|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
As of September 30 | |||||||
2014 | 2013 | ||||||
(Thousands) | |||||||
Exploration and Production | $ | 3,996,834 | $ | 3,437,767 | |||
Pipeline and Storage | 1,609,593 | 1,547,192 | |||||
Gathering | 239,507 | 130,082 | |||||
Utility | 1,833,104 | 1,778,140 | |||||
Energy Marketing | 3,366 | 3,460 | |||||
All Other and Corporate | 108,986 | 109,690 | |||||
$ | 7,791,390 | $ | 7,006,331 |
Year Ended September 30 | |||||||||||
2014 | 2013 | 2012 | |||||||||
Exploration and Production, per Mcfe(1) | $ | 1.85 | $ | 2.02 | $ | 2.25 | |||||
Pipeline and Storage | 2.4 | % | 2.5 | % | 2.9 | % | |||||
Gathering | 3.3 | % | 3.7 | % | 3.3 | % | |||||
Utility | 2.6 | % | 2.6 | % | 2.6 | % | |||||
Energy Marketing | 5.8 | % | 3.9 | % | 3.6 | % | |||||
All Other and Corporate | 0.9 | % | 1.3 | % | 1.1 | % |
(1) | Amounts include depletion of oil and gas producing properties as well as depreciation of fixed assets. As disclosed in Note M — Supplementary Information for Oil and Gas Producing Properties, depletion of oil and gas producing properties amounted to $1.82, $1.98 and $2.19 per Mcfe of production in 2014, 2013 and 2012, respectively. |
Gains and Losses on Derivative Financial Instruments | Gains and Losses on Securities Available for Sale | Funded Status of the Pension and Other Post-Retirement Benefit Plans | Total | ||||||||||||
Year Ended September 30, 2014 | |||||||||||||||
Balance at October 1, 2013 | $ | 30,722 | $ | 6,337 | $ | (56,293 | ) | $ | (19,234 | ) | |||||
Other Comprehensive Gains and Losses Before Reclassifications | 4,805 | 2,465 | (5,560 | ) | 1,710 | ||||||||||
Amounts Reclassified From Other Comprehensive Loss | 8,132 | (420 | ) | 5,833 | 13,545 | ||||||||||
Balance at September 30, 2014 | $ | 43,659 | $ | 8,382 | $ | (56,020 | ) | $ | (3,979 | ) |
Details About Accumulated Other Comprehensive Loss Components | Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss for the Year Ended September 30, 2014 | Affected Line Item in the Statement Where Net Income is Presented | ||||
Gains (Losses) on Derivative Financial Instrument Cash Flow Hedges: | ||||||
Commodity Contracts | ($14,880 | ) | Operating Revenues | |||
Commodity Contracts | (2,767 | ) | Purchased Gas | |||
Gains (Losses) on Securities Available for Sale | 662 | Other Income | ||||
Amortization of Prior Year Funded Status of the Pension and Other Post-Retirement Benefit Plans: | ||||||
Prior Service Credit | 131 | (1) | ||||
Net Actuarial Loss | (9,334 | ) | (1) | |||
(26,188 | ) | Total Before Income Tax | ||||
12,643 | Income Tax Expense | |||||
($13,545 | ) | Net of Tax |
(1) | These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost. Refer to Note H — Retirement Plan and Other Post-Retirement Benefits for additional details. |
Year Ended September 30 | |||||||
2014 | 2013 | ||||||
(Thousands) | |||||||
Prepayments | $ | 10,079 | $ | 10,605 | |||
Prepaid Property and Other Taxes | 13,743 | 13,079 | |||||
Federal Income Taxes Receivable | 8,211 | 1,122 | |||||
State Income Taxes Receivable | — | 3,275 | |||||
Fair Values of Firm Commitments | — | 1,829 | |||||
Regulatory Assets | 22,719 | 26,995 | |||||
$ | 54,752 | $ | 56,905 |
Year Ended September 30 | |||||||
2014 | 2013 | ||||||
(Thousands) | |||||||
Accrued Capital Expenditures | $ | 80,348 | $ | 41,100 | |||
Regulatory Liabilities | 18,072 | 20,013 | |||||
State Income Taxes Payable | 5,798 | — | |||||
Other | 32,454 | 22,833 | |||||
$ | 136,672 | $ | 83,946 |
|
Year Ended September 30 | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Thousands) | |||||||||||
Balance at Beginning of Year | $ | 119,511 | $ | 119,246 | $ | 75,731 | |||||
Liabilities Incurred and Revisions of Estimates | (2,496 | ) | (4,796 | ) | 41,653 | ||||||
Liabilities Settled | (6,955 | ) | (1,744 | ) | (2,997 | ) | |||||
Accretion Expense | 7,653 | 6,805 | 4,859 | ||||||||
Balance at End of Year | $ | 117,713 | $ | 119,511 | $ | 119,246 |
|
At September 30 | |||||||
2014 | 2013 | ||||||
(Thousands) | |||||||
Regulatory Assets(1): | |||||||
Pension Costs(2) (Note H) | $ | 164,804 | $ | 187,181 | |||
Post-Retirement Benefit Costs(2) (Note H) | 17,128 | 29,838 | |||||
Recoverable Future Taxes (Note D) | 163,485 | 163,355 | |||||
Environmental Site Remediation Costs(2) (Note I) | 25,645 | 18,104 | |||||
NYPSC Assessment(3) | 12,730 | 13,169 | |||||
Asset Retirement Obligations(2) (Note B) | 12,006 | 11,837 | |||||
Unamortized Debt Expense (Note A) | 2,747 | 3,276 | |||||
Other(4) | 14,842 | 19,434 | |||||
Total Regulatory Assets | 413,387 | 446,194 | |||||
Less: Amounts Included in Other Current Assets | (22,719 | ) | (26,995 | ) | |||
Total Long-Term Regulatory Assets | $ | 390,668 | $ | 419,199 |
At September 30 | |||||||
2014 | 2013 | ||||||
(Thousands) | |||||||
Regulatory Liabilities: | |||||||
Cost of Removal Regulatory Liability | $ | 173,199 | $ | 157,622 | |||
Taxes Refundable to Customers (Note D) | 91,736 | 85,655 | |||||
Post-Retirement Benefit Costs (Note H) | 53,650 | 37,923 | |||||
Amounts Payable to Customers (See Regulatory Mechanisms in Note A) | 33,745 | 12,828 | |||||
Off-System Sales and Capacity Release Credits(5) | 12,805 | 10,228 | |||||
Other(6) | 32,769 | 33,411 | |||||
Total Regulatory Liabilities | 397,904 | 337,667 | |||||
Less: Amounts included in Current and Accrued Liabilities | (51,817 | ) | (32,841 | ) | |||
Total Long-Term Regulatory Liabilities | $ | 346,087 | $ | 304,826 |
(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) | Amounts are included in Other Current Assets on the Consolidated Balance Sheets at September 30, 2014 and September 30, 2013 since such amounts are expected to be recovered from ratepayers in the next 12 months. |
(4) | $9,989 and $13,826 are included in Other Current Assets on the Consolidated Balance Sheets at September 30, 2014 and 2013, respectively, since such amounts are expected to be recovered from ratepayers in the next 12 months. $4,853 and $5,608 are included in Other Regulatory Assets on the Consolidated Balance Sheets at September 30, 2014 and 2013, respectively. |
(5) | Amounts are included in Other Accruals and Current Liabilities on the Consolidated Balance Sheets at September 30, 2014 and September 30, 2013 since such amounts are expected to be passed back to ratepayers in the next 12 months. |
(6) | $5,267 and $9,785 are included in Other Accruals and Current Liabilities on the Consolidated Balance Sheets at September 30, 2014 and 2013, respectively, since such amounts are expected to be recovered from ratepayers in the next 12 months. $27,502 and $23,626 are included in Other Regulatory Liabilities on the Consolidated Balance Sheets at September 30, 2014 and 2013, respectively. |
|
Year Ended September 30 | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Thousands) | |||||||||||
Current Income Taxes — | |||||||||||
Federal | $ | 34,579 | $ | (632 | ) | $ | (8 | ) | |||
State | 12,620 | 5,503 | 6,412 | ||||||||
Deferred Income Taxes — | |||||||||||
Federal | 116,143 | 130,318 | 111,176 | ||||||||
State | 26,272 | 37,569 | 32,974 | ||||||||
189,614 | 172,758 | 150,554 | |||||||||
Deferred Investment Tax Credit | (434 | ) | (426 | ) | (581 | ) | |||||
Total Income Taxes | $ | 189,180 | $ | 172,332 | $ | 149,973 | |||||
Presented as Follows: | |||||||||||
Other Income | $ | (434 | ) | $ | (426 | ) | $ | (581 | ) | ||
Income Tax Expense | 189,614 | 172,758 | 150,554 | ||||||||
Total Income Taxes | $ | 189,180 | $ | 172,332 | $ | 149,973 |
Year Ended September 30 | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Thousands) | |||||||||||
U.S. Income Before Income Taxes | $ | 488,593 | $ | 432,333 | $ | 370,050 | |||||
Income Tax Expense, Computed at U.S. Federal Statutory Rate of 35% | $ | 171,008 | $ | 151,317 | $ | 129,518 | |||||
Increase (Reduction) in Taxes Resulting from: | |||||||||||
State Income Taxes | 25,280 | 27,997 | 25,601 | ||||||||
Miscellaneous | (7,108 | ) | (6,982 | ) | (5,146 | ) | |||||
Total Income Taxes | $ | 189,180 | $ | 172,332 | $ | 149,973 |
At September 30 | |||||||
2014 | 2013 | ||||||
(Thousands) | |||||||
Deferred Tax Liabilities: | |||||||
Property, Plant and Equipment | $ | 1,614,515 | $ | 1,504,187 | |||
Pension and Other Post-Retirement Benefit Costs | 113,248 | 124,021 | |||||
Other | 87,935 | 75,419 | |||||
Total Deferred Tax Liabilities | 1,815,698 | 1,703,627 | |||||
Deferred Tax Assets: | |||||||
Pension and Other Post-Retirement Benefit Costs | (124,452 | ) | (130,256 | ) | |||
Tax Loss and Credit Carryforwards | (171,423 | ) | (215,262 | ) | |||
Other | (103,863 | ) | (90,461 | ) | |||
Total Deferred Tax Assets | (399,738 | ) | (435,979 | ) | |||
Total Net Deferred Income Taxes | $ | 1,415,960 | $ | 1,267,648 | |||
Presented as Follows: | |||||||
Deferred Tax Liability/(Asset) — Current | $ | (40,323 | ) | $ | (79,359 | ) | |
Deferred Tax Liability — Non-Current | 1,456,283 | 1,347,007 | |||||
Total Net Deferred Income Taxes | $ | 1,415,960 | $ | 1,267,648 |
Year Ended September 30 | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Thousands) | |||||||||||
Balance at Beginning of Year | $ | 2,001 | $ | 11,170 | $ | 7,766 | |||||
Additions for Tax Positions Related to Current Year | — | 700 | 1,600 | ||||||||
Additions for Tax Positions of Prior Years | 2,447 | 164 | 2,751 | ||||||||
Reductions for Tax Positions of Prior Years | (1,301 | ) | (10,033 | ) | (947 | ) | |||||
Balance at End of Year | $ | 3,147 | $ | 2,001 | $ | 11,170 |
|
Common Stock | Paid In Capital | Earnings Reinvested in the Business | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||
Shares | Amount | |||||||||||||||||
(Thousands, except per share amounts) | ||||||||||||||||||
Balance at September 30, 2011 | 82,813 | $ | 82,813 | $ | 650,749 | $ | 1,206,022 | $ | (47,699 | ) | ||||||||
Net Income Available for Common Stock | 220,077 | |||||||||||||||||
Dividends Declared on Common Stock ($1.44 Per Share) | (119,815 | ) | ||||||||||||||||
Other Comprehensive Loss, Net of Tax | (51,321 | ) | ||||||||||||||||
Share-Based Payment Expense(2) | 7,156 | |||||||||||||||||
Common Stock Issued Under Stock and Benefit Plans(1) | 517 | 517 | 11,596 | |||||||||||||||
Balance at September 30, 2012 | 83,330 | 83,330 | 669,501 | 1,306,284 | (99,020 | ) | ||||||||||||
Net Income Available for Common Stock | 260,001 | |||||||||||||||||
Dividends Declared on Common Stock ($1.48 Per Share) | (123,668 | ) | ||||||||||||||||
Other Comprehensive Income, Net of Tax | 79,786 | |||||||||||||||||
Share-Based Payment Expense(2) | 11,537 | |||||||||||||||||
Common Stock Issued Under Stock and Benefit Plans(1) | 332 | 332 | 6,646 | |||||||||||||||
Balance at September 30, 2013 | 83,662 | 83,662 | 687,684 | 1,442,617 | (19,234 | ) | ||||||||||||
Net Income Available for Common Stock | 299,413 | |||||||||||||||||
Dividends Declared on Common Stock ($1.52 Per Share) | (127,669 | ) | ||||||||||||||||
Other Comprehensive Income, Net of Tax | 15,255 | |||||||||||||||||
Share-Based Payment Expense(2) | 10,654 | |||||||||||||||||
Common Stock Issued Under Stock and Benefit Plans(1) | 495 | 495 | 17,806 | |||||||||||||||
Balance at September 30, 2014 | 84,157 | $ | 84,157 | $ | 716,144 | $ | 1,614,361 | (3) | $ | (3,979 | ) |
(1) | Paid in Capital includes tax benefits of $4.6 million, $0.7 million and $1.0 million for September 30, 2014, 2013 and 2012, respectively, related to stock-based compensation. |
(2) | Paid in Capital includes compensation costs associated with stock option, SARs, performance share 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, 2014, $1.5 billion of accumulated earnings was free of such limitations. |
Number of Shares Subject to Option | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
(In thousands) | ||||||||||||
Outstanding at September 30, 2013 | 803,500 | $ | 34.71 | |||||||||
Granted in 2014 | — | $ | — | |||||||||
Exercised in 2014 | (321,500 | ) | $ | 31.71 | ||||||||
Forfeited in 2014 | — | $ | — | |||||||||
Outstanding at September 30, 2014 | 482,000 | $ | 36.71 | 1.80 | $ | 16,039 | ||||||
Option shares exercisable at September 30, 2014 | 482,000 | $ | 36.71 | 1.80 | $ | 16,039 | ||||||
Option shares available for future grant at September 30, 2014(1) | 712,232 |
(1) | Includes shares available for SARs, restricted stock and performance share grants. |
Number of Shares Subject To Option | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
(In thousands) | ||||||||||||
Outstanding at September 30, 2013 | 2,002,704 | $ | 46.73 | |||||||||
Granted in 2014 | — | $ | — | |||||||||
Exercised in 2014 | (209,222 | ) | $ | 34.90 | ||||||||
Forfeited in 2014 | — | $ | — | |||||||||
Canceled in 2014 | — | $ | — | |||||||||
Outstanding at September 30, 2014 | 1,793,482 | $ | 48.11 | 5.93 | $ | 39,246 | ||||||
SARs exercisable at September 30, 2014 | 1,434,023 | $ | 46.65 | 5.45 | $ | 33,466 |
Year Ended September 30 | |||||||
2014 | 2013 | 2012 | |||||
Risk-Free Interest Rate | N/A | 1.55 | % | 1.59 | % | ||
Expected Life (Years) | N/A | 8.25 | 8.25 | ||||
Expected Volatility | N/A | 25.61 | % | 24.97 | % | ||
Expected Dividend Yield (Quarterly) | N/A | 0.69 | % | 0.64 | % |
Number of Restricted Share Awards | Weighted Average Fair Value per Award | |||||
Outstanding at September 30, 2013 | 127,453 | $ | 51.69 | |||
Granted in 2014 | — | $ | — | |||
Vested in 2014 | (34,601 | ) | $ | 58.17 | ||
