NATIONAL FUEL GAS CO, 10-Q filed on 1/30/2015
Quarterly Report
Document And Entity Information
3 Months Ended
Dec. 31, 2014
Document And Entity Information [Abstract]
 
Document Type
10-Q 
Amendment Flag
false 
Document Period End Date
Dec. 31, 2014 
Document Fiscal Year Focus
2015 
Document Fiscal Period Focus
Q1 
Entity Registrant Name
NATIONAL FUEL GAS CO 
Entity Central Index Key
0000070145 
Current Fiscal Year End Date
--09-30 
Entity Filer Category
Large Accelerated Filer 
Entity Common Stock, Shares Outstanding
84,264,485 
Trading Symbol
nfg 
Consolidated Statements Of Income And Earnings Reinvested In The Business (Unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
Dec. 31, 2014
Dec. 31, 2013
INCOME
 
 
Operating Revenues
$ 523,909 
$ 550,072 
Operating Expenses
 
 
Purchased Gas
127,091 
167,605 
Operation and Maintenance
112,582 
107,846 
Property, Franchise and Other Taxes
20,929 
20,926 
Depreciation, Depletion and Amortization
102,747 
93,114 
Total Operating Expenses
363,349 
389,491 
Operating Income
160,560 
160,581 
Other Income (Expense):
 
 
Interest Income
1,258 
702 
Other Income
1,183 
228 
Interest Expense on Long-Term Debt
(22,311)
(22,885)
Other Interest Expense
(790)
(949)
Income Before Income Taxes
139,900 
137,677 
Income Tax Expense
55,160 
55,425 
Net Income Available for Common Stock
84,740 
82,252 
EARNINGS REINVESTED IN THE BUSINESS
 
 
Balance at Beginning of Period
1,614,361 
1,442,617 
Beginning Retained Earnings Unappropriated And Current Period Net Income Loss
1,699,101 
1,524,869 
Dividends on Common Stock
(32,442)
(31,403)
Balance at December 31
$ 1,666,659 
$ 1,493,466 
Earnings Per Common Share, Basic:
 
 
Net Income Available for Common Stock (in dollars per share)
$ 1.01 
$ 0.98 
Earnings Per Common Share, Diluted:
 
 
Net Income Available for Common Stock (in dollars per share)
$ 1.00 
$ 0.97 
Weighted Average Common Shares Outstanding:
 
 
Used in Basic Calculation (shares)
84,208,645 
83,707,687 
Used in Diluted Calculation (shares)
85,118,516 
84,659,001 
Dividends Per Common Share:
 
 
Dividends Declared (in dollars per share)
$ 0.385 
$ 0.375 
Consolidated Statements Of Comprehensive Income (Unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
 
 
Net Income Available for Common Stock
$ 84,740 
$ 82,252 
Other Comprehensive Income (Loss), Before Tax:
 
 
Unrealized Gain (Loss) on Securities Available for Sale Arising During the Period
(412)
2,498 
Unrealized Gain (Loss) on Derivative Financial Instruments Arising During the Period
243,829 
2,778 
Reclassification Adjustment for Realized (Gains) Losses on Derivative Financial Instruments in Net Income
(24,265)
(10,183)
Other Comprehensive Income (Loss), Before Tax
219,152 
(4,907)
Income Tax Expense (Benefit) Related to Unrealized Gain (Loss) on Securities Available for Sale Arising During the Period
(160)
925 
Income Tax Expense (Benefit) Related to Unrealized Gain (Loss) on Derivative Financial Instruments Arising During the Period
102,949 
1,271 
Reclassification Adjustment for Income Tax Benefit (Expense) on Realized Losses (Gains) from Derivative Financial Instruments in Net Income
(10,089)
(4,299)
Income Taxes – Net
92,700 
(2,103)
Other Comprehensive Income (Loss)
126,452 
(2,804)
Comprehensive Income
$ 211,192 
$ 79,448 
Consolidated Balance Sheets (Unaudited) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Sep. 30, 2014
ASSETS
 
 
Property, Plant and Equipment
$ 8,452,022 
$ 8,245,791 
Less - Accumulated Depreciation, Depletion and Amortization
2,598,291 
2,502,700 
Property, Plant and Equipment, Net, Total
5,853,731 
5,743,091 
Current Assets
 
 
Cash and Temporary Cash Investments
43,924 
36,886 
Hedging Collateral Deposits
13,468 1
2,734 1
Receivables – Net of Allowance for Uncollectible Accounts of $35,443 and $31,811, Respectively
166,887 
149,735 
Unbilled Revenue
69,429 
25,663 
Gas Stored Underground
25,555 
39,422 
Materials and Supplies - at average cost
28,425 
27,817 
Other Current Assets
68,053 
54,752 
Deferred Income Taxes
36,421 
40,323 
Total Current Assets
452,162 
377,332 
Other Assets
 
 
Recoverable Future Taxes
164,390 
163,485 
Unamortized Debt Expense
13,716 
14,304 
Other Regulatory Assets
222,609 
224,436 
Deferred Charges
12,524 
14,212 
Other Investments
87,468 
86,788 
Goodwill
5,476 
5,476 
Prepaid Post-Retirement Benefit Costs
39,520 
36,512 
Fair Value of Derivative Financial Instruments
293,314 
72,606 
Other
184 
1,355 
Total Other Assets
839,201 
619,174 
Total Assets
7,145,094 
6,739,597 
Capitalization:
 
 
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and Outstanding - 84,264,485 Shares and 84,157,220 Shares, Respectively
84,264 
84,157 
Paid in Capital
729,733 
716,144 
Earnings Reinvested in the Business
1,666,659 
1,614,361 
Accumulated Other Comprehensive Income (Loss)
122,473 
(3,979)
Total Comprehensive Shareholders’ Equity
2,603,129 
2,410,683 
Long-Term Debt, Net of Current Portion
1,649,000 
1,649,000 
Total Capitalization
4,252,129 
4,059,683 
Current and Accrued Liabilities
 
 
Notes Payable to Banks and Commercial Paper
172,900 
85,600 
Current Portion of Long-Term Debt
0 
0 
Accounts Payable
125,822 
136,674 
Amounts Payable to Customers
35,994 
33,745 
Dividends Payable
32,442 
32,400 
Interest Payable on Long-Term Debt
18,195 
29,960 
Customer Advances
20,436 
19,005 
Customer Security Deposits
16,391 
15,761 
Other Accruals and Current Liabilities
137,285 
136,672 
Fair Value of Derivative Financial Instruments
11,061 
759 
Total Current and Accrued Liabilities
570,526 
490,576 
Deferred Credits
 
 
Deferred Income Taxes
1,580,626 
1,456,283 
Taxes Refundable to Customers
90,303 
91,736 
Unamortized Investment Tax Credit
1,041 
1,145 
Cost of Removal Regulatory Liability
175,941 
173,199 
Other Regulatory Liabilities
96,959 
81,152 
Pension and Other Post-Retirement Liabilities
126,108 
134,202 
Asset Retirement Obligations
118,035 
117,713 
Other Deferred Credits
133,426 
133,908 
Total Deferred Credits
2,322,439 
2,189,338 
Commitments and Contingencies
0 
0 
Total Capitalization and Liabilities
$ 7,145,094 
$ 6,739,597 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Dec. 31, 2014
Sep. 30, 2014
Statement of Financial Position [Abstract]
 
 
Receivables, Allowance for Uncollectible Accounts
$ 35,443 
$ 31,811 
Common Stock, Par Value
$ 1 
$ 1 
Common Stock, Shares Authorized
200,000,000 
200,000,000 
Common Stock, Shares Issued
84,264,485 
84,157,220 
Common Stock, Shares Outstanding
84,264,485 
84,157,220 
Consolidated Statements Of Cash Flows (Unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Dec. 31, 2014
Dec. 31, 2013
OPERATING ACTIVITIES
 
 
Net Income Available for Common Stock
$ 84,740 
$ 82,252 
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
 
 
Depreciation, Depletion and Amortization
102,747 
93,114 
Deferred Income Taxes
33,207 
30,093 
Excess Tax Benefits Associated with Stock-Based Compensation Awards
(7,667)
(3,149)
Stock-Based Compensation
3,078 
2,960 
Other
2,358 
(2,095)
Change in:
 
 
Hedging Collateral Deposits
(10,734)
1,094 
Receivables and Unbilled Revenue
(60,947)
(92,261)
Gas Stored Underground and Materials and Supplies
9,386 
17,977 
Unrecovered Purchased Gas Costs
0 
3,407 
Other Current Assets
(5,635)
12,764 
Accounts Payable
19,378 
39,382 
Amounts Payable to Customers
2,249 
(3,944)
Customer Advances
1,431 
(3,281)
Customer Security Deposits
630 
(493)
Other Accruals and Current Liabilities
(6,416)
12,347 
Other Assets
2,142 
(6,268)
Other Liabilities
19,132 
(7,205)
Net Cash Provided by Operating Activities
189,079 
176,694 
INVESTING ACTIVITIES
 
 
Capital Expenditures
(244,927)
(194,920)
Other
(1,229)
3,615 
Net Cash Used in Investing Activities
(246,156)
(191,305)
Financing Activities
 
 
Changes in Notes Payable to Banks and Commercial Paper
87,300 
0 
Excess Tax Benefits Associated with Stock-Based Compensation Awards
7,667 
3,149 
Dividends Paid on Common Stock
(32,400)
(31,373)
Net Proceeds from Issuance of Common Stock
1,548 
1,857 
Net Cash Provided by (Used) in Financing Activities
64,115 
(26,367)
Net Increase (Decrease) in Cash and Temporary Cash Investments
7,038 
(40,978)
Cash and Temporary Cash Investments at October 1
36,886 
64,858 
Cash and Temporary Cash Investments at December 31
43,924 
23,880 
Supplemental Disclosure of Cash Flow Information, Non-Cash Investing Activities:
 
 
Non-Cash Capital Expenditures
$ 101,664 
$ 52,738 
Summary Of Significant Accounting Policies
Summary Of Significant Accounting Policies
Summary of Significant Accounting Policies
 
Principles of Consolidation.  The Company consolidates all entities in which it has a controlling financial interest.  All significant intercompany balances and transactions are eliminated.
 
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Earnings for Interim Periods.  The Company, in its opinion, has included all adjustments (which consist of only normally recurring adjustments, unless otherwise disclosed in this Form 10-Q) that are necessary for a fair statement of the results of operations for the reported periods. The consolidated financial statements and notes thereto, included herein, should be read in conjunction with the financial statements and notes for the years ended September 30, 2014, 2013 and 2012 that are included in the Company's 2014 Form 10-K.  The consolidated financial statements for the year ended September 30, 2015 will be audited by the Company's independent registered public accounting firm after the end of the fiscal year.
 
The earnings for the three months ended December 31, 2014 should not be taken as a prediction of earnings for the entire fiscal year ending September 30, 2015.  Most of the business of the Utility and Energy Marketing segments is seasonal in nature and is influenced by weather conditions.  Due to the seasonal nature of the heating business in the Utility and Energy Marketing segments, earnings during the winter months normally represent a substantial part of the earnings that those segments are expected to achieve for the entire fiscal year.  The Company’s business segments are discussed more fully in Note 7 – Business Segment Information.
 
Consolidated Statement of Cash Flows.  For purposes of the Consolidated Statement of Cash Flows, the Company considers all highly liquid debt instruments purchased with a maturity of generally three months or less to be cash equivalents.
 
Hedging Collateral Deposits.  This is an account title for cash held in margin accounts funded by the Company to serve as collateral for hedging positions.  In accordance with its accounting policy, the Company does not offset hedging collateral deposits paid or received against related derivative financial instruments liability or asset balances.
 
Gas Stored Underground - Current.  In the Utility segment, gas stored underground – current is carried at lower of cost or market, on a LIFO method.  Gas stored underground – current normally declines during the first and second quarters of the year and is replenished during the third and fourth quarters.  In the Utility segment, the current cost of replacing gas withdrawn from storage is recorded in the Consolidated Statements of Income and a reserve for gas replacement is recorded in the Consolidated Balance Sheets under the caption “Other Accruals and Current Liabilities.”  Such reserve, which amounted to $4.0 million at December 31, 2014, is reduced to zero by September 30 of each year as the inventory is replenished.
 
Property, Plant and Equipment.  In the Company’s Exploration and Production segment, oil and gas property acquisition, exploration and development costs are capitalized under the full cost method of accounting. Under this methodology, all costs associated with property acquisition, exploration and development activities are capitalized, including internal costs directly identified with acquisition, exploration and development activities. The internal costs that are capitalized do not include any costs related to production, general corporate overhead, or similar activities. The Company does not recognize any gain or loss on the sale or other disposition of oil and gas properties unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves of oil and gas attributable to a cost center.
 
