|
|
|
|
|
|
|
As of September 30 | ||||||||
2010 | 2009 | |||||||
(Thousands) | ||||||||
Utility |
$ | 1,657,686 | $ | 1,616,908 | ||||
Pipeline and Storage |
1,241,179 | 1,196,937 | ||||||
Exploration and Production |
2,294,235 | 1,972,353 | ||||||
Energy Marketing |
1,634 | 1,241 | ||||||
All Other and Corporate |
127,939 | 154,512 | ||||||
$ | 5,322,673 | $ | 4,941,951 | |||||
Year Ended September 30 | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Utility |
2.6 | % | 2.6 | % | 2.6 | % | ||||||
Pipeline and Storage |
3.0 | % | 3.0 | % | 3.2 | % | ||||||
Exploration and Production, per Mcfe(1) |
$ | 2.14 | $ | 2.14 | $ | 2.26 | ||||||
Energy Marketing |
2.9 | % | 3.4 | % | 3.5 | % | ||||||
All Other and Corporate |
6.6 | % | 5.2 | % | 4.3 | % |
(1) | Amounts include depletion of oil and gas producing properties as well as depreciation of fixed assets. As disclosed in Note Q — Supplementary Information for Oil and Gas Producing Properties, depletion of oil and gas producing properties amounted to $2.10, $2.10 and $2.23 per Mcfe of production in 2010, 2009 and 2008, respectively. |
Year Ended September 30 | ||||||||
2010 | 2009 | |||||||
(Thousands) | ||||||||
Funded Status of the Pension and Other Post-Retirement Benefit Plans |
$ | (79,465 | ) | $ | (63,802 | ) | ||
Cumulative Foreign Currency Translation Adjustment |
(51 | ) | (104 | ) | ||||
Net Unrealized Gain on Derivative Financial Instruments |
32,876 | 18,491 | ||||||
Net Unrealized Gain on Securities Available for Sale |
1,655 | 3,019 | ||||||
Accumulated Other Comprehensive Loss |
$ | (44,985 | ) | $ | (42,396 | ) | ||
Year Ended September 30 | ||||||||
2010 | 2009 | |||||||
(Thousands) | ||||||||
Materials and Supplies |
$ | — | $ | 6,349 | ||||
Other Assets |
— | 6,343 | ||||||
$ | — | $ | 12,692 | |||||
Year Ended September 30 | ||||||||
2010 | 2009 | |||||||
(Thousands) | ||||||||
Prepayments |
$ | 13,884 | $ | 12,096 | ||||
Prepaid Property and Other Taxes |
12,413 | 12,059 | ||||||
Federal Income Taxes Receivable |
56,334 | 23,325 | ||||||
State Income Taxes Receivable |
18,007 | 13,469 | ||||||
Fair Values of Firm Commitments |
15,331 | 7,525 | ||||||
$ | 115,969 | $ | 68,474 | |||||
Year Ended September 30 | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Risk Free Interest Rate |
3.55 | % | 2.56 | % | 3.78 | % | ||||||
Expected Life (Years) |
7.75 | 7.50 | 7.25 | |||||||||
Expected Volatility |
23.25 | % | 22.16 | % | 17.69 | % | ||||||
Expected Dividend Yield (Quarterly) |
0.64 | % | 1.09 | % | 0.64 | % |
|
Year Ended September 30 | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Thousands) | ||||||||||||
Balance at Beginning of Year |
$ | 91,373 | $ | 93,247 | $ | 75,939 | ||||||
Liabilities Incurred and Revisions of Estimates |
16,140 | 4,492 | 18,739 | |||||||||
Liabilities Settled |
(12,622 | ) | (13,155 | ) | (6,871 | ) | ||||||
Accretion Expense |
6,727 | 6,789 | 5,440 | |||||||||
Balance at End of Year |
$ | 101,618 | $ | 91,373 | $ | 93,247 |
|
At September 30 | ||||||||
2010 | 2009 | |||||||
(Thousands) | ||||||||
Regulatory Assets(1): |
||||||||
Pension Costs(2) (Note H) |
$ | 308,822 | $ | 262,370 | ||||
Post-Retirement Benefit Costs(2) (Note H) |
159,498 | 198,982 | ||||||
Recoverable Future Taxes (Note D) |
149,712 | 138,435 | ||||||
Environmental Site Remediation Costs(2) (Note I) |
20,491 | 21,456 | ||||||
NYPSC Assessment(2) |
19,229 | 24,445 | ||||||
Asset Retirement Obligations(2) (Note B) |
12,529 | 7,884 | ||||||
Unamortized Debt Expense (Note A) |
5,727 | 6,610 | ||||||
Other(2) |
22,232 | 15,776 | ||||||
Total Regulatory Assets |
698,240 | 675,958 | ||||||
Regulatory Liabilities: |
||||||||
Cost of Removal Regulatory Liability |
124,032 | 105,546 | ||||||
Taxes Refundable to Customers (Note D) |
69,585 | 67,046 | ||||||
Post-Retirement Benefit Costs(3) (Note H) |
42,461 | 45,594 | ||||||
Amounts Payable to Customers (See Regulatory Mechanisms in Note A) |
38,109 | 105,778 | ||||||
Pension Costs(3) (Note H) |
16,171 | 15,409 | ||||||
Off-System Sales and Capacity Release Credits(3) |
11,594 | 8,340 | ||||||
Tax Benefit on Medicare Part D Subsidy(3) |
4,842 | 28,817 | ||||||
Deferred Insurance Proceeds(3) |
2,445 | 3,804 | ||||||
Other(3) |
11,821 | 18,265 | ||||||
Total Regulatory Liabilities |
321,060 | 398,599 | ||||||
Net Regulatory Position |
$ | 377,180 | $ | 277,359 | ||||
(1) | The Company recovers the cost of its regulatory assets but generally does not earn a return on them. There are a few exceptions to this rule. For example, the Company does earn a return on Unrecovered Purchased Gas Costs and, in the New York jurisdiction of its Utility segment, earns a return, within certain parameters, on the excess of cumulative funding to the pension plan over the cumulative amount collected in rates. | |
(2) | Included in Other Regulatory Assets on the Consolidated Balance Sheets. | |
(3) | Included in Other Regulatory Liabilities on the Consolidated Balance Sheets. |
|
Year Ended September 30 | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Thousands) | ||||||||||||
Current Income Taxes — |
||||||||||||
Federal |
$ | 2,074 | $ | 43,300 | $ | 75,169 | ||||||
State |
4,991 | 10,341 | 20,257 | |||||||||
Deferred Income Taxes — |
||||||||||||
Federal |
110,515 | (4,940 | ) | 56,668 | ||||||||
State |
24,164 | 2,419 | 15,828 | |||||||||
141,744 | 51,120 | 167,922 | ||||||||||
Deferred Investment Tax Credit |
(697 | ) | (697 | ) | (697 | ) | ||||||
Total Income Taxes |
$ | 141,047 | $ | 50,423 | $ | 167,225 | ||||||
Presented as Follows: |
||||||||||||
Other Income |
$ | (697 | ) | $ | (697 | ) | $ | (697 | ) | |||
Income Tax Expense — Continuing Operations |
137,227 | 52,859 | 167,672 | |||||||||
Discontinued Operations — |
||||||||||||
Income From Operations |
493 | (1,739 | ) | 250 | ||||||||
Gain on Disposal |
4,024 | — | — | |||||||||
Total Income Taxes |
$ | 141,047 | $ | 50,423 | $ | 167,225 | ||||||
Year Ended September 30 | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Thousands) | ||||||||||||
U.S. Income Before Income Taxes |
$ | 366,960 | $ | 151,131 | $ | 435,953 | ||||||
Income Tax Expense, Computed at U.S. Federal Statutory Rate of 35% |
$ | 128,436 | $ | 52,896 | $ | 152,584 | ||||||
Increase (Reduction) in Taxes Resulting from: |
||||||||||||
State Income Taxes |
18,951 | 8,294 | 23,455 | |||||||||
Miscellaneous |
(6,340 | ) | (10,767 | ) | (8,814 | ) | ||||||
Total Income Taxes |
$ | 141,047 | $ | 50,423 | $ | 167,225 | ||||||
At September 30 | ||||||||
2010 | 2009 | |||||||
(Thousands) | ||||||||
Deferred Tax Liabilities: |
||||||||
Property, Plant and Equipment |
$ | 849,869 | $ | 733,581 | ||||
Pension and Other Post-Retirement Benefit Costs |
177,853 | 178,440 | ||||||
Other |
63,671 | 54,977 | ||||||
Total Deferred Tax Liabilities |
1,091,393 | 966,998 | ||||||
Deferred Tax Assets: |
||||||||
Pension and Other Post-Retirement Benefit Costs |
(223,588 | ) | (212,299 | ) | ||||
Other |
(91,523 | ) | (144,686 | ) | ||||
Total Deferred Tax Assets |
(315,111 | ) | (356,985 | ) | ||||
Total Net Deferred Income Taxes |
$ | 776,282 | $ | 610,013 | ||||
Presented as Follows: |
||||||||
Net Deferred Tax Liability/(Asset) — Current |
$ | (24,476 | ) | $ | (53,863 | ) | ||
Net Deferred Tax Liability — Non-Current |
800,758 | 663,876 | ||||||
Total Net Deferred Income Taxes |
$ | 776,282 | $ | 610,013 | ||||
Year Ended September 30 | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Thousands) | ||||||||||||
Balance at Beginning of Year |
$ | 8,721 | $ | 1,700 | $ | 1,700 | ||||||
Additions for Tax Positions Related to Current Year |
699 | 8,721 | — | |||||||||
Additions for Tax Positions of Prior Years |
45 | — | — | |||||||||
Reductions for Tax Positions of Prior Years |
(975 | ) | — | — | ||||||||
Settlements with Taxing Authorities |
— | (1,700 | ) | — | ||||||||
Lapse of Statute of Limitations |
— | — | — | |||||||||