Forfeited in 2014 | (3,334 | ) | $ | 55.09 | ||
Outstanding at September 30, 2014 | 89,518 | $ | 49.05 |
Number of Restricted Stock Units | Weighted Average Fair Value per Award | |||||
Outstanding at September 30, 2013 | 143,500 | $ | 51.53 | |||
Granted in 2014 | 82,151 | $ | 65.24 | |||
Vested in 2014 | (12,432 | ) | $ | 60.54 | ||
Forfeited in 2014 | (8,700 | ) | $ | 54.53 | ||
Outstanding at September 30, 2014 | 204,519 | $ | 56.36 |
Number of Performance Based Restricted Stock Units | Weighted Average Fair Value per Award | |||||
Outstanding at September 30, 2013 | 255,604 | $ | 49.51 | |||
Granted in 2014 | — | $ | — | |||
Vested in 2014 | — | $ | — | |||
Forfeited in 2014 | (21,728 | ) | $ | 48.49 | ||
Outstanding at September 30, 2014 | 233,876 | $ | 49.61 |
Number of Performance Shares | Weighted Average Fair Value per Award | |||||
Outstanding at September 30, 2013 | — | $ | — | |||
Granted in 2014 | 116,090 | $ | 67.16 | |||
Vested in 2014 | — | $ | — | |||
Forfeited in 2014 | (17,624 | ) | $ | 67.16 | ||
Outstanding at September 30, 2014 | 98,466 | $ | 67.16 |
Year Ended September 30 | ||||||
2014 | 2013 | 2012 | ||||
Risk-Free Interest Rate | 0.62 | % | N/A | N/A | ||
Remaining Term at Date of Grant (Years) | 2.78 | N/A | N/A | |||
Expected Volatility | 28.3 | % | N/A | N/A | ||
Expected Dividend Yield (Quarterly) | N/A | N/A | N/A |
At September 30 | |||||||
2014 | 2013 | ||||||
(Thousands) | |||||||
Medium-Term Notes(1): | |||||||
7.4% due March 2023 to June 2025 | $ | 99,000 | $ | 99,000 | |||
Notes(1)(3): | |||||||
3.75% to 8.75% due April 2018 to March 2023 | 1,550,000 | 1,550,000 | |||||
Total Long-Term Debt | 1,649,000 | 1,649,000 | |||||
Less Current Portion(2) | — | — | |||||
$ | 1,649,000 | $ | 1,649,000 |
(1) | The Medium-Term Notes and Notes are unsecured. |
(2) | None of the Company’s long-term debt at September 30, 2014 and 2013 will mature within the following twelve-month period. |
(3) | The holders of these notes may require the Company to repurchase their notes at a price equal to 101% of the principal amount in the event of both a change in control and a ratings downgrade to a rating below investment grade. |
|
At Fair Value as of September 30, 2014 | |||||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Netting Adjustments(1) | Total(1) | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Cash Equivalents — Money Market Mutual Funds | $ | 23,794 | $ | — | $ | — | $ | — | $ | 23,794 | |||||||||
Derivative Financial Instruments: | |||||||||||||||||||
Commodity Futures Contracts — Gas | 2,725 | — | — | (1,987 | ) | 738 | |||||||||||||
Over the Counter Swaps — Gas and Oil | — | 75,951 | 1,368 | (5,451 | ) | 71,868 | |||||||||||||
Other Investments: | |||||||||||||||||||
Balanced Equity Mutual Fund | 35,331 | — | — | — | 35,331 | ||||||||||||||
Common Stock — Financial Services Industry | 6,629 | — | — | — | 6,629 | ||||||||||||||
Other Common Stock | 455 | — | — | — | 455 | ||||||||||||||
Hedging Collateral Deposits | 2,734 | — | — | — | 2,734 | ||||||||||||||
Total | $ | 71,668 | $ | 75,951 | $ | 1,368 | $ | (7,438 | ) | $ | 141,549 | ||||||||
Liabilities: | |||||||||||||||||||
Derivative Financial Instruments: | |||||||||||||||||||
Commodity Futures Contracts — Gas | $ | 2,674 | $ | — | $ | — | $ | (1,987 | ) | $ | 687 | ||||||||
Over the Counter Swaps — Gas and Oil | — | 5,523 | — | (5,451 | ) | 72 | |||||||||||||
Total | $ | 2,674 | $ | 5,523 | $ | — | $ | (7,438 | ) | $ | 759 | ||||||||
Total Net Assets/(Liabilities) | $ | 68,994 | $ | 70,428 | $ | 1,368 | $ | — | $ | 140,790 |
At Fair Value as of September 30, 2013 | |||||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Netting Adjustments(1) | Total(1) | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Cash Equivalents — Money Market Mutual Funds | $ | 51,332 | $ | — | $ | — | $ | — | $ | 51,332 | |||||||||
Derivative Financial Instruments: | |||||||||||||||||||
Commodity Futures Contracts — Gas | 2,552 | — | — | (1,641 | ) | 911 | |||||||||||||
Over the Counter Swaps — Gas and Oil | — | 57,070 | — | (9,003 | ) | 48,067 | |||||||||||||
Other Investments: | |||||||||||||||||||
Balanced Equity Mutual Fund | 31,813 | — | — | — | 31,813 | ||||||||||||||
Common Stock — Financial Services Industry | 6,544 | — | — | — | 6,544 | ||||||||||||||
Other Common Stock | 330 | — | — | — | 330 | ||||||||||||||
Hedging Collateral Deposits | 1,094 | — | — | — | 1,094 | ||||||||||||||
Total | $ | 93,665 | $ | 57,070 | $ | — | $ | (10,644 | ) | $ | 140,091 | ||||||||
Liabilities: | |||||||||||||||||||
Derivative Financial Instruments: | |||||||||||||||||||
Commodity Futures Contracts — Gas | $ | 1,641 | $ | — | $ | — | $ | (1,641 | ) | $ | — | ||||||||
Over the Counter Swaps — Gas and Oil | — | 4,452 | 5,190 | (9,003 | ) | 639 | |||||||||||||
Total | $ | 1,641 | $ | 4,452 | $ | 5,190 | $ | (10,644 | ) | $ | 639 | ||||||||
Total Net Assets/(Liabilities) | $ | 92,024 | $ | 52,618 | $ | (5,190 | ) | $ | — | $ | 139,452 |
(1) | Netting Adjustments represent the impact of legally-enforceable master netting arrangements that allow the Company to net gain and loss positions held with the same counterparties. The net asset or net liability for each counterparty is recorded as an asset or liability on the Company’s balance sheet. |
Total Gains/Losses | |||||||||||||||||||
October 1, 2013 | (Gains)/Losses Realized and Included in Earnings | Gains/(Losses) Unrealized and Included in Other Comprehensive Income (Loss) | Transfer In/(Out) of Level 3 | September 30, 2014 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Derivative Financial Instruments(2) | $ | (5,190 | ) | $ | 2,217 | (1) | $ | 4,341 | $ | — | $ | 1,368 |
(1) | Amounts are reported in Operating Revenues in the Consolidated Statement of Income for the year ended September 30, 2014. |
(2) | Derivative Financial Instruments are shown on a net basis. |
Total Gains/Losses | |||||||||||||||||||
October 1, 2012 | (Gains)/Losses Realized and Included in Earnings | Gains/(Losses) Unrealized and Included in Other Comprehensive Income (Loss) | Transfer In/(Out) of Level 3 | September 30, 2013 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Derivative Financial Instruments(2) | $ | (19,664 | ) | $ | 13,408 | (1) | $ | 1,066 | $ | — | $ | (5,190 | ) |
(1) | Amounts are reported in Operating Revenues in the Consolidated Statement of Income for the year ended September 30, 2013. |
(2) | Derivative Financial Instruments are shown on a net basis. |
|
At September 30 | |||||||||||||||
2014 Carrying Amount | 2014 Fair Value | 2013 Carrying Amount | 2013 Fair Value | ||||||||||||
(Thousands) | |||||||||||||||
Long-Term Debt | $ | 1,649,000 | $ | 1,775,715 | $ | 1,649,000 | $ | 1,767,519 |
Commodity | Units | ||
Natural Gas | 212.1 | Bcf (short positions) | |
Natural Gas | 3.3 | Bcf (long positions) | |
Crude Oil | 3,285,000 | Bbls (short positions) |
The Effect of Derivative Financial Instruments on the Statement of Financial Performance for the Year Ended September 30, 2014 and 2013 (Dollar Amounts in Thousands) | ||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Amount of Derivative Gain or (Loss) Recognized in Other Comprehensive Income (Loss) on the Consolidated Statement of Comprehensive Income (Loss) (Effective Portion) for the Year Ended September 30, | Location of Derivative Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheet into the Consolidated Statement of Income (Effective Portion) | Amount of Derivative Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheet into the Consolidated Statement of Income (Effective Portion) for the Year Ended September 30, | Location of Derivative Gain or (Loss) Recognized in the Consolidated Statement of Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Derivative Gain or (Loss) Recognized in the Consolidated Statement of Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) for the Year Ended September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Commodity Contracts | $ | 9,763 | $ | 87,813 | Operating Revenue | $ | (14,880 | ) | $ | 36,949 | Operating Revenue | $ | 624 | $ | (2,045 | ) | ||||||||||||
Commodity Contracts | $ | (4,429 | ) | $ | 3,977 | Purchased Gas | $ | (2,767 | ) | $ | (920 | ) | Not Applicable | $ | — | $ | — | |||||||||||
Total | $ | 5,334 | $ | 91,790 | $ | (17,647 | ) | $ | 36,029 | $ | 624 | $ | (2,045 | ) |
Derivatives in Fair Value Hedging Relationships | Location of Gain or (Loss) on Derivative and Hedged Item Recognized in the Consolidated Statement of Income | Amount of Gain or (Loss) on Derivative Recognized in the Consolidated Statement of Income for the Year Ended September 30, 2014 | Amount of Gain or (Loss) on Hedged Item Recognized in the Consolidated Statement of Income for the Year Ended September 30, 2014 | |||||||
(In thousands) | ||||||||||
Commodity Contracts | Operating Revenues | $ | 696 | $ | (696 | ) | ||||
Commodity Contracts | Purchased Gas | (574 | ) | 574 | ||||||
$ | 122 | $ | (122 | ) |
|
Retirement Plan | Other Post-Retirement Benefits | ||||||||||||||||||||||
Year Ended September 30 | Year Ended September 30 | ||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
(Thousands) | |||||||||||||||||||||||
Change in Benefit Obligation | |||||||||||||||||||||||
Benefit Obligation at Beginning of Period | $ | 946,305 | $ | 1,070,744 | $ | 949,777 | $ | 460,634 | $ | 561,263 | $ | 485,452 | |||||||||||
Service Cost | 11,987 | 15,846 | 14,202 | 2,939 | 4,705 | 4,016 | |||||||||||||||||
Interest Cost | 43,574 | 36,498 | 41,526 | 21,308 | 19,212 | 21,315 | |||||||||||||||||
Plan Participants’ Contributions | — | — | — | 2,265 | 2,141 | 1,956 | |||||||||||||||||
Retiree Drug Subsidy Receipts | — | — | — | 1,419 | 1,526 | 1,528 | |||||||||||||||||
Actuarial (Gain) Loss | 53,887 | (121,631 | ) | 120,338 | 1,087 | (104,455 | ) | 71,708 | |||||||||||||||
Benefits Paid | (56,254 | ) | (55,152 | ) | (55,099 | ) | (24,069 | ) | (23,758 | ) | (24,712 | ) | |||||||||||
Benefit Obligation at End of Period | $ | 999,499 | $ | 946,305 | $ | 1,070,744 | $ | 465,583 | $ | 460,634 | $ | 561,263 | |||||||||||
Change in Plan Assets | |||||||||||||||||||||||
Fair Value of Assets at Beginning of Period | $ | 799,307 | $ | 701,676 | $ | 601,719 | $ | 472,392 | $ | 414,134 | $ | 351,990 | |||||||||||
Actual Return on Plan Assets | 93,238 | 98,783 | 111,034 | 44,898 | 61,715 | 63,552 | |||||||||||||||||
Employer Contributions | 33,500 | 54,000 | 44,022 | 2,115 | 18,160 | 21,348 | |||||||||||||||||
Plan Participants’ Contributions | — | — | — | 2,265 | 2,141 | 1,956 | |||||||||||||||||
Benefits Paid | (56,254 | ) | (55,152 | ) | (55,099 | ) | (24,069 | ) | (23,758 | ) | (24,712 | ) | |||||||||||
Fair Value of Assets at End of Period | $ | 869,791 | $ | 799,307 | $ | 701,676 | $ | 497,601 | $ | 472,392 | $ | 414,134 | |||||||||||
Net Amount Recognized at End of Period (Funded Status) | $ | (129,708 | ) | $ | (146,998 | ) | $ | (369,068 | ) | $ | 32,018 | $ | 11,758 | $ | (147,129 | ) | |||||||
Amounts Recognized in the Balance Sheets Consist of: | |||||||||||||||||||||||
Non-Current Liabilities | $ | (129,708 | ) | $ | (146,998 | ) | $ | (369,068 | ) | $ | (4,494 | ) | $ | (11,016 | ) | $ | (147,129 | ) | |||||
Non-Current Assets | — | — | — | 36,512 | 22,774 | — | |||||||||||||||||
Net Amount Recognized at End of Period | $ | (129,708 | ) | $ | (146,998 | ) | $ | (369,068 | ) | $ | 32,018 | $ | 11,758 | $ | (147,129 | ) | |||||||
Accumulated Benefit Obligation | $ | 940,068 | $ | 886,942 | $ | 986,223 | N/A | N/A | N/A | ||||||||||||||
Weighted Average Assumptions Used to Determine Benefit Obligation at September 30 | |||||||||||||||||||||||
Discount Rate | 4.25 | % | 4.75 | % | 3.50 | % | 4.25 | % | 4.75 | % | 3.50 | % | |||||||||||
Rate of Compensation Increase | 4.75 | % | 4.75 | % | 4.75 | % | 4.75 | % | 4.75 | % | 4.75 | % |
Retirement Plan | Other Post-Retirement Benefits | ||||||||||||||||||||||
Year Ended September 30 | Year Ended September 30 | ||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
(Thousands) | |||||||||||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||||||||
Service Cost | $ | 11,987 | $ | 15,846 | $ | 14,202 | $ | 2,939 | $ | 4,705 | $ | 4,016 | |||||||||||
Interest Cost | 43,574 | 36,498 | 41,526 | 21,308 | 19,212 | 21,315 | |||||||||||||||||
Expected Return on Plan Assets | (59,974 | ) | (57,346 | ) | (59,701 | ) | (37,424 | ) | (32,872 | ) | (28,971 | ) | |||||||||||
Amortization of Prior Service Cost (Credit) | 210 | 238 | 269 | (2,138 | ) | (2,138 | ) | (2,138 | ) | ||||||||||||||
Amortization of Transition Amount | — | — | — | — | 8 | 10 | |||||||||||||||||
Recognition of Actuarial Loss(1) | 36,007 | 52,776 | 39,615 | 2,645 | 20,892 | 24,057 | |||||||||||||||||
Net Amortization and Deferral for Regulatory Purposes | 8,151 | (10,406 | ) | (6,900 | ) | 23,263 | 11,844 | 6,162 | |||||||||||||||
Net Periodic Benefit Cost | $ | 39,955 | $ | 37,606 | $ | 29,011 | $ | 10,593 | $ | 21,651 | $ | 24,451 | |||||||||||
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost at September 30 | |||||||||||||||||||||||
Discount Rate | 4.75 | % | 3.50 | % | 4.50 | % | 4.75 | % | 3.50 | % | 4.50 | % | |||||||||||
Expected Return on Plan Assets | 8.00 | % | 8.00 | % | 8.25 | % | 8.00 | % | 8.00 | % | 8.25 | % | |||||||||||
Rate of Compensation Increase | 4.75 | % | 4.75 | % | 4.75 | % | 4.75 | % | 4.75 | % | 4.75 | % |