Capitalized costs include costs related to unproved properties, which are excluded from amortization until proved reserves are found or it is determined that the unproved properties are impaired.  Such costs amounted to $162.2 million and $141.7 million at December 31, 2014 and September 30, 2014, respectively.  All costs related to unproved properties are reviewed quarterly to determine if impairment has occurred. The amount of any impairment is transferred to the pool of capitalized costs being amortized.
 
Capitalized costs are subject to the SEC full cost ceiling test. The ceiling test, which is performed each quarter, determines a limit, or ceiling, on the amount of property acquisition, exploration and development costs that can be capitalized. The ceiling under this test represents (a) the present value of estimated future net cash flows, excluding future cash outflows associated with settling asset retirement obligations that have been accrued on the balance sheet, using a discount factor of 10%, which is computed by applying prices of oil and gas (as adjusted for hedging) to estimated future production of proved oil and gas reserves as of the date of the latest balance sheet, less estimated future expenditures, plus (b) the cost of unevaluated properties not being depleted, less (c) income tax effects related to the differences between the book and tax basis of the properties. The natural gas and oil prices used to calculate the full cost ceiling are based on an unweighted arithmetic average of the first day of the month oil and gas prices for each month within the twelve-month period prior to the end of the reporting period. If capitalized costs, net of accumulated depreciation, depletion and amortization and related deferred income taxes, exceed the ceiling at the end of any quarter, a permanent impairment is required to be charged to earnings in that quarter.  At December 31, 2014, the ceiling exceeded the book value of the oil and gas properties by approximately $118.7 million.
 
Accumulated Other Comprehensive Income (Loss).  The components of Accumulated Other Comprehensive Income (Loss) and changes for the three months ended December 31, 2014 and 2013, net of related tax effect, are as follows (amounts in parentheses indicate debits) (in thousands): 
 
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
Three Months Ended December 31, 2014
 
 
 
 
Balance at October 1, 2014
$
43,659

$
8,382

$
(56,020
)
$
(3,979
)
Other Comprehensive Gains and Losses Before Reclassifications
140,880

(252
)
—

140,628

Amounts Reclassified From Other Comprehensive Income (Loss)
(14,176
)
—

—

(14,176
)
Balance at December 31, 2014
$
170,363

$
8,130

$
(56,020
)
$
122,473

Three Months Ended December 31, 2013
 
 
 
 
Balance at October 1, 2013
$
30,722

$
6,337

$
(56,293
)
$
(19,234
)
Other Comprehensive Gains and Losses Before Reclassifications
1,507

1,573

—

3,080

Amounts Reclassified From Other Comprehensive Income (Loss)
(5,884
)
—

—

(5,884
)
Balance at December 31, 2013
$
26,345

$
7,910

$
(56,293
)
$
(22,038
)
 
 
 
 
 

Reclassifications Out of Accumulated Other Comprehensive Income (Loss).  The details about the reclassification adjustments out of accumulated other comprehensive income (loss) for the three months ended December 31, 2014 and 2013 are as follows (amounts in parentheses indicate debits to the income statement) (in thousands):
Details About Accumulated Other Comprehensive Income (Loss) Components
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss)
Affected Line Item in the Statement Where Net Income is Presented
 
Three Months Ended 
 December 31,
 
 
2014
2013
 
Gains (Losses) on Derivative Financial Instrument Cash Flow Hedges:
 
 
 
     Commodity Contracts

$20,036


$9,787

Operating Revenues
     Commodity Contracts
4,229

396

Purchased Gas
 
24,265

10,183

Total Before Income Tax
 
(10,089
)
(4,299
)
Income Tax Expense
 

$14,176


$5,884

Net of Tax

Other Current Assets.  The components of the Company’s Other Current Assets are as follows (in thousands):
                            
At December 31, 2014
 
At September 30, 2014
 
 
 
 
Prepayments
$
15,043

 
$
10,079

Prepaid Property and Other Taxes
15,881

 
13,743

Federal Income Taxes Receivable
—

 
8,211

Fair Values of Firm Commitments
16,006

 
—

Regulatory Assets
21,123

 
22,719

 
$
68,053

 
$
54,752


 
Other Accruals and Current Liabilities.  The components of the Company’s Other Accruals and Current Liabilities are as follows (in thousands):
                            
At December 31, 2014
 
At September 30, 2014
 
 
 
 
Accrued Capital Expenditures
$
75,613

 
$
80,348

Regulatory Liabilities
17,027

 
18,072

Reserve for Gas Replacement
4,028

 
—

Federal Income Taxes Payable
1,697

 
—

State Income Taxes Payable
7,608

 
5,798

Other
31,312

 
32,454

 
$
137,285

 
$
136,672


 
Earnings Per Common Share.  Basic earnings per common share is computed by dividing income available for common stock by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.  For purposes of determining earnings per common share, the potentially dilutive securities the Company has outstanding are stock options, SARs, restricted stock units and performance shares.  The diluted weighted average shares outstanding shown on the Consolidated Statements of Income reflects the potential dilution as a result of these securities as determined using the Treasury Stock Method.  Stock options, SARs, restricted stock units and performance shares that are antidilutive are excluded from the calculation of diluted earnings per common share.  There were 2,461 and 272 securities excluded as being antidilutive for the quarters ended December 31, 2014 and December 31, 2013, respectively.
 
Stock-Based Compensation.  The Company granted 107,044 performance shares during the quarter ended December 31, 2014. The weighted average fair value of such performance shares was $65.26 per share for the quarter ended December 31, 2014. Performance shares are an award constituting units denominated in common stock of the Company, the number of which may be adjusted over a performance cycle based upon the extent to which performance goals have been satisfied.  Earned performance shares may be distributed in the form of shares of common stock of the Company, an equivalent value in cash or a combination of cash and shares of common stock of the Company, as determined by the Company. The performance shares do not entitle the participant to receive dividends during the vesting period.
 
Half of the performance shares granted during the quarter ended December 31, 2014 must meet a performance goal related to relative return on capital over the performance cycle of October 1, 2014 to September 30, 2017.  The performance goal over the performance cycle is the Company’s total return on capital relative to the total return on capital of other companies in a group selected by the Compensation Committee (“Report Group”).  Total return on capital for a given company means the average of the Report Group companies’ returns on capital for each twelve month period corresponding to each of the Company’s fiscal years during the performance cycle, based on data reported for the Report Group companies in the Bloomberg database.  The number of these performance shares that will vest and be paid will depend upon the Company’s performance relative to the Report Group and not upon the absolute level of return achieved by the Company.  The fair value of these performance shares is calculated by multiplying the expected number of shares that will be issued by the average market price of Company common stock on the date of grant reduced by the present value of forgone dividends over the vesting term of the award.  The fair value is recorded as compensation expense over the vesting term of the award.  The other half of the performance shares granted during the quarter ended December 31, 2014 must meet a performance goal related to relative total shareholder return over the performance cycle of October 1, 2014 to September 30, 2017.  The performance goal over the performance cycle is the Company’s three-year total shareholder return relative to the three-year total shareholder return of the other companies in the Report Group.  Three-year shareholder return for a given company will be based on the data reported for that company (with the starting and ending stock prices over the performance cycle calculated as the average closing stock price for the prior calendar month and with dividends reinvested in that company’s securities at each ex-dividend date) in the Bloomberg database.  The number of these total shareholder return performance shares ("TSR performance shares") that will vest and be paid will depend upon the Company’s performance relative to the Report Group and not upon the absolute level of return achieved by the Company.  The fair value price at the date of grant for the TSR performance shares is determined using a Monte Carlo simulation technique, which includes a reduction in value for the present value of forgone dividends over the vesting term of the award.  This price is multiplied by the number of TSR performance shares awarded, the result of which is recorded as compensation expense over the vesting term of the award.
 
The Company granted 88,899 non-performance based restricted stock units during the quarter ended December 31, 2014.  The weighted average fair value of such non-performance based restricted stock units was $64.04 per share for the quarter ended December 31, 2014. Restricted stock units represent the right to receive shares of common stock of the Company (or the equivalent value in cash or a combination of cash and shares of common stock of the Company, as determined by the Company) at the end of a specified time period. These non-performance based restricted stock units do not entitle the participant to receive dividends during the vesting period. The accounting for non-performance based restricted stock units is the same as the accounting for restricted share awards, except that the fair value at the date of grant of the restricted stock units must be reduced by the present value of forgone dividends over the vesting term of the award.
 
No stock options, SARs or restricted share awards were granted by the Company during the quarter ended December 31, 2014.

New Authoritative Accounting and Financial Reporting Guidance. In May 2014, the FASB issued authoritative guidance regarding revenue recognition. The authoritative guidance provides a single, comprehensive revenue recognition model for all contracts with customers to improve comparability. The revenue standard contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. This authoritative guidance will be effective as of the Company's first quarter of fiscal 2018 and early adoption is not permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements and disclosures.
In June 2014, the FASB issued authoritative guidance regarding accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the employee has completed the requisite service period. This authoritative guidance requires that such performance targets that affect vesting be treated as performance conditions, meaning that the performance target should not be factored in the calculation of the award at the grant date. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved. This authoritative guidance will be effective as of the Company's first quarter of fiscal 2017, with early adoption permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements.
Fair Value Measurements
Fair Value Measurements
Fair Value Measurements
 
The FASB authoritative guidance regarding fair value measurements establishes a fair-value hierarchy and prioritizes the inputs used in valuation techniques that measure fair value. Those inputs are prioritized into three levels. Level 1 inputs are unadjusted quoted prices in active markets for assets or liabilities that the Company can access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly at the measurement date. Level 3 inputs are unobservable inputs for the asset or liability at the measurement date. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.
 
The following table sets forth, by level within the fair value hierarchy, the Company's financial assets and liabilities (as applicable) that were accounted for at fair value on a recurring basis as of December 31, 2014 and September 30, 2014.  Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The fair value presentation for over the counter swaps combines gas and oil swaps because a significant number of the counterparties enter into both gas and oil swap agreements with the Company.  

Recurring Fair Value Measures
At fair value as of December 31, 2014
(Thousands of Dollars)   
Level 1
 
Level 2
 
Level 3
 
Netting Adjustments(1)
 
Total(1)
Assets:
 

 
 

 
 

 
 

 
 

Cash Equivalents – Money Market Mutual Funds
$
20,540

 
$
—

 
$
—

 
$
—

 
$
20,540

Derivative Financial Instruments:
 

 
 

 
 

 
 

 
 

Commodity Futures Contracts – Gas
6,504

 
—

 
—

 
(6,504
)
 
—

Over the Counter Swaps – Gas and Oil
—

 
288,571

 
5,337

 
(594
)
 
293,314

Other Investments:
 

 
 

 
 

 
 

 
 

Balanced Equity Mutual Fund
36,150

 
—

 
—

 
—

 
36,150

Common Stock – Financial Services Industry
6,574

 
—

 
—

 
—

 
6,574

Other Common Stock
476

 
—

 
—

 
—

 
476

Hedging Collateral Deposits
13,468

 
—

 
—

 
—

 
13,468

Total                                           
$
83,712

 
$
288,571

 
$
5,337

 
$
(7,098
)
 
$
370,522

 
 
 
 
 
 
 
 
 
 
Liabilities:
 

 
 

 
 

 
 

 
 

Derivative Financial Instruments:
 

 
 

 
 

 
 

 
 

Commodity Futures Contracts – Gas
$
16,812

 
$
—

 
$
—

 
$
(6,504
)
 
$
10,308

Over the Counter Swaps – Gas and Oil
—

 
1,347

 
—

 
(594
)
 
753

Total
$
16,812

 
$
1,347

 
$
—

 
$
(7,098
)
 
$
11,061

 
 
 
 
 
 
 
 
 
 
Total Net Assets/(Liabilities)
$
66,900

 
$
287,224

 
$
5,337

 
$
—

 
$
359,461

 
Recurring Fair Value Measures
At fair value as of September 30, 2014
(Thousands of Dollars)   
Level 1
 
Level 2
 
Level 3
 
Netting Adjustments(1)
 
Total(1)
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


(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.
 
Derivative Financial Instruments
 
At December 31, 2014 and September 30, 2014, the derivative financial instruments reported in Level 1 consist of natural gas NYMEX and ICE futures contracts used in the Company’s Energy Marketing segment. Hedging collateral deposits of $13.5 million at December 31, 2014 and $2.7 million at September 30, 2014, which are associated with these futures contracts, have been reported in Level 1 as well. The derivative financial instruments reported in Level 2 at December 31, 2014 and September 30, 2014 consist of natural gas price swap agreements used in the Company’s Exploration and Production and Energy Marketing segments and the majority of the crude oil price swap agreements used in the Company’s Exploration and Production segment. The fair value of the Level 2 price swap agreements is based on an internal, discounted cash flow model that uses observable inputs (i.e. LIBOR based discount rates and basis differential information, if applicable, at active natural gas and crude oil trading markets). The derivative financial instruments reported in Level 3 consist of a portion of the crude oil price swap agreements used in the Company’s Exploration and Production segment at December 31, 2014 and September 30, 2014.  The fair value of the Level 3 crude oil price swap agreements is based on an internal, discounted cash flow model that uses both observable (i.e. LIBOR based discount rates) and unobservable inputs (i.e. basis differential information of crude oil trading markets with low trading volume). 
 