Balance at End of Year |
$ | 8,490 | $ | 8,721 | $ | 1,700 | ||||||
|
Earnings |
Accumulated |
|||||||||||||||||||
Reinvested |
Other |
|||||||||||||||||||
Paid |
in |
Comprehensive |
||||||||||||||||||
Common Stock | In |
the |
Income |
|||||||||||||||||
Shares | Amount | Capital | Business | (Loss) | ||||||||||||||||
(Thousands, except per share amounts) | ||||||||||||||||||||
Balance at September 30, 2007 |
83,461 | $ | 83,461 | $ | 569,085 | $ | 983,776 | $ | (6,203 | ) | ||||||||||
Net Income Available for Common Stock |
268,728 | |||||||||||||||||||
Dividends Declared on Common Stock ($1.27 Per Share) |
(103,523 | ) | ||||||||||||||||||
Cumulative Effect of the Adoption of Authoritative Guidance for Income Taxes |
(406 | ) | ||||||||||||||||||
Other Comprehensive Income, Net of Tax |
9,166 | |||||||||||||||||||
Share-Based Payment Expense(2) |
2,332 | |||||||||||||||||||
Common Stock Issued Under Stock and Benefit Plans(1) |
854 | 854 | 33,335 | |||||||||||||||||
Share Repurchases |
(5,194 | ) | (5,194 | ) | (37,036 | ) | (194,776 | ) | ||||||||||||
Balance at September 30, 2008 |
79,121 | 79,121 | 567,716 | 953,799 | 2,963 | |||||||||||||||
Net Income Available for Common Stock |
100,708 | |||||||||||||||||||
Dividends Declared on Common Stock ($1.32 Per Share) |
(105,410 | ) | ||||||||||||||||||
Adoption of Authoritative Guidance for Defined Benefit Pension and Other Post-Retirement Plans |
(804 | ) | ||||||||||||||||||
Other Comprehensive Loss, Net of Tax |
(45,359 | ) | ||||||||||||||||||
Share-Based Payment Expense(2) |
2,055 | |||||||||||||||||||
Common Stock Issued Under Stock and Benefit Plans(1) |
1,379 | 1,379 | 33,068 | |||||||||||||||||
Balance at September 30, 2009 |
80,500 | 80,500 | 602,839 | 948,293 | (42,396 | ) | ||||||||||||||
Net Income Available for Common Stock |
225,913 | |||||||||||||||||||
Dividends Declared on Common Stock ($1.36 Per Share) |
(110,944 | ) | ||||||||||||||||||
Other Comprehensive Loss, Net of Tax |
(2,589 | ) | ||||||||||||||||||
Share-Based Payment Expense(2) |
4,435 | |||||||||||||||||||
Common Stock Issued Under Stock and Benefit Plans(1) |
1,575 | 1,575 | 38,345 | |||||||||||||||||
Balance at September 30, 2010 |
82,075 | $ | 82,075 | $ | 645,619 | $ | 1,063,262 | (3) | $ | (44,985 | ) | |||||||||
(1) | Paid in Capital includes tax benefits of $13.2 million, $5.9 million and $16.3 million for September 30, 2010, 2009 and 2008, respectively, associated with the exercise of stock options. | |
(2) | Paid in Capital includes compensation costs associated with stock option, SARs and/or restricted stock awards. The expense is included within Net Income Available For Common Stock, net of tax benefits. |
(3) | The availability of consolidated earnings reinvested in the business for dividends payable in cash is limited under terms of the indentures covering long-term debt. At September 30, 2010, $919.1 million of accumulated earnings was free of such limitations. |
Weighted |
||||||||||||||||
Average |
||||||||||||||||
Number of |
Remaining |
Aggregate |
||||||||||||||
Shares Subject |
Weighted Average |
Contractual |
Intrinsic |
|||||||||||||
to Option | Exercise Price | Life (Years) | Value | |||||||||||||
(In thousands) | ||||||||||||||||
Outstanding at September 30, 2009 |
4,855,100 | $ | 27.18 | |||||||||||||
Granted in 2010 |
— | $ | — | |||||||||||||
Exercised in 2010 |
(1,975,853 | ) | $ | 24.08 | ||||||||||||
Forfeited in 2010 |
— | $ | — | |||||||||||||
Outstanding at September 30, 2010 |
2,879,247 | $ | 29.30 | 2.80 | $ | 64,813 | ||||||||||
Option shares exercisable at September 30, 2010 |
2,879,247 | $ | 29.30 | 2.80 | $ | 64,813 | ||||||||||
Option shares available for future grant at September 30, 2010(1) |
2,645,304 | |||||||||||||||
(1) | Includes shares available for SARs and restricted stock grants. |
Weighted |
||||||||||||||||
Average |
||||||||||||||||
Number of |
Remaining |
Aggregate |
||||||||||||||
Shares Subject |
Weighted Average |
Contractual |
Intrinsic |
|||||||||||||
To Option | Exercise Price | Life (Years) | Value | |||||||||||||
(In thousands) | ||||||||||||||||
Outstanding at September 30, 2009 |
50,000 | $ | 41.20 | |||||||||||||
Granted in 2010 |
— | $ | — | |||||||||||||
Exercised in 2010 |
— | $ | — | |||||||||||||
Forfeited in 2010 |
— | $ | — | |||||||||||||
Outstanding at September 30, 2010 |
50,000 | $ | 41.20 | 6.45 | $ | 531 | ||||||||||
SARs exercisable at September 30, 2010 |
50,000 | $ | 41.20 | 6.45 | $ | 531 | ||||||||||
Weighted |
||||||||||||||||
Average |
||||||||||||||||
Number of |
Remaining |
Aggregate |
||||||||||||||
Shares Subject |
Weighted Average |
Contractual |
Intrinsic |
|||||||||||||
To Option | Exercise Price | Life (Years) | Value | |||||||||||||
(In thousands) | ||||||||||||||||
Outstanding at September 30, 2009 |
925,000 | $ | 36.14 | |||||||||||||
Granted in 2010 |
520,500 | $ | 52.10 | |||||||||||||
Exercised in 2010 |
— | $ | — | |||||||||||||
Forfeited in 2010 |
— | $ | — | |||||||||||||
Canceled in 2010(1) |
(97,007 | ) | $ | 47.37 | ||||||||||||
Outstanding at September 30, 2010 |
1,348,493 | $ | 41.49 | 8.57 | $ | 13,915 | ||||||||||
SARs exercisable at September 30, 2010 |
300,308 | $ | 35.53 | 7.96 | $ | 4,890 | ||||||||||
(1) | Shares were canceled during 2010 due to performance condition not being met. |
Number of |
Weighted Average |
|||||||
Restricted |
Fair Value per |
|||||||
Share Awards | Award | |||||||
Restricted Share Awards Outstanding at September 30, 2009 |
118,000 | $ | 45.58 | |||||
Granted in 2010 |
4,000 | $ | 52.10 | |||||
Vested in 2010 |
(27,500 | ) | $ | 39.70 | ||||
Forfeited in 2010 |
— | $ | — | |||||
Restricted Share Awards Outstanding at September 30, 2010 |
94,500 | $ | 47.57 | |||||
At September 30 | ||||||||
2010 | 2009 | |||||||
(Thousands) | ||||||||
Medium-Term Notes(1): |
||||||||
6.7% to 7.50% due November 2010 to June 2025 |
$ | 449,000 | $ | 449,000 | ||||
Notes(1): |
||||||||
5.25% to 8.75% due March 2013 to May 2019 |
800,000 | 800,000 | ||||||
Total Long-Term Debt |
1,249,000 | 1,249,000 | ||||||
Less Current Portion(2) |
200,000 | — | ||||||
$ | 1,049,000 | $ | 1,249,000 | |||||
(1) | The Medium-Term Notes and Notes are unsecured. | |
(2) | Current Portion of Long-Term Debt at September 30, 2010 consists of $200 million of 7.50% medium-term notes that mature in November 2010. |
|
At Fair Value as of September 30, 2010 | ||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(Dollars in thousands) | ||||||||||||||||
Assets: |
||||||||||||||||
Cash Equivalents — Money Market Mutual Funds |
$ | 277,423 | $ | — | $ | — | $ | 277,423 | ||||||||
Derivative Financial Instruments: |
||||||||||||||||
Over the Counter Swaps — Gas |
— | 67,387 | — | 67,387 | ||||||||||||
Over the Counter Swaps — Oil |
— | — | (2,203 | ) | (2,203 | ) | ||||||||||
Other Investments: |
||||||||||||||||
Balanced Equity Mutual Fund |
17,256 | — | — | 17,256 | ||||||||||||
Common Stock — Financial Services Industry |
4,991 | — | — | 4,991 | ||||||||||||
Other Common Stock |
241 | — | — | 241 | ||||||||||||
Hedging Collateral Deposits |
11,134 | — | — | 11,134 | ||||||||||||
Total |
$ | 311,045 | $ | 67,387 | $ | (2,203 | ) | $ | 376,229 | |||||||
Liabilities: |
||||||||||||||||
Derivative Financial Instruments: |
||||||||||||||||
Commodity Futures Contracts — Gas |
$ | 5,840 | $ | — | $ | — | $ | 5,840 | ||||||||
Over the Counter Swaps — Oil |
— | — | 14,280 | 14,280 | ||||||||||||
Over the Counter Swaps — Gas |
— | 40 | — | 40 | ||||||||||||
Total |
$ | 5,840 | $ | 40 | $ | 14,280 | $ | 20,160 | ||||||||
Total Net Assets/(Liabilities) |
$ | 305,205 | $ | 67,347 | $ | (16,483 | ) | $ | 356,069 | |||||||
At Fair Value as of September 30, 2009 | ||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(Dollars in thousands) | ||||||||||||||||
Assets: |
||||||||||||||||
Cash Equivalents |