(1) | 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. |
Retirement Plan | Other Post-Retirement Benefits | Non-Qualified Benefit Plans | |||||||||
(Thousands) | |||||||||||
Amounts Recognized in Accumulated Other Comprehensive Income (Loss), Regulatory Assets and Regulatory Liabilities(1) | |||||||||||
Net Actuarial Loss | $ | (226,897 | ) | $ | (32,082 | ) | $ | (23,532 | ) | ||
Prior Service (Cost) Credit | (856 | ) | 6,940 | — | |||||||
Net Amount Recognized | $ | (227,753 | ) | $ | (25,142 | ) | $ | (23,532 | ) | ||
Changes to Accumulated Other Comprehensive Income (Loss), Regulatory Assets and Regulatory Liabilities Recognized During Fiscal 2014(1) | |||||||||||
Decrease (Increase) in Actuarial Loss, excluding amortization(2) | $ | (20,622 | ) | $ | 6,387 | $ | (5,424 | ) | |||
Change due to Amortization of Actuarial Loss | 36,007 | 2,645 | 3,008 | ||||||||
Prior Service (Cost) Credit | 210 | (2,138 | ) | — | |||||||
Net Change | $ | 15,595 | $ | 6,894 | $ | (2,416 | ) | ||||
Amounts Expected to be Recognized in Net Periodic Benefit Cost in the Next Fiscal Year(1) | |||||||||||
Net Actuarial Loss | $ | (36,129 | ) | $ | (4,148 | ) | $ | (2,925 | ) | ||
Prior Service (Cost) Credit | (183 | ) | 1,913 | — | |||||||
Net Amount Expected to be Recognized | $ | (36,312 | ) | $ | (2,235 | ) | $ | (2,925 | ) |
(1) | Amounts presented are shown before recognizing deferred taxes. |
(2) | Amounts presented include the impact of actuarial gains/losses related to return on assets, as well as the Actuarial (Gain) Loss amounts presented in the Change in Benefit Obligation. |
Benefit Payments | Subsidy Receipts | ||||||
2015 | $ | 25,594 | $ | (1,955 | ) | ||
2016 | $ | 26,909 | $ | (2,143 | ) | ||
2017 | $ | 28,113 | $ | (2,323 | ) | ||
2018 | $ | 29,226 | $ | (2,511 | ) | ||
2019 | $ | 30,173 | $ | (2,708 | ) | ||
2020 through 2024 | $ | 163,470 | $ | (16,104 | ) |
2014 | 2013 | 2012 | |||||||||
Rate of Increase for Pre Age 65 Participants | 7.10 | % | (1) | 7.28 | % | (1) | 7.46 | % | (1) | ||
Rate of Increase for Post Age 65 Participants | 6.73 | % | (1) | 6.78 | % | (1) | 6.84 | % | (1) | ||
Annual Rate of Increase in the Per Capita Cost of Covered Prescription Drug Benefits | 7.47 | % | (1) | 7.78 | % | (1) | 8.08 | % | (1) | ||
Annual Rate of Increase in the Per Capita Medicare Part B Reimbursement | 6.73 | % | (1) | 6.78 | % | (1) | 6.84 | % | (1) | ||
Annual Rate of Increase in the Per Capita Medicare Part D Subsidy | 6.79 | % | (1) | 7.03 | % | (1) | 7.13 | % | (1) |
(1) | It was assumed that this rate would gradually decline to 4.5% by 2028. |
Total Fair Value Amounts at September 30, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||||
Retirement Plan Investments | |||||||||||||||
Domestic Equities(1) | $ | 268,649 | $ | 171,979 | $ | 96,670 | $ | — | |||||||
International Equities(2) | 80,957 | 1,969 | 78,988 | — | |||||||||||
Global Equities(3) | 104,238 | — | 104,238 | — | |||||||||||
Domestic Fixed Income(4) | 299,494 | 63,187 | 236,307 | — | |||||||||||
International Fixed Income(5) | 1,240 | 508 | 732 | — | |||||||||||
Global Fixed Income(6) | 93,704 | — | 93,704 | — | |||||||||||
Hedge Fund Investments | 45,213 | — | — | 45,213 | |||||||||||
Real Estate | 3,792 | — | — | 3,792 | |||||||||||
Cash and Cash Equivalents | 33,544 | — | 33,544 | — | |||||||||||
Total Retirement Plan Investments | 930,831 | 237,643 | 644,183 | 49,005 | |||||||||||
401(h) Investments | (54,921 | ) | (14,105 | ) | (37,907 | ) | (2,909 | ) | |||||||
Total Retirement Plan Investments (excluding 401(h) Investments) | $ | 875,910 | $ | 223,538 | $ | 606,276 | $ | 46,096 | |||||||
Miscellaneous Accruals, Interest Receivables, and Non-Interest Cash | (6,119 | ) | |||||||||||||
Total Retirement Plan Assets | $ | 869,791 |
Total Fair Value Amounts at September 30, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||
Retirement Plan Investments | |||||||||||||||
Domestic Equities(1) | $ | 402,107 | $ | 271,071 | $ | 131,036 | $ | — | |||||||
International Equities(2) | 103,028 | 2,355 | 100,673 | — | |||||||||||
Global Equities(3) | 25,325 | — | 25,325 | — | |||||||||||
Domestic Fixed Income(4) | 163,750 | 71,185 | 92,565 | — | |||||||||||
International Fixed Income(5) | 2,762 | 1,318 | 1,444 | — | |||||||||||
Global Fixed Income(6) | 88,084 | — | 88,084 | — | |||||||||||
Hedge Fund Investments | 42,027 | — | — | 42,027 | |||||||||||
Real Estate | 2,723 | — | — | 2,723 | |||||||||||
Cash and Cash Equivalents | 22,694 | — | 22,694 | — | |||||||||||
Total Retirement Plan Investments | 852,500 | 345,929 | 461,821 | 44,750 | |||||||||||
401(h) Investments | (49,453 | ) | (20,141 | ) | (26,706 | ) | (2,606 | ) | |||||||
Total Retirement Plan Investments (excluding 401(h) Investments) | $ | 803,047 | $ | 325,788 | $ | 435,115 | $ | 42,144 | |||||||
Miscellaneous Accruals, Interest Receivables, and Non-Interest Cash | (3,740 | ) | |||||||||||||
Total Retirement Plan Assets | $ | 799,307 |
(1) | Domestic Equities include mostly collective trust funds, common stock, and exchange traded funds. |
(2) | International Equities include mostly collective trust funds and common stock. |
(3) | Global Equities are comprised of a collective trust fund. |
(4) | Domestic Fixed Income securities include mostly collective trust funds, corporate/government bonds and mortgages, and exchange traded funds. |
(5) | International Fixed Income securities include mostly collective trust funds and exchange traded funds. |
(6) | Global Fixed Income securities are comprised of a collective trust fund. |
Total Fair Value Amounts at September 30, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||||
Other Post-Retirement Benefit Assets held in VEBA Trusts | |||||||||||||||
Collective Trust Funds — Domestic Equities | $ | 148,219 | $ | — | $ | 148,219 | $ | — | |||||||
Collective Trust Funds — International Equities | 54,881 | — | 54,881 | — | |||||||||||
Exchange Traded Funds — Fixed Income | 236,513 | 236,513 | — | — | |||||||||||
Cash Held in Collective Trust Funds | 6,412 | — | 6,412 | — | |||||||||||
Total VEBA Trust Investments | 446,025 | 236,513 | 209,512 | — | |||||||||||
401(h) Investments | 54,921 | 14,105 | 37,907 | 2,909 | |||||||||||
Total Investments (including 401(h) Investments) | $ | 500,946 | $ | 250,618 | $ | 247,419 | $ | 2,909 | |||||||
Miscellaneous Accruals (Including Current and Deferred Taxes, Claims Incurred But Not Reported, Administrative) | (3,345 | ) | |||||||||||||
Total Other Post-Retirement Benefit Assets | $ | 497,601 |
Total Fair Value Amounts at September 30, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||
Other Post-Retirement Benefit Assets held in VEBA Trusts | |||||||||||||||
Collective Trust Funds — Domestic Equities | $ | 205,623 | $ | — | $ | 205,623 | $ | — | |||||||
Collective Trust Funds — International Equities | 87,613 | — | 87,613 | — | |||||||||||
Exchange Traded Funds — Fixed Income | 122,558 | 122,558 | — | — | |||||||||||
Real Estate | 55 | — | — | 55 | |||||||||||
Cash Held in Collective Trust Funds | 11,678 | — | 11,678 | — | |||||||||||
Total VEBA Trust Investments | 427,527 | 122,558 | 304,914 | 55 | |||||||||||
401(h) Investments | 49,453 | 20,141 | 26,706 | 2,606 | |||||||||||
Total Investments (including 401(h) Investments) | $ | 476,980 | $ | 142,699 | $ | 331,620 | $ | 2,661 | |||||||
Miscellaneous Accruals (Including Current and Deferred Taxes, Claims Incurred But Not Reported, Administrative) | (4,588 | ) | |||||||||||||
Total Other Post-Retirement Benefit Assets | $ | 472,392 |
Retirement Plan Level 3 Assets (Thousands) | ||||||||||||||||
Hedge Funds | Real Estate | Excluding 401(h) Investments | Total | |||||||||||||
Balance at September 30, 2012 | $ | 39,956 | $ | 6,170 | $ | (2,680 | ) | $ | 43,446 | |||||||
Realized Gains/(Losses) | — | (73 | ) | 4 | (69 | ) | ||||||||||
Unrealized Gains/(Losses) | 2,071 | 515 | (156 | ) | 2,430 | |||||||||||
Purchases | — | 188 | (11 | ) | 177 | |||||||||||
Sales | — | (4,077 | ) | 237 | (3,840 | ) | ||||||||||
Balance at September 30, 2013 | 42,027 | 2,723 | (2,606 | ) | 42,144 | |||||||||||
Realized Gains/(Losses) | — | 62 | (4 | ) | 58 | |||||||||||
Unrealized Gains/(Losses) | 3,186 | (10 | ) | (239 | ) | 2,937 | ||||||||||
Purchases | — | 1,111 | (65 | ) | 1,046 | |||||||||||
Sales | — | (94 | ) | 5 | (89 | ) | ||||||||||
Balance at September 30, 2014 | $ | 45,213 | $ | 3,792 | $ | (2,909 | ) | $ | 46,096 |
Other Post-Retirement Benefit Level 3 Assets (Thousands) | |||||||||||
VEBA Trust Investments | Including 401(h) Investments | Other Post-Retirement Benefit Investments | |||||||||
Real Estate | |||||||||||
Balance at September 30, 2012 | $ | 1,305 | $ | 2,680 | $ | 3,985 | |||||
Realized Gains/(Losses) | 940 | (4 | ) | 936 | |||||||
Unrealized Gains/(Losses) | 385 | 156 | 541 | ||||||||
Purchases | — | 11 | 11 | ||||||||
Sales | (2,575 | ) | (237 | ) | (2,812 | ) | |||||
Balance at September 30, 2013 | 55 | 2,606 | 2,661 | ||||||||
Realized Gains/(Losses) | (40 | ) | 4 | (36 | ) | ||||||
Unrealized Gains/(Losses) | — | 239 | 239 | ||||||||
Purchases | — | 65 | 65 | ||||||||
Sales | (15 | ) | (5 | ) | (20 | ) | |||||
Balance at September 30, 2014 | $ | — | $ | 2,909 | $ | 2,909 |
|
|
Year Ended September 30, 2014 | |||||||||||||||||||||||||||||||||||
Exploration and Production | Pipeline and Storage | Gathering | Utility | Energy Marketing | Total Reportable Segments | All Other | Corporate and Intersegment Eliminations | Total Consolidated | |||||||||||||||||||||||||||
(Thousands) | |||||||||||||||||||||||||||||||||||
Revenue from External Customers(1) | $ | 804,096 | $ | 200,664 | $ | 673 | $ | 831,156 | $ | 271,993 | $ | 2,108,582 | $ | 3,532 | $ | 967 | $ | 2,113,081 | |||||||||||||||||
Intersegment Revenues | $ | — | $ | 83,744 | $ | 69,937 | $ | 18,462 | $ | 1,159 | $ | 173,302 | $ | — | $ | (173,302 | ) | $ | — | ||||||||||||||||
Interest Income | $ | 1,909 | $ | 284 | $ | 120 | $ | 3,010 | $ | 173 | $ | 5,496 | $ | 106 | $ | (1,432 | ) | $ | 4,170 | ||||||||||||||||
Interest Expense | $ | 42,232 | $ | 26,428 | $ | 1,726 | $ | 27,693 | $ | 31 | $ | 98,110 | $ | 6 | $ | (3,839 | ) | $ | 94,277 | ||||||||||||||||
Depreciation, Depletion and Amortization | $ | 296,210 | $ | 36,642 | $ | 6,116 | $ | 43,594 | $ | 197 | $ | 382,759 | $ | 344 | $ | 678 | $ | 383,781 | |||||||||||||||||
Income Tax Expense (Benefit) | $ | 81,370 | $ | 47,100 | $ | 23,636 | $ | 33,918 | $ | 3,761 | $ | 189,785 | $ | 822 | $ | (993 | ) | $ | 189,614 | ||||||||||||||||
Segment Profit: Net Income (Loss) | $ | 121,569 | $ | 77,559 | $ | 32,709 | $ | 64,059 | $ | 6,631 | $ | 302,527 | $ | 1,160 | $ | (4,274 | ) | $ | 299,413 | ||||||||||||||||
Expenditures for Additions to Long-Lived Assets | $ | 602,705 | $ | 139,821 | $ | 137,799 | $ | 88,810 | $ | 264 | $ | 969,399 | $ | 274 | $ | 234 | $ | 969,907 | |||||||||||||||||
At September 30, 2014 | |||||||||||||||||||||||||||||||||||
(Thousands) | |||||||||||||||||||||||||||||||||||
Segment Assets | $ | 3,100,514 | $ | 1,367,181 | $ | 326,662 | $ | 1,862,850 | $ | 76,238 | $ | 6,733,445 | $ | 86,460 | $ | (80,308 | ) | $ | 6,739,597 |
Year Ended September 30, 2013 | |||||||||||||||||||||||||||||||||||
Exploration and Production | Pipeline and Storage | Gathering | Utility | Energy Marketing | Total Reportable Segments | All Other | Corporate and Intersegment Elimination | Total Consolidated | |||||||||||||||||||||||||||
(Thousands) | |||||||||||||||||||||||||||||||||||
Revenue from External Customers(1) | $ | 702,937 | $ | 178,184 | $ | 1,324 | $ | 730,319 | $ | 211,990 | $ | 1,824,754 | $ | 3,910 | $ | 887 | $ | 1,829,551 | |||||||||||||||||
Intersegment Revenues | $ | — | $ | 89,424 | $ | 33,457 | $ | 16,020 | $ | 1,384 | $ | 140,285 | $ | — | $ | (140,285 | ) | $ | — | ||||||||||||||||
Interest Income | $ | 1,501 | $ | 193 | $ | 55 | $ | 3,417 | $ | 169 | $ | 5,335 | $ | 115 | $ | (1,115 | ) | $ | 4,335 | ||||||||||||||||
Interest Expense | $ | 39,745 | $ | 26,248 | $ | 2,283 | $ | 29,076 | $ | 36 | $ | 97,388 | $ | 2 | $ | (3,279 | ) | $ | 94,111 | ||||||||||||||||
Depreciation, Depletion and Amortization | $ | 243,431 | $ | 35,156 | $ | 3,945 | $ | 42,729 | $ | 123 | $ | 325,384 | $ | 577 | $ | 799 | $ | 326,760 | |||||||||||||||||
Income Tax Expense (Benefit) | $ | 95,317 | $ | 38,626 | $ | 10,287 | $ | 31,065 | $ | 2,450 | $ | 177,745 | $ | 529 | $ | (5,516 | ) | $ | 172,758 | ||||||||||||||||
Segment Profit: Net Income (Loss) | $ | 115,391 | $ | 63,245 | $ | 13,321 | $ | 65,686 | $ | 4,589 | $ | 262,232 | $ | 894 | $ | (3,125 | ) | $ | 260,001 | ||||||||||||||||
Expenditures for Additions to Long-Lived Assets | $ | 533,129 | $ | 56,144 | $ | 54,792 | $ | 71,970 | $ | 595 | $ | 716,630 | $ | 307 | $ | 160 | $ | 717,097 | |||||||||||||||||
At September 30, 2013 | |||||||||||||||||||||||||||||||||||
(Thousands) | |||||||||||||||||||||||||||||||||||
Segment Assets | $ | 2,746,233 | $ | 1,246,027 | $ | 203,323 | $ | 1,870,587 | $ | 67,267 | $ | 6,133,437 | $ | 95,793 | $ | (10,883 | ) | $ | 6,218,347 |
Year Ended September 30, 2012 | |||||||||||||||||||||||||||||||||||
Exploration and Production | Pipeline and Storage | Gathering | Utility | Energy Marketing | Total Reportable Segments | All Other | Corporate and Intersegment Eliminations | Total Consolidated | |||||||||||||||||||||||||||
(Thousands) | |||||||||||||||||||||||||||||||||||