The significant unobservable input used in the fair value measurement of a portion of the Company’s over-the-counter crude oil swaps is the basis differential between Midway Sunset oil and NYMEX contracts.  Significant changes in the assumed basis differential could result in a significant change in value of the derivative financial instruments.  At December 31, 2014, it was assumed that Midway Sunset oil was 96.2% of NYMEX.  This is based on a historical twelve month average of Midway Sunset oil sales verses NYMEX settlements.  During this twelve-month period, the price of Midway Sunset oil ranged from 88.3% to 100.6% of NYMEX.  If the price of Midway Sunset oil relative to NYMEX used in the fair value measurement calculation had been 10 percentage points higher, the fair value of the Level 3 crude oil price swap agreements asset would have been approximately $0.8 million lower at December 31, 2014.  If the price of Midway Sunset oil relative to NYMEX used in the fair value measurement had been 10 percentage points lower, the fair value measurement of the Level 3 crude oil price swap agreements asset would have been approximately $0.8 million higher at December 31, 2014.  These calculated amounts are based solely on basis differential changes and do not take into account any other changes to the fair value measurement calculation. 
 
The accounting rules for fair value measurements and disclosures require consideration of the impact of nonperformance risk (including credit risk) from a market participant perspective in the measurement of the fair value of assets and liabilities.  At December 31, 2014, the Company determined that nonperformance risk would have no material impact on its financial position or results of operation.  To assess nonperformance risk, the Company considered information such as any applicable collateral posted, master netting arrangements, and applied a market-based method by using the counterparty (for an asset) or the Company’s (for a liability) credit default swaps rates.
 
The tables listed below provide reconciliations of the beginning and ending net balances for assets and liabilities measured at fair value and classified as Level 3 for the quarters ended December 31, 2014 and 2013, respectively. For the quarters ended December 31, 2014 and December 31, 2013, no transfers in or out of Level 1 or Level 2 occurred.  There were no purchases or sales of derivative financial instruments during the periods presented in the tables below.  All settlements of the derivative financial instruments are reflected in the Gains/Losses Realized and Included in Earnings column of the tables below (amounts in parentheses indicate credits in the derivative asset/liability accounts). 
 
Fair Value Measurements Using Unobservable Inputs (Level 3)
(Thousands of Dollars)   
 
Total Gains/Losses 
 
 
 
October 1, 2014
Gains/Losses Realized and Included in Earnings
Gains/Losses Unrealized and Included in Other Comprehensive Income (Loss)
Transfer In/Out of Level 3
December 31, 2014
Derivative Financial Instruments(2)
$
1,368

$
(3,855
)
(1) 
$
7,824

$
—

$
5,337

 
(1) 
Amounts are reported in Operating Revenues in the Consolidated Statement of Income for the three months ended December 31, 2014. 
(2) 
Derivative Financial Instruments are shown on a net basis.
 
 
 
 
 
 
 

 
Fair Value Measurements Using Unobservable Inputs (Level 3)
(Thousands of Dollars)   
 
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
December 31, 2013
Derivative Financial Instruments(2)
$
(5,190
)
$
281

(1) 
$
3,067

$
—

$
(1,842
)


(1) 
Amounts are reported in Operating Revenues in the Consolidated Statement of Income for the three months ended December 31, 2013. 
(2) 
Derivative Financial Instruments are shown on a net basis.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Instruments
Financial Instruments
Financial Instruments
 
Long-Term Debt.  The fair market value of the Company’s debt, as presented in the table below, was determined using a discounted cash flow model, which incorporates the Company’s credit ratings and current market conditions in determining the yield, and subsequently, the fair market value of the debt.  Based on these criteria, the fair market value of long-term debt, including current portion, was as follows (in thousands): 
 
December 31, 2014
 
September 30, 2014
 
Carrying Amount
 
Fair Value
 
Carrying Amount
 
Fair Value
Long-Term Debt
$
1,649,000

 
$
1,751,498

 
$
1,649,000

 
$
1,775,715


 
The fair value amounts are not intended to reflect principal amounts that the Company will ultimately be required to pay. Carrying amounts for other financial instruments recorded on the Company’s Consolidated Balance Sheets approximate fair value. The fair value of long-term debt was calculated using observable inputs (U.S. Treasuries/LIBOR for the risk free component and company specific credit spread information – generally obtained from recent trade activity in the debt).  As such, the Company considers the debt to be Level 2.
 
Any temporary cash investments, notes payable to banks and commercial paper are stated at cost. Temporary cash investments are considered Level 1, while notes payable to banks and commercial paper are considered to be Level 2.  Given the short-term nature of the notes payable to banks and commercial paper, the Company believes cost is a reasonable approximation of fair value.
 
Other Investments.  Investments in life insurance are stated at their cash surrender values or net present value as discussed below. Investments in an equity mutual fund and the stock of an insurance company (marketable equity securities), as discussed below, are stated at fair value based on quoted market prices.
 
Other investments include cash surrender values of insurance contracts (net present value in the case of split-dollar collateral assignment arrangements) and marketable equity securities. The values of the insurance contracts amounted to $44.3 million at December 31, 2014 and $44.4 million at September 30, 2014. The fair value of the equity mutual fund was $36.1 million at December 31, 2014 and $35.3 million at September 30, 2014. The gross unrealized gain on this equity mutual fund was $8.0 million at December 31, 2014 and $8.4 million at September 30, 2014.  The fair value of the stock of an insurance company was $6.6 million at both December 31, 2014 and September 30, 2014. The gross unrealized gain on this stock was $4.5 million at both December 31, 2014 and September 30, 2014. The insurance contracts and marketable equity securities are primarily informal funding mechanisms for various benefit obligations the Company has to certain employees.
 
Derivative Financial Instruments.  The Company uses derivative financial instruments to manage commodity price risk in the Exploration and Production segment as well as the Energy Marketing segment. The Company enters into futures contracts and over-the-counter swap agreements for natural gas and crude oil to manage the price risk associated with forecasted sales of gas and oil. These instruments are accounted for as cash flow hedges. The Company also enters into futures contracts and swaps, which are accounted for as cash flow hedges, to manage the price risk associated with forecasted gas purchases. The Company enters into futures contracts and swaps to mitigate risk associated with fixed price sales commitments, fixed price purchase commitments, and the decline in value of natural gas held in storage. These instruments are accounted for as fair value hedges. The duration of the Company’s combined cash flow and fair value hedges does not typically exceed 5 years. The Exploration and Production segment holds the majority of the Company’s derivative financial instruments. The derivative financial instruments held by the Energy Marketing segment are not considered to be material to the Company.

The Company has presented its net derivative assets and liabilities as “Fair Value of Derivative Financial Instruments” on its Consolidated Balance Sheets at December 31, 2014 and September 30, 2014.  All of the derivative financial instruments reported on those line items relate to commodity contracts.
 
Cash Flow Hedges
 
For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (loss) and reclassified into earnings in the period or periods during which the hedged transaction affects earnings.  Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. 

As of December 31, 2014, the Company had the following commodity derivative contracts (swaps and futures contracts) outstanding:
Commodity
Units

 
Natural Gas
184.0

 Bcf (short positions)
Natural Gas
4.0

 Bcf (long positions)
Crude Oil
2,898,000

 Bbls (short positions)

As of December 31, 2014, the Company had $295.7 million ($170.4 million after tax) of net hedging gains included in the accumulated other comprehensive income (loss) balance. It is expected that $173.7 million ($100.1 million after tax) of such unrealized gains will be reclassified into the Consolidated Statement of Income within the next 12 months as the expected sales of the underlying commodities occur.
 
Refer to Note 1, under Accumulated Other Comprehensive Income (Loss), for the after-tax gain (loss) pertaining to derivative financial instruments.

The Effect of Derivative Financial Instruments on the Statement of Financial Performance for the
Three Months Ended December 31, 2014 and 2013 (Thousands of Dollars)
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 Three Months Ended December 31,
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 Three Months Ended December 31,
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 Three Months Ended December 31,
 
2014
2013
 
2014
2013
 
2014
2013
Commodity Contracts
$
240,023

$
5,118

Operating Revenue
$
20,036

$
9,787

Operating Revenue
$
1,460

$
1,434

Commodity Contracts
$
3,806

$
(2,340
)
Purchased Gas
$
4,229

$
396

Not Applicable
$
—

$
—

Total
$
243,829

$
2,778

 
$
24,265

$
10,183

 
$
1,460

$
1,434

 
 
 
 
 
 
 
 
 

Fair Value Hedges
 
The Company utilizes fair value hedges to mitigate risk associated with fixed price sales commitments, fixed price purchase commitments, and the decline in the value of certain natural gas held in storage. With respect to fixed price sales commitments, the Company enters into long positions to mitigate the risk of price increases for natural gas supplies that could occur after the Company enters into fixed price sales agreements with its customers. With respect to fixed price purchase commitments, the Company enters into short positions to mitigate the risk of price decreases that could occur after the Company locks into fixed price purchase deals with its suppliers. With respect to storage hedges, the Company enters into short positions to mitigate the risk of price decreases that could result in a lower of cost or market writedown of the value of natural gas in storage that is recorded in the Company’s financial statements. As of December 31, 2014, the Company’s Energy Marketing segment had fair value hedges covering approximately 17.5 Bcf (17.2 Bcf of fixed price sales commitments, 0.2 Bcf of fixed price purchase commitments and 0.1 Bcf of commitments related to the withdrawal of storage gas). For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative as well as the offsetting gain or loss on the hedged item attributable to the hedged risk completely offset each other in current earnings, as shown below.

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 Three Months Ended December 31, 2014 (In Thousands)
Amount of Gain or (Loss) on the Hedged Item Recognized in the Consolidated Statement of Income for the Three Months Ended December 31, 2014 (In Thousands)
Commodity Contracts
Operating Revenues
$
(13,338
)
$
13,338

Commodity Contracts
Purchased Gas
$
197

$
(197
)
 
 
$
(13,141
)
$
13,141


 
Credit Risk
 
The Company may be exposed to credit risk on any of the derivative financial instruments that are in a gain position. Credit risk relates to the risk of loss that the Company would incur as a result of nonperformance by counterparties pursuant to the terms of their contractual obligations. To mitigate such credit risk, management performs a credit check, and then on a quarterly basis monitors counterparty credit exposure. The majority of the Company’s counterparties are financial institutions and energy traders. The Company has over-the-counter swap positions with sixteen counterparties of which fourteen are in a net gain position.   On average, the Company had $20.9 million of credit exposure per counterparty in a gain position at December 31, 2014. The maximum credit exposure per counterparty in a gain position at December 31, 2014 was $54.6 million. As of December 31, 2014, no collateral was received from the counterparties by the Company.  The Company’s gain position on such derivative financial instruments had not exceeded the established thresholds at which the counterparties would be required to post collateral, nor had the counterparties’ credit ratings declined to levels at which the counterparties were required to post collateral.
 
As of December 31, 2014, twelve of the sixteen counterparties to the Company’s outstanding derivative instrument contracts (specifically the over-the-counter swaps) had a common credit-risk related contingency feature. In the event the Company’s credit rating increases or falls below a certain threshold (applicable debt ratings), the available credit extended to the Company would either increase or decrease. A decline in the Company’s credit rating, in and of itself, would not cause the Company to be required to increase the level of its hedging collateral deposits (in the form of cash deposits, letters of credit or treasury debt instruments). If the Company’s outstanding derivative instrument contracts were in a liability position (or if the liability were larger) and/or the Company’s credit rating declined, then additional hedging collateral deposits may be required.  At December 31, 2014, the fair market value of the derivative financial instrument assets with a credit-risk related contingency feature was $218.3 million according to the Company’s internal model (discussed in Note 2 — Fair Value Measurements).  At December 31, 2014, the fair market value of the derivative financial instrument liabilities with a credit-risk related contingency feature was $0.3 million according to the Company’s internal model  (discussed in Note 2 — Fair Value Measurements).  For its over-the-counter swap agreements, no hedging collateral deposits were required to be posted by the Company at December 31, 2014.    
 
For its exchange traded futures contracts, the Company was required to post $13.5 million in hedging collateral deposits as of December 31, 2014.   As these are exchange traded futures contracts, there are no specific credit-risk related contingency features. The Company posts hedging collateral based on open positions and margin requirements it has with its counterparties.
 