$ | 390,462 | $ | — | $ | — | $ | 390,462 | ||||||||
Derivative Financial Instruments |
5,312 | 12,536 | 26,969 | 44,817 | ||||||||||||
Other Investments |
24,276 | — | — | 24,276 | ||||||||||||
Hedging Collateral Deposits |
848 | — | — | 848 | ||||||||||||
Total |
$ | 420,898 | $ | 12,536 | $ | 26,969 | $ | 460,403 | ||||||||
Liabilities: |
||||||||||||||||
Derivative Financial Instruments |
$ | — | $ | 2,148 | $ | — | $ | 2,148 | ||||||||
Total |
$ | — | $ | 2,148 | $ | — | $ | 2,148 | ||||||||
Total Net Assets/(Liabilities) |
$ | 420,898 | $ | 10,388 | $ | 26,969 | $ | 458,255 | ||||||||
Total Gains/Losses— |
||||||||||||||||||||
Realized and Unrealized | ||||||||||||||||||||
Included in Other |
Transfer |
|||||||||||||||||||
October 1, |
Included in |
Comprehensive Income |
In/(Out) of |
September 30, |
||||||||||||||||
2009 | Earnings | (Loss) | Level 3 | 2010 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Derivative Financial Instruments(2) |
$ | 26,969 | $ | (9,372 | )(1) | $ | (34,080 | ) | $ | — | $ | (16,483 | ) | |||||||
(1) | Amounts are reported in Operating Revenues in the Consolidated Statement of Income for the year ended September 30, 2010. | |
(2) | Derivative Financial Instruments are shown on a net basis. |
Total Gains/Losses — |
||||||||||||||||||||
Realized and Unrealized | ||||||||||||||||||||
Included in Other |
Transfer |
|||||||||||||||||||
October 1, |
Included in |
Comprehensive Income |
In/(Out) of |
September 30, |
||||||||||||||||
2008 | Earnings | (Loss) | Level 3 | 2009 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Derivative Financial Instruments(2) |
$ | 6,333 | $ | (59,180 | )(1) | $ | 87,147 | $ | (7,331 | )(3) | $ | 26,969 | ||||||||
(1) | Amounts are reported in Operating Revenues in the Consolidated Statement of Income for the year ended September 30, 2009. | |
(2) | Derivative Financial Instruments are shown on a net basis. | |
(3) | These transfers occurred because the Company was able to obtain and utilize forward-looking, observable basis differential information for its hedges on southern California natural gas production. |
|
At September 30 | ||||||||||||||||
2010 Carrying |
2010 Fair |
2009 Carrying |
2009 Fair |
|||||||||||||
Amount | Value | Amount | Value | |||||||||||||
(Thousands) | ||||||||||||||||
Long-Term Debt |
$ | 1,249,000 | $ | 1,423,349 | $ | 1,249,000 | $ | 1,347,368 | ||||||||
Fair Values of Derivative Instruments | ||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||
Derivatives |
Asset Derivatives | Liability Derivatives | ||||||||||
Designated as |
Consolidated |
Consolidated |
||||||||||
Hedging |
Balance Sheet |
Balance Sheet |
||||||||||
Instruments | Location | Fair Value | Location | Fair Value | ||||||||
Commodity Contracts — at September 30, 2010 |
Fair Value of Derivative Financial Instruments |
$ | 65,184 | Fair Value of Derivative Financial Instruments |
$ | 20,160 | ||||||
Commodity Contracts — at September 30, 2009 |
Fair Value of Derivative Financial Instruments |
$ | 44,817 | Fair Value of Derivative Financial Instruments |
$ | 2,148 |
Derivatives |
||||
Designated as |
Fair Values of Derivative Instruments | |||
Hedging |
(Dollar Amounts in Thousands) | |||
Instruments | Gross Asset Derivatives | Gross Liability Derivatives | ||
Fair Value | Fair Value | |||
Commodity Contracts at September 30, 2010 |
$77,837 | $32,813 | ||
Commodity Contracts at September 30, 2009 |
$63,601 | $20,932 |
Commodity | Units | |
Natural Gas |
37.5 Bcf (all short positions) | |
Crude Oil |
2,688,000 Bbls (all short positions) |
Commodity | Units | |
Natural Gas |
6.2 Bcf (6.1 Bcf short positions (forecasted storage withdrawals) and 0.1 Bcf long positions (forecasted storage injections)) |
The Effect of Derivative Financial Instruments on the Statement of Financial Performance for the |
||||||||||||||||||||||||||||
Year Ended September 30, 2010 and 2009 (Dollar Amounts in Thousands) | ||||||||||||||||||||||||||||
Amount of |
Amount of |
|||||||||||||||||||||||||||
Derivative Gain or |
Derivative Gain or |
|||||||||||||||||||||||||||
(Loss) Recognized |
Location of |
(Loss) Reclassified |
||||||||||||||||||||||||||
in Other |
Derivative Gain or |
from Accumulated |
Derivative Gain or |
|||||||||||||||||||||||||
Comprehensive |
(Loss) Reclassified |
Other Comprehensive |
Location of |
(Loss) Recognized |
||||||||||||||||||||||||
Income (Loss) on |
from Accumulated |
Income (Loss) on |
Derivative Gain or |
in the Consolidated |
||||||||||||||||||||||||
the Consolidated |
Other Comprehensive |
the Consolidated |
(Loss) Recognized |
Statement of Income |
||||||||||||||||||||||||
Statement of |
Income (Loss) on |
Balance Sheet into |
in the Consolidated |
(Ineffective |
||||||||||||||||||||||||
Comprehensive |
the Consolidated |
the Consolidated |
Statement of Income |
Portion and Amount |
||||||||||||||||||||||||
Income (Loss) |
Balance Sheet into |
Statement of Income |
(Ineffective |
Excluded from |
||||||||||||||||||||||||
Derivatives in Cash |
(Effective Portion) |
the Consolidated |
(Effective Portion) |
Portion and Amount |
Effectiveness Testing) |
|||||||||||||||||||||||
Flow Hedging |
for the Year Ended |
Statement of Income |
for the Year Ended |
Excluded from |
for the Year Ended |
|||||||||||||||||||||||
Relationships | September 30, | (Effective Portion) | September 30, | Effectiveness Testing) | September 30, | |||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||||
Commodity Contracts — Exploration & Production segment |
$ | 52,786 | $ | 110,883 | Operating Revenue | $ | 39,898 | $ | 91,808 | Operating Revenue | $ | — | $ | — | ||||||||||||||
Commodity Contracts — Energy Marketing segment |
$ | 11,200 | $ | 7,492 | Purchased Gas | $ | 52 | $ | 21,301 | Operating Revenue | $ | — | $ | — | ||||||||||||||
Commodity Contracts — Pipeline & Storage Segment(1) |
$ | 1,380 | $ | 652 | Operating Revenue | $ | 1,370 | $ | 1,952 | Operating Revenue | $ | — | $ | — | ||||||||||||||
Commodity Contracts — All Other(1) |
$ | — | $ | 183 | Purchased Gas | $ | — | $ | (681 | ) | Purchased Gas | $ | — | $ | — | |||||||||||||
Total |
$ | 65,366 | $ | 119,210 | $ | 41,320 | $ | 114,380 | $ | — | $ | — | ||||||||||||||||
(1) | There were no open hedging positions at September 30, 2010 or 2009. As such there is no mention of these positions in the preceding sections of this footnote. |
Consolidated Statement of Income | Gain/(Loss) on Derivative | Gain/(Loss) on Commitment | ||||||
Operating Revenues |
$ | (9,807,701 | ) | $ | 9,807,701 | |||
Purchased Gas |
$ | 62,352 | $ | (62,352 | ) |
Amount of |
||||||||
Derivative Gain or |
||||||||
Location of |
(Loss) Recognized |
|||||||
Derivative Gain or |
in the Consolidated |
|||||||
(Loss) Recognized |
Statement of Income |
|||||||
in the Consolidated |
for the Year Ended |
|||||||
Derivatives in Fair Value Hedging Relationships | Statement of Income | September 30, 2010 | ||||||
(In thousands) | ||||||||
Commodity Contracts — Energy Marketing segment(1) |
Operating Revenues | $ | (9,808 | ) | ||||
Commodity Contracts — Energy Marketing segment(2) |
Purchased Gas | $ | (144 | ) | ||||
Commodity Contracts — Energy Marketing segment(3) |
Purchased Gas | $ | 207 | |||||
$ | (9,745 | ) | ||||||
(1) | Represents hedging of fixed price sales commitments of natural gas. | |
(2) | Represents hedging of fixed price purchase commitments of natural gas. | |
(3) | Represents hedging of natural gas held in storage. |
|
Retirement Plan | Other Post-Retirement Benefits | |||||||||||||||||||||||
Year Ended September 30 | Year Ended September 30 | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2010 | 2009 | 2008 | |||||||||||||||||||
(Thousands) | ||||||||||||||||||||||||
Change in Benefit Obligation |
||||||||||||||||||||||||
Benefit Obligation at Beginning of Period |
$ | 831,496 | $ | 719,059 | $ | 742,519 | $ | 467,295 | $ | 411,545 | $ | 444,545 | ||||||||||||