Revenue from External Customers(1) | $ | 558,180 | $ | 172,312 | $ | 704 | $ | 704,518 | $ | 186,579 | $ | 1,622,293 | $ | 3,603 | $ | 957 | $ | 1,626,853 | |||||||||||||||||
Intersegment Revenues | $ | — | $ | 86,963 | $ | 16,771 | $ | 14,604 | $ | 1,425 | $ | 119,763 | $ | — | $ | (119,763 | ) | $ | — | ||||||||||||||||
Interest Income | $ | 1,493 | $ | 199 | $ | 1 | $ | 2,765 | $ | 188 | $ | 4,646 | $ | 174 | $ | (1,131 | ) | $ | 3,689 | ||||||||||||||||
Interest Expense | $ | 29,243 | $ | 25,603 | $ | 1,444 | $ | 33,181 | $ | 41 | $ | 89,512 | $ | 294 | $ | (3,566 | ) | $ | 86,240 | ||||||||||||||||
Depreciation, Depletion and Amortization | $ | 187,624 | $ | 38,182 | $ | 1,691 | $ | 42,757 | $ | 90 | $ | 270,344 | $ | 400 | $ | 786 | $ | 271,530 | |||||||||||||||||
Income Tax Expense (Benefit) | $ | 79,050 | $ | 37,655 | $ | 4,825 | $ | 29,110 | $ | 1,933 | $ | 152,573 | $ | (490 | ) | $ | (1,529 | ) | $ | 150,554 | |||||||||||||||
Segment Profit: Net Income (Loss) | $ | 96,498 | $ | 60,527 | $ | 6,855 | $ | 58,590 | $ | 4,169 | $ | 226,639 | $ | 13 | $ | (6,575 | ) | $ | 220,077 | ||||||||||||||||
Expenditures for Additions to Long-Lived Assets | $ | 693,810 | $ | 144,167 | $ | 80,012 | $ | 58,284 | $ | 770 | $ | 977,043 | $ | 5 | $ | 346 | $ | 977,394 | |||||||||||||||||
At September 30, 2012 | |||||||||||||||||||||||||||||||||||
(Thousands) | |||||||||||||||||||||||||||||||||||
Segment Assets | $ | 2,367,485 | $ | 1,243,862 | $ | 116,756 | $ | 2,070,413 | $ | 61,968 | $ | 5,860,484 | $ | 93,178 | $ | (18,520 | ) | $ | 5,935,142 |
(1) | All Revenue from External Customers originated in the United States. |
Geographic Information | At September 30 | ||||||||||
2014 | 2013 | 2012 | |||||||||
(Thousands) | |||||||||||
Long-Lived Assets: | |||||||||||
United States | $ | 6,362,265 | $ | 5,769,670 | $ | 5,579,566 |
|
Quarter Ended | Operating Revenues | Operating Income | Net Income Available for Common Stock | Earnings per Common Share | ||||||||||||||||
Basic | Diluted | |||||||||||||||||||
(Thousands, except per common share amounts) | ||||||||||||||||||||
2014 | ||||||||||||||||||||
9/30/2014 | $ | 366,623 | $ | 102,004 | $ | 57,431 | $ | 0.68 | $ | 0.68 | ||||||||||
6/30/2014 | $ | 440,144 | $ | 127,013 | $ | 64,520 | $ | 0.77 | $ | 0.76 | ||||||||||
3/31/2014 | $ | 756,242 | $ | 180,075 | $ | 95,210 | (1) | $ | 1.14 | $ | 1.12 | |||||||||
12/31/2013 | $ | 550,072 | $ | 160,581 | $ | 82,252 | $ | 0.98 | $ | 0.97 | ||||||||||
2013 | ||||||||||||||||||||
9/30/2013 | $ | 338,863 | $ | 96,636 | $ | 47,842 | (2) | $ | 0.57 | $ | 0.57 | |||||||||
6/30/2013 | $ | 440,008 | $ | 127,004 | $ | 58,495 | $ | 0.70 | $ | 0.69 | ||||||||||
3/31/2013 | $ | 597,826 | $ | 162,991 | $ | 85,720 | $ | 1.03 | $ | 1.02 | ||||||||||
12/31/2012 | $ | 452,854 | $ | 131,207 | $ | 67,944 | $ | 0.81 | $ | 0.81 |
(1) | Includes $3.6 million of income associated with a death benefit gain on life insurance proceeds recorded in the Corporate category. |
(2) | Includes a $4.7 million refund provision recorded in the Utility segment related to various issues raised in Distribution Corporation’s rate proceeding in New York. |
|
At September 30 | |||||||
2014 | 2013 | ||||||
(Thousands) | |||||||
Proved Properties(1) | $ | 3,941,143 | $ | 3,393,612 | |||
Unproved Properties | 141,719 | 106,085 | |||||
4,082,862 | 3,499,697 | ||||||
Less — Accumulated Depreciation, Depletion and Amortization | 1,211,610 | 919,989 | |||||
$ | 2,871,252 | $ | 2,579,708 |
(1) | Includes asset retirement costs of $75.7 million and $80.6 million at September 30, 2014 and 2013, respectively. |
Total as of September 30, 2014 | Year Costs Incurred | ||||||||||||||||||
2014 | 2013 | 2012 | Prior | ||||||||||||||||
(Thousands) | |||||||||||||||||||
Acquisition Costs | $ | 61,712 | $ | 7,057 | $ | 905 | $ | 5,585 | $ | 48,165 | |||||||||
Development Costs | 42,362 | 39,339 | 677 | 1,405 | 941 | ||||||||||||||
Exploration Costs | 36,882 | 36,882 | — | — | — | ||||||||||||||
Capitalized Interest | 763 | 763 | — | — | — | ||||||||||||||
$ | 141,719 | $ | 84,041 | $ | 1,582 | $ | 6,990 | $ | 49,106 |
Year Ended September 30 | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Thousands) | |||||||||||
United States | |||||||||||
Property Acquisition Costs: | |||||||||||
Proved | $ | 18,213 | $ | 7,575 | $ | 13,095 | |||||
Unproved | 7,884 | 9,274 | 13,867 | ||||||||
Exploration Costs(1) | 71,850 | 49,483 | 84,624 | ||||||||
Development Costs(2) | 490,164 | 460,554 | 576,397 | ||||||||
Asset Retirement Costs | (4,946 | ) | 37,546 | 10,344 | |||||||
$ | 583,165 | $ | 564,432 | $ | 698,327 |
(1) | Amounts for 2014, 2013 and 2012 include capitalized interest of $0.7 million, $0.4 million and $1.0 million, respectively. |
(2) | Amounts for 2014, 2013 and 2012 include capitalized interest of $0.7 million, $0.7 million and $2.0 million, respectively. |
Year Ended September 30 | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Thousands, except per Mcfe amounts) | |||||||||||
United States | |||||||||||
Operating Revenues: | |||||||||||
Natural Gas (includes revenues from sales to affiliates of $1 for all years presented and transfers to operations of $2,145, $612 and $0, respectively) | $ | 515,080 | $ | 371,311 | $ | 181,544 | |||||
Oil, Condensate and Other Liquids | 298,179 | 291,762 | 307,018 | ||||||||
Total Operating Revenues(1) | 813,259 | 663,073 | 488,562 | ||||||||
Production/Lifting Costs | 165,534 | 119,243 | 83,361 | ||||||||
Franchise/Ad Valorem Taxes | 20,765 | 17,200 | 23,620 | ||||||||
Accretion Expense | 6,192 | 3,929 | 3,084 | ||||||||
Depreciation, Depletion and Amortization ($1.82, $1.98 and $2.19 per Mcfe of production) | 291,651 | 238,467 | 182,759 | ||||||||
Income Tax Expense | 140,484 | 120,431 | 81,904 | ||||||||
Results of Operations for Producing Activities (excluding corporate overheads and interest charges) | $ | 188,633 | $ | 163,803 | $ | 113,834 |
(1) | Exclusive of hedging gains and losses. See further discussion in Note G — Financial Instruments. |
Gas MMcf | ||||||||
U. S. | ||||||||
Appalachian Region | West Coast Region | Total Company | ||||||
Proved Developed and Undeveloped Reserves: | ||||||||
September 30, 2011 | 606,606 | 68,316 | 674,922 | |||||
Extensions and Discoveries | 435,460 | (1) | 638 | 436,098 | ||||
Revisions of Previous Estimates | (53,992 | ) | (2,463 | ) | (56,455 | ) | ||
Production | (62,663 | ) | (2) | (3,468 | ) | (66,131 | ) | |
September 30, 2012 | 925,411 | 63,023 | 988,434 | |||||
Extensions and Discoveries | 360,922 | (1) | 702 | 361,624 | ||||
Revisions of Previous Estimates | 53,038 | 112 | 53,150 | |||||
Production | (100,633 | ) | (2) | (3,060 | ) | (103,693 | ) | |
September 30, 2013 | 1,238,738 | 60,777 | 1,299,515 | |||||
Extensions and Discoveries | 446,821 | (1) | — | 446,821 | ||||
Revisions of Previous Estimates | 43,690 | 1,358 | 45,048 | |||||
Production | (139,097 | ) | (2) | (3,210 | ) | (142,307 | ) | |
Purchases of Minerals in Place | 33,986 | — | 33,986 | |||||
Sale of Minerals in Place | (76 | ) | (103 | ) | (179 | ) | ||
September 30, 2014 | 1,624,062 | 58,822 | 1,682,884 | |||||
Proved Developed Reserves: | ||||||||
September 30, 2011 | 350,458 | 63,965 | 414,423 | |||||
September 30, 2012 | 544,560 | 59,923 | 604,483 | |||||
September 30, 2013 | 807,055 | 59,862 | 866,917 | |||||
September 30, 2014 | 1,119,901 | 57,907 | 1,177,808 | |||||
Proved Undeveloped Reserves: | ||||||||
September 30, 2011 | 256,148 | 4,351 | 260,499 | |||||
September 30, 2012 | 380,851 | 3,100 | 383,951 | |||||
September 30, 2013 | 431,683 | 915 | 432,598 | |||||
September 30, 2014 | 504,161 | 915 | 505,076 |
(1) | Extensions and discoveries include 435 Bcf (during 2012), 355 Bcf (during 2013) and 442 Bcf (during 2014), of Marcellus Shale gas in the Appalachian Region. |
(2) | Production includes 55,812 MMcf (during 2012), 93,999 MMcf (during 2013) and 131,590 MMcf (during 2014), from Marcellus Shale fields (which exceed 15% of total reserves). |
Oil Mbbl | ||||||||
U. S. | ||||||||
Appalachian Region | West Coast Region | Total Company | ||||||
Proved Developed and Undeveloped Reserves: | ||||||||
September 30, 2011 | 279 | 43,066 | 43,345 | |||||
Extensions and Discoveries | 28 | 1,229 | 1,257 | |||||
Revisions of Previous Estimates | 35 | 1,095 | 1,130 | |||||
Production | (36 | ) | (2,834 | ) | (2,870 | ) | ||
September 30, 2012 | 306 | 42,556 | 42,862 | |||||
Extensions and Discoveries | — | 2,443 | 2,443 | |||||
Revisions of Previous Estimates | 5 | (881 | ) | (876 | ) | |||
Production | (28 | ) | (2,803 | ) | (2,831 | ) | ||
September 30, 2013 | 283 | 41,315 | 41,598 | |||||
Extensions and Discoveries | 18 | 1,521 | 1,539 | |||||
Revisions of Previous Estimates | (17 | ) | (1,677 | ) | (1,694 | ) | ||
Production | (31 | ) | (3,005 | ) | (3,036 | ) | ||
Purchases of Minerals in Place | — | 83 | 83 | |||||
Sales of Minerals in Place | — | (13 | ) | (13 | ) | |||
September 30, 2014 | 253 | 38,224 | 38,477 | |||||
Proved Developed Reserves: | ||||||||
September 30, 2011 | 274 | 37,306 | 37,580 | |||||
September 30, 2012 | 306 | 38,138 | 38,444 | |||||
September 30, 2013 | 283 | 38,082 | 38,365 | |||||
September 30, 2014 | 253 | 37,002 | 37,255 | |||||
Proved Undeveloped Reserves: | ||||||||
September 30, 2011 | 5 | 5,760 | 5,765 | |||||
September 30, 2012 | — | 4,418 | 4,418 | |||||
September 30, 2013 | — | 3,233 | 3,233 | |||||
September 30, 2014 | — | 1,222 | 1,222 |
Year Ended September 30 | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Thousands) | |||||||||||
United States | |||||||||||
Future Cash Inflows | $ | 10,001,545 | $ | 8,943,942 | $ | 7,373,129 | |||||
Less: | |||||||||||
Future Production Costs | 2,795,657 | 2,334,393 | 1,919,530 | ||||||||
Future Development Costs | 790,033 | 749,876 | 619,573 | ||||||||
Future Income Tax Expense at Applicable Statutory Rate | 2,434,370 | 2,113,101 | 1,812,055 | ||||||||
Future Net Cash Flows | 3,981,485 | 3,746,572 | 3,021,971 | ||||||||
Less: | |||||||||||
10% Annual Discount for Estimated Timing of Cash Flows | 1,914,607 | 1,780,206 | 1,552,180 | ||||||||
Standardized Measure of Discounted Future Net Cash Flows | $ | 2,066,878 | $ | 1,966,366 | $ | 1,469,791 |
Year Ended September 30 | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Thousands) | |||||||||||
United States | |||||||||||
Standardized Measure of Discounted Future | |||||||||||
Net Cash Flows at Beginning of Year | $ | 1,966,366 | $ | 1,469,791 | $ | 1,524,157 | |||||
Sales, Net of Production Costs | (626,960 | ) | (526,630 | ) | (381,581 | ) | |||||
Net Changes in Prices, Net of Production Costs | (38,723 | ) | 339,655 | (385,019 | ) | ||||||
Extensions and Discoveries | 381,008 | 390,255 | 224,474 | ||||||||
Changes in Estimated Future Development Costs | 68,731 | 6,117 | 29,627 | ||||||||
Purchases of Minerals in Place | 34,705 | — | — | ||||||||
Sales of Minerals in Place | (691 | ) | — | — | |||||||
Previously Estimated Development Costs Incurred | 179,502 | 148,535 | 252,967 | ||||||||
Net Change in Income Taxes at Applicable Statutory Rate | (231,807 | ) | (130,574 | ) | (19,280 | ) | |||||
Revisions of Previous Quantity Estimates | 55,184 | 34,864 | 103,472 | ||||||||
Accretion of Discount and Other | 279,563 | 234,353 | 120,974 | ||||||||
Standardized Measure of Discounted Future Net Cash Flows at End of Year | $ | 2,066,878 | $ | 1,966,366 | $ | 1,469,791 |
|
Description | Balance at Beginning of Period | Additions Charged to Costs and Expenses | Additions Charged to Other Accounts(1) | Deductions (2) | Balance at End of Period | ||||||||||||||
Year Ended September 30, 2014 | |||||||||||||||||||
Allowance for Uncollectible Accounts | $ | 27,144 | $ | 10,856 | $ | 3,241 | $ | 9,430 | $ | 31,811 | |||||||||
Year Ended September 30, 2013 | |||||||||||||||||||
Allowance for Uncollectible Accounts | $ | 30,317 | $ | 5,568 | $ | 2,390 | $ | 11,131 | $ | 27,144 | |||||||||
Year Ended September 30, 2012 | |||||||||||||||||||
Allowance for Uncollectible Accounts | $ | 31,039 | $ | 9,183 | $ | 1,946 | $ | 11,851 | $ | 30,317 |
(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. |
|
As of September 30 | |||||||
2014 | 2013 | ||||||
(Thousands) | |||||||
Exploration and Production | $ | 3,996,834 | $ | 3,437,767 | |||
Pipeline and Storage | 1,609,593 | 1,547,192 | |||||
Gathering | 239,507 | 130,082 | |||||
Utility | 1,833,104 | 1,778,140 | |||||
Energy Marketing | 3,366 | 3,460 | |||||
All Other and Corporate | 108,986 | 109,690 | |||||
$ | 7,791,390 | $ | 7,006,331 |
Year Ended September 30 | |||||||||||
2014 | 2013 | 2012 | |||||||||
Exploration and Production, per Mcfe(1) | $ | 1.85 | $ | 2.02 | $ | 2.25 | |||||
Pipeline and Storage | 2.4 | % | 2.5 | % | 2.9 | % | |||||
Gathering | 3.3 | % | 3.7 | % | 3.3 | % | |||||
Utility | 2.6 | % | 2.6 | % | 2.6 | % | |||||
Energy Marketing | 5.8 | % | 3.9 | % | 3.6 | % | |||||
All Other and Corporate | 0.9 | % | 1.3 | % | 1.1 | % |
(1) | Amounts include depletion of oil and gas producing properties as well as depreciation of fixed assets. As disclosed in Note M — Supplementary Information for Oil and Gas Producing Properties, depletion of oil and gas producing properties amounted to $1.82, $1.98 and $2.19 per Mcfe of production in 2014, 2013 and 2012, respectively. |
Gains and Losses on Derivative Financial Instruments | Gains and Losses on Securities Available for Sale | Funded Status of the Pension and Other Post-Retirement Benefit Plans | Total | ||||||||||||