The Company’s requirement to post hedging collateral deposits and the Company's right to receive hedging collateral deposits is based on the fair value determined by the Company’s counterparties, which may differ from the Company’s assessment of fair value. Hedging collateral deposits may also include closed derivative positions in which the broker has not cleared the cash from the account to offset the derivative liability. The Company records liabilities related to closed derivative positions in Other Accruals and Current Liabilities on the Consolidated Balance Sheet. These liabilities are relieved when the broker clears the cash from the hedging collateral deposit account. This is discussed in Note 1 under Hedging Collateral Deposits.
Income Taxes
Income Taxes
Income Taxes
 
The components of federal and state income taxes included in the Consolidated Statements of Income are as follows (in thousands): 
                                                         
Three Months Ended 
 December 31,
                                                         
2014
 
2013
Current Income Taxes 
 

 
 

Federal                                              
$
16,528

 
$
19,707

State                                                  
5,425

 
5,625

 
 
 
 
Deferred Income Taxes                                
 

 
 

Federal                                               
26,193

 
23,206

State                                                    
7,014

 
6,887

 
55,160

 
55,425

Deferred Investment Tax Credit                            
(104
)
 
(109
)
 
 
 
 
Total Income Taxes                                      
$
55,056

 
$
55,316

Presented as Follows:
 

 
 

Other Income
(104
)
 
(109
)
Income Tax Expense
55,160

 
55,425

 
 
 
 
Total Income Taxes
$
55,056

 
$
55,316



Total income taxes as reported differ from the amounts that were computed by applying the federal income tax rate to income before income taxes.  The following is a reconciliation of this difference (in thousands): 
 
Three Months Ended 
 December 31,
 
2014
 
2013
U.S. Income Before Income Taxes
$
139,796

 
$
137,568

 
 

 
 

Income Tax Expense, Computed at U.S. Federal Statutory Rate of 35%
$
48,929

 
$
48,149

 
 
 
 
Increase (Reduction) in Taxes Resulting from:
 

 
 

State Income Taxes
8,085

 
8,133

Miscellaneous
(1,958
)
 
(966
)
 
 
 
 
Total Income Taxes
$
55,056

 
$
55,316


 
On December 19, 2014, President Obama signed into law the Tax Increase Prevention Act of 2014, which did not have a significant impact on income tax expense.
Capitalization
Capitalization
Capitalization
 
Common Stock.  During the three months ended December 31, 2014, the Company issued 36,000 original issue shares of common stock as a result of stock option and SARs exercises and 42,490 original issue shares of common stock for restricted stock units that vested.  In addition, the Company issued 25,426 original issue shares of common stock for the Direct Stock Purchase and Dividend Reinvestment Plan and 20,523 original issue shares of common stock for the Company’s 401(k) plans.  The Company also issued 3,850 original issue shares of common stock to the non-employee directors of the Company who receive compensation under the Company’s 2009 Non-Employee Director Equity Compensation Plan, as partial consideration for the directors’ services during the three months ended December 31, 2014.  Holders of stock options, SARs, restricted share awards or restricted stock units will often tender shares of common stock to the Company for payment of option exercise prices and/or applicable withholding taxes.  During the three months ended December 31, 2014, 21,024 shares of common stock were tendered to the Company for such purposes.  The Company considers all shares tendered as cancelled shares restored to the status of authorized but unissued shares, in accordance with New Jersey law.
 
Current Portion of Long-Term Debt.    None of the Company’s long-term debt at December 31, 2014 will mature within the following twelve-month period.
Commitments And Contingencies
Commitments And Contingencies
Commitments and Contingencies
 
Environmental Matters.  The Company is subject to various federal, state and local laws and regulations relating to the protection of the environment.  The Company has established procedures for the ongoing evaluation of its operations to identify potential environmental exposures and to comply with regulatory requirements.  It is the Company’s policy to accrue estimated environmental clean-up costs (investigation and remediation) when such amounts can reasonably be estimated and it is probable that the Company will be required to incur such costs. 
    
At December 31, 2014, the Company has estimated its remaining clean-up costs related to former manufactured gas plant sites and third party waste disposal sites will be approximately $14.2 million.  The Company expects to recover such environmental clean-up costs through rate recovery over a period of approximately 13 years.

The Company's estimated liability for clean-up costs discussed above includes a $12.5 million estimated liability to remediate a former manufactured gas plant site located in New York. In February 2009, the Company received approval from the NYDEC of a Remedial Design Work Plan (RDWP) for this site. In October 2010, the Company submitted a RDWP addendum to conduct additional Preliminary Design Investigation field activities necessary to design a successful remediation. As a result of this work, the Company submitted to the NYDEC a proposal to amend the NYDEC’s Record of Decision remedy for the site.  In April 2013, the NYDEC approved the Company’s proposed amendment.  Final remedial design work for the site has begun. 
 
The Company is currently not aware of any material additional exposure to environmental liabilities.  However, changes in environmental laws and regulations, new information or other factors could have an adverse financial impact on the Company.
 
Other.  The Company is involved in other litigation and regulatory matters arising in the normal course of business.  These other matters may include, for example, negligence claims and tax, regulatory or other governmental audits, inspections, investigations and other proceedings.  These matters may involve state and federal taxes, safety, compliance with regulations, rate base, cost of service and purchased gas cost issues, among other things.  While these other matters arising in the normal course of business could have a material effect on earnings and cash flows in the period in which they are resolved, an estimate of the possible loss or range of loss, if any, cannot be made at this time.
Business Segment Information
Business Segment Information
Business Segment Information    
 
The Company reports financial results for five segments: Exploration and Production, Pipeline and Storage, Gathering, Utility and Energy Marketing.  The division of the Company’s operations into reportable segments is based upon a combination of factors including differences in products and services, regulatory environment and geographic factors.
 
The data presented in the tables below reflect financial information for the segments and reconciliations to consolidated amounts.  As stated in the 2014 Form 10-K, the Company evaluates segment performance based on income before discontinued operations, extraordinary items and cumulative effects of changes in accounting (when applicable).  When these items are not applicable, the Company evaluates performance based on net income.  There have not been any changes in the basis of segmentation nor in the basis of measuring segment profit or loss from those used in the Company’s 2014 Form 10-K.  A listing of segment assets at December 31, 2014 and September 30, 2014 is shown in the tables below.  
Quarter Ended December 31, 2014 (Thousands)
 
 
 
 
 
 
 
Exploration and Production
Pipeline and Storage
Gathering
Utility
Energy Marketing
Total Reportable Segments
All Other
Corporate and Intersegment Eliminations
Total Consolidated
Revenue from External Customers
$204,665
$51,745
$146
$210,073
$56,166
$522,795
$884
$230
$523,909

 

 
 





Intersegment Revenues
$—
$21,461
$24,428
$4,534
$206
$50,629
$—
$(50,629)
$—

 

 
 





Segment Profit: Net Income (Loss)
$26,720
$20,778
$11,623
$22,594
$2,826
$84,541
$(6)
$205
$84,740

 


 





 
 
 
 
 
 
 
 
 
 
(Thousands)
Exploration and Production
Pipeline and Storage
Gathering
Utility
Energy Marketing
Total Reportable Segments
All Other
Corporate and Intersegment Eliminations
Total Consolidated
 
 
 
 
 
 
 
 
 
 
Segment Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At December 31, 2014
$3,346,609
$1,400,955
$352,464
$1,942,168
$103,985
$7,146,181
$76,960
$(78,047)
$7,145,094
 
 
 
 
 
 
 
 
 
 
At September 30, 2014
$3,100,514
$1,367,181
$326,662
$1,862,850
$76,238
$6,733,445
$86,460
$(80,308)
$6,739,597

Quarter Ended December 31, 2013 (Thousands)
 
 
 
 
 
 
 
Exploration and Production
Pipeline and Storage
Gathering
Utility
Energy Marketing
Total Reportable Segments
All Other
Corporate and Intersegment Eliminations
Total Consolidated




 





Revenue from External Customers
$193,046
$51,212
$235
$230,453
$73,159
$548,105
$1,700
$267
$550,072

 

 
 





Intersegment Revenues
$—
$20,739
$14,350
$4,706
$255
$40,050
$—
$(40,050)
$—

 
 
 
 
 
 
 
 
 
Segment Profit: Net Income (Loss)
$31,097
$19,138
$6,147
$24,215
$1,604
$82,201
$675
$(624)
$82,252

 
 
 
 
 
 
 
 
 
 
Retirement Plan And Other Post-Retirement Benefits
Retirement Plan and Other Post-Retirement Benefits
Retirement Plan and Other Post-Retirement Benefits
 
Components of Net Periodic Benefit Cost (in thousands):
 
 
Retirement Plan
 
Other Post-Retirement Benefits
Three Months Ended December 31,
2014
2013
 
2014
2013





 




Service Cost
$
3,012

$
2,997

 
$
673

$
735

Interest Cost
10,304

10,893

 
4,821

5,327

Expected Return on Plan Assets
(14,904
)
(14,993
)
 
(8,522
)
(9,356
)
Amortization of Prior Service Cost (Credit)
46

52

 
(478
)
(534
)
Amortization of Losses
9,032

9,002

 
1,037

661

Net Amortization and Deferral for Regulatory Purposes (Including Volumetric Adjustments) (1)
1,292

1,578

 
4,920

6,060






 




Net Periodic Benefit Cost
$
8,782

$
9,529

 
$
2,451

$
2,893

 
 
 
 
 
 
(1) 
The Company’s policy is to record retirement plan and other post-retirement benefit costs in the Utility segment on a volumetric basis to reflect the fact that the Utility segment experiences higher throughput of natural gas in the winter months and lower throughput of natural gas in the summer months.
 
Employer Contributions.    During the three months ended December 31, 2014, the Company contributed $16.1 million to its tax-qualified, noncontributory defined-benefit retirement plan (Retirement Plan) and $0.5 million to its VEBA trusts and 401(h) accounts for its other post-retirement benefits.  In the remainder of 2015, the Company expects its contributions to the Retirement Plan to be in the range of $2.0 million to $6.0 million.  The Company is continually evaluating its future contributions in light of the provisions of the Act. In the remainder of 2015, the Company expects to contribute approximately $1.5 million to its VEBA trusts and 401(h) accounts.
Regulatory Matters
Regulatory Matters
Regulatory Matters
    
Following negotiations and other proceedings, on December 6, 2013, Distribution Corporation filed an agreement, also executed by the Department of Public Service and intervenors, extending existing rates through, at a minimum, September 30, 2015. Although customer rates were not changed, the parties agreed that the allowed rate of return on equity would be set, for ratemaking purposes, at 9.1%.  Following conventional practice in New York, the agreement authorizes an “earnings sharing mechanism” (“ESM”).  The ESM distributes earnings above the allowed rate of return as follows:  from 9.5% to 10.5%, 50% would be allocated to shareholders, and 50% will be deferred for the benefit of customers; above 10.5%, 20% would be allocated to shareholders and 80% will be deferred for the benefit of customers.  The agreement further authorizes, and rates reflect, an increase in Distribution Corporation’s pipeline replacement spending by $8.2 million per year.  The agreement contains other terms and conditions of service that are customary for settlement agreements recently approved by the NYPSC.  A $7.5 million refund provision was passed back to ratepayers during 2014 after the NYPSC approved the settlement agreement without modification in an order issued on May 8, 2014.
Summary Of Significant Accounting Policies (Policy)
Principles Of Consolidation 
Principles of Consolidation.  The Company consolidates all entities in which it has a controlling financial interest.  All significant intercompany balances and transactions are eliminated.
 
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.
Earnings For Interim Periods 
Earnings for Interim Periods.  The Company, in its opinion, has included all adjustments (which consist of only normally recurring adjustments, unless otherwise disclosed in this Form 10-Q) that are necessary for a fair statement of the results of operations for the reported periods. The consolidated financial statements and notes thereto, included herein, should be read in conjunction with the financial statements and notes for the years ended September 30, 2014, 2013 and 2012 that are included in the Company's 2014 Form 10-K.  The consolidated financial statements for the year ended September 30, 2015 will be audited by the Company's independent registered public accounting firm after the end of the fiscal year.
 
The earnings for the three months ended December 31, 2014 should not be taken as a prediction of earnings for the entire fiscal year ending September 30, 2015.  Most of the business of the Utility and Energy Marketing segments is seasonal in nature and is influenced by weather conditions.  Due to the seasonal nature of the heating business in the Utility and Energy Marketing segments, earnings during the winter months normally represent a substantial part of the earnings that those segments are expected to achieve for the entire fiscal year.  The Company’s business segments are discussed more fully in Note 7 – Business Segment Information.
Consolidated Statement Of Cash Flows 
Consolidated Statement of Cash Flows.  For purposes of the Consolidated Statement of Cash Flows, the Company considers all highly liquid debt instruments purchased with a maturity of generally three months or less to be cash equivalents.
Hedging Collateral Deposits 
Hedging Collateral Deposits.  This is an account title for cash held in margin accounts funded by the Company to serve as collateral for hedging positions.  In accordance with its accounting policy, the Company does not offset hedging collateral deposits paid or received against related derivative financial instruments liability or asset balances.
Gas Stored Underground - Current 
Gas Stored Underground - Current.  In the Utility segment, gas stored underground – current is carried at lower of cost or market, on a LIFO method.  Gas stored underground – current normally declines during the first and second quarters of the year and is replenished during the third and fourth quarters.  In the Utility segment, the current cost of replacing gas withdrawn from storage is recorded in the Consolidated Statements of Income and a reserve for gas replacement is recorded in the Consolidated Balance Sheets under the caption “Other Accruals and Current Liabilities.”  Such reserve, which amounted to $4.0 million at December 31, 2014, is reduced to zero by September 30 of each year as the inventory is replenished.
Property, Plant and Equipment 
Property, Plant and Equipment.  In the Company’s Exploration and Production segment, oil and gas property acquisition, exploration and development costs are capitalized under the full cost method of accounting. Under this methodology, all costs associated with property acquisition, exploration and development activities are capitalized, including internal costs directly identified with acquisition, exploration and development activities. The internal costs that are capitalized do not include any costs related to production, general corporate overhead, or similar activities. The Company does not recognize any gain or loss on the sale or other disposition of oil and gas properties unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves of oil and gas attributable to a cost center.
 