Service Cost |
12,997 | 10,913 | 12,597 | 4,298 | 3,801 | 5,104 | ||||||||||||||||||
Interest Cost |
44,308 | 46,836 | 44,949 | 25,017 | 27,499 | 27,081 | ||||||||||||||||||
Plan Participants' Contributions |
— | — | — | 1,644 | 2,185 | 1,990 | ||||||||||||||||||
Retiree Drug Subsidy Receipts |
— | — | — | 1,354 | 1,427 | 1,532 | ||||||||||||||||||
Amendments(1) |
— | — | — | — | (10,765 | ) | (31,874 | ) | ||||||||||||||||
Actuarial (Gain) Loss |
85,831 | 102,430 | (34,189 | ) | (3,635 | ) | 55,776 | (14,390 | ) | |||||||||||||||
Adjustment for Change in Measurement Date |
— | 14,438 | — | — | 7,825 | — | ||||||||||||||||||
Benefits Paid |
(50,139 | ) | (62,180 | ) | (46,817 | ) | (23,566 | ) | (31,998 | ) | (22,443 | ) | ||||||||||||
Benefit Obligation at End of Period |
$ | 924,493 | $ | 831,496 | $ | 719,059 | $ | 472,407 | $ | 467,295 | $ | 411,545 | ||||||||||||
Change in Plan Assets |
||||||||||||||||||||||||
Fair Value of Assets at Beginning of Period |
$ | 563,881 | $ | 695,089 | $ | 765,144 | $ | 319,022 | $ | 377,640 | $ | 412,371 | ||||||||||||
Actual Return on Plan Assets |
61,625 | (99,511 | ) | (39,206 | ) | 30,478 | (62,368 | ) | (43,478 | ) | ||||||||||||||
Employer Contributions |
22,182 | 15,993 | 3,817 | 25,691 | 25,659 | 29,200 | ||||||||||||||||||
Employer Contributions During Period from Measurement Date to Fiscal Year End |
N/A | N/A | 12,151 | N/A | N/A | — | ||||||||||||||||||
Plan Participants' Contributions |
— | — | — | 1,644 | 2,185 | 1,990 | ||||||||||||||||||
Adjustment for Change in Measurement Date |
— | 14,490 | — | — | 7,904 | — | ||||||||||||||||||
Benefits Paid |
(50,139 | ) | (62,180 | ) | (46,817 | ) | (23,566 | ) | (31,998 | ) | (22,443 | ) | ||||||||||||
Fair Value of Assets at End of Period |
$ | 597,549 | $ | 563,881 | $ | 695,089 | $ | 353,269 | $ | 319,022 | $ | 377,640 | ||||||||||||
Net Amount Recognized at End of Period (Funded Status) |
$ | (326,944 | ) | $ | (267,615 | ) | $ | (23,970 | ) | $ | (119,138 | ) | $ | (148,273 | ) | $ | (33,905 | ) | ||||||
Amounts Recognized in the Balance Sheets Consist of: |
||||||||||||||||||||||||
Accrued Benefit Liability |
$ | (326,944 | ) | $ | (267,615 | ) | $ | (23,970 | ) | $ | (119,138 | ) | $ | (148,273 | ) | $ | (54,939 | ) | ||||||
Prepaid Benefit Cost |
— | — | — | — | — | 21,034 | ||||||||||||||||||
Net Amount Recognized at End of Period |
$ | (326,944 | ) | $ | (267,615 | ) | $ | (23,970 | ) | $ | (119,138 | ) | $ | (148,273 | ) | $ | (33,905 | ) | ||||||
Accumulated Benefit Obligation |
$ | 843,526 | $ | 758,658 | $ | 659,004 | N/A | N/A | N/A | |||||||||||||||
|
Retirement Plan | Other Post-Retirement Benefits | ||||||||||||||||||||||
Year Ended September 30 | Year Ended September 30 | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2010 | 2009 | 2008 | |||||||||||||||||||
(Thousands) | ||||||||||||||||||||||||
Weighted Average Assumptions Used to Determine Benefit Obligation at September 30 |
||||||||||||||||||||||||
Discount Rate |
4.75 | % | 5.50 | % | 6.75 | % | 4.75 | % | 5.50 | % | 6.75 | % | ||||||||||||
Rate of Compensation Increase |
4.75 | % | 5.00 | % | 5.00 | % | 4.75 | % | 5.00 | % | 5.00 | % | ||||||||||||
Components of Net Periodic Benefit Cost |
||||||||||||||||||||||||
Service Cost |
$ | 12,997 | $ | 10,913 | $ | 12,597 | $ | 4,298 | $ | 3,801 | $ | 5,104 | ||||||||||||
Interest Cost |
44,308 | 46,836 | 44,949 | 25,017 | 27,499 | 27,081 | ||||||||||||||||||
Expected Return on Plan Assets |
(58,342 | ) | (57,958 | ) | (55,000 | ) | (26,334 | ) | (31,615 | ) | (33,715 | ) | ||||||||||||
Amortization of Prior Service Cost |
655 | 732 | 808 | (1,710 | ) | (1,074 | ) | 4 | ||||||||||||||||
Amortization of Transition Amount |
— | — | — | 541 | 2,265 | 7,127 | ||||||||||||||||||
Recognition of Actuarial Loss(2) |
21,641 | 5,676 | 11,064 | 25,881 | 9,271 | 2,927 | ||||||||||||||||||
Net Amortization and Deferral for Regulatory Purposes |
(30 | ) | 12,817 | 6,008 | 351 | 18,037 | 22,264 | |||||||||||||||||
Net Periodic Benefit Cost |
$ | 21,229 | $ | 19,016 | $ | 20,426 | $ | 28,044 | $ | 28,184 | $ | 30,792 | ||||||||||||
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost at September 30 |
||||||||||||||||||||||||
Discount Rate |
5.50 | % | 6.75 | % | 6.25 | % | 5.50 | % | 6.75 | % | 6.25 | % | ||||||||||||
Expected Return on Plan Assets |
8.25 | % | 8.25 | % | 8.25 | % | 8.25 | % | 8.25 | % | 8.25 | % | ||||||||||||
Rate of Compensation Increase |
5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % |
(1) | In fiscal 2008 and 2009, the Company passed amendments, for most of the subsidiaries, which increased the participant contributions for active employees at the time of the amendment. This decreased the benefit obligation. | |
(2) | Distribution Corporation's New York jurisdiction calculates the amortization of the actuarial loss on a vintage year basis over 10 years, as mandated by the NYPSC. All the other subsidiaries of the Company utilize the corridor approach. |
Other |
||||||||||||
Retirement |
Post-Retirement |
Non-Qualified |
||||||||||
Plan | Benefits | Benefit Plans | ||||||||||
(Thousands) | ||||||||||||
Amounts Recognized in Accumulated Other Comprehensive Income (Loss), Regulatory Assets and Regulatory Liabilities(1) |
||||||||||||
Net Actuarial Loss |
$ | (385,522 | ) | $ | (157,700 | ) | $ | (33,949 | ) | |||
Transition Obligation |
— | (1,487 | ) | — | ||||||||
Prior Service (Cost) Credit |
(3,925 | ) | 8,807 | — | ||||||||
Net Amount Recognized |
$ | (389,447 | ) | $ | (150,380 | ) | $ | (33,949 | ) | |||
Changes to Accumulated Other Comprehensive Income (Loss), Regulatory Assets and Regulatory Liabilities Recognized During Fiscal 2010(1) |
||||||||||||
Increase in Net Actuarial Gain/(Loss) |
$ | (60,907 | ) | $ | 33,660 | $ | (9,258 | ) | ||||
Reduction in Transition Obligation |
— | 540 | — | |||||||||
Prior Service (Cost) Credit |
656 | (1,710 | ) | — | ||||||||
Net Change |
$ | (60,251 | ) | $ | 32,490 | $ | (9,258 | ) | ||||
Amounts Expected to be Recognized in Net Periodic Benefit Cost in the Next Fiscal Year(1) |
||||||||||||
Net Actuarial Loss |
$ | (34,873 | ) | $ | (23,793 | ) | $ | (3,860 | ) | |||
Transition Obligation |
— | (541 | ) | — | ||||||||
Prior Service (Cost) Credit |
(589 | ) | 1,710 | — | ||||||||
Net Amount Expected to be Recognized |
$ | (35,462 | ) | $ | (22,624 | ) | $ | (3,860 | ) | |||
(1) | Amounts presented are shown before recognizing deferred taxes. |
Benefit Payments | Subsidy Receipts | |||||||
2011 |
$ | 25,375,000 | $ | (2,001,000 | ) | |||
2012 |
$ | 26,795,000 | $ | (2,275,000 | ) | |||
2013 |
$ | 28,116,000 | $ | (2,575,000 | ) | |||
2014 |
$ | 29,520,000 | $ | (2,871,000 | ) | |||
2015 |
$ | 31,002,000 | $ | (3,169,000 | ) | |||
2016 through 2020 |
$ | 175,195,000 | $ | (20,370,000 | ) |
2010 | 2009 | 2008 | ||||||||||
Rate of Increase for Pre Age 65 Participants |
7.82 | %(1) | 8.0 | %(1) | 9.0 | %(2) | ||||||
Rate of Increase for Post Age 65 Participants |
6.95 | %(1) | 7.0 | %(1) | 7.0 | %(2) | ||||||
Annual Rate of Increase in the Per Capita Cost of Covered Prescription Drug Benefits |
8.69 | %(1) | 9.0 | %(1) | 10.0 | %(2) | ||||||
Annual Rate of Increase in the Per Capita Medicare Part B Reimbursement |
6.95 | %(1) | 7.0 | %(1) | 7.0 | %(2) | ||||||
Annual Rate of Increase in the Per Capita Medicare Part D Subsidy |
7.60 | %(1) | 7.9 | %(1) | 10.0 | %(2) |
(1) | It was assumed that this rate would gradually decline to 4.5% by 2028. | |
(2) | It was assumed that this rate would gradually decline to 5.0% by 2018. |
Total Fair Value |
||||||||||||||||
Amounts at |
||||||||||||||||
September 30, 2010 | Level 1 | Level 2 | Level 3 | |||||||||||||
Retirement Plan Investments |
||||||||||||||||
Equities |
||||||||||||||||
Collective Trust Funds — Domestic |
$ | 131,313 | $ | — | $ | 131,313 | $ | — | ||||||||
Collective Trust Funds — International |