Year Ended September 30, 2014 | |||||||||||||||
Balance at October 1, 2013 | $ | 30,722 | $ | 6,337 | $ | (56,293 | ) | $ | (19,234 | ) | |||||
Other Comprehensive Gains and Losses Before Reclassifications | 4,805 | 2,465 | (5,560 | ) | 1,710 | ||||||||||
Amounts Reclassified From Other Comprehensive Loss | 8,132 | (420 | ) | 5,833 | 13,545 | ||||||||||
Balance at September 30, 2014 | $ | 43,659 | $ | 8,382 | $ | (56,020 | ) | $ | (3,979 | ) |
Details About Accumulated Other Comprehensive Loss Components | Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss for the Year Ended September 30, 2014 | Affected Line Item in the Statement Where Net Income is Presented | ||||
Gains (Losses) on Derivative Financial Instrument Cash Flow Hedges: | ||||||
Commodity Contracts | ($14,880 | ) | Operating Revenues | |||
Commodity Contracts | (2,767 | ) | Purchased Gas | |||
Gains (Losses) on Securities Available for Sale | 662 | Other Income | ||||
Amortization of Prior Year Funded Status of the Pension and Other Post-Retirement Benefit Plans: | ||||||
Prior Service Credit | 131 | (1) | ||||
Net Actuarial Loss | (9,334 | ) | (1) | |||
(26,188 | ) | Total Before Income Tax | ||||
12,643 | Income Tax Expense | |||||
($13,545 | ) | Net of Tax |
(1) | These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost. Refer to Note H — Retirement Plan and Other Post-Retirement Benefits for additional details. |
Year Ended September 30 | |||||||
2014 | 2013 | ||||||
(Thousands) | |||||||
Prepayments | $ | 10,079 | $ | 10,605 | |||
Prepaid Property and Other Taxes | 13,743 | 13,079 | |||||
Federal Income Taxes Receivable | 8,211 | 1,122 | |||||
State Income Taxes Receivable | — | 3,275 | |||||
Fair Values of Firm Commitments | — | 1,829 | |||||
Regulatory Assets | 22,719 | 26,995 | |||||
$ | 54,752 | $ | 56,905 |
Year Ended September 30 | |||||||
2014 | 2013 | ||||||
(Thousands) | |||||||
Accrued Capital Expenditures | $ | 80,348 | $ | 41,100 | |||
Regulatory Liabilities | 18,072 | 20,013 | |||||
State Income Taxes Payable | 5,798 | — | |||||
Other | 32,454 | 22,833 | |||||
$ | 136,672 | $ | 83,946 |
|
As of September 30 | |||||||
2014 | 2013 | ||||||
(Thousands) | |||||||
Exploration and Production | $ | 3,996,834 | $ | 3,437,767 | |||
Pipeline and Storage | 1,609,593 | 1,547,192 | |||||
Gathering | 239,507 | 130,082 | |||||
Utility | 1,833,104 | 1,778,140 | |||||
Energy Marketing | 3,366 | 3,460 | |||||
All Other and Corporate | 108,986 | 109,690 | |||||
$ | 7,791,390 | $ | 7,006,331 |
Year Ended September 30 | |||||||||||
2014 | 2013 | 2012 | |||||||||
Exploration and Production, per Mcfe(1) | $ | 1.85 | $ | 2.02 | $ | 2.25 | |||||
Pipeline and Storage | 2.4 | % | 2.5 | % | 2.9 | % | |||||
Gathering | 3.3 | % | 3.7 | % | 3.3 | % | |||||
Utility | 2.6 | % | 2.6 | % | 2.6 | % | |||||
Energy Marketing | 5.8 | % | 3.9 | % | 3.6 | % | |||||
All Other and Corporate | 0.9 | % | 1.3 | % | 1.1 | % |
(1) | Amounts include depletion of oil and gas producing properties as well as depreciation of fixed assets. As disclosed in Note M — Supplementary Information for Oil and Gas Producing Properties, depletion of oil and gas producing properties amounted to $1.82, $1.98 and $2.19 per Mcfe of production in 2014, 2013 and 2012, respectively. |
Gains and Losses on Derivative Financial Instruments | Gains and Losses on Securities Available for Sale | Funded Status of the Pension and Other Post-Retirement Benefit Plans | Total | ||||||||||||
Year Ended September 30, 2014 | |||||||||||||||
Balance at October 1, 2013 | $ | 30,722 | $ | 6,337 | $ | (56,293 | ) | $ | (19,234 | ) | |||||
Other Comprehensive Gains and Losses Before Reclassifications | 4,805 | 2,465 | (5,560 | ) | 1,710 | ||||||||||
Amounts Reclassified From Other Comprehensive Loss | 8,132 | (420 | ) | 5,833 | 13,545 | ||||||||||
Balance at September 30, 2014 | $ | 43,659 | $ | 8,382 | $ | (56,020 | ) | $ | (3,979 | ) |
Details About Accumulated Other Comprehensive Loss Components | Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss for the Year Ended September 30, 2014 | Affected Line Item in the Statement Where Net Income is Presented | ||||
Gains (Losses) on Derivative Financial Instrument Cash Flow Hedges: | ||||||
Commodity Contracts | ($14,880 | ) | Operating Revenues | |||
Commodity Contracts | (2,767 | ) | Purchased Gas | |||
Gains (Losses) on Securities Available for Sale | 662 | Other Income | ||||
Amortization of Prior Year Funded Status of the Pension and Other Post-Retirement Benefit Plans: | ||||||
Prior Service Credit | 131 | (1) | ||||
Net Actuarial Loss | (9,334 | ) | (1) | |||
(26,188 | ) | Total Before Income Tax | ||||
12,643 | Income Tax Expense | |||||
($13,545 | ) | Net of Tax |
(1) | These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost. Refer to Note H — Retirement Plan and Other Post-Retirement Benefits for additional details. |
Year Ended September 30 | |||||||
2014 | 2013 | ||||||
(Thousands) | |||||||
Prepayments | $ | 10,079 | $ | 10,605 | |||
Prepaid Property and Other Taxes | 13,743 | 13,079 | |||||
Federal Income Taxes Receivable | 8,211 | 1,122 | |||||
State Income Taxes Receivable | — | 3,275 | |||||
Fair Values of Firm Commitments | — | 1,829 | |||||
Regulatory Assets | 22,719 | 26,995 | |||||
$ | 54,752 | $ | 56,905 |
Year Ended September 30 | |||||||
2014 | 2013 | ||||||
(Thousands) | |||||||
Accrued Capital Expenditures | $ | 80,348 | $ | 41,100 | |||
Regulatory Liabilities | 18,072 | 20,013 | |||||
State Income Taxes Payable | 5,798 | — | |||||
Other | 32,454 | 22,833 | |||||
$ | 136,672 | $ | 83,946 |
|
Year Ended September 30 | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Thousands) | |||||||||||
Balance at Beginning of Year | $ | 119,511 | $ | 119,246 | $ | 75,731 | |||||
Liabilities Incurred and Revisions of Estimates | (2,496 | ) | (4,796 | ) | 41,653 | ||||||
Liabilities Settled | (6,955 | ) | (1,744 | ) | (2,997 | ) | |||||
Accretion Expense | 7,653 | 6,805 | 4,859 | ||||||||
Balance at End of Year | $ | 117,713 | $ | 119,511 | $ | 119,246 |
|
At September 30 | |||||||
2014 | 2013 | ||||||
(Thousands) | |||||||
Regulatory Assets(1): | |||||||
Pension Costs(2) (Note H) | $ | 164,804 | $ | 187,181 | |||
Post-Retirement Benefit Costs(2) (Note H) | 17,128 | 29,838 | |||||
Recoverable Future Taxes (Note D) | 163,485 | 163,355 | |||||
Environmental Site Remediation Costs(2) (Note I) | 25,645 | 18,104 | |||||
NYPSC Assessment(3) | 12,730 | 13,169 | |||||
Asset Retirement Obligations(2) (Note B) | 12,006 | 11,837 | |||||
Unamortized Debt Expense (Note A) | 2,747 | 3,276 | |||||
Other(4) | 14,842 | 19,434 | |||||
Total Regulatory Assets | 413,387 | 446,194 | |||||
Less: Amounts Included in Other Current Assets | (22,719 | ) | (26,995 | ) | |||
Total Long-Term Regulatory Assets | $ | 390,668 | $ | 419,199 |
At September 30 | |||||||
2014 | 2013 | ||||||
(Thousands) | |||||||
Regulatory Liabilities: | |||||||
Cost of Removal Regulatory Liability | $ | 173,199 | $ | 157,622 | |||
Taxes Refundable to Customers (Note D) | 91,736 | 85,655 | |||||
Post-Retirement Benefit Costs (Note H) | 53,650 | 37,923 | |||||
Amounts Payable to Customers (See Regulatory Mechanisms in Note A) | 33,745 | 12,828 | |||||
Off-System Sales and Capacity Release Credits(5) | 12,805 | 10,228 | |||||
Other(6) | 32,769 | 33,411 | |||||
Total Regulatory Liabilities | 397,904 | 337,667 | |||||
Less: Amounts included in Current and Accrued Liabilities | (51,817 | ) | (32,841 | ) | |||
Total Long-Term Regulatory Liabilities | $ | 346,087 | $ | 304,826 |
(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) | Amounts are included in Other Current Assets on the Consolidated Balance Sheets at September 30, 2014 and September 30, 2013 since such amounts are expected to be recovered from ratepayers in the next 12 months. |
(4) | $9,989 and $13,826 are included in Other Current Assets on the Consolidated Balance Sheets at September 30, 2014 and 2013, respectively, since such amounts are expected to be recovered from ratepayers in the next 12 months. $4,853 and $5,608 are included in Other Regulatory Assets on the Consolidated Balance Sheets at September 30, 2014 and 2013, respectively. |
(5) | Amounts are included in Other Accruals and Current Liabilities on the Consolidated Balance Sheets at September 30, 2014 and September 30, 2013 since such amounts are expected to be passed back to ratepayers in the next 12 months. |
(6) | $5,267 and $9,785 are included in Other Accruals and Current Liabilities on the Consolidated Balance Sheets at September 30, 2014 and 2013, respectively, since such amounts are expected to be recovered from ratepayers in the next 12 months. $27,502 and $23,626 are included in Other Regulatory Liabilities on the Consolidated Balance Sheets at September 30, 2014 and 2013, respectively. |
|
Year Ended September 30 | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Thousands) | |||||||||||
Current Income Taxes — | |||||||||||
Federal | $ | 34,579 | $ | (632 | ) | $ | (8 | ) | |||
State | 12,620 | 5,503 | 6,412 | ||||||||
Deferred Income Taxes — | |||||||||||
Federal | 116,143 | 130,318 | 111,176 | ||||||||
State | 26,272 | 37,569 | 32,974 | ||||||||
189,614 | 172,758 | 150,554 | |||||||||
Deferred Investment Tax Credit | (434 | ) | (426 | ) | (581 | ) | |||||
Total Income Taxes | $ | 189,180 | $ | 172,332 | $ | 149,973 | |||||
Presented as Follows: | |||||||||||
Other Income | $ | (434 | ) | $ | (426 | ) | $ | (581 | ) | ||
Income Tax Expense | 189,614 | 172,758 | 150,554 | ||||||||
Total Income Taxes | $ | 189,180 | $ | 172,332 | $ | 149,973 |
Year Ended September 30 | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Thousands) | |||||||||||
U.S. Income Before Income Taxes | $ | 488,593 | $ | 432,333 | $ | 370,050 | |||||
Income Tax Expense, Computed at U.S. Federal Statutory Rate of 35% | $ | 171,008 | $ | 151,317 | $ | 129,518 | |||||
Increase (Reduction) in Taxes Resulting from: | |||||||||||
State Income Taxes | 25,280 | 27,997 | 25,601 | ||||||||
Miscellaneous | (7,108 | ) | (6,982 | ) | (5,146 | ) | |||||
Total Income Taxes | $ | 189,180 | $ | 172,332 | $ | 149,973 |
At September 30 | |||||||
2014 | 2013 | ||||||
(Thousands) | |||||||
Deferred Tax Liabilities: | |||||||
Property, Plant and Equipment | $ | 1,614,515 | $ | 1,504,187 | |||
Pension and Other Post-Retirement Benefit Costs | 113,248 | 124,021 | |||||
Other | 87,935 | 75,419 | |||||
Total Deferred Tax Liabilities | 1,815,698 | 1,703,627 | |||||
Deferred Tax Assets: | |||||||
Pension and Other Post-Retirement Benefit Costs | (124,452 | ) | (130,256 | ) | |||
Tax Loss and Credit Carryforwards | (171,423 | ) | (215,262 | ) | |||
Other | (103,863 | ) | (90,461 | ) | |||
Total Deferred Tax Assets | (399,738 | ) | (435,979 | ) | |||
Total Net Deferred Income Taxes | $ | 1,415,960 | $ | 1,267,648 | |||
Presented as Follows: | |||||||
Deferred Tax Liability/(Asset) — Current | $ | (40,323 | ) | $ | (79,359 | ) | |
Deferred Tax Liability — Non-Current | 1,456,283 | 1,347,007 | |||||
Total Net Deferred Income Taxes | $ | 1,415,960 | $ | 1,267,648 |
Year Ended September 30 | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Thousands) | |||||||||||
Balance at Beginning of Year | $ | 2,001 | $ | 11,170 | $ | 7,766 | |||||
Additions for Tax Positions Related to Current Year | — | 700 | 1,600 | ||||||||
Additions for Tax Positions of Prior Years | 2,447 | 164 | 2,751 | ||||||||
Reductions for Tax Positions of Prior Years | (1,301 | ) | (10,033 | ) | (947 | ) | |||||
Balance at End of Year | $ | 3,147 | $ | 2,001 | $ | 11,170 |
|
Common Stock | Paid In Capital | Earnings Reinvested in the Business | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||
Shares | Amount | |||||||||||||||||
(Thousands, except per share amounts) | ||||||||||||||||||
Balance at September 30, 2011 | 82,813 | $ | 82,813 | $ | 650,749 | $ | 1,206,022 | $ | (47,699 | ) | ||||||||
Net Income Available for Common Stock | 220,077 | |||||||||||||||||
Dividends Declared on Common Stock ($1.44 Per Share) | (119,815 | ) | ||||||||||||||||
Other Comprehensive Loss, Net of Tax | (51,321 | ) | ||||||||||||||||
Share-Based Payment Expense(2) | 7,156 | |||||||||||||||||
Common Stock Issued Under Stock and Benefit Plans(1) | 517 | 517 | 11,596 | |||||||||||||||
Balance at September 30, 2012 | 83,330 | 83,330 | 669,501 | 1,306,284 | (99,020 | ) | ||||||||||||
Net Income Available for Common Stock | 260,001 | |||||||||||||||||
Dividends Declared on Common Stock ($1.48 Per Share) | (123,668 | ) | ||||||||||||||||
Other Comprehensive Income, Net of Tax | 79,786 | |||||||||||||||||
Share-Based Payment Expense(2) | 11,537 | |||||||||||||||||
Common Stock Issued Under Stock and Benefit Plans(1) | 332 | 332 | 6,646 | |||||||||||||||
Balance at September 30, 2013 | 83,662 | 83,662 | 687,684 | 1,442,617 | (19,234 | ) | ||||||||||||
Net Income Available for Common Stock | 299,413 | |||||||||||||||||
Dividends Declared on Common Stock ($1.52 Per Share) | (127,669 | ) | ||||||||||||||||
Other Comprehensive Income, Net of Tax | 15,255 | |||||||||||||||||
Share-Based Payment Expense(2) | 10,654 | |||||||||||||||||
Common Stock Issued Under Stock and Benefit Plans(1) | 495 | 495 | 17,806 | |||||||||||||||
Balance at September 30, 2014 | 84,157 | $ | 84,157 | $ | 716,144 | $ | 1,614,361 | (3) | $ | (3,979 | ) |