Capitalized costs include costs related to unproved properties, which are excluded from amortization until proved reserves are found or it is determined that the unproved properties are impaired.  Such costs amounted to $162.2 million and $141.7 million at December 31, 2014 and September 30, 2014, respectively.  All costs related to unproved properties are reviewed quarterly to determine if impairment has occurred. The amount of any impairment is transferred to the pool of capitalized costs being amortized.
 
Capitalized costs are subject to the SEC full cost ceiling test. The ceiling test, which is performed each quarter, determines a limit, or ceiling, on the amount of property acquisition, exploration and development costs that can be capitalized. The ceiling under this test represents (a) the present value of estimated future net cash flows, excluding future cash outflows associated with settling asset retirement obligations that have been accrued on the balance sheet, using a discount factor of 10%, which is computed by applying prices of oil and gas (as adjusted for hedging) to estimated future production of proved oil and gas reserves as of the date of the latest balance sheet, less estimated future expenditures, plus (b) the cost of unevaluated properties not being depleted, less (c) income tax effects related to the differences between the book and tax basis of the properties. The natural gas and oil prices used to calculate the full cost ceiling are based on an unweighted arithmetic average of the first day of the month oil and gas prices for each month within the twelve-month period prior to the end of the reporting period. If capitalized costs, net of accumulated depreciation, depletion and amortization and related deferred income taxes, exceed the ceiling at the end of any quarter, a permanent impairment is required to be charged to earnings in that quarter.  At December 31, 2014, the ceiling exceeded the book value of the oil and gas properties by approximately $118.7 million.
Accumulated Other Comprehensive Income (Loss) 
Accumulated Other Comprehensive Income (Loss).  The components of Accumulated Other Comprehensive Income (Loss) and changes for the three months ended December 31, 2014 and 2013, net of related tax effect, are as follows (amounts in parentheses indicate debits) (in thousands): 
 
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
Three Months Ended December 31, 2014
 
 
 
 
Balance at October 1, 2014
$
43,659

$
8,382

$
(56,020
)
$
(3,979
)
Other Comprehensive Gains and Losses Before Reclassifications
140,880

(252
)
—

140,628

Amounts Reclassified From Other Comprehensive Income (Loss)
(14,176
)
—

—

(14,176
)
Balance at December 31, 2014
$
170,363

$
8,130

$
(56,020
)
$
122,473

Three Months Ended December 31, 2013
 
 
 
 
Balance at October 1, 2013
$
30,722

$
6,337

$
(56,293
)
$
(19,234
)
Other Comprehensive Gains and Losses Before Reclassifications
1,507

1,573

—

3,080

Amounts Reclassified From Other Comprehensive Income (Loss)
(5,884
)
—

—

(5,884
)
Balance at December 31, 2013
$
26,345

$
7,910

$
(56,293
)
$
(22,038
)
 
 
 
 
 

Reclassifications Out Of Accumulated Other Comprehensive Income (Loss) 
Reclassifications Out of Accumulated Other Comprehensive Income (Loss).  The details about the reclassification adjustments out of accumulated other comprehensive income (loss) for the three months ended December 31, 2014 and 2013 are as follows (amounts in parentheses indicate debits to the income statement) (in thousands):
Details About Accumulated Other Comprehensive Income (Loss) Components
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss)
Affected Line Item in the Statement Where Net Income is Presented
 
Three Months Ended 
 December 31,
 
 
2014
2013
 
Gains (Losses) on Derivative Financial Instrument Cash Flow Hedges:
 
 
 
     Commodity Contracts

$20,036


$9,787

Operating Revenues
     Commodity Contracts
4,229

396

Purchased Gas
 
24,265

10,183

Total Before Income Tax
 
(10,089
)
(4,299
)
Income Tax Expense
 

$14,176


$5,884

Net of Tax

Other Current Assets 

Other Current Assets.  The components of the Company’s Other Current Assets are as follows (in thousands):
                            
At December 31, 2014
 
At September 30, 2014
 
 
 
 
Prepayments
$
15,043

 
$
10,079

Prepaid Property and Other Taxes
15,881

 
13,743

Federal Income Taxes Receivable
—

 
8,211

Fair Values of Firm Commitments
16,006

 
—

Regulatory Assets
21,123

 
22,719

 
$
68,053

 
$
54,752

Other Accruals And Current Liabilities 
Other Accruals and Current Liabilities.  The components of the Company’s Other Accruals and Current Liabilities are as follows (in thousands):
                            
At December 31, 2014
 
At September 30, 2014
 
 
 
 
Accrued Capital Expenditures
$
75,613

 
$
80,348

Regulatory Liabilities
17,027

 
18,072

Reserve for Gas Replacement
4,028

 
—

Federal Income Taxes Payable
1,697

 
—

State Income Taxes Payable
7,608

 
5,798

Other
31,312

 
32,454

 
$
137,285

 
$
136,672

Earnings Per Common Share 
Earnings Per Common Share.  Basic earnings per common share is computed by dividing income available for common stock by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.  For purposes of determining earnings per common share, the potentially dilutive securities the Company has outstanding are stock options, SARs, restricted stock units and performance shares.  The diluted weighted average shares outstanding shown on the Consolidated Statements of Income reflects the potential dilution as a result of these securities as determined using the Treasury Stock Method.  Stock options, SARs, restricted stock units and performance shares that are antidilutive are excluded from the calculation of diluted earnings per common share.  There were 2,461 and 272 securities excluded as being antidilutive for the quarters ended December 31, 2014 and December 31, 2013, respectively.
 
Stock-Based Compensation 
Stock-Based Compensation.  The Company granted 107,044 performance shares during the quarter ended December 31, 2014. The weighted average fair value of such performance shares was $65.26 per share for the quarter ended December 31, 2014. Performance shares are an award constituting units denominated in common stock of the Company, the number of which may be adjusted over a performance cycle based upon the extent to which performance goals have been satisfied.  Earned performance shares may be distributed in the form of shares of common stock of the Company, an equivalent value in cash or a combination of cash and shares of common stock of the Company, as determined by the Company. The performance shares do not entitle the participant to receive dividends during the vesting period.
 
Half of the performance shares granted during the quarter ended December 31, 2014 must meet a performance goal related to relative return on capital over the performance cycle of October 1, 2014 to September 30, 2017.  The performance goal over the performance cycle is the Company’s total return on capital relative to the total return on capital of other companies in a group selected by the Compensation Committee (“Report Group”).  Total return on capital for a given company means the average of the Report Group companies’ returns on capital for each twelve month period corresponding to each of the Company’s fiscal years during the performance cycle, based on data reported for the Report Group companies in the Bloomberg database.  The number of these performance shares that will vest and be paid will depend upon the Company’s performance relative to the Report Group and not upon the absolute level of return achieved by the Company.  The fair value of these performance shares is calculated by multiplying the expected number of shares that will be issued by the average market price of Company common stock on the date of grant reduced by the present value of forgone dividends over the vesting term of the award.  The fair value is recorded as compensation expense over the vesting term of the award.  The other half of the performance shares granted during the quarter ended December 31, 2014 must meet a performance goal related to relative total shareholder return over the performance cycle of October 1, 2014 to September 30, 2017.  The performance goal over the performance cycle is the Company’s three-year total shareholder return relative to the three-year total shareholder return of the other companies in the Report Group.  Three-year shareholder return for a given company will be based on the data reported for that company (with the starting and ending stock prices over the performance cycle calculated as the average closing stock price for the prior calendar month and with dividends reinvested in that company’s securities at each ex-dividend date) in the Bloomberg database.  The number of these total shareholder return performance shares ("TSR performance shares") that will vest and be paid will depend upon the Company’s performance relative to the Report Group and not upon the absolute level of return achieved by the Company.  The fair value price at the date of grant for the TSR performance shares is determined using a Monte Carlo simulation technique, which includes a reduction in value for the present value of forgone dividends over the vesting term of the award.  This price is multiplied by the number of TSR performance shares awarded, the result of which is recorded as compensation expense over the vesting term of the award.
 
The Company granted 88,899 non-performance based restricted stock units during the quarter ended December 31, 2014.  The weighted average fair value of such non-performance based restricted stock units was $64.04 per share for the quarter ended December 31, 2014. Restricted stock units represent the right to receive shares of common stock of the Company (or the equivalent value in cash or a combination of cash and shares of common stock of the Company, as determined by the Company) at the end of a specified time period. These non-performance based restricted stock units do not entitle the participant to receive dividends during the vesting period. The accounting for non-performance based restricted stock units is the same as the accounting for restricted share awards, except that the fair value at the date of grant of the restricted stock units must be reduced by the present value of forgone dividends over the vesting term of the award.
 
No stock options, SARs or restricted share awards were granted by the Company during the quarter ended December 31, 2014.
New Authoritative Accounting And Financial Reporting Guidance 
New Authoritative Accounting and Financial Reporting Guidance. In May 2014, the FASB issued authoritative guidance regarding revenue recognition. The authoritative guidance provides a single, comprehensive revenue recognition model for all contracts with customers to improve comparability. The revenue standard contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. This authoritative guidance will be effective as of the Company's first quarter of fiscal 2018 and early adoption is not permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements and disclosures.
In June 2014, the FASB issued authoritative guidance regarding accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the employee has completed the requisite service period. This authoritative guidance requires that such performance targets that affect vesting be treated as performance conditions, meaning that the performance target should not be factored in the calculation of the award at the grant date. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved. This authoritative guidance will be effective as of the Company's first quarter of fiscal 2017, with early adoption permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements.
Summary Of Significant Accounting Policies (Tables)
Components Of Accumulated Other Comprehensive Income (Loss) 
The components of Accumulated Other Comprehensive Income (Loss) and changes for the three months ended December 31, 2014 and 2013, net of related tax effect, are as follows (amounts in parentheses indicate debits) (in thousands): 
 
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
Three Months Ended December 31, 2014
 
 
 
 
Balance at October 1, 2014
$
43,659

$
8,382

$
(56,020
)
$
(3,979
)
Other Comprehensive Gains and Losses Before Reclassifications
140,880

(252
)
—

140,628

Amounts Reclassified From Other Comprehensive Income (Loss)
(14,176
)
—

—

(14,176
)
Balance at December 31, 2014
$
170,363

$
8,130

$
(56,020
)
$
122,473

Three Months Ended December 31, 2013
 
 
 
 
Balance at October 1, 2013
$
30,722

$
6,337

$
(56,293
)
$
(19,234
)
Other Comprehensive Gains and Losses Before Reclassifications
1,507

1,573

—

3,080

Amounts Reclassified From Other Comprehensive Income (Loss)
(5,884
)
—

—

(5,884
)
Balance at December 31, 2013
$
26,345

$
7,910

$
(56,293
)
$
(22,038
)
 
 
 
 
 

Schedule Of Reclassifications Out Of Accumulated Other Comprehensive Income (Loss) 
The details about the reclassification adjustments out of accumulated other comprehensive income (loss) for the three months ended December 31, 2014 and 2013 are as follows (amounts in parentheses indicate debits to the income statement) (in thousands):
Details About Accumulated Other Comprehensive Income (Loss) Components
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss)
Affected Line Item in the Statement Where Net Income is Presented
 
Three Months Ended 
 December 31,
 
 
2014
2013
 
Gains (Losses) on Derivative Financial Instrument Cash Flow Hedges:
 
 
 
     Commodity Contracts

$20,036


$9,787

Operating Revenues
     Commodity Contracts
4,229

396

Purchased Gas
 
24,265

10,183

Total Before Income Tax
 
(10,089
)
(4,299
)
Income Tax Expense
 

$14,176


$5,884

Net of Tax

Schedule Of Other Current Assets 
The components of the Company’s Other Current Assets are as follows (in thousands):
                            
At December 31, 2014
 
At September 30, 2014
 
 
 
 
Prepayments
$
15,043

 
$
10,079

Prepaid Property and Other Taxes
15,881

 
13,743

Federal Income Taxes Receivable
—

 
8,211

Fair Values of Firm Commitments
16,006

 
—

Regulatory Assets
21,123

 
22,719

 
$
68,053

 
$
54,752

Schedule Of Other Accruals And Current Liabilities 
The components of the Company’s Other Accruals and Current Liabilities are as follows (in thousands):
                            
At December 31, 2014
 
At September 30, 2014
 
 
 
 
Accrued Capital Expenditures
$
75,613

 
$
80,348

Regulatory Liabilities
17,027

 
18,072

Reserve for Gas Replacement
4,028

 
—

Federal Income Taxes Payable
1,697

 
—

State Income Taxes Payable
7,608

 
5,798

Other
31,312

 
32,454

 
$
137,285

 
$
136,672

Fair Value Measurements (Tables)
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] 
The following table sets forth, by level within the fair value hierarchy, the Company's financial assets and liabilities (as applicable) that were accounted for at fair value on a recurring basis as of December 31, 2014 and September 30, 2014.  Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The fair value presentation for over the counter swaps combines gas and oil swaps because a significant number of the counterparties enter into both gas and oil swap agreements with the Company.  