72,612 | — | 72,612 | — | ||||||||||||
Common Stock — Domestic |
158,215 | 158,215 | — | — | ||||||||||||
Common Stock — International |
19,351 | 19,351 | — | — | ||||||||||||
Convertible Securities — Domestic |
32,911 | 4,403 | 28,189 | 319 | ||||||||||||
Convertible Securities — International |
2,175 | 548 | 1,627 | — | ||||||||||||
Preferred Stock |
765 | 765 | — | — | ||||||||||||
Total Equities |
417,342 | 183,282 | 233,741 | 319 | ||||||||||||
Fixed Income |
||||||||||||||||
Collective Trust Funds — Domestic |
75,455 | — | 75,455 | — | ||||||||||||
Collective Trust Funds — International |
69,511 | — | 69,511 | — | ||||||||||||
Corporate Bonds — Domestic |
572 | — | 572 | — | ||||||||||||
Exchange Traded Funds |
17,911 | 17,911 | — | — | ||||||||||||
Other |
83 | — | 83 | — | ||||||||||||
Total Fixed Income |
163,532 | 17,911 | 145,621 | — | ||||||||||||
Real Estate |
5,812 | — | — | 5,812 | ||||||||||||
Limited Partnerships |
232 | — | — | 232 | ||||||||||||
Cash & Cash Equivalents |
||||||||||||||||
Cash Held in Collective Trust Funds |
10,413 | — | 10,413 | — | ||||||||||||
Cash Held in Savings/Checking Accounts, Commercial Paper, etc. |
123 | — | 123 | — | ||||||||||||
Total Cash & Cash Equivalents |
10,536 | — | 10,536 | — | ||||||||||||
Total Retirement Plan Investments |
$ | 597,454 | $ | 201,193 | $ | 389,898 | $ | 6,363 | ||||||||
Accrued Income Receivable |
699 | |||||||||||||||
Accrued Administrative Costs |
(604 | ) | ||||||||||||||
Total Retirement Plan Assets |
$ | 597,549 | ||||||||||||||
Total Fair Value |
||||||||||||||||
Amounts at |
||||||||||||||||
September 30, 2010 | Level 1 | Level 2 | Level 3 | |||||||||||||
VEBA Investments |
||||||||||||||||
Equities |
||||||||||||||||
Collective Trust Funds — Domestic |
$ | 217,637 | $ | — | $ | 217,637 | $ | — | ||||||||
Collective Trust Funds — International |
85,799 | — | 85,799 | — | ||||||||||||
Total Equities |
303,436 | — | 303,436 | — | ||||||||||||
Real Estate |
3,824 | — | — | 3,824 | ||||||||||||
Cash Held in Collective Trust Funds |
7,622 | — | 7,622 | — | ||||||||||||
Total VEBA Investments |
$ | 314,882 | $ | — | $ | 311,058 | $ | 3,824 | ||||||||
Accrued Income Receivable |
600 | |||||||||||||||
Accrued Administrative Costs |
(196 | ) | ||||||||||||||
Claims Incurred But Not Reported |
(1,736 | ) | ||||||||||||||
Prepaid Federal Taxes |
2,866 | |||||||||||||||
Deferred Tax Asset |
2,230 | |||||||||||||||
Total Fair Value of VEBA Assets |
$ | 318,646 | ||||||||||||||
401(h) Investments |
||||||||||||||||
Equities |
||||||||||||||||
Collective Trust Funds — Domestic |
$ | 7,601 | $ | — | $ | 7,601 | $ | — | ||||||||
Collective Trust Funds — International |
4,203 | — | 4,203 | — | ||||||||||||
Common Stock — Domestic |
9,158 | 9,158 | — | — | ||||||||||||
Common Stock — International |
1,120 | 1,120 | — | — | ||||||||||||
Convertible Securities — Domestic |
1,905 | 255 | 1,632 | 18 | ||||||||||||
Convertible Securities — International |
126 | 32 | 94 | — | ||||||||||||
Preferred Stock |
45 | 45 | — | — | ||||||||||||
Total Equities |
24,158 | 10,610 | 13,530 | 18 | ||||||||||||
Fixed Income |
||||||||||||||||
Collective Trust Funds — Domestic |
4,368 | — | 4,368 | — | ||||||||||||
Collective Trust Funds — International |
4,024 | — | 4,024 | — | ||||||||||||
Corporate Bonds — Domestic |
33 | — | 33 | — | ||||||||||||
Exchange Traded Funds |
1,037 | 1,037 | — | — | ||||||||||||
Other |
4 | — | 4 | — | ||||||||||||
Total Fixed Income |
9,466 | 1,037 | 8,429 | — | ||||||||||||
Real Estate |
336 | — | — | 336 | ||||||||||||
Limited Partnerships |
13 | — | — | 13 | ||||||||||||
Cash Held in Collective Trust Funds |
610 | — | 610 | — | ||||||||||||
Total 401(h) Investments |
$ | 34,583 | $ | 11,647 | $ | 22,569 | $ | 367 | ||||||||
Accrued Income Receivable |
40 | |||||||||||||||
Total Fair Value of Assets |
$ | 34,623 | ||||||||||||||
Total Other Post-Retirement Benefit Assets |
$ | 353,269 | ||||||||||||||
Retirement Plan Level 3 Assets |
||||||||||||||||||||||||
Year Ended September 30, 2010 |
||||||||||||||||||||||||
(Thousands of Dollars) | ||||||||||||||||||||||||
Equities | Fixed Income | |||||||||||||||||||||||
Collateralized |
||||||||||||||||||||||||
Convertible |
Mortgage |
|||||||||||||||||||||||
Securities |
Preferred |
Obligations |
Limited |
Real |
||||||||||||||||||||
(Domestic) | Stock | (Part of Other) | Partnerships | Estate | Total | |||||||||||||||||||
Balance, Beginning of Year |
$ | 733 | $ | 362 | $ | 542 | $ | 372 | $ | 7,518 | $ | 9,527 | ||||||||||||
Realized Gains/(Losses) |
50 | (108 | ) | 1 | (1,495 | ) | — | (1,552 | ) | |||||||||||||||
Unrealized Gains/(Losses) |
(4 | ) | (3 | ) | (24 | ) | 1,510 | (2,350 | ) | (871 | ) | |||||||||||||
Purchases, Sales, Issuances, and Settlements (Net) |
(460 | ) | (251 | ) | (519 | ) | (155 | ) | 644 | (741 | ) | |||||||||||||
Balance at September 30, 2010 (End of Year) |
$ | 319 | $ | — | $ | — | $ | 232 | $ | 5,812 | $ | 6,363 | ||||||||||||
Other Post-Retirement Benefit Level 3 Assets |
||||||||||||||||||||||||||||
Year Ended September 30, 2010 |
||||||||||||||||||||||||||||
(Thousands of Dollars) | ||||||||||||||||||||||||||||
VEBA |
401(h) Investments | |||||||||||||||||||||||||||
Investments | Equities | Fixed Income | ||||||||||||||||||||||||||
Collateralized |
||||||||||||||||||||||||||||
Convertible |
Mortgage |
Total |
||||||||||||||||||||||||||
Real |
Securities |
Preferred |
Obligations |
Limited |
Real |
401(h) |
||||||||||||||||||||||
Estate | (Domestic) | Stock | (Part of Other) | Partnerships | Estate | Investments | ||||||||||||||||||||||
Balance, Beginning of Year |
$ | 3,816 | $ | 37 | $ | 18 | $ | 27 | $ | 19 | $ | 376 | $ | 477 | ||||||||||||||
Realized Gains/(Losses) |
— | 3 | (6 | ) | — | (87 | ) | — | (90 | ) | ||||||||||||||||||
Unrealized Gains/(Losses) |
8 | 5 | 3 | 3 | 90 | (77 | ) | 24 | ||||||||||||||||||||
Purchases, Sales, Issuances, and Settlements (Net) |
— | (27 | ) | (15 | ) | (30 | ) | (9 | ) | 37 | (44 | ) | ||||||||||||||||
Balance at September 30, 2010 (End of Year) |
$ | 3,824 | $ | 18 | $ | — | $ | — | $ | 13 | $ | 336 | $ | 367 | ||||||||||||||
Percentage of Plan |
||||||||||||||||
Target Allocation |
Assets at September 30 | |||||||||||||||
Asset Category | 2011 | 2010 | 2009 | 2008 | ||||||||||||
Equity Securities |
60-75 | % | 70 | % | 73 | % | 74 | % | ||||||||
Fixed Income Securities |
20-35 | % | 27 | % | 21 | % | 23 | % | ||||||||
Other |
0-15 | % | 3 | % | 6 | % | 3 | % | ||||||||
Total |
100 | % | 100 | % | 100 | % | ||||||||||
Percentage of Plan |
||||||||||||||||
Target Allocation |
Assets at September 30 | |||||||||||||||
Asset Category | 2011 | 2010 | 2009 | 2008 | ||||||||||||
Equity Securities |
85-100 | % | 93 | % | 93 | % | 93 | % | ||||||||
Fixed Income Securities |
0-15 | % | 3 | % | 2 | % | 2 | % | ||||||||
Other |
0-15 | % | 4 | % | 5 | % | 5 | % | ||||||||
Total |
100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
(i) | Former Manufactured Gas Plant Sites |
(ii) | Other |
|
Year Ended September 30 | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Thousands) | ||||||||||||
Operating Revenues |
$ | 9,919 | $ | 6,309 | $ | 3,524 | ||||||
Operating Expenses |
8,933 | 10,705 | 883 | |||||||||
Operating Income (Loss) |
986 | (4,396 | ) | 2,641 | ||||||||
Other Income |
4 | 8 | 29 | |||||||||
Interest Income |
2 | — | — | |||||||||
Interest Expense |
29 | 127 | 599 | |||||||||
Income (Loss) before Income Taxes |
963 | (4,515 | ) | 2,071 | ||||||||
Income Tax Expense (Benefit) |
493 | (1,739 | ) | 250 | ||||||||
Income (Loss) from Discontinued Operations |
470 | (2,776 | ) | 1,821 | ||||||||
Gain on Disposal, Net of Taxes of $4,024 |
6,310 | — | — | |||||||||
Income (Loss) from Discontinued Operations |
$ | 6,780 | $ | (2,776 | ) | $ | 1,821 | |||||
|
Year Ended September 30, 2010 | ||||||||||||||||||||||||||||||||
Corporate |
||||||||||||||||||||||||||||||||