(1) | Paid in Capital includes tax benefits of $4.6 million, $0.7 million and $1.0 million for September 30, 2014, 2013 and 2012, respectively, related to stock-based compensation. |
(2) | Paid in Capital includes compensation costs associated with stock option, SARs, performance share 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, 2014, $1.5 billion of accumulated earnings was free of such limitations. |
Number of Shares Subject to Option | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
(In thousands) | ||||||||||||
Outstanding at September 30, 2013 | 803,500 | $ | 34.71 | |||||||||
Granted in 2014 | — | $ | — | |||||||||
Exercised in 2014 | (321,500 | ) | $ | 31.71 | ||||||||
Forfeited in 2014 | — | $ | — | |||||||||
Outstanding at September 30, 2014 | 482,000 | $ | 36.71 | 1.80 | $ | 16,039 | ||||||
Option shares exercisable at September 30, 2014 | 482,000 | $ | 36.71 | 1.80 | $ | 16,039 | ||||||
Option shares available for future grant at September 30, 2014(1) | 712,232 |
(1) | Includes shares available for SARs, restricted stock and performance share grants. |
Number of Shares Subject To Option | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
(In thousands) | ||||||||||||
Outstanding at September 30, 2013 | 2,002,704 | $ | 46.73 | |||||||||
Granted in 2014 | — | $ | — | |||||||||
Exercised in 2014 | (209,222 | ) | $ | 34.90 | ||||||||
Forfeited in 2014 | — | $ | — | |||||||||
Canceled in 2014 | — | $ | — | |||||||||
Outstanding at September 30, 2014 | 1,793,482 | $ | 48.11 | 5.93 | $ | 39,246 | ||||||
SARs exercisable at September 30, 2014 | 1,434,023 | $ | 46.65 | 5.45 | $ | 33,466 |
Number of Restricted Share Awards | Weighted Average Fair Value per Award | |||||
Outstanding at September 30, 2013 | 127,453 | $ | 51.69 | |||
Granted in 2014 | — | $ | — | |||
Vested in 2014 | (34,601 | ) | $ | 58.17 | ||
Forfeited in 2014 | (3,334 | ) | $ | 55.09 | ||
Outstanding at September 30, 2014 | 89,518 | $ | 49.05 |
Number of Restricted Stock Units | Weighted Average Fair Value per Award | |||||
Outstanding at September 30, 2013 | 143,500 | $ | 51.53 | |||
Granted in 2014 | 82,151 | $ | 65.24 | |||
Vested in 2014 | (12,432 | ) | $ | 60.54 | ||
Forfeited in 2014 | (8,700 | ) | $ | 54.53 | ||
Outstanding at September 30, 2014 | 204,519 | $ | 56.36 |
Number of Performance Based Restricted Stock Units | Weighted Average Fair Value per Award | |||||
Outstanding at September 30, 2013 | 255,604 | $ | 49.51 | |||
Granted in 2014 | — | $ | — | |||
Vested in 2014 | — | $ | — | |||
Forfeited in 2014 | (21,728 | ) | $ | 48.49 | ||
Outstanding at September 30, 2014 | 233,876 | $ | 49.61 |
Number of Performance Shares | Weighted Average Fair Value per Award | |||||
Outstanding at September 30, 2013 | — | $ | — | |||
Granted in 2014 | 116,090 | $ | 67.16 | |||
Vested in 2014 | — | $ | — | |||
Forfeited in 2014 | (17,624 | ) | $ | 67.16 | ||
Outstanding at September 30, 2014 | 98,466 | $ | 67.16 |
At September 30 | |||||||
2014 | 2013 | ||||||
(Thousands) | |||||||
Medium-Term Notes(1): | |||||||
7.4% due March 2023 to June 2025 | $ | 99,000 | $ | 99,000 | |||
Notes(1)(3): | |||||||
3.75% to 8.75% due April 2018 to March 2023 | 1,550,000 | 1,550,000 | |||||
Total Long-Term Debt | 1,649,000 | 1,649,000 | |||||
Less Current Portion(2) | — | — | |||||
$ | 1,649,000 | $ | 1,649,000 |
(1) | The Medium-Term Notes and Notes are unsecured. |
(2) | None of the Company’s long-term debt at September 30, 2014 and 2013 will mature within the following twelve-month period. |
(3) | The holders of these notes may require the Company to repurchase their notes at a price equal to 101% of the principal amount in the event of both a change in control and a ratings downgrade to a rating below investment grade. |
Year Ended September 30 | ||||||
2014 | 2013 | 2012 | ||||
Risk-Free Interest Rate | 0.62 | % | N/A | N/A | ||
Remaining Term at Date of Grant (Years) | 2.78 | N/A | N/A | |||
Expected Volatility | 28.3 | % | N/A | N/A | ||
Expected Dividend Yield (Quarterly) | N/A | N/A | N/A |
Year Ended September 30 | |||||||
2014 | 2013 | 2012 | |||||
Risk-Free Interest Rate | N/A | 1.55 | % | 1.59 | % | ||
Expected Life (Years) | N/A | 8.25 | 8.25 | ||||
Expected Volatility | N/A | 25.61 | % | 24.97 | % | ||
Expected Dividend Yield (Quarterly) | N/A | 0.69 | % | 0.64 | % |
|
At Fair Value as of September 30, 2014 | |||||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Netting Adjustments(1) | Total(1) | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Cash Equivalents — Money Market Mutual Funds | $ | 23,794 | $ | — | $ | — | $ | — | $ | 23,794 | |||||||||
Derivative Financial Instruments: | |||||||||||||||||||
Commodity Futures Contracts — Gas | 2,725 | — | — | (1,987 | ) | 738 | |||||||||||||
Over the Counter Swaps — Gas and Oil | — | 75,951 | 1,368 | (5,451 | ) | 71,868 | |||||||||||||
Other Investments: | |||||||||||||||||||
Balanced Equity Mutual Fund | 35,331 | — | — | — | 35,331 | ||||||||||||||
Common Stock — Financial Services Industry | 6,629 | — | — | — | 6,629 | ||||||||||||||
Other Common Stock | 455 | — | — | — | 455 | ||||||||||||||
Hedging Collateral Deposits | 2,734 | — | — | — | 2,734 | ||||||||||||||
Total | $ | 71,668 | $ | 75,951 | $ | 1,368 | $ | (7,438 | ) | $ | 141,549 | ||||||||
Liabilities: | |||||||||||||||||||
Derivative Financial Instruments: | |||||||||||||||||||
Commodity Futures Contracts — Gas | $ | 2,674 | $ | — | $ | — | $ | (1,987 | ) | $ | 687 | ||||||||
Over the Counter Swaps — Gas and Oil | — | 5,523 | — | (5,451 | ) | 72 | |||||||||||||
Total | $ | 2,674 | $ | 5,523 | $ | — | $ | (7,438 | ) | $ | 759 | ||||||||
Total Net Assets/(Liabilities) | $ | 68,994 | $ | 70,428 | $ | 1,368 | $ | — | $ | 140,790 |
At Fair Value as of September 30, 2013 | |||||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Netting Adjustments(1) | Total(1) | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Cash Equivalents — Money Market Mutual Funds | $ | 51,332 | $ | — | $ | — | $ | — | $ | 51,332 | |||||||||
Derivative Financial Instruments: | |||||||||||||||||||
Commodity Futures Contracts — Gas | 2,552 | — | — | (1,641 | ) | 911 | |||||||||||||
Over the Counter Swaps — Gas and Oil | — | 57,070 | — | (9,003 | ) | 48,067 | |||||||||||||
Other Investments: | |||||||||||||||||||
Balanced Equity Mutual Fund | 31,813 | — | — | — | 31,813 | ||||||||||||||
Common Stock — Financial Services Industry | 6,544 | — | — | — | 6,544 | ||||||||||||||
Other Common Stock | 330 | — | — | — | 330 | ||||||||||||||
Hedging Collateral Deposits | 1,094 | — | — | — | 1,094 | ||||||||||||||
Total | $ | 93,665 | $ | 57,070 | $ | — | $ | (10,644 | ) | $ | 140,091 | ||||||||
Liabilities: | |||||||||||||||||||
Derivative Financial Instruments: | |||||||||||||||||||
Commodity Futures Contracts — Gas | $ | 1,641 | $ | — | $ | — | $ | (1,641 | ) | $ | — | ||||||||
Over the Counter Swaps — Gas and Oil | — | 4,452 | 5,190 | (9,003 | ) | 639 | |||||||||||||
Total | $ | 1,641 | $ | 4,452 | $ | 5,190 | $ | (10,644 | ) | $ | 639 | ||||||||
Total Net Assets/(Liabilities) | $ | 92,024 | $ | 52,618 | $ | (5,190 | ) | $ | — | $ | 139,452 |
(1) | Netting Adjustments represent the impact of legally-enforceable master netting arrangements that allow the Company to net gain and loss positions held with the same counterparties. The net asset or net liability for each counterparty is recorded as an asset or liability on the Company’s balance sheet. |
Total Gains/Losses | |||||||||||||||||||
October 1, 2013 | (Gains)/Losses Realized and Included in Earnings | Gains/(Losses) Unrealized and Included in Other Comprehensive Income (Loss) | Transfer In/(Out) of Level 3 | September 30, 2014 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Derivative Financial Instruments(2) | $ | (5,190 | ) | $ | 2,217 | (1) | $ | 4,341 | $ | — | $ | 1,368 |
(1) | Amounts are reported in Operating Revenues in the Consolidated Statement of Income for the year ended September 30, 2014. |
(2) | Derivative Financial Instruments are shown on a net basis. |
Total Gains/Losses | |||||||||||||||||||
October 1, 2012 | (Gains)/Losses Realized and Included in Earnings | Gains/(Losses) Unrealized and Included in Other Comprehensive Income (Loss) | Transfer In/(Out) of Level 3 | September 30, 2013 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Derivative Financial Instruments(2) | $ | (19,664 | ) | $ | 13,408 | (1) | $ | 1,066 | $ | — | $ | (5,190 | ) |
(1) | Amounts are reported in Operating Revenues in the Consolidated Statement of Income for the year ended September 30, 2013. |
(2) | Derivative Financial Instruments are shown on a net basis. |
|
At September 30 | |||||||||||||||
2014 Carrying Amount | 2014 Fair Value | 2013 Carrying Amount | 2013 Fair Value | ||||||||||||
(Thousands) | |||||||||||||||
Long-Term Debt | $ | 1,649,000 | $ | 1,775,715 | $ | 1,649,000 | $ | 1,767,519 |
The Effect of Derivative Financial Instruments on the Statement of Financial Performance for the Year Ended September 30, 2014 and 2013 (Dollar Amounts in Thousands) | ||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Amount of Derivative Gain or (Loss) Recognized in Other Comprehensive Income (Loss) on the Consolidated Statement of Comprehensive Income (Loss) (Effective Portion) for the Year Ended September 30, | Location of Derivative Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheet into the Consolidated Statement of Income (Effective Portion) | Amount of Derivative Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheet into the Consolidated Statement of Income (Effective Portion) for the Year Ended September 30, | Location of Derivative Gain or (Loss) Recognized in the Consolidated Statement of Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Derivative Gain or (Loss) Recognized in the Consolidated Statement of Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) for the Year Ended September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Commodity Contracts | $ | 9,763 | $ | 87,813 | Operating Revenue | $ | (14,880 | ) | $ | 36,949 | Operating Revenue | $ | 624 | $ | (2,045 | ) | ||||||||||||
Commodity Contracts | $ | (4,429 | ) | $ | 3,977 | Purchased Gas | $ | (2,767 | ) | $ | (920 | ) | Not Applicable | $ | — | $ | — | |||||||||||
Total | $ | 5,334 | $ | 91,790 | $ | (17,647 | ) | $ | 36,029 | $ | 624 | $ | (2,045 | ) |
Derivatives in Fair Value Hedging Relationships | Location of Gain or (Loss) on Derivative and Hedged Item Recognized in the Consolidated Statement of Income | Amount of Gain or (Loss) on Derivative Recognized in the Consolidated Statement of Income for the Year Ended September 30, 2014 | Amount of Gain or (Loss) on Hedged Item Recognized in the Consolidated Statement of Income for the Year Ended September 30, 2014 | |||||||
(In thousands) | ||||||||||
Commodity Contracts | Operating Revenues | $ | 696 | $ | (696 | ) | ||||
Commodity Contracts | Purchased Gas | (574 | ) | 574 | ||||||
$ | 122 | $ | (122 | ) |
|
Retirement Plan | Other Post-Retirement Benefits | ||||||||||||||||||||||
Year Ended September 30 | Year Ended September 30 | ||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
(Thousands) | |||||||||||||||||||||||
Change in Benefit Obligation | |||||||||||||||||||||||
Benefit Obligation at Beginning of Period | $ | 946,305 | $ | 1,070,744 | $ | 949,777 | $ | 460,634 | $ | 561,263 | $ | 485,452 | |||||||||||
Service Cost | 11,987 | 15,846 | 14,202 | 2,939 | 4,705 | 4,016 | |||||||||||||||||
Interest Cost | 43,574 | 36,498 | 41,526 | 21,308 | 19,212 | 21,315 | |||||||||||||||||
Plan Participants’ Contributions | — | — | — | 2,265 | 2,141 | 1,956 | |||||||||||||||||
Retiree Drug Subsidy Receipts | — | — | — | 1,419 | 1,526 | 1,528 | |||||||||||||||||
Actuarial (Gain) Loss | 53,887 | (121,631 | ) | 120,338 | 1,087 | (104,455 | ) | 71,708 | |||||||||||||||
Benefits Paid | (56,254 | ) | (55,152 | ) | (55,099 | ) | (24,069 | ) | (23,758 | ) | (24,712 | ) | |||||||||||
Benefit Obligation at End of Period | $ | 999,499 | $ | 946,305 | $ | 1,070,744 | $ | 465,583 | $ | 460,634 | $ | 561,263 | |||||||||||
Change in Plan Assets | |||||||||||||||||||||||
Fair Value of Assets at Beginning of Period | $ | 799,307 | $ | 701,676 | $ | 601,719 | $ | 472,392 | $ | 414,134 | $ | 351,990 | |||||||||||
Actual Return on Plan Assets | 93,238 | 98,783 | 111,034 | 44,898 | 61,715 | 63,552 | |||||||||||||||||
Employer Contributions | 33,500 | 54,000 | 44,022 | 2,115 | 18,160 | 21,348 | |||||||||||||||||
Plan Participants’ Contributions | — | — | — | 2,265 | 2,141 | 1,956 | |||||||||||||||||
Benefits Paid | (56,254 | ) | (55,152 | ) | (55,099 | ) | (24,069 | ) | (23,758 | ) | (24,712 | ) | |||||||||||
Fair Value of Assets at End of Period | $ | 869,791 | $ | 799,307 | $ | 701,676 | $ | 497,601 | $ | 472,392 | $ | 414,134 | |||||||||||
Net Amount Recognized at End of Period (Funded Status) | $ | (129,708 | ) | $ | (146,998 | ) | $ | (369,068 | ) | $ | 32,018 | $ | 11,758 | $ | (147,129 | ) | |||||||
Amounts Recognized in the Balance Sheets Consist of: | |||||||||||||||||||||||
Non-Current Liabilities | $ | (129,708 | ) | $ | (146,998 | ) | $ | (369,068 | ) | $ | (4,494 | ) | $ | (11,016 | ) | $ | (147,129 | ) | |||||
Non-Current Assets | — | — | — | 36,512 | 22,774 | — | |||||||||||||||||
Net Amount Recognized at End of Period | $ | (129,708 | ) | $ | (146,998 | ) | $ | (369,068 | ) | $ | 32,018 | $ | 11,758 | $ | (147,129 | ) | |||||||