Recurring Fair Value Measures
At fair value as of December 31, 2014
(Thousands of Dollars)   
Level 1
 
Level 2
 
Level 3
 
Netting Adjustments(1)
 
Total(1)
Assets:
 

 
 

 
 

 
 

 
 

Cash Equivalents – Money Market Mutual Funds
$
20,540

 
$
—

 
$
—

 
$
—

 
$
20,540

Derivative Financial Instruments:
 

 
 

 
 

 
 

 
 

Commodity Futures Contracts – Gas
6,504

 
—

 
—

 
(6,504
)
 
—

Over the Counter Swaps – Gas and Oil
—

 
288,571

 
5,337

 
(594
)
 
293,314

Other Investments:
 

 
 

 
 

 
 

 
 

Balanced Equity Mutual Fund
36,150

 
—

 
—

 
—

 
36,150

Common Stock – Financial Services Industry
6,574

 
—

 
—

 
—

 
6,574

Other Common Stock
476

 
—

 
—

 
—

 
476

Hedging Collateral Deposits
13,468

 
—

 
—

 
—

 
13,468

Total                                           
$
83,712

 
$
288,571

 
$
5,337

 
$
(7,098
)
 
$
370,522

 
 
 
 
 
 
 
 
 
 
Liabilities:
 

 
 

 
 

 
 

 
 

Derivative Financial Instruments:
 

 
 

 
 

 
 

 
 

Commodity Futures Contracts – Gas
$
16,812

 
$
—

 
$
—

 
$
(6,504
)
 
$
10,308

Over the Counter Swaps – Gas and Oil
—

 
1,347

 
—

 
(594
)
 
753

Total
$
16,812

 
$
1,347

 
$
—

 
$
(7,098
)
 
$
11,061

 
 
 
 
 
 
 
 
 
 
Total Net Assets/(Liabilities)
$
66,900

 
$
287,224

 
$
5,337

 
$
—

 
$
359,461

 
Recurring Fair Value Measures
At fair value as of September 30, 2014
(Thousands of Dollars)   
Level 1
 
Level 2
 
Level 3
 
Netting Adjustments(1)
 
Total(1)
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


(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.
Fair Value Measurements Using Unobservable Inputs (Level 3) 
The tables listed below provide reconciliations of the beginning and ending net balances for assets and liabilities measured at fair value and classified as Level 3 for the quarters ended December 31, 2014 and 2013, respectively. For the quarters ended December 31, 2014 and December 31, 2013, no transfers in or out of Level 1 or Level 2 occurred.  There were no purchases or sales of derivative financial instruments during the periods presented in the tables below.  All settlements of the derivative financial instruments are reflected in the Gains/Losses Realized and Included in Earnings column of the tables below (amounts in parentheses indicate credits in the derivative asset/liability accounts). 
 
Fair Value Measurements Using Unobservable Inputs (Level 3)
(Thousands of Dollars)   
 
Total Gains/Losses 
 
 
 
October 1, 2014
Gains/Losses Realized and Included in Earnings
Gains/Losses Unrealized and Included in Other Comprehensive Income (Loss)
Transfer In/Out of Level 3
December 31, 2014
Derivative Financial Instruments(2)
$
1,368

$
(3,855
)
(1) 
$
7,824

$
—

$
5,337

 
(1) 
Amounts are reported in Operating Revenues in the Consolidated Statement of Income for the three months ended December 31, 2014. 
(2) 
Derivative Financial Instruments are shown on a net basis.
 
 
 
 
 
 
 

 
Fair Value Measurements Using Unobservable Inputs (Level 3)
(Thousands of Dollars)   
 
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
December 31, 2013
Derivative Financial Instruments(2)
$
(5,190
)
$
281

(1) 
$
3,067

$
—

$
(1,842
)


(1) 
Amounts are reported in Operating Revenues in the Consolidated Statement of Income for the three months ended December 31, 2013. 
(2) 
Derivative Financial Instruments are shown on a net basis.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Instruments (Tables)
Long-Term Debt 
Based on these criteria, the fair market value of long-term debt, including current portion, was as follows (in thousands): 
 
December 31, 2014
 
September 30, 2014
 
Carrying Amount
 
Fair Value
 
Carrying Amount
 
Fair Value
Long-Term Debt
$
1,649,000

 
$
1,751,498

 
$
1,649,000

 
$
1,775,715

Schedule Of Derivative Financial Instruments Designated And Qualifying As Cash Flow Hedges On The Statement Of Financial Performance 
The Effect of Derivative Financial Instruments on the Statement of Financial Performance for the
Three Months Ended December 31, 2014 and 2013 (Thousands of Dollars)
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 Three Months Ended December 31,
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 Three Months Ended December 31,
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 Three Months Ended December 31,
 
2014
2013
 
2014
2013
 
2014
2013
Commodity Contracts
$
240,023

$
5,118

Operating Revenue
$
20,036

$
9,787

Operating Revenue
$
1,460

$
1,434

Commodity Contracts
$
3,806

$
(2,340
)
Purchased Gas
$
4,229

$
396

Not Applicable
$
—

$
—

Total
$
243,829

$
2,778

 
$
24,265

$
10,183

 
$
1,460

$
1,434

 
 
 
 
 
 
 
 
 

Schedule Of Derivatives And Hedged Items In Fair Value Hedging Relationships 
For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative as well as the offsetting gain or loss on the hedged item attributable to the hedged risk completely offset each other in current earnings, as shown below.

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 Three Months Ended December 31, 2014 (In Thousands)
Amount of Gain or (Loss) on the Hedged Item Recognized in the Consolidated Statement of Income for the Three Months Ended December 31, 2014 (In Thousands)
Commodity Contracts
Operating Revenues
$
(13,338
)
$
13,338

Commodity Contracts
Purchased Gas
$
197

$
(197
)
 
 
$
(13,141
)
$
13,141

Income Taxes (Tables)
Components Of Federal And State Income Taxes Included In The Consolidated Statements Of Income 
The components of federal and state income taxes included in the Consolidated Statements of Income are as follows (in thousands): 
                                                         
Three Months Ended 
 December 31,
                                                         
2014
 
2013
Current Income Taxes 
 

 
 

Federal                                              
$
16,528

 
$
19,707

State                                                  
5,425

 
5,625

 
 
 
 
Deferred Income Taxes                                
 

 
 

Federal                                               
26,193

 
23,206

State                                                    
7,014

 
6,887

 
55,160

 
55,425

Deferred Investment Tax Credit                            
(104
)
 
(109
)
 
 
 
 
Total Income Taxes                                      
$
55,056

 
$
55,316

Presented as Follows:
 

 
 

Other Income
(104
)
 
(109
)
Income Tax Expense
55,160

 
55,425

 
 
 
 
Total Income Taxes
$
55,056

 
$
55,316

Schedule Of Income Tax Reconciliation By Applying Federal Income Tax Rate 
Total income taxes as reported differ from the amounts that were computed by applying the federal income tax rate to income before income taxes.  The following is a reconciliation of this difference (in thousands): 
 
Three Months Ended 
 December 31,
 
2014
 
2013
U.S. Income Before Income Taxes
$
139,796

 
$
137,568

 
 

 
 

Income Tax Expense, Computed at U.S. Federal Statutory Rate of 35%
$
48,929

 
$
48,149

 
 
 
 
Increase (Reduction) in Taxes Resulting from:
 

 
 

State Income Taxes
8,085

 
8,133

Miscellaneous
(1,958
)
 
(966
)
 
 
 
 
Total Income Taxes
$
55,056

 
$
55,316

Business Segment Information (Tables)
Financial Segment Information By Segment
Quarter Ended December 31, 2014 (Thousands)
 
 
 
 
 
 
 
Exploration and Production
Pipeline and Storage
Gathering
Utility
Energy Marketing
Total Reportable Segments
All Other
Corporate and Intersegment Eliminations
Total Consolidated
Revenue from External Customers
$204,665
$51,745
$146
$210,073
$56,166
$522,795
$884
$230
$523,909

 

 
 





Intersegment Revenues
$—
$21,461
$24,428
$4,534
$206
$50,629
$—
$(50,629)
$—

 

 
 





Segment Profit: Net Income (Loss)
$26,720
$20,778
$11,623
$22,594
$2,826
$84,541
$(6)
$205
$84,740

 


 





 
 
 
 
 
 
 
 
 
 
(Thousands)
Exploration and Production
Pipeline and Storage
Gathering
Utility
Energy Marketing
Total Reportable Segments
All Other
Corporate and Intersegment Eliminations
Total Consolidated
 
 
 
 
 
 
 
 
 
 
Segment Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At December 31, 2014
$3,346,609
$1,400,955
$352,464
$1,942,168
$103,985
$7,146,181
$76,960
$(78,047)
$7,145,094
 
 
 
 
 
 
 
 
 
 
At September 30, 2014
$3,100,514
$1,367,181
$326,662
$1,862,850
$76,238
$6,733,445
$86,460
$(80,308)
$6,739,597

Quarter Ended December 31, 2013 (Thousands)
 
 
 
 
 
 
 
Exploration and Production
Pipeline and Storage
Gathering
Utility
Energy Marketing
Total Reportable Segments
All Other
Corporate and Intersegment Eliminations
Total Consolidated




 





Revenue from External Customers
$193,046
$51,212
$235
$230,453
$73,159
$548,105
$1,700
$267
$550,072

 

 
 





Intersegment Revenues
$—
$20,739
$14,350
$4,706
$255
$40,050
$—
$(40,050)
$—

 
 
 
 
 
 
 
 
 
Segment Profit: Net Income (Loss)
$31,097
$19,138
$6,147
$24,215
$1,604
$82,201
$675
$(624)
$82,252

 
 
 
 
 
 
 
 
 
 
Retirement Plan And Other Post-Retirement Benefits (Tables)
Components of Net Periodic Benefit Cost
Components of Net Periodic Benefit Cost (in thousands):
 
 
Retirement Plan
 
Other Post-Retirement Benefits
Three Months Ended December 31,
2014
2013
 
2014
2013





 




Service Cost
$
3,012

$
2,997

 
$
673

$
735

Interest Cost
10,304

10,893

 
4,821

5,327

Expected Return on Plan Assets
(14,904
)
(14,993
)
 
(8,522
)
(9,356
)
Amortization of Prior Service Cost (Credit)
46

52

 
(478
)
(534
)
Amortization of Losses
9,032

9,002

 
1,037

661

Net Amortization and Deferral for Regulatory Purposes (Including Volumetric Adjustments) (1)
1,292

1,578

 
4,920

6,060






 




Net Periodic Benefit Cost
$
8,782

$
9,529

 
$
2,451

$
2,893

 
 
 
 
 
 
(1) 
The Company’s policy is to record retirement plan and other post-retirement benefit costs in the Utility segment on a volumetric basis to reflect the fact that the Utility segment experiences higher throughput of natural gas in the winter months and lower throughput of natural gas in the summer months.
Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)
3 Months Ended 12 Months Ended 3 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Sep. 30, 2014
Dec. 31, 2014
Reserve For Gas Replacement [Member]
Sep. 30, 2014
Reserve For Gas Replacement [Member]
Dec. 31, 2014
Stock Options [Member]
Dec. 31, 2014
Restricted Shares [Member]
Dec. 31, 2014
Stock Appreciation Right [Member]
Dec. 31, 2014
Non-performance Based Restricted Stock Units [Member]
Dec. 31, 2014
Performance Shares [Member]
Sep. 30, 2015
Subsequent Event [Member]
Reserve For Gas Replacement [Member]
Summary Of Significant Accounting Policies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Gas stored underground - current
$ (25,555,000)
 
$ (39,422,000)
$ 4,028,000 
$ 0 
 
 
 
 
 
$ 0 
Capitalized costs of unproved properties excluded from amortization
162,200,000 
 
141,700,000 
 
 
 
 
 
 
 
 
Full cost ceiling test discount factor
10.00% 
 
 
 
 
 
 
 
 
 