Pipeline |
Exploration |
Total |
and |
|||||||||||||||||||||||||||||
and |
and |
Energy |
Reportable |
All |
Intersegment |
Total | ||||||||||||||||||||||||||
Utility | Storage | Production | Marketing | Segments | Other | Eliminations | Consolidated | |||||||||||||||||||||||||
(Thousands) | ||||||||||||||||||||||||||||||||
Revenue from External Customers |
$ | 804,466 | $ | 138,905 | $ | 438,028 | $ | 344,802 | $ | 1,726,201 | $ | 33,428 | $ | 874 | $ | 1,760,503 | ||||||||||||||||
Intersegment Revenues |
$ | 15,324 | $ | 79,978 | $ | — | $ | — | $ | 95,302 | $ | 2,315 | $ | (97,617 | ) | $ | — | |||||||||||||||
Interest Income |
$ | 2,144 | $ | 199 | $ | 980 | $ | 44 | $ | 3,367 | $ | 137 | $ | 225 | $ | 3,729 | ||||||||||||||||
Interest Expense |
$ | 35,831 | $ | 26,328 | $ | 30,853 | $ | 27 | $ | 93,039 | $ | 2,152 | $ | (1,245 | ) | $ | 93,946 | |||||||||||||||
Depreciation, Depletion and Amortization |
$ | 40,370 | $ | 35,930 | $ | 106,182 | $ | 42 | $ | 182,524 | $ | 7,907 | $ | 768 | $ | 191,199 | ||||||||||||||||
Income Tax Expense (Benefit) |
$ | 31,858 | $ | 22,634 | $ | 78,875 | $ | 4,806 | $ | 138,173 | $ | 464 | $ | (1,410 | ) | $ | 137,227 | |||||||||||||||
Income from Unconsolidated Subsidiaries |
$ | — | $ | — | $ | — | $ | — | $ | — | $ | 2,488 | $ | — | $ | 2,488 | ||||||||||||||||
Segment Profit: Income (Loss) from Continuing Operations |
$ | 62,473 | $ | 36,703 | $ | 112,531 | $ | 8,816 | $ | 220,523 | $ | 3,396 | $ | (4,786 | ) | $ | 219,133 | |||||||||||||||
Expenditures for Additions to Long-Lived Assets from Continuing Operations |
$ | 57,973 | $ | 37,894 | $ | 398,174 | $ | 407 | $ | 494,448 | $ | 6,694 | $ | 210 | $ | 501,352 | ||||||||||||||||
At September 30, 2010 | ||||||||||||||||||||||||||||||||
(Thousands) | ||||||||||||||||||||||||||||||||
Segment Assets |
$ | 2,071,530 | $ | 1,094,914 | $ | 1,539,705 | $ | 69,561 | $ | 4,775,710 | $ | 198,706 | $ | 131,209 | $ | 5,105,625 |
Year Ended September 30, 2009 | ||||||||||||||||||||||||||||||||
Corporate |
||||||||||||||||||||||||||||||||
Pipeline |
Exploration |
Total |
and |
|||||||||||||||||||||||||||||
and |
and |
Energy |
Reportable |
All |
Intersegment |
Total | ||||||||||||||||||||||||||
Utility | Storage | Production | Marketing | Segments | Other | Eliminations | Consolidated | |||||||||||||||||||||||||
(Thousands) | ||||||||||||||||||||||||||||||||
Revenue from External Customers |
$ | 1,097,550 | $ | 137,478 | $ | 382,758 | $ | 397,763 | $ | 2,015,549 | $ | 35,100 | $ | 894 | $ | 2,051,543 | ||||||||||||||||
Intersegment Revenues |
$ | 15,474 | $ | 81,795 | $ | — | $ | 558 | $ | 97,827 | $ | — | $ | (97,827 | ) | $ | — | |||||||||||||||
Interest Income |
$ | 2,486 | $ | 995 | $ | 2,430 | $ | 79 | $ | 5,990 | $ | 583 | $ | (797 | ) | $ | 5,776 | |||||||||||||||
Interest Expense |
$ | 32,417 | $ | 21,580 | $ | 33,368 | $ | 215 | $ | 87,580 | $ | 2,344 | $ | (3,135 | ) | $ | 86,789 | |||||||||||||||
Depreciation, Depletion and Amortization |
$ | 39,675 | $ | 35,115 | $ | 90,816 | $ | 42 | $ | 165,648 | $ | 4,276 | $ | 696 | $ | 170,620 | ||||||||||||||||
Income Tax Expense (Benefit) |
$ | 37,097 | $ | 30,579 | $ | (14,616 | ) | $ | 4,470 | $ | 57,530 | $ | (3,482 | ) | $ | (1,189 | ) | $ | 52,859 | |||||||||||||
Income from Unconsolidated Subsidiaries |
$ | — | $ | — | $ | — | $ | — | $ | — | $ | 3,366 | $ | — | $ | 3,366 | ||||||||||||||||
Significant Non-Cash Item: Impairment of Oil and Gas Producing Properties |
$ | — | $ | — | $ | 182,811 | $ | — | $ | 182,811 | $ | — | $ | — | $ | 182,811 | ||||||||||||||||
Significant Non-Cash Item: Impairment of Investment in Partnership |
$ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,804 | (1) | $ | — | $ | 1,804 | |||||||||||||||
Segment Profit: Income (Loss) from Continuing Operations |
$ | 58,664 | $ | 47,358 | $ | (10,238 | ) | $ | 7,166 | $ | 102,950 | $ | 705 | $ | (171 | ) | $ | 103,484 | ||||||||||||||
Expenditures for Additions to Long-Lived Assets from Continuing Operations |
$ | 56,178 | $ | 52,504 | $ | 223,223 | (2) | $ | 25 | $ | 331,930 | $ | 9,507 | $ | (47 | ) | $ | 341,390 | ||||||||||||||
At September 30, 2009 | ||||||||||||||||||||||||||||||||
(Thousands) | ||||||||||||||||||||||||||||||||
Segment Assets |
$ | 2,132,610 | $ | 1,046,372 | $ | 1,265,678 | $ | 52,469 | $ | 4,497,129 | $ | 210,809 | (3) | $ | 61,191 | $ | 4,769,129 |
(1) | Amount represents the impairment in the value of the Company's 50% investment in ESNE, a partnership that owns an 80-megawatt, combined cycle, natural gas-fired power plant in the town of North East, Pennsylvania. | |
(2) | Amount includes the acquisition of Ivanhoe Energy's United States oil and gas operation for $34.9 million, net of cash acquired, and is discussed in Note M — Acquisition. | |
(3) | Amount includes $28,761 of assets of the Company's landfill gas operations, which have been classified as discontinued operations as of September 30, 2010. (See Note J — Discontinued Operations). |
Year Ended September 30, 2008 | ||||||||||||||||||||||||||||||||
Corporate |
||||||||||||||||||||||||||||||||
Pipeline |
Exploration |
Total |
and |
|||||||||||||||||||||||||||||
and |
and |
Energy |
Reportable |
All |
Intersegment |
Total | ||||||||||||||||||||||||||
Utility | Storage | Production | Marketing | Segments | Other | Eliminations | Consolidated | |||||||||||||||||||||||||
(Thousands) | ||||||||||||||||||||||||||||||||
Revenue from External Customers |
$ | 1,194,657 | $ | 135,052 | $ | 466,760 | $ | 549,932 | $ | 2,346,401 | $ | 49,741 | $ | 695 | $ | 2,396,837 | ||||||||||||||||
Intersegment Revenues |
$ | 15,612 | $ | 81,504 | $ | — | $ | 1,300 | $ | 98,416 | $ | 9 | $ | (98,425 | ) | $ | — | |||||||||||||||
Interest Income |
$ | 1,836 | $ | 843 | $ | 10,921 | $ | 323 | $ | 13,923 | $ | 1,232 | $ | (4,340 | ) | $ | 10,815 | |||||||||||||||
Interest Expense |
$ | 27,683 | $ | 13,783 | $ | 41,645 | $ | 175 | $ | 83,286 | $ | 3,183 | $ | (13,099 | ) | $ | 73,370 | |||||||||||||||
Depreciation, Depletion and Amortization |
$ | 39,113 | $ | 32,871 | $ | 92,221 | $ | 42 | $ | 164,247 | $ | 4,910 | $ | 689 | $ | 169,846 | ||||||||||||||||
Income Tax Expense (Benefit) |
$ | 36,303 | $ | 34,008 | $ | 92,686 | $ | 3,180 | $ | 166,177 | $ | 1,936 | $ | (441 | ) | $ | 167,672 | |||||||||||||||
Income from Unconsolidated Subsidiaries |
$ | — | $ | — | $ | — | $ | — | $ | — | $ | 6,303 | $ | — | $ | 6,303 | ||||||||||||||||
Segment Profit: Income (Loss) from Continuing Operations |
$ | 61,472 | $ | 54,148 | $ | 146,612 | $ | 5,889 | $ | 268,121 | $ | 3,958 | $ | (5,172 | ) | $ | 266,907 | |||||||||||||||
Expenditures for Additions to Long-Lived Assets from Continuing Operations |
$ | 57,457 | $ | 165,520 | $ | 192,187 | $ | 39 | $ | 415,203 | $ | 1,354 | $ | (2,186 | ) | $ | 414,371 | |||||||||||||||
At September 30, 2008 | ||||||||||||||||||||||||||||||||
(Thousands) | ||||||||||||||||||||||||||||||||
Segment Assets |
$ | 1,643,665 | $ | 948,984 | $ | 1,416,120 | $ | 89,527 | $ | 4,098,296 | $ | 217,874 | (1) | $ | (185,983 | ) | $ | 4,130,187 |
(1) | Amount includes $35,521 of assets of the Company's landfill gas operations, which have been classified as discontinued operations as of September 30, 2010. (See Note J — Discontinued Operations). |
For the Year Ended September 30 | ||||||||||||
Geographic Information | 2010 | 2009 | 2008 | |||||||||
(Thousands) | ||||||||||||
Revenues from External Customers(1): |
||||||||||||
United States |
$ | 1,760,503 | $ | 2,051,543 | $ | 2,396,837 | ||||||
At September 30 | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Thousands) | ||||||||||||
Long-Lived Assets: |
||||||||||||
United States |
$ | 4,330,248 | $ | 3,963,398 | $ | 3,595,188 | ||||||
Assets of Discontinued Operations |
— | 28,761 | 35,521 | |||||||||
$ | 4,330,248 | $ | 3,992,159 | $ | 3,630,709 | |||||||