Accumulated Benefit Obligation | $ | 940,068 | $ | 886,942 | $ | 986,223 | N/A | N/A | N/A | ||||||||||||||
Weighted Average Assumptions Used to Determine Benefit Obligation at September 30 | |||||||||||||||||||||||
Discount Rate | 4.25 | % | 4.75 | % | 3.50 | % | 4.25 | % | 4.75 | % | 3.50 | % | |||||||||||
Rate of Compensation Increase | 4.75 | % | 4.75 | % | 4.75 | % | 4.75 | % | 4.75 | % | 4.75 | % |
Retirement Plan | Other Post-Retirement Benefits | ||||||||||||||||||||||
Year Ended September 30 | Year Ended September 30 | ||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
(Thousands) | |||||||||||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||||||||
Service Cost | $ | 11,987 | $ | 15,846 | $ | 14,202 | $ | 2,939 | $ | 4,705 | $ | 4,016 | |||||||||||
Interest Cost | 43,574 | 36,498 | 41,526 | 21,308 | 19,212 | 21,315 | |||||||||||||||||
Expected Return on Plan Assets | (59,974 | ) | (57,346 | ) | (59,701 | ) | (37,424 | ) | (32,872 | ) | (28,971 | ) | |||||||||||
Amortization of Prior Service Cost (Credit) | 210 | 238 | 269 | (2,138 | ) | (2,138 | ) | (2,138 | ) | ||||||||||||||
Amortization of Transition Amount | — | — | — | — | 8 | 10 | |||||||||||||||||
Recognition of Actuarial Loss(1) | 36,007 | 52,776 | 39,615 | 2,645 | 20,892 | 24,057 | |||||||||||||||||
Net Amortization and Deferral for Regulatory Purposes | 8,151 | (10,406 | ) | (6,900 | ) | 23,263 | 11,844 | 6,162 | |||||||||||||||
Net Periodic Benefit Cost | $ | 39,955 | $ | 37,606 | $ | 29,011 | $ | 10,593 | $ | 21,651 | $ | 24,451 | |||||||||||
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost at September 30 | |||||||||||||||||||||||
Discount Rate | 4.75 | % | 3.50 | % | 4.50 | % | 4.75 | % | 3.50 | % | 4.50 | % | |||||||||||
Expected Return on Plan Assets | 8.00 | % | 8.00 | % | 8.25 | % | 8.00 | % | 8.00 | % | 8.25 | % | |||||||||||
Rate of Compensation Increase | 4.75 | % | 4.75 | % | 4.75 | % | 4.75 | % | 4.75 | % | 4.75 | % |
(1) | 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. |
Retirement Plan | Other Post-Retirement Benefits | Non-Qualified Benefit Plans | |||||||||
(Thousands) | |||||||||||
Amounts Recognized in Accumulated Other Comprehensive Income (Loss), Regulatory Assets and Regulatory Liabilities(1) | |||||||||||
Net Actuarial Loss | $ | (226,897 | ) | $ | (32,082 | ) | $ | (23,532 | ) | ||
Prior Service (Cost) Credit | (856 | ) | 6,940 | — | |||||||
Net Amount Recognized | $ | (227,753 | ) | $ | (25,142 | ) | $ | (23,532 | ) | ||
Changes to Accumulated Other Comprehensive Income (Loss), Regulatory Assets and Regulatory Liabilities Recognized During Fiscal 2014(1) | |||||||||||
Decrease (Increase) in Actuarial Loss, excluding amortization(2) | $ | (20,622 | ) | $ | 6,387 | $ | (5,424 | ) | |||
Change due to Amortization of Actuarial Loss | 36,007 | 2,645 | 3,008 | ||||||||
Prior Service (Cost) Credit | 210 | (2,138 | ) | — | |||||||
Net Change | $ | 15,595 | $ | 6,894 | $ | (2,416 | ) | ||||
Amounts Expected to be Recognized in Net Periodic Benefit Cost in the Next Fiscal Year(1) | |||||||||||
Net Actuarial Loss | $ | (36,129 | ) | $ | (4,148 | ) | $ | (2,925 | ) | ||
Prior Service (Cost) Credit | (183 | ) | 1,913 | — | |||||||
Net Amount Expected to be Recognized | $ | (36,312 | ) | $ | (2,235 | ) | $ | (2,925 | ) |
(1) | Amounts presented are shown before recognizing deferred taxes. |
(2) | Amounts presented include the impact of actuarial gains/losses related to return on assets, as well as the Actuarial (Gain) Loss amounts presented in the Change in Benefit Obligation. |
Benefit Payments | Subsidy Receipts | ||||||
2015 | $ | 25,594 | $ | (1,955 | ) | ||
2016 | $ | 26,909 | $ | (2,143 | ) | ||
2017 | $ | 28,113 | $ | (2,323 | ) | ||
2018 | $ | 29,226 | $ | (2,511 | ) | ||
2019 | $ | 30,173 | $ | (2,708 | ) | ||
2020 through 2024 | $ | 163,470 | $ | (16,104 | ) |
2014 | 2013 | 2012 | |||||||||
Rate of Increase for Pre Age 65 Participants | 7.10 | % | (1) | 7.28 | % | (1) | 7.46 | % | (1) | ||
Rate of Increase for Post Age 65 Participants | 6.73 | % | (1) | 6.78 | % | (1) | 6.84 | % | (1) | ||
Annual Rate of Increase in the Per Capita Cost of Covered Prescription Drug Benefits | 7.47 | % | (1) | 7.78 | % | (1) | 8.08 | % | (1) | ||
Annual Rate of Increase in the Per Capita Medicare Part B Reimbursement | 6.73 | % | (1) | 6.78 | % | (1) | 6.84 | % | (1) | ||
Annual Rate of Increase in the Per Capita Medicare Part D Subsidy | 6.79 | % | (1) | 7.03 | % | (1) | 7.13 | % | (1) |
(1) | It was assumed that this rate would gradually decline to 4.5% by 2028. |
Total Fair Value Amounts at September 30, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||||
Other Post-Retirement Benefit Assets held in VEBA Trusts | |||||||||||||||
Collective Trust Funds — Domestic Equities | $ | 148,219 | $ | — | $ | 148,219 | $ | — | |||||||
Collective Trust Funds — International Equities | 54,881 | — | 54,881 | — | |||||||||||
Exchange Traded Funds — Fixed Income | 236,513 | 236,513 | — | — | |||||||||||
Cash Held in Collective Trust Funds | 6,412 | — | 6,412 | — | |||||||||||
Total VEBA Trust Investments | 446,025 | 236,513 | 209,512 | — | |||||||||||
401(h) Investments | 54,921 | 14,105 | 37,907 | 2,909 | |||||||||||
Total Investments (including 401(h) Investments) | $ | 500,946 | $ | 250,618 | $ | 247,419 | $ | 2,909 | |||||||
Miscellaneous Accruals (Including Current and Deferred Taxes, Claims Incurred But Not Reported, Administrative) | (3,345 | ) | |||||||||||||
Total Other Post-Retirement Benefit Assets | $ | 497,601 |
Total Fair Value Amounts at September 30, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||
Other Post-Retirement Benefit Assets held in VEBA Trusts | |||||||||||||||
Collective Trust Funds — Domestic Equities | $ | 205,623 | $ | — | $ | 205,623 | $ | — | |||||||
Collective Trust Funds — International Equities | 87,613 | — | 87,613 | — | |||||||||||
Exchange Traded Funds — Fixed Income | 122,558 | 122,558 | — | — | |||||||||||
Real Estate | 55 | — | — | 55 | |||||||||||
Cash Held in Collective Trust Funds | 11,678 | — | 11,678 | — | |||||||||||
Total VEBA Trust Investments | 427,527 | 122,558 | 304,914 | 55 | |||||||||||
401(h) Investments | 49,453 | 20,141 | 26,706 | 2,606 | |||||||||||
Total Investments (including 401(h) Investments) | $ | 476,980 | $ | 142,699 | $ | 331,620 | $ | 2,661 | |||||||
Miscellaneous Accruals (Including Current and Deferred Taxes, Claims Incurred But Not Reported, Administrative) | (4,588 | ) | |||||||||||||
Total Other Post-Retirement Benefit Assets | $ | 472,392 |
Other Post-Retirement Benefit Level 3 Assets (Thousands) | |||||||||||
VEBA Trust Investments | Including 401(h) Investments | Other Post-Retirement Benefit Investments | |||||||||
Real Estate | |||||||||||
Balance at September 30, 2012 | $ | 1,305 | $ | 2,680 | $ | 3,985 | |||||
Realized Gains/(Losses) | 940 | (4 | ) | 936 | |||||||
Unrealized Gains/(Losses) | 385 | 156 | 541 | ||||||||
Purchases | — | 11 | 11 | ||||||||
Sales | (2,575 | ) | (237 | ) | (2,812 | ) | |||||
Balance at September 30, 2013 | 55 | 2,606 | 2,661 | ||||||||
Realized Gains/(Losses) | (40 | ) | 4 | (36 | ) | ||||||
Unrealized Gains/(Losses) | — | 239 | 239 | ||||||||
Purchases | — | 65 | 65 | ||||||||
Sales | (15 | ) | (5 | ) | (20 | ) | |||||
Balance at September 30, 2014 | $ | — | $ | 2,909 | $ | 2,909 |
Total Fair Value Amounts at September 30, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||||
Retirement Plan Investments | |||||||||||||||
Domestic Equities(1) | $ | 268,649 | $ | 171,979 | $ | 96,670 | $ | — | |||||||
International Equities(2) | 80,957 | 1,969 | 78,988 | — | |||||||||||
Global Equities(3) | 104,238 | — | 104,238 | — | |||||||||||
Domestic Fixed Income(4) | 299,494 | 63,187 | 236,307 | — | |||||||||||
International Fixed Income(5) | 1,240 | 508 | 732 | — | |||||||||||
Global Fixed Income(6) | 93,704 | — | 93,704 | — | |||||||||||
Hedge Fund Investments | 45,213 | — | — | 45,213 | |||||||||||
Real Estate | 3,792 | — | — | 3,792 | |||||||||||
Cash and Cash Equivalents | 33,544 | — | 33,544 | — | |||||||||||
Total Retirement Plan Investments | 930,831 | 237,643 | 644,183 | 49,005 | |||||||||||
401(h) Investments | (54,921 | ) | (14,105 | ) | (37,907 | ) | (2,909 | ) | |||||||
Total Retirement Plan Investments (excluding 401(h) Investments) | $ | 875,910 | $ | 223,538 | $ | 606,276 | $ | 46,096 | |||||||
Miscellaneous Accruals, Interest Receivables, and Non-Interest Cash | (6,119 | ) | |||||||||||||
Total Retirement Plan Assets | $ | 869,791 |
Total Fair Value Amounts at September 30, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||
Retirement Plan Investments | |||||||||||||||
Domestic Equities(1) | $ | 402,107 | $ | 271,071 | $ | 131,036 | $ | — | |||||||
International Equities(2) | 103,028 | 2,355 | 100,673 | — | |||||||||||
Global Equities(3) | 25,325 | — | 25,325 | — | |||||||||||
Domestic Fixed Income(4) | 163,750 | 71,185 | 92,565 | — | |||||||||||
International Fixed Income(5) | 2,762 | 1,318 | 1,444 | — | |||||||||||
Global Fixed Income(6) | 88,084 | — | 88,084 | — | |||||||||||
Hedge Fund Investments | 42,027 | — | — | 42,027 | |||||||||||
Real Estate | 2,723 | — | — | 2,723 | |||||||||||
Cash and Cash Equivalents | 22,694 | — | 22,694 | — | |||||||||||
Total Retirement Plan Investments | 852,500 | 345,929 | 461,821 | 44,750 | |||||||||||
401(h) Investments | (49,453 | ) | (20,141 | ) | (26,706 | ) | (2,606 | ) | |||||||
Total Retirement Plan Investments (excluding 401(h) Investments) | $ | 803,047 | $ | 325,788 | $ | 435,115 | $ | 42,144 | |||||||
Miscellaneous Accruals, Interest Receivables, and Non-Interest Cash | (3,740 | ) | |||||||||||||
Total Retirement Plan Assets | $ | 799,307 |
(1) | Domestic Equities include mostly collective trust funds, common stock, and exchange traded funds. |
(2) | International Equities include mostly collective trust funds and common stock. |
(3) | Global Equities are comprised of a collective trust fund. |
(4) | Domestic Fixed Income securities include mostly collective trust funds, corporate/government bonds and mortgages, and exchange traded funds. |
(5) | International Fixed Income securities include mostly collective trust funds and exchange traded funds. |
(6) | Global Fixed Income securities are comprised of a collective trust fund. |
Retirement Plan Level 3 Assets (Thousands) | ||||||||||||||||
Hedge Funds | Real Estate | Excluding 401(h) Investments | Total | |||||||||||||
Balance at September 30, 2012 | $ | 39,956 | $ | 6,170 | $ | (2,680 | ) | $ | 43,446 | |||||||
Realized Gains/(Losses) | — | (73 | ) | 4 | (69 | ) | ||||||||||
Unrealized Gains/(Losses) | 2,071 | 515 | (156 | ) | 2,430 | |||||||||||
Purchases | — | 188 | (11 | ) | 177 | |||||||||||
Sales | — | (4,077 | ) | 237 | (3,840 | ) | ||||||||||
Balance at September 30, 2013 | 42,027 | 2,723 | (2,606 | ) | 42,144 | |||||||||||
Realized Gains/(Losses) | — | 62 | (4 | ) | 58 | |||||||||||
Unrealized Gains/(Losses) | 3,186 | (10 | ) | (239 | ) | 2,937 | ||||||||||
Purchases | — | 1,111 | (65 | ) | 1,046 | |||||||||||
Sales | — | (94 | ) | 5 | (89 | ) | ||||||||||
Balance at September 30, 2014 | $ | 45,213 | $ | 3,792 | $ | (2,909 | ) | $ | 46,096 |
|
Year Ended September 30, 2014 | |||||||||||||||||||||||||||||||||||
Exploration and Production | Pipeline and Storage | Gathering | Utility | Energy Marketing | Total Reportable Segments | All Other | Corporate and Intersegment Eliminations | Total Consolidated | |||||||||||||||||||||||||||
(Thousands) | |||||||||||||||||||||||||||||||||||
Revenue from External Customers(1) | $ | 804,096 | $ | 200,664 | $ | 673 | $ | 831,156 | $ | 271,993 | $ | 2,108,582 | $ | 3,532 | $ | 967 | $ | 2,113,081 | |||||||||||||||||
Intersegment Revenues | $ | — | $ | 83,744 | $ | 69,937 | $ | 18,462 | $ | 1,159 | $ | 173,302 | $ | — | $ | (173,302 | ) | $ | — | ||||||||||||||||
Interest Income | $ | 1,909 | $ | 284 | $ | 120 | $ | 3,010 | $ | 173 | $ | 5,496 | $ | 106 | $ | (1,432 | ) | $ | 4,170 | ||||||||||||||||
Interest Expense | $ | 42,232 | $ | 26,428 | $ | 1,726 | $ | 27,693 | $ | 31 | $ | 98,110 | $ | 6 | $ | (3,839 | ) | $ | 94,277 | ||||||||||||||||
Depreciation, Depletion and Amortization | $ | 296,210 | $ | 36,642 | $ | 6,116 | $ | 43,594 | $ | 197 | $ | 382,759 | $ | 344 | $ | 678 | $ | 383,781 | |||||||||||||||||
Income Tax Expense (Benefit) | $ | 81,370 | $ | 47,100 | $ | 23,636 | $ | 33,918 | $ | 3,761 | $ | 189,785 | $ | 822 | $ | (993 | ) | $ | 189,614 | ||||||||||||||||
Segment Profit: Net Income (Loss) | $ | 121,569 | $ | 77,559 | $ | 32,709 | $ | 64,059 | $ | 6,631 | $ | 302,527 | $ | 1,160 | $ | (4,274 | ) | $ | 299,413 | ||||||||||||||||
Expenditures for Additions to Long-Lived Assets | $ | 602,705 | $ | 139,821 | $ | 137,799 | $ | 88,810 | $ | 264 | $ | 969,399 | $ | 274 | $ | 234 | $ | 969,907 | |||||||||||||||||
At September 30, 2014 | |||||||||||||||||||||||||||||||||||
(Thousands) | |||||||||||||||||||||||||||||||||||
Segment Assets | $ | 3,100,514 | $ | 1,367,181 | $ | 326,662 | $ | 1,862,850 | $ | 76,238 | $ | 6,733,445 | $ | 86,460 | $ | (80,308 | ) | $ | 6,739,597 |
Year Ended September 30, 2013 | |||||||||||||||||||||||||||||||||||
Exploration and Production | Pipeline and Storage | Gathering | Utility | Energy Marketing | Total Reportable Segments | All Other | Corporate and Intersegment Elimination | Total Consolidated | |||||||||||||||||||||||||||