 
Amount full cost ceiling exceeds book value of oil and gas properties
$ 118,700,000 
 
 
 
 
 
 
 
 
 
 
Antidilutive securities
2,461 
272 
 
 
 
 
 
 
 
 
 
Share based compensation other than options grants in period
 
 
 
 
 
 
0 
0 
88,899 
107,044 
 
Granted in fiscal year, weighted average grant date fair value
 
 
 
 
 
 
 
 
$ 64.04 
$ 65.26 
 
Stock options granted
 
 
 
 
 
0 
 
 
 
 
 
Summary Of Significant Accounting Policies (Components Of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Accumulated Other Comprehensive Income [Roll Forward]
 
 
Balance at Beginning of Period
$ (3,979)
$ (19,234)
Other Comprehensive Gains and Losses Before Reclassification
140,628 
3,080 
Amounts Reclassified From Other Comprehensive Income (Loss)
(14,176)
(5,884)
Balance at End of Period
122,473 
(22,038)
Gains And Losses On Derivative Financial Instruments [Member]
 
 
Accumulated Other Comprehensive Income [Roll Forward]
 
 
Balance at Beginning of Period
43,659 
30,722 
Other Comprehensive Gains and Losses Before Reclassification
140,880 
1,507 
Amounts Reclassified From Other Comprehensive Income (Loss)
(14,176)
(5,884)
Balance at End of Period
170,363 
26,345 
Gains And Losses On Securities Available For Sale [Member]
 
 
Accumulated Other Comprehensive Income [Roll Forward]
 
 
Balance at Beginning of Period
8,382 
6,337 
Other Comprehensive Gains and Losses Before Reclassification
(252)
1,573 
Amounts Reclassified From Other Comprehensive Income (Loss)
0 
0 
Balance at End of Period
8,130 
7,910 
Funded Status Of The Pension And Other Post-Retirement Benefit Plans [Member]
 
 
Accumulated Other Comprehensive Income [Roll Forward]
 
 
Balance at Beginning of Period
(56,020)
(56,293)
Other Comprehensive Gains and Losses Before Reclassification
0 
0 
Amounts Reclassified From Other Comprehensive Income (Loss)
0 
0 
Balance at End of Period
$ (56,020)
$ (56,293)
Summary Of Significant Accounting Policies (Reclassification Out Of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
Operating Revenues
$ 523,909 
$ 550,072 
Purchased Gas
(127,091)
(167,605)
Income Before Income Taxes
139,900 
137,677 
Income Tax Expense
(55,160)
(55,425)
Net Income Available for Common Stock
84,740 
82,252 
Amount Of Gain Or (Loss) Reclassified From Accumulated Other Comprehensive Income (Loss) [Member]
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
Income Before Income Taxes
24,265 
10,183 
Income Tax Expense
(10,089)
(4,299)
Net Income Available for Common Stock
14,176 
5,884 
Amount Of Gain Or (Loss) Reclassified From Accumulated Other Comprehensive Income (Loss) [Member] |
Commodity Contracts [Member] |
Gains And Losses On Derivative Financial Instruments [Member]
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
Operating Revenues
20,036 
9,787 
Purchased Gas
$ 4,229 
$ 396 
Summary Of Significant Accounting Policies (Components Of Other Current Assets) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Sep. 30, 2014
Summary Of Significant Accounting Policies [Line Items]
 
 
Prepayments
$ 15,043 
$ 10,079 
Prepaid Property and Other Taxes
15,881 
13,743 
Fair Values of Firm Commitments
16,006 
0 
Regulatory Assets
21,123 
22,719 
Other Current Assets
68,053 
54,752 
Federal [Member]
 
 
Summary Of Significant Accounting Policies [Line Items]
 
 
Income Taxes Receivable
$ 0 
$ 8,211 
Summary Of Significant Accounting Policies (Schedule Of Other Accruals And Current Liabilities) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Sep. 30, 2014
Summary Of Significant Accounting Policies [Line Items]
 
 
Regulatory Liabilities
$ 17,027 
$ 18,072 
Reserve for Gas Replacement
(25,555)
(39,422)
Other
31,312 
32,454 
Other Accruals and Current Liabilities
137,285 
136,672 
Accrued Capital Expenditures [Member]
 
 
Summary Of Significant Accounting Policies [Line Items]
 
 
Other
75,613 
80,348 
Reserve For Gas Replacement [Member]
 
 
Summary Of Significant Accounting Policies [Line Items]
 
 
Reserve for Gas Replacement
4,028 
0 
Federal [Member]
 
 
Summary Of Significant Accounting Policies [Line Items]
 
 
Income Taxes Payable
1,697 
0 
State [Member]
 
 
Summary Of Significant Accounting Policies [Line Items]
 
 
Income Taxes Payable
$ 7,608 
$ 5,798 
Fair Value Measurements (Narrative) (Details) (USD $)
3 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Hedging collateral deposits
$ 13,468,000 1
$ 2,734,000 1
Assumed 12 month Midway Sunset oil comparison to NYMEX
96.20% 
 
Assumed 12 month minimum Midway Sunset oil comparison to NYMEX
88.30% 
 
Assumed 12 month maximum Midway Sunset oil comparison to NYMEX
100.60% 
 
Fair value measured on recurring basis, net
(359,461,000)1
(140,790,000)1
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Hedging collateral deposits
0 
0 
Fair value measured on recurring basis, net
(5,337,000)
(1,368,000)
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Hedging collateral deposits
13,468,000 
2,734,000 
Fair value measured on recurring basis, net
(66,900,000)
(68,994,000)
Fair Value, Inputs, Level 1 [Member] |
NYMEX Futures [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Hedging collateral deposits
13,500,000 
2,700,000 
Higher [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Midway Sunset oil comparison to NYMEX Sensitivity percentage points
10.00% 
 
Higher [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of crude oil price swap sensitivity
(800,000)
 
Lower [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Midway Sunset oil comparison to NYMEX Sensitivity percentage points
10.00% 
 
Lower [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of crude oil price swap sensitivity
$ 800,000 
 
Fair Value Measurements (Recurring Fair Value Measures Of Assets And Liabilities) (Details) (USD $)
Dec. 31, 2014
Sep. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Cash Equivalents - Money Market Mutual Funds
$ 20,540,000 1
$ 23,794,000 1
Hedging Collateral Deposits
13,468,000 1
2,734,000 1
Total Assets
370,522,000 1
141,549,000 1
Total Liabilities
11,061,000 1
759,000 1
Total Net Assets/(Liabilities)
359,461,000 1
140,790,000 1
Commodity Futures Contracts - Gas [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Derivative Financial Instruments
0 1
738,000 1
Derivative Financial Instruments
10,308,000 1
687,000 1
Over The Counter Swaps - Gas And Oil [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Derivative Financial Instruments
293,314,000 1
71,868,000 1
Derivative Financial Instruments
753,000 1
72,000 1
Balanced Equity Mutual Fund [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Other Investments
36,150,000 1
35,331,000 1
Common Stock - Financial Services Industry [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Other Investments
6,574,000 1
6,629,000 1
Other Common Stock [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Other Investments
476,000 1
455,000 1
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Cash Equivalents - Money Market Mutual Funds
20,540,000 
23,794,000 
Hedging Collateral Deposits
13,468,000 
2,734,000 
Total Assets
83,712,000 
71,668,000 
Total Liabilities
16,812,000 
2,674,000 
Total Net Assets/(Liabilities)
66,900,000 
68,994,000 
Fair Value, Inputs, Level 1 [Member] |
Commodity Futures Contracts - Gas [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Derivative Financial Instruments
6,504,000 
2,725,000 
Derivative Financial Instruments
16,812,000 
2,674,000 
Fair Value, Inputs, Level 1 [Member] |
Over The Counter Swaps - Gas And Oil [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Derivative Financial Instruments
0 
0 
Derivative Financial Instruments
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Balanced Equity Mutual Fund [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Other Investments
36,150,000 
35,331,000 
Fair Value, Inputs, Level 1 [Member] |
Common Stock - Financial Services Industry [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Other Investments
6,574,000 
6,629,000 
Fair Value, Inputs, Level 1 [Member] |
Other Common Stock [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Other Investments
476,000 
455,000 
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Cash Equivalents - Money Market Mutual Funds
0 
0 
Hedging Collateral Deposits
0 
0 
Total Assets
288,571,000 
75,951,000 
Total Liabilities
1,347,000 
5,523,000 
Total Net Assets/(Liabilities)
287,224,000 
70,428,000 
Fair Value, Inputs, Level 2 [Member] |
Commodity Futures Contracts - Gas [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Derivative Financial Instruments
0 
0 
Derivative Financial Instruments
0 
0 
Fair Value, Inputs, Level 2 [Member] |
Over The Counter Swaps - Gas And Oil [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Derivative Financial Instruments
288,571,000 
75,951,000 
Derivative Financial Instruments
1,347,000 
5,523,000 
Fair Value, Inputs, Level 2 [Member] |
Balanced Equity Mutual Fund [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Other Investments
0 
0 
Fair Value, Inputs, Level 2 [Member] |
Common Stock - Financial Services Industry [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Other Investments
0 
0 
Fair Value, Inputs, Level 2 [Member] |
Other Common Stock [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Other Investments
0 
0 
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Cash Equivalents - Money Market Mutual Funds
0 
0 
Hedging Collateral Deposits
0 
0 
Total Assets
5,337,000 
1,368,000 
Total Liabilities
0 
0 
Total Net Assets/(Liabilities)
5,337,000 
1,368,000 
Fair Value, Inputs, Level 3 [Member] |
Commodity Futures Contracts - Gas [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Derivative Financial Instruments
0 
0 
Derivative Financial Instruments
0 
0 
Fair Value, Inputs, Level 3 [Member] |
Over The Counter Swaps - Gas And Oil [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Derivative Financial Instruments
5,337,000 
1,368,000 
Derivative Financial Instruments
0 
0 
Fair Value, Inputs, Level 3 [Member] |
Balanced Equity Mutual Fund [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Other Investments
0 
0 
Fair Value, Inputs, Level 3 [Member] |
Common Stock - Financial Services Industry [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Other Investments
0 
0 
Fair Value, Inputs, Level 3 [Member] |
Other Common Stock [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Other Investments
0 
0 
Netting Adjustments [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Cash Equivalents - Money Market Mutual Funds
0 1
0 1
Hedging Collateral Deposits
0 1
0 1
Total Assets
(7,098,000)1
(7,438,000)1
Total Liabilities
(7,098,000)1
(7,438,000)1
Total Net Assets/(Liabilities)
0 1
0 1
Netting Adjustments [Member] |
Commodity Futures Contracts - Gas [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Derivative Financial Instruments
(6,504,000)1
(1,987,000)1
Derivative Financial Instruments
(6,504,000)1
(1,987,000)1
Netting Adjustments [Member] |
Over The Counter Swaps - Gas And Oil [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Derivative Financial Instruments
(594,000)1
(5,451,000)1
Derivative Financial Instruments
(594,000)1
(5,451,000)1
Netting Adjustments [Member] |
Balanced Equity Mutual Fund [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Other Investments
0 1
0 1
Netting Adjustments [Member] |
Common Stock - Financial Services Industry [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Other Investments
0 1
0 1
Netting Adjustments [Member] |
Other Common Stock [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Other Investments
$ 0 1
$ 0 1
Fair Value Measurements (Fair Value Measurements Using Unobservable Inputs (Level 3)) (Details) (Derivative Financial Instruments [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Derivative Financial Instruments [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Roll Forward]
 
 
Beginning Balance
$ 1,368 1
$ (5,190)1
Total Gains/Losses, Realized and Included in Earnings
(3,855)1 2
281 1 3
Total Gains/Losses Unrealized and Included in Other Comprehensive Income (Loss)
7,824 1
3,067 1
Transfer In/Out of Level 3
0 1
0 1
Ending Balance
$ 5,337 1
$ (1,842)1
Financial Instruments (Narrative) (Details) (USD $)
3 Months Ended
Dec. 31, 2014
counterparty
Sep. 30, 2014
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Cash surrender value of life insurance
$ 44,300,000 
$ 44,400,000 
Net hedging gains/losses in accumulated other comprehensive income (loss)
295,700,000 
 
After tax net hedging gains (losses) in accumulated other comprehensive income (loss)
170,400,000 
 
Pre-Tax Net Hedging Gain (Losses) Reclassified Within Twelve Months
173,700,000 
 
After Tax Net Hedging Gains (Losses) Reclassified Within Twelve Months
100,100,000 
 
Number of counterparties in which the company holds over-the-counter swap positions
16 
 
Number of counterparties in net gain position
14 
 
Collateral Received from Counterparties by the Company
0 
 
Hedging collateral deposits
13,468,000 1
2,734,000 1
Fair market value of derivative asset with a credit-risk related contingency
218,300,000 
 
Fair market value of derivative liability with a credit-risk related contingency
300,000 
 
Over-The-Counter Swap Position
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Credit risk exposure per counterparty
20,900,000 
 