(1) | Revenue is based upon the country in which the sale originates. This table excludes revenues from discontinued operations of $9,919, $6,309 and $3,524 for September 30, 2010, 2009 and 2008, respectively. |
|
At September 30 | ||||||||
2010 | 2009 | |||||||
(Thousands) | ||||||||
Seneca Energy |
$ | 11,007 | $ | 10,924 | ||||
Model City |
2,017 | 2,136 | ||||||
ESNE |
1,804 | 1,880 | ||||||
$ | 14,828 | $ | 14,940 | |||||
|
Assets Acquired |
$ | 43,282 | ||
Liabilities Assumed |
(4,082 | ) | ||
Cash Acquired at Acquisition |
(4,267 | ) | ||
Cash Paid, Net of Cash Acquired |
$ | 34,933 | ||
|
At September 30, |
||||||||||||||||
At September 30, 2010 | 2009 | |||||||||||||||
Gross Carrying |
Accumulated |
Net Carrying |
Net Carrying |
|||||||||||||
Amount | Amortization | Amount | Amount | |||||||||||||
Intangible Assets Subject to Amortization: |
||||||||||||||||
Long-Term Transportation Contracts |
$ | 4,701 | $ | (3,024 | ) | $ | 1,677 | $ | 2,071 | |||||||
Long-Term Gas Purchase Contracts |
— | — | — | 19,465 | ||||||||||||
$ | 4,701 | $ | (3,024 | ) | $ | 1,677 | $ | 21,536 | ||||||||
Aggregate Amortization Expense: |
||||||||||||||||
For the Year Ended September 30, 2010 |
$ | 394 | ||||||||||||||
For the Year Ended September 30, 2009 |
$ | 4,638 | (1) | |||||||||||||
For the Year Ended September 30, 2008 |
$ | 2,662 | (1) |
(1) | Amount includes amortization expense from discontinued operations of $4,186 and $1,593 for September 30, 2009 and 2008, respectively. At September 30, 2010, the 11 months of amortization expense for discontinued operations was $1,286. |
|
Net |
Earnings from |
|||||||||||||||||||||||||||||||||||
Income |
Income |
Income |
Continuing |
|||||||||||||||||||||||||||||||||
(Loss) from |
(Loss) from |
(Loss) |
Operations per |
Earnings per | ||||||||||||||||||||||||||||||||
Quarter |
Operating |
Operating |
Continuing |
Discontinued |
Available for |
Common Share | Common Share | |||||||||||||||||||||||||||||
Ended | Revenues | Income (Loss) | Operations | Operations | Common Stock | Basic | Diluted | Basic | Diluted | |||||||||||||||||||||||||||
(Thousands, except per common share amounts) | ||||||||||||||||||||||||||||||||||||
2010 |
||||||||||||||||||||||||||||||||||||
9/30/2010 |
$ | 286,396 | $ | 73,995 | $ | 32,393 | $ | 6,009 | (1) | $ | 38,402 | (1) | $ | 0.40 | $ | 0.39 | $ | 0.47 | $ | 0.46 | ||||||||||||||||
6/30/2010 |
$ | 351,992 | $ | 89,188 | $ | 42,641 | $ | (57 | ) | $ | 42,584 | $ | 0.52 | $ | 0.51 | $ | 0.52 | $ | 0.51 | |||||||||||||||||
3/31/2010 |
$ | 667,980 | $ | 151,631 | $ | 79,874 | $ | 554 | $ | 80,428 | $ | 0.98 | $ | 0.96 | $ | 0.99 | $ | 0.97 | ||||||||||||||||||
12/31/2009 |
$ | 454,135 | $ | 125,637 | $ | 64,225 | $ | 274 | $ | 64,499 | $ | 0.80 | $ | 0.78 | $ | 0.80 | $ | 0.78 | ||||||||||||||||||
2009 |
||||||||||||||||||||||||||||||||||||
9/30/2009 |
$ | 276,795 | $ | 68,943 | $ | 29,943 | $ | (2,945 | )(2) | $ | 26,998 | (2) | $ | 0.37 | $ | 0.37 | $ | 0.34 | $ | 0.33 | ||||||||||||||||
6/30/2009 |
$ | 365,579 | $ | 87,472 | $ | 43,061 | $ | (157 | ) | $ | 42,904 | $ | 0.54 | $ | 0.53 | $ | 0.54 | $ | 0.53 | |||||||||||||||||
3/31/2009 |
$ | 803,049 | $ | 137,818 | $ | 73,270 | $ | 214 | $ | 73,484 | $ | 0.92 | $ | 0.92 | $ | 0.92 | $ | 0.92 | ||||||||||||||||||
12/31/2008 |
$ | 606,120 | $ | (66,639 | ) | $ | (42,790 | )(3) | $ | 112 | $ | (42,678 | )(3) | $ | (0.54 | ) | $ | (0.53 | ) | $ | (0.54 | ) | $ | (0.53 | ) |
(1) | Includes a $6.3 million gain on the sale of the Company's landfill gas operations. | |
(2) | Includes a non-cash $4.6 million impairment charge ($2.8 million after tax) associated with landfill gas assets. | |
(3) | Includes a non-cash $182.8 million impairment charge ($108.2 million after tax) associated with the Exploration and Production segment's oil and gas producing properties; a non-cash $1.8 million impairment charge ($1.1 million after tax) associated with an equity investment in the All Other category and a $2.3 million gain realized on life insurance policies in the Corporate category. |
|
At September 30 | ||||||||
2010 | 2009 | |||||||
(Thousands) | ||||||||
Proved Properties(1) |
$ | 2,267,009 | $ | 1,953,720 | ||||
Unproved Properties |
151,232 | 70,061 | ||||||
2,418,241 | 2,023,781 | |||||||
Less — Accumulated Depreciation, Depletion and Amortization |
1,094,377 | 990,284 | ||||||
$ | 1,323,864 | $ | 1,033,497 | |||||
(1) | Includes asset retirement costs of $69.8 million and $65.9 million at September 30, 2010 and 2009, respectively. |
Total |
||||||||||||||||||||
as of |
||||||||||||||||||||
September 30, |
Year Costs Incurred | |||||||||||||||||||
2010 | 2010 | 2009 | 2008 | Prior | ||||||||||||||||
(Thousands) | ||||||||||||||||||||
Acquisition Costs |
$ | 131,039 | $ | 75,130 | $ | 40,978 | $ | 6,135 | $ | 8,796 | ||||||||||
Development Costs |
12,120 | 12,120 | — | — | — | |||||||||||||||
Exploration Costs |
7,017 | 7,017 | — | — | — | |||||||||||||||
Capitalized Interest |
1,056 | 1,056 | — | — | — | |||||||||||||||
$ | 151,232 | (1) | $ | 95,323 | $ | 40,978 | $ | 6,135 | $ | 8,796 | ||||||||||
(1) | Costs related to unproved properties excluded from amortization includes $137.2 million related to onshore properties and $14.0 million related to offshore properties at September 30, 2010. |
Year Ended September 30 | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Thousands) | ||||||||||||
United States |
||||||||||||
Property Acquisition Costs: |
||||||||||||
Proved |
$ | 790 | $ | 35,803 | $ | 16,474 | ||||||
Unproved |
80,221 | 44,528 | 8,449 | |||||||||
Exploration Costs |
75,155 | (1) | 11,724 | 56,274 | ||||||||
Development Costs |
234,094 | (2) | 125,109 | 106,975 | ||||||||
Asset Retirement Costs |
3,901 | 2,877 | 20,048 | |||||||||
$ | 394,161 | $ | 220,041 | $ | 208,220 | |||||||
(1) | Amount for 2010 includes $0.2 million of capitalized interest. | |
(2) | Amount for 2010 includes $0.9 million of capitalized interest. |
Year Ended September 30 | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Thousands, except per Mcfe amounts) | ||||||||||||
United States |
||||||||||||
Operating Revenues: |
||||||||||||
Natural Gas (includes revenues from sales to affiliates of $253, $239 and $443, respectively) |
$ | 152,163 | $ | 106,815 | $ | 216,623 | ||||||
Oil, Condensate and Other Liquids |
233,569 | 174,356 | 305,887 | |||||||||
Total Operating Revenues(1) |
385,732 | 281,171 | 522,510 | |||||||||
Production/Lifting Costs |
61,398 | 53,957 | 55,335 | |||||||||
Franchise/Ad Valorem Taxes |
10,592 | 8,657 | 11,350 | |||||||||
Accretion Expense |
5,444 | 5,437 | 4,056 | |||||||||
Depreciation, Depletion and Amortization ($2.10, $2.10 and $2.23 per Mcfe of production) |
104,092 | 89,307 | 91,093 | |||||||||
Impairment of Oil and Gas Producing Properties(2) |
— | 182,811 | — | |||||||||
Income Tax Expense (Benefit) |
83,946 | (27,055 | ) | 144,922 | ||||||||
Results of Operations for Producing Activities (excluding corporate overheads and interest charges) |
$ | 120,260 | $ | (31,943 | ) | $ | 215,754 | |||||
(1) | Exclusive of hedging gains and losses. See further discussion in Note G — Financial Instruments. | |
(2) | See discussion of impairment in Note A — Summary of Significant Accounting Policies. |
Gas MMcf | ||||||||||||||||
U. S. | ||||||||||||||||
Gulf |
West |
|||||||||||||||
Coast |
Coast |
Appalachian |
Total |
|||||||||||||
Region | Region | Region | Company | |||||||||||||
Proved Developed and Undeveloped Reserves: |
||||||||||||||||
September 30, 2007 |
25,136 | 73,175 | 107,078 | 205,389 | ||||||||||||
Extensions and Discoveries |
8,759 | — | 31,322 | 40,081 | ||||||||||||
Revisions of Previous Estimates |
2,156 | 566 | (3,460 | ) | (738 | ) | ||||||||||
Production |
(11,033 | ) | (4,039 | ) | (7,269 | ) | (22,341 | ) | ||||||||
Purchases of Minerals in Place |
— | 4,539 | 727 | 5,266 | ||||||||||||
Sales of Minerals in Place |