(Thousands) | |||||||||||||||||||||||||||||||||||
Revenue from External Customers(1) | $ | 702,937 | $ | 178,184 | $ | 1,324 | $ | 730,319 | $ | 211,990 | $ | 1,824,754 | $ | 3,910 | $ | 887 | $ | 1,829,551 | |||||||||||||||||
Intersegment Revenues | $ | — | $ | 89,424 | $ | 33,457 | $ | 16,020 | $ | 1,384 | $ | 140,285 | $ | — | $ | (140,285 | ) | $ | — | ||||||||||||||||
Interest Income | $ | 1,501 | $ | 193 | $ | 55 | $ | 3,417 | $ | 169 | $ | 5,335 | $ | 115 | $ | (1,115 | ) | $ | 4,335 | ||||||||||||||||
Interest Expense | $ | 39,745 | $ | 26,248 | $ | 2,283 | $ | 29,076 | $ | 36 | $ | 97,388 | $ | 2 | $ | (3,279 | ) | $ | 94,111 | ||||||||||||||||
Depreciation, Depletion and Amortization | $ | 243,431 | $ | 35,156 | $ | 3,945 | $ | 42,729 | $ | 123 | $ | 325,384 | $ | 577 | $ | 799 | $ | 326,760 | |||||||||||||||||
Income Tax Expense (Benefit) | $ | 95,317 | $ | 38,626 | $ | 10,287 | $ | 31,065 | $ | 2,450 | $ | 177,745 | $ | 529 | $ | (5,516 | ) | $ | 172,758 | ||||||||||||||||
Segment Profit: Net Income (Loss) | $ | 115,391 | $ | 63,245 | $ | 13,321 | $ | 65,686 | $ | 4,589 | $ | 262,232 | $ | 894 | $ | (3,125 | ) | $ | 260,001 | ||||||||||||||||
Expenditures for Additions to Long-Lived Assets | $ | 533,129 | $ | 56,144 | $ | 54,792 | $ | 71,970 | $ | 595 | $ | 716,630 | $ | 307 | $ | 160 | $ | 717,097 | |||||||||||||||||
At September 30, 2013 | |||||||||||||||||||||||||||||||||||
(Thousands) | |||||||||||||||||||||||||||||||||||
Segment Assets | $ | 2,746,233 | $ | 1,246,027 | $ | 203,323 | $ | 1,870,587 | $ | 67,267 | $ | 6,133,437 | $ | 95,793 | $ | (10,883 | ) | $ | 6,218,347 |
Year Ended September 30, 2012 | |||||||||||||||||||||||||||||||||||
Exploration and Production | Pipeline and Storage | Gathering | Utility | Energy Marketing | Total Reportable Segments | All Other | Corporate and Intersegment Eliminations | Total Consolidated | |||||||||||||||||||||||||||
(Thousands) | |||||||||||||||||||||||||||||||||||
Revenue from External Customers(1) | $ | 558,180 | $ | 172,312 | $ | 704 | $ | 704,518 | $ | 186,579 | $ | 1,622,293 | $ | 3,603 | $ | 957 | $ | 1,626,853 | |||||||||||||||||
Intersegment Revenues | $ | — | $ | 86,963 | $ | 16,771 | $ | 14,604 | $ | 1,425 | $ | 119,763 | $ | — | $ | (119,763 | ) | $ | — | ||||||||||||||||
Interest Income | $ | 1,493 | $ | 199 | $ | 1 | $ | 2,765 | $ | 188 | $ | 4,646 | $ | 174 | $ | (1,131 | ) | $ | 3,689 | ||||||||||||||||
Interest Expense | $ | 29,243 | $ | 25,603 | $ | 1,444 | $ | 33,181 | $ | 41 | $ | 89,512 | $ | 294 | $ | (3,566 | ) | $ | 86,240 | ||||||||||||||||
Depreciation, Depletion and Amortization | $ | 187,624 | $ | 38,182 | $ | 1,691 | $ | 42,757 | $ | 90 | $ | 270,344 | $ | 400 | $ | 786 | $ | 271,530 | |||||||||||||||||
Income Tax Expense (Benefit) | $ | 79,050 | $ | 37,655 | $ | 4,825 | $ | 29,110 | $ | 1,933 | $ | 152,573 | $ | (490 | ) | $ | (1,529 | ) | $ | 150,554 | |||||||||||||||
Segment Profit: Net Income (Loss) | $ | 96,498 | $ | 60,527 | $ | 6,855 | $ | 58,590 | $ | 4,169 | $ | 226,639 | $ | 13 | $ | (6,575 | ) | $ | 220,077 | ||||||||||||||||
Expenditures for Additions to Long-Lived Assets | $ | 693,810 | $ | 144,167 | $ | 80,012 | $ | 58,284 | $ | 770 | $ | 977,043 | $ | 5 | $ | 346 | $ | 977,394 | |||||||||||||||||
At September 30, 2012 | |||||||||||||||||||||||||||||||||||
(Thousands) | |||||||||||||||||||||||||||||||||||
Segment Assets | $ | 2,367,485 | $ | 1,243,862 | $ | 116,756 | $ | 2,070,413 | $ | 61,968 | $ | 5,860,484 | $ | 93,178 | $ | (18,520 | ) | $ | 5,935,142 |
(1) | All Revenue from External Customers originated in the United States. |
Geographic Information | At September 30 | ||||||||||
2014 | 2013 | 2012 | |||||||||
(Thousands) | |||||||||||
Long-Lived Assets: | |||||||||||
United States | $ | 6,362,265 | $ | 5,769,670 | $ | 5,579,566 |
|
Quarter Ended | Operating Revenues | Operating Income | Net Income Available for Common Stock | Earnings per Common Share | ||||||||||||||||
Basic | Diluted | |||||||||||||||||||
(Thousands, except per common share amounts) | ||||||||||||||||||||
2014 | ||||||||||||||||||||
9/30/2014 | $ | 366,623 | $ | 102,004 | $ | 57,431 | $ | 0.68 | $ | 0.68 | ||||||||||
6/30/2014 | $ | 440,144 | $ | 127,013 | $ | 64,520 | $ | 0.77 | $ | 0.76 | ||||||||||
3/31/2014 | $ | 756,242 | $ | 180,075 | $ | 95,210 | (1) | $ | 1.14 | $ | 1.12 | |||||||||
12/31/2013 | $ | 550,072 | $ | 160,581 | $ | 82,252 | $ | 0.98 | $ | 0.97 | ||||||||||
2013 | ||||||||||||||||||||
9/30/2013 | $ | 338,863 | $ | 96,636 | $ | 47,842 | (2) | $ | 0.57 | $ | 0.57 | |||||||||
6/30/2013 | $ | 440,008 | $ | 127,004 | $ | 58,495 | $ | 0.70 | $ | 0.69 | ||||||||||
3/31/2013 | $ | 597,826 | $ | 162,991 | $ | 85,720 | $ | 1.03 | $ | 1.02 | ||||||||||
12/31/2012 | $ | 452,854 | $ | 131,207 | $ | 67,944 | $ | 0.81 | $ | 0.81 |
(1) | Includes $3.6 million of income associated with a death benefit gain on life insurance proceeds recorded in the Corporate category. |
(2) | Includes a $4.7 million refund provision recorded in the Utility segment related to various issues raised in Distribution Corporation’s rate proceeding in New York. |
|
At September 30 | |||||||
2014 | 2013 | ||||||
(Thousands) | |||||||
Proved Properties(1) | $ | 3,941,143 | $ | 3,393,612 | |||
Unproved Properties | 141,719 | 106,085 | |||||
4,082,862 | 3,499,697 | ||||||
Less — Accumulated Depreciation, Depletion and Amortization | 1,211,610 | 919,989 | |||||
$ | 2,871,252 | $ | 2,579,708 |
(1) | Includes asset retirement costs of $75.7 million and $80.6 million at September 30, 2014 and 2013, respectively. |
Total as of September 30, 2014 | Year Costs Incurred | ||||||||||||||||||
2014 | 2013 | 2012 | Prior | ||||||||||||||||
(Thousands) | |||||||||||||||||||
Acquisition Costs | $ | 61,712 | $ | 7,057 | $ | 905 | $ | 5,585 | $ | 48,165 | |||||||||
Development Costs | 42,362 | 39,339 | 677 | 1,405 | 941 | ||||||||||||||
Exploration Costs | 36,882 | 36,882 | — | — | — | ||||||||||||||
Capitalized Interest | 763 | 763 | — | — | — | ||||||||||||||
$ | 141,719 | $ | 84,041 | $ | 1,582 | $ | 6,990 | $ | 49,106 |
Year Ended September 30 | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Thousands) | |||||||||||
United States | |||||||||||
Property Acquisition Costs: | |||||||||||
Proved | $ | 18,213 | $ | 7,575 | $ | 13,095 | |||||
Unproved | 7,884 | 9,274 | 13,867 | ||||||||
Exploration Costs(1) | 71,850 | 49,483 | 84,624 | ||||||||
Development Costs(2) | 490,164 | 460,554 | 576,397 | ||||||||
Asset Retirement Costs | (4,946 | ) | 37,546 | 10,344 | |||||||
$ | 583,165 | $ | 564,432 | $ | 698,327 |
(1) | Amounts for 2014, 2013 and 2012 include capitalized interest of $0.7 million, $0.4 million and $1.0 million, respectively. |
(2) | Amounts for 2014, 2013 and 2012 include capitalized interest of $0.7 million, $0.7 million and $2.0 million, respectively. |
Year Ended September 30 | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Thousands, except per Mcfe amounts) | |||||||||||
United States | |||||||||||
Operating Revenues: | |||||||||||
Natural Gas (includes revenues from sales to affiliates of $1 for all years presented and transfers to operations of $2,145, $612 and $0, respectively) | $ | 515,080 | $ | 371,311 | $ | 181,544 | |||||
Oil, Condensate and Other Liquids | 298,179 | 291,762 | 307,018 | ||||||||
Total Operating Revenues(1) | 813,259 | 663,073 | 488,562 | ||||||||
Production/Lifting Costs | 165,534 | 119,243 | 83,361 | ||||||||
Franchise/Ad Valorem Taxes | 20,765 | 17,200 | 23,620 | ||||||||
Accretion Expense | 6,192 | 3,929 | 3,084 | ||||||||
Depreciation, Depletion and Amortization ($1.82, $1.98 and $2.19 per Mcfe of production) | 291,651 | 238,467 | 182,759 | ||||||||
Income Tax Expense | 140,484 | 120,431 | 81,904 | ||||||||
Results of Operations for Producing Activities (excluding corporate overheads and interest charges) | $ | 188,633 | $ | 163,803 | $ | 113,834 |
(1) | Exclusive of hedging gains and losses. See further discussion in Note G — Financial Instruments. |
Gas MMcf | ||||||||
U. S. | ||||||||
Appalachian Region | West Coast Region | Total Company | ||||||
Proved Developed and Undeveloped Reserves: | ||||||||
September 30, 2011 | 606,606 | 68,316 | 674,922 | |||||
Extensions and Discoveries | 435,460 | (1) | 638 | 436,098 | ||||
Revisions of Previous Estimates | (53,992 | ) | (2,463 | ) | (56,455 | ) | ||
Production | (62,663 | ) | (2) | (3,468 | ) | (66,131 | ) | |
September 30, 2012 | 925,411 | 63,023 | 988,434 | |||||
Extensions and Discoveries | 360,922 | (1) | 702 | 361,624 | ||||
Revisions of Previous Estimates | 53,038 | 112 | 53,150 | |||||
Production | (100,633 | ) | (2) | (3,060 | ) | (103,693 | ) | |
September 30, 2013 | 1,238,738 | 60,777 | 1,299,515 | |||||
Extensions and Discoveries | 446,821 | (1) | — | 446,821 | ||||
Revisions of Previous Estimates | 43,690 | 1,358 | 45,048 | |||||
Production | (139,097 | ) | (2) | (3,210 | ) | (142,307 | ) | |
Purchases of Minerals in Place | 33,986 | — | 33,986 | |||||
Sale of Minerals in Place | (76 | ) | (103 | ) | (179 | ) | ||
September 30, 2014 | 1,624,062 | 58,822 | 1,682,884 | |||||
Proved Developed Reserves: | ||||||||
September 30, 2011 | 350,458 | 63,965 | 414,423 | |||||
September 30, 2012 | 544,560 | 59,923 | 604,483 | |||||
September 30, 2013 | 807,055 | 59,862 | 866,917 | |||||
September 30, 2014 | 1,119,901 | 57,907 | 1,177,808 | |||||
Proved Undeveloped Reserves: | ||||||||
September 30, 2011 | 256,148 | 4,351 | 260,499 | |||||
September 30, 2012 | 380,851 | 3,100 | 383,951 | |||||
September 30, 2013 | 431,683 | 915 | 432,598 | |||||
September 30, 2014 | 504,161 | 915 | 505,076 |
(1) | Extensions and discoveries include 435 Bcf (during 2012), 355 Bcf (during 2013) and 442 Bcf (during 2014), of Marcellus Shale gas in the Appalachian Region. |
(2) | Production includes 55,812 MMcf (during 2012), 93,999 MMcf (during 2013) and 131,590 MMcf (during 2014), from Marcellus Shale fields (which exceed 15% of total reserves). |
Oil Mbbl | ||||||||
U. S. | ||||||||
Appalachian Region | West Coast Region | Total Company | ||||||
Proved Developed and Undeveloped Reserves: | ||||||||
September 30, 2011 | 279 | 43,066 | 43,345 | |||||
Extensions and Discoveries | 28 | 1,229 | 1,257 | |||||
Revisions of Previous Estimates | 35 | 1,095 | 1,130 | |||||
Production | (36 | ) | (2,834 | ) | (2,870 | ) | ||
September 30, 2012 | 306 | 42,556 | 42,862 | |||||
Extensions and Discoveries | — | 2,443 | 2,443 | |||||
Revisions of Previous Estimates | 5 | (881 | ) | (876 | ) | |||
Production | (28 | ) | (2,803 | ) | (2,831 | ) | ||
September 30, 2013 | 283 | 41,315 | 41,598 | |||||
Extensions and Discoveries | 18 | 1,521 | 1,539 | |||||
Revisions of Previous Estimates | (17 | ) | (1,677 | ) | (1,694 | ) | ||
Production | (31 | ) | (3,005 | ) | (3,036 | ) | ||
Purchases of Minerals in Place | — | 83 | 83 | |||||
Sales of Minerals in Place | — | (13 | ) | (13 | ) | |||
September 30, 2014 | 253 | 38,224 | 38,477 | |||||
Proved Developed Reserves: | ||||||||
September 30, 2011 | 274 | 37,306 | 37,580 | |||||
September 30, 2012 | 306 | 38,138 | 38,444 | |||||
September 30, 2013 | 283 | 38,082 | 38,365 | |||||
September 30, 2014 | 253 | 37,002 | 37,255 | |||||
Proved Undeveloped Reserves: | ||||||||
September 30, 2011 | 5 | 5,760 | 5,765 | |||||
September 30, 2012 | — | 4,418 | 4,418 | |||||
September 30, 2013 | — | 3,233 | 3,233 | |||||
September 30, 2014 | — | 1,222 | 1,222 |
Year Ended September 30 | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Thousands) | |||||||||||
United States | |||||||||||
Future Cash Inflows | $ | 10,001,545 | $ | 8,943,942 | $ | 7,373,129 | |||||
Less: | |||||||||||
Future Production Costs | 2,795,657 | 2,334,393 | 1,919,530 | ||||||||
Future Development Costs | 790,033 | 749,876 | 619,573 | ||||||||
Future Income Tax Expense at Applicable Statutory Rate | 2,434,370 | 2,113,101 | 1,812,055 | ||||||||
Future Net Cash Flows | 3,981,485 | 3,746,572 | 3,021,971 | ||||||||
Less: | |||||||||||
10% Annual Discount for Estimated Timing of Cash Flows | 1,914,607 | 1,780,206 | 1,552,180 | ||||||||
Standardized Measure of Discounted Future Net Cash Flows | $ | 2,066,878 | $ | 1,966,366 | $ | 1,469,791 |
Year Ended September 30 | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Thousands) | |||||||||||
United States | |||||||||||
Standardized Measure of Discounted Future | |||||||||||
Net Cash Flows at Beginning of Year | $ | 1,966,366 | $ | 1,469,791 | $ | 1,524,157 | |||||
Sales, Net of Production Costs | (626,960 | ) | (526,630 | ) | (381,581 | ) | |||||
Net Changes in Prices, Net of Production Costs | (38,723 | ) | 339,655 | (385,019 | ) | ||||||
Extensions and Discoveries | 381,008 | 390,255 | 224,474 | ||||||||
Changes in Estimated Future Development Costs | 68,731 | 6,117 | 29,627 | ||||||||
Purchases of Minerals in Place | 34,705 | — | — | ||||||||
Sales of Minerals in Place | (691 | ) | — | — | |||||||
Previously Estimated Development Costs Incurred | 179,502 | 148,535 | 252,967 | ||||||||
Net Change in Income Taxes at Applicable Statutory Rate | (231,807 | ) | (130,574 | ) | (19,280 | ) | |||||
Revisions of Previous Quantity Estimates | 55,184 | 34,864 | 103,472 | ||||||||
Accretion of Discount and Other | 279,563 | 234,353 | 120,974 | ||||||||
Standardized Measure of Discounted Future Net Cash Flows at End of Year | $ | 2,066,878 | $ | 1,966,366 | $ | 1,469,791 |
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||||||
|