Maximum credit risk exposure per counterparty
54,600,000 
 
Hedging collateral deposits
0 
 
Fixed Price Purchase Commitments MMCf [Member] |
Energy Marketing [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Nonmonetary notional amount of price risk fair value hedge derivatives, natural gas
200 
 
Fair Value Hedges MMCf [Member] |
Energy Marketing [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Nonmonetary notional amount of price risk fair value hedge derivatives, natural gas
17,500 
 
Fixed Price Sales Commitments MMCf [Member] |
Energy Marketing [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Nonmonetary notional amount of price risk fair value hedge derivatives, natural gas
17,200 
 
Fixed Price Commitments Related To Withdrawal Of Storage Gas Mmcf [Member] |
Energy Marketing [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Nonmonetary notional amount of price risk fair value hedge derivatives, natural gas
100 
 
Natural Gas MMCf [Member] |
Cash Flow Hedges Short Position [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Nonmonetary notional amount of price risk cash flow hedge derivatives, natural gas
184,000 
 
Natural Gas MMCf [Member] |
Cash Flow Hedges Long Position [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Nonmonetary notional amount of price risk cash flow hedge derivatives, natural gas
4,000 
 
Crude Oil Bbls [Member] |
Cash Flow Hedges Short Position [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Nonmonetary notional amount of price risk cash flow hedge derivatives, crude oil
2,898,000 
 
Exchange Traded Futures Contracts [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Hedging collateral deposits
13,500,000.0 
 
Equity Mutual Fund [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Fair value
36,100,000 
35,300,000 
Gross unrealized gain
8,000,000 
8,400,000 
Insurance Company Stock [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Fair value
6,600,000 
6,600,000 
Gross unrealized gain
$ 4,500,000 
$ 4,500,000 
Credit Risk Related Contingency Feature [Member] |
Over-The-Counter Swap Position
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Number of counterparties with a common credit-risk related contingency
12 
 
Financial Instruments (Long-Term Debt) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Sep. 30, 2014
Financial Instruments, Owned, at Fair Value [Abstract]
 
 
Carrying Amount
$ 1,649,000 
$ 1,649,000 
Fair Value
$ 1,751,498 
$ 1,775,715 
Financial Instruments (Schedule Of Derivative Financial Instruments Designated And Qualifying As Cash Flow Hedges On The Statement Of Financial Performance) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of Derivative Gain or (Loss) Recognized in Other Comprehensive Income (Loss) on the Consolidated Statement of Comprehensive Income (Loss) (Effective Portion)
$ 243,829 
$ 2,778 
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)
24,265 
10,183 
Derivative Gain or (Loss) Recognized in the Consolidated Statement of Income (Ineffective Portion and Amount Excluded from Effectiveness Testing)
1,460 
1,434 
Operating Revenues [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of Derivative Gain or (Loss) Recognized in Other Comprehensive Income (Loss) on the Consolidated Statement of Comprehensive Income (Loss) (Effective Portion)
240,023 
5,118 
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)
20,036 
9,787 
Derivative Gain or (Loss) Recognized in the Consolidated Statement of Income (Ineffective Portion and Amount Excluded from Effectiveness Testing)
1,460 
1,434 
Purchased Gas [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of Derivative Gain or (Loss) Recognized in Other Comprehensive Income (Loss) on the Consolidated Statement of Comprehensive Income (Loss) (Effective Portion)
3,806 
(2,340)
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)
4,229 
396 
Derivative Gain or (Loss) Recognized in the Consolidated Statement of Income (Ineffective Portion and Amount Excluded from Effectiveness Testing)
$ 0 
$ 0 
Financial Instruments (Schedule Of Derivatives And Hedged Items In Fair Value Hedging Relationships) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Dec. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
 
Amount of Gain or (Loss) on the Derivative Recognized in the Consolidated Statement of Income
$ (13,141)
Amount of Gain or (Loss) on the Hedged Item Recognized in the Consolidated Statement of Income
13,141 
Operating Revenues [Member]
 
Derivative Instruments, Gain (Loss) [Line Items]
 
Amount of Gain or (Loss) on the Derivative Recognized in the Consolidated Statement of Income
(13,338)
Amount of Gain or (Loss) on the Hedged Item Recognized in the Consolidated Statement of Income
13,338 
Purchased Gas [Member]
 
Derivative Instruments, Gain (Loss) [Line Items]
 
Amount of Gain or (Loss) on the Derivative Recognized in the Consolidated Statement of Income
197 
Amount of Gain or (Loss) on the Hedged Item Recognized in the Consolidated Statement of Income
$ (197)
Income Taxes (Components Of Federal And State Income Taxes Included In The Consolidated Statements Of Income) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Current Income Taxes [Abstract]
 
 
Federal
$ 16,528 
$ 19,707 
State
5,425 
5,625 
Deferred Income Taxes [Abstract]
 
 
Federal
26,193 
23,206 
State
7,014 
6,887 
Income Tax Expense
55,160 
55,425 
Deferred Investment Tax Credit
(104)
(109)
Total Income Taxes
55,056 
55,316 
Presented as Follows [Abstract]
 
 
Other Income
(104)
(109)
Income Tax Expense
$ 55,160 
$ 55,425 
Income Taxes (Schedule Of Income Tax Reconciliation By Applying Federal Income Tax Rate) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Income Tax Disclosure [Abstract]
 
 
U.S. Income Before Income Taxes
$ 139,796 
$ 137,568 
Income Tax Expense, Computed at U.S. Federal Statutory Rate of 35%
48,929 
48,149 
Increase (Reduction) in Taxes Resulting from State Income Taxes
8,085 
8,133 
Increase (Reduction) in Taxes Resulting From Miscellaneous
(1,958)
(966)
Total Income Taxes
$ 55,056 
$ 55,316 
Federal Statutory Rate
35.00% 
35.00% 
Capitalization (Details)
3 Months Ended
Dec. 31, 2014
Debt Instrument [Line Items]
 
Common stock shares issued due to stock option exercises
36,000 
Issue shares of common stock for the Direct Stock Purchase and Dividend Reinvestment Plan
25,426 
Issue shares of common stock for the 401(k) plans
20,523 
Shares tendered
21,024 
Restricted Stock Units [Member]
 
Debt Instrument [Line Items]
 
Common stock issued
42,490 
Board Of Directors [Member]
 
Debt Instrument [Line Items]
 
Common stock issued
3,850 
Commitments And Contingencies (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2014
Site Contingency [Line Items]
 
Estimated minimum liability for environmental remediation
$ 14.2 
Rate recovery period
13 years 
Former Manufactured Gas Plant Site [Member]
 
Site Contingency [Line Items]
 
Estimated minimum liability for environmental remediation
$ 12.5 
Business Segment Information (Narrative) (Details)
3 Months Ended
Dec. 31, 2014
segment
Segment Reporting [Abstract]
 
Number of reportable segments
5 
Business Segment Information (Financial Segment Information By Segment) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Sep. 30, 2014
Segment Reporting Information [Line Items]
 
 
 
Segment Profit: Net Income (Loss)
$ 84,740 
$ 82,252 
 
Segment Assets
7,145,094 
 
6,739,597 
Revenue From External Customers [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenue
523,909 
550,072 
 
Intersegment Revenues [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenue
0 
0 
 
Exploration And Production [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Segment Profit: Net Income (Loss)
26,720 
31,097 
 
Segment Assets
3,346,609 
 
3,100,514 
Exploration And Production [Member] |
Revenue From External Customers [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenue
204,665 
193,046 
 
Exploration And Production [Member] |
Intersegment Revenues [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenue
0 
0 
 
Pipeline And Storage [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Segment Profit: Net Income (Loss)
20,778 
19,138 
 
Segment Assets
1,400,955 
 
1,367,181 
Pipeline And Storage [Member] |
Revenue From External Customers [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenue
51,745 
51,212 
 
Pipeline And Storage [Member] |
Intersegment Revenues [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenue
21,461 
20,739 
 
Gathering [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Segment Profit: Net Income (Loss)
11,623 
6,147 
 
Segment Assets
352,464 
 
326,662 
Gathering [Member] |
Revenue From External Customers [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenue
146 
235 
 
Gathering [Member] |
Intersegment Revenues [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenue
24,428 
14,350 
 
Utility [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Segment Profit: Net Income (Loss)
22,594 
24,215 
 
Segment Assets
1,942,168 
 
1,862,850 
Utility [Member] |
Revenue From External Customers [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenue
210,073 
230,453 
 
Utility [Member] |
Intersegment Revenues [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenue
4,534 
4,706 
 
Energy Marketing [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Segment Profit: Net Income (Loss)
2,826 
1,604 
 
Segment Assets
103,985 
 
76,238 
Energy Marketing [Member] |
Revenue From External Customers [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenue
56,166 
73,159 
 
Energy Marketing [Member] |
Intersegment Revenues [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenue
206 
255 
 
Total Reportable Segments [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Segment Profit: Net Income (Loss)
84,541 
82,201 
 
Segment Assets
7,146,181 
 
6,733,445 
Total Reportable Segments [Member] |
Revenue From External Customers [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenue
522,795 
548,105 
 
Total Reportable Segments [Member] |
Intersegment Revenues [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenue
50,629 
40,050 
 
All Other [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Segment Profit: Net Income (Loss)
(6)
675 
 
Segment Assets
76,960 
 
86,460 
All Other [Member] |
Revenue From External Customers [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenue
884 
1,700 
 
All Other [Member] |
Intersegment Revenues [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenue
0 
0 
 
Corporate And Intersegment Eliminations [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Segment Profit: Net Income (Loss)
205 
(624)
 
Segment Assets
(78,047)
 
(80,308)
Corporate And Intersegment Eliminations [Member] |
Revenue From External Customers [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenue
230 
267 
 
Corporate And Intersegment Eliminations [Member] |
Intersegment Revenues [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenue
$ (50,629)
$ (40,050)
 
Retirement Plan And Other Post-Retirement Benefits (Narrative) (Details) (USD $)
3 Months Ended
Dec. 31, 2014
Retirement Plan [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
Company's contributions
$ 16,100,000 
VEBA Trusts And 401(h) Accounts [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
Company's contributions
500,000 
Estimated future contributions in remainder of fiscal year
1,500,000.0 
Minimum [Member] |
Retirement Plan [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
Estimated future contributions in remainder of fiscal year
2,000,000 
Maximum [Member] |
Retirement Plan [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
Estimated future contributions in remainder of fiscal year
$ 6,000,000 
Retirement Plan And Other Post-Retirement Benefits (Components Of Net Periodic Benefit Cost) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Retirement Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Service Cost
$ 3,012 
$ 2,997 
Interest Cost
10,304 
10,893 
Expected Return on Plan Assets
(14,904)
(14,993)
Amortization of Prior Service Cost (Credit)
46 
52 
Amortization of Losses
9,032 
9,002 
Net Amortization and Deferral For Regulatory Purposes (Including Volumetric Adjustments)
1,292 1
1,578 1
Net Periodic Benefit Cost
8,782 
9,529 
Other Post-Retirement Benefit Plans, Defined Benefit [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Service Cost
673 
735 
Interest Cost
4,821 
5,327 
Expected Return on Plan Assets
(8,522)
(9,356)
Amortization of Prior Service Cost (Credit)
(478)
(534)
Amortization of Losses
1,037 
661 
Net Amortization and Deferral For Regulatory Purposes (Including Volumetric Adjustments)
4,920 1
6,060 1
Net Periodic Benefit Cost
$ 2,451 
$ 2,893 
Regulatory Matters (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Regulatory Matters [Line Items]
 
 
Rate proceeding refund provision pre tax
 
$ 7.5 
Allowed rate of return on equity
9.10% 
 
Authorized Increase in Distribution Corporation's pipeline relacement spending
$ 8.2 
 
Maximum [Member]
 
 
Regulatory Matters [Line Items]
 
 
Allowed rate of return on equity range
10.50% 
 
Minimum [Member]
 
 
Regulatory Matters [Line Items]
 
 
Allowed rate of return on equity range
9.50% 
 
9.5 Percent To 10.5 Percent Rate Of Return On Equity [Member] |
Shareholder Allocation [Member]
 
 
Regulatory Matters [Line Items]
 
 
Earnings sharing mechanism allocation of earnings
50.00% 
 
9.5 Percent To 10.5 Percent Rate Of Return On Equity [Member] |
Deferred For The Benefit Of Customers [Member]
 
 
Regulatory Matters [Line Items]
 
 
Earnings sharing mechanism allocation of earnings
50.00% 
 
Above 10.5 Percent Rate Of Return On Equity [Member] |
Shareholder Allocation [Member]
 
 
Regulatory Matters [Line Items]
 
 
Earnings sharing mechanism allocation of earnings
20.00% 
 
Above 10.5 Percent Rate Of Return On Equity [Member] |
Deferred For The Benefit Of Customers [Member]
 
 
Regulatory Matters [Line Items]
 
 
Earnings sharing mechanism allocation of earnings
80.00%