(377 | ) | (1,381 | ) | — | (1,758 | ) | |||||||||
September 30, 2008 |
24,641 | 72,860 | 128,398 | 225,899 | ||||||||||||
Extensions and Discoveries |
6,698 | 3,282 | 49,249 | 59,229 | ||||||||||||
Revisions of Previous Estimates |
9,407 | 488 | (19,484 | ) | (9,589 | )(1) | ||||||||||
Production |
(9,886 | ) | (4,063 | ) | (8,335 | ) | (22,284 | ) | ||||||||
Purchases of Minerals in Place |
— | 392 | — | 392 | ||||||||||||
Sales of Minerals in Place |
(4,693 | ) | — | — | (4,693 | ) | ||||||||||
September 30, 2009 |
26,167 | 72,959 | 149,828 | 248,954 | ||||||||||||
Extensions and Discoveries |
2,881 | 269 | 189,979 | (2) | 193,129 | |||||||||||
Revisions of Previous Estimates |
6,683 | 2,315 | 7,677 | 16,675 | ||||||||||||
Production |
(10,304 | ) | (3,819 | ) | (16,222 | )(3) | (30,345 | ) | ||||||||
September 30, 2010 |
25,427 | 71,724 | 331,262 | 428,413 | ||||||||||||
Gas MMcf | ||||||||||||||||
U. S. | ||||||||||||||||
Gulf |
West |
|||||||||||||||
Coast |
Coast |
Appalachian |
Total |
|||||||||||||
Region | Region | Region | Company | |||||||||||||
Proved Developed Reserves: |
||||||||||||||||
September 30, 2007 |
25,136 | 66,017 | 96,674 | 187,827 | ||||||||||||
September 30, 2008 |
18,242 | 68,453 | 115,824 | 202,519 | ||||||||||||
September 30, 2009 |
18,051 | 67,603 | 120,579 | 206,233 | ||||||||||||
September 30, 2010 |
19,293 | 66,178 | 210,817 | 296,288 | ||||||||||||
Proved Undeveloped Reserves: |
||||||||||||||||
September 30, 2007 |
— | 7,158 | 10,404 | 17,562 | ||||||||||||
September 30, 2008 |
6,399 | 4,407 | 12,574 | 23,380 | ||||||||||||
September 30, 2009 |
8,116 | 5,356 | 29,249 | 42,721 | ||||||||||||
September 30, 2010 |
6,134 | 5,546 | 120,445 | 132,125 |
(1) | During 2009, the Company made a downward revision of its proved developed and undeveloped reserves amounting to 9,589 MMcf. This was primarily attributable to a 19,484 MMcf reduction in the Appalachian region offset by a 9,407 MMcf increase in the Gulf Coast region. The reduction in the Appalachian region was mainly due to declining natural gas prices, which made certain reserves uneconomical. The improvement in the Gulf Coast region was due to improved performance of Gulf Coast properties. | |
(2) | Extensions and discoveries include 182 Bcf of Marcellus Shale gas in the Appalachian Region. | |
(3) | Production includes 7,180 MMcf from Marcellus Shale fields (which exceed 15% of total reserves). |
Oil Mbbl | ||||||||||||||||
U. S. | ||||||||||||||||
Gulf |
West |
|||||||||||||||
Coast |
Coast |
Appalachian |
Total |
|||||||||||||
Region | Region | Region | Company | |||||||||||||
Proved Developed and Undeveloped Reserves: |
||||||||||||||||
September 30, 2007 |
1,435 | 45,644 | 507 | 47,586 | ||||||||||||
Extensions and Discoveries |
298 | 471 | 58 | 827 | ||||||||||||
Revisions of Previous Estimates |
203 | (34 | ) | (64 | ) | 105 | ||||||||||
Production |
(505 | ) | (2,460 | )(1) | (105 | ) | (3,070 | ) | ||||||||
Purchases of Minerals in Place |
— | 2,084 | — | 2,084 | ||||||||||||
Sales of Minerals in Place |
(73 | ) | (1,261 | ) | — | (1,334 | ) | |||||||||
September 30, 2008 |
1,358 | 44,444 | 396 | 46,198 | ||||||||||||
Extensions and Discoveries |
302 | 896 | 15 | 1,213 | ||||||||||||
Revisions of Previous Estimates |
447 | 43 | (41 | ) | 449 | |||||||||||
Production |
(640 | ) | (2,674 | )(1) | (59 | ) | (3,373 | ) | ||||||||
Purchases of Minerals in Place |
— | 2,115 | — | 2,115 | ||||||||||||
Sales of Minerals in Place |
(15 | ) | — | — | (15 | ) | ||||||||||
September 30, 2009 |
1,452 | 44,824 | 311 | 46,587 | ||||||||||||
Extensions and Discoveries |
222 | 828 | 4 | 1,054 | ||||||||||||
Revisions of Previous Estimates |
332 | 484 | 2 | 818 | ||||||||||||
Production |
(502 | ) | (2,669 | )(1) | (49 | ) | (3,220 | ) | ||||||||
September 30, 2010 |
1,504 | 43,467 | 268 | 45,239 | ||||||||||||
Proved Developed Reserves: |
||||||||||||||||
September 30, 2007 |
1,435 | 36,509 | 483 | 38,427 | ||||||||||||
September 30, 2008 |
1,313 | 37,224 | 357 | 38,894 | ||||||||||||
September 30, 2009 |
1,194 | 37,711 | 285 | 39,190 | ||||||||||||
September 30, 2010 |
1,066 | 36,353 | 263 | 37,682 | ||||||||||||
Proved Undeveloped Reserves: |
||||||||||||||||
September 30, 2007 |
— | 9,135 | 24 | 9,159 | ||||||||||||
September 30, 2008 |
45 | 7,220 | 39 | 7,304 | ||||||||||||
September 30, 2009 |
258 | 7,113 | 26 | 7,397 | ||||||||||||
September 30, 2010 |
438 | 7,114 | 5 | 7,557 |
(1) | The Midway Sunset North fields (which exceed 15% of total reserves) contributed 1,583 Mbbls, 1,680 Mbbls, and 1,543 Mbbls of production during 2008, 2009, and 2010, respectively. |
Year Ended September 30 | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Thousands) | ||||||||||||
United States |
||||||||||||
Future Cash Inflows |
$ | 5,273,605 | $ | 3,972,026 | $ | 5,845,214 | ||||||
Less: |
||||||||||||
Future Production Costs |
1,347,855 | 1,010,851 | 1,231,705 | |||||||||
Future Development Costs |
445,413 | 312,717 | 265,515 | |||||||||
Future Income Tax Expense at Applicable Statutory Rate |
1,186,567 | 916,466 | 1,645,351 | |||||||||
Future Net Cash Flows |
2,293,770 | 1,731,992 | 2,702,643 | |||||||||
Less: |
||||||||||||
10% Annual Discount for Estimated Timing of Cash Flows |
1,120,182 | 856,015 | 1,434,799 | |||||||||
Standardized Measure of Discounted Future Net Cash Flows |
$ | 1,173,588 | $ | 875,977 | $ | 1,267,844 | ||||||
Year Ended September 30 | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Thousands) | ||||||||||||
United States |
||||||||||||
Standardized Measure of Discounted Future |
||||||||||||
Net Cash Flows at Beginning of Year |
$ | 875,977 | $ | 1,267,844 | $ | 1,060,462 | ||||||
Sales, Net of Production Costs |
(313,742 | ) | (218,557 | ) | (455,825 | ) | ||||||
Net Changes in Prices, Net of Production Costs |
176,530 | (699,217 | ) | 509,705 | ||||||||
Purchases of Minerals in Place |
— | 38,902 | 67,768 | |||||||||
Sales of Minerals in Place |
— | (20,141 | ) | (31,642 | ) | |||||||
Extensions and Discoveries |
329,555 | 66,002 | 143,394 | |||||||||
Changes in Estimated Future Development Costs |
(17,353 | ) | (22,392 | ) | (100,684 | ) | ||||||
Previously Estimated Development Costs Incurred |
47,539 | 53,285 | 65,156 | |||||||||
Net Change in Income Taxes at Applicable Statutory Rate |
(85,703 | ) | 331,251 | (119,585 | ) | |||||||
Revisions of Previous Quantity Estimates |
46,246 | (27,864 | ) | (3,936 | ) | |||||||
Accretion of Discount and Other |
114,539 | 106,864 | 133,031 | |||||||||
Standardized Measure of Discounted Future Net Cash Flows at End of Year |
$ | 1,173,588 | $ | 875,977 | $ | 1,267,844 | ||||||
|
Additions |
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Balance |
Charged |
Additions |
Balance |
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at |
to |
Charged |
at |
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Beginning |
Costs |
to |
End |
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of |
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Other |
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Description | Period | Expenses | Accounts(1) | Deductions(2) | Period | |||||||||||||||
Year Ended September 30, 2010 |
||||||||||||||||||||
Allowance for Uncollectible Accounts |
$ | 38,334 | $ | 15,422 | $ | 2,268 | $ | 25,063 | $ | 30,961 | ||||||||||
Year Ended September 30, 2009 |
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Allowance for Uncollectible Accounts |
$ | 33,117 | $ | 31,464 | $ | 2,751 | $ | 28,998 | $ | 38,334 | ||||||||||
Year Ended September 30, 2008 |
||||||||||||||||||||
Allowance for Uncollectible Accounts |
$ | 28,654 | $ | 27,274 | $ | 2,734 | $ | 25,545 | $ | 33,117 | ||||||||||
(1) | Represents the discount on accounts receivable purchased in accordance with the Utility segment's 2005 New York rate agreement. | |
(2) | Amounts represent net accounts receivable written-off. |