial Instruments - Sched_3
Financial Instruments - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Increase (decrease) in fair value: | ||
Interest rate agreements | $ (47,741) | $ 22,661 |
Recognition of (gains) losses in earnings due to settlements: | ||
Interest rate agreements | (2,491) | (530) |
Total other comprehensive income (loss) from hedging, net of tax | $ (50,232) | $ 22,131 |
Financial Instruments - Sched_4
Financial Instruments - Schedule Of Expected Deferred Gains (Losses) Recognition (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2023 USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Next twelve months | $ 9,965 |
Thereafter | 212,342 |
Total | $ 222,307 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial instruments net assets | $ 320,867 | $ 385,664 |
Debt and equity securities | 107,254 | 104,602 |
Total assets | 428,121 | 490,266 |
Financial instruments net liability | 21,596 | 15,408 |
Registered investment companies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 28,466 | 26,685 |
Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 38,584 | 37,573 |
Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities | 36,343 | 35,507 |
Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 3,861 | 4,837 |
Quoted Prices in Active Markets (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 | 67,050 | 64,258 |
Total assets | 67,050 | 64,258 |
Financial instruments gross liability | 0 | 0 |
Quoted Prices in Active Markets (Level 1) | Registered investment companies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 28,466 | 26,685 |
Quoted Prices in Active Markets (Level 1) | Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 38,584 | 37,573 |
Quoted Prices in Active Markets (Level 1) | Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Quoted Prices in Active Markets (Level 1) | Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial instruments gross assets | 320,867 | 385,664 |
Debt and equity securities | 40,204 | 40,344 |
Total assets | 361,071 | 426,008 |
Financial instruments gross liability | 21,596 | 15,408 |
Significant Other Observable Inputs (Level 2) | Registered investment companies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities | 36,343 | 35,507 |
Significant Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 3,861 | 4,837 |
Significant Other Unobservable 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 |
Significant Other Unobservable Inputs (Level 3) | Registered investment companies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Significant Other Unobservable Inputs (Level 3) | Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Significant Other Unobservable Inputs (Level 3) | Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Significant Other Unobservable 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 ($) | Dec. 31, 2023 | Sep. 30, 2023 |
Fair Value Disclosures [Abstract] | ||
Allowance for credit losses | $ 0 | |
Cost basis | $ 36,400,000 | $ 36,000,000 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Fair Value Disclosures [Abstract] | ||
Carrying Amount | $ 7,460,000 | $ 6,560,000 |
Fair Value | $ 6,963,106 | $ 5,402,591